3 Companies Growing Earnings Fast

Their five-year earnings growth rates are much higher than that of the S&P 500

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Jan 04, 2022
Summary
  • The S&P 500 saw its trailing 12-month real earnings per share increase by about 10% on average annually over the past five years.
  • FirstService, Hamilton Lane and Ultra Clean Holdings have beaten the S&P 500 in terms of higher earnings per share growth rates.
  • Wall Street is positive about these businesses.
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The S&P 500 saw the trailing 12-month real earnings per share of its member companies increase by a compound annual growth rate of 10.13% over the past five years. The index, which stood at 4,796.56 as of Monday, has climbed more than 110% over the past five years.

Thus, investors may want to consider FirstService Corp. (

FSV, Financial), Hamilton Lane Inc. (HLNE, Financial) and Ultra Clean Holdings Inc. (UCTT, Financial) since they have outperformed the benchmark index in terms of five-year annual earnings per share growth rates.

FirstService (

FSV, Financial)

Based in Toronto, the company provides essential property services to residential and commercial customers in North America.

The company saw its 12-month earnings per share increase by approximately 27% on average annually over the past five years.

Following a nearly 40% upside over the past year, shares closed at $193.28 apiece on Monday for a market capitalization of about $8.35 billion, a 52-week range of $133.03 to $202.78 and a price-earnings ratio of 66.64.

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T. Rowe Price Associates Inc. is the largest institutional shareholder of the stock with 12.44% of shares outstanding. The asset management firm is followed by Durable Capital Partners LP with an 7.85% stake and Manufacturers Life Insurance Co. with 5.16%.

On Wall Street, the stock has a median recommendation rating of hold with an average target price of $198.83 per share.

Hamilton Lane (

HLNE, Financial)

Based in Conshohocken, Pennsylvania, the investment firm specializes in direct and fund of fund investments in private equities in North America and internationally.

The company saw its 12-month earnings per share increase by approximately 25% on average every year over the past five years.

The stock market was very enthusiastic about the earnings improvement as the share price ($102.67 at close on Monday) gained more than 430% over the past five years, determining a market capitalization of $3.87 billion. The 52-week range is $74.11 to $116.

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Wellington Management Group LLP, Blackrock Inc. and Wasatch Advisors Inc. are amid the largest guru shareholders of the company with 9.72%, 8.31% and 8.20% of its shares outstanding.

On Wall Street, the stock has a median recommendation rating of hold with an average target price of $115.17 per share.

Ultra Clean Holdings (

UCTT, Financial)

Based in Hayward, California, the company designs and manufactures production tools, modules and subsystems for the semiconductor industry in the United States and internationally.

The company saw its 12-month earnings per share increase by an average of 23% annually over the past five years.

The market must have been very happy with the earnings growth, as the share price climbed more than 450% over the past five years to close at $58.47 on Monday for a market capitalization of $2.60 billion. The 52-week range is $33.85 to $65.33 and the price-earnings ratio is 25.91.

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Blackrock and the Vanguard Group are among the largest shareholders of the company with 18.68% and 8.55% of shares outstanding.

On Wall Street, the stock has a median recommendation rating of buy with an average target price of approximately $72.58 per share.

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