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4 Companies Growing Earnings Fast

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

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Feb 06, 2022
Summary
  • The S&P 500 saw its trailing 12-month real earnings per share increase by about 11.6% on average annually over the past five years.
  • Cavco Industries, Ingevity, Emergent BioSolutions and TechTarget have beaten the S&P 500 in terms of higher earnings per share growth rates.
  • Wall Street is optimistic 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 11.6% over the past five years. The index, which stood at a price of $4,500.53 per share as of Friday, has climbed more than 95% over the past five years.

Thus, investors may want to consider Cavco Industries Inc. (

CVCO, Financial), Ingevity Corp. (NGVT, Financial), Emergent BioSolutions Inc. (EBS, Financial) and TechTarget Inc. (TTGT, Financial) since they have outperformed the benchmark index in terms of five-year annual earnings per share growth rates.

Cavco Industries (

CVCO, Financial)

Based in Phoenix, the company is a designer, producer and retailer of manufactured residential buildings in the U.S.

The company saw its 12-month earnings per share increase by approximately 21.80% on average annually over the past five years.

Following a 170% upside over the past five years, shares closed at $290.72 apiece on Friday for a market capitalization of about $2.66 billion. The 52-week range is $196.46 to $327.24. The price-earnings ratio is 24.62.

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BlackRock Inc. is the largest institutional shareholder of the stock with 15.46% of shares outstanding. The asset management firm is followed by T Rowe Price and Associates with a 9.26% stake and Vanguard Group Inc. with 8.10%.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $353.67 per share.

Ingevity (

NGVT, Financial)

Based in North Charleston, South Carolina, the company manufactures and sells specialty chemicals and activated carbon materials in North America and internationally. These products are used in several industries, including automotive, food and beverages, chemicals, building, oil products downstream and health care.

The company saw its 12-month earnings per share increase by approximately 28.90% on average every year over the past five years.

Despite the earnings growth, the share price went up by just 13% over the past five years. The stock price was $63.18 per share at close on Friday for a market capitalization of $2.48 billion. The 52-week range is $62.60 to $89.55. The price-earnings ratio is 18.47.

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BlackRock Inc., Vanguard and Boston Partners are among the largest guru shareholders of the company with 11.03%, 9.88% and 3.70% of its shares outstanding.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $92.50 per share.

Emergent BioSolutions (

EBS, Financial)

Based in Gaithersburg, Maryland, this life sciences company focuses on products addressing public health threats, including vaccines against anthrax, cholera, typhoid and complications from a previous smallpox vaccination, as well as treatments for opioid overdose and medical devices to remove or neutralize chemical warfare agents. In addition, it offers products for the treatment and prophylaxis of inhalational anthrax and of botulinum disease. The company is also developing potential therapies for the treatment of Covid-19 and Influenza A infection in hospitalized patients. Lastly, it provides the pharmaceutical and biotechnology industries as well as government and non-government organizations with contract development and drug manufacturing services.

The company saw its 12-month earnings per share increase by an average of 12.20% annually over the past five years.

As a result of earnings growth, the stock price is up more than 54% over the past five years, closing at $45.30 per share on Friday for a market cap of $2.44 billion. The 52-week range is $29.88 to $127.20. The price-earnings ratio is 10.79.

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Blackrock, Vanguard Group and Neuberger Berman Group LLC are among the largest shareholders of the company with 15.01%, 10.07% and 6.15% of shares outstanding.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of approximately $61.29 per share.

TechTarget (

TTGT, Financial)

Based in Newton, Massachusetts, the company provides marketing and sales services to North American and overseas enterprise technology companies.

The company saw its 12-month earnings per share increase by an average of 40.90% annually over the past five years.

The market must have been very happy with the earnings growth, as the share price climbed more than 860% over the past five years to close at $84.69 on Friday for a market capitalization of $2.44 billion. The 52-week range is $63.76 to $111.44. The price-earnings ratio is 126.40.

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FMR LLC, BlackRock and the Vanguard Group are among the largest shareholders of the company with 14.58%, 13.55% and 6.39% of its shares outstanding.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of approximately $110.22 per share.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure
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