If you are looking for opportunities to invest in U.S.-listed stocks, you may want to consider the stocks of companies whose free cash flow has increased significantly in recent years. As a result, these companies should have the flexibility to continue supporting the development of projects and returning cash to shareholders.
The following three stocks meet the above criteria. Additionally, Wall Street sell-side analysts have issued positive recommendation ratings for these stocks, meaning their share prices are expected to rise in the coming months.
Monster Beverage Corp
The first company that investors may want to consider is Monster Beverage Corp. (MNST, Financial) a Corona, California-based developer and distributor of energy drinks and concentrates worldwide.
The company has seen its free cash flow per share increase by 20.70% per year over the last 10 years, by 23.60% per year over the last five years and by 16.40% over the last 12 months.
Analysts estimate the company will keep growing its earnings per share by 8.90% in 2021, by 12.80% in 2022 and by 12.49% per year over the next five years.
On Wall Street, as of February, the stock has four strong buys, 10 buys and four hold recommendation ratings. The average target price is $104.16 per share.
The share price ($80.35 as of Feb. 24) has fallen by 8.42% over the past year for a market capitalization of $42.52 billion and a 52-week range of $76.37 to $99.89.
Interactive Brokers Group Inc.
The second company to consider is Interactive Brokers Group Inc. (IBKR, Financial), a Greenwich, Connecticut-based automated electronic broker for global capital markets operators.
The company has seen its free cash flow per share increase by 11.90% per year over the last 10 years, by 56.60% per year over the last five years and by 129.50% over the last 12 months.
Analysts estimate that the company's earnings per share will increase by 7.70% in 2021, by 13.20% in 2022 and by 24.10% per year over the next five years.
On Wall Street, as of February, the stock has one buy, four holds and one sell recommendation rating. The average target price is $99 per share.
The share price ($66.78 on Feb. 24) is down 7.73% year over year, yielding a market cap of $6.56 billion. The 52-week range is $58.84 to $82.83.
American Homes 4 Rent
The third company that investors may want to consider is American Homes 4 Rent (AMH, Financial), an Agoura Hills, California-based rental company holding a portfolio of approximately 53,230 single-family home properties belonging to selected sub-real estate markets across 22 states.
The company has seen its free cash flow per share increase by 6% per year over the last five years and by 10.50% over the last 12 months.
Analysts expect the company's earnings per share will increase by 14.60% this year and by 6.40% next year. Over the next five years, it is expected to go up by 28.50% per year on average.
On Wall Street, as of February, the stock has five strong buys, four buys and six hold recommendation ratings. The average target price is $45.74 per share.
The share price ($37.78 as of Feb. 24) has climbed 21.32% over the past year, determining a market capitalization of $13.15 billion and a 52-week range of $28.63 to $44.07.
