S&P 500 stocks have recorded a compound annual growth rate (CAGR) of 3.7% in real trailing 12-month total revenue per share over the past five years. The benchmark index for the U.S. stock market closed at $4,393.66 on Thursday, up nearly 87% over the past five years through April 21.
Thus, investors may want to consider the three stocks listed below, as they have outperformed the S&P 500 in terms of higher five-year revenue per share growth rates. A company's history of growing profits is no guarantee of its future, but historically, rising sales are a powerful catalyst for higher stock prices.
Nvidia Corp
The first stock that makes the cut is Nvidia Corp. (NVDA, Financial), a Santa Clara, California-based producer of graphics processing units and system on chip units for the consumer electronics, computer hardware, semiconductors and video games industries.
The company saw its revenue per share increase by 27.50% on average per year over the past five years.
The share price has risen 684.11% over the past five years to close at $201.83 on Thursday for a market capitalization of $587.88 billion and a 52-week range of $134.59 to $346.47.
Wall Street sell-side analysts issued a median recommendation rating of buy for this stock and have established an average target price of $331.43 per share.
Vanguard Group, BlackRock Inc. and FMR LLC are among the company's largest shareholders with 6.73%, 6.11% and 5.37% of shares outstanding, respectively.
Meta Platforms Inc.
The second company that qualifies is Meta Platforms Inc. (FB, Financial), formerly known as Facebook, a Menlo Park, California-based social media giant.
The company saw its revenue per share increase by 32.80% on average per year over the past five years.
The share price has risen 29.28% over the past five years to close at $188.07 on Thursday for a market capitalization of $510.52 billion and a 52-week range of $185.58 to $384.33.
Wall Street sell-side analysts issued a median recommendation rating of overweight for this stock and have established an average target price of $307.51 per share.
Vanguard Group, BlackRock Inc. and FMR LLC are among the company's largest shareholders with 6.70%, 5.82% and 4.69% of shares outstanding, respectively.
Taiwan Semiconductor Manufacturing Co. Ltd.
The third company that qualifies is Taiwan Semiconductor Manufacturing Co. Ltd. (TSM, Financial), a Taiwanese producer and distributor of integrated circuits.
The company saw its revenue per share increase by 10.70% on average per year over the past five years.
The share price has risen 198.65% over the past five years to close at $97.70 on Thursday for a market capitalization of $506.45 billion and a 52-week range of $96.91 to $145.
Wall Street sell-side analysts issued a median recommendation rating of buy for this stock and have established an average target price of $147.58 per share.
Sanders Capital, LLC, Capital World Investors and JPMorgan Chase & Co (JPM, Financial) are among the company's largest shareholders with 0.81%, 0.70% and 0.68% of shares outstanding, respectively.
