4 Stocks Growing Free Cash Flow Fast

These companies have strong potential to continue growing over the years

Summary
  • Apple Inc., Tesla Inc., Microsoft Corp and Pinterest Inc. have seen their free cash flow grow significantly in recent years.
  • Their businesses should be flexible enough to continue to support the development of projects and return cash to shareholders.
  • The majority of sell-side analysts on Wall Street have issued positive ratings for these stocks.
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If you are looking for opportunities to invest in U.S.-listed stocks, you may want to consider 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 four 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.

Apple Inc.

The first company that investors may want to consider is Apple Inc. (AAPL, Financial), a Cupertino, California-based manufacturer of smartphones, personal computers, tablets, wearables and accessories worldwide.

The company has seen its free cash flow per share increase by 13.90% per year over the last 10 years, by 17.60% per year over the last five years and by 21.10% over the past year.

Analysts estimate the company will keep growing its earnings per share by 9.40% in 2022, by 6.80% in 2023 and by 9.91% per year over the next five years.

On Wall Street as of May, the stock has 11 strong buys, 21 buys and six hold recommendation ratings. The average target price is $188.92 per share.

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The share price ($149.64 as of May 27) has risen 20.41% over the past year for a market capitalization of $2.42 trillion and a 52-week range of $123.13 to $182.94.

Tesla Inc.

The second company to consider is Tesla Inc (TSLA, Financial), an Austin, Texas-based manufacturer of electric vehicles as well as energy generation and storage systems that are sold in the United States, China and internationally.

The company has seen its free cash flow per share increase by a whopping 183.10% over the last 12 months.

Analysts estimate the company's earnings per share will increase by 79.50% this year, by 30.40% in 2023 and by 39.73% per year over the next five years.

On Wall Street as of May, the stock has four strong buys, four buys, eight holds, six underperform ratings and only one sell recommendation rating. The average target price is $933.40 per share.

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The share price ($759.63 on May 27) is up 21.76% year-over-year, yielding a market cap of $786.98 billion. The 52-week range is $571.22 to $1,243.49.

Microsoft Corp

The third company that investors may want to consider is Microsoft Corp.. (MSFT, Financial), a Redmond, Washington-based developer, manufacturer, licensor and seller of computer software, personal computers and consumer electronics.

The company has seen its free cash flow per share increase by 8.80% per year over the last 10 years, by 17.50% per year over the last five years and by 19.40% over the last 12 months.

Analysts estimate the company's earnings per share will increase by 15.80% this year, by 15.60% in 2023 and by 16.23% per year over the next five years.

On Wall Street as of May, the stock has 14 strong buys, 13 buys, six holds and only one sell recommendation rating. The average target price is $360.34 per share.

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The share price ($273.24 as of May 27) has climbed 10.44% over the past year, determining a market capitalization of $2.04 trillion and a 52-week range of $243 to $349.67.

Pinterest Inc.

The fourth company to consider is Pinterest Inc. (PINS, Financial), a San Francisco, California-based provider of a visual discovery social media platform.

The company has grown its free cash flow per share by a whopping 180.10% over the trailing 12 months.

Analysts estimate the company's earnings per share will decrease by 15.90% this year but increase 22.10% in 2023 and increase by 1.40% per year over the next five years.

On Wall Street as of May, the stock has three strong buys, 10 buys, 21 holds and only one underperform recommendation rating. The average target price is $30.31 per share.

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The share price ($20.45 on May 27) is down 68.23% year-over-year, yielding a market cap of $13.57 billion. The 52-week range is $16.14 to $81.77.

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