A Trio of Companies Growing Earnings Fast

Their 5-year earnings growth rates are higher than that of the S&P 500

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Aug 21, 2022
Summary
  • The S&P 500 saw its trailing 12-month real earnings per share increase by about 19.6% on average annually over the past five years.
  • Domino's Pizza, Grocery Outlet and Catalent 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 annual real earnings per share of its member companies increase by an average growth rate of 19.6% every year over the past five years ending in December 2021. The index, which stood at 4,228.48 as of Friday, has climbed more than 70% over the past five years.

Thus, investors may want to consider Domino's Pizza Inc. (

DPZ, Financial), Grocery Outlet Holding Corp. (GO, Financial) and Catalent Inc. (CTLT, Financial)since they have outperformed the benchmark index in terms of higher five-year annual earnings per share growth rates.

Domino's Pizza

Based in Ann Arbor, Michigan, Domino's Pizza (

DPZ, Financial) is a restaurant company that makes and sells pizzas under the Domino's brand name through a network of 18,800 stores and franchises in the U.S. and internationally.

The company has seen its annual earnings per share grow by an average of 22.32% per year over the past five years.

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Following a 114.38% increase over the past five years, shares were changing hands at $405.20 per unit as of end of regular hours on Friday for a market capitalization of about $14.54 billion. The 52-week range is $321.15 to $567.57. The price-earnings ratio is 31.63.

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Vanguard Group is the largest fund holder of the stock with 10.80% of shares outstanding. The asset management firm is followed by BlackRock Inc. with a 9.49% stake and FMR LLC with 6.73%.

On Wall Street, the stock has a median recommendation rating of hold with an average target price of $428.43 per share.

Grocery Outlet

Based in EmeryVille, California, Grocery Outlet (

GO, Financial) owns and operates 425 grocery stores in eight states.

The company has seen its annual earnings per share grow by an average of 40.46% per year over the past five years.

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The stock price has risen by 47.60% over the past five years. The stock price was $42.08 per share as of end of regular hours on Friday for a market capitalization of $4.08 billion. The 52-week range is $21.01 to $46.37. The price-earnings ratio is 75.14.

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BlackRock, Vanguard Group Inc. and Smallcap World Fund Inc. are among the largest fund holders of the company with 9.12%, 8.99% and 7.96% of shares outstanding.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $46.55 per share.

Catalent

Based in Somerset, New Jersey, Catalent (

CTLT, Financial) is a manufacturer of solutions for medicines, protein-based biologics, cell and gene therapies and consumer health care products worldwide.

The company has seen its annual earnings per share grow by an average of 65.08% per year over the past five years.

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The share price has risen rapidly over the past five years, gaining an impressive 195%. It was trading at $105.24 per share as of the end of regular hours on Friday for a market cap of $18.86 billion. The 52-week range is $86.34 to $142.64. The price-earnings ratio is hovering at 38.13.

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Vanguard Group, BlackRock and Capital World Investors are among the largest fund holders of the company with 10.63%, 8.53% and 5.75% of shares outstanding.

On Wall Street, the stock has a median recommendation rating of buy with an average target price of approximately $140.58 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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