A Trio of Companies Growing Earnings Fast

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

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