3 Companies Growing Earnings Fast

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

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Oct 05, 2022
Summary
  • The S&P 500 saw its trailing 12-month real earnings per share increase by about 14.55% on average annually over the past five years.
  • Highwoods Properties Inc., Axalta Coating Systems Ltd and Tricon Residential Inc. 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 earnings per share of its member companies increase by an average of 14.55% every year over the past five years ending in the first quarter of 2022. The index, which stood at 3,790.93 as of Tuesday, has climbed more than 48% over the past five years.

Thus, investors may want to consider Highwoods Properties Inc. (

HIW, Financial), Axalta Coating Systems Ltd (AXTA, Financial) and Tricon Residential Inc. (TCN, Financial), since these companies have outperformed the benchmark index in terms of higher five-year annual earnings per share growth rates and are recommended by Wall Street.

Highwoods Properties Inc.

Highwoods Properties Inc. (

HIW, Financial) is a Raleigh, North Carolina-based real estate investment trust that acquires, owns, manages and leases real estate properties in urban areas of the Southern United States.

Highwoods Properties derives almost all of its revenue from its rental buildings, which are leased to the U.S. government, financial services companies, industrial supplies retailers and health care companies in the metropolitan markets of Atlanta, Raleigh, Nashville and Tampa.

The company has seen its annual earnings per share grow by an average of 18.96% per year over the past five years.

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Following a 50.60% decrease over the past five years, shares were changing hands at $26.06 per unit during regular hours on Wednesday for a market capitalization of about $2.73 billion. The 52-week range is $25.53 to $47.66. The price-earnings ratio is 9.47.

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Vanguard Group is the largest fund holder of the stock with 15.33% of shares outstanding. The asset management firm is followed by Cohen & Steers Inc. with a 14.99% stake and BlackRock Inc. with 11.26%.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $37 per share.

Axalta Coating Systems Ltd

Axalta Coating Systems Ltd (

AXTA, Financial) is a Glen Mills, Pennsylvania-based global distributor of high-performance coatings for its refinish and industrial end-markets and a distributor of coating technologies to light and commercial vehicle OEMs. The main sales driver is the Performance Coatings segment.

The company has seen its annual earnings per share grow by an average of 42.50% per year over the past five years.

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The stock price has fallen by 24% over the past five years. The stock price was $23.20 per share during regular hours on Wednesday for a market capitalization of $5.1 billion. The 52-week range is $20.95 to $34.12. The price-earnings ratio is 25.43.

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Vanguard Group Inc., Massachusetts Financial Services Co and Barrow, Hanley, Mewhinney & Strauss are among the largest fund holders of the company with 9.28%, 7.68% and 7.18% of shares outstanding.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $29.32 per share.

Tricon Residential Inc.

Tricon Residential Inc. (

TCN, Financial) is a Toronto, Canada-based rental housing company focused on serving the middle-class demographic. Tricon owns and operates over 30,000 single and multi-family homes in 21 markets throughout the United States and Canada. The company operates the residential portfolio via an integrated technology-enabled operating platform.

The company has seen its annual earnings per share grow by an average of 17.97% per year over the past five years.

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Following an 8.21% increase over the past five years, shares were changing hands at $8.83 per unit during regular hours on Wednesday for a market capitalization of about $2.38 billion. The 52-week range is $8.44 to $17.23. The price-earnings ratio is 3.34.

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Bank of Montreal is the largest fund holder of the stock with 6.99% of shares outstanding. The bank is followed by Wellington Management Group LLP with a 4.89% stake and Cohen & Steers Inc. with 4.60%.

On Wall Street, the stock has a median recommendation rating of buy with an average target price of $14.87 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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