Rising Revenue and Earnings

Companies with strong 5-year figures

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May 08, 2017
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The following companies have boosted their revenues over the last three years as well as their earnings. This figure can be a good starting point for a profitable investment.

InterDigital Inc. (IDCC) has a five-year revenue growth rate of 15% and a five-year earnings per share (EPS) growth rate of 21%. The stock is trading with a price-earnings (P/E) ratio of 9.5, and the price has a positive return of 15% over the last six months.

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The company functions within the communication segment. It develops technologies that enable and enhance wireless communications.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10. The return on equity (ROE) of 50.73% and return on assets (ROA) of 20.22% are outperforming 97% of the companies in the Global Telecom Services industry. Financial strength has a rating of 7 out of 10. The cash-debt ratio of 3.22 is below the industry median of 0.44.

The largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 1.49% followed by First Pacific Advisors (Trades, Portfolio) with 1.39%, Joel Greenblatt (Trades, Portfolio) with 0.83%, FPA Capital Fund (Trades, Portfolio) with 0.65% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

AutoNation Inc. (AN) has a five-year revenue growth rate of 16% and a five-year EPS growth rate of 16%. The stock is trading with a P/E ratio of 9.6, and the price has a negative return of -0.3% over the last six months.

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The company is an automotive retailer in the U.S. It offers automotive products and services including new vehicles, used vehicles, parts and accessories, automotive services, automotive finance and insurance products.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The return on equity (ROE) of 19.29% and return on assets (ROA) of 4.36% are outperforming 53% of the companies in the Global Auto and Truck Dealerships industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.02 is below the industry median of 0.75.

Edward Lampert (Trades, Portfolio)  is the largest shareholder among the gurus with 4.87% of outstanding shares followed by Bill Gates (Trades, Portfolio) with 1.88%, Murray Stahl (Trades, Portfolio) with 1.65%, Mario Gabelli (Trades, Portfolio) with 1.22%, Bill Nygren (Trades, Portfolio) with 1.14%, Greenblatt with 0.23%, Steven Cohen (Trades, Portfolio) with 0.12% and David Dreman (Trades, Portfolio) with 0.01%.

GATX Corp. (GATX) has a five-year revenue growth rate of 7% and a five-year EPS growth rate of 21%. The stock is trading with a P/E ratio of 9.8, and the price has a positive return of 7% over the last six months.

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The company operates, manages and remarkets long-lived used assets in the rail and marine market. It also provides leasing, shipping, asset remarketing and asset management services.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10. The ROE of 18.26% and ROA of 3.46% are outperforming 60% of the companies in the Global Rental and Leasing Services industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.04 is below the industry median of 0.69.

The largest shareholder among the gurus is Gabelli with 7.13% of outstanding shares followed by John Hussman (Trades, Portfolio) with 0.15% and Jones with 0.04%.

CNO Financial Group Inc. (CNO) has a five-year revenue growth rate of 10% and a five-year EPS growth rate of 7%. The stock is trading with a P/E ratio of 10.0, and the price has a positive return of 35.1% over the last six months.

It is a holding company for a group of insurance companies. The company through its subsidiaries develops, markets and administers health insurance, annuity, individual life insurance and other insurance products.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10. The ROE of 8.42% and ROA of 1.17% are outperforming 51% of the companies in the Global Insurance – Life industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.21 is below the industry median of 8.23.

HOTCHKIS & WILEY is the largest shareholder among the gurus with 3.39% of outstanding shares followed by Columbia Wanger (Trades, Portfolio) with 1.2%, Simons with 0.12%, Barrow, Hanley, Mewhinney & Strauss with 0.07%, Jones with 0.05% and Greenblatt with 0.01%.

Toyota Motor Corp. ADRĂ‚ (TM) has a five-year revenue growth rate of 10% and a five-year EPS growth rate of 55%. The stock is trading with a P/E ratio of 10.2, and the price has an almost null return of -0.6% over the last six months.

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The company designs, manufactures and sells sedans, minivans, compact cars, sport utility vehicles, trucks and related parts and accessories. The company also provides financing, vehicle and equipment leasing and certain other financial services.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 11.03% and ROA of 3.99% are outperforming 50% of the companies in the Global Auto Manufacturers industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.21 is below the industry median of 0.75.

The largest shareholder among the gurus is Simons with 0.07% of outstanding shares followed by NWQ Managers (Trades, Portfolio) with 0.03% and Charles Brandes (Trades, Portfolio) with 0.01%.

Discover Financial Services (DFS) has a five-year revenue growth rate of 11% and a five-year EPS growth rate of 6%. The stock is trading with a P/E ratio of 10.3, and the price has a positive return of 8.1% over the last six months.

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It is a direct banking and payment services company that offers credit card loans, private student loans, personal loans, home equity loans and deposit products.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 20.55% and ROA of 2.63% are outperforming 55% of the companies in the Global Credit Services industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.57 is below the industry median of 8.43.

PRIMECAP Management (Trades, Portfolio) is the largest shareholder among the gurus with 1.46% of outstanding shares followed by Barrow, Hanley, Mewhinney & Strauss with 1.19%, NWQ Managers with 0.5%, Pioneer Investments (Trades, Portfolio) with 0.33%, Diamond Hill Capital (Trades, Portfolio) with 0.06%, Jeremy Grantham (Trades, Portfolio) with 0.05%, Keeley Asset Management Corp (Trades, Portfolio) with 0.02% and John Rogers (Trades, Portfolio) with 0.01%.

Bank Bradesco SA ADRĂ‚ (BBDO) has a five-year revenue growth rate of 11% and a five-year EPS growth rate of 12%. The stock is trading with a P/E ratio of 10.6, and the price has a positive return of 12.6% over the last six months.

The company operates as a commercial bank. It provides banking and financial products and services in Brazil and abroad to individuals, midsized and small companies and local and international corporations and institutions.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 18.47% and ROA of 1.64% are outperforming 81% of the companies in the Global Banks - Regional - Latin America industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.28 is below the industry median of 2.23.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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