1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Alberto Abaterusso
Alberto Abaterusso
Articles (1701) 

A Trio of Strong Performers

Facebook tops the list of highly profitable companies

September 20, 2019 | About:

The following companies have performed very well so far this year, as well as over the past several years.

These securities have received high ranks from GuruFocus in regard to their profitability, increasing the likelihood they will continue to generate positive margins and grow shareholder value.

Further, sell-side analysts on Wall Street have issued positive recommendation ratings ranging between overweight and buy, which bolsters expectations.

Facebook Inc. (NASDAQ:FB) shares have climbed 45% so far this year, 16.7% over the last 52 weeks and 147.6% over the past five years through Sept. 19. The company doesn’t pay a dividend.

Shares of the Menlo Park, California-based social media giant closed at $190.14 on Thursday for a market capitalization of $542.46 billion.

The stock has a price-earnings ratio of 32.22, a price-sales ratio of 8.75 and a price-book ratio of 6.11, suggesting, along with the Peter Lynch chart, that the stock is not cheap.

GuruFocus assigned a rating of 8.6 out of 10 for the company's financial strength and a 9 out of 10 rating for its profitability and growth.

Wall Street issued a buy recommendation rating with an average target price of $236.23.

Procter & Gamble Co. (NYSE:PG) shares have increased 32.6% year to date, 42% over the last 52 weeks and 43.7% over the past five years through Sept. 19. The company has paid dividends since Feb. 14, 1986.

On Aug. 15, the Cincinnati-based household and personal products manufacturer paid a quarterly dividend of 74.6 cents per common share, generating a forward dividend yield of 2.46% versus the S&P 500 Index’s yield of 1.87% as of Sept. 19.

Shares closed at $121.9 on Thursday for a market capitalization of $305.07 billion. It has a price-earnings ratio of 89.61, a price-sales ratio of 4.67 and a price-book ratio of 6.58, suggesting the stock is not cheap. The Peter Lynch chart also indicates the stock is expensive.

GuruFocus assigned a rating of 6.3 out of 10 for the company's financial strength and a 7 out of 10 rating for its profitability and growth.

Wall Street issued an overweight recommendation rating with an average target price of $125.19.

The Walt Disney Co.'s (NYSE:DIS) stock has gained 21.6% year to date, 20.7% over the last 52 weeks and 49.3% over the past five years through Sept. 19. The company has paid dividends since April 7, 1986.

Currently, the Burbank, California-based media and entertainment conglomerate pays a semiannual dividend of 88 per common share. The dividend produces a forward dividend yield of 1.29% versus the S&P 500’s yield of 1.87%.

Shares closed at $133.3 on Thursday for a market capitalization of $240.12 billion. The stock has a price-earnings ratio of 16.8, a price-sales ratio of 3.27 and a price-book ratio of 2.67. These ratios and the Peter Lynch chart suggest Walt Disney is not trading cheaply.

GuruFocus assigned a rating of 4.8 out of 10 for the company's financial strength and a 7 out of 10 rating for its profitability and growth.

Wall Street issued a buy recommendation rating with an average target price of $155.25.

Disclosure: I have no positions in any securities mentioned.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Performances of the stocks mentioned by Alberto Abaterusso


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)