Over the past 5 years through Nov. 8, the S&P 500 rose by 49.51% to Friday’s closing share price of $ 3,093.08. The main catalyst was a 47% growth (about 9.4% average increase per year) in the earnings per share (not inflation-adjusted) of the benchmark for US markets.
Past performance is not a guarantee for future results, but stocks that have outperformed the S&P 500 in terms of higher earnings per share growth have many possibilities to keep on increasing earnings, which will push share prices higher.
Thus, investors may be interested in the following stocks that have reported more than 47% growth in their earnings per share in the past 5 years.
Sell-side analysts on Wall Street have the same advice, as they released an optimistic recommendation rating of overweight for them.
This search also considers earnings per share without non-recurring items, as it better enables investors to project future earnings growth (excluding one-time charges or gains that influence the bottom-line result of the income statement of companies).
Puma SE
The first company is Puma SE (PMMAF, Financial), which has grown its trailing 12-month earnings per share without non-recurring items by 74.3% over the past five years, as illustrated in the chart below.
The German designer and marketer of footwear, apparel and accessories closed at $74.58 per share on Friday for a market capitalization of $11.01 billion.
The stock has climbed 55.7% so far this year, beating the S&P 500 Index by 32.5%, and 131.7% in the past 5 years through Nov. 8, beating the S&P 500 Index by 88.3%.
The company has a price-earnings ratio of 38.34 versus the industry median of 13.17 and a price-sales ratio of 1.86 versus the industry median of 0.6.
On April 25 earlier this year, Puma paid an annual dividend of €0.35 Euros ($0.385 USD) per common share, producing a 0.52% forward dividend yield versus the S&P 500’s yield of 1.85% as of Nov. 8.
Except for the year 2012, the company has continuously paid annual dividends since May 2009.
Wall Street recommends an overweight rating for shares of Puma SE with an average target price of $69.82.
Dave & Buster's Entertainment
The second company is Dave & Buster's Entertainment, Inc. (PLAY, Financial). The company has grown its trailing 12-month earnings per share without non-recurring items by 123% over the past five years.
The Dallas-based entertainment and dining venues operator closed at $41.5 per share on Friday for a market capitalization of $1.28 billion.
The stock has declined nearly 5% so far this year, underperforming the S&P 500 by about 27.7%. However, it has increased 196.2% in the past 5 years through Nov. 8, topping the S&P 500 index by 152.7%.
The company has a price-earnings ratio of 13.48 versus the industry median of 24.36 and a price-sales ratio of 1.2 versus the industry median of 0.89.
On Nov. 11, Dave & Buster's Entertainment paid 16 cents quarterly dividend per common share, generating a 1.54% forward dividend yield versus the S&P 500’s yield of 1.85%, as of Nov. 8.
The company has paid quarterly dividends starting Oct. 10, 2018.
Wall Street issued an overweight recommendation rating for shares of Dave & Buster's Entertainment with an average target price of $44.45.
Kimball International
The third company is Kimball International, Inc. (KBAL, Financial), which has recorded 59.6% growth in its trailing 12-month earnings per share without non-recurring items over the past five years.
The Jasper, Indiana-based designer, producer and marketer of Kimball, National and Kimball Hospitality branded products in the US and internationally closed at $21.55 per share on Friday for a market capitalization of $796.12 million.
The stock has increased by 49.4% so far this year, outperforming the S&P 500 index by more than 26%, and by 68.6% in the past 5 years through Nov. 8, outperforming the S&P 500 index by 25.2%.
The stock’s price-earnings ratio of 19.97 is above the industry median of 16.3 and its price-sales ratio of 1.04 is also over the industry median of 0.76.
On Jan. 15, Kimball International Inc will pay a quarterly dividend of 9 cents per common share, producing a 1.67% forward dividend yield versus the S&P 500’s yield of 1.85%. Yields are as of Nov. 8. The company has been paying quarterly dividends for almost 35 years.
Wall Street issued a buy recommendation rating for shares of Kimball International with an average target price of $15.
Disclosure: I have no positions in any securities mentioned in this article.
Read more here:
- Consider These Fairly Priced Stocks for Your Portfolio
- 3 Low Price-Book Stocks for Value Investors
- A Trio of Cheap High Earnings Yield Stocks
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