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3 Fast Growing Earnings Stock Picks for the Investor

In order to increase your chances to come across securities with high potential, you may want to consider those stocks that have beaten the S&P 500 index in terms of higher earnings per share growth over the past few years. The S&P 500 is used as a benchmark for the U.S. market.

The S&P 500 has grown its earnings per share by a yearly average rate of nearly 5% over the past five years, which has created a catalyst that helped move the value of the index up by 34% to $2,761.63 at close on April 13, 2020.


Thus, investors may want to have a look at Mondelez International Inc (NASDAQ:MDLZ), CSX Corp (NASDAQ:CSX) and Middlesex Water Co (NASDAQ:MSEX), as these companies have beaten the S&P 500 in terms of higher earnings growth over the period in question.

Mondelez International Inc

The Deerfield, Illinois-based producer and global seller of snack food and beverage products saw its trailing 12-month EPS without non-recurring items grow by an average of 6.5% per year over the past five full fiscal years. The share price rose by 38.54% in the past five years to close at $52.34 on Monday.

The stock has a market capitalization of $74.83 billion, a price-earnings ratio of 19.68 versus the industry median of 16.6 and a price-sales ratio of 2.95 versus the industry median of 0.74.

Wall Street recommends buying the stock and has established an average price target of $61.21 per share.

GuruFocus assigned a moderate rating of 5 out of 10 for the company's financial strength and a very good rating of 7 out of 10 for its profitability.

CSX Corp

The Jacksonville, Florida-based provider of railroad transportation services saw its trailing 12-month EPS without NRI growing by a yearly average rate of 22.3% over the past five years, pushing the share price up by 87.4% in the past five years to $61.57 at close on Monday.

The stock has a market capitalization of $49.33 billion, a price-earnings ratio of 15.35 versus the industry median of 11.13 and a price-sales ratio of 4.28 versus the industry median of 0.52.

Wall Street issued an overweight recommendation rating for the stock with an average price target of $68.33 per share.

GuruFocus assigned the company a moderate financial strength rating of 4 out of 10 and a high profitability rating of 8 out of 10.

Middlesex Water Co

The Iselin, New Jersey-based operator of regulated and non-regulated utility systems for the distribution of water and the treatment of wastewater saw its trailing 12-month EPS without NRI growing by a yearly average rate of 13.1% over the past five full fiscal years. This has pushed the share price up by 169.3% in the past five years to close at $62.37 on Monday.

The stock has a market capitalization of $1.09 billion, a price-earnings ratio of 31.19 compared to the industry median of 14.68 and a price-sales ratio of 7.8 compared to the industry median of 1.2.

Wall Street recommends buying the stock and has set an average price target of $71.33 per share.

GuruFocus assigned a moderate score of 4 out of 10 to the company's financial strength, but a very good score of 7 out of 10 to the company's profitability.

Disclosure: I have no positions in any securities mentioned in this article.

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This article first appeared on GuruFocus.