U.S. markets open in 6 hours 48 minutes
  • S&P Futures

    4,118.00
    -2.25 (-0.05%)
     
  • Dow Futures

    33,644.00
    +13.00 (+0.04%)
     
  • Nasdaq Futures

    13,784.25
    -24.50 (-0.18%)
     
  • Russell 2000 Futures

    2,227.00
    -3.60 (-0.16%)
     
  • Crude Oil

    59.99
    +0.29 (+0.49%)
     
  • Gold

    1,725.50
    -7.20 (-0.42%)
     
  • Silver

    24.85
    -0.01 (-0.05%)
     
  • EUR/USD

    1.1899
    -0.0018 (-0.15%)
     
  • 10-Yr Bond

    1.6750
    0.0000 (0.00%)
     
  • Vix

    16.91
    +0.22 (+1.32%)
     
  • GBP/USD

    1.3752
    +0.0010 (+0.07%)
     
  • USD/JPY

    109.6190
    +0.2430 (+0.22%)
     
  • BTC-USD

    60,774.70
    +639.06 (+1.06%)
     
  • CMC Crypto 200

    1,295.66
    +1.07 (+0.08%)
     
  • FTSE 100

    6,889.12
    -26.63 (-0.39%)
     
  • Nikkei 225

    29,751.61
    +212.88 (+0.72%)
     

3 Stocks Growing Capex Fast

  • Oops!
    Something went wrong.
    Please try again later.
GuruFocus.com
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

- By Alberto Abaterusso

The following companies have been upgrading their operating activities in recent years, significantly increasing the funds allocated to their acquisition of property, plant and equipment. This could be a signal that the executives of these companies expect a higher demand for the goods and services they produce and supply, which would ideally correspond to higher revenues.


Wall Street sell-side analysts also recommend these stocks, having issued positive ratings for them.

Inseego Corp

The first company that qualifies is Inseego Corp (NASDAQ:INSG), a San Diego, California-based designer and developer of mobile, Internet of Things and cloud solutions for large enterprise verticals for service providers worldwide.

Inseego Corp used more than $6.5 million for the purchase of property, plant and equipment assets in full-year 2019, which marks a dramatic increase compared to the $2 million allocated in 2015.

Morningstar analysts estimate earnings growth rates of 71.40% on higher sales of $311.58 million for 2020 (up 42% year over year) and of 383.30% on higher sales of $364.61 million for 2021 (up 17% year over year).

On Wall Street, the stock holds an overweight median recommendation rating with an average price target of $13.75 per share.

The stock traded at $18.36 per share at close on Friday for a market capitalization of $1.82 billion. The share price has risen by 161.2% over the past year.

3 Stocks Growing Capex Fast
3 Stocks Growing Capex Fast

Cohu Inc

The second company that holds the criteria is Cohu Inc (NASDAQ:COHU), a Poway, California-based provider of semiconductor equipment and materials to semiconductor, electronics manufacturers and test subcontractors in the U.S. and internationally.

Cohu allocated $18 million to the purchase of property, plant and equipment in full-year 2019, representing a dramatic increase from $1.46 million allocated in the full year 2014.

Morningstar analysts estimate the earnings per share will increase up to $1.06 for full-year 2020 (from $0.09 in 2019) and up to $2.57 (a gain of 29.30% year over year) for the full year of 2021. Sales are expected to show increases of $631.43 million (up 8.2% year over year) for full-year 2020 and of $816.14 million (up 29.30% year over year) for full-year 2021.

On Wall Street, the stock holds a median recommendation rating of buy with an average target price of $51 per share.

The stock traded at $40.68 per share at close on Friday for a market capitalization of $1.71 billion as a result of an 80% growth over the prior 12 months. The price-book ratio is 3.60.

3 Stocks Growing Capex Fast
3 Stocks Growing Capex Fast

8x8 Inc

The third company that makes the cut is 8x8 Inc (NYSE:EGHT), a Campbell, California-based provider of various telecommunication software solutions for businesses, government agencies and other public organizations worldwide.

8x8 invested $35.83 million for the purchase of property, plant and equipment in full fiscal 2020, which marked an impressive increase from total spending of $5.83 million in full fiscal 2015.

Morningstar analysts estimate an earnings growth rate of 76.30% on higher sales of $526.30 million for full fiscal 2021 (up 17.90% year over year), followed by earnings growth of 142.90% on higher sales of $611.99 million for full fiscal 2022 (up 16.30% year over year).

On Wall Street, the stock holds a median recommendation rating of overweight for an average target price of $39.28 per share.

The stock traded at $35.25 per share at close on Friday for a market capitalization of $3.78 billion following an increase of 85.42% over the past 52 weeks. The price-book ratio is 22.66.

3 Stocks Growing Capex Fast
3 Stocks Growing Capex Fast

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.

This article first appeared on GuruFocus.