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3 Stocks Growing Capex Fast

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- By Alberto Abaterusso

The three companies listed below have been upgrading their operating activities in recent years, substantially increasing the financial resources allocated to their purchase of fixed assets such as property, plant and equipment. This could indicate that the managers of these companies expect a higher demand for the goods and services they produce, which would ideally correspond to higher revenues.


Wall Street sell-side analysts are also optimistic about these stocks, as they have issued positive ratings for each of them.

MongoDB Inc

The first company that qualifies is MongoDB Inc (NASDAQ:MDB), a New York-based provider of a commercial database server for enterprise customers, as well as consulting and training services for professional customers.

MongoDB spent nearly $12 million for the purchase of property, plant and equipment in its full fiscal year 2021, which ended on Jan. 30, 2021, marking an impressive growth from the $500,000 spent in full fiscal 2016.

Morningstar analysts estimate that on a year over year basis, total sales will increase by 29.6% to $765.18 million in full fiscal year 2022, by 25.7% to $961.53 million in full fiscal year 2023 and by 31% to $1.26 billion in full fiscal year 2023. As a result of this, the bottom line should start to improve in full fiscal year 2023 when the company is expected to reduce the adjusted net loss by 34.3% to 94 cents per share.

On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $375 per share.

The stock traded at $288.56 per share at close on Tuesday for a market capitalization of $17.92 billion. The share price has increased by 36.2% over the past year.

3 Stocks Growing Capex Fast
3 Stocks Growing Capex Fast

Duke Realty Corp

The second company that qualifies is Duke Realty Corp (NYSE:DRE), an Indianapolis, Indiana-based real estate investment trust, which owns and operates nearly 160 million rentable square feet of industrial warehouses.

Duke Realty Corp used funds of $383.67 million for the purchase of property, plant and equipment in full year 2020, representing a more than 13-fold increase compared to the $28.85 million spent in full year 2015.

Morningstar analysts estimate that on a year over year basis, total revenue will increase by 15.21% to $1.071 billion in full year 2021, by 9.24% to $1.17 billion in full year 2022 and by 3.42% to $1.21 billion in full year 2023. Earnings for full year 2022 are expected to be 73 cents per share, representing a nearly 10% year over year increase.

On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $48.29 per share.

The stock traded at $46.27 per share at close on Tuesday for a market capitalization of $17.35 billion thanks to a 35.6% increase over that past year. The price-book ratio is 3.34 versus the industry median of 1.04.

3 Stocks Growing Capex Fast
3 Stocks Growing Capex Fast

HelloFresh SE

The third company that qualifies is HelloFresh SE (HLFFF), a Berlin, Germany-based deliverer of meal kit solutions in several countries.

HelloFresh allocated $74.4 million for the purchase of property, plant and equipment in full year 2020, increasing from the $10.3 million spent in full year 2017.

Morningstar analysts estimate that total sales will be $6.32 billion in 2021 (up 38.6% year over year), $7.37 billion in 2022 (up 16.6% year over year) and $8.66 billion in 2023 (up 17.5% year over year). Over the same years, earnings are expected to be $2.38 per share in 2021, $2.47 per share in 2022 and $3.04 per share in 2023.

On Wall Street, the stock holds a median recommendation rating of overweight for an average target price of $85.43 per share.

The stock was trading at $93.49 per share at close on Tuesday for a market capitalization of $16.27 billion following a 121.54% increase that occurred over the past 12 months. The price-book ratio is 18.42 versus the industry median of 2.75.

3 Stocks Growing Capex Fast
3 Stocks Growing Capex Fast

Disclosure: I have no positions in any securities mentioned.

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This article first appeared on GuruFocus.