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3 Stocks Growing Free Cash Flow Fast

·3 min read

- By Alberto Abaterusso

If you are looking for investment opportunities among U.S.-listed equities, you may want to consider the stocks listed below, as they have seen their free cash flow (FCF) grow remarkably over recent years. As a result, these businesses should be equipped with enough flexibility to fund the development of projects and return cash to shareholders.


Wall Street also predicts a promising future for these stocks, as sell-side analysts have issued positive ratings for them.

Eli Lilly and Co

The first company investors may want to consider is Eli Lilly and Co (NYSE:LLY), an Indianapolis, Indiana-based global manufacturer of pharmaceutical products.

The company has seen the free cash flow per share grow by 52.10% over the last 12 months and by 20.90% per year over the last five years.

Analysts estimate the company will see its earnings per share increase over the next five years at an annual average growth rate of 12.37%.

On Wall Street, as of May, the stock has four strong buys, nine buys, eight holds and one underperform recommendation rating for an average target price of $213.41 per share, reflecting nearly 7% upside from Friday's closing price of $199.88 per share.

The share price has risen 35.09% over the past year through Friday for a market capitalization of $191.69 billion and a 52-week range of $129.21 to $218.

3 Stocks Growing Free Cash Flow Fast
3 Stocks Growing Free Cash Flow Fast

Thermo Fisher Scientific Inc

The second company investors may want to consider is Thermo Fisher Scientific Inc (NYSE:TMO), a Waltham, Massachusetts-based provider of instruments for diagnostics and research worldwide.

The company has seen the free cash flow per share grow by 120.30% over the last 12 months, by 19.10% per year over the last five years and by 15.90% per year over the last 10 years.

For the next five years, analysts forecast that the company will see its earnings per share grow by 5.06% on average every year.

On Wall Street, as of May, the stock has eight strong buys, six buys and one hold recommendation rating. The average target price is $558.08 per share, reflecting a 20.71% upside from the share price of $462.34 at market close on Friday.

The share price has risen by 39.02% over the past year through Friday for a market capitalization of $181.71 billion and a 52-week range of $324.35 to $532.57.

3 Stocks Growing Free Cash Flow Fast
3 Stocks Growing Free Cash Flow Fast

Intuit Inc

The third company investors may want to consider is Intuit Inc (NASDAQ:INTU), a Mountain View, California-based provider of software application solutions for consumers, small businesses, self-employed people and accounting professionals in North America and internationally.

The company has seen the free cash flow per share grow by 10.40% over the last 12 months, by 18.70% per year over the last five years and by 13.10% per year over the last 10 years.

On Wall Street, as of May, the stock has six strong buys, three buys, 11 hold recommendation ratings and only two underperform recommendation ratings for an average target price of $452.57, reflecting a 4.42% upside from Friday's closing price of $433.43 per share.

The share price has moved up by 53.6% over the past year through Friday, determining a market capitalization of $118.69 billion and a 52-week range of $271.54 to $441.36.

3 Stocks Growing Free Cash Flow Fast
3 Stocks Growing Free Cash Flow Fast

Disclosure: I have no positions in any security mentioned.

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This article first appeared on GuruFocus.