U.S. markets closed
  • S&P 500

    3,841.94
    +73.47 (+1.95%)
     
  • Dow 30

    31,496.30
    +572.16 (+1.85%)
     
  • Nasdaq

    12,920.15
    +196.68 (+1.55%)
     
  • Russell 2000

    2,192.21
    +45.29 (+2.11%)
     
  • Crude Oil

    66.28
    +2.45 (+3.84%)
     
  • Gold

    1,698.20
    -2.50 (-0.15%)
     
  • Silver

    25.30
    -0.17 (-0.65%)
     
  • EUR/USD

    1.1916
    -0.0063 (-0.52%)
     
  • 10-Yr Bond

    1.5540
    +0.0040 (+0.26%)
     
  • GBP/USD

    1.3834
    -0.0060 (-0.43%)
     
  • USD/JPY

    108.3600
    +0.3840 (+0.36%)
     
  • BTC-USD

    49,460.12
    +803.46 (+1.65%)
     
  • CMC Crypto 200

    982.93
    +39.75 (+4.21%)
     
  • FTSE 100

    6,630.52
    -20.36 (-0.31%)
     
  • Nikkei 225

    28,864.32
    -65.78 (-0.23%)
     

3 Stocks That Have Grown Sales Fast

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

The S&P 500 index saw its total sales grow at an annualized 4% rate over the past five years through Sept. 30, 2019. On the tailwind of this, the value of the benchmark for the U.S. market rose by nearly 45%.

The following companies have outperformed the benchmark over the past five years in this regard. As a result of higher growth per year, their stocks posted share price returns in the range of 35% to 120%.


The past is no guarantee of future performance, but no one can deny that stocks growing their sales faster than the market are doing something right.

Wall Street sell-side analysts have also issued positive recommendation ratings for these stocks.

Becton, Dickinson and Co

The first company that meets the above-listed search criteria is Becton, Dickinson and Co (NYSE:BDX).

The Franklin Lakes, New Jersey-based developer, manufacturer and seller of medical instruments and supplies has grown its total revenue by nearly 15% over the past five years, resulting in a 66% share price increase.

The share price traded at $237.31 at close on March 10 for a market cap of $64.35 billion.

The stock has a price-earnings ratio of 87.25 and a price-sales ratio of 3.74. These ratios, along with the Peter Lynch chart below, indicate that this stock is not trading cheaply.

Wall Street sell-side analysts recommend an overweight rating for this stock with an average target price of $274.29.

GuruFocus assigned the company a moderate financial strength rating of 4 out of 10 and a very high profitability rating of 9 out of 10.

Xylem

The second company that meets the above-listed criteria is Xylem Inc (NYSE:XYL).

The Rye Brook, New York-based provider of engineered solutions for water and wastewater applications has grown its total revenue by 8.2% in the past five years, which produced an 118% rise in the share price.

The stock traded around a price of $76.79 per share at close on March 10 for a market cap of $13.84 billion, a price-earnings ratio of 34.75 and a price-sales ratio of 2.65. These ratios, together with the below Peter Lynch chart, suggest that the stock is not at its cheapest.

Wall Street sell-side analysts recommend a hold rating for this stock with an average target price of $81.65 per share.

GuruFocus assigned the company a moderate financial strength rating of 5 out of 10 and a very high profitability rating of 9 out of 10.

Internet Initiative Japan

The third company that meets the above-listed criteria is Internet Initiative Japan Inc ADR (IIJIY).

The Japanese telecommunication services company has grown its total revenue by 11.4% in the past five years, determining a 36% increase in the share price.

The share price closed at $14.14 on March 10 for a market capitalization of $1.28 billion. The stock has a price-earnings ratio of 41.58 and a price-sales ratio of 0.69. The Peter Lynch chart and the price-earnings ratio show that the stock doesn't trade cheaply.

Wall Street sell-side analysts have recommended an overweight rating for this stock and established an average target price of $14.77.

GuruFocus assigned the company a positive financial strength rating of 6 out of 10 and a profitability rating of 7 out of 10.

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

Read more here:



Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

This article first appeared on GuruFocus.