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3 Stocks Growing Sales Fast

Growing sales is an essential catalyst for stocks to trade at higher prices.

The S&P 500's total sales grew by 4% on average every year over the past five years through Sept. 30, 2019. On the tailwind of this, the share price of the benchmark for the U.S. market gained 50.5% cumulatively in the past five years to close at $3,116.39 on Feb. 26, 2019.

The following stocks outperformed the benchmark for the U.S. market in terms of higher sales growth over the same time period, delivering share price increases in the range of 50% to 220%.


The past is no guarantee for future performance, but stocks that have already shown the ability to grow their sales faster than the U.S. market are more likely to continue delivering impressive share price returns.

Furthermore, Wall Street analysts have released optimistic recommendation ratings for these companies.

Cypress Semiconductor

The first company that meets the above-listed search criteria is Cypress Semiconductor Corp. (NASDAQ:CY).

The San Jose, California-based provider of semiconductors worldwide has grown its trailing 12-month revenue per share by 6.7% every year over the past five years, producing a 53% rise in the share price.

The share price traded at $23.16 at close on Feb. 26 for a market capitalization of $8.63 billion.

The stock has a price-earnings ratio of 231.6 versus the industry median of 25.16 and a price-sales ratio of 3.99 versus the industry median of 1.77.

Wall Street sell-side analysts recommend a hold rating for this stock with an average target price of $23.71.

GuruFocus assigned the company a positive financial strength rating of 6 out of 10 and a moderate profitability rating of 5 out of 10.

Waste Connections

The second company that has the above-listed criteria is Waste Connections Inc. (NYSE:WCN).

The Canadian waste management company has grown its trailing 12-month revenue per share by 7.9% every year over the past five years, determining a 216% rise in the share price.

The stock traded at a price of $99.87 per share at close on Feb. 26 for a market capitalization of $26.3 billion, a price-earnings ratio of 46.67 versus the industry median of 19.48 and a price-sales ratio of 4.9 versus the industry median of 1.31.

Wall Street sell-side analysts recommend a buy rating for this stock with an average target price of $112.

GuruFocus assigned the company a moderate financial strength rating of 5 out of 10 and a high profitability rating of 8 out of 10.

Ritchie Bros Auctioneers

The third company that meets the above-listed criteria is Ritchie Bros Auctioneers Inc. (NYSE:RBA).

The Canadian specialty business services company has grown its trailing 12-month revenue per share by 23.4% every year over the past five years, determining a 67% increase in the share price.

The share price traded at $41.43 on Feb. 26 for a market capitalization of $4.5 billion. The stock has a price-earnings ratio of 34.28 versus the industry median of 17.36 and a price-sales ratio of 3.39 versus the industry median of 0.99.

Wall Street sell-side analysts have recommended a hold rating for this stock and established an average target price of $40.86 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.

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

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This article first appeared on GuruFocus.