3 Stocks That Have Grown Earnings Fast
The S&P 500 index posted a 7.2% yearly increase in its annual earnings per share over the past five years through Dec. 31, 2019. The share price of the index ($3,083.76 at close on Thursday) is up nearly 47% over the past five years through June 25.
Thus, investors may want to consider Baxter International Inc (NYSE:BAX), Axalta Coating Systems Ltd (NYSE:AXTA) and Maxim Integrated Products Inc (NASDAQ:MXIM) as potential investments, as these companies have outperformed the benchmark for the U.S. market in terms of a higher five-year EPS growth rate.
Baxter International Inc
The Deerfield, Illinois-based global supplier of several healthcare products posted a five-year EPS without a non-recurring items (NRI) growth rate of 19.5%.
The stock price was trading at $85.33 per share at close on Thursday for a market capitalization of $43.42 billion and a price-earnings ratio of 43.31 versus the industry median of 34.32.
Wall Street sell-side analysts recommend an overweight rating for the stock and have established an average price target of $97.39 per share.
GuruFocus assigned a positive rating of 6 out of 10 to the company's financial strength and a very good rating of 7 out of 10 to its profitability.
Axalta Coating Systems Ltd
The Philadelphia-based global distributor of high performance coatings systems posted five-year EPS without NRI growth rate of 46%.
The stock price was trading at $21.72 per share at close on Thursday for a market capitalization of $5.11 billion and a price-earnings ratio of 19.75 versus the industry median of 16.71.
Wall Street sell-side analysts recommend a buy rating with an average target price of $25.79 per share.
GuruFocus assigned the company a moderate rating of 4 out of 10 for the financial strength and a positive rating of 6 out of 10 for the profitability.
Maxim Integrated Products Inc
The San Jose, California-based seller of integrated circuits in North America and internationally posted a five-year EPS without NRI growth rate of 25.1%.
The stock price was trading at $60.19 per share at close on Thursday for a market capitalization of $16.05 billion and a price-earnings ratio of 20.33 versus the industry median of 23.89.
Wall Street sell-side analysts recommend a hold rating and have established an average target price of $60.44 per share.
GuruFocus assigned a very good financial strength rating of 7 out of 10 to the company and a high profitability rating of 8 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.
