3 Stocks That Have Grown Revenue Fast
The S&P 500 index saw its total sales grow at an annualized 4.1% rate over the five years from Dec. 31, 2014 to Dec. 31, 2019. Over the past five years through April 20, shares of the benchmark for the U.S. market rose by more than 30% to close at a price of $2,823.16 per unit.
The following companies have outperformed the benchmark in terms of higher revenue growth over the past five years. On the tailwind of this, their stocks posted share price returns in the range of 35% to 345%.
Wall Street sell-side analysts have also recommended optimistic ratings for these stocks.
Equifax Inc
The first company under consideration is Equifax Inc (NYSE:EFX).
The Atlanta-based consulting services provider to consumers, businesses and public organizations saw its total revenue per share growing by 8% on average every year in the past five years. The share price rose 34% over the same period.
The share price was trading at $125.81 at close on Monday for a market capitalization of $15.35 billion, a price-book ratio of 5.95 and a price-sales ratio of 4.38.
GuruFocus assigned a low score of 3 out of 10 to the company's financial strength rating but a very high score of 8 out of 10 to its profitability.
Wall Street sell-side analysts recommend an overweight rating for this stock and have produced an average target price of $145.47 per share.
Cable One
The second company under consideration is Cable One Inc (NYSE:CABO).
The Phoenix, Arizona-based telecommunication services company saw its total revenue per share growing by 8.8% on average every year over the past five years, determining a 346% increase in the share price.
The share price was trading at $1,783.24 at close on Monday for a market capitalization of $10.21 billion, a price-book ratio of 12.2 and a price-sales ratio of 8.76.
GuruFocus assigned a moderate financial strength rating of 4 out of 10 to the company's financial strength and a high rating of 8 out of 10 to its profitability.
Wall Street sell-side analysts recommend a moderate buy rating for this stock and have set an average target price of $1,968.
Pegasystems Inc
The third company under consideration is Pegasystems Inc (NASDAQ:PEGA).
The Cambridge, Massachusetts-based developer, marketer and licensor of software applications to enterprises in North America and internationally saw its total revenue per share growing by 8.7% on average every year over the past five years. The share price increased by 255% over the observed years.
The share price was trading at $77.31 per share on Monday for a market capitalization of $6.16 billion, a price-book ratio of 11.39 and a price-sales ratio of 6.71.
GuruFocus assigned a positive score of 6 out of 10 to the company's financial strength rating and a high score of 7 out of 10 to its profitability rating.
Wall Street sell-side analysts recommend a buy rating for this stock with an average target price of $108 per share.
Disclosure: I have no positions in any securities mentioned in this article.
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This article first appeared on GuruFocus.
