Are you an investor looking for high-growth, steady income, or both? What makes a suitable investment stock for your personal needs? Given that there are many factors to consider, I’ve filtered down to five key characteristics most investors look for. Below is a list of companies which provide investors with two or more favourable aspects, making them popular investments .
Cullen/Frost Bankers, Inc. (NYSE:CFR)
Cullen/Frost Bankers, Inc. operates as the holding company for Frost Bank that offers commercial and consumer banking services in Texas. Established in 1868, and now led by CEO Phillip Green, the company employs 4,270 people and with the market cap of USD $7.27B, it falls under the mid-cap group.
CFR’s ability to grow its earnings in the past at 20.70%, beating the banks industry’s growth of 8.33%, is what investors like to see. CFR has maintained a strong level of equity relative to its debt funding, resulting in a favorable asset-to-equity position, which is crucial for a financial firm. What’s more is, CFR’s profit levels are sufficient enough to reinvest and payout as dividends, which has also been steadily increasing over time. Interested in Cullen/Frost Bankers? Find out more here.
Hercules Capital, Inc. (NYSE:HTGC)
Hercules Capital, Inc., formerly known as Hercules Technology Growth Capital, Inc., is a business development company specializing in providing venture debt, debt, senior secured loans, and growth capital to privately held venture capital-backed companies at all stages of development from startups, to expansion stage including select publicly listed companies and select special opportunity lower middle market companies that require additional capital to fund acquisitions, recapitalizations and refinancing and established-stage companies. Started in 2003, and now run by Manuel Henriquez, the company currently employs 67 people and with the stock’s market cap sitting at USD $1.07B, it comes under the small-cap category.
HTGC’s earnings growth in the past year of 88.39%, surpassing its industry profit growth level of 14.56%, is an impressive feat for the company. In addition, HTGC is currently trading at a price-to-equity ratio of 11.52x relative to the industry ratio of 15.55x and market ratio of 18.34x, which means it is relatively cheaper than its peers. Continue research on Hercules Capital here.
PCM Fund Inc. (NYSE:PCM)
PCM Fund Inc. is a closed ended fixed income mutual fund launched and managed by Allianz Global Investors Fund Management LLC. PCM Fund was started in 1993 and with the market cap of USD $137.39M, it falls under the small-cap stocks category.
PCM’s previous bottom-line expansion of 29.79% in the prior year, surpassing its industry profit growth level of 14.56%, paints an buoyant picture for the company. PCM’s upcoming commitments are met by its short-term assets, and its total debt is well-covered by its cash flows, which indicates its strong financial position. Last but not least, PCM is currently trading below its true value in terms of its discounted cash flows, and its relative PE ratio compared to its industry, meaning those that are interested in the stock can buy it for cheap. Dig deeper into PCM Fund here.
For more fundamentally-robust companies with industry-beating characteristics to enhance your portfolio, explore this interactive list of big green snowflake stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.