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These Stocks' Sales Have Been Growing Fast

Growing sales is an important catalyst to the share prices of U.S. publicly-traded companies.

The S&P 500's total sales grew 4.3% in the past five years, pushing the share price up 59.6% to $ 3,265.35 at close on Jan. 10.

The following stocks have beaten the benchmark for U.S. stocks in terms of a higher sales growth in the observed time period, delivering large share price returns in the range of 120% to 180%.


We are aware that the past is no guarantee for future performance, but stocks that have already demonstrated the ability to grow their sales at a higher speed than the U.S. market averages have a good foundation to continue producing a positive impact on their market valuations.

Wall Street sell-side analysts have also issued recommendation ratings for these stocks that range between hold and buy.

Diodes

The first company to have a look at is Diodes Incorporated (NASDAQ:DIOD).

The Plano, Texas-based semiconductors company has grown its total revenue by 7.5% in the past five years, resulting in a nearly 120% rise in the share price.

The stock closed at $57.62 on Jan. 10 for a market capitalization of $2.94 billion, a price-earnings ratio of 21.91 and a price-sales ratio of 2.35.

According to the Peter Lynch chart, this stock may not be trading at its cheapest.

As of January, four out of five Wall Street sell-side analysts recommend holding this stock while one suggests a buy rating. The average target price is $54.67.

GuruFocus assigned the company a high financial strength rating of 8 out of 10 and a very positive profitability rating of 7 out of 10.

Cutera

The second company to have a look at is Cutera Inc (NASDAQ:CUTR).

The Brisbane, California-based developer and manufacturer of laser and other energy-based aesthetic systems has grown its total revenue by 19.1% in the past five years, causing the share price to go up by 178.2%.

The stock traded at a price of $36.67 per share at close on Jan. 10 for a market capitalization of $521.95 million, a price-book ratio of 11.84 and a price-sales ratio of 2.95.

The Peter Lynch chart indicates that the stock is currently not trading cheaply.

As of January, three analysts out of a total of four recommend buying this stock and one recommends a hold rating. The average target price of $38.67 reflects a 55% upside.

GuruFocus assigned the company a positive financial strength rating of 6 out of 10 but a low profitability rating of 3 out of 10.

KLA

The third company to have a look at is KLA Corporation (NASDAQ:KLAC).

Based in Milpitas, California, KLA provides global semiconductor and nanoelectronics companies with process control and yield management solutions. The stock has increased its total revenue by 10.4% in the past five years, causing a 164% rise in the share price.

The stock closed at a price of $173.01 on Jan. 10 with a market capitalization of $27.3 billion, a price-earnings ratio of 24.16 and a price-sales ratio of 5.6.

The Peter Lynch chart shows that the share price might be not at its cheapest.

As of January, six analysts out of a total of 14 recommend buying this stock and seven recommend a hold rating. The average target price of $189.87 implies a nearly 10% upside.

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

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This article first appeared on GuruFocus.