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A Trio of Strong Performers Set to Move Higher

Shares of SAP SE (NYSE:SAP), ICICI Bank Limited (NYSE:IBN) and Aptiv PLC (NYSE:APTV) have performed strongly so far this year and over the past several years, beating the S&P 500 index (the benchmark for U.S.-listed stocks) in the observed period.

The S&P 500 index increased by 27.2% year to date, by 25.4% in the past 12 months and by about 41% in the last three years through Dec. 16.


Shareholders can expect that share prices of these large-cap stocks will continue to move higher as their main catalyst, which is represented by profitable operations, will most likely still work for several years to come. GuruFocus rated the profitability of the following three stocks with positive scores.

Further, Wall Street sell-side analysts have also released positive recommendation ratings that fall in the range of overweight to buy for these stocks underpinning expectations for higher valuations.

SAP SE

Shares of SAP SE have gained 40% so far this year, 39.3% over the last 52 weeks and 64% over the past three years through Dec. 16, beating the S&P 500 by nearly 13%, nearly 14% and 23%, respectively.

The German software application company has covered the observed periods with the payment of annual dividends. Actually, SAP SE is distributing a portion of yearly not retain earnings to its shareholders for 24 years.

The last annual dividend of $1.674 per common share was paid on May 28 earlier this year which generates a 1.2% dividend as of Monday 's closing price of $139.39. The stock has a market capitalization of $171.24 billion.

GuruFocus assigned a positive rating of 6 out of 10 for the company's financial strength and a very high rating of 9 out of 10 for its profitability.

Regarding profitability, SAP has a net profit margin of 12.58% versus the industry median of 2.5%. The company's net margin is ranked higher than 1,740 out of a total of 2,096 companies operating in the Software-Application industry.

The stock has a price-earnings ratio of 44.07, a price-sales ratio of 5.53 and a price-book ratio of 4.94. These ratios, together with below Peter Lynch chart, suggest that this stock is not cheap.

Sell-side analysts issued an overweight recommendation rating for American Depositary Receipts of SAP SE with an average target price of $149.91 per unit.

ICICI Bank

Shares of ICICI Bank Limited have risen 47.6% year to date, 47.9% over the last 12 months and 122.7% over the past three years through Dec. 16, beating the S&P 500 by 20.4%, 22.5% and 81.7%, respectively.

The Mumbai, India-based regional bank also paid annual dividends over the periods in question. The company is paying annual dividends since June 2001.

In July earlier this year, ICICI Bank paid a 2.9 cents annual cash dividend per common share to its shareholders, which produces a dividend yield of 0.19% based on Monday's closing share price of $15.19 for a market capitalization of $49.12 billion.

GuruFocus rated the company's financial strength with a low score of 2 out of 10, but with a positive score of 5 out of 10 for its profitability.

With regard to profitability, ICICI Bank Limited shows an impressive 3-Year Revenue Growth Rate of 10.5% topping 1,045 out of a total of 1,332 financial companies operating in the Banks industry.

The stock has a price-earnings ratio of 58.68, a price-sales ratio of 4.69 and a price-book ratio of 2.97. These ratios, along with the Peter Lynch chart, suggest that the stock is not cheap.

Wall Street sell-side analysts recommend a buy rating for shares of ICICI Bank Limited with an average target price of $16.22 per unit.

Aptiv PLC

Shares of Aptiv PLC have risen 54.2% year to date, 49.8% over the last 12 months and 66.5% over the past three years through Dec. 16, beating the S&P 500 by 27%, 24.4% and 25.5%, respectively.

The Irish global manufacturer of auto parts and provider of tech solutions to the automotive and commercial vehicle markets has paid quarterly dividends over the observed periods. Actually, Aptiv PLC has been paying dividends since March 2013.

On Nov. 20, Aptiv paid a 22 cents quarterly cash dividend per common share to its shareholders, which produces a dividend yield of 0.93% based on the share price of $94.96 at close on Monday for a market cap of $24.24 billion.

GuruFocus assigned a positive rating of 5 out of 10 for the company's financial strength and a very high 8 out of 10 rating for its profitability.

The company has a net profit margin of 6.99% versus the industry median of 2.94%. The company's net profit margin is ranked higher than 859 out of a total of 1,114 competitors that operate in the Vehicles & Parts industry.

The stock has a price-earnings ratio of 24.39, a price-sales ratio of 1.71 and a price-book ratio of 6.81. These ratios, together with the Peter Lynch chart, suggest that the stock is not cheap.

Wall Street sell-side analysts issued an overweight recommendation rating for shares of Aptiv PLC with an average target price of $99.91 per unit.


Disclosure: I have no positions in any securities mentioned.

This article first appeared on GuruFocus.