3 Stocks Growing Earnings Faster Than Sales

These companies have efficient operating activities

Summary
  • Iron Mountain Inc., Fair Isaac Corp and Western Alliance Bancorp are improving their profit margins.
  • This is an indication that their operating activities are very efficient.
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Investors may want to consider the following stocks, since they are growing earnings faster than sales, which may indicate efficient operating activities as profit margins expand along with growth.

Iron Mountain Inc.

The first stock value investors may want to consider is Iron Mountain Inc. (IRM, Financial), a Boston, Massachusetts-based global leader in the information management services industry.

On average, the company saw its trailing 12-month revenue per share increase by 0.60% and its trailing 12-month EPS increase by 20.90% every year over the last five years.

The stock closed at around $42.59 per share on Thursday for a market cap of $12.33 billion and a 52-week range of $29.77 to $53.14.

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The company pays quarterly dividends currently. The last payment, 61.9 cents per share, was issued on Jan. 6, generating trailing 12-month and forward dividend yields of 5.8% as of Jan. 20.

Wall Street sell-side analysts issued a median recommendation rating of overweight for this stock and have established an average target price of $47.57 per share.

Fair Isaac Corp

The second stock investors may want to consider is Fair Isaac Corp. (FICO, Financial), a Bozeman, Montana-based developer of software applications that businesses use to automate, enhance and connect financial decisions.

On average, the company saw its trailing 12-month revenue per share increase by 11.7% and its trailing 12-month EPS increase by 30.3% every year over the last five years.

The stock closed at around $430.97 per share on Thursday for a market cap of $11.79 billion and a 52-week range of $342.89 to $553.97.

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The company does not pay dividends currently.

Wall Street sell-side analysts issued a median recommendation rating of overweight for this stock and have established an average target price of $561.17 per share.

Western Alliance Bancorp

The third stock value investors may want to consider is Western Alliance Bancorp (WAL, Financial), a Phoenix, Arizona-based regional bank focusing on banking products and related services.

On average, the company saw its trailing 12-month revenue per share increase by 16.60% and its trailing 12-month EPS increase by 21.50% every year over the last five years.

The stock closed at around $112.90 per share on Thursday for a market capitalization of $11.76 billion and a 52-week range of $67.33 to $124.93.

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Currently, the company pays a quarterly dividend. The last payment, 35 cents per share, was issued on Dec. 3, 2021, leading to a trailing 12-month dividend yield of 1.09% and a forward dividend yield of 1.25% as of Jan. 20.

Wall Street sell-side analysts issued a median recommendation rating of buy for this stock and have established an average target price of $144.46 per share.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure