I was looking at how the different stock sectors were doing earlier and noticed that while there are certainly some that are thriving, not as many seemed to particularly stick out.
When that happens, I’ll typically seek out stocks with common characteristics rather than the industry they participate in. Dividend stocks are the easiest example of this. Sometimes, I like to think about undervalued stocks, stocks that are down year-to-date, and even stocks with low market volatility.
Well, in today’s case, I’ve gravitated toward stocks that boast some of the highest 30-year gains. That shows us two things: They have longevity, and they’ve been extraordinarily profitable in that time period.
Stocks with both long histories on Wall Street and excellent growth trajectories during said histories are usually pretty good to keep on our radar, at the very least…
Pool Corp (POOL)
Pool Corp. (POOL) has the distinction of being the world’s largest distributor of wholesale swimming pool supplies, equipment, and associated outdoor recreation products. Since POOL’s 1995 arrival, it has shown an astounding total return of 57,251%, showcasing an impressive average yearly gain of 25.7%. POOL’s performance and safety contrast with many stocks with some low momentum as of late, demonstrating its vitality. Over the past five years, POOL’s remarkable total return of 135.3% has significantly surpassed that of the S&P 500. A hypothetical $10,000 investment in POOL in 1995 would now command a value of around $5.7 million. For value-oriented investors, POOL’s consistent growth over time, its niche market leadership, and its handsome dividend are all reasons to give it a fair look.
POOL’s stock is currently up by 20.98% year-to-date, is trading around the middle of its existing 52-week high-low, has a positive 20/200 day SMA (simple moving average), a 44.11% ROE (return on equity), a 0.98 beta score, and TTM (trailing twelve-month) momentum growth of 8.27%. For the current fiscal quarter, POOL is expected to report $1.6 billion in sales at $4.30 per share, with a projected 35% 3-5 year EPS growth rate; it’s penciled in to report said earnings on October 19th. POOL has an annual dividend yield of 1.20% and a quarterly rate of $1.10 ($4.40/year) per share. With a 10-day average trading volume of roughly 277 thousand shares, POOL has an average price target of $390, with a high of $432 and a low of $315; this suggests a potential price upside of over 18% from its current trading position.
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Altria Group Inc (MO)
Tobacco behemoth Altria Group Inc. (MO) might be an unexpected star in the market’s last 30 years, or you may not like tobacco. Regardless, MO began defying expectations after its debut in July of 1985 by accruing an impressive 60,589% since that time, a 23.8% average annual return. Despite enduring significant public relations and regulatory challenges impacting the sector, MO has maintained its upward trajectory. A theoretical $10,000 investment in MO’s stocks in 1993 would now stand at approximately $6.1 million. MO’s history of robust gains and dividend payments gives the stock proper intrigue.
MO is down year-to-date by 3.28%, carries a beta of 0.62, has a 2.14x PEG (price/earnings to growth) ratio, has an operating free cash flow of $8.8 billion, and TTM asset and momentum growth rates of 1.10% and 5.25%, respectively. At its Q2 2023 earnings call, MO reported EPS of $1.31 per share, beating analysts’
projections by 1 cent, or 0.77%; during the same time, it posted year-over-year revenue growth (+4.21%), net income (+137.6%), EPS (+142.86%), and net profit margin (+127.49%). MO has an 8.86% annual dividend yield, a quarterly payout of 98 cents ($3.92/year) per share, and a generous 98.95% payout ratio. With a 10-day average volume of 6.72 million shares, MO has a median price target of $49, with a high of $70 and a low of $37, representing a potential price leap of more than 58% from its current spot.
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Monster Beverage Corp (MNST)
Seemingly unnoticed on Wall Street, Monster Beverage (MNST) has become a standout investment since its 1990 inception, bringing an impressive total return of 191,852% over three decades. A 2015 partnership with Coca-Cola, in which MNST acquired a 16.7% stake, boosted growth. With a notable average yearly return of 31%, a $10,000 investment in 1993 would now be valued at around $19.2 million. MNST may not pay dividends, but its enduring success and strategic collaborations make it an enticing option.
Up currently year-to-date by 13.11%, MNST has a volatility-safe 0.83 beta score, a positive 20/200 day SMA, a positive ROE of 19.59%, a free cash flow of roughly $1 billion, and an incredibly low D/E (debt to equity) measure of 0.05%. For Q2 2023, MNST reported year-over-year growth in crucial areas such as revenue (+12.06%), net income (+51.4%), EPS (+50%), and net profit margin (+35.13%). For the current fiscal quarter, MNST is projected to report $1.9 billion in sales at $0.40 per share, with a 3-5 year EPS growth rate of 7.3%; it’s slated to report again on November 9th. With a 10-day average volume of 3.35 million shares, MNST has an average price target of $63, with a high of $72 and a low of $57; this indicates the possibility of a price jump of over 25% from where it currently trades.
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