(VIANEWS) – Newtek Business Services Corp. (NEWT), Medpace Holdings (MEDP), Flowserve Corporation (FLS) are the highest sales growth and return on equity stocks on this list.
Here is a list of stocks with an above 5% expected next quarter sales growth, and a 3% or higher return on equity. May these stocks be a good medium-term investment option?
1. Newtek Business Services Corp. (NEWT)
47.2% sales growth and 8.51% return on equity
Newtek Business Services Corp. is a business development company specializing in providing financial and business services to the small-and medium-sized business market in the United States. The firm also seeks to invest in early stage businesses. The firm seeks to makes both debt and equity investments. Under debt investments, it focuses on first lien loans, which have terms of 1 to 25 years; second lien loans, which have terms of 5 to 25 years, and unsecured loans, which are provided to meet short-term funding needs and are repaid within 6 to 12 months. It operates through Electronic Payment Processing, Managed Technology Solutions, Small Business Finance, and Capcos segments. The company originates small business administration loans for the purpose of acquiring commercial real estate, machinery, equipment, and inventory, as well as to refinance debt and fund franchises, working capital, and business acquisitions; and offers small business loan servicing and consulting services to the Federal Deposit Insurance Corporation and various other financial institutions, as well as provides management services. Its electronic payment processing services include credit and debit card processing, check approval, ancillary processing equipment and software to merchants, eCommerce, electronic solutions to accept non-cash payments, check conversion, remote deposit capture, ACH processing, and electronic gift and loyalty card programs. The company also provides Website hosting, dedicated server, and cloud hosting services; Web design and development; Internet marketing; data storage and backup and other related services; and ecommerce services, such as payment processing, online shopping cart tools, Website design and Web related services; Accounts Receivable Financing, and The Secure Gateway. In addition, it offers Newtek Advantage, a mobile, real-time operating platform enabling a business to access data on a smartphone, tablet, laptop, or PC for eCommerce, credit/debit transactions, Website statistics, payroll, insurance, and business loans. Further, the company sells personal, commercial, and health/benefits lines of insurance products; and payroll management processing and employee tax filing services. It has strategic alliances with American International Group, CTAA, Navy Federal Credit Union, Credit Union National Association, Pershing, and others to provide agent services to small business clients. The firm seeks to invest in New York and Louisiana area. The firm seeks to invest $0.3 million to $3 million in businesses. It provides small business terms loans ranging from $0.05 million to $10 million. The firm also provides account receivable financing ranging from $0.05 million to $1.5 million. It also provides $0.05 million to $10 million financing to owner occupied real estate businesses whose average net income over the last 2 years must not exceed $2.5 million. Newtek Business Services Corp., formerly known as Newtek Business Services Inc., was incorporated on August 26, 2013 and is headquartered in Boca Raton, Florida with additional offices in Lake Success, New York, Garden City, New York; Miami, Florida; Milwaukee, Wisconsin; New Orleans, Louisiana; and New York, New York.
Earnings Per Share
As for profitability, Newtek Business Services Corp. has a trailing twelve months EPS of $1.01.
PE Ratio
Newtek Business Services Corp. has a trailing twelve months price to earnings ratio of 12.99. Meaning, the purchaser of the share is investing $12.99 for every dollar of annual earnings.
The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 8.51%.
2. Medpace Holdings (MEDP)
25.4% sales growth and 66.57% return on equity
Medpace Holdings, Inc. provides clinical research-based drug and medical device development services in North America, Europe, and Asia. It offers a suite of services supporting the clinical development process from Phase I to Phase IV in various therapeutic areas. The company also provides clinical development services to the pharmaceutical, biotechnology, and medical device industries; and development plan design, coordinated central laboratory, project management, regulatory affairs, clinical monitoring, data management and analysis, pharmacovigilance new drug application submissions, and post-marketing clinical support services. In addition, it offers bio-analytical laboratory services, clinical human pharmacology, imaging services, and electrocardiography reading support for clinical trials. Medpace Holdings, Inc. was founded in 1992 and is based in Cincinnati, Ohio.
Earnings Per Share
As for profitability, Medpace Holdings has a trailing twelve months EPS of $8.53.
PE Ratio
Medpace Holdings has a trailing twelve months price to earnings ratio of 32.1. Meaning, the purchaser of the share is investing $32.1 for every dollar of annual earnings.
The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 66.57%.
Revenue Growth
Year-on-year quarterly revenue growth grew by 28.3%, now sitting on 1.78B for the twelve trailing months.
Moving Average
Medpace Holdings’s value is above its 50-day moving average of $254.77 and way above its 200-day moving average of $227.36.
Previous days news about Medpace Holdings(MEDP)
- According to Zacks on Thursday, 23 November, "Amphastar Pharmaceuticals presently sports a Zacks Rank #1 (Strong Buy), while Atai Life Sciences and Medpace Holdings carry a Zacks Rank #2. ", "The bottom line of Medpace Holdings outpaced estimates in each of the last four quarters, the average surprise being 14.6%. "
3. Flowserve Corporation (FLS)
15.6% sales growth and 14.57% return on equity
Flowserve Corporation designs, develops, manufactures, distributes, and services industrial flow management equipment in the United States, Europe, the Middle East, Africa, Asia, and internationally. It operates in two segments, Flowserve Pump Division (FPD) and Flow Control Division (FCD). The FPD segment offers custom and pre-configured pumps and pump systems, mechanical seals, auxiliary systems, replacement parts, upgrades, and related aftermarket services, including installation and commissioning services, seal systems spare parts, repairs, advanced diagnostics, re-rate and upgrade solutions, retrofit programs, and machining and asset management solutions, as well as manufactures a gas-lubricated mechanical seal for use in high-speed compressors for gas pipelines. The FCD segment provides engineered and industrial valve and automation solutions, including isolation and control valves, actuation, controls, and related equipment, as well as equipment maintenance services for flow control systems, including advanced diagnostics, repair, installation, commissioning, retrofit programs, and field machining capabilities. This segment's products are used to control, direct, and manage the flow of liquids, gases, and fluids. The company primarily serves oil and gas, chemical and pharmaceuticals, power generation, and water management markets, as well as general industries, including mining and ore processing, pulp and paper, food and beverage, and other smaller applications. The company distributes its products through direct sales, distributors, and sales representatives. Flowserve Corporation was incorporated in 1912 and is headquartered in Irving, Texas.
Earnings Per Share
As for profitability, Flowserve Corporation has a trailing twelve months EPS of $1.87.
PE Ratio
Flowserve Corporation has a trailing twelve months price to earnings ratio of 20.7. Meaning, the purchaser of the share is investing $20.7 for every dollar of annual earnings.
The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 14.57%.
Revenue Growth
Year-on-year quarterly revenue growth grew by 25.4%, now sitting on 4.19B for the twelve trailing months.
Moving Average
Flowserve Corporation’s value is above its 50-day moving average of $38.31 and above its 200-day moving average of $36.18.
4. StoneCo (STNE)
15.3% sales growth and 6.13% return on equity
StoneCo Ltd. provides financial technology and software solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. It distributes its solutions, principally through proprietary Stone Hubs, which offer hyper-local sales and services; and sells solutions to brick-and-mortar and digital merchants through sales team. The company served approximately 2.6 million clients primarily small-and-medium-sized businesses; and marketplaces, e-commerce platforms, and integrated software vendors. StoneCo Ltd. was founded in 2000 and is headquartered in George Town, the Cayman Islands.
Earnings Per Share
As for profitability, StoneCo has a trailing twelve months EPS of $0.64.
PE Ratio
StoneCo has a trailing twelve months price to earnings ratio of 22.17. Meaning, the purchaser of the share is investing $22.17 for every dollar of annual earnings.
The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 6.13%.
Sales Growth
StoneCo’s sales growth is 26.9% for the ongoing quarter and 15.3% for the next.
Moving Average
StoneCo’s value is way above its 50-day moving average of $10.94 and way above its 200-day moving average of $11.39.
5. Essent Group Ltd. (ESNT)
15% sales growth and 14.69% return on equity
Essent Group Ltd., through its subsidiaries, provides private mortgage insurance and reinsurance for mortgages secured by residential properties located in the United States. Its mortgage insurance products include primary, pool, and master policy. The company also provides information technology maintenance and development services; customer support-related services; underwriting consulting; and contract underwriting services. It serves the originators of residential mortgage loans, such as regulated depository institutions, mortgage banks, credit unions, and other lenders. The company was founded in 2008 and is based in Hamilton, Bermuda.
Earnings Per Share
As for profitability, Essent Group Ltd. has a trailing twelve months EPS of $6.23.
PE Ratio
Essent Group Ltd. has a trailing twelve months price to earnings ratio of 7.95. Meaning, the purchaser of the share is investing $7.95 for every dollar of annual earnings.
The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 14.69%.
Sales Growth
Essent Group Ltd.’s sales growth is 25.9% for the current quarter and 15% for the next.
Dividend Yield
As maintained by Morningstar, Inc., the next dividend payment is on Nov 29, 2023, the estimated forward annual dividend rate is 1 and the estimated forward annual dividend yield is 2.07%.
Moving Average
Essent Group Ltd.’s value is above its 50-day moving average of $48.19 and above its 200-day moving average of $45.65.
Earnings Before Interest, Taxes, Depreciation, and Amortization
Essent Group Ltd.’s EBITDA is 5.16.
