Welcome to Extreme Investor Network, where we provide you with unique and valuable insights on investing in the stock market. As we enter earnings season, investors are on the lookout for companies that have demonstrated consistent revenue growth over the years.
According to Jefferies’ global head of quantitative strategy, Desh Peramunetilleke, there are certain stocks that have shown steady revenue growth for the past one to two decades. To identify these companies, Jefferies screened all nonfinance stocks in the U.S. with a market cap above $5 billion that meet specific criteria such as a 10-year and 20-year sales growth of more than 8% per year, compound annual growth of more than 8% for sales in 2024 and 2025, positive sales growth in at least 14 of the past 15 years, and a coefficient of variation on the 15-year sales growth of less than one times.
Among the 10 stocks that meet these criteria, Alphabet stands out as it is set to report earnings after the bell on Tuesday. The megacap tech stock has seen a strong year with a 31% increase in valuation compared to the start of 2024. Analysts are expecting stable cloud growth and positive use of generative artificial intelligence in the earnings report.
Food chains Wingstop and Texas Roadhouse also made the list of companies with consistent revenue growth. Despite significant rallies this year, analysts caution that pressure on lower-end customers could pose challenges for the industry. However, both stocks have buy ratings from analysts, with potential upside for investors.
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