The highest-performing stocks usually show strong sales growth, regardless of valuation multiples or if the company is even profitable. Optimism and hype can drive share prices very high, but high growth isn’t exclusive to just tech stocks.
Below I have a list of three different stocks that are in different industries and all have experienced tremendous growth in the past few years.
Seven Generations Energy Ltd. (TSX:VII) has only been listed on the TSX for fewer than three years, and since then the stock price has dropped by 16%. The natural gas developer has grown its revenues to over $1.2 billion for 2016 — about 12 times the $105 million in sales it recorded in 2013 and more than double last year’s tally of $534 million. In its most recent quarter, the company continued to show strong growth with revenues of $496 million, up over 62% year over year.
Seven Generations has shown excellent growth so far, and for 2017 it has a capital-investment program totaling between $1.5 and $1.6 billion, which will help improve efficiency and create even more growth opportunities for the company. This is a stock that has tremendous upside, and with its share price dropping over 34% in the past 12 months, it could be an excellent value investment with a price-to-book value of just 1.58.
Stars Group Inc. (TSX:TSGI)(NASDAQ:TSG) is another stock that has done very well growing revenue in the past few years, mainly due to with the acquisition of the PokerStars brand, which has propelled the company in both the gaming and entertainment industries. In 2016, Stars Group recorded revenues of $1.1 billion, which were up 7% from 2015 and have grown from just $116 million in 2013. The company has already seen tremendous growth and may not be able to duplicate the same explosive growth it had when it acquired PokerStars, but its upward trajectory remains intact.
In its most recent quarter, the company’s revenues of $305 million were up 7% from 2016, and, even more importantly, profits of $70 million were more than triple the $22 million Stars Group netted last year. The encouraging sign for the company is that in its latest quarter, Stars Group saw a 50% increase in its casino and sportsbook revenues, and poker sales didn’t need to carry the company’s growth.
Summit Industrial Income REIT (TSX: SMU.UN) manages over 60 properties in Canada, the majority of which are in Ontario and Quebec. Summit Industrial focuses on light industrial properties that are located near cities, and by managing warehouses, the company avoids the trouble of dealing with multiple tenants the way an office or retail REIT may have to. The stock has traded for fewer than four years, and in that time it’s provided investors with returns of over 25%. In addition, the company pays a generous dividend of 7% per year which is paid on a monthly basis.
Summit Industrial has also achieved considerable growth as revenues of $45 million for 2016 were up 17% year over year. Since 2013, the company’s revenues have more than doubled with net income following suit. Over the past four years, the company has averaged an incredible profit margin of over 43%. Summit Industrial shows no signs of slowing down; in its most recent quarter, the company continued to show strong year-over-year growth with sales rising over 31%.
