S Portfolio Highlights: Movers And Shakers - December 2021

During the past three months, the S&P 500 index continued its steady march higher with a 4.2% gain thanks to the strong economic recovery from the pandemic. All the following high-quality stocks generated strong double-digit gains during the same time period.

two person standing on gray tile paving


Tractor Supply Plowing Up Strong Growth

Tractor Supply (TSCO) reported third quarter sales increased 15.8% to $3.02 billion with net income plowing ahead 17.7% to $224.4 million and EPS increasing 20.4% to $1.95. Year-to-date, Tractor Supply returned $777.8 million to shareholders through dividends and share repurchases. Despite unprecedented pressures across the company’s supply chain, management raised their fiscal 2021 outlook. The company now expects net sales of $12.6 billion, 16% comparable store sales growth, net income in the range of $972 to $985 million and EPS in the range of $8.40 to $8.50. In addition, the company expects to repurchase $750 to $800 million of its common stock. In the last four years, Tractor Supply has plowed up strong growth with a 254% total return. Hold.

Gentex Cash-rich And Debt-free

Gentex (GNTX) reported third quarter net sales dropped 19% to $399.6 million with EPS decreasing 50% to $.32. Despite the incredibly turbulent past 18 months in the auto industry and continued challenging supply chain constraints, Gentex’s long-term growth prospects remain very strong. The company maintains a sturdy balance sheet with more than $482 million in cash and investments and no long-term debt. Over the last six years, Gentex has driven up a shiny 140% total return. Hold.

Canadian National New C$5 Billion Buyback

Canadian National Railway (CNI) reported third quarter revenues chugged ahead 5% to C$3.6 billion with net income roaring more than 70% higher to C$1.69 billion. The earnings included a C$886 million payment by Kansas City Southern to CNI after they terminated their merger. Adjusted EPS increased 10% to C$1.52. Canadian National resumed its share repurchase program with plans to repurchase C$5 billion in 2022. Over the last six years, CNI’s stock has rolled 123% higher. Hold.

F5 Networks $500 Million Buyback

F5 Networks (FFIV) reported fiscal 2021 revenues increased 11% to $2.35 billion with net income increasing 8% to $331.2 million. In fiscal 2022, F5 expects to deliver revenue growth of 8% to 9%, including software revenue growth of 35% to 40%. During fiscal 2022, F5 expects to repurchase $500 million of its shares. Beginning in fiscal 2023, F5 intends to return 50% of free cash flow to shareholders through share repurchases. F5’s stock whirled up a 90% gain during the past six years. Hold.

ADP Increased Dividend 12%

ADP reported fiscal first quarter sales increased 10% to $3.8 billion with EPS up 18% to $1.65, reflecting improving demand across all business segments. The company increased its dividend a hefty 12%, marking the 47th consecutive year of dividend increases. In the last five years, Automatic Data Processing’s (ADP) stock has processed a 178% gain. Hold.

FactSet 41 Years Of Record Sales

FactSet (FDS) reported fiscal 2021 revenues rose 6.5% to nearly $1.6 billion with net income and EPS each up 7% to $399.6 million and $10.36, respectively. FactSet has reported 41 consecutive years of record revenues. Return on shareholders’ equity for fiscal 2021 was a superb 39%. For fiscal 2022, EPS is expected in the range of $11.60- $11.90, representing 11% to 15% growth. It is a fact that FactSet’s stock has been a winner with a 359% total return over the last seven years. Hold.

Microsoft New $60 Billion Buyback

Microsoft (MSFT) reported first quarter revenue increased 22% to $45.3 billion with net income jumping 48% to $20.5 billion. Microsoft announced an 11% increase in its dividend, marking the 12th consecutive year of dividend increases. Microsoft also approved a new share repurchase program authorizing up to $60 billion in share repurchases. Microsoft’s stock is up more than twelvefold in the last 11 years. Hold.

Accenture Strong Free Cash Flow

Accenture (ACN) reported fiscal 2021 revenues rose 14% to a record $50.5 billion with net income increasing 15% to $5.99 billion. Free cash flow increased 11% during the year to $8.4 billion. For fiscal 2022, Accenture expects continued double-digit growth in sales and earnings per share. With expected free cash flow in the range of $7.5 billion to $8.0 billion, Accenture plans to return at least $6.3 billion to investors through dividends and share buybacks. Over the last nine years, Accenture has booked a terrific 557% total return. Hold.

Disclaimer: Copying, reproduction or quotation is strictly prohibited without written permission. Information presented here was obtained from sources believed to be reliable but accuracy and ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.