A trio of stocks with rapid sales growth

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Sales are the first line of a company's income statement and are a very important catalyst for US stock prices.

Over the past five years, 4.4% sales growth has increased the S&P 500 index price by 58.2% to $ 3,234.85 at the close on January 3.

The following stocks have outperformed the benchmark for the US market in terms of higher sales growth over the period and have high returns ranging from 50% to 200%.

The past is no guarantee of future performance as sales have already increased significantly. However, the following companies have the potential to continue to do so in the coming years, with positive effects on their market values ​​that are likely to arouse investor interest.

In addition, analysts are positive about the following positions because they have published optimistic recommendation ratings.

Here are some of the results of my research.

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The first company to look at it is UnitedHealth Group Inc. (NYSE: UNH).

The diversified healthcare company, headquartered in Minnetonka, Minnesota, has increased its total sales by almost 14% in the past five years and has seen a share price increase of 192.7%.

The stock closed at $ 289.54 on Friday for a market cap of $ 274.31 billion, a price-earnings ratio of $ 21.06 and a price-to-earnings ratio of $ 1.18.

Peter Lynch tells us that this stock may not be trading at the cheapest price.

However, Wall Street sell-side analysts recommend buying UnitedHealth Group shares and have set an average price target of $ 311.64 to be achieved within 12 months.

GuruFocus also rated financial strength as 6 out of 10 and profitability as 9 out of 10 as very high.

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The second company to consider is eBay Inc. (NASDAQ: EBAY).

The San Jose, California-based e-commerce platform operator has increased its total revenue by 5.2% in the last five years and noted a 55.3% increase in the share price.

The share closed on Friday at $ 35.96 per share, with a market capitalization of $ 29.25 billion, a price-earnings ratio of $ 16.35 and a price-to-earnings ratio of $ 2.95.

The stock appears to be trading near its fair value, as can be seen from Peter Lynch's chart.

However, Wall Street sell-side analysts recommend keeping eBay holdings, and have set an average price target of $ 40.03 to be achieved within 12 months. This corresponds to growth of 11.3%.

GuruFocus also rated the financial strength as moderate with 4 out of 10 points and the profitability with 8 out of 10 points.

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The third company in question is Arthur J. Gallagher & Co. (NYSE: AJG).

The Rolling Meadows, an Illinois-based provider of third party insurance brokerage and claims settlement services, has increased its total revenue by almost 15% in the past five years, pushing the stock price up 104.5%.

At the close on Friday, the share was trading at around $ 95.31. This resulted in a market capitalization of $ 17.78 billion, a price-earnings ratio of $ 26.18 and a price-to-sales ratio of $ 2.55.

The Peter Lynch chart shows that the stock is not currently trading cheaply.

Still, Wall Street sell-side analysts suggest buying Arthur J. Gallagher because they gave an overweight recommendation rating with an average price target of $ 99. The overweight recommendation rating means that this stock is likely to outperform the majority of its competitors or even the overall market. The average price target implies an increase of almost 4% compared to the closing price on Friday.

Disclosure: I have no positions in the securities mentioned in this article.

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