Stock market growth is a steady and slow process. Investors must be in for the long-haul to see substantial growth. Two companies that broke away from the crowd and provided substantial growth and excitement among investors include: Kroger (KR) and UnitedHealth (UNH).
These two stocks have provided investors with returns that have nearly tripled in the past 5 years.
Since August 2011, Kroger’s stock is up 193%. When accounting for dividends, Kroger stock is up an impressive 217.5% in this time span. Kroger is a supermarket powerhouse that has flourished on private label products.
The stock has struggled in recent days due to a recall on the company’s Green Peas Product, which has expanded. The company’s supplier of Sunflower Products also issued a recall on May 21.
The company’s recent earnings report beat analyst expectations, with EPS rising 9.6% on the quarter up to $0.57 a share. The company’s revenue increased 3.8% year-over-year and expected growth of 2.5% – 3.5% for 2016.
United Health’s stock jumped 190% in the past five years, and 213% when accounting for dividends. The company’s biggest strength is that it has the largest market share, accounting for 13.9% of the total market in 2010.
The nearest competitor’s share was 8.3% at the time and has since receded even further.
Positive growth will be increased further this year thanks to the company’s purchase of Catamaran. The acquisition led to more than $10 billion in new business last week f or UnitedHealth’s OptumRX unit, according to a company spokesperson.
United Health purchased Catamaran in July 2015 for $12.8 billion. The company was later merged with OptumRx. OptumRx, a unit of UnitedHealth, posted $19.7 billion in revenue in Q1 2016, up 54% year-over-year. Earnings came in at $1.1 billion, up 49% year-over-year.
The company’s strong acquisitions and market share are good indicators of healthy growth in the immediate future for investors.