11 companies spending money to make money Cheap Michael Kors Outlet
Investors might complain about it, but they know companies must spend money
to make money. And get this. The companies increasing spending on upgrading
equipment and facilities are actually investors favorites.
There are 11 companies in the Standard Poor 500, including single cup coffee
brewer Keurig Green Mountain (GMCR), airline Southwest (LUV) and drugmaker Eli
Lilly (LLY) that not only spent 5% or more of revenue on capital expenditures
the past 12 months, but also increased their investments relative to revenue by
50% or more in the most recent quarter, according to a USA TODAY analysis of
data from S Capital IQ. Capital expenditures are cash investments made to
improve or upgrade their equipment or facilities. Financials, utilities and
energy companies were excluded from the analysis.
These 11 stocks are up 34% on average over the past twelve months, which is
more than twice the 15% gain of the S 500 during that time. The data show
thatthough investors might bellyache when companies spend money to plow their
businesses, the stocks aren punished, but in fact, outperform at least lately.
Below is Wholesale Cheap Sunglasses a custom
equal weighted index of the stocks that boosted their capital expenditures
compared with the S 500.
Take the example of Southwest Airlines. The company spending on capital
expenditures in the second quarter reached nearly 10% of its revenue. That up
140% from the 4.2% of revenue it spent on capital expenditures in the second
quarter of 2013. That even greater than the 5% of revenue that rival Delta Air
Lines (DAL) plowed into capital expenditures in the second quarter. But even
with that massive increase in investment, shares of the stock are up 108% over
the past 12 months, even better than Delta 78% gain. Southwest this year
through June has spent $907 million in capital expenditures on everything from
new aircraft to slots at Ronald Reagan Washington National Airport.
Over at Keurig Green Mountain, the company boosted its vibram five fingers outlet capital
expenditures at a percentage of revenue by 132% in the second quarter. Capital
expenditures were more than 10% of revenue during the quarter. Even so, the
stock is up 48% over the past 12 months. The company said its capital
expenditures were primarily targeted on boosting its packaging capabilities for
Keurig beverage products, corporate facilities, computer technology systems and
on new product areas.
That not to say that investors have universally applauded companies for
boosting their capital spending relative to sales. Construction supply company
Fastenal (FAST) boosted its capital expenditures as a percentage of revenue by
57% in the second quarter. Even so, the stock is down 6.3% during the past
twelve months. It the only stock out of the 11 in the analysis to fall,
Below are the 11 companies that have spent 5% or more of revenue on capital
expenditures the past 12 months that also increased capital expenditures as a
percentage of revenue by the most in the second calendar quarter: