These 3 stocks have doubled over the past 3 years. Can they start over?

Carlisle Enterprises (CSL -4.37%), Innovative industrial properties (IIPR -5.82%) and AbbVie (ABVV -1.52%) have all seen their shares double in the past three years. All three have the potential to double their shares again over the next three years due to their stability, steady earnings growth and attractive dividends.

On top of that, none of them are overvalued, with all trading below three times earnings. So while their stocks may occasionally fall, they probably won’t fall too far.

Image source: Getty Images.

1. Carlisle Companies: Moving forward quietly

Carlisle Companies was trading at $105.07 just over two years ago. Today, its shares are worth around $245 each, and they are up more than 25% over the past year.

Carlisle has its own integrated diversity of sales, as it is four companies under one banner: Carlisle Construction Materials, Carlisle Waterproofing Technologies, Carlisle Interconnect Technologies and Carlisle Fluid Technologies. These companies manufacture and supply engineering materials for use by original manufacturers. Because Carlisle sells to businesses, it’s lesser known to average consumers, but it brought in $4.8 billion in revenue last year and plans to grow its annual revenue to $8 billion by 2025.

Carlisle just posted record first-quarter revenue of $1.5 billion, up 59% year-over-year. Earnings per share (EPS) was $3.67, an increase of 209% over the prior year. It also improved its operating margin to 18.5% in the first quarter from 9% in the same quarter last year.

While all of its businesses performed well, Carlisle Waterproofing Technologies was the main driver, with revenue of $359.1 million, up 120.4% from the same period in 2021, and profit of of $37.5 million, up 253.8% year-over-year. The company said the reason for the increase is the company’s $1.6 billion acquisition last September of the Henry Company, which provides building systems that control the flow of water, steam and heat. energy, serving construction and repair projects in the residential, light commercial and commercial sectors. end markets.

Carlisle has increased its dividend every year for 45 years, including a 3% increase last year to $0.54 per share, which equates to a yield of 0.87%. It’s not exactly splashy but perfectly safe, as the company’s annual cash dividend payout rate is 39.21%.

2. Innovative Industrial Real Estate continues to grow

Innovative Industrial Properties was below $60 per share in March 2020. At the start of this week, it was trading at $133 per share, and that’s after falling more than 49% this year. Innovative, as the first and largest real estate investment trust (REIT) to work exclusively on lease buyouts with cannabis companies, took a hit to its stock as its tenant shares fell, but the company’s business model appears solid.

It’s no exaggeration to say that the company’s shares could be trading at double what they are today, as they were trading at just under $280 per share last November. In the meantime, the company’s finances have remained strong, even as investor confidence in the stock has plummeted.

In the first quarter, Innovative reported revenue of $64.5 million, up 50% year-over-year, while EPS was $1.32, compared to $1.05 at the same period in 2021. More significantly for a REIT, its funds from operations (FFO) was $48.9 million. , with an FFO per share of $1.86, compared to $34.4 million and $1.39 in the first quarter of 2021.

The company increased its first quarter dividend by 17% to $1.75 per share, representing a yield of 5.26%. The company has increased its dividend by 68% over the past three years, but its adjusted FFO payout ratio of 79% is considered safe, especially for a REIT.

IIPR posted stronger growth than a typical REIT as it was vigorous in adding new properties. As of May 16, it owned 110 properties representing approximately 8.2 million leasable square feet. That’s an increase from 19 properties comprising 1.3 million leasable square feet just three years ago.

The big concern for investors is what will happen to the company’s business model if federal laws are passed to make it easier for cannabis companies to get regular funding. I think that concern is more than offset by continued industry growth, showing that cannabis companies will continue to sell-leaseback to free up cash for expansion. IIPR’s size and market-leading status should continue to make it the go-to REIT in the industry.

3. AbbVie’s deep pipeline continues to pay off

AbbVie is trading at $155 per share. Just over two years ago, it was trading at just under $69 per share. Despite all the market turbulence this year, the giant pharmaceutical company remains a bright spot, with shares up more than 10% so far in 2022.

In the first quarter, the company reported revenue of $13.5 billion, up 4.1% year-over-year, and EPS of $2.51, up 26 % compared to the first quarter of 2021.

AbbVie is not as dependent on the blockbuster immunological drug Humira as some people think. While its sales were down 2.7% (including a 22.6% decline outside the US due to competition from biosimilars), the company’s other immunology drugs, Skyrizi and Rinvoq, continue to grow in sales. Skyrizi had revenue of $940 million in the quarter, up 63.7% year-on-year, and Rinvoq had revenue of $465 million, up 53.6 % compared to the same period last year. Additionally, the company’s aesthetics and neuroscience franchises grew 20.5% and 19.2%, respectively, year-over-year.

There will likely be plenty of growth to come as the company expands label uses for Skyrizi and Rinvoq, while enjoying a strong oncology portfolio, led by blood cancer therapies Venclexta ($473 million revenue in the quarter) and Imbruvica, which brought in revenue of $1.2 billion in the quarter.

Then there’s AbbVie’s dividend, which it increased this year by 8.5% to $1.41 per share, giving it a yield of around 3.71%, which eclipses that of the most pharmaceutical companies. Count your time in the context of Abbott LaboratoriesAbbVie has increased its dividend every year for 50 consecutive years (making it a Dividend King) and by 250% since it spun off from Abbott in 2013. Its annual cash dividend payout yield is not than 42%, so there is room for further dividend increases. .

Double by doubling your returns

Of the three, Innovative Industrial Properties may have an easier time doubling its share price over the next three years, as it had already hit $280 per share last November. Any move toward more states legalizing marijuana sales would likely lift the stock, as long as the company’s finances remain strong.

I could easily see AbbVie doubling in share price over the next three years, especially if it continues to watch its other non-Humira immunology drugs grow in revenue. Due to its higher price, Carlisle Companies would have the hardest time doubling its share price in three years, but the company is probably the safest bet of the three companies to continue rising. If it hits its goal of $8 billion in revenue by 2025, its stock could double from where it is today.