Five Stocks With Solid Growth History and a Promising Outlook

We've uncovered five reasonably priced stocks with records of steady growth and a good chance of delivering earnings even if the economy softens.

A yellow band indicating stock performance, with neon numbers on a screen in the background.
(Image credit: Getty Images)

Buying a stock is, essentially, buying a share of a company’s earnings, and growth in those earnings is ultimately what drives the stock market. But at any given time, for various reasons, investors are willing to pay more or less for each dollar of corporate earnings, as reflected in the price-earnings ratio, the popular valuation measure for stocks.

Lately, investors have been willing to pay ever-higher prices for their slice of corporate profits, pushing P/Es beyond their historical norms. Based on estimated earnings for the 12 months ahead, the P/E for the S&P 500 was recently 20.3, according to FactSet Research Systems, a financial data firm. That’s greater than both the five-year average of 19.2 and the 10-year average of 17.8. 

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Kim Clark
Senior Associate Editor, Kiplinger's Personal Finance

Kim Clark is a veteran financial journalist who has worked at Fortune, U.S News & World Report and Money magazines. She was part of a team that won a Gerald Loeb award for coverage of elder finances, and she won the Education Writers Association's top magazine investigative prize for exposing insurance agents who used false claims about college financial aid to sell policies. As a Kiplinger Fellow at Ohio State University, she studied delivery of digital news and information. Most recently, she worked as a deputy director of the Education Writers Association, leading the training of higher education journalists around the country. She is also a prize-winning gardener, and in her spare time, picks up litter.