They may not grab headlines, but “boring” businesses with consistent, strong cash flows that sell essential products and services can quietly outperform over time.
Here are 10 boring businesses that have historically beaten the market by operating well inside a boring industry.
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Here are three interesting stocks from the list.
West Pharmaceutical Services (WST)
- Market Cap: $15 billion
- Industry: Life Sciences Tools & Services
- Analyst Upside: 34%
- P/E Ratio: 33
Company Overview: West Pharmaceutical Services designs and manufactures injectable pharmaceutical packaging and delivery systems, which they use to serve the healthcare industry worldwide.
Business Strategy: The company emphasizes innovation and reliability while meeting the stringent requirements of the pharmaceutical sector.
Recent Developments:
- Earnings & Profitability: West Pharmaceutical Services has maintained consistent profitability, driven by steady demand for its products in the pharmaceutical industry.
- Business Growth Trends: The company continues to invest in research and development to drive long-term growth.
- Shareholder Returns: West Pharmaceutical Services has raised dividends for 33 consecutive years and continues to buy back shares through its share repurchase programs.
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Brown-Forman Corporation (BF.B)
- Market Cap: $16 billion
- Industry: Beverages
- Analyst Upside: 20%
- P/E Ratio: 19
Company Overview: Brown-Forman is a global spirits and wine company, best known for its brands like Jack Daniel’s, Woodford Reserve, and Herradura.
Business Strategy: The company focuses on brand building and global expansion, leveraging its premium beverage portfolio to drive organic sales growth while managing costs and adapting to current market trends.
Recent Developments:
- Earnings & Profitability: Brown-Forman improved profitability through effective pricing and cost management. This helped offset softer sales from some of its core brands like Jack Daniel’s.
- Business Growth Trends: The company saw strong performance in emerging markets and travel retail. Newer brands like Gin Mare and Diplomático also added momentum.
- Shareholder Returns: Brown-Forman continues its decades-long track record of increasing dividends. It also returned value through share repurchases during the year.
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Rollins (ROL)
- Market Cap: $27 billion
- Industry: Pest Control
- Analyst Upside: -8%
- P/E Ratio: 50
Company Overview: Rollins is a leading pest control company serving residential and commercial clients globally. It’s best known for its brands like Orkin, HomeTeam Pest Defense, and Western Pest Services.
Business Strategy: The company generates revenue through recurring pest control services, focusing on organic growth and strategic acquisitions to expand its market presence.
Recent Developments:
- Earnings & Profitability: Rollins achieved strong revenue and earnings growth in 2024, driven by solid performance across its residential, commercial, and termite services. The company maintained healthy operating margins, because of its strong cost management and operational efficiency.
- Business Growth Trends: The company continues to expand through a combination of organic growth and strategic acquisitions. In 2024, Rollins completed multiple acquisitions, enhancing its market presence and service offerings. The company also invested in technology and operational improvements to support long-term growth.
- Shareholder Returns: Rollins is looking to continue its dividend increases and its share repurchase program, which should continue to drive returns for shareholders.
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TIKR Takeaway
These boring businesses focus on driving high returns on capital and achieving operational excellence, which has led these stocks to consistently outperform the market over the long run.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
