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Stop me if you’ve heard this before, but stocks making new highs tend to make even higher highs, especially when analysts’ positive earnings estimate revisions roll in.
By targeting stocks breaking out or near new highs, investors find themselves in favorable trends where buyers are in control.
Three stocks – General Electric GE, Lamb Weston LW, and Novo Nordisk NVO – are all pushing 52-week highs. Below is a chart illustrating the performance of all three over the last year, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a closer look at how each company currently stacks up.
General Electric
General Electric is on deck to reveal quarterly results this week; currently, the Zacks Consensus EPS Estimate of $0.13 indicates a 45% year-over-year pullback in earnings. The stock is a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
The market took the company’s latest quarterly results in stride, sending shares soaring post-earnings. GE posted earnings of $1.11 per share, handily beating the Zacks Consensus EPS Estimate by more than 11%.
Image Source: Zacks Investment Research
Lamb Weston
Lamb Weston Holdings is a leading global manufacturer, marketer, and distributor of value-added frozen potato products. The company’s earnings outlook has shifted higher across all timeframes, helping land the stock into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
The company boasts a stellar earnings track record, exceeding the Zacks Consensus EPS Estimate by double-digit percentages in six consecutive quarters. Just in its latest release, Lamb Weston penciled in a 46% EPS beat paired with a 6.5% positive sales surprise.
Image Source: Zacks Investment Research
In addition, Lamb Weston boasts a shareholder-friendly nature, carrying a 7.1% five-year annualized dividend growth rate. The company’s annual dividend presently yields 1%, below the Zacks Consumer Staples sector average.
Image Source: Zacks Investment Research
Novo Nordisk
Novo Nordisk is a global healthcare company and a leader in the worldwide diabetes market. Like the others above, the company has seen its near-term earnings outlook shift bright, pushing it into a favorable Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Value-focused investors may not find NVO shares attractive, with the company’s 38.2X forward earnings multiple sitting well above the 24.3X five-year median and Zacks Medical sector average. Novo Nordisk carries a Style Score of “D” for value.
Image Source: Zacks Investment Research
However, the company’s projected growth is hard to ignore, making the premium investors pay for shares less painful. Regarding the bottom line, earnings are forecasted to soar 30% in its current fiscal year (FY23) and a further 17% in FY24.
Image Source: Zacks Investment Research
Bottom Line
Stocks making or pushing 52-week highs display great momentum, with buyers fully in control. By targeting these stocks, investors can insert themselves in favorable trends.
And all three stocks above – General Electric GE, Lamb Weston LW, and Novo Nordisk NVO – are pushing 52-week highs, indicating favorable sentiment among market participants.
In addition, all three sport an improved earnings outlook, helping provide shares the fuel they need to continue climbing.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
General Electric Company (GE) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
Lamb Weston (LW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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