Yahoo Finance 4 US Growth Stocks with Share Prices at Their 52-Week Highs: Can They Continue Their Run?
Investors can be well-rewarded for seeking out growth stocks that are hitting new 52-week highs.
Such price movements usually imply that something is going right with the business, thus prompting investors to bid up its share price.
That said, investors still need to put in the time and effort to understand the business and the direction it is headed.
Share prices may have hit highs but this run will only continue if the company has strong prospects for growing both its revenue and net profit.
Here are four US growth stocks that hit their 52-week highs recently that you may wish to add to your buy watchlist.
Church & Dwight (NYSE: CHD)
Church & Dwight is a leading US producer of sodium bicarbonate, also known as baking soda.
In addition, the company also manufactures and markets a wide range of household, personal care, and speciality products under brand names such as Arm & Hammer, Trojan, Xtra, and Oxiclean.
The consumer goods company’s share price recently hit its 52-week high of US$108.68 and is up more than 13% year-to-date (YTD).
Church & Dwight reported a strong set of results for the first quarter of 2024 (1Q 2024).
Net sales grew 5.1% year on year to US$1.5 billion while operating profit improved by 4.5% year on year to US$305 million.
Net profit for 1Q 2024 jumped 12.1% year on year to US$227.7 million.
The business also generated a positive free cash flow of US$216.7 million for the quarter.
Church & Dwight paid out a quarterly dividend of US$0.28 per share, up slightly from US$0.27 a year ago.
Management expects to see net sales increase by between 4% to 5% year on year for 2024 with a gross margin expansion of 0.75 percentage points.
Back in March, the company acquired its Japan-based distributor Graphico for around US$35 million and this purchase will be pivotal in helping Church & Dwight to expand its Japan business.
New York Times (NYSE: NYT)
The New York Times (NYT) is a news company with more than 10 million subscribers across physical and digital print media.
The business covers a diverse range of topics such as cooking, sports, and current affairs.
NYT’s share price has risen 6.5% YTD and is close to its 52-week high of nearly US$52.
For 1Q 2024, the news company’s revenue rose nearly 6% year on year to US$594 million, led by a nearly 8% year-on-year increase in subscription revenue to US$429 million.
Operating profit surged 73.2% year on year to US$48.3 million and net profit soared by 81.1% year on year to US$40.4 million.
The business generated a positive free cash flow of US$46.7 million for the quarter, up 4.3% year on year.
A quarterly dividend of US$0.13 per share was declared, up from US$0.11 a year ago.
NYT added around 210,000 digital-only subscribers in the quarter, driven by bundled products.
The digital-only average revenue per user increased by 1.9% year on year to US$9.21.
Skechers (NYSE: SKX)
Skechers designs, develops and sells a range of lifestyle and performance footwear and apparel.
The company operates approximately 5,200 physical retail stores and its products are available in 180 countries and territories.
Shares of the company are up 13.4% YTD and recently hit their 52-week high of US$72.27.
Sales hit a record high of US$2.25 billion for 1Q 2024, up 12.5% year on year.
Direct-to-consumer sales pulled off a strong performance with a 17.3% year-on-year increase.
Operating profit climbed 33.6% year on year to US$298.8 million with net profit jumping 28.8% year on year to US$206.6 million.
With share repurchases, Skecher’s diluted earnings per share improved by 30.4% year on year to US$1.33.
A net 35 stores were opened by the company during 1Q 2024, bringing its total store count to 5,203 as of 31 March 2024.
Skechers opened its first concept store in Brussels, Belgium, in April this year, and will have its first retail location in Bruges in May, expanding the brand’s presence in the country.
The company also partnered with John Deere (NYSE: DE) with a co-branded professional and lifestyle offering that will hit stores in July 2024.
Universal Health Services (NYSE: UHS)
Universal Health Services, or UHS, is one of the largest providers of hospital and healthcare services in the US.
The company has around 96,700 employees and operates 27 acute care hospitals, 333 behavioural health facilities, and more than 40 outpatient facilities and ambulatory care access points.
Shares of the healthcare company touched their year-high of US$189.95 recently and are up more than 19% YTD.
UHS’s revenue for 1Q 2024 rose 10.8% year on year to US$3.8 billion.
Operating profit improved by 39.5% year on year to US$388.8 million while net profit surged 61.3% year on year to US$261.8 million.
The healthcare provider generated a positive free cash flow of US$187.9 million for the quarter, 54% higher year on year.
A cash dividend of US$0.20 was declared last month and will be paid on 17 June.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
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