5 US Growth Stocks Pushing Past Their 52-Week Highs: Are They a Buy?
Investors will sit up and take notice when a stock breaches a new 52-week high.
Such share price movements may indicate that something good is happening with the business that is causing investors to feel optimistic.
It could be that revenue and earnings have increased, the business provides upbeat guidance, or the company has snagged a significant contract or conducted a savvy acquisition.
When it comes to growth stocks, you can easily filter for those that have hit their recent year-highs.
We feature five stocks that have broken their 52-week highs and you can assess if they should be included in your buy watchlist.
3M Co (NYSE: MMM)
3M is a conglomerate that utilises science to develop products that enrich people’s lives.
The company has four main divisions – safety and industrial, transportation and electronics, healthcare, and consumer.
Shares of 3M surged by 38.3% year-to-date to hit their 52-week high of US$128 last week.
The strong performance was because of its second quarter of 2024 (2Q 2024) earnings that beat analysts’ estimates for both revenue and earnings per share (EPS).
Revenue for the quarter dipped by 0.4% year on year to US$6.3 billion and the conglomerate reported an operating profit of US$1.3 billion.
2Q 2023 saw 3M report an operating loss, bogged down by the settlement of two large class-action lawsuits.
Net profit for 2Q 2024 came in at US$1.1 billion.
3M also generated a healthy positive free cash flow of US$1.1 billion for the first half of this year.
The company updated its full-year guidance for adjusted EPS and now expects this metric to be in the range of US$7 to US$7.30, up from the previous US$6.80 to US$7.30.
Badger Meter Inc (NYSE: BMI)
Badger Meter provides water solutions encompassing flow measurement, quality, and other system parameters.
These offerings allow its customers to use data and analytics to optimise their operations and help conserve the Earth’s most precious resource – water.
Badger Meter’s share price has climbed nearly 32% year-to-date to touch its 52-week high of US$206.62.
The company reported a strong set of earnings for the first half of 2024 (1H 2024).
Revenue climbed 23.3% year on year to US$412.9 million while operating profit surged 43.2% year on year to US$78.1 million.
Net profit jumped 48.4% year on year to US$62.2 million.
Badger Meter also saw its free cash flow jump by 56.4% year on year to US$52.9 million for 1H 2024.
However, the company only pays dividends once a year but has increased its dividend for 31 consecutive years without fail.
Badger Meter’s latest dividend stood at US$1.08, 20% higher than the US$0.90.
Coca-Cola (NYSE: KO)
Coca-Cola needs no introduction, being one of the world’s largest beverage companies with its famous cola sold in more than 200 countries and territories.
Its portfolio of soft drink brands also includes Sprite and Fanta.
Coca-Cola’s share price recently hit its 52-week high of US$67.11 and is up 12.1% year to date.
For 1H 2024, the beverage giant saw revenue inch up 3% year on year to US$23.7 billion.
Operating profit, however, fell by 17% year on year because of a year-on-year doubling of operating expenses.
Despite this, net profit only dipped by 1% year on year to US$5.6 billion as other income surged more than two-fold year on year.
Coca-Cola generated a positive free cash flow of US$3.3 billion for 1H 2024, though this was 17.3% lower than the previous year’s US$4 billion.
The company’s latest quarterly dividend was US$0.485, a slight increase from the US$0.46 paid out a year ago.
This is also the 62nd consecutive year that Coca-Cola has raised its annual dividends.
Garmin (NYSE: GRMN)
Garmin is a conglomerate with five divisions – fitness, outdoor, aviation, marine, and automotive OEM.
The company has around 19,900 employees in 86 offices spread across 34 countries.
Garmin’s share price has leapt 40% year-to-date to a 52-week high of US$178.51.
The company, which is famous for its fitness trackers, reported record-high revenue and operating profit for 1Q 2024.
Sales jumped 20.4% year on year to US$1.4 billion with operating profit surging 51.5% year on year to US$298.4 million.
Net profit stood at US$276 million for the quarter, up 36.4% year on year.
Free cash flow soared 73% year on year to US$402.1 million for 1Q 2024.
An annual dividend of US$3.00 was declared which will be paid in four equal quarterly instalments of US$0.75 each.
Tyler Technologies (NYSE: TYL)
Tyler Technologies provides mission-critical software solutions and services for the US public sector.
The company is a market leader for public sector software and 83% of its 2023 revenue is recurring in nature.
Tyler’s share price hit its 52-week high of US$593.50 recently and is up 44.7% year to date.
The company announced a sterling set of results for 1H 2024.
Revenue edged up 8% year on year to US$1.1 billion with operating profit climbing 35.7% year on year to US$145 million.
Net profit surged 52.4% year on year to US$122 million.
Free cash flow more than doubled year on year from US$49.2 million to US$122.3 million.
Management has set its goals for 2030 to grow revenues and margins by leveraging its strong client base, expanding into new markets, and growing its payments business.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
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