When stocks are cruising at or nearing all-time highs, it reflects considerable bullishness with trends where buyers are in control. Stocks making new highs tend to make even higher highs, particularly when analysts’ positive earnings estimate revisions are rolling in. That’s been precisely the case for Duolingo DUOL, SharkNinja SN, and DaVita DVA, all of which presently sport a favorable Zacks Rank and are trading near 52-week highs. Let’s take a closer look at what’s been driving the bullish behavior.
SharkNinja Thriving on Solid Growth
SharkNinja, a current Zacks Rank #1 (Strong Buy), is a diversified product design and technology company that creates lifestyle solutions through products for consumers. The company’s outlook has shifted bullishly across the board following its latest set of rock-solid quarterly results.
Image Source: Zacks Investment Research
Concerning the above-mentioned quarterly print, SN posted 34% EPS Growth on 31% higher sales, with revenue of $1.2 billion penciling in the fifth consecutive period of double-digit percentage Y/Y sales growth.
Up 110% in 2024, shares have been red hot, with its earnings outlook supportive of further gains.
DVA’s Valuation Shows Attractiveness
DaVita is a leading provider of dialysis services in the U.S. to patients suffering from chronic kidney failure, also known as end-stage renal disease (ESRD). The stock is currently a Zacks Rank #1 (Strong Buy), with expectations moving higher across all timeframes.
Image Source: Zacks Investment Research
The valuation picture here for DVA is enticing, with the current forward 12-month earnings multiple of 14.0X primarily in line with historical levels. The stock sports a Style Score of ‘A’ for Value.
Duolingo Predicts Substantial Growth
Duolingo, a Zacks Rank #1 (Strong Buy), provides a mobile language learning platform. The company’s forecasted growth is robust, with consensus expectations for its current fiscal year alluding to 430% EPS growth paired with a 40% sales bump.
Shares trade at elevated valuation multiples, with the current 109.3X forward 12-month earnings multiple reflective of investors’ big growth expectations. And the company is forecasted to deliver just that.
Bottom Line
Stocks making new highs tend to make even higher highs, particularly when positive earnings estimate revisions hit the tape. That’s precisely what all three stocks above – Duolingo DUOL, SharkNinja SN, and DaVita DVA – have enjoyed, with each sporting a favorable Zacks Rank and seeing their shares trade near 52-week highs.
Prospects of Robust Growth in Infrastructure Stocks
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is, “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a special report to aid in this endeavor, showcasing 5 companies poised to gain the most from construction and repair projects on a monumental scale.