When soaring to or nearing historical peaks, stocks exude a sense of remarkable optimism as the current trends signal a dominance of buyers. The trajectory of stocks hitting new highs often propels them to even loftier altitudes, especially as analysts’ upbeat earnings projections continue to pour in.
Such is the tale of Duolingo, SharkNinja, and DaVita, all basking in the glow of a favorable Zacks Rank while hovering near their 52-week highs. Let’s delve into the forces propelling this sterling performance.
SharkNinja: Riding the Wave of Robust Growth
Riding high as a Zacks Rank #1 (Strong Buy), SharkNinja stands out as a versatile product design and technology entity crafting innovative lifestyle solutions for consumers. The company’s outlook has taken a bullish turn across the board post its recent stellar quarterly results.
Image Source: Zacks Investment Research
Noteworthy in its latest quarterly report, SN showcased a remarkable 34% surge in EPS alongside a 31% surge in sales, hitting the $1.2 billion mark and marking the fifth consecutive period of impressive double-digit year-over-year sales growth.
The growth narrative continues to dazzle, with consensus estimates painting an optimistic picture for the current fiscal year – hinting at a 31% increase in EPS riding on a 21% uptick in sales. Looking further into the horizon, expectations for FY25 whisper about a further 14% jump in EPS paired with a 9% sales hike.
The stock boasts a Growth Style Score of ‘B’. Below lies a chart illustrating the company’s quarterly sales performance.
Image Source: Zacks Investment Research
Basking in a 110% surge in 2024, SharkNinja’s shares burn bright, with its earnings outlook paving the way for further market ascension.
DaVita: Unveiling an Attractive Valuation
DaVita, a leading provider of dialysis services in the U.S. catering to chronic kidney failure patients, stands tall with a Zacks Rank #1 (Strong Buy), witnessing an upswing in expectations across all timeframes.
Image Source: Zacks Investment Research
The valuation scene for DVA appears enticing, with the current forward 12-month earnings multiple of 14.0X aligning closely with historical levels. Furthermore, the current PEG ratio of 0.8X signifies a bargain in light of the anticipated growth.
Typically, a PEG ratio below 1.0 signals a blend of growth and value, with DaVita scoring an ‘A’ for Value on the Style Score front.
Image Source: Zacks Investment Research
Duolingo: Surging Towards a Bright Future
Duolingo, a Zacks Rank #1 (Strong Buy), offers a mobile language learning platform aiming for robust growth. Projections for the current fiscal year predict a staggering 430% growth in EPS accompanied by a 40% increase in sales.
The company has a robust history of stout growth, showcasing double-digit sales increases year-over-year in each of its past ten quarters. The diagram below delineates DUOL’s quarterly sales pattern.
Image Source: Zacks Investment Research
Trading at lofty valuation multiples, Duolingo’s current 109.3X forward 12-month earnings multiple echoes investors’ high growth anticipations. And the company is anticipated to deliver just that, as previously indicated.
Concluding Thoughts
Stocks reaching new heights often catapult even higher, particularly as optimistic earnings forecasts hit the headlines.
This and more have been witnessed by the trio of companies – Duolingo, SharkNinja, and DaVita – each flaunting a favorable Zacks Rank and witnessing robust trading near their 52-week peaks.
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