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3 Red Hot Stocks Flashing Buy Signals: DVA, ISRG, SN
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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 Intuitive Surgical (ISRG - Free Report) , SharkNinja (SN - Free Report) , and DaVita (DVA - Free Report) , 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 Shares Soar
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.
Image Source: Zacks Investment Research
The stock’s performance has been quietly remarkable in 2024, gaining nearly 100% and widely outperforming relative to the S&P 500. Share performance has been driven by robust quarterly results that have led to positive earnings estimate revisions.
Concerning the latest quarterly print, SN posted 34% EPS Growth on 31% higher sales, continuing its high-growth nature. Impressively, the company has posted double-digit percentage year-over-year growth rates in five consecutive periods.
And the growth is expected to continue nicely, with consensus expectations for its current fiscal year alluding to 31% EPS growth on 21% higher sales. Peeking a bit ahead, expectations for FY25 suggest an additional 14% pop in EPS paired with a 9% sales increase.
The stock sports a Style Score of ‘B’ for Growth.
Image Source: Zacks Investment Research
The company raised its FY24 outlook on Key Metrics, helping explain the pop in shares post-earnings.
ISRG's Demand Remains Robust
Intuitive Surgical designs, manufactures, and markets the da Vinci surgical system (an advanced robot-assisted surgical system) and related instruments and accessories. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with analysts raising their earnings expectations across the board.
Image Source: Zacks Investment Research
Like SN, Intuitive Surgical shares have been quietly strong in 2024, gaining nearly 50%. In fact, shares have provided an annualized return of a staggering 25% across the last decade, making it one of the top-performing stocks overall.
Strong sales growth driven by continued demand has been behind the share performance, with 2024 Q2 sales of $2 billion reflecting a 15% change year-over-year. Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
Shares trade at elevated valuation multiples, reflective of investors' growth expectations. The current forward 12-month earnings multiple presently sits at 66.7X, though its current PEG ratio of 3.8X is well below the 4.4X five-year median.
The stock has historically traded at rich multiples, as shown below. The stock carries a Value Style Score of ‘F’.
Image Source: Zacks Investment Research
DaVita Enjoys Margin Expansion
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 decently enticing, with the current forward 12-month earnings multiple of 14.0X primarily in line with historical levels. In addition, the current PEG ratio works out to 0.8X, reflecting a bargain relative to the growth expected.
Typically, a PEG ratio beneath 1.0 indicates both growth and value. The stock sports a Style Score of ‘A’ for Value.
Image Source: Zacks Investment Research
The company has also enjoyed margin expansion over recent quarters, unlocking higher profitability. Please note that the chart below is on a trailing twelve-month basis.
Image Source: Zacks Investment Research
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 – Intuitive Surgical (ISRG - Free Report) , SharkNinja (SN - Free Report) , and DaVita (DVA - Free Report) – have enjoyed, with each sporting a favorable Zacks Rank and seeing their shares trade near 52-week highs.
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3 Red Hot Stocks Flashing Buy Signals: DVA, ISRG, SN
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 Intuitive Surgical (ISRG - Free Report) , SharkNinja (SN - Free Report) , and DaVita (DVA - Free Report) , 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 Shares Soar
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.
Image Source: Zacks Investment Research
The stock’s performance has been quietly remarkable in 2024, gaining nearly 100% and widely outperforming relative to the S&P 500. Share performance has been driven by robust quarterly results that have led to positive earnings estimate revisions.
Concerning the latest quarterly print, SN posted 34% EPS Growth on 31% higher sales, continuing its high-growth nature. Impressively, the company has posted double-digit percentage year-over-year growth rates in five consecutive periods.
And the growth is expected to continue nicely, with consensus expectations for its current fiscal year alluding to 31% EPS growth on 21% higher sales. Peeking a bit ahead, expectations for FY25 suggest an additional 14% pop in EPS paired with a 9% sales increase.
The stock sports a Style Score of ‘B’ for Growth.
The company raised its FY24 outlook on Key Metrics, helping explain the pop in shares post-earnings.
ISRG's Demand Remains Robust
Intuitive Surgical designs, manufactures, and markets the da Vinci surgical system (an advanced robot-assisted surgical system) and related instruments and accessories. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with analysts raising their earnings expectations across the board.
Image Source: Zacks Investment Research
Like SN, Intuitive Surgical shares have been quietly strong in 2024, gaining nearly 50%. In fact, shares have provided an annualized return of a staggering 25% across the last decade, making it one of the top-performing stocks overall.
Strong sales growth driven by continued demand has been behind the share performance, with 2024 Q2 sales of $2 billion reflecting a 15% change year-over-year. Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
Shares trade at elevated valuation multiples, reflective of investors' growth expectations. The current forward 12-month earnings multiple presently sits at 66.7X, though its current PEG ratio of 3.8X is well below the 4.4X five-year median.
The stock has historically traded at rich multiples, as shown below. The stock carries a Value Style Score of ‘F’.
Image Source: Zacks Investment Research
DaVita Enjoys Margin Expansion
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 decently enticing, with the current forward 12-month earnings multiple of 14.0X primarily in line with historical levels. In addition, the current PEG ratio works out to 0.8X, reflecting a bargain relative to the growth expected.
Typically, a PEG ratio beneath 1.0 indicates both growth and value. The stock sports a Style Score of ‘A’ for Value.
Image Source: Zacks Investment Research
The company has also enjoyed margin expansion over recent quarters, unlocking higher profitability. Please note that the chart below is on a trailing twelve-month basis.
Image Source: Zacks Investment Research
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 – Intuitive Surgical (ISRG - Free Report) , SharkNinja (SN - Free Report) , and DaVita (DVA - Free Report) – have enjoyed, with each sporting a favorable Zacks Rank and seeing their shares trade near 52-week highs.