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5 Buy-Rated Stocks Shattering 52-Week Highs

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Amid the recent favorable price action within the market, many stocks are nearing or breaking 52-week highs, including several highly recognizable names such as Amazon (AMZN - Free Report) , Meta Platforms (META - Free Report) , Super Micro Computer (SMCI - Free Report) , Coinbase (COIN - Free Report) , and American Eagle Outfitters (AEO - Free Report) .  

In addition to recent momentum, all three sport a favorable Zacks Rank, reflecting upward earnings estimate revisions among analysts. Stocks making new highs tend to make even higher highs, particularly when positive earnings estimate revisions are present.

Below is a chart illustrating the performance of each over the last year, with the S&P 500 blended in as a benchmark.

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s take a closer look at each.

Amazon

Amazon shares have benefited nicely from an operational turnaround, with the company exceeding our consensus EPS expectations by an average of 50% across its last four releases. The stock sports a Zacks Rank #1 (Strong Buy), with earnings expectations moving higher across the board.

Zacks Investment Research
Image Source: Zacks Investment Research

Amazon’s growth profile is considerably bright, with current consensus expectations for its FY24 suggesting 40% earnings growth on 12% higher sales. Peeking ahead to FY25, estimates allude to an additional 30% of earnings growth paired with an 11% sales increase.

Super Micro Computer

Super Micro Computer shares have been unbelievably hot over the last year, gaining more than 1000% and reflecting one of the top performers overall. The bullish move has been driven by the AI frenzy, with expectations melting higher over the last several months and landing the stock into a Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Image Source: Zacks Investment Research

Shares are undoubtedly expensive when compared to historical levels, reflective of its current high-growth nature. The current forward 12-month earnings multiple presently sits at 40.7X, well above the 18.6X five-year median. Super Micro Computer is forecasted to witness 83% earnings growth on 100% higher sales in its current fiscal year.

Meta Platforms

Meta Platforms shares have also benefited in a big way from robust quarterly results, with META exceeding our consensus EPS estimates by an average of 20% across its last four releases. The stock sports a Zacks Rank #1 (Strong Buy), with its earnings outlook notably bright.

Zacks Investment Research
Image Source: Zacks Investment Research

Income-focused investors seeking technology exposure could soon be interested – Meta unveiled its first-ever dividend following its latest print.

Coinbase

A renowned interest in crypto has had Coinbase shares hot, with analysts revising their expectations in a big way and pushing the stock into a Zacks Rank #1 (Strong Buy). The company crushed our consensus EPS estimate by 1200% in its latest release.

Zacks Investment Research
Image Source: Zacks Investment Research

Earnings are forecasted to soar 170% on 30% higher revenues in its current fiscal year.

American Eagle Outfitters

American Eagle Outfitters shares have been on a tear thanks to a better operating environment that has led to better-than-expected quarterly prints. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Image Source: Zacks Investment Research

Shares currently yield a solid 2.1% annually, nicely above its respective Zacks Retail and Wholesale sector average.

Bottom Line

Momentum has carried over nicely into 2024, with many stocks breaking 52-week highs and undoubtedly pleasing investors.

And for those seeking to tap into the strength, all five stocks above – Amazon (AMZN - Free Report) , Meta Platforms (META - Free Report) , Super Micro Computer (SMCI - Free Report) , Coinbase (COIN - Free Report) , and American Eagle Outfitters (AEO - Free Report) – could be great considerations.

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