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5 Strong Buy Stocks Climbing Towards New 52-Week Highs
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There’s a long list of popular averages and ranges that investors like to use while looking at stocks, and that includes the 52-week low and 52-week high metrics. It’s great to find stocks right before they surge towards new highs, but it can be difficult for some to establish a new and consistent range.
With that said, investors typically become interested in stocks as they breach 52-week highs because that momentum can oftentimes continue until a new range is established. If a stock is strong in a variety of key categories, it certainly can keep climbing well above that old 52-week high, and we can find those stocks using our Zacks methods.
Here at Zacks, we place an emphasis on earnings-related data, especially earnings estimate revision activity, and this can definitely be applied to stocks approaching their 52-week highs. One way to ensure continued upward momentum is solid earnings growth, and we can use the proven Zacks Rank system to identify companies that look to impress in this regard.
Using this strategy, we’ve found five stocks that are seeing positive estimate revisions and should post impressive earnings growth this year, which should help them move above the 52-week highs that they are quickly approaching.
NetEase is an internet technology company based in China that produces online MMORPG video games. In the past 30 days, its current-quarter Zacks Consensus Estimate has gained 10 cents after it beat our estimate by over 32% in its most recent report. For the full fiscal year, our consensus estimates reflect earnings growth of 52% and revenue growth of 55%. Shares of NetEase are up 34% in the last 12 weeks, and the stock should continue this impressive run if the company continues to post strong earnings results.
Lifeway Foods is a producer and distributer of “Kefir,” a yogurt-like fermented milk drink. Following a pair of earnings estimate revisions, the Zacks Consensus Estimate for the company’s current-quarter earnings is five cents higher than it was just 30 days ago. After surpassing our consensus estimate by nine cents last quarter, Lifeway hopes to continue this momentum in a year where it expects to see earnings growth of 216% and revenue growth of 8.5%.
Interdigital Communications is a provider of digital wireless telecommunications systems that boasts an impressive patent portfolio. The company expects a giant third-quarter, and its improved guidance has helped move the Zacks Consensus Estimate a shocking 88 cents higher in the past week. We’ve also seen positive revisions for its next-quarter, full-year, and next-year earnings, and our consensus estimate indicates that Interdigital could be in store for earnings growth of 17.5% this year.
AXT is a manufacturer of high-performance compound semiconductor substrates, as well as opto-electronic semiconductor devices. Thanks to three positive estimate revisions, its current-quarter Zacks Consensus Estimate has gained two cents over the last 30 days. Our consensus estimates also show that AXT should turn a profit this year with 5.5% revenue growth and 281% earnings growth.
5. Infoblox Inc.
Previous Close: $22.82 / 52-Week High: $23.26
Infoblox is an automated network controller that provides appliance-based solutions for networks and data centers. Over the last 30 days, its current-quarter Zacks Consensus Estimate has gained 12 cents. Overall, our consensus estimate indicate that Infoblox could see earnings growth of 160% on revenue growth of 2.5% this fiscal year.
Bottom Line
All of these stocks are quickly approaching their 52-week highs, and that means they should be on your radar. Each stock is also sporting a Zacks Rank #1 (Strong Buy) based on its strong earnings-related data, including recent positive estimate revisions. While there are no guarantees on the stock market, these five companies definitely appear to be well-equipped to establish new ranges soon.
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5 Strong Buy Stocks Climbing Towards New 52-Week Highs
There’s a long list of popular averages and ranges that investors like to use while looking at stocks, and that includes the 52-week low and 52-week high metrics. It’s great to find stocks right before they surge towards new highs, but it can be difficult for some to establish a new and consistent range.
With that said, investors typically become interested in stocks as they breach 52-week highs because that momentum can oftentimes continue until a new range is established. If a stock is strong in a variety of key categories, it certainly can keep climbing well above that old 52-week high, and we can find those stocks using our Zacks methods.
Here at Zacks, we place an emphasis on earnings-related data, especially earnings estimate revision activity, and this can definitely be applied to stocks approaching their 52-week highs. One way to ensure continued upward momentum is solid earnings growth, and we can use the proven Zacks Rank system to identify companies that look to impress in this regard.
Using this strategy, we’ve found five stocks that are seeing positive estimate revisions and should post impressive earnings growth this year, which should help them move above the 52-week highs that they are quickly approaching.
1. NetEase (NTES - Free Report)
Previous Close: $230.07 / 52-Week High: $240.47
NetEase is an internet technology company based in China that produces online MMORPG video games. In the past 30 days, its current-quarter Zacks Consensus Estimate has gained 10 cents after it beat our estimate by over 32% in its most recent report. For the full fiscal year, our consensus estimates reflect earnings growth of 52% and revenue growth of 55%. Shares of NetEase are up 34% in the last 12 weeks, and the stock should continue this impressive run if the company continues to post strong earnings results.
2. Lifeway Foods (LWAY - Free Report)
Previous Close: $13.60 / 52-Week High: $14.08
Lifeway Foods is a producer and distributer of “Kefir,” a yogurt-like fermented milk drink. Following a pair of earnings estimate revisions, the Zacks Consensus Estimate for the company’s current-quarter earnings is five cents higher than it was just 30 days ago. After surpassing our consensus estimate by nine cents last quarter, Lifeway hopes to continue this momentum in a year where it expects to see earnings growth of 216% and revenue growth of 8.5%.
3. Interdigital Communications (IDCC - Free Report)
Previous Close: $72.30 / 52-Week High: $73.88
Interdigital Communications is a provider of digital wireless telecommunications systems that boasts an impressive patent portfolio. The company expects a giant third-quarter, and its improved guidance has helped move the Zacks Consensus Estimate a shocking 88 cents higher in the past week. We’ve also seen positive revisions for its next-quarter, full-year, and next-year earnings, and our consensus estimate indicates that Interdigital could be in store for earnings growth of 17.5% this year.
4. AXT, Inc. (AXTI - Free Report)
Previous Close: $4.12 / 52-Week High: $4.52
AXT is a manufacturer of high-performance compound semiconductor substrates, as well as opto-electronic semiconductor devices. Thanks to three positive estimate revisions, its current-quarter Zacks Consensus Estimate has gained two cents over the last 30 days. Our consensus estimates also show that AXT should turn a profit this year with 5.5% revenue growth and 281% earnings growth.
5. Infoblox Inc.
Previous Close: $22.82 / 52-Week High: $23.26
Infoblox is an automated network controller that provides appliance-based solutions for networks and data centers. Over the last 30 days, its current-quarter Zacks Consensus Estimate has gained 12 cents. Overall, our consensus estimate indicate that Infoblox could see earnings growth of 160% on revenue growth of 2.5% this fiscal year.
Bottom Line
All of these stocks are quickly approaching their 52-week highs, and that means they should be on your radar. Each stock is also sporting a Zacks Rank #1 (Strong Buy) based on its strong earnings-related data, including recent positive estimate revisions. While there are no guarantees on the stock market, these five companies definitely appear to be well-equipped to establish new ranges soon.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>