Stocks enjoyed a stellar week following a better-than-expected inflation report, providing much-needed relief for investors.
Of course, inflation remains too high for the Fed's liking, but the better-than-expected print gives hope that peak inflation has passed.
However, perhaps to the surprise of investors, several currently top-ranked stocks have been cruising for some time now and are even pushing 52-week highs, including Sociedad Quimica Y Minera (SQM - Free Report) , Ethan Allen Interiors, Inc. (ETD - Free Report) , and Fabrinet (FN - Free Report) .
Below is a chart illustrating the performance of all three stocks over the past month, with the S&P 500 blended in as a benchmark.
As we can see, all three stocks have seen plenty of buying activity as of late. Let’s take a deeper dive into how each one currently stacks up.
Ethan Allen Interiors, Inc.
Ethan Allen Interiors is a leader in interior design, selling a full range of home furnishings through a retail network of design centers and its online website. The company sports the highly-coveted Zacks Rank #1 (Strong Buy).
Analysts have upped their earnings outlook across the board over the last several months.
For those that seek income, ETD has that covered; the company’s annual dividend currently yields a solid 4.5% paired with a 12.5% five-year annualized dividend growth rate.
The yield is notably higher than its Zacks Retail and Wholesale sector average of 1%.
In addition, the company has been on a strong earnings streak, exceeding revenue and EPS expectations in four consecutive quarters.
Just in its latest print, ETD penciled in a 40% bottom-line beat paired with a 4% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Sociedad Quimica Y Minera
Sociedad Quimica y Minera produces and distributes specialty plant nutrients, iodine, lithium, potassium chloride and sulfate, industrial chemicals, and other products and services.
The company’s near-term earnings outlook has turned bright over the last several months, helping land the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Like ETD, Sociedad Quimica Y Minera rewards its shareholders handsomely; SQM’s annual dividend yield currently sits at 4.3% paired with a substantial 26.1% five-year annualized dividend growth rate.
Still, investors should know that the company’s payout ratio currently sits at 127%, raising concerns about the long-term sustainability of the current yield.
For the cherry on top, the company carries a strong growth profile, with earnings and revenue forecasted to soar 540% and 270% in its current fiscal year (FY22), respectively.
Fabrinet
Fabrinet provides precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and sub-systems, industrial lasers, and sensors.
Analysts have taken a bullish stance on the company’s earnings outlook as of late, helping land FN into a Zacks Rank #1 (Strong Buy).
Fabrinet has consistently exceeded quarterly estimates, surpassing earnings and revenue forecasts in nine of its last ten quarters. In its latest release, FN exceeded earnings and revenue estimates by 13% and 4%, respectively.
Shares trade at an 18.9X forward earnings multiple, above the 17.9X five-year median but representing a 17% discount relative to its Zacks Computer and Technology sector average.
FN carries a Value Style Score of a D.
Bottom Line
We’ve sailed through choppy market waters in 2022 following a hawkish pivot from the Federal Reserve, geopolitical issues, and lingering COVID-19 disruptions.
However, a better-than-expected inflation report has helped to lift stock as of late, providing a much-needed break for investors.
While the market continues to react to the CPI print, a few stocks have been quietly strong, pushing 52-week highs.
And a few have seen their near-term earnings outlook turn visibly bright.
Stocks making new highs tend to make even higher highs, especially when positive earnings estimate revisions roll in from analysts.
Three top-ranked stocks pushing 52-week highs – Sociedad Quimica Y Minera (SQM - Free Report) , Ethan Allen Interiors, Inc. (ETD - Free Report) , and Fabrinet (FN - Free Report) – could all be considerations for investors looking to ride momentum.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
Stocks enjoyed a stellar week following a better-than-expected inflation report, providing much-needed relief for investors.
Of course, inflation remains too high for the Fed's liking, but the better-than-expected print gives hope that peak inflation has passed.
However, perhaps to the surprise of investors, several currently top-ranked stocks have been cruising for some time now and are even pushing 52-week highs, including Sociedad Quimica Y Minera (SQM - Free Report) , Ethan Allen Interiors, Inc. (ETD - Free Report) , and Fabrinet (FN - Free Report) .
Below is a chart illustrating the performance of all three stocks over the past month, with the S&P 500 blended in as a benchmark.
As we can see, all three stocks have seen plenty of buying activity as of late. Let’s take a deeper dive into how each one currently stacks up.
Ethan Allen Interiors, Inc.
Ethan Allen Interiors is a leader in interior design, selling a full range of home furnishings through a retail network of design centers and its online website. The company sports the highly-coveted Zacks Rank #1 (Strong Buy).
Analysts have upped their earnings outlook across the board over the last several months.
For those that seek income, ETD has that covered; the company’s annual dividend currently yields a solid 4.5% paired with a 12.5% five-year annualized dividend growth rate.
The yield is notably higher than its Zacks Retail and Wholesale sector average of 1%.
In addition, the company has been on a strong earnings streak, exceeding revenue and EPS expectations in four consecutive quarters.
Just in its latest print, ETD penciled in a 40% bottom-line beat paired with a 4% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Sociedad Quimica Y Minera
Sociedad Quimica y Minera produces and distributes specialty plant nutrients, iodine, lithium, potassium chloride and sulfate, industrial chemicals, and other products and services.
The company’s near-term earnings outlook has turned bright over the last several months, helping land the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Like ETD, Sociedad Quimica Y Minera rewards its shareholders handsomely; SQM’s annual dividend yield currently sits at 4.3% paired with a substantial 26.1% five-year annualized dividend growth rate.
Still, investors should know that the company’s payout ratio currently sits at 127%, raising concerns about the long-term sustainability of the current yield.
For the cherry on top, the company carries a strong growth profile, with earnings and revenue forecasted to soar 540% and 270% in its current fiscal year (FY22), respectively.
Fabrinet
Fabrinet provides precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and sub-systems, industrial lasers, and sensors.
Analysts have taken a bullish stance on the company’s earnings outlook as of late, helping land FN into a Zacks Rank #1 (Strong Buy).
Fabrinet has consistently exceeded quarterly estimates, surpassing earnings and revenue forecasts in nine of its last ten quarters. In its latest release, FN exceeded earnings and revenue estimates by 13% and 4%, respectively.
Shares trade at an 18.9X forward earnings multiple, above the 17.9X five-year median but representing a 17% discount relative to its Zacks Computer and Technology sector average.
FN carries a Value Style Score of a D.
Bottom Line
We’ve sailed through choppy market waters in 2022 following a hawkish pivot from the Federal Reserve, geopolitical issues, and lingering COVID-19 disruptions.
However, a better-than-expected inflation report has helped to lift stock as of late, providing a much-needed break for investors.
While the market continues to react to the CPI print, a few stocks have been quietly strong, pushing 52-week highs.
And a few have seen their near-term earnings outlook turn visibly bright.
Stocks making new highs tend to make even higher highs, especially when positive earnings estimate revisions roll in from analysts.
Three top-ranked stocks pushing 52-week highs – Sociedad Quimica Y Minera (SQM - Free Report) , Ethan Allen Interiors, Inc. (ETD - Free Report) , and Fabrinet (FN - Free Report) – could all be considerations for investors looking to ride momentum.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
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