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3 Portfolio-Worthy Stocks Hitting 52-Week Highs: AAPL, LLY & KO

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With market volatility and economic uncertainty keeping investors on edge, several established large-cap companies are demonstrating impressive relative strength. 

Notably, Apple (AAPL - Free Report) ), Eli Lilly (LLY - Free Report) ), and Coca-Cola (KO - Free Report) ) are among the market leaders that reached new 52-week highs this week.

These industry giants offer exposure to three distinct investment themes: technology growth, healthcare innovation, and defensive consumer staples. 

Apple continues to benefit from its massive ecosystem and expanding services business, while Eli Lilly is capitalizing on booming demand for obesity and diabetes treatments. Meanwhile, Coca-Cola provides a defensive investment opportunity backed by globally recognized brands, steady consumer demand, and dependable dividend income.

Importantly, investors don't need to chase speculative momentum stocks to benefit from market strength. 

With established business models and compelling long-term opportunities, these three blue-chip companies appear to be attractive core portfolio holdings.

 

Apple’s Technology Growth & AI Opportunities

Apple stock has climbed to new 52-week highs near $350 a share, supported by renewed iPhone momentum, its expanding services ecosystem, and optimism surrounding artificial intelligence.

Its highly anticipated foldable iPhone Duo officially launches today, October 23, after strong initial preorder demand reportedly pushed delivery estimates into January. Along with Apple's expanding AI capabilities, the innovative device could stimulate another upgrade cycle, providing an additional catalyst for hardware sales and long-term growth.

As shown in the chart below, the technology giant most recently reported fiscal Q3 revenue of $109.41 billion, increasing 16% year over year, while adjusted EPS climbed 21% to $1.91 per share. Apple also reported record June-quarter revenue across its iPhone, Mac, and Services businesses.

Encouragingly, Apple's massive installed base of active devices continues to reach record levels, supporting recurring revenue from subscriptions, cloud storage, and digital services.

Zacks Investment Research
Image Source: Zacks Investment Research

 

Eli Lilly’s Booming Pharmaceutical Growth

Eli Lilly shares reached a new 52-week high of $1,321.21 on Thursday, reflecting Wall Street's enthusiasm for its rapidly growing obesity and diabetes treatment businesses.

Lilly most recently reported Q2 revenue of $23 billion, which surged 48% YoY, driven largely by blockbuster drugs Mounjaro and Zepbound. Sales of Mounjaro soared 91% to $9.9 billion, while Zepbound revenue climbed 46% to $4.93 billion.

More impressively, Q2 EPS of $8.38 rose 33% from the prior-year quarter and crushed estimates of $6.01 per share by 39%. The pharmaceutical giant has exceeded earnings expectations in each of its last four quarterly reports with an impressive average EPS surprise of 21.25%  

Fueled by robust demand, Eli Lilly raised its full-year revenue guidance to $85-$87 billion, representing 32% YoY growth at the midpoint and highlighting its exceptional momentum.

Plus, Lilly's promising drug pipeline, including the next-generation obesity treatment retatrutide, provides additional opportunities to expand its leadership in the pharmaceutical industry.

Zacks Investment Research
Image Source: Zacks Investment Research

 

Coca-Cola’s Defensive Stability & Dividend Income

Coca-Cola shares have surged to new 52-week highs near $95, demonstrating the enduring appeal of defensive consumer staples stocks.

With iconic brands including Coca-Cola, Sprite, and Fanta, the beverage giant benefits from resilient consumer demand, global distribution, and pricing power that can help offset inflationary pressures.

Coca-Cola's Q2 revenue increased 7% year over year to $13.37 billion, with organic revenue rising 6%. Adjusted earnings climbed 11% to $0.97 per share, supported by solid volume growth and disciplined cost management.

Adding to its defensive appeal, Coca-Cola pays a $0.53 per share dividend, representing an annualized payout of $2.12 and a yield of 2.2% at current levels.

As a distinguished Dividend King, Coca-Cola has increased its annual dividend for 64 consecutive years, highlighting its commitment to rewarding shareholders through various economic cycles.

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Image Source: Zacks Investment Research

 

Bottom Line

Apple, Eli Lilly, and Coca-Cola offer investors diversified exposure to technology innovation, pharmaceutical growth, and defensive consumer staples.

Although their recent rallies may warrant some caution regarding valuations, all three have durable competitive advantages and established business models that make them worthy of consideration for long-term portfolios.

Furthermore, all three stocks are worth watching as their upcoming quarterly reports could provide additional catalysts for continued momentum.

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