The 52-week high list is a great place to search for investment ideas.
Investors normally bid up a stock when there is positive news surrounding the company, which may include positive earnings announcements, acquisitions, or an increase in dividends.
The good news is that growth stocks that are hitting a year high may qualify as great long-term investment picks that can help you to grow and compound your wealth.
Here are four growth stocks that recently touched their 52-week highs and could be worth a second look.
McDonald’s (NYSE: MCD)
McDonald’s needs no introduction as the fast-food chain is famous for its “golden arches” logo.
The company is one of the largest foodservice retailers with more than 40,000 locations in over 100 countries.
McDonald’s recently saw its share price hit its 52-week high of US$317.90 and is up 6% year-to-date.
The fast food giant reported a mixed set of results for the first half of 2024 (1H 2024).
Total revenue inched up 2% year on year to US$12.7 billion but operating profit stayed flat year on year at US$5.6 billion.
Net profit dipped by 4% year on year to US$3.9 billion.
Despite the slight profit drop, McDonald’s continued to generate healthy positive free cash flow.
Free cash flow for 1H 2024 stood at US$2.9 billion, dipping just 5.2% from the previous year’s US$3.1 billion.
The fast food chain paid out a quarterly dividend of US$1.67 per share, a 10% year-on-year increase from US$1.52 paid out last year.
Comparable store sales for the second quarter of 2024 (2Q 2024) in the US dipped by 0.7% because of an increase in menu prices.
On a company level, comparable store sales for 2Q 2024 fell by 1% year on year.
McDonald’s will continue to execute its “Accelerating the Arches” strategic plan which involves maximising its marketing, committing to its core products, and doubling down on its “4Ds” of delivery, digital, drive-thru, and development.
Mastercard (NYSE: MA)
Mastercard is a well-known payment processing company that acts as a middleman between merchants and consumers, helping to process payments efficiently and safely.
As of 2Q 2024, the company had a total of 3.4 billion debit and credit cards in issue.
Mastercard’s share price hit a new 52-week and all-time high of US$518.82 recently and is up 22% year-to-date.
The company reported a strong set of earnings for 1H 2024 with revenue rising 11% year on year to US$13.3 billion.
Operating profit climbed 12% year on year to US$7.6 billion while net profit surged 20% year on year to US$6.3 billion.
A quarterly dividend of US$0.66 was declared and paid, up from US$0.57 a year ago.
Mastercard also reported a gross dollar volume (for transactions) of US$2.4 trillion for 2Q 2024, up 6.1% year on year.
Cross-border volume was also up 17% year on year for the quarter.
Just last month, Mastercard acquired global threat intelligence company Recorded Future from Insight Partners for US$2.65 billion.
This acquisition will help Mastercard with more insights and intelligence surrounding the payments ecosystem and beyond.
Nordstrom (NYSE: JWN)
Nordstrom is a luxury department store chain with more than 350 outlets scattered throughout the US.
The company saw its share price touch a 52-week high of close to US$25 and is up 31% year-to-date.
Nordstrom reported a mixed set of earnings for 1H 2024.
Revenue rose 4% year on year to US$7.2 billion with operating profit coming in at US$169 million.
Net profit stood at US$83 million for 1H 2024, a reversal from the net loss of US$67 million a year ago.
1H 2023’s results included US$309 million of wind-down costs for Canada, so Nordstrom would have reported a net profit of US$242 if this item was excluded.
This means that the retailer’s core net profit would have fallen by a sharp 65.7% year on year.
The luxury retailer generated a positive free cash flow of US$324 million for 1H 2024, 35% higher than the US$240 million churned out a year ago.
Nordstrom opened 11 new stores year-to-date with 12 more openings planned for the second half of 2024.
2Q 2024 also saw a 2% year-on-year increase in comparable store sales and a 6% year-on-year increase in digital sales.
Nordstrom has updated its 2024 guidance where it now expects year-on-year revenue growth of negative 1% to positive 1%, up from the previous negative 2% to positive 1%.
Comparable store sales is expected to be flat to +2% year on year.
However, earnings per share has been downgraded to a range of US$1.40 to US$1.70, down from the previous range of US$1.65 to US$2.05.
The reason for this is an increase in selling, general and administrative expenses arising from accelerated depreciation in both 3Q and 4Q of 2024.
Crown Holdings (NYSE: CCK)
Crown Holdings is a market leader in metal packaging technology.
The company has operations in 39 countries globally and employs more than 25,000 people.
Crown’s share price recently hit its 52-week high of US$98.46 and has risen nearly 5% year-to-date.
The company reported a robust set of earnings for the first nine months of 2024 (9M 2024).
Revenue dipped by 2.8% year on year to US$8.9 billion but operating profit increased by 5.7% year on year to US$1.1 billion.
Net profit for 9M 2024 came in at US$66 million, down 84.2% year on year, but was impacted by US$519 million worth of pension settlements and curtailments.
Excluding this item, net profit would have soared 40% year on year to US$585 million.
Free cash flow nearly tripled year on year from US$218 million in 9M 2023 to US$643 million in 9M 2024.
A cash dividend of US$0.25 per share was declared for the latest quarter.
Crown Holdings expects to generate free cash flow of US$750 million for 2024.
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Disclosure: Royston Yang owns shares of Mastercard.
