Investing in growth stocks is one of the best ways you can build your wealth to better prepare for retirement.
As these companies grow their earnings and dividends, their share prices should naturally rise in tandem, netting you attract capital gains and increasing the value of your investment portfolio.
One effective way to screen for potential investment ideas is to look at stocks that are hitting their 52-week highs.
This often happens when businesses announce solid earnings or conduct attractive acquisitions.
We line up four US stocks that recently broke through their year-high to determine if you should add them into your buy watchlist.
3M (NYSE: MMM)
3M is a conglomerate with operations in industrial, worker safety, and consumer goods.
The company uses science and technology to produce innovative products that are used in homes, businesses, schools, and hospitals.
Shares of 3M recently hit their 52-week high of US$155 and have soared nearly 93% in the past year.
3M reported a respectable set of earnings for 2024.
Sales stayed flat year on year at US$24.6 billion.
Operating income came in at US$4.8 billion, reversing the operating loss of US$10.7 billion incurred in the prior year.
Net profit stood at US$4.2 billion, a sharp turnaround from the net loss of US$7 billion back in 2023.
The business managed to generate a positive free cash flow of US$638 million for 2024.
3M expects 2025 to see total sales growth of between 0.5% to 1.5%.
A quarterly dividend of US$0.73 was declared, higher than the previous quarter’s (3Q 2024) US$0.70.
3M will hold its 2025 Investor Day on 26 February this year where management will discuss strategic priorities and the firm’s business outlook as well as entertain questions.
Skechers (NYSE: SKX)
Skechers designs, develops, and sells a diverse range of lifestyle and performance footwear, apparel, and accessories.
The company’s merchandise is sold in around 180 countries and is available in 5,300 Skechers stores globally.
Skechers saw its share price hit a 52-week high of US$78.85 and is up 12.1% in the past year.
For 2024, the company saw sales rise 12.1% year on year to US$8.9 billion while operating profit jumped 15.2% year on year to US$904.3 million.
Net profit climbed 17.2% year on year to US$639.5 million.
Last December, the company continues to expand its presence with a new flagship store opening in the centre of Prague.
The company also opened its first Skechers performance store in Edmonton, Canada, featuring an immersive line up of half-courts where customers can try out its latest innovative products.
Management is targeting US$10 billion sales by 2026 and has an international sales growth target in the low to mid-teens.
Walmart (NYSE: WMT)
Walmart is a technology-powered omni-channel retailer with more than 10,500 stores located in 19 countries.
The company serves roughly 255 million customers and employs around 2.1 million staff worldwide.
Walmart’s share price has soared 79.3% in the past year and recently touched its 52-week high of US$103.11.
For the first nine months of fiscal 2025 (9M FY2025) ending 31 October 2024, Walmart saw total revenue rise 5.4% year on year to US$500.4 billion.
Operating profit increased by 8.8% year on year to US$21.5 billion while the net profit jumped 41.6% year on year to US$14.2 billion.
The retailer also generated a positive free cash flow of US$6.2 billion for 9M FY2025, up more than 43% year on year from the US$4.3 billion churned out in the previous year.
A dividend of US$0.83 per share was declared for 9M FY2025, up from US$0.76 the year before.
The latest guidance from Walmart is for FY2025’s sales to come in 4.8% to 5.1% higher than the previous year.
Adjusted operating income, in constant currency, should increase by between 8.5% to 9.25% year on year.
Resmed (NYSE: RMD)
Resmed is a medical device company that manufactures products to help treat sleep apnea, chronic obstructive pulmonary disease (COPD), and other respiratory conditions.
The company’s share price has climbed 28.3% in the past year and hit its 52-week high of US$263 recently.
Resmed reported a strong set of earnings for the first half of fiscal 2025 (1H FY2025) ending 31 December 2024.
Revenue rose 10.7% year on year to US$2.5 billion while operating profit jumped 42.6% year on year to US$804.6 million.
Net profit clocked in at US$656 million, soaring 53.2% year on year.
The medical device company also generated a positive free cash flow of US$591.1 million for 1H FY2025, nearly 20% higher than the prior year.
A quarterly dividend of US$0.53 was paid, up from the US$0.48 paid out a year ago.
The company plans to focus on underpenetrated markets in sleep and COPD and offer its value-based technology solutions to help save on healthcare costs and improve patient outcomes.
It plans to reinvest for growth, with 6% to 7% of its revenue reserved for R&D, while actively pursuing potential acquisitions.
At the same time, Resmed will return capital to shareholders via an increasing dividend and share repurchases.
Dive into the future of technology with our newest FREE report, “The Rise of Titans.” Discover how the big 7 US tech stocks can be your ticket to huge long-term gains. Download your copy today and see how easy it is to supercharge your portfolio.
Follow us on Facebook and Telegram for the latest investing news and analyses!
Disclosure: Royston Yang does not own shares in any of the companies mentioned.
