Both the S&P 500 Index and NASDAQ Composite Index have recovered most of the losses suffered during the early August sell-off.
Stocks have been on a tear since the US posted its lowest year-on-year inflation reading since early 2021.
Because of this exuberance, many stocks have hit their 52-week highs as investors feel more optimistic about potential interest rate cuts.
We feature four attractive US growth stocks that pushed past their year-highs and assess if they should feature on your buy watchlist.
Northrop Grumman (NYSE: NOC)
Northrop Grumman is a global aerospace and defence technology company.
The company’s operations span air, cyber, land, sea, space, and advanced weapons and it has four key divisions Aeronautics Systems, Defence Systems, Mission Systems, and Space Systems.
Shares of the aerospace company recently touched their 52-week high of US$508 and are up 8.1% year-to-date.
Northrop reported a robust set of earnings for the first half of 2024 (1H 2024).
Total sales improved by 8% year on year to US$20.4 billion, led by a 16% year-on-year revenue increase for its Aeronautics Systems division.
Operating profit increased by 13% year on year to US$2.2 billion while net profit rose 14% year on year to US$1.9 billion.
The business also generated a positive free cash flow of US$129 million for 1H 2024, a sharp reversal from the negative free cash flow of US$396 million a year ago.
The defence company raised its quarterly dividend by 10% year on year to US$2.06 per share, its 21st consecutive annual increase.
Because of strong sales demand, Northrop expects sales to come in between US$41 billion to US$41.4 billion for 2024 along with free cash flow of US$2.25 billion to US$2.65 billion.
At the mid-point of its sales guidance, this would represent a 4.9% year-on-year increase from 2023.
Revolve Group (NYSE: RVLV)
Revolve Group is a fashion retailer for millennial and Generation Z customers and offers a curated portfolio of more than 100,000 apparel and footwear styles on its platform.
Its platform also connects with thousands of fashion influencers and offers more than 1,200 established and owned brands.
Revolve Group saw its shares hit their 52-week high of US$24.64 recently and are up 44% year-to-date.
Net sales for 1H 2024 stayed flat year on year at US$533 million.
Operating profit, however, climbed 31.4% year on year to US$25.8 million while net profit jumped 22.2% year on year to US$26.3 million.
The business also churned out a positive free cash flow of US$10.9 million for the half year.
Revolve Group continued to see its trailing 12-month active customer count rise, going from 2,458 in the second quarter of 2023 (2Q 2023) to 2,577 for 2Q 2024.
The average order value rose 2% year on year to US$306 for 2Q 2024.
Management intends to continue growing its active customer base, expand its international presence, and increase its share of wallet by introducing adjacent product categories.
US Foods Holding Corp (NYSE: USFD)
US Foods is a leading foodservice distributor working with approximately 250,000 restaurants and food service operators.
The company also owns more than 70 broad-line locations and 90 cash and carry stores to provide its customers with a broad range of food offerings.
The food distributor saw its share price hit a 52-week high of US$58.17 recently and is up 24.7% year-to-date.
For 1H 2024, US Foods saw its revenue rise 6.3% year on year to US$18.7 billion.
Operating profit inched up 1.8% year on year to US$518 million but net profit increased by nearly 9% year on year to US$280 million.
The business also generated a positive free cash flow of US$465 million for 1H 2024.
US Foods board of directors has authorised a new share repurchase programme of up to US$1 billion and the company has already repurchased US$61 million of shares under this new mandate.
During 2Q 2024, the company acquired IWC Food Service, a broadline distributor that serves the greater Nashville area, for around US$220 million.
US Foods held its Investor Day on 5 June this year and set its long-term financial targets for 2025 to 2027.
The company aims to grow net sales by around 5% per annum and enjoy a 20% annual increase in diluted earnings per share.
Ferrari (NYSE: RACE)
Ferrari is a well-known name to most people with its famous luxury sports cars that have participated in numerous Formula One races.
The company’s share price hit its 52-week high of US$469.80 recently and is up more than 38% year-to-date.
Ferrari reported a stellar set of earnings for 1H 2024 with revenue of €3.3 billion, up 13.6% year on year.
Operating profit improved by nearly 16% year on year to €953 million while net profit climbed 21.3% year on year to €763 million.
The luxury car manufacturer raised its 1H 2024 dividend by more than 30% year on year to US$2.598 per share.
The business also generated a positive free cash flow of €357.5 million for 1H 2024, up 19.3% year on year.
The company shipped a total of 7,044 units in 1H 2024, slightly above the previous comparable period’s shipments of 6,959.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
