The US market has been on a winning streak.
The NASDAQ Composite Index and bellwether S&P 500 Index both hit new all-time highs recently as investors shrugged off inflation data that came in higher than expected.
If you are looking for promising growth stocks, you can check out the list of stocks hitting their 52-week highs.
Such stocks may be signalling that their financials are sturdy and prospects are bright.
Investors, however, still need to do their due diligence to ensure these stocks are fundamentally sound.
Here are five US growth stocks that recently hit their 52-week highs that you may want to add to your buy watchlist.
Caterpillar (NYSE: CAT)
Caterpillar is a leading manufacturer of construction and mining equipment, engines, industrial gas turbines, and diesel-electric cars.
The company’s shares recently hit a 52-week high of US$344.50 and are up 15.2% year-to-date (YTD).
Caterpillar reported a strong set of earnings for 2023 with revenue rising 12.8% year on year to US$67.1 billion.
Operating profit surged 64% year on year to US$13 billion while net profit climbed 54.1% year on year to US$10.3 billion.
The construction equipment company also generated a positive free cash flow of US$11.3 billion, up 74.5% year on year.
Caterpillar also declared a quarterly dividend of US$1.30 per share, up from US$1.20 last year, and has increased its dividends for 30 consecutive years.
Management expects 2024’s revenue to be broadly similar to 2023 and projects another year of growth in services revenue towards its target of US$28 billion by 2026.
Dover Corp (NYSE: DOV)
Dover is a diversified manufacturer of equipment and components, consumable supplies, software and digital solutions, and support services.
The company employs a team of more than 25,000 staff at its headquarters in Illinois.
Dover’s share price hit a 52-week high of US$175.50 and is up 15.7% YTD.
The company released a resilient set of earnings for 2023.
Revenue slid 0.8% year on year to US$8.4 billion while operating profit edged up 0.7% year on year to US$3.1 billion.
Net profit fell by less than 1% year on year to US$1.1 billion.
Dover’s free cash flow nearly doubled year on year from US$584.8 million to US$1.14 billion.
A quarterly dividend of US$0.51 was declared, slightly above the US$0.505 paid out a year ago.
Management expects all-in revenue growth of between 2% to 4% for 2024 with free cash flow at between 13% to 15% of revenue.
Kroger (NYSE: KR)
Kroger is a retailer that operates supermarkets and multi-department stores throughout the US.
Shares of the retailer hit a 52-week high of US$56 recently and are up close to 20% YTD.
Revenue for 2023 inched up 1.2% year on year to US$150 billion but operating profit tumbled 25% year on year to US$3.1 billion.
Kroger’s net profit came in 3.6% lower year on year at US$2.2 billion.
The good news is that the retailer’s free cash flow more than doubled year on year to US$2.9 billion.
The supermarket operator paid out a quarterly dividend of US$1.13 for 2023, 14% higher than the US$0.99 paid out in the prior year.
Kroger has done 245 store remodels which incorporates the latest sales initiatives and operational efficiencies.
On the digital front, the retailer is also providing customised offers.
Spotify (NYSE: SPOT)
Spotify offers a platform for music listening where singers and songwriters can post their songs and customers can listen to customised playlists.
The company’s shares hit their 52-week high of US$272.44 recently and are up 36.7% YTD.
Revenue for 2023 stood at US$13.2 billion, up 13% year on year.
However, Spotify reported an operating and net loss of US$446 million and US$532 million, respectively.
Free cash flow, however, leapt from just US$21 million in 2022 to US$674 million in 2023.
The music streaming platform saw monthly active users grow 23% year on year to 602 million and was one million above management’s guidance.
Its premium subscribers (i.e. paying customers) increased by 15% year on year to 236 million.
Thermo Fisher Scientific (NYSE: TMO)
Thermo Fisher serves biotechnology and pharmaceutical companies through diagnostics and the development of therapies using innovative technologies.
The equipment company’s shares hit a 52-week high of US$603.82 recently and are up close to 10% YTD.
Thermo Fisher reported a downbeat result for 2023.
Its revenue fell by 4.6% year on year to US$42.9 billion while operating profit slid 18.3% year on year to US$6.9 billion.
Net profit came in at US$6 billion, 13.7% lower than the previous year’s US$7 billion.
Free cash flow, however, inched up 1.1% year on year to US$7 billion.
Thermo Fisher declared an 11.4% year on year increase in its quarterly dividend to US$0.39 per share.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
