The US market has been on a roll this year.
The technology-heavy NASDAQ Composite Index is up 7.4% year to date while the bellwether S&P 500 Index is up 5.4%, breaching the 5,000 mark for the first time.
Investors who are searching for growth stocks to include in their portfolios should scour through the 52-week high and all-time high list for suitable candidates.
Here are five US growth stocks that recently broke a new all-time high that you may want to include in your buy watchlist.
Applied Materials (NASDAQ: AMAT)
Applied Materials is a materials engineering solutions firm that produces microchips and advanced displays.
It supplies equipment, services and software for the manufacture of semiconductor chips for electronics, and panel displays for computers, smartphones, and televisions.
Shares of Applied Materials have climbed 20.6% year to date, hitting a new all-time high of US$188.21.
The engineering company reported a good set of earnings for 2023.
Revenue inched up 2.8% year on year to US$26.5 billion but operating profit dipped by 1.7% year on year to US$7.7 billion.
Net profit rose 5.1% year on year to US$6.9 billion after a strong fourth quarter result which saw net profit jump 26% year on year to US$2 billion.
Applied Material’s free cash flow surged by 64.7% year on year to US$7.6 billion.
A quarterly dividend of US$0.32 was declared, 23% higher than the US$0.26 paid out a year ago.
2024’s outlook is robust with the company planning more research and development activities to further differentiate its portfolio.
Microsoft (NASDAQ: MSFT)
Microsoft is a technology company that is well-known for its Windows operating system, a suite of software such as Microsoft Word and Excel, and its Edge web browser.
Microsoft’s share price is up 10.4% year to date with shares touching a new all-time high of US$420.82 recently.
For the software company’s first half of 2024 (1H FY2024) ending 31 December 2023, revenue rose 15.2% year on year to US$118.5 billion.
Operating profit improved by 28.7% year on year to US$53.9 billion while net profit jumped 30% year on year to US$44.2 billion.
The company also generated a positive free cash flow of US$29.8 billion, 36.5% higher than the prior year.
Its cloud revenue grew by 24% year on year in the second quarter to US$33.7 billion while LinkedIn sessions increased by 12% with record engagement.
Eli Lilly (NYSE: LLY)
Eli Lilly is a pharmaceutical company dispensing medicines to more than 51 million around the world.
The company tackles diabetes, obesity, Alzheimer’s disease, and difficult-to-treat cancers with its portfolio of drugs.
Eli Lilly’s stock shot up 27.9% year to date, hitting a new all-time high of US$764.05 recently.
The pharmaceutical company saw revenue rise 20% year on year to US$34.1 billion but operating profit dipped by 9% year on year because of a US$3.8 billion charge for acquired drugs.
Net profit declined by 16% year on year to US$5.2 billion as Eli Lilly saw its tax expense more than double year on year to US$1.3 billion.
Despite the fall in profits, Eli Lilly announced a 15% year on year increase in its dividend to US$1.30 per share.
It also released new products Mounjaro and Zepbound in the fourth quarter of 2023 to drive sales further.
Texas Roadhouse (NASDAQ: TXRH)
Texas Roadhouse is a casual dining restaurant chain with over 720 restaurants in 49 states in the US and 10 foreign countries.
The company’s share price rose 11% year to date and its shares hit an all-time high of US$136.02 recently.
Texas Roadhouse reported a strong set of earnings for the first nine months of 2023 (9M 2023).
Revenue rose 15.4% year on year to US$3.5 billion with operating profit increasing by 7.5% year on year to US$270.2 million.
Net profit improved by 10.7% year on year to US$232.4 million.
The restaurant chain also upped its dividend for 9M 2023 by 19.6% year on year to US$1.65 per share.
The business also churned out positive free cash flow of US$146.8 million for 9M 2023.
Parker-Hannifin (NYSE: PH)
Parker-Hannifin is an engineering company and a market leader in motion and control technologies.
Shares of the company rose 13.8% year to date and recently touched an all-time high of US$525.36.
For the first half of fiscal 2024 (1H FY2024) ending 31 December 2023, Parker-Hannifin saw sales rise 8.5% year on year to US$9.7 billion.
Net profit soared 70.2% year on year to US$1.3 billion.
The company also increased its quarterly dividend from US$1.33 to US$1.48, making this its 67th consecutive increase.
For 1H FY2024, Parker-Hannifin generated a positive free cash flow of US$1.1 billion, a near-29% year on year jump from US$890 million a year ago.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
