There is something fascinating about stocks hitting their 52-week highs.
On one hand, the ability to do so should make you curious about the progress of its business..
On the other hand, there is the fear that a sharp fall is just around the corner.
This is why you should focus on the business behind the ticker, rather than looking at the movement of the share price.
Investors are usually optimistic for a good reason.
As a result, share prices are bid up based on better business prospects.
Only in rare cases do we see companies’ share prices shooting up for no apparent reason other than hype.
Simply put — if the business is doing well, its share price should automatically follow.
Here are five stocks that recently hit their year-high and these are names that you could consider adding to your investment watchlist.
Tractor Supply Company (NASDAQ: TSCO)
Tractor Supply is the largest rural lifestyle retailer in the US.
As of 25 September, the company operated 1,967 Tractor Supply stores in 49 states and employed more than 45,000 staff.
The company’s shares recently hit a new all-time high of US$232, and are up 63% year to date.
Tractor Supply reported a set of good results for its fiscal 2021 third quarter (3Q2021).
Net sales increased by 15.8% year on year while comparable store sales jumped by 13.1% year on year.
Operating profit increased by 17.9% year on year to US$297.2 million while net profit was up 17.7% year on year to US$224.4 million.
The company hiked its quarterly dividend by 30% year on year to US$0.52 per share.
Tractor Supply’s business is showing encouraging growth with its sixth consecutive quarter of double-digit comparable store sales increase.
Its loyalty program, Neighbor’s Club, has also garnered more than 22 million members.
Cortina Holdings Limited (SGX: C41)
Cortina is a retailer and distributor of luxury timepieces and accessories.
The group has 24 boutiques located in Singapore, Malaysia, Thailand, Indonesia, Hong Kong and Taiwan.
Cortina’s shares recently hit an all-time high of S$4.60 but have eased around 7% to their current share price of S$4.28.
Despite the slip, shares have more than doubled year to date from S$2.04.
The watch retailer reported a sterling set of earnings for its fiscal 2022 first half (1H2022) ended 30 September 2021.
Revenue surged by 87% year on year to S$324.6 million, boosted by the group’s recent acquisition of Sincere Watch.
Net profit soared by 74% year on year to S$25.4 million.
Looking ahead, Cortina remains confident that it can continue to adapt to trends and grow.
Apple (NASDAQ: AAPL)
Apple’s latest iPhone 13 continues to enjoy strong demand in the US even as a global chip shortage is affecting the production of its competitor’s models.
The technology giant’s shares recently scaled a new all-time high of US$165.7 but have since eased by 9% to US$156.81.
Shares are still up around 21% year to date.
The iPad and Apple Watch manufacturer continued to report strong numbers for its full fiscal 2021 (FY2021) ended 30 September 2021.
Revenue climbed by 29% year on year to US$65.1 billion and services and Mac revenue hit all-time highs. For FY2021, revenue hit US$365.8 million, up 33.3% year on year.
Net profit for FY2021 surged by 65% year on year to US$94.7 billion.
Parkway Life REIT (SGX: C2PU)
Parkway Life REIT is a healthcare REIT that owns a diversified portfolio of 55 properties comprising three hospitals in Singapore, 51 nursing homes in Japan, and strata-titled lots in a specialist clinic in Malaysia.
The REIT’s unit price recently hit S$5.09, an all-time high, and is up around 28% year to date.
For 3Q2021, the REIT reported continued growth in its distribution per unit (DPU).
Gross revenue inched up by 1.2% year on year to S$30.5 million while DPU edged up 0.8% year on year to S$0.0356.
The REIT has boasted an unbroken track record of increasing its recurring DPU since its listing in 2007.
With gearing at 34.9% and a very low cost of debt of just 0.53%, the REIT has ample debt headroom to make more accretive acquisitions.
Etsy (NASDAQ: ETSY)
Etsy is an e-commerce company focused on unique handcrafted and vintage items that are not found on other platforms.
The company’s shares recently hit an all-time high of US$307.75 but have eased around 5% to US$291.38.
However, shares are still up close to 70% year to date.
Etsy’s 3Q2021 earnings showed continued growth in both revenue and gross merchandise sales (GMS).
Revenue and GMS both rose 17.9% year on year to US$532.4 million and US$3.1 billion, respectively.
For 9M2021, revenue increased by 45.4% year on year to US$1.6 billion while net profit surged by 65.4% year on year to US$332 million.
GMS per active buyer continues to climb and is up 20% year on year to US$132.
Among the key initiatives, Etsy has a Star Seller program focused on improving the reliability of shopping on its platform.
Elsewhere, the company is also slowly transitioning customers from its web app to its mobile app for a better customer experience.
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Disclaimer: Royston Yang owns shares of Tractor Supply Company and Apple.