Stocks making new highs tend to make even higher highs, particularly when their earnings outlooks have improved.
By targeting stocks breaking out or nearing fresh highs, investors can inject themselves into bullish trends where buyers are in control.
With the market’s rebound in 2023, many stocks are now near or breaking 52-week highs, including The Andersons ANDE, Abercrombie & Fitch ANF, and Consolidated Water Co. CWCO.
In addition to seeing favorable price action, all three have enjoyed positive earnings estimate revisions, indicating optimism among analysts. Let’s take a closer look at each.
Abercrombie & Fitch
Abercrombie & Fitch operates as a specialty retailer of many types of premium, high-quality casual apparel for men, women, and kids through a vast store network. Analysts have taken their earnings expectations notably higher, landing the stock into a Zacks Rank #1 (Strong Buy).
As we can see below, the revisions trend has been particularly bullish for its upcoming release expected in late November.
The apparel titan posted a blowout quarter in its latest print, exceeding the Zacks Consensus EPS Estimate by nearly 750% and posting an 11% sales surprise. The market reacted well to the results, with ANF shares finding plenty of buyers post-earnings.
In fact, ANF shares have seen bullish activity post-earnings in back-to-back releases.
Consolidated Water Co.
Consolidated Water, a current Zacks Rank #1 (Strong Buy), is involved in developing and operating sea-water desalination plants and water distribution systems in water-scarce areas. The company’s earnings outlook has improved across the board in a big way.
Similar to ANF, Consolidated Water shares have seen bullish activity following back-to-back releases, as we can see illustrated below. Regarding the most recent quarter, the company posted a sizable 110% EPS beat and reported revenue nearly 50% ahead of expectations.
CWCO shares also provide a passive income stream, currently yielding a respectable 1.2% annually.
The Andersons
The Andersons is a regional grain merchandiser with diversified businesses in agriculture, plant nutrient formulation and distribution, and more. Like those above, the company’s earnings outlook has shifted positively, landing the stock into a favorable Zacks Rank #1 (Strong Buy).
ANDE shares aren’t stretched regarding valuation, further reflected by the Style Score of “A” for Value. Shares presently trade at a small 0.1X forward price-to-sales, beneath its Zacks Agriculture – Products industry average.
And for those seeking income, ANDE shares have that covered; ANDE shares currently yield 1.4% annually with a sustainable payout ratio sitting at 23% of the company’s earnings. Dividend growth is there, too, with the payout growing by a modest 2% annualized over the last five years.
Bottom Line
Stocks nearing or breaking 52-week highs reflect considerable momentum, with positive earnings estimates from analysts commonly providing the fuel needed to continue climbing.
And for those interested in stocks seeing notable buying pressure, all three above – The Andersons ANDE, Abercrombie & Fitch ANF, and Consolidated Water Co. CWCO – precisely fit the criteria.
In addition to favorable price action, all three have seen their near-term earnings outlooks shift positively.
The Andersons, Inc. (ANDE): Free Stock Analysis Report
Abercrombie & Fitch Company (ANF): Free Stock Analysis Report
Consolidated Water Co. Ltd. (CWCO): Free Stock Analysis Report
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This article originally appeared on Zacks
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