In this article, we will list the 14 best 52-week high stocks to buy according to short sellers.
The U.S. stock market has been on a roll, with major indices clocking double-digit gains even with the U.S. economy showing signs of weakness. The gains have come from investors shrugging off the uncertainty around the U.S. presidential election and monetary policy to continue betting on various counters.
Consequently, the S&P 500 is already up more than 17% for the year, driven by gains in the communication services and financial services sectors. Likewise, technology stocks have also contributed to driving the overall market high as investors continue paying close attention to some of the big plays around artificial intelligence.
READ ALSO: 18 Best 52-Week Low Stocks to Buy Now According to Short Sellers and Top 10 ADR Stocks To Buy According to Hedge Funds.
The tech-heavy NASDAQ index, which gained 18% for the year, comes on growing expectations that the U.S. Federal Reserve has hit the peak of its monetary policy tightening spree. With expectations that the central bank will start cutting interest rates by as much as 50 basis points, according to CNBC, investors’ sentiments around tech stocks have improved significantly for September.
Investors remain optimistic about the stock market outlook heading into year end because of the positive impact of low interest rates. The Fed’s cutting interest rates will result in a significant drop in borrowing costs, which bodes well for capital-intensive businesses looking to access cheap capital.
The central bank aims to achieve a soft landing for the economy. In this situation, inflation must return to the 2% goal without the U.S. economy sliding into a downturn. If the central bank reduces interest rates prematurely, it faces the danger of a severe surge in inflation. Conversely, if it reduces rates too late, it might cause a severe recession.
While interest rate cuts are expected to offer a much-needed boost, disappointing earnings, and lackluster guidance could curtail market gains, especially for the best 52-week high stocks to buy, according to short sellers.
Several companies are under immense pressure after their valuation skyrocketed amid the artificial intelligence frenzy. Consequently, any concerns about slow earnings and revenue growth should send jitters, triggering significant pullbacks.
Adam Turnquist, the head of technical strategy at LPL Financial, mentioned that the S&P 500 typically experiences about three annual declines of at least 5%. On average, it has seen around one 10% decline each year.
“Expressing this data another way, 94% of years since 1928 have experienced a pullback of at least 5%, and 64% of years have had at least one 10% correction,” Turnquist said, according to USA Today. “We believe that how common these occurrences are should provide comfort to equity investors, allowing them to be patient.”
Looking forward to the rest of the year, experts predict that the best 52-week high stocks to buy, according to short sellers, could keep rising, but they caution about the dangers of premium valuations.
At the same time, financial experts believe that although economic expansion will slow down in the next few months, they don’t see a situation that could cause a recession.
Source:Pixabay
Our Methodology
To compile the list of the best 52-week high stocks to buy now, according to short sellers, we first screened for stocks that were trading near their 52-week highs (0-10% range) using the Finviz stock screener. Next, we looked at their short interest and picked the stocks with the lowest short interest that were the most popular among elite hedge funds. The stocks are ranked in descending order based on their short interest.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Best 52-Week High Stocks to Buy Now According to Short Sellers
14. Texas Instruments Incorporated (NASDAQ:TXN)
52 Week Range: $139.48 – $214.41
Current Share Price: $211.09
Short interest rate: 2.04%
Number of Hedge Fund Holders: 50
Texas Instruments Incorporated (NASDAQ:TXN) is a technology company that designs, manufactures, and sells semiconductors to electronic designers and manufacturers. It is one of the best 52-week high stocks to buy, according to short sellers, for any investors eyeing exposure amid the artificial intelligence frenzy. The stock is currently trading close to its 52-week highs as investors react to strong demand for its semiconductor products and a positive outlook that affirms underlying growth.
Texas Instruments Incorporated (NASDAQ:TXN) has set out on a long-term spending plan to increase its investment over a four-year period, expected to reach approximately $5 billion annually. The goal was to allocate funds towards building facilities in the U.S. to produce essential semiconductors used in various industrial and automotive sectors to reduce the expense per chip. The firm has chosen to focus more on the industrial and automotive markets, which made up 75% of its income in 2023 compared to just 40% in 2014.
The company delivered mixed second-quarter results. Revenues decreased 16% yearly to $3.82 billion, mostly due to weakness in the automotive and industrial segments. However, earnings per share of $1.22 were above consensus estimates of $1.16.
Texas Instruments Incorporated (NASDAQ:TXN) exited the quarter with a cash flow of $6.4 billion, affirming the core business’s strength and the product portfolio’s quality. Free cash flow, on the other hand, stood at $1.5 billion. Owing to the strong balance sheet, the company announced a 55 increase in its dividend payout last year, marking the 20th straight year of a dividend hike.
While the company has been facing revenue headwinds in recent quarters, it has affirmed its commitment to returning value to shareholders, as evidenced by the 2.50% dividend yield. Its dividend payout currently stands at about 90%.
At the end of Q2 2024, 50 hedge funds in Insider Monkey’s database owned stakes in Texas Instruments Incorporated (NASDAQ:TXN), up from 49 in the preceding quarter. With more than 4.2 million shares, First Eagle Investment Management was the company’s most significant stakeholder in Q2.
Here is what The London Company said about Texas Instruments Incorporated (NASDAQ:TXN) in its Q2 2024 investor letter:
“Texas Instruments Incorporated (NASDAQ:TXN) – TXN rallied in 2Q despite declining revenue in its latest update. TXN is beginning to see some encouraging signs of destocking nearing an end and some sub segments of the market are experiencing improving demand. TXN continued to spend on capex and should begin to see positive benefits to cash flow next year from the CHIPS Act.”
13. Netflix Inc. (NASDAQ:NFLX)
52 Week Range: $344.73 – $711.33
Current Share Price: $692.42
Short interest rate: 1.72%
Number of Hedge Fund Holders: 103
Netflix Inc (NASDAQ:NFLX) is an entertainment giant that offers streaming services for T.V. series, documentaries, feature films, and games across various genres and languages. The streaming giant has risen to three-year highs due to an aggressive password crackdown and the marketing of an ad-supported subscription plan.
While the company generates a significant chunk of its revenues from subscription plans, its push into the advertising scene has cemented its position as one of the best 52-week high stocks to buy, according to short sellers. Revenues in the second quarter were up 17% to $9.56 billion, as net income increased to $2.1 billion from $1.4 billion a year ago.
A confirmation that the company has secured a 150% year-over-year increase in upfront advertising commitment is one factor poised to diversify Netflix Inc (NASDAQ:NFLX)’s revenue streams. Netflix, which has recently stopped offering its most affordable ad-free plan to encourage more people to watch its ads, has traditionally approached advertising cautiously.
So far, the platform has kept its ad prices high, at $65 per thousand views (CPM) compared to Disney Plus’ $45.11 CPM. Additionally, unlike other services, Netflix Inc (NASDAQ:NFLX) has restricted the number of ads shown on its platform and requires viewers to choose to see them.
To enhance its advertising revenue, Netflix announced it intends to start winding down its ad-free basic plan in the U.S. and France. The streaming company further mentioned that incorporating ads into its services enables it to provide more affordable options for its customers and generates extra income for the business.
Given Netflix Inc (NASDAQ:NFLX)’s massive customer base, advertising is poised to be a key driver of value. The company added 8 million new paying subscribers in the second quarter, taking its global streaming paid memberships to 277.65 million.
As of the end of the second quarter of 2024, 103 hedge funds out of the 912 funds tracked by Insider Monkey had stakes in Netflix Inc (NASDAQ:NFLX). The most notable stake in Netflix Inc (NASDAQ:NFLX) is owned by Ken Fisher’s Fisher Asset Management which owns a $2.94 billion stake in Netflix Inc (NASDAQ:NFLX).
Here is what Polen Focus Growth Strategy said about Netflix, Inc. (NASDAQ:NFLX) in its Q2 2024 investor letter:
“Finally, we trimmed Netflix, Inc. (NASDAQ:NFLX) mostly due to valuation but also as a source of funds to add to the new position in Shopify. As a reminder, we added to our position in August 2022 amid broad concerns about the company’s ability to grow and monetize shared passwords. We expected Netflix to show progress in monetizing shared passwords, leading to robust free cash flow generation. This is now playing out and is appreciated by the market. Hence, given the balance of growth and valuation, we felt it was appropriate to reduce our exposure to a more normal weight.”
12. T-Mobile US, Inc. (NASDAQ:TMUS)
52 Week Range: $132.40 – $205.28
Current Share Price: $200.46
Short interest rate: 1.43%
Number of Hedge Fund Holders: 64
T-Mobile US, Inc. (NASDAQ:TMUS) is a communication services company that offers voice, messaging, and data services. It utilizes its 4G LTE and 5G networks to deliver these services. It also provides wireless devices, including smartphones, wearables, and tablets.
The company has updated its full-year expectations for both customers and cash inflows as it achieves top-tier growth in customer base and cash flow throughout the core business. This included reaching the milestone of 100 million postpaid customers and setting a new record for the highest number of postpaid customers added in the second quarter.
T-Mobile US, Inc. (NASDAQ:TMUS) successfully converted its exceptional customer growth into leading market performance in service revenue and profit margins and achieved its best cash flow results to date, returning $3.0 billion to shareholders in the second quarter.
During the second quarter, its total services revenue grew 4.4% compared to the previous year, reaching $16.43 billion. Its earnings before interest, taxes, depreciation, and amortization (EBITDA) also rose 8.8% from the same quarter last year, amounting to $8.05 billion. Furthermore, the company saw a 31.7% and 33.9% increase in its net profit and earnings per share (EPS) from the previous year, reaching $2.93 billion and $2.49, respectively.
T-Mobile US, Inc. (NASDAQ:TMUS)’s postpaid phone subscriber user base increased by 770,000, surpassing the 642,000 mark that was initially projected. It also reported a growth of 406,000 customers for its 5G broadband service compared to the year before.
The company has set a goal of reaching between 7 million and 8 million wireless broadband users by the end of the year. As of June 30, T-Mobile had already surpassed this target with over 5.4 million wireless broadband subscribers.
T-Mobile US, Inc. (NASDAQ:TMUS) introduced its Partner plus program, designed to lower the price of 5G laptops and 5G Business Internet for companies. Through this initiative, TMUS aims to overcome the financial obstacle to 5G technologies, emphasizing its advanced capabilities and enhanced security features, thereby positioning itself for significant expansion and increased attractiveness in the market.
The company exited the second quarter with $4.4 billion in adjusted free cash flow, representing a 54% year-over-year increase. With the Increase, T Moiled remains well-positioned to support its dividend program that currently yields 1.29%.
In the second quarter of 2024, the number of hedge funds with stakes in T-Mobile US, Inc. (NASDAQ:TMUS) decreased to 64 from 69 in the previous quarter, according to Insider Monkey’s database of 912 hedge funds. Warren Buffett’s Berkshire Hathaway emerged as the largest stakeholder among these hedge funds during this period.
In its Q3 2023 investor letter, ClearBridge Dividend Strategy shared the following insights on T-Mobile US, Inc. (NASDAQ:TMUS):
“During the quarter we initiated positions in two new names: T-Mobile US, Inc. (NASDAQ:TMUS) and Gilead Sciences. T-Mobile is the best-in-class player in the wireless space, delivering the strongest growth with the lowest cost structure and the best consumer proposition. T-Mobile’s strength is rooted in its advantaged competitive position. Its superior spectrum holdings enable it to provide better wireless service at meaningfully lower cost. T-Mobile’s annual capital expenditures run about $10 billion, on the order of half the amount its peers must spend. Due to its lower cost structure, T-Mobile can undercut its competitors on price while still generating compelling profitability and returns.
This combination — superior service at lower prices — has enabled T-Mobile to outgrow its competition. In the three years since completing its merger with Sprint, T-Mobile has grown its post-paid subscriber base by about 22%. Over the same period, AT&T’s has grown by about 14%, while Verizon’s by less than 5%.
Given the high fixed-cost nature of the wireless business, these steady increases in revenue growth have led to outsize increases in profits and free cash flow. Free cash flow in 2023 is expected to come in around $13.5 billion, up from less than $8 billion last year. In 2024 free cash flow is expected to grow by over 20% to approximately $17 billion — providing a 10% yield based on today’s stock price.
We have long admired T-Mobile, but until recently the stock did not pay a dividend. The company announced its inaugural dividend in September, and we bought the stock shortly thereafter. The initial yield is about 2% and it is expected to grow about 10% per year.”
11. American Express Company (NYSE:AXP)
52 Week Range: $140.91 -$ 261.57
Current Share Price: $259.84
Short interest rate: 1.33%
Number of Hedge Fund Holders: 68
American Express Company (NYSE:AXP) is a financial services company that operates an integrated payment system. Its products and services include credit cards, charge cards, banking, other payment and financing products, and network services. The company charges an annual fee and transaction fees on its cards. The fee model drives loyalty and profitability.
It remains one of the best 52-week high stocks to buy, according to short sellers, given that its core business revolves around an affluent client base that has money to make purchases regardless of the economic situation.
The company has been flying high, expanding its operations and bolstering revenues by over 50% since 2021. Its revenue in the second quarter was up 8.50% to $16.3 billion, driven by higher net interest income, increased Card Member spending, and continued strong growth in card fees. Additionally, American Express Company (NYSE:AXP) is also benefiting from adding 23 million cards in Q2 and expanding to over 30 million merchants.
Optimism for American Express’s future is not unfounded, given the tremendous opportunities for growth created by the rise of digital payments. As the use of cash and checks declines, this creates a favorable environment for American Express Company (NYSE:AXP) to grow its customer base and the amount of payments it processes over time.
Furthermore, this company is excelling in attracting a younger demographic. These customers account for more than 60% of the new consumer accounts and offer a higher potential for lifetime value to American Express compared to acquiring an older cardholder.
American Express Company (NYSE:AXP) stock trades at a forward price-to-earnings ratio of 19, which is a huge premium. However, this is expected of a high-quality enterprise backed by solid underlying fundamentals. Additionally, it offers a 1.09% dividend yield.
In Q2 2024, the number of hedge funds in Insider Monkey’s database with stakes in American Express Company (NYSE:AXP) increased to 68, up from 66 in the previous quarter. The total value of these stakes is approximately $38.48 billion, with Warren Buffett’s Berkshire Hathaway being the largest stakeholder.
Artisan Select Equity Fund commented on American Express Company (NYSE:AXP) in its Q1 2024 investor letter as follows:
“American Express Company (NYSE:AXP) shares rose 22% this quarter. This is an interesting case study given our earlier discussion about inflation. American Express operates one of the largest credit card networks in the world. Its revenue is largely a function of a fee rate applied to the dollar value of goods and services that are transacted through its network. That dollar value is, of course, nominal. As inflation pushes up the value of those goods and services as it has for the past few years, American Express will capture that value through its fee structure. The past few years inflation has clearly been a benefit. Aside from its inherent inflation protection, the business is a very strong one. Payments continue to shift toward electronic forms, benefiting American Express. It also has a strong brand that attracts loyal and highly profitable customers that are the envy of the industry. Recent results have been strong with revenues moving nicely ahead of GDP.”
10. AbbVie Inc (NYSE:ABBV)
52 Week Range: $135.85 – $198.30
Current Share Price: $195.18
Short interest rate: 1.14%
Number of Hedge Fund Holders: 67
AbbVie Inc (NYSE:ABBV) is a healthcare company that develops, manufactures, and sells pharmaceutical products worldwide. It is one of the biggest drug makers, best known for Humira, an injection for autoimmune and intestinal Behcet’s disease. It also offers Rinvoq for treating rheumatoid and psoriatic arthritis.
It is one of the best 52-week high stocks to buy, according to short sellers, owing to its strong pipeline of drugs and strategic acquisitions that continue to strengthen its long-term prospects and growth metrics. The European Commission’s approval of TEPKINYL, the company’s novel treatment for adult patients with follicular lymphoma, is one of the factors driving the stock higher.
In addition to strengthening its drug pipeline, AbbVie Inc (NYSE:ABBV) has acquired Cerevel therapeutics, significantly expanding its neuroscience portfolio. With the acquisition, the company gains access to treatments for conditions such as schizophrenia and Parkinson’s disease.
The company delivered solid second-quarter results, which were attributed to the significant momentum of the ex-Humira growth platform, continued investments in the business, and pipeline progress. Consequently, the company is well-positioned to deliver our top-tier long-term outlook.
Revenues in the quarter were up 4.3% to $14.46 billion, as diluted earnings per share dropped 32% to $0.77 a share. Even though there was a significant drop in earnings, the business has shown earnings growth of 4.31% each quarter, suggesting a possible recovery in its sales path. Moreover, the company maintains a robust gross profit margin of 69.66%, highlighting its skill in controlling expenses.
AbbVie Inc (NYSE:ABBV) is trading at a forward price to earnings growth of 18 and offering a 3.18% dividend yield. Insider Monkey’s analysis of 912 hedge fund portfolios shows that 67 hedge funds reported owning stakes in AbbVie Inc (NYSE:ABBV) as of the end of the June quarter.
Polen Focus Growth Strategy made the following comment about AbbVie Inc. (NYSE:ABBV) in its Q2 2024 investor letter:
“In the second quarter, the top relative contributors to the Portfolio’s performance were all names we do not hold: Home Depot, Meta Platforms, and AbbVie Inc. (NYSE:ABBV). AbbVie fell on the back of results that failed to allay concerns around continuing biosimilar threats to its very large, blockbuster arthritis drug, Humira, which went off patent last year.”
9. Intuitive Surgical, Inc. (NASDAQ:ISRG)
52 Week Range: $481.25 – $491.56
Current Share Price: $487.17
Short interest rate: 1.05%
Number of Hedge Fund Holders: 67
Intuitive Surgical, Inc. (NASDAQ:ISRG) is a healthcare company that develops, manufactures, and sells products that enable physicians and healthcare providers to enhance access to minimally invasive care. It offers the da Vinci Surgical System, which enables complex surgery using a minimally invasive approach.
According to short sellers, the global technology leader in robotic-assisted minimally invasive surgery is one of the best 52-week high stocks to buy. It is poised for growth in the coming quarters, courtesy of its strength in robotics. Last year, the unit recorded a 14% increase in revenues, attributed to rising demand for its instruments and accessories for minimally invasive procedures.
Intuitive Surgical, Inc. (NASDAQ:ISRG) increasingly benefits from the transition towards less invasive procedures, driving up the need for its da Vinci robotic surgical systems. A favorable expansion forecast, backed by strong basic characteristics, provides a favorable environment for assessing any potential investment.
In the second quarter, the company surpassed 9,800 installed systems. The number of systems used increased by 14% annually in the quarter, indicating a strong growth trend. This is because the majority of installations are either new or add-ons rather than replacing existing systems. Its adjusted EPS of $1.78 surpassed consensus estimates of $1.54 on revenues increasing 14.2% to $2 billion.
Growth in procedure volume, higher price realization for procedures, and increased system placements are expected to propel the company’s revenue in the future. At the same time, the introduction of Intuitive Surgical, Inc. (NASDAQ:ISRG)’s newest robotic system, the da Vinci 5, showed a high interest in the company’s latest offering. After the da Vinci 5 was introduced in March, the company installed 70 units in the second quarter, significantly increasing from the eight units installed in the first quarter.
In the second quarter, 67 hedge funds held long positions in Intuitive Surgical, Inc. (NASDAQ:ISRG), with a combined stake value of $6.4 billion.
Here is what Baron Funds said about Intuitive Surgical, Inc. (NASDAQ:ISRG) in its second-quarter 2024 investor letter:
“Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures the da Vinci Surgical System, a robotic surgical system used for minimally invasive procedures. The stock performed well due to excitement about the company’s new robotic surgical system, the da Vinci 5, which offers enhanced imaging, force feedback, and other improvements. We continue to believe Intuitive has durable competitive advantages and will remain the market leader in robotic surgery. We think the company has a long runway for growth as more procedures are performed with the company’s equipment.”
8. The Procter & Gamble Company (NYSE:PG)
52 Week Range: $168.59-$ 171.20
Current Share Price: $169.06
Short interest rate: 0.93%
Number of Hedge Fund Holders: 64
The Procter & Gamble Company (NYSE:PG) is a consumer defensive company that provides branded consumer packaged goods. Its beauty segment offers conditioners, shampoos, styling aids, and treatments, while the Grooming segment provides blades, razors, shave products, and appliances. The Health Care segment offers toothbrushes and other oral care products.
The Procter & Gamble Company (NYSE:PG) reported that its second-quarter earnings fell short of expectations due to lackluster sales in China. The company’s net income for the period, which includes $3.14 billion, or $1.27 per share, was a drop from the previous year’s $3.38 billion, or $1.37 per share.
Total sales for the quarter were unchanged from the previous year. The Procter & Gamble Company (NYSE:PG)’s core sales saw a modest increase of 2% for the quarter. Despite these lackluster sales figures, the company saw its sales volume grow for the first time in over two years. This increase in volume was driven by stronger demand for its personal care, health care, and home care products. Each of these areas saw a 2% increase in sales for the quarter.
The Procter & Gamble Company (NYSE:PG)’s focus on expanding its market presence has increased its market share, and its online sales have also experienced a notable rise of 9%. Even though it has encountered obstacles in China, the Middle East, and Argentina, it continues to be dedicated to its approaches of dominance, efficiency, innovative change, and a strong team to promote future expansion.
The Procter & Gamble Company (NYSE:PG)’s trading near its 52-week highs affirms the bullish sentiment among investors about its long-term prospects. That is in part because the company is in a solid financial position, with adjusted free cash flow of over $3 billion, which allows it to maintain support for its 2.38% dividend yield.
According to Insider Monkey’s database of Q2 2024, 64 hedge funds owned stakes in The Procter & Gamble Company (NYSE:PG), down from 69 in the previous quarter. These stakes have a total value of over $7.73 billion.
7. JPMorgan Chase & Co (NYSE:JPM)
52 Week Range: $135.19 -$222.21
Current Share Price: $221.29
Short interest rate: 0.89%
Number of Hedge Fund Holders: 111
JPMorgan Chase & Co. (NYSE:JPM) is a financial services company that offers deposit investment and lending products. It also offers securities services, including custody, fund accounting and administration, and securities lending products for asset managers.
JPMorgan Chase & Co. (NYSE:JPM) is one of the best 52-week high stocks to buy, according to short sellers as one of the biggest banks with assets worth over $4 trillion. With operations in over 60 countries, it is one of the most diversified investment plays in the financial sector.
The financial services giant delivered solid second-quarter results, with revenues increasing 20% to $51 billion and net income up 25% to $18.1 billion. JPMorgan generated $2.3 billion in investment banking fees, as equities trading revenue jumped 21% to $3 billion on solid derivatives results. Fixed income trading jumped 5% to $4.8 billion, matching the estimate.
JPMorgan Chase & Co. (NYSE:JPM) is a solid financial institution that has significantly grown its investment banking division and consumer banking activities. Additionally, CEO and Chairman Jamie Dimon is managing a successful operation, achieving a substantial return on equity and return on assets. Its return on equity stood at 23% in the second quarter, while return on average tangible common shareholders’ equity (ROTCE) came in at 28%.
While rewarding shareholders with a dividend of $1.15 a share, it offers a dividend yield of 2.14%, which is much higher than the average yield of 1.58% for the S&P 500. Its annualized dividend of $4.60 is up by 13.6% for the year, affirming the company’s commitment to returning value to shareholders.
In the second quarter of 2024, JPMorgan Chase & Co. (NYSE:JPM) saw decreased interest from hedge funds, with 111 funds holding stakes, down from 112 in the previous quarter, according to Insider Monkey’s database. The total value of these stakes exceeds $6.98 billion.
6. Johnson & Johnson (NYSE:JNJ)
52 Week Range: $143.13 – $165.78
Current Share Price: $164.23
Short interest rate: 0.82%
Number of Hedge Fund Holders: 80
Johnson & Johnson (NYSE:JNJ) is a healthcare company that researches, develops, manufactures, and sells various products worldwide. Its Innovative Medicine segment offers products for various therapeutic areas, such as immunology, including rheumatoid arthritis, psoriatic arthritis, and inflammatory bowel disease.
Johnson & Johnson (NYSE:JNJ) is one of the best 52-week high stocks to buy, according to short sellers, owing to its extensive and diversified portfolio of drugs and medical equipment. It also boasts a global presence and an extensive history in maneuvering the medical sector, providing considerable benefits.
Johnson & Johnson (NYSE:JNJ) boasts over 10 top-selling drugs within its drug division. The company can manage interruptions in one of its divisions without facing major financial setbacks. In the second quarter, sales of pharmaceuticals and medical devices rose 4% to $22.45 billion, beating estimates of $22.38 and affirming underlying growth.
Adjusted net income, on the other hand, totaled $6.84 billion or $2.82 a share, beating consensus estimates of $6.59 billion or $2.71 a share. The better-than-expected second-quarter results were driven by strong sales of drugs, including cancer treatment Darzalex and blockbuster psoriasis drug Stelara.
Owing to strong demand for the company’s drugs and equipment, Johnson & Johnson (NYSE:JNJ) has raised its full-year guidance and now expects sales to range between $89.2 billion and $89.6 billion, compared to $88.7 billion and $89.1 billion.
Johnson & Johnson (NYSE:JNJ) is a standout dividend stock. The company has consistently raised its dividends for an impressive 62 years, and its projected yield is currently over 3%. Johnson & Johnson is an excellent choice for a blue-chip dividend stock to purchase this month.
As of the end of June 2024, 80 hedge funds tracked by Insider Monkey were bullish on Johnson & Johnson (NYSE:JNJ), holding stakes totaling nearly $4.7 billion.
5. Philip Morris International Inc. (NYSE:PM)
52 Week Range: $87.23 – $123.05
Current Share Price: $122.55
Short interest rate: 0.61%
Number of Hedge Fund Holders: 70
Philip Morris International Inc. (NYSE:PM) is a consumer defensive investment play that operates as a tobacco company. It strives to deliver a smoke-free future backed by a portfolio of products outside of the tobacco and nicotine sector. It is one of the stocks trading near its 52-week highs, signaling market confidence about its long-term prospects.
The company was on a roll in the second quarter, with both organic revenue and operating earnings hitting all-time highs. The firm’s products without tobacco, including IQOS and ZYN, have demonstrated considerable growth in regions such as Japan, Europe, and the U.S.
Even though challenges with the supply chain have impacted the ZYN product in the U.S. and delayed obtaining regulatory approval in Taiwan, the company has increased its projections for total revenue and operating earnings and adjusted diluted earnings per share for the full year.
During its second quarter, Philip Morris International Inc. (NYSE:PM) experienced robust expansion, with its organic revenue climbing 9.6% to $9.5 billion and adjusted earnings per share rising 10.6% to $1.77. The expansion within its smoke-free product lines was particularly noteworthy, with organic revenue surging by 18% and gross profit increasing by 22%. As the company’s focus shifts towards smoke-free offerings, it is expected to fuel further revenue growth.
Philip Morris International Inc. (NYSE:PM)’s shares have surged as the firm has excelled in shifting towards products without tobacco compared to competitors such as Altria and British American Tobacco. Approximately 40% of its income originates from advanced offerings such as Zen nicotine pouches and IOS heat-not-burn devices. Furthermore, it has secured the right to distribute its sticks in the U.S., creating a vast market for its tobacco-free products.
Philip Morris International Inc. (NYSE:PM) has revealed plans to invest $232 million to enlarge its manufacturing plant in Owensboro, Kentucky. This expansion, slated for completion by the second quarter of 2025, aims to meet the growing demand for its ZYN nicotine pouches. The investment also follows the company’s commitment to establish a new facility for nicotine pouch production in Aurora, Colorado.
Philip Morris International Inc. (NYSE:PM) appears to be trading at a discount, with a price-to-earnings multiple of 19, while offering a 4.24% dividend yield.
By the end of the second quarter, 70 of the 912 hedge funds tracked by Insider Monkey held shares in Philip Morris International Inc. (NYSE:PM). The largest shareholder was GQG Partners, managed by Rajiv Jain, with a $3.67 billion investment in the company.
4. Berkshire Hathaway Inc. (NYSE:BRK-B)
52 Week Range: $330.58 – $469.85
Current Share Price: $468.37
Short interest rate: 0.57%
Number of Hedge Fund Holders: 120
Berkshire Hathaway Inc. (NYSE:BRK-B) is a financial services company in the insurance, freight, rail transportation, and utility business. It offers property, casualty, life, accident, health insurance, and reinsurance and operates railroad systems in North America.
It boasts a diversified portfolio of wholly owned operating businesses that provide it with a reliable stream of income through dividends. This conglomerate encompasses a range of entities, including insurance operations, Railways, Berkshire Hathaway Energy, and many others.
Berkshire Hathaway Inc. (NYSE:BRK-B)’s core business is characterized by robust and steadily increasing earnings. In the second quarter, the conglomerate reported operating earnings of $11.6 billion, marking a 15% increase compared to the previous year.
The company retains 100% of its earnings, which it strategically allocates towards enhancing shareholder value. This is achieved through the repurchase of its own stock, the acquisition of additional operating entities, and the investment in its investment portfolio. Berkshire Hathaway has a commendable track record of reinvesting its retained earnings from its operating subsidiaries to generate greater shareholder returns.
Berkshire Hathaway Inc. (NYSE:BRK-B) is one of the best 52-week high stocks to buy, according to short sellers, and it has a solid track record in generating shareholder value. While trading at a price-to-earnings multiple of 20, the company ended the second quarter with a cash haul of $277 billion that it can use to pursue investments to generate shareholder value.
By the end of the second quarter, 120 hedge fund portfolios held Berkshire Hathaway Inc. (NYSE:BRK-B), up from 119 in the previous quarter, according to our database.
Here is what The London Company Large Cap Strategy said about Berkshire Hathaway Inc. (NYSE:BRK-B) in its first quarter 2024 investor letter:
“Berkshire Hathaway Inc. (NYSE:BRK-B) – Insurance was once again a bright spot in Berkshire Hathaway’s (BRK.B) 4Q earnings; GEICO showed meaningful margin improvement. The company once again sold some securities in the quarter, resulting in near all-time highs in the balance of cash & short- term investments. Overall, we continue to appreciate BRK.B for their financial strength, investment acumen, and disciplined management.”
3. Walmart Inc. (NYSE:WMT)
52 Week Range: $49.85 – $ 76.45
Current Share Price: $76.08
Short interest rate: 0.50%
Number of Hedge Fund Holders: 95
Walmart Inc. (NYSE:WMT) is the world’s largest retail outlet, operating supercenters, supermarkets, hypermarkets, warehouse clubs, and discount stores. It has grown beyond its initial role as a conventional store-based retailer and transformed into a multi-channel entity.
This transformation is highlighted by its strategic mergers and acquisitions, collaborations, delivery initiatives like Walmart + and Express Delivery, and investments in digital e-commerce platforms like Flipkart. These moves enable the company to adapt to the evolving retail landscape and maintain its competitive edge against competitors such as Amazon and Target.
Walmart Inc. (NYSE:WMT) is one of the best 52-week high stocks to buy, according to short sellers on its latest earnings report, impressing Wall Street while affirming underlying growth. Revenues in the quarter came at record highs of $169 billion, up 4.8%, beating estimates of $168 billion. E-commerce sales saw a remarkable 21% growth worldwide, reflecting Walmart’s expanding digital reach. In the end, the company posted earnings of $0.67 a share, above estimates of $0.65.
Looking ahead, the retailer anticipates its third-quarter net sales will grow by between 3.25% and 4.25%, accompanied by an increase in operating income of between 3.0% and 4.5%. For the entire fiscal year 2025, net sales are expected to see a growth range of 3.75% to 4.75%, with an adjusted operating income projected to rise between 6.5% and 8.0%.
Walmart Inc. (NYSE:WMT)’s solid performance in different areas, such as e-commerce and its membership program, underscores its strong business model and optimistic future prospects.
While trading close to its 52-week highs, Walmart trades at a price-to-earnings multiple of 31, slightly above the consumer cyclical average P/E of 24. Nevertheless, it rewards investors with a solid 1.09%, affirming why it is one of the best 52-week high stocks to buy, according to short sellers.
By the end of Q2 2024, 95 hedge funds held stakes in Walmart Inc. (NYSE:WMT), totaling $9.19 billion. As of June 30, Fisher Asset Management was the largest shareholder, with a position valued at $3.08 billion.
2. AstraZeneca PLC (NASDAQ:AZN)
52 Week Range: $60.47 – $87.55
Current Share Price: $87.45
Short interest rate: 0.27%
Number of Hedge Fund Holders: 49
Headquartered in Cambridge, the United Kingdom, AstraZeneca PLC (NASDAQ:AZN) is a biopharmaceutical company focusing on discovering, developing, and commercializing prescription medicines. The company boasts of a diversified product portfolio that includes 12 blockbuster medicines with sales exceeding $1 billion in number of indications.
It remains one of the best 52-week high stocks to buy, according to short sellers, given that the new products it has launched in recent years have done well. Additionally, the company has made strategic acquisitions to strengthen its product portfolio and competitive advantage. The investments have been the catalyst behind the company’s organic revenue growth rate of 10.45% over the past 12 months.
Oncology remains AstraZeneca PLC (NASDAQ:AZN)’s biggest segment and a key driver of value. Consequently, it has been enhancing its cancer treatment offerings by expanding the indications for current drugs and advancing its pipeline of cancer therapy candidates. Cancer treatments account for approximately 40% of AstraZeneca’s overall revenues, with a 17% increase in 2021, a 19% rise in 2022, and a 21% growth expected in 2023.
AstraZeneca PLC (NASDAQ:AZN) is also advancing rapidly into various fields such as heart health, immune system research, and uncommon illnesses. A notable achievement includes the approval of Voydeya, a medication for managing hemolysis outside of the blood vessels in adults suffering from the rare condition known as paroxysmal nocturnal hemoglobinuria (PNH).
The stock trades at 19 forward earnings, lower than the industry average of 20.58, implying potential undervaluation even on trading near 52-week highs. AstraZeneca PLC (NASDAQ:AZN) comes with a 1.70% dividend yield, ideal for income-focused investors. The company has been paying dividends for 32 consecutive years, affirming its commitment to shareholder value.
As of the second quarter, the stock is held by 49 hedge funds, which amounts to almost $2.33 billion. Fisher Asset Management is the largest investor in the company and has shares worth $776.47 million as of June 30.
In its Q2 2024 investor letter, Baron Health Care Fund commented on AstraZeneca PLC (NASDAQ:AZN):
“Performance in pharmaceuticals and health care distributors was bolstered by solid gains from AstraZeneca PLC (NASDAQ:AZN) and McKesson Corporation, respectively. AstraZeneca is a global biopharmaceutical company with a focus on three main therapy areas based on its core competencies: oncology, cardiovascular and metabolic diseases, and respiratory illnesses. AstraZeneca’s shares increased given incremental positive news flow (LAURA, ADRIATIC, and DESTINY-Breast06 clinical trials) surrounding the oncology franchise. The company also published long-term guidance for the first time, projecting $80 billion in revenue by 2030, or 75% higher than 2023’s $45.8 billion. This projection implies an annual growth rate of 8% over seven years, compared with the 5% to 7% targets set by GSK and Johnson & Johnson and the 5% target set by Novartis.”
1. SAP SE (NYSE:SAP)
52 Week Range: $126.75 – $221.24
Current Share Price: $218.78
Short interest rate: 0.15%
Number of Hedge Fund Holders: 31
SAP SE (NYSE:SAP) is a technology company that provides worldwide applications, technology, and services. It offers software capabilities for finance, risk and project management, procurement, manufacturing, supply chain, and asset management.
The company has been firing on all cylinders following the solid second-quarter results. Revenues were up by 10% to $9.19 billion, driven by a 10% increase in cloud revenue. The Cloud ERP Suite played a pivotal role, recording a 33% rise to $3.78 billion. The company’s cloud backlog, which represents contractually committed cloud revenue, increased 28% to $16.42.
The company’s cloud growth momentum remains strong and is driven by business intelligence. The company also raised its forecast for its 2025 adjusted operating profit to 10.2 billion euros, up from the previous 10 billion euros, due to expected improvements in efficiency from its transformation initiative.
In addition to the solid financial results, SAP SE (NYSE:SAP) sentiments in the market have been boosted after the company embarked on a restructuring drive to bolster margins. It announced plans to restructure 8,000 jobs early in the year as it pushes into AI.
With the restructuring, SAP SE (NYSE:SAP) has been increasing its focus on retaining strategic growth areas, particularly Business AI, and its efforts are already paying off. While the stock is trading close to its 52-week highs, it rewards investors with a 1.10% dividend yield, offering another opportunity for generating some passive income.
As of the end of the second quarter of 2024, 31 hedge funds tracked by Insider Monkey had stakes in SAP SE (NYSE:SAP). During this period, the most significant stakeholder of SAP SE (NYSE:SAP) was Ken Fisher, who had a $974.36 million stake in SAP SE (NYSE:SAP).
Ave Maria World Equity Fund stated the following regarding SAP SE (NYSE:SAP) in its first quarter 2024 investor letter:
“SAP SE (NYSE:SAP) provides enterprise application software products worldwide. SAP is successfully transitioning from a perpetual license model to a SAAS model, which we believe will lead to an increase in TAM (total addressable market), higher margins and lower capital intensity.”
The best 52-week high stocks to buy now according to short sellers, are companies that have risen significantly owing to solid underlying fundamentals. However, given that the artificial intelligence arms race is just but starting, there are under-the-radar AI stocks trading at highly discounted valuations that hold greater promise for anyone looking to diversify their portfolio. If you are looking for a promising AI stock that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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