Radek Strnad
3 min read
Each stock in this article is trading near its 52-week high. These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.
While momentum can be a leading indicator, it has burned many investors as it doesn’t always correlate with long-term success. Keeping that in mind, here are three stocks we think live up to the hype.
Remitly (RELY)
One-Month Return: +12%
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.
Why Is RELY a Top Pick?
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Active Customers have increased by an average of 25.8% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
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Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 163% outpaced its revenue gains
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Free cash flow margin increased by 43.1 percentage points over the last few years, giving the company more capital to invest or return to shareholders
Remitly’s stock price of $26.87 implies a valuation ratio of 11.6x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Nasdaq (NDAQ)
One-Month Return: +4.3%
Originally founded in 1971 as the world’s first electronic stock market, Nasdaq (NASDAQ:NDAQ) operates global exchanges and provides technology, data, and corporate services that help companies, investors, and financial institutions navigate capital markets.
Why Is NDAQ Interesting?
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Solid 13.8% annual revenue growth over the last two years indicates its offerings solve complex business issues
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Share repurchases over the last two years enabled its annual earnings per share growth of 18.6% to outpace its revenue gains
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Industry-leading 15.4% return on equity demonstrates management’s skill in finding high-return investments
Nasdaq is trading at $98.20 per share, or 22.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
DHT Holdings (DHT)
One-Month Return: +5.8%
With each vessel capable of carrying roughly 2 million barrels of oil—enough to fill about 125 Olympic swimming pools—DHT Holdings (NYSE:DHT) operates very large crude carriers that transport crude oil across international routes for energy companies and traders.
Why Are We Positive on DHT?
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Impressive 6.4% annual revenue growth over the last ten years indicates it’s winning market share this cycle
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EBITDA profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
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Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
