4 Stocks Making New Highs Despite Market Weakness

Key Points

• The market sold off dramatically on Friday before recovering into the close, led by big tech.
• While the market faced challenges on Friday, Birkenstock, NetApp, Eli Lilly, and Aflac showed notable strength by achieving new 52-week highs.
• These companies' impressive earnings and strategic initiatives have driven their stocks to new highs, underscoring their resilience in a challenging market environment.

Despite the market's dramatic sell-off on Friday, some stocks showed impressive strength by making new 52-week highs. While big tech led the market decline, these four stocks, Birkenstock, NetApp, Eli Lilly, and Aflac, demonstrated resilience and robust performance, along with displaying overall relative strength to the market and their respective sectors.

Birkenstock Surpasses Quarterly Earnings Expectations

Birkenstock NYSE: BIRK, known for its iconic footwear, recently reported quarterly earnings on May 30th, 2024. The company posted earnings per share (EPS) of $0.44, surpassing analysts' expectations of $0.35 by $0.09. Its revenue for the quarter reached $522.51 million, exceeding the consensus estimate of $499.98 million. 

The stock is up nearly 17% year-to-date, driven by a 28% surge following its earnings report last month. Birkenstock also has a significant short interest of 20.4% of the float, which could lead to further volatility and upward momentum if shorts begin to cover. While analysts maintain a moderate buy rating, the consensus price target indicates a potential downside of over 8%.

NetApp Achieves All-Time High Stock Prices

NetApp NASDAQ: NTAP provides cloud-led and data-centric services worldwide. The stock is trading at its all-time highs and 52-week highs, up an impressive 36.6% year-to-date, outperforming its sector and the overall market. 

NetApp released its earnings results on May 30th. The company reported an EPS of $1.80, which beat the consensus estimate of $1.48 by $0.32. The company posted revenue of $1.67 billion for the quarter, slightly above analyst estimates of $1.65 billion, marking a 5.5% year-over-year increase. 

Despite its strong performance, the stock has a consensus rating of hold and a price target of $112.75, suggesting a potential downside of 6.3%. Its hold rating is below the consensus rating of other computer and technology stocks, which collectively have a consensus rating of moderate buy.

Eli Lilly's Stock Achieves New 52-Week Highs

Eli Lilly NYSE: LLY, a leading pharmaceutical firm, has seen its stock rise over 40% year-to-date and nearly 90% over the past year. As of Friday, the stock closed at new 52-week highs and all-time highs. 

On May 6th, 2024, Eli Lilly reported its earnings, posting an EPS of $2.58, slightly above the consensus estimate of $2.53. The company earned $8.77 billion in revenue for the quarter, compared to analysts' expectations of $8.94 billion, with a 26.0% year-over-year increase. 

The stock is highly rated, with a moderate buy rating from nineteen analysts. However, a pullback might be on the horizon with a P/E ratio of 122.85 and an RSI approaching overbought territory.

Aflac's Revenue Surpasses Estimates, Reaching $5.44 Billion

Aflac NYSE: AFL, which provides supplemental health and life insurance products through its Japan and U.S. segments, has performed well this year. It is up 8.9% year-to-date and trading at 52-week and all-time highs. 

On May 6th, 2024, the company reported an EPS of $1.66, surpassing the consensus estimate of $1.58. Revenue was $5.44 billion for the quarter, beating the consensus estimate of $4.09 billion, with a 13.3% year-over-year increase. 

With a P/E ratio of 9.9 and a dividend yield of 2.23%, Aflac presents an attractive value play for long-term conservative investors. Analysts also forecast a 6.8% earnings growth for the full year, making it a solid income-generating stock.

The Bottom Line

While the broader market faced significant challenges on Friday, Birkenstock, NetApp, Eli Lilly, and Aflac showed notable strength by achieving new 52-week highs. Their impressive earnings results and strategic positioning have helped them defy the market's recent uncertainty and vulnerability, highlighting their resilience and potential for continued growth.