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3 Stocks hitting 52-Week Highs: American Eagle Outfitters, Applied Industrial Technologies, and Copart

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When it comes to investing in the stock market, there is a proven strategy that often leads to success: buying stocks that are near or breaking 52-week highs. These stocks tend to have strong upward momentum, and when combined with positive earnings estimate revisions from analysts, they can be a profitable investment.

In the current market rebound of 2023, we have identified three stocks that are near or breaking their 52-week highs: American Eagle Outfitters (AEO), Applied Industrial Technologies (AIT), and Copart (CPRT). Not only are these stocks experiencing favorable price action, but they have also seen positive earnings estimate revisions, indicating optimism among analysts.

American Eagle Outfitters

American Eagle Outfitters is a specialty retailer of casual apparel, accessories, and footwear for both men and women. This stock is currently ranked as a Zacks Rank #1 (Strong Buy), and it has seen earnings expectations increase across the board. Despite its forecasted growth, the stock is not overvalued and is currently trading at a 13.0X forward 12-month earnings multiple, well below its previous highs. Additionally, income-focused investors may find the stock appealing, as it has a solid annual yield of 2.4%.

Applied Industrial Technologies

Applied Industrial Technologies is a distributor of value-added industrial products. This stock is currently ranked as a Zacks Rank #2 (Buy), and analysts have modestly increased their expectations for the company. Applied Industrial Technologies has a strong trailing twelve-month return on equity of 25.6%, indicating a higher efficiency level in generating profits compared to its peers. Keep an eye out for the company’s upcoming release on October 26th, as the Zacks Consensus EPS Estimate suggests a 5% improvement from the year-ago period.

Copart

Copart is an online auction and remarketing services provider for salvage and clean title vehicles. This stock is currently ranked as a Zacks Rank #1 (Strong Buy), and analysts have raised their earnings expectations across all timeframes. While Copart’s forward 12-month earnings multiple may be trading at a premium compared to its five-year median, it’s important to note that valuation isn’t always a reliable timing tool. Investors should consider the stock’s positive momentum and analyst optimism before making a decision.

The Bottom Line

Investing in stocks that are nearing or breaking 52-week highs can be a savvy strategy, especially when combined with positive earnings estimate revisions. American Eagle Outfitters, Applied Industrial Technologies, and Copart all fit the criteria for stocks with notable buying pressure and positive earnings outlooks. However, investors should always conduct thorough research and analysis before making any investment decisions.

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