The end of summer is almost upon us, but some hot stocks aren’t ready to cool off. Hundreds of U.S. stocks scored gains of at least 50% through the first eight months of the year, outperforming the volatile market’s ups and downs — among them…
Here’s why all five could keep the good times going for investors in the months ahead.
Target: Up 66% in 2019
A lot of traditional retailers are struggling these days, but Target’s store logo apparently remains a bullseye for shoppers. The “cheap chic” retailer is back with a vengeance. Comps climbed 3.4% in its latest quarter, a gain that was stacked on top of a 6.5% pop a year earlier. Put another way, the average store is selling 10% more than it was two years ago.
Digital sales are a major driver of Target’s recent growth, but it’s also excelling at keeping costs in check. It’s expanding its margins, and that’s something that you don’t see a lot among hungry retailers lately. In addition, adjusted earnings have landed ahead of management’s guidance and Wall Street’s profit targets for three consecutive quarters.
Shopify: Up 177%
The internet has made it possible for any business to sell its wares to the world, and Shopify is making that process seamless for its more than 800,000 merchants. Shopify storefronts are everywhere, and even though the company’s revenue growth is slowing — year-over-year upticks have decelerated for 14 consecutive quarters — it’s hard to ignore a dot-com darling that still came through with a 48% top-line surge in its latest quarter.
The stock has nearly tripled this year, and analysts keep raising their price targets to keep up both with the buoyant share price and the business’s improving fundamentals. Last week, it was Mark Zgutowicz at Rosenblatt lifting his price goal on the shares to a Wall Street high of $481, excited by the prospects of modest acceleration in gross merchandise volume in the future…
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