5 Companies Hit 52-Week Highs

Johnson & Johnson, Reynolds American, Aon PLC, Danaher, Amazon reach milestones

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Mar 07, 2017
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According to GuruFocus' list, these stocks have reached their 52-week highs.

Johnson & Johnson reached the 52-week high of $123.79

Johnson & Johnson (JNJ, Financial)Â is a holding company that is engaged in the research and development, manufacture and sale of products in the health care field within its Consumer, Pharmaceutical and Medical Devices and Diagnostics business segments.

Johnson & Johnson is the world's largest and most diverse health care company. Three divisions make up the company: pharmaceutical, medical devices and diagnostics and consumer. The drug and device groups represent close to 80% of sales and drive the majority of cash flows for the firm. About half of total revenue is generated within the U.S.

The price of Johnson & Johnson shares has reached $123.79, which is 1.8% off the 52-week high of $126.07. Johnson & Johnson has a market cap of $331.6 billion; its shares were traded around $123.79 with a price-earnings (P/E) ratio of 21.07 and price-sales (P/S) ratio of 4.80. Johnson & Johnson's trailing 12-month dividend yield is 2.59%. The forward dividend yield is 2.58%.

Johnson & Johnson had an annual average earnings growth of 3.90% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 2.5-star.

Johnson & Johnson recently announced sales of $18.1 billion for the fourth quarter of 2016, an increase of 1.7% compared to the fourth quarter of 2015. Net earnings and diluted earnings per share for the fourth quarter of 2016 were $3.8 billion and $1.38. Fourth-quarter 2016 net earnings included after-tax intangible amortization expense of approximately $300 million and a net charge for after-tax special items of approximately $300 million. Fourth-quarter 2015 net earnings included after-tax intangible amortization expense of approximately $200 million and a net charge for after-tax special items of approximately $600 million. Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the current quarter were $4.4 billion and adjusted diluted earnings per share were $1.58, representing increases of 7.9% and 9.7% compared to the same period in 2015. On an operational basis, adjusted diluted earnings per share also increased 10.4%.

Controller and Chief Accounting Officer Ronald A. Kapusta sold 14,543 shares for $122.26 per share on Feb. 28. The stock price has increased by 1.25% since.

Reynolds American reached the 52-week high of $61.39

Reynolds American Inc. (RAI, Financial)Â through its subsidiaries manufactures cigarettes and other tobacco products in the U.S. The products brand include Camel, Pall Mall, Winston and others.

Reynolds American controls roughly 35% of the U.S. cigarette market and is the second-largest domestic cigarette manufacturer behind Altria (MO, Financial). Reynolds also owns the Grizzly and Kodiak smokeless tobacco brands. Another subsidiary, Santa Fe Natural Tobacco, manufactures super premium Natural American Spirit cigarettes. In 2013, Reynolds entered the electronic cigarette market with its Vuse brand, which captured a significant share of this small but growing market.

The price of Reynolds American shares has reached $61.39, which is 0.9% off the 52-week high of $61.96. Reynolds American has a market cap of $87.79 billion; its shares were traded around $61.39 with a P/E ratio of 14.44 and P/S ratio of 7.02.

Reynolds American's trailing 12-month dividend yield is 2.86%. The forward dividend yield is 3.29%. Reynolds American had an annual average earnings growth of 11.50% over the past 10 years.

The company has recently announced fourth-quarter 2016 EPS of 60 cents, up 215.8% from the prior-year quarter. Fourth-quarter adjusted EPS was 62 cents, up 29.2%, including the impact of adjustments as detailed in Schedule 2. For the full year, reported EPS was $4.25, up 65.4% from the prior-year period. Full-year adjusted EPS was $2.31, up 16.7%.

Aon reached the 52-week high of $116.48

Aon PLC (AON, Financial) provides risk management services, insurance and reinsurance brokerage and human resource consulting and outsourcing, delivering distinctive client value via effective risk management and workforce productivity solutions. Aon is a leading global provider of risk management, insurance and reinsurance brokerage and human resource solutions. The company operates in two main segments – Risk Solutions and Human Resource Solutions –Â that contribute 60% and 40% of total revenue.

Aon has not been shy about expanding its market share through acquisitions, picking up Benfield Group Limited (a reinsurance intermediary) and Hewitt Associates (an HR consulting and business outsourcing company) during the last few years.

The price of Aon shares has reached $116.48, which is 1.2% off the 52-week high of $117.89. Aon has a market cap of $30.37 billion; its shares were traded around $116.48 with a P/E ratio of 22.52 and P/S ratio of 2.70. Aon's trailing 12-month dividend yield is 1.13%. The forward dividend yield is 1.12%. Aon had an annual average earnings growth of 11.70% over the past 10 years. GuruFocus rated Aon the business predictability rank of 4-star.

The company recently reported that total revenue was $3.3 billion with organic revenue growth of 3%Â for the fourth quarter of 2016. Operating margin decreased 290 basis points to 18.9%, and operating margin, adjusted for certain items, increased 210 basis points to 26.2%. EPS decreased 11% to $1.87, and EPS, adjusted for certain items, increased 13% to $2.56. The company closed its acquisition of Stroz Friedberg, strengthening its ability to serve clients as the global leader in cyber risk mitigation. The company closed its acquisition of Admix, a leading health and benefits brokerage firm in Brazil, repurchased 1.8 million Class A Ordinary Shares for approximately $200 million.

President and CEO Gregory C. Case sold 520,000 shares for $115.58 per share on Feb. 22. The stock price has increased by 0.78% since.

Danaher reached the 52-week high of $85.92

Danaher Corp. (DHR, Financial) designs, manufactures and markets professional, medical, industrial and commercial products. Its business consists of five segments: Test & Measurement; Environmental; Life Sciences & Diagnostics; Dental and Industrial Technologies. Danaher is a diversified and mostly health care-focused instrument and supplies manufacturer. The company retains four main business segments: Life Science, Diagnostics, Dental and Environmental & Applied Solutions.

The price of Danaher shares has reached $85.92, which is 1.9% off the 52-week high of $87.59. Danaher has a market cap of $58.85 billion; its shares were traded around $86.16 with a P/E ratio of 23.61 and P/S ratio of 3.03. Danaher's trailing 12-month dividend yield is 0.66%. The forward dividend yield is 0.64%. Danaher had annual average earnings growth of 7.20% over the past 10 years.

The company recently announced results for the fourth quarter and full year of 2016. For the quarter ended Dec. 31, 2016, net earnings were $747.0 million, or $1.07 per diluted share which represents a 42.5% year-over-year increase. Non-GAAP adjusted diluted net earnings per share was $1.05 per share, which reflects the adjustments identified in the attached reconciliation schedule. This represents a 15.5% increase over the comparable 2015 amount. For the fourth quarter 2016, revenues increased 6.0% year over year to $4.6 billion, with core revenue growth of 3.5% (non-GAAP).

Executive Vice President and Chief Financial Officer Daniel L. Comas sold 10,250 shares for $86.09 per share on Feb. 27. The stock price has increased by 0.08% since.

Amazon.com reached the 52-week high of $846.61

Amazon.com Inc. (AMZN, Financial) is an online retailer. The company sells its products through the website that provides services, such as advertising services and co-branded credit card agreements. It also offers electronic devices like Kindle e-readers and Fire tablets. Amazon is among the world's highest-grossing online retailers, with $136 billion in net sales and $278 billion in estimated GMV in 2016. Media products account for 18% of sales, and electronics and other general merchandise make up 72%. The other 10% is derived from Amazon Web Services ($12.2 billion in 2016), advertising and co-branded credit cards. Amazon operates in the U.S., Canada, U.K., Germany, France, Italy, Spain, Japan, China, Mexico, India, Brazil, Australia and the Netherlands. International segments totaled 32% of sales in 2016.

The price of Amazon.com shares has reached $846.61, which is 1.7% off the 52-week high of $860.86. Amazon.com has a market cap of $401.68 billion; its shares were traded around $846.61 with a P/E ratio of 172.42 and P/S ratio of 3.01. Amazon.com had annual average earnings growth of 28.90% over the past 10 years. GuruFocus rated Amazon.com the business predictability rank of 4.5-star.

The company reported net sales increased 22% to $43.7 billion in the fourth quarter of 2016, compared with $35.7 billion in fourth quarter 2015. Excluding the $558 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 24% compared with fourth quarter 2015. Operating income increased 13% to $1.3 billion in the fourth quarter, compared with operating income of $1.1 billion in fourth quarter 2015. Net income was $749 million in the fourth quarter, or $1.54 per diluted share, compared with net income of $482 million, or $1.00 per diluted share, in fourth quarter 2015.

Worldwide Consumer CEO Jeffrey A. Wilke sold 4,890 shares on Feb. 15 for $840.06 per share. The stock price has increased by 0.78% since.

Disclosure: I do not own these stocks.

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