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These 3 Stocks Have Been in High Demand in 2023

Stop me if you’ve heard this before, but stocks making new highs tend to make even higher highs, especially when analysts' positive earnings estimate revisions roll in.

By targeting stocks breaking out or near new highs, investors find themselves in favorable trends where buyers are in control.

Of course, the favorable price action indicates that investors have strong convictions surrounding the company’s current standing.

Three stocks – Cadence Design Systems CDNS, Playa Hotels & Resorts PLYA, and Asure Software ASUR – are all pushing 52-week highs. Below is a chart illustrating the performance of all three in 2023, with the S&P 500 blended in as a benchmark.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

For those interested in riding momentum, let’s take a closer look at each one.

Cadence Design Systems

Cadence Design Systems is a leader in electronic systems design, applying its Intelligent System Design strategy to provide software and hardware that turn design concepts into reality. The company’s earnings outlook has improved notably over the last several months.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Cadence delivered solid results in its latest earnings release, exceeding the Zacks Consensus EPS Estimate by roughly 5%. Top line results were also strong, with quarterly revenue of $900 million reflecting a 16.5% year-over-year improvement.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

The market took the better-than-expected results in stride, sending shares soaring post-earnings. This is illustrated by the green arrow circled in the chart below.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Playa Hotels & Resorts

Playa Hotels & Resorts owns, operates, and develops resorts primarily in Mexico and the Caribbean. The company has witnessed positive earnings estimate revisions across nearly all timeframes, helping land the stock into a Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

A recovery in travel demand post-pandemic has benefited the company, with the Zacks Consensus EPS Estimate of $0.56 for its current fiscal year implying a 12% year-over-year improvement. And in FY24, PLYA’s bottom line is projected to expand a further 9%.

PLYA shares have displayed strong momentum for a while, up more than 60% over the last six months and crushing the S&P 500’s 10% gain.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Asure Software

Asure Software is a provider of Web-based workforce management solutions that enable organizations to manage their office environment and their human resource and payroll processes. Presently, ASUR is a Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

It’s nearly impossible to ignore the company’s quarterly performance, with the company boasting a four-quarter trailing average EPS surprise of almost 450%. In its latest quarter, Asure Software easily crushed earnings expectations and reported revenue more than 20% ahead of expectations.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Bottom Line

Targeting stocks nearing new highs is a strategy investors can use to insert themselves in favorable market trends.

All three stocks above – Cadence Design Systems CDNS, Playa Hotels & Resorts PLYA, and Asure Software ASUR – are near their respective 52-week highs.

In addition, all three have witnessed positive earnings estimate revisions, providing the fuel needed to continue climbing.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report

Asure Software Inc (ASUR) : Free Stock Analysis Report

Playa Hotels & Resorts N.V. (PLYA) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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