Please ensure Javascript is enabled for purposes of website accessibility

3 Surprising Stocks Hitting New Highs Last Week

By Rick Munarriz - Updated May 20, 2019 at 8:50AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Roku, GoPro, and Hilton hit new high-water marks on improving fundamentals.

Last week was a rough week for investors. All of the major stock market indices moved lower, as trade tensions with China continued to intensify. However, there were still more than 550 stocks hitting new highs.  

Roku (ROKU -2.76%), GoPro (GPRO -0.45%), and Hilton (HLT -1.09%) are some of the more surprising equities notching high-water marks last week. Let's see how the three stocks are getting it right for investors. 

GoPro Hero 7 camera in action at a beachside hut resort.

Image source: GoPro.

Roku

The original maker of streaming video devices -- coincidentally founded by the inventor of the DVR -- took out the all-time highs it hit last October this week after posting blowout quarterly results. Roku is transforming itself from being an early player in the now crowded hardware market into the industry leader when it comes to software platforms. Nearly two-thirds of the revenue in last week's financial report came from Roku's operating system that's fueling a growing number of third-party TVs as well as its own gadgetry. 

There are now 29.1 million active accounts streaming through Roku's platform, a 40% surge over the past year. Average revenue per user has also soared 27%, as usage is outpacing Roku's account base. 

GoPro

Five years ago, the market left this once high-flying maker of wearable action cameras for dead, and even now it trades 93% below the all-time highs it hit five years ago. But success is relative, and GoPro did hit a new 52-week high on Wednesday, after announcing that it was shifting most of its camera production from China to Mexico to skirt its way out from one trade tariff war. 

GoPro is starting to move in the right direction. A week earlier, it posted better-than-expected first-quarter results. Revenue rose 20%, and that top-line burst is actually 27% if we set aside its sputtering aerial/drone business. GoPro also boosted its full-year guidance.

With losses narrowing, average selling prices inching higher, and GoPro.com revenue skyrocketing, the stock still isn't anywhere close to where it was five years ago, but its fundamentals are a lot better than they were 12 months ago.

Hilton 

This may not seem to be a golden age for hotel chains, as Airbnb has leveled the playing field for property owners, increasing the number of available lodging options. But Hilton is finding a way to grow, and its stock has more than quadrupled since its IPO in late 2013. The big driver last week was the disclosure from Bill Ackman's Pershing Square Capital Management that Hilton was one of the two stocks in which the hedge fund manager boosted its positions through the first three months of this year.

Hilton's latest quarter was solid. Average revenue per available room, a popular measuring stick in the lodging industry, continues to inch higher. Hilton also raised its profit guidance for the fiscal year, and it continues to increase the number of rooms in its portfolio, forecasting a 6.5% uptick in net units this year. H

ilton is growing faster than the industry itself, and that's the best way to excel when your niche is being disrupted. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Hilton Worldwide Holdings Inc. Stock Quote
Hilton Worldwide Holdings Inc.
HLT
$130.28 (-1.09%) $-1.43
GoPro, Inc. Stock Quote
GoPro, Inc.
GPRO
$6.63 (-0.45%) $0.03
Roku Stock Quote
Roku
ROKU
$94.20 (-2.76%) $-2.67

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/22/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.