U.S. markets continued to set all-time highs in June, with record-breaking stocks boosting major indices to new records last week. Even the traditionally slower DJIA logged two consecutive record peaks in two days.
The market appears to favor the surge in artificial intelligence (AI) greatly as Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) battle for the highest market capitalization in the world. Such lofty heights in the market typically provoke fears of a correction, but pulling back may not be the case just yet.
Bullish bets from traders are also hitting record highs, especially on the top-performing stocks. Options trading reveals the number of calls exceeds the number of puts by 4.5 million contracts, the highest in history. Not surprisingly, a large portion of calls support the mega caps that have been outperforming so far this year. However, it strongly suggests that traders feel the current bullish run has more room to run. This points to a rising interest in betting on record-breaking stocks.
When seeking those with more room to run, there are multiple alternatives to examine. One way to distinguish the strong performers from the rest is to vet analyst recommendations. The following three record-breaking stocks with a high number of analysts recommending a buy could have further growth potential.
Life360 (LIF)
The family safety app Life360 (NASDAQ:LIF) came to market only earlier this month. It is a reasonable choice as one of the record-breaking stocks with more to run due to its post-IPO success. After first trading at $27 per share, the price steadily increased throughout the month and now changes hands at $31.21 per share.
Although the company is not yet profitable and has not released earnings results as a public firm, analysts have been highly positive in their coverage. Thirteen analysts have issued reports on Life360 so far, with 11 recommending the stock as a Buy. The average target price given is $52.07 per share, representing a potential upside of 67%.
It is not surprising that a newly public company sees strong bullish momentum, especially in the social media sector.
Life360 offers both a free and paid app for tracking the location of loved ones and their belongings. It boasts a staggering 66 million active users to date.
Boston Scientific (BSX)
Boston Scientific (NYSE:BSX) has experienced long-term success in medical device markets. It is renowned for developing the Taxus Stent, which is used to treat blocked arteries. However, the company also creates a wide array of sophisticated devices across medical specialties.
As healthcare is a perpetually necessary industry, Boston Scientific is well-positioned for continued growth. Heart attacks remain the main cause of death in the United States, ensuring demand for preventative products over the long run.
BSX stock price reached a record high last week following the announcement of an acquisition of carotid artery disease firm Silk Road Medical (NASDAQ:SILK). Not unexpectedly, after setting a new record, the price-to-earnings (P/E) ratio increased substantially to 65.3x. Still, biotech has a high average P/E ratio, rendering Boston Scientific’s figure relatively consistent with the sector’s 58.5x.
Analysts anticipate ongoing expansion, with an average price target of $82.93 representing a modest projected upside of 6.7%. The forecast suggests the recent record high will unlikely cap the company’s performance, making Boston one of the record-breaking stocks with more room to run.
Crane NXT (CXT)
Crane NXT (NYSE:CXT) is the final selection of record-breaking stocks with more room to run. It provides micro-optic security products widely used without notice, as well as special marks on currency that allow for authentication and protection.
The company recently completed the acquisition of OpSec Security to enhance its portfolio of online protection and product authentication solutions.
Crane achieved record stock prices after appointing a new head of its payments division, which accounts for two-thirds of total revenue. Michael Mahan’s appointment will become effective on July 8.
Despite a 14% year-to-date growth exceeding the average for S&P 500 firms, CXT stock trades at a peer-comparable P/E ratio of 20x. Given its involvement in technology, this is in line with industrial companies.
Analyst coverage remains strongly favorable, with five of six rating it a Buy. The average price target represents a 52% upside at $98.20 per share as the company continues beating EPS estimates.
On the date of publication, Stavros Tousios did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
