These 2 Nasdaq stocks hit all-time highs on Wednesday

Even in a tough market, one large-cap company and a small-cap rising star are beating the odds.

a smiling woman holds up two fingers and winks.

Image source: Getty Images

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

Investors have seen some respite early this week from the tough market conditions that have prevailed throughout much of 2022 thus far. However, the Nasdaq Composite (NASDAQINDEX: ^IXIC) turned lower on Wednesday, trading down more than three-quarters of a percent as of 1:30 p.m. ET. Overall, the market community is still struggling with all the uncertainty prevailing across financial markets, including not only stocks but also bonds, commodities, and real estate.

Yet even with all the potential headwinds facing the market, some Nasdaq stocks are still hitting all-time highs. Among the companies setting new stock-price highs throughout their histories, Palo Alto Networks (NASDAQ: PANW) and Amphastar Pharmaceuticals (NASDAQ: AMPH) stood out from the relatively small crowd. Below, we'll take a closer look at those stocks to see what's happening with the companies. 

Palo Alto rises on cybersecurity threats

Shares of Palo Alto Networks were higher by 1.5% early Wednesday afternoon on a down day for Wall Street, bringing its gain over the past year to 87%. The cybersecurity specialist has gotten a lot of attention lately, due in large part to the specific geopolitical threats of cyberwarfare that the Russian invasion of Ukraine poses.

Palo Alto has done a good job of publicizing the need for better cybersecurity. In a release earlier this week, the company highlighted the fact that even though the vast majority of state and local government entities understand that breaches from ransomware are a significant and ongoing threat, fewer than half have a ransomware incident response plan in place in the event of such an attack.

Palo Alto has positioned itself to be the provider of choice for cybersecurity services, and it has seen significant adoption of its platform. Revenue has more than doubled since fiscal 2018, including a 30% rise year over year in its most recent quarterly report. Adjusted net income showed modest growth, and Palo Alto gave guidance for growth rates of 25% to 26% for sales along with earnings expectations of $7.23 to $7.30 per share for the full fiscal year.

There's plenty of competition in the cybersecurity stock space, and Palo Alto isn't the only successful company providing these valuable services. Nevertheless, it's done a better job than many of seeing its stock price hold up in the recent downturn, and it's still in good position to benefit as cybersecurity returns to the spotlight. 

Amphastar keeps looking healthier

Amphastar has seen its stock rise 54% just since the beginning of 2022, and the shares added another 1% on Wednesday. The biopharmaceutical company has seen great success with its intranasal, inhalation, and injectable products, and investors are responding to solid results.

The company's fourth-quarter and full-year financial results released earlier this month show the tone of Amphastar's business lately. Revenue was up 26% year over year for the quarter, finishing a year with 25% sales growth. Adjusted earnings more than doubled for both periods, coming in at $0.42 per share for the fourth quarter and $1.37 per share for 2021. 

Amphastar's biggest revenue bump came from sales of Primatene Mist and epinephrine, which posted 60% and 152% gains respectively. The company attributed Primatene's surge to a strong advertising campaign, while a new multi-dose vial helped bolster epinephrine sales. In addition, the introduction of the injection emergency kit treatment Glucagon provided a valuable new source of sales for the company.

Looking ahead, Amphastar has five abbreviated new drug applications before the U.S. Food and Drug Administration to serve markets worth $4 billion, as well as a host of biosimilar and generic products in development targeting another $25 billion in market opportunities. Investors have high hopes that Amphastar can keep up its momentum, and the stock is reflecting that potential. 

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and recommends Amphastar Pharmaceuticals and Palo Alto Networks. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on International Stock News

Woman at home saving money in a piggybank and smiling.
International Stock News

Nvidia share price surges — Time to invest in the artificial intelligence (AI) leader?

Did the Fed's rate cut just open the door for Nvidia stock to go on another huge rally?

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
International Stock News

Nvidia just made a 147% profit betting on this AI stock

Want to bet on AI? Nvidia has a growth stock for you.

Read more »

Smiling woman driving a car.
International Stock News

Why the Tesla share price just rallied

A jumbo rate cut fed hopes for the auto industry.

Read more »

A woman is very excited about something she's just seen on her computer, clenching her fists and smiling broadly.
International Stock News

Why Nvidia stock jumped after the big Fed rate cut

CEO Jensen Huang says the scale to grow AI from here will be exponential.

Read more »

A young woman sits on her lounge looking pleasantly surprised at what she's seeing on her laptop screen as she reads about the South32 share price
International Stock News

Prediction: Nvidia stock could hit $200 in 2025

The AI giant may have lost some momentum of late, but investors would do well to focus on the bigger…

Read more »

A man looking at his laptop and thinking.
International Stock News

Nvidia's CEO sold over $700 million in stock. Should you follow suit?

Jensen Huang has been selling since June.

Read more »

A man looking at his laptop and thinking.
International Stock News

Has Nvidia stock peaked? These words from the CEO may suggest what's next

Shares of Nvidia have soared almost 800% over the last two years, but can the company keep its growth up?

Read more »

A female engineer inspects a printed circuit board for an artificial intelligence (AI) microchip company.
International Stock News

Where will Nvidia stock be in 1 year?

There are a lot of factors that could influence Nvidia stock over the next year.

Read more »