Why SharkNinja Stock Is Rocketing Higher This Week

Source The Motley Fool

Key Points

  • SharkNinja received a lofty price target from Jefferies on Monday.

  • Despite rising 150% since its market debut, the company trades at only 21 times forward earnings.

  • "Manically consumer-focused," SharkNinja is quietly becoming a powerhouse in the consumer goods sector.

Shares of quickly growing consumer goods stock SharkNinja (NYSE: SN) rose 11% as of market close Thursday, according to data provided by S&P Global Market Intelligence. The product design and technology company, famous for its consumer goods products seen on numerous infomercials and social media clips, received a $175 price target from Jefferies on Monday, which sent its stock higher.

Compared to its current stock price of $107, this price target implies upside north of 60%. Just one week removed from being added to Time magazine's 2025 list of the 100 Most Influential Companies, this upgrade added further optimism to SharkNinja's stock, which is now up 150% since its initial public offering in 2023.

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SharkNinja: More than the infomercials you've seen

Anchored by its two billion-dollar brands (Shark and Ninja), SharkNinja is a product design and technology innovation hub, home to over 5,200 patents that serve its consumer goods customers. The company, describing itself as "maniacally consumer-focused," operates in (and disrupts) 36 subcategories (such as robot vacuums, air purifiers, blenders, or air fryers) by iterating products to the nth degree to reach unparalleled customer satisfaction.

Four upward-pointing arrows of different colors and sizes line up together against a black backdrop.

Image source: Getty Images.

Thanks to its relentless pursuit of customer satisfaction and burgeoning popularity, SharkNinja commands a premium price for its "aspirational brands," slightly ahead of more commoditized peers.

After growing sales by 24% annually since 2018, management has conservatively guided for 12% revenue growth in 2025. More importantly, however, management expects earnings per share of $4.95 for the year, which leaves SharkNinja shares trading at a reasonable 21 times forward earnings.

With the company entering 15 new subcategories over the last three years -- while launching roughly 25 new products annually -- SharkNinja's long-standing innovation prowess looks poised to power the stock to new highs.

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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool recommends SharkNinja. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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