For Immediate Release
Chicago, IL – March 29, 2018 - Stocks in this week’s article Archer Daniels Midland Company ADM, Phibro Animal Health Corporation PAHC, NEXEO SOLUTIONS NXEO, Western Digital Corporation WDC and Fortinet, Inc. FTNT.
5 Stocks Near 52-Week Highs: Is More Upside Left?
A stock at a 52-week high level is considered a winner. This level helps investors decide on whether to buy or sell the stock.
Investors often wonder if this level has made the stock overpriced. While they are not totally incorrect, all stocks hitting a 52-week high are not expensive.
In fact, in an attempt to avoid stocks that are near their 52-week high levels, an investor might miss out on top gainers.
A stock can maintain the momentum and keep scaling new highs with time. Hence a more informed approach for understanding if any further upside is left is beneficial in these cases.
Here we discuss a strategy to find the right stocks:
Borrowing from the basics of momentum investing, this technique bets on the catchphrase “buy high, sell higher.”
52-Week High: A Good Indicator
Many a time, stocks hitting a 52-week high are prevented from scaling higher despite robust potential due to the psychological bias of investors, who fear that the stocks are overvalued and a price crash is impending.
In fact, overvaluation is quite natural for most of these stocks as investors’ special attention (or willingness to pay premium) has helped them achieve the level. But that doesn’t always mean an impending decline. The factors — such as robust sales, surging profit levels, earnings growth prospects and strategic acquisitions — that motivated investors to bet on these stocks could keep them encouraged if there is no tangible negative. In other words, the momentum might continue.
Also, when a string of positive developments dominate the market, investors find their under-reaction unwarranted, even if there are no company-specific driving forces.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/297211/5-stocks-near-52week-high-is-more-upside-left
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Western Digital Corporation (WDC) : Free Stock Analysis Report
Fortinet, Inc. (FTNT) : Free Stock Analysis Report
Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
NEXEO SOLUTIONS (NXEO) : Free Stock Analysis Report
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