For Immediate Release
Chicago, IL – July 18, 2018 - Stocks in this week’s article ConocoPhillips COP, Archer Daniels Midland Company ADM, CVS Health Corp. CVS, Fortinet Inc. FTNT and Avnet, Inc. AVT.
5 Stocks Trading at 52-Week Highs with More Room to Run
A 52-week high level generally works as an indicator for investors as stocks near that level are perceived to be winners.
More often than not, investors wonder if the high price range has made the stock overpriced. While the apprehensions are not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced.
In fact, in an attempt to avoid stocks that are trading near their 52-week high levels, an investor might miss out on top gainers.
A stock can continue the momentum and keep touching new highs as time progresses. So, a more informed approach to understand if any further upside is left is beneficial in these cases.
Here we will 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 fail to scale higher despite potential. This is because investors 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’ focus (or willingness to pay premium) has helped them reach the level. But that doesn’t always mean an impending decline. Factors such as robust sales, surging profit levels, earnings growth prospects and strategic acquisitions that encouraged investors to bet on these stocks could keep them motivated 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/311799/5-stocks-trading-near-52week-high-with-more-room-to-run
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Fortinet, Inc. (FTNT) : Free Stock Analysis Report
Avnet, Inc. (AVT) : Free Stock Analysis Report
ConocoPhillips (COP) : Free Stock Analysis Report
CVS Health Corporation (CVS) : Free Stock Analysis Report
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
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