Zacks.com featured highlights include JAKKS Pacific, Unum Group, Clean Harbors and Super Micro Computer
For Immediate Release
Chicago, IL – August 31, 2022 – Stocks in this week’s article are JAKKS Pacific JAKK, Unum Group UNM, Clean Harbors CLH and Super Micro Computer SMCI.
4 Stocks Trading Near 52-Week Highs That Can Climb Further
Stocks hitting their 52-week high and delivering consistent performance in the past few quarters offer attractive opportunities to investors while building a portfolio. This is because stocks near that level are perceived to be winners. However, stocks touching a new 52-week high are often predisposed to profit-taking, resulting in pullbacks and trend reversals.
Moreover, given the high price, investors often wonder if the stock is overpriced. While the speculations are not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced.
In fact, investors might lose out on top gainers in an attempt to avoid the steep prices.
Stocks such as JAKKS Pacific, Unum Group, Clean Harbors and Super Micro Computer are expected to maintain the momentum and keep scaling new highs. More information on a stock is necessary to understand whether or not there is scope for further upside.
Here we discuss a strategy to find the right stocks. The strategy borrows from the basics of momentum investing. This technique bets on "buy high, sell higher."
52-Week High: A Good Indicator
Many a time, stocks hitting a 52-week high fail to scale higher despite having potential. This is because investors fear that the stocks are overvalued and expect the price to crash.
In fact, overvaluation is natural for most of these stocks as investors' focus (or willingness to pay a premium) has helped them reach the level. But that does not always indicate 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 dominates the market, investors find their under-reaction unwarranted, even if there are no company-specific driving forces.
Here are our four picks of the 24 stocks that made it through the screen:
JAKKS Pacific is a multi-brand company that has been designing and marketing a broad range of toys and consumer products since 1995. The company has been benefiting from strategic acquisitions, a solid international footprint, focus on innovation and collaborations with popular brands and movie franchisees. Moreover, the company realizes the importance of online retailing and has shifted its focus to boosting online sales. It also continues to modify its sales and logistics capabilities to support the same.
The company currently sports a Zacks Rank of 1 and has a VGM Score of A. The Zacks Consensus Estimate for JAKKS Pacific's 2022 earnings has been revised upward by 74.6% to $4.87 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 154.98%.
Unum Group provides long-term care insurance, life insurance, employer- and employee-paid group benefits and related services. Unum's conservative pricing and reservation practices have contributed to overall profitability. The sustained increase in premiums is fueled by high persistence levels in core business lines and strong sales volume along with solid benefits experience. The continued rollout of dental products and geographic expansion have been paying off as acquired dental insurance businesses are growing in the United States and the U.K.
The company currently sports a Zacks Rank of 1 and has a VGM Score of B. The Zacks Consensus Estimate for Unum Group's 2022 earnings has been revised upward by 16.9% to $6.03 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 30.13%.
Clean Harbors is a leading provider of environmental, energy and industrial services in North America, wherein it operates the largest number of hazardous waste incinerators, landfills and treatment, storage and disposal facilities. The company continues to make capital investments to enhance its quality and comply with government and local regulations. Acquisitions help the company expand its business across multiple lines of services. Consistent share repurchases boost investor confidence and positively impact the company's earnings per share.
The company currently sports a Zacks Rank of 1 and has a VGM Score of B. The Zacks Consensus Estimate for Clean Harbors' 2022 earnings has been revised upward by 52.7% to $6.78 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 37.51%.
Super Micro Computer designs, develops, manufactures and sells energy-efficient, application-optimized server solutions based on the x86 architecture. SMCI's solutions include a range of rack mount and blade server systems as well as components. Super Micro Computer emphasizes superior product design and uncompromising quality control to produce industry-leading server boards, chassis and server systems.
The company currently sports a Zacks Rank of 1 and has a VGM Score of B. The Zacks Consensus Estimate for Super Micro's fiscal 2023 earnings has moved up by 30.4% to $7.50 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 20.26%.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1973931/4-stocks-trading-near-52-week-high-that-can-climb-further
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report
Unum Group (UNM) : Free Stock Analysis Report
Clean Harbors, Inc. (CLH) : Free Stock Analysis Report
Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report
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