For Immediate Release
Chicago, IL – Feb 26, 2018 - Stocks in this week’s article include: Shutterfly, Inc. SFLY, AMN Healthcare Services Inc AMN, CACI International, Inc. CACI, Applied Materials, Inc. AMAT and Diodes Incorporated DIOD.
Screen of the Week of Zacks Investment Research:
5 Stocks Near 52-Week Highs: More Upside in Store?
More often than not, investors wonder if the high price range has made the stock overpriced. While the apprehensions are not completely groundless, all stocks hitting a 52-week high are not necessarily high-priced.
At the same time, a few investors regard the stock as an overpriced one at that level. While they are not entirely mistaken, all stocks hitting a 52-week high aren’t expensive.
In fact, in order to avoid stocks that are trading near their 52-week highs, an investor might miss out on top gainers.
A stock can continue the momentum and keep reaching new highs as time passes. So, a more informed approach to understand if any further upside is left is beneficial for assessing the stock.
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 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 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.
And that's what we're screening for today…
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/293459/5-stocks-near-52week-high-is-there-more-upside-in-store
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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.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
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Shutterfly, Inc. (SFLY) : Free Stock Analysis Report
AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report
CACI International, Inc. (CACI) : Free Stock Analysis Report
Diodes Incorporated (DIOD) : Free Stock Analysis Report
Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
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