We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Momentum investing involves spotting of stocks which are racing higher, barring a few brief pauses. Admittedly, it is hard to ignore stocks that scale 52-week highs (or hit the lows) as such movements are tracked religiously by analysts.
However, given the presumptive bias of investors, many a times, stocks near a 52-week high are prevented from scaling higher despite robust potential. This is often because anxious investors and traders give up early on fears of a reversal or an impending crash.
Meanwhile, only a handful of investors who stay invested get rewarded handsomely. Our 52-week high investment screen will help you place your money on a few handpicked stocks near a 52-week high with more upside potential.
Let’s take a look at how you could club these stocks with the right set of parameters to join the ranks of investors who are betting on this relatively new investment technique.
Scaling Beyond the 52-Week High Mark
Stocks near a 52-week high often instill the presumptive “adjustment and anchoring bias” in the minds of investors. This principle works on the belief that investors use the 52-week high price as a reference point and value stocks against this anchor. Psychological bias on part of investors prevents the 52-week high stocks from scaling higher.
Prolonged under reaction makes these stocks remain undervalued. However, sooner or later, the markets get a whiff of it and investors realize that their lack of enthusiasm is unwarranted. A string of positive developments and renewed interest help stocks steer past the 52-week high bar and scale higher.
The ones who get in before the positive developments and the pricing in of growth factors benefit the most. Also, research reveals that current price levels reflect a stock’s momentum better than past changes. This implies that if a stock is trading close to its 52-week high, chances are that it will perform better in subsequent periods.
Choosing the Right Filter
Our diligent screening technique has been deployed to find 52-week high stocks that hold tremendous potential compared to their respective industries. The added parameters are strong earnings growth expectations, sturdy value metrics and positive price momentum.
These stocks are relatively undervalued compared to their peers, in terms of earnings as well as sales, which make us believe that they will continue their rally for quite some time.
Current Price/52 Week High >= .80
This simply is the ratio between the current price and the highest price at which the stock has traded in the past 52 weeks. A value greater than 0.8 implies that the stock is trading within 20% of its 52-week high range and is likely to touch the 52-week high mark soon.
% Change Price – 4 Weeks > 5
It ensures that the stock price has moved north over the past four weeks.
% Change Price – 12 Weeks > 5
This metric guarantees a continued upward price momentum for the stock over the past three months as well.
Price/Sales <= XIndMed
The lower, the better.
P/E using F(1) Estimate <= XIndMed
This metric measures the amount an investor puts into a company to obtain one dollar of earnings. It narrows down the list of stocks to those that are undervalued compared to their peers.
One-Year EPS Growth F(1)/F(0) >= XIndMed
This helps choose stocks that have higher growth rates than the industry median. This is a meaningful indicator as decent earnings growth adds to investor optimism.
Zacks Rank = 1
No screening is complete without our proven Zacks Rank, which has proved its worth since inception. It is a fundamental truth that stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have always managed to brave adversities and beat the market. You can see the complete list of today’s Zacks #1 Rank stocks here.
Current Price >= 5
This parameter will help screen stocks which are trading at $5 or higher.
Volume – 20 days (shares) >= 100000
Inclusion of this metric ensures that there is a substantial volume of shares that can be traded easily.
Here are seven of the 16 stocks that made it through the screen:
Headquartered in Santa Clara, CA, Applied Materials (AMAT - Free Report) is engaged in developing, manufacturing and marketing of semiconductor wafer fabrication equipment and related spare parts for the semiconductor industry. The company has an average positive surprise of 3.3% for the trailing four quarters.
Coherent Inc. (COHR - Free Report) designs, manufactures, and supplies electro-optical systems and medical instruments utilizing laser, precision optic and microelectronic technologies. The company beat estimates in all of the trailing four quarters, the average being 12.6%.
Axcelis Technologies, Inc. (ACLS - Free Report) supplies ion implantation equipments used in the fabrication of semiconductors. The company also produces dry strip, photo stabilization and rapid thermal processing equipments, used in semiconductor manufacturing. The company managed to beat estimates each time over the trailing four quarters and boasts a whopping average positive surprise of 135.8%.
Headquartered in Deerfield, IL, Baxter International Inc. (BAX - Free Report) is a global medical technology company. The company consists of renal and hospital products, providing items such as kidney-dialysis equipment, infusion pumps, and intravenous (IV) solutions. The company beat earnings estimates each time over the last four quarters, leading to an average positive surprise of 17.1%.
Headquartered in Hayward, CA, Ultra Clean Holdings, Inc. (UCTT - Free Report) is a developer and supplier of critical subsystems for semiconductor capital equipment, consumer, medical, energy, industrial, flat panel, and research industries. The company has an average positive surprise of 28.0% for the trailing four quarters, with four back-to-back beats.
Kelly Services, Inc. (KELYA - Free Report) , together with its subsidiaries, provides workforce solutions to various industries worldwide. In particular, the company offers clerical, marketing, professional, technical, semi-skilled light industrial and management services. The company has an average positive surprise of 17.1%, beating estimates thrice over the trailing four quarters.
Headquartered in Mayfield Heights, OH, Ferro Corporation produces specialty materials in the U.S. and internationally. The company’s offerings include frits, porcelain and other glass enamels, which are used in building and renovation, electronic appliances, household furnishings and other industrial products. The company has an excellent earnings surprise history with an average positive surprise of 19.6%, beating estimates each time over the trailing four quarters.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your trial to the Research Wizard today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
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.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
7 Stocks Near 52-Week High to Look Out For
Momentum investing involves spotting of stocks which are racing higher, barring a few brief pauses. Admittedly, it is hard to ignore stocks that scale 52-week highs (or hit the lows) as such movements are tracked religiously by analysts.
However, given the presumptive bias of investors, many a times, stocks near a 52-week high are prevented from scaling higher despite robust potential. This is often because anxious investors and traders give up early on fears of a reversal or an impending crash.
Meanwhile, only a handful of investors who stay invested get rewarded handsomely. Our 52-week high investment screen will help you place your money on a few handpicked stocks near a 52-week high with more upside potential.
Let’s take a look at how you could club these stocks with the right set of parameters to join the ranks of investors who are betting on this relatively new investment technique.
Scaling Beyond the 52-Week High Mark
Stocks near a 52-week high often instill the presumptive “adjustment and anchoring bias” in the minds of investors. This principle works on the belief that investors use the 52-week high price as a reference point and value stocks against this anchor. Psychological bias on part of investors prevents the 52-week high stocks from scaling higher.
Prolonged under reaction makes these stocks remain undervalued. However, sooner or later, the markets get a whiff of it and investors realize that their lack of enthusiasm is unwarranted. A string of positive developments and renewed interest help stocks steer past the 52-week high bar and scale higher.
The ones who get in before the positive developments and the pricing in of growth factors benefit the most. Also, research reveals that current price levels reflect a stock’s momentum better than past changes. This implies that if a stock is trading close to its 52-week high, chances are that it will perform better in subsequent periods.
Choosing the Right Filter
Our diligent screening technique has been deployed to find 52-week high stocks that hold tremendous potential compared to their respective industries. The added parameters are strong earnings growth expectations, sturdy value metrics and positive price momentum.
These stocks are relatively undervalued compared to their peers, in terms of earnings as well as sales, which make us believe that they will continue their rally for quite some time.
Current Price/52 Week High >= .80
This simply is the ratio between the current price and the highest price at which the stock has traded in the past 52 weeks. A value greater than 0.8 implies that the stock is trading within 20% of its 52-week high range and is likely to touch the 52-week high mark soon.
% Change Price – 4 Weeks > 5
It ensures that the stock price has moved north over the past four weeks.
% Change Price – 12 Weeks > 5
This metric guarantees a continued upward price momentum for the stock over the past three months as well.
Price/Sales <= XIndMed
The lower, the better.
P/E using F(1) Estimate <= XIndMed
This metric measures the amount an investor puts into a company to obtain one dollar of earnings. It narrows down the list of stocks to those that are undervalued compared to their peers.
One-Year EPS Growth F(1)/F(0) >= XIndMed
This helps choose stocks that have higher growth rates than the industry median. This is a meaningful indicator as decent earnings growth adds to investor optimism.
Zacks Rank = 1
No screening is complete without our proven Zacks Rank, which has proved its worth since inception. It is a fundamental truth that stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have always managed to brave adversities and beat the market. You can see the complete list of today’s Zacks #1 Rank stocks here.
Current Price >= 5
This parameter will help screen stocks which are trading at $5 or higher.
Volume – 20 days (shares) >= 100000
Inclusion of this metric ensures that there is a substantial volume of shares that can be traded easily.
Here are seven of the 16 stocks that made it through the screen:
Headquartered in Santa Clara, CA, Applied Materials (AMAT - Free Report) is engaged in developing, manufacturing and marketing of semiconductor wafer fabrication equipment and related spare parts for the semiconductor industry. The company has an average positive surprise of 3.3% for the trailing four quarters.
Coherent Inc. (COHR - Free Report) designs, manufactures, and supplies electro-optical systems and medical instruments utilizing laser, precision optic and microelectronic technologies. The company beat estimates in all of the trailing four quarters, the average being 12.6%.
Axcelis Technologies, Inc. (ACLS - Free Report) supplies ion implantation equipments used in the fabrication of semiconductors. The company also produces dry strip, photo stabilization and rapid thermal processing equipments, used in semiconductor manufacturing. The company managed to beat estimates each time over the trailing four quarters and boasts a whopping average positive surprise of 135.8%.
Headquartered in Deerfield, IL, Baxter International Inc. (BAX - Free Report) is a global medical technology company. The company consists of renal and hospital products, providing items such as kidney-dialysis equipment, infusion pumps, and intravenous (IV) solutions. The company beat earnings estimates each time over the last four quarters, leading to an average positive surprise of 17.1%.
Headquartered in Hayward, CA, Ultra Clean Holdings, Inc. (UCTT - Free Report) is a developer and supplier of critical subsystems for semiconductor capital equipment, consumer, medical, energy, industrial, flat panel, and research industries. The company has an average positive surprise of 28.0% for the trailing four quarters, with four back-to-back beats.
Kelly Services, Inc. (KELYA - Free Report) , together with its subsidiaries, provides workforce solutions to various industries worldwide. In particular, the company offers clerical, marketing, professional, technical, semi-skilled light industrial and management services. The company has an average positive surprise of 17.1%, beating estimates thrice over the trailing four quarters.
Headquartered in Mayfield Heights, OH, Ferro Corporation produces specialty materials in the U.S. and internationally. The company’s offerings include frits, porcelain and other glass enamels, which are used in building and renovation, electronic appliances, household furnishings and other industrial products. The company has an excellent earnings surprise history with an average positive surprise of 19.6%, beating estimates each time over the trailing four quarters.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your trial to the Research Wizard today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
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.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »