For Immediate Release
Chicago, IL – November 7, 2019 - Stocks in this week’s article are Group 1 Automotive, Inc. (GPI - Free Report) , AbbVie (ABBV - Free Report) , Brinker International (EAT - Free Report) , Hewlett Packard Enterprise Company (HPE - Free Report) and Bristol-Myers Squibb (BMY - Free Report) .
5 High-Flying Stocks That Can Scale Higher
A 52-week high generally serves as an indicator for investors as stocks near that level are perceived to be winners.
Notably, investors often wonder if the stock is overpriced considering the high price. While the apprehensions are not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced.
In fact, an investor might miss out on top gainers in an attempt to avoid the steep prices of stocks that are near their 52-week high mark.
A stock can maintain the momentum and keep scaling new highs. So, one should take a more informed approach to understand if further upside is left.
Here we discuss a strategy to find the right stocks.
Borrowing 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 a price crash is impending.
In fact, overvaluation is natural for most of these stocks as investors’ focus (or willingness to pay 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.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/602357/5-highflying-stocks-near-52week-high-that-can-scale-higher
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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