For Immediate Release
Chicago, IL - May 31, 2018 - Stocks in this week's article Schweitzer-Mauduit International, Inc.SWM , Insight Enterprises, Inc.NSIT , Baxter International Inc.BAX , Boise Cascade, L.L.C.BCC and Comfort Systems USA, Inc.FIX .
5 Stocks Near 52-Week Highs with Potential to Scale Higher
A 52-week high level is generally an indicator for investors as stocks near that level are perceived to be winners.
Often investors tend to worry if the stock is overpriced considering the high price level. While the apprehensions are not absolutely groundless, all stocks hitting a 52-week high are not necessarily overpriced.
In fact, in an attempt to avoid the steep prices of stocks that are near the 52-week high mark, an investor might miss out on top gainers.
A stock can maintain the momentum and keep scaling new highs with time. So, a more informed approach to understand if any further upside is left is beneficial in these cases.
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 potential as 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. The 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/305582/5-stocks-near-52week-high-with-potential-to-scale-higher
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Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report
Boise Cascade, L.L.C. (BCC): Free Stock Analysis Report
Baxter International Inc. (BAX): Free Stock Analysis Report
Insight Enterprises, Inc. (NSIT): Free Stock Analysis Report
Schweitzer-Mauduit International, Inc. (SWM): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
