For Immediate Release
Chicago, IL – August 28, 2020 - Stocks in this week’s article are Target Corporation TGT, AutoNation, Inc. AN, Green Brick Partners, Inc. GRBK, BMC Stock Holdings, Inc. BMCH and Ultra Clean Holdings, Inc. UCTT.
5 Stocks Near 52-Week Highs That Can Carry Momentum Further
Investors generally consider 52-week high as a criterion to pick stocks. This is because stocks near that level are perceived to be winners.
However, 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.
Investors might, in fact, lose out on the top gainers in an attempt to avoid the steep prices.
A good stock can maintain the momentum and keep scaling new highs. So, 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. This strategy borrows from the basics of momentum investing and bets on “buy high, sell higher.”
52-Week High: A Good Indicator
A number of times, stocks hitting a 52-week high fail to scale higher despite having potential. This is because investors fear that the stocks are overvalued andexpect the price to crash.
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/1047789/6-stocks-near-52week-highs-that-can-carry-the-momentum-further
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Ultra Clean Holdings, Inc. (UCTT): Free Stock Analysis Report
Target Corporation (TGT): Free Stock Analysis Report
AutoNation, Inc. (AN): Free Stock Analysis Report
BMC Stock Holdings, Inc. (BMCH): Free Stock Analysis Report
Green Brick Partners, Inc. (GRBK): Free Stock Analysis Report
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