Zacks.com Featured Highlights Include: Archer Daniels, AMN, Fluor, Fortinet And National General
Zacks Investment Research | Apr 12, 2018 11:15PM ET
For Immediate Release
Chicago, IL – April 13, 2018 - Stocks in this week’s article Archer Daniels Midland Company (NYSE:ADM) , AMN Healthcare Services Inc (NYSE:AMN) , Fluor Corporation (NYSE:FLR) , Fortinet, Inc. (NASDAQ:FTNT) and National General Holdings Corp (NASDAQ:NGHC) .
5 Stocks Near 52-Week Highs with More Upside in Store
A stock at a 52-week high level is considered a winner. The level works as an indicator for many investors for buying or selling the stock.
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.
In fact, in an attempt to avoid stocks that are trading near their 52-week high levels, an investor might miss out on top gainers.
A stock can continue the momentum and keep scaling new highs with time. So, one should take a more informed approach to understand if any 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 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’ particular attention (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: Zacks Investment Research
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