Zacks.com Featured Highlights Include: SNX, ICHR, TECD, NSIT And BMY
Zacks Investment Research | Jan 23, 2020 10:27PM ET
For Immediate Release
Chicago, IL – January 24, 2019 - Stocks in this week’s article are SYNNEX (NYSE:SNX) , Ichor Holdings Ltd. (NASDAQ:ICHR) , Tech Data Corporation (NASDAQ:TECD) , Insight Enterprises Inc. (NASDAQ:NSIT) and Bristol-Myers Squibb (NYSE:BMY) .
5 Stocks Near a 52-Week High that Can Scale Higher
Investors often use a 52-week high as a parameter for stock selection. This is because stocks near that level are perceived as winners.
However, the high price often compels investors to wonder whether the stock is trading at a premium. While the speculations are not completely baseless, all stocks at a 52-week high are not overpriced.
In fact, investors might lose out on 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 there is scope for further upside.
Here we discuss a strategy to find the right stocks on basics of momentum investing, which follows the “buy high, sell higher” technique.
52-Week High: A Good Indicator
Many a time, stocks hitting a 52-week high fail to scale higher despite potential. This is because investors fear that the stocks are overvalued and apprehend a 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: Zacks Investment Research
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