Zacks.com Highlights: Hewlett Packard Enterprise, NETGEAR, DST Systems, Lam Research And ConocoPhillips
Zacks Investment Research | Mar 14, 2018 08:38AM ET
For Immediate Release
Chicago, IL – March 14, 2018 - Stocks in this week’s article include: Hewlett Packard Enterprise Company (NYSE:HPE) , NETGEAR, Inc. (NASDAQ:NTGR) , DST Systems Inc. (NYSE:DST) , Lam Research Corporation (NASDAQ:LRCX) and ConocoPhillips (NYSE:COP) .
Screen of the Week of Zacks Investment Research:
5 Stocks Near 52-Week Highs with More Upside Potential
A stock at a 52-week high level is perceived a winner. This level works as an indicator for many investors for buying or selling the stock.
Quite often, investors start wondering if this level has made the stock an overpriced one. While they are not totally incorrect, all stocks hitting a 52-week high are not necessarily overpriced.
In fact, a decision to avoid stocks that are trading near their 52-week high levels makes an investor miss out on most of the top gainers.
A stock can maintain 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’ special attention (or willingness to pay premium) has helped them achieve 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 motivated 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.
And that's what we're screening for today…
For the rest of this Screen of the Week article please visit Zacks.com at: Zacks Investment Research
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