Zacks.com Highlights: Schweitzer-Mauduit International, Insight Enterprises, Baxter International, Fortinet And Comfort Systems USA
Zacks Investment Research | May 14, 2018 10:04PM ET
For Immediate Release
Chicago, IL – May 15, 2018 - Stocks in this week’s article include: Schweitzer-Mauduit International, Inc. (NYSE:SWM) , Insight Enterprises, Inc. (NASDAQ:NSIT) , Baxter International Inc. (NYSE:BAX) , Fortinet, Inc. (NASDAQ:FTNT) and Comfort Systems USA, Inc. (NYSE:FIX) .
Screen of the Week of Zacks Investment Research:
5 Stocks Near 52-Week Highs with Scope to Perform Even Better
A 52-week high level generally works as an indicator for investors as stocks near that level are perceived to be winners.
Notably, investors often wonder if the stock is overpriced considering the high price level. While the apprehensions are not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced.
In fact, an investor might miss out on top gainers in an attempt to avoid the steep prices of stocks that are near the 52-week high mark.
However, 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 “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 due 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.
And that's what we're screening for today…
For the rest of this Screen of the Week article please visit Zacks.com at: Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.