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Stocks Trading at 52-week Highs

Knowing when to buy and sell is crucial for successful trading and investing.


Many traders utilize the strategy of concentrating on stocks that are currently trading at their 52-week highs. This strategy combines momentum-style investing, psychological and sentiment analysis, and technical risk management discipline.


Momentum investing is based on the concept that a trend in motion will continue in the same direction until an opposing force acts on it. Therefore, stocks trading at new 52-week highs will likely continue with their upward price momentum.


When a popular stock breaks above its 52-week high, it can lead to further buying pressure. Sideline money pushes the breakout stocks higher due to new interest, excitement, urgency, and FOMO (Fear of Missing Out). Stock trading at a new 52-week high is an optimistic sign, indicating favorable news, earnings expectations, and bullish sentiments.


Contrary to popular belief, a stock trading above resistance (52-week highs) may not be overly extended. There is a tendency for the stock to continue in the direction of its primary uptrend. Moreover, the previous resistance (52-week highs) turns into support, providing an exit point if the trade is a false breakout.


It is important to remember that there are no guarantees that a stock that has broken above its 52-week high will be a successful trade.


It is best to evaluate market conditions, sector, industry, and risk-to-reward ratio before proceeding with any potential trade or investment.


Enclosed are stock screens of stocks trading at 52-week highs, ranked by SCTR and Large-cap, Mid-cap, and Small-cap classifications.


In the Large-cap category, we have NVDA, PHM, GE, RCL, DHI, TDG, CPRT, MSFT, VRSK, CRM, LRCX, ORCL, AVGO, CAH, ISRG, MLM, AMAT, MCK, ABC, and DRI.


In the Mid-cap category, we have BLDR, SMCI, TMHC, CXT, VNT, TOL, GXO, BLKB, OC, VSH, UNM, TXRH, and MSM.


In the Small-cap category, we have ACLS, POWL, RMBS, PRG, UPBD, MHO, NABL, CCS, RDN, ONTO, HLIT, GMS, NMIH, JACK, and MLI.

Source: Chart courtesy of StockCharts.com (Large-caps)

Source: Chart courtesy of StockCharts.com (Mid-caps)

Source: Chart courtesy of StockCharts.com (Small-caps)

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