8 Stocks at New 52-Week Highs
When you see a stock that's hitting new 52-week highs, it often means that the uptrend is very strong and the buyers are in full control (and the opposite for stocks setting new 52-week lows), and momentum traders often look at the 52-week high lists to find new trading ideas. Keep in mind, though, that new highs can also mean that the stock is overbought or has run up too far too fast.
>>5 Santa Stocks for Your 2012 Portfolio
That's why it's important to combine a number of technical indicators like volume, price, trend and momentum indicators such as RSI before you make an investing or trading decision. Combine all of those things with fundamental trends, disciple and sound money management and you will be well on your way to investment success.
With that in mind, let's take a closer look at several stocks that hit new 52-week highs today.
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Intuitive Surgical
Today's Range: $449.00-$458.01
Volume: 175,600
Three-Month Average Volume: 352,934
Intuitive Surgical has a market cap of $17.63 billion and an enterprise value of $16.55 billion. This stock trades at a trailing price-to-earnings of 39.05 and a forward price-to-earnings of 31.95. Its estimated growth rate for this year is 25.2%, and for next year it's pegged at 19.3%. The current short interest as a percentage of the float for Intuitive Surgical is very low at 2.9%.
From a technical standpoint, ISRG is triggering a big breakout trade today now that the stock has moved above some near-term overhead resistance at $445.70 to $449.06. This move by ISRG has pushed the stock into all-time high territory, which is very bullish.
Market players should continue to look for long biased trades as long as ISRG remains above those breakout levels I mentioned.
Intuitive Surgical is one of the 10 Best-Performing S&P 500 Stocks of 2011 and shows up on a recent list of 20 Winning Stocks Set to Post New Highs in 2012.
Kraft Foods
Today's Range: $37.22-$37.66
52-Week Range: $30.21-$37.54
Volume: 1.7 million
Three-Month Average Volume: 9 million
Kraft Foods, one of TheStreet Ratings' top-rated food stocks, has a market cap of 66.48 billion and an enterprise value of $93.42 billion. This stock trades at a trailing price-to-earnings of 20.53 and a forward price-to-earnings of 14.93. Its estimated growth rate for this year is 12.4%, and for next year it's pegged at 11%. The current short interest as a percentage of the float for Kraft Foods is extremely low at 0.9%.
From a technical standpoint, KFT recently triggered a breakout trade when the stock moved above some past overhead resistance levels at $36.30 and $37.
Market players should now look for KFT to re-test its next significant overhead resistance at around $40, as long as the stock continues to trend above those breakout levels.
Kraft, one of Warren Buffett's stocks, shows up on recent lists of Credit Suisse's 14 Ultimate Defensive Stock Picks and 9 Defensive Stocks to Play.
Verizon Communications
Today's Range: $39.41-$39.95
52-Week Range: $25.99-$39.95
Volume: 8.6 million
Three-Month Average Volume: 16 million
Verizon Communications has a market cap of $112.56 billion and an enterprise value of $155.29 billion. The stock trades at a trailing price-to-earnings of 15.98 and a forward price-to-earnings of 15.59. Its estimated growth rate for this year is -1.80%, and for next year it's pegged at 15.9%. The current short interest as a percentage of the float for Verizon Communications is very low at 1.4%.
From a technical standpoint, VZ recently trigged a breakout trade when the stock cleared some near-term overhead resistance at $37.73 to $37.84 on decent volume.
Traders should now watch for the next breakout trade to trigger once VZ takes out $40 with high volume. Look for a sustained move and close above $40 with volume that's near or above about 16 million shares. If we get that action, VZ should then re-test $44 to $45 in the near future.
Verizon shows up on a recent list of 15 High-Yield Momentum Stocks.
Silicon Motion Technology
Today's Range: $20.72-$21
52-Week Range: $4.05-$21
Volume: 212,000
Three-Month Average Volume: 761,147
Silicon Motion Technology has a market cap of $649.21 million and an enterprise value of $567.18 million. The stock trades at a trailing price-to-earnings of 28.61 and a forward price-to-earnings of 14.66. Its estimated growth rate for this year is 190.5%, and for next year it's pegged at 17.2%.
From a technical standpoint, SIMO is flirting with a major breakout trade if the stock can manage to sustain a move and close above $21 with heavy volume. A high-volume move above that level in should set this stock up for a sharp spike higher.
At last check, volume has registered well below its average volume, so be cautious unless that volume starts to pick up. If volume does improve and SIMO takes out $21, then look for a re-test of its next significant resistance level at around $24.50 in the near future.
Today's Range: $98.76-$99.94
52-week Range: $72.14-$99.94
Volume: 2 million
Three-Month Average Volume: 6 million
McDonald's has a market cap of $102.07 billion and an enterprise value of $111.03 billion. The stock trades at a trailing price-to-earnings of 19.57 and a forward price-to-earnings of 17.41. Its estimated growth rate for this year is 13.4%, and for next year it's pegged at 9.6%. The current short interest as a percentage of the float for MacDonald's is extremely low at 1.1%.
From a technical standpoint, MCD recently triggered a breakout trade when the stock moved above some near-term overhead resistance at $98 to $99. Market players should continue to look for long biased trades in MCD as long as the stock continues to trend above those levels.
A reasonable price target would be $120, since most stocks that take out $100 tend to trend towards $120.
McDonald's shows up on recent lists of Goldman Sachs' Consumer Stock Best Buys for 2012 and the 10 Best Dow Dividend Stocks for 2012.
RAM Energy Resources
Today's Range: $1.93-$2.96
52-week Range: $0.60-$2.96
Volume: 10.9 million
Three-Month Average Volume: 337,350
RAM Energy Resources has a market cap of $180.08 million and an enterprise value of $359.33 million. The stock trades at a trailing price-to-earnings of 28.62 and a forward price-to-earnings of 38.17. Its estimated growth rate for the current quarter is 100%, and for this year it's pegged 700%. The current short interest as a percentage of the float for RAM Energy Resources is extremely low at 0.5%.
From a technical standpoint, RAM recently trigged a monster breakout when the stock traded above $1.28 to $1.30 on monster volume. This breakout has been so powerful that RAM has briefly flirted with another major breakout over $2.58 today.
That said, the stock is now flashing some extremely overbought conditions since the current relative strength index (RSI) reading is 90. Buying stocks with an RSI reading that is that high is rarely a great idea, since you've already missed much of the move and its way overbought. In the short-term I would avoid this name from the long side and lock in some profits if you have them.
For more on trading overbought (and oversold) stocks, check out "7 Extreme Stocks to Trade in This Volatile Market."
Kimberly-Clark
Today's Range: $72.97-$73.68
52-Week Range: $61.00-$73.23
Volume: 800,000
Three-Month Average Volume: 2.7 million
Kimberly-Clark has a market cap of $28.95 billion and an enterprise value of $34.71 billion. The stock trades at a trailing price-to-earnings of 17.55 and a forward price-to-earnings of 13.99. Its estimated growth rate for this year is 3%, and for next year it's pegged at 8.9%. The current short interest as a percentage of the float for Kimberly Clark is very low at 1.3%.
From a technical standpoint, KMB has started to flirt with a big breakout trade today now that the stock has moved above some near-term overhead resistance at $72.51 on light volume.
Traders should look for a sustained move and close above $72.51 on volume that's near or above 2.7 million. If KMB closes today on lighter volume, then I would avoid upside biased trades for now since the volume isn't confirming that there's big buyers behind the move.
Kimberly-Clark is one of 12 stocks in this month's High-Yield Dividend Champion Portfolio.
Cardtronics
Today's Range: $27.73-$28.69
52-Week Range: $16.40-$28.46
Volume: 289,000
Three-Month Average Volume: 349,238
Cardtronics has a market cap of $1.25 billion and an enterprise value of $1.65 billion. The stock trades at a trailing price-to-earnings of 17.99 and a forward price-to-earnings of 17.54. Its estimated growth rate for this year is 37%, and for next year it's pegged at 19%. The current short interest as a percentage of the float for Cardtronics is 3.9%.
From a technical standpoint, CATM has started to trigger a breakout trade today now that the stock is moving above some near-term overhead resistance at $27.89 and $28.46 on decent volume.
Traders should now watch for a sustained move and close above those levels with high-volume to signal that this stock wants to trend higher. Look for volume at today's close that's near or above 349,238, with the stock closing above $28.46.
To see more stocks hitting new 52-week highs today, check out the Stocks Hitting New 52-Week Highs portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.
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