Zacks.com featured highlights include: Brinker International, Target, DaVita, TRI Pointe Group and PennyMac Financial Services

For Immediate Release Chicago, IL – September 15, 2020 – Stocks in this week’s article are Brinker International, Inc. EAT, Target Corporation TGT, DaVita Inc. DVA, TRI Pointe Group, Inc. TPH and PennyMac Financial Services, Inc. PFSI. 5 Stocks Near 52-Week Highs Poised to Scale Higher Investors generally consider 52-week […]

For Immediate Release

Chicago, IL – September 15, 2020 – Stocks in this week’s article are Brinker International, Inc. EAT, Target Corporation TGT, DaVita Inc. DVA, TRI Pointe Group, Inc. TPH and PennyMac Financial Services, Inc. PFSI.

5 Stocks Near 52-Week Highs Poised to Scale Higher

Investors generally consider 52-week highs as a criterion to pick stocks. This is because stocks near that level are perceived to be winners.

However, given the high price, investors often wonder if the stock is overpriced. While the speculations are not absolutely baseless, all stocks hitting 52-week highs are not necessarily overpriced.

Investors, in fact, 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 or not there is scope for further upside.

Here, we discuss a strategy to find the right stocks, which borrows from the basics of momentum investing. This technique bets on “buy high, sell higher.”

52-Week High: A Good Indicator

Many a times, stocks hitting 52-week highs fail to scale higher despite having potential. This is because investors fear that the stocks are overvalued and expect the price to 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. However, 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: https://www.zacks.com/stock/news/1057827/5-stocks-near-52week-highs-that-are-poised-to-scale-higher

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the “#1 site for screening stocks” by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They’re virtually unknown to the general public. Yet today’s 220 Zacks Rank #1 “Strong Buys” were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Target Corporation (TGT): Free Stock Analysis Report

DaVita Inc. (DVA): Free Stock Analysis Report

Brinker International, Inc. (EAT): Free Stock Analysis Report

TRI Pointe Group, Inc. (TPH): Free Stock Analysis Report

PennyMac Financial Services, Inc. (PFSI): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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