WINDERMERE, Fla. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are hitting new 52-week highs and 52-week lows.
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). 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.
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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.
Let's take a closer look at several stocks that hit new 52-week highs today.
Synageva BioPharma
Synageva BioPharma (GEVA), a biopharmaceutical company, engages in the discovery, development, and commercialization of therapeutic products for patients with rare diseases and unmet medical needs. This stock is trading down 0.40% to $17.50 in recent trading, after it hit a 52-week high of $17.70 earlier today.
Today’s Range: $17.50-$17.70
52-week Range: $8.30-$17.70
Volume: 2,845
Three-Month Average Volume: 21,678
Synageva BioPharma has a market cap of $9.18 million and an enterprise value of $6.77 million. This stock trades at a price-to-sales of 13.15. The current short interest as a percentage of the float for Synageva is notable at 4.8%.
Medivation
Medivation (MDVN) is a biopharmaceutical company focused on the rapid development of small molecule drugs to treat serious diseases, for which there are limited treatment options. This stock is trading up 1.55% to $46.66 in recent trading after hitting a 52-week high of $46.73 earlier in the day.
Today’s Range: $45.38-$46.73
52-week Range: $11.16-$46.73
Volume: 192,000
Three-Month Average Volume: 904,471
Medivation has a market cap of $1.61 billion and an enterprise value of $1.44 billion. This stock trades at a price-to-sales of 25.84. Its estimated growth rate for this year is 2%, and for next year it’s pegged at 30.9%. The current short interest as a percentage of the float for Medivation is rather high at 7.5%.
From a technical standpoint, this is in full breakout mode now that it has cleared some past overhead resistance at $44.93.
I could see this stock tagging $50 a share in the coming weeks, but traders should be careful since shares of MDVN are hitting overbought levels. The current RSI reading is at 80.59, which indicates an extreme overbought condition for any stock.
Medivation shows up on a list of Biotech Stocks Loved and Hated by the Pros in the most recently reported quarter.
Costco Wholesale
Costco Wholesale (COST), with its subsidiaries, operates membership warehouses that offer its members low prices on a limited selection of branded and selected private-label products in a range of merchandise categories. This stock is trading up 1.5% at $86.66 in recent trading after hitting a 52-week high of $87.68 earlier in the day.
Today’s Range: $84.96-$87.68
52-week Range: $68.13-$87.68
Volume: 1,787,000
Three-Month Average Volume: 2,653,240
Costco Wholesale has a market cap of $37.62 billion and an enterprise value of $33.67 billion. The stock trades at a trailing price-to-earnings of 26.25 and a forward price-to-earnings of 19.61. Its estimated growth rate for this year is 17%, and for next year it’s pegged at 14.5%. The current short interest as a percentage of the float for Costco Wholesale is very low at just 1.4%.
This stock is printing new highs today after the company reported a 9% rise in its November same-store sales. Costco said net sales soared 11% to $7.51 billion, from $6.78 billion in the same period a year-ago.
From a technical standpoint, this stock is flirting with a breakout today since shares have started to move above some past overhead resistance at $85.89 to $86.09. Traders should now watch for a sustained move and close above $86.09 on high volume. Look for volume to register close to or above 2.65 million.
If we get that action, then I expect this stock to start marching towards $100, as long as COST doesn’t trade back below those key breakout levels.
Costco is a holding in Warren Buffett's portfolio.
Casey’s General Stores
Casey’s General Stores (CASY), one of TheStreet Ratings' top-rated food and staples stocks, operates convenience stores under the name Casey’s General Store, HandiMart and Just Diesel in 11 Midwestern states, primarily Iowa, Missouri and Illinois. This stock is trading down 0.45% at $53.14 in recent trading after hitting a 52-week high of $54.22 earlier in the day.
Today’s Range: $53.07-$54.22
52-week Range: $35.39-$54.22
Volume: 104,000
Three-Month Average Volume: 287,873
This stock tagged a new 52-week high today as investors bid up shares in front of their latest earnings report, which is scheduled for Dec. 6, 2011.
Casey’s General Stores has a market cap of $2.02 billion and an enterprise value of $2.57 billion. The stock trades at a trailing price-to-earnings of 21.65 and a forward price-to-earnings of 14.97. Its estimated growth rate for this year is 20.1%, and for next year it’s pegged at 14.1%. The current short interest as a percentage of the float for Casey’s General Stores is decent at 6.3%.
From a technical standpoint, this stock is starting to challenge a big breakout today above some past overhead resistance at $52.87. Market players should now watch for this stock to sustain a high-volume move and close over $52.87 to trigger a bigger trend higher.
If we get a close over $52.87 on volume that’s near or above 287,873, then look to swing this stock from the long side into their earnings report. That doesn’t mean hold it through earnings, though -- just look to make a quick trade if that breakout triggers.
LKQ
LKQ (LKQX), one of TheStreet Ratings' top-rated supplier and distributor stocks, provides replacement parts, components and systems needed to repair vehicles (cars and trucks). This stock is trading up 1% at $30.81 in recent trading after hitting a 52-week of $31.25 earlier in the day.
Today’s Range: $30.25-$31.25
52-week Range: $20.38-$31.25
Volume: 428,000
Three-Month Average Volume: 728,097
LKQ has a market cap of $4.54 billion and an enterprise value of $5.07 billion. The stock trades at a trailing price-to-earnings of 23.28 and a forward price-to-earnings of 16.92. Its estimated growth rate for this year is 24.1%, and for next year it’s pegged at 27.1%. The current short interest as a percentage of the float for LKQ is very low at 1%.
From a technical standpoint, this stock is starting to trigger a big breakout today now that it’s starting to move above some past overhead resistance at $30.02 to $30.24.
Traders should watch to see how this stock closes today. Look for a close that puts the stock above $30.24 on high-volume. I would consider it very bullish if LKQX finishes within 30 cents of $31 on volume that’s close to or above 728,097 shares. If we get that action, then look for much higher prices for this stock in the near future.
Macy’s
Macy’s (M) operates retail stores and Web sites under two brands, Macy’s and Bloomingdale’s, that sell a range of merchandise, including men’s, women’s and children’s apparel and accessories, cosmetics, home furnishings and other consumer goods in 45 states, the District of Columbia, Guam and Puerto Rico. This stock is trading down 0.06% at $32.31 in recent trading after hitting a 52-week of $33 earlier in the day.
Today’s Range: $31.91-$33
52-week Range: $21.69-$33
Volume: 4,185,000
Three-Month Average Volume: 9,078,610
Macy’s has a market cap of $13.59 billion and an enterprise value of $19.46 billion. The stock trades at a trailing price-to-earnings of 11.84 and a forward price-to-earnings of 10.22. Its estimated growth rate for this year is 33%, and for next year it’s pegged at 13.7%. The current short interest as a percentage of the float for Macy’s is notable at 4.2%.
This stock is hitting new highs today after the company reported total sales for the month of November at $2.465 billion, up 5.3% from the same period last year. Same-store sales jumped 4.8%.
From a technical standpoint, this stock is starting to flirt with a big breakout since it has started to challenge some previous overhead resistance at $32.67. Traders should now look for a sustained move and close on high-volume over $32.67 to signal that this stock wants to trend much higher. Look for volume that registers close to or above 9.07 million shares with the stock closing near $33 or higher in the near future.
Macy's, one of David Tepper's top holdings, shows up on a recent list of 6 Dividend Stocks With No Sell Ratings.
To see more stocks hitting new 52-week highs today, including MasterCard (MA), Visa (V) and Philip Morris International (PM), check out the Stocks Hitting New 52-Week Highs portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.
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At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.
