ASX 200 stocks hitting fresh 52-week highs and lows – Week 13

Welcome back to the 52-week Series – A recap of ASX 200 stocks that have tagged a fresh yearly highs and lows in the past week.

52-Week Highs and Lows by Sector

• Financials – 6 Highs, 0 Lows

• Real Estate – 5 Highs, 0 Lows

• Materials – 4 Highs, 0 Lows

• Discretionary – 3 Highs, 0 Lows

• Technology – 2 Highs, 0 Lows

• Industrials – 2 Highs, 1 Low

• Healthcare, Staples – 1 High, 1 Low

• Energy – 1 High, 0 Lows

• Communication Services – 0 Highs, 0 Lows

Why do 52-Week Highs and Lows Matter

Here are some of the key points our first 52-Week article:

• A research thesis by Thomas J. George and Chuan-Yang Hwang titled The 52-Week High and Momentum Investing concludes that stocks nearing their 52-week high tend to outperform in the future, surpassing the predictive power of past returns.

• US trader Mark Minervini also notes that “when you see a growing number of names in a particular industry making new 52-week highs (especially coming off a market low), this could be an indication that a group advance is underway.”

• 1851 Capital Chief Investment Officer Chris Stott says the numbers are useful in helping to determine which stocks have the momentum to keep making fresh highs. The data is used to identify continuous winners and generate fresh ideas.

What Does the Data Tell Us

• Financial divergence – The big four banks have pulled back 1-5% from recent highs, spurred by a cautionary Macquarie note on 13 March. "Banks are trading at peak multiples without a clear fundamental reason. We downgrade all banks under coverage to Underperform," the analysts said. Despite this setback, sub-sectors within the financials sector such as insurers, asset managers and portfolio administrators remain resilient. For instance, PNI shares have continued to trend higher following robust half-year FY24 results, reporting net inflows $4.5 billion, more than 500% above Macquarie forecasts. The trio of insurers – QBE, IAG and Suncorp – continue to push towards multi-year highs. Earlier this year, Morgan Stanley said "Suncorp and Insurance Australia are the best pure-play names to own, given personal lines pricing power and a favourable backdrop with the option to over-earn in the short term."

• Real estate upswing – Peaking bond yields, disinflation momentum and more recently, the RBA's dovish pause has brought life back into the real estate sector. Most large cap names are up 30-50% since last November. While operational conditions might remain challenging for some retail and office portfolios, Macquarie believes "operational metrics are at or approaching cyclical lows with FY24 being the trough earnings year."

Financials at 52-Week Highs

Data shows any stock to have hit a 52-week high in the past week. Share price and performance as at Friday, 22 March close

Real Estate Stocks at 52-Week Highs

Data shows any stock to have hit a 52-week high in the past week. Share price and performance as at Friday, 22 March close

ASX 200 Stocks at 52-Week Highs

Data shows any stock to have hit a 52-week high in the past week. Share price and performance as at Friday, 22 March close

ASX 200 stocks at 52-Week Lows

Data shows any stock to have hit a 52-week low in the past week. Share price and performance as at Friday, 22 March 2024 close