ASX 200 stocks hitting fresh 52-week highs and lows – Week 22

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

• Healthcare: 3 Highs, 1 Low

• Materials: 2 Highs, 3 Lows

• Financials: 2 Highs, 0 Lows

• Staples: 2 Highs, 0 Lows

• Discretionary: 1 High, 3 Lows

• Industrials: 1 High, 1 Low

• Utilities: 1 High, 0 Lows

• Real Estate: 1 High, 0 Lows

• Telecommunication: 0 Highs, 2 Lows

• Energy: 0 Highs, 1 Low

• Technology: 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.

Healthcare stocks at 52-week highs

The biotech sector is running hot this year and a few names outside of the large cap space to think about include: Dimerix (ASX: DXB), Clarity Pharma (ASX: CU6), Botanix (ASX: BOT) and LTR Pharma (ASX: LTP).

Data shows any stock to have hit a 52-week high in the past week. Share price and performance as at Friday, 31 May close

Staples at 52-week highs

It's interesting to see two dairy-related names rally to fresh yearly highs. Here are some of the recent catalysts:

• Bega Cheese was one of the best performing stocks during February reporting season, up 13% on the day (22 Feb) and another 9% over the next three sessions. The result highlighted improving profitability amid rising commodity prices and growing milk volumes as well as recent benefits from restructuring efforts

• Citi analysts observed a number of data points about NZ port data, including:

  • China label: NZ infant milk formula exports from Jan-Apr 2024 to China down 11% year-on-year, cycling elevated numbers from last year. Volumes are still up more than three times the equivalent period in 2022

  • English label (China): Growth in volumes to Hong Kong has accelerated year-to-date (Jan-Apr 2024), up 145% year-on-year

  • English label (Australia): Growth in export volumes to Australia have accelerated year-to-date (Jan-Apr 2024), up 74% year-on-year following a 51% decline in the first half of FY24

• Bega Cheese received a double upgrade from Underperform to Outperform by CLSA on Friday, 31 May. The analysts raised their target price from $4.0 to $4.65

Data shows any stock to have hit a 52-week high in the past week. Share price and performance as at Friday, 31 May 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, 31 May close

ASX 200 stocks at 52-week lows

This week's 52-week low list reflects a broad range of underperformers, including those affected by management controversy (TAH), weaker-than-expected earnings (KLS, ORA, SGM) and sector headwinds (e.g. RHC and hospital providers face continued cost pressures and volume uncertainties).

Data shows any stock to have hit a 52-week low in the past week. Share price and performance as at Friday, 31 May close