Data Insights

ASX 200 stocks hitting fresh 52-week highs and lows – Week 27

Mon 08 Jul 24, 9:42am (AEST)
marketsasx (2)
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hub
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alu
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whc
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vnt
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sto
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pls
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kls
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nec
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dmp
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nhf
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sek
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ckf
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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: 3 Highs, 1 Low

  • Energy: 2 Highs, 0 Lows

  • Discretionary: 1 High, 1 Low

  • Industrials: 1 High, 1 Low

  • Technology: 1 High, 0 Lows

  • Healthcare, Real Estate, Utilities, Telecommunication, Materials and Staples stocks did not record any highs or 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

  • Financials slow: Last week, only three stocks from the financial sector reached a 52-week high, down from 6-12 in previous months. Major banks are showing signs of slowing, which is understandable given recent performance. For instance, Commonwealth Bank has surged about 15% since late April, causing its price-to-earnings ratio to expand from around 20 to 22. While share prices have climbed, earnings have yet to catch up. With the earnings season approaching, it's time for profits to justify these valuations. Despite the plateauing bank stocks, the wealth management sector continues to outperform. This trend aligns with increasing investor inflows, which in turn reflects the upward trajectory of equity markets.

  • Coal resurgence: Coal stocks surged last week following underground fires at two major mines, potentially impacting global hard coking coal supply. The affected sites – Anglo-American's Grosvenor mine in Queensland and Allegheny Metallurgical's Longview mine in West Virginia – represent approximately 2.5% of global production. As a result, several coal companies (ex-200) including Yancoal, Coronado and Stanmore posted significant gains.

  • A cautionary tale for dip buyers: Stocks typically hit 52-week lows for compelling reasons such as earnings downgrades, changes in business landscape or strategy, and management shake-ups. While they may seem to offer value, they often continue to decline, as evidenced by several companies on the current 52-week low list that have recorded consecutive weekly lows. For example:

    • Pilbara Minerals: 7 consecutive weekly lows

    • Kelsian: Down 7 of the last 10 weeks

    • Nine Entertainment: Down 6 of the last 9 weeks

    • Domino's Pizza: Down 13 of the last 17 weeks

ASX 200 Stocks at 52-week Highs

Ticker

Company

Price

Sector

1 Week

1 Year

HUB

Hub24

$46.68

Financials

0.3%

95.2%

ALU

Altium

$68.18

Technology

0.2%

94.5%

PNI

Pinnacle Investment Management

$14.32

Financials

1.0%

55.7%

ALL

Aristocrat Leisure

$50.96

Discretionary

2.4%

39.7%

WHC

Whitehaven Coal

$8.97

Energy

17.3%

36.1%

VNT

Ventia Services

$3.97

Industrials

3.7%

34.1%

STO

Santos

$7.99

Energy

4.3%

7.7%

SDF

Steadfast Group

$6.19

Financials

0.2%

6.0%

Data shows any stock to have hit a 52-week high in the past week. Data is filtered from best to worst performing 1-year % Chg. Share price and performance as at Friday, 5 July close

ASX 200 Stocks at 52-week Lows

Ticker

Company

Price

Sector

1 Week

1 Year

PLS

Pilbara Minerals

$3.00

Materials

-2.3%

-39.0%

KLS

Kelsian Group

$4.80

Industrials

-6.8%

-31.5%

NEC

Nine Entertainment

$1.33

Telecommunication

-5.0%

-31.3%

DMP

Domino's Pizza

$34.71

Discretionary

-3.3%

-22.9%

NHF

NIB Holdings

$6.98

Financials

-5.0%

-17.7%

SEK

Seek

$20.26

Telecommunication

-5.2%

-8.7%

CKF

Collins Foods

$9.04

Discretionary

0.7%

-5.5%

LTM

Arcadium Lithium

$5.16

Materials

4.7%

na

Data shows any stock to have hit a 52-week low in the past week. Data is filtered from worst to best performing 1-year % Chg. Share price and performance as at Friday, 5 July close

 

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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