ASX 200 stocks hitting fresh 52-week highs and lows – Week 30

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: 5 Highs, 0 Lows

• Health Care: 5 Highs, 0 Lows

• Industrials: 3 Highs, 0 Lows

• Discretionary: 2 Highs, 1 Low

• Telecommunication: 1 High, 0 Lows

• Technology: 1 High, 0 Lows

• Materials: 1 High, 4 Lows

• Real Estate, Utilities, Staples and Energy all recorded no highs and 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 are trending higher: Wealth management and investment platforms like Hub24, Pinnacle, and Netwealth outperformed the broader market last week. Peers including Insignia Financial and Regal Partners reported better-than-expected funds under management updates, underscoring the sector's strong recovery as equity market conditions improve. Most of the Big Four Banks also finished the week near recent highs. Bendigo Bank remains a standout performer among bank stocks since May, when it experienced an 8.1% one-day rally following a positive trading update. Defying analyst expectations, the bank reported improving net interest margins and lower credit costs.

• Healthcare stocks are booming: Global healthcare stocks have shown robust performance over the past few weeks. The iShares Biotechnology ETF, a sector barometer, has surged almost 10% this month, reaching levels not seen since January 2022. Earlier this month, Macquarie reiterated an Outperform rating for CSL with a $330 target price. "We forecast EPS growth of ~15% per annum over the next five years, with the current share price an attractive entry point," the analysts said in a note dated 3 July. Polynovo shares briefly touched a three-year high after reporting preliminary FY24 results, with revenue soaring 57.5% year-on-year to $104.8 million. The revenue figure was 2% above consensus.

• Resources stocks are struggling: Resource heavyweights including BHP, MinRes, Woodside, and Pilbara Minerals all hit 52-week lows last week, raising red flags for the sector. BHP continues to decline despite its latest quarterly report indicating achievement of production guidance for all commodities in FY24, with record iron ore production and the highest copper output in 15 years. Pilbara Minerals and MinRes face similar challenges, both having reported operationally strong quarterly results last week despite the downward trend in their stock prices.

ASX 200 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, 26 July close

ASX 200 Health Care 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, 26 July close

Other ASX 200 Stocks at 52-Week Highs

Data shows any stock to have hit a 52-week high in the past week, sorted by Sector and 1-year performance. Share price and performance as at Friday, 26 July 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, 26 July close