ASX 200 stocks hitting fresh 52-week highs and lows – Week 34

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: 10 Highs, 0 Lows

• Discretionary: 8 Highs, 2 Lows

• Real Estate: 7 Highs, 1 Low

• Materials: 6 Highs, 2 Low

• Industrials: 5 Highs, 1 Low

• Technology: 5 Highs, 0 Lows

• Health Care: 3 Highs, 0 Lows

• Telecommunication: 2 Highs, 2 Lows

• Staples: 1 High, 1 Low

• Utilities: 1 High, 0 Lows

• Energy: 0 Highs, 3 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

• Highs across the board: Nearly a quarter of ASX 200 stocks (48 in total) reached 52-week highs last week, signaling broad-based strength across the benchmark. This reflects robust earnings and growing anticipation of interest rate cuts.

• Retailers defy expectations: Companies like JB Hi-Fi and Super Retail Group have delivered results exceeding forecasts, driven by effective cost control and margin expansion. Notably, both retailers have emphasised capital management, particularly through special dividends.

• Financials trend higher: Banks have reported impressive earnings this season, with institutions such as Judo Capital, Commonwealth Bank, and Insignia Financial surpassing analyst expectations.

• Real estate to benefit from falling yields: The inverse relationship between real estate stocks and yields is pretty straightforward – As yields fall, real estate stocks typically rise. At the Jackson Hole Symposium, Fed Chair Powell's dovish remarks about policy adjustment triggered a sharp decline in bond yields, with the US 2-year Treasury dipping below 4%.

• Gold stocks shine: Powell's comments weakened the US dollar and bond yields, factors that generally boost gold prices. Bullion surged 1.2% on Friday, approaching a record high of US$2,512 an ounce. With soaring gold prices and normalising capital expenditures, gold miners are reporting substantial cash flows for FY24.

ASX 200 Discretionary 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, 23 August close

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, 23 August close

ASX 200 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, 23 August close

ASX 200 Materials 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, 23 August close

All other stocks at 52-week highs

Data shows any stock to have hit a 52-week high in the past week. Data is sorted by Sector and 1-year performance. Share price and performance as at Friday, 23 August close

ASX 200 stocks at 52-week lows

Data shows any stock to have hit a 52-week low in the past week. Data is sorted by Sector and 1-year performance. Share price and performance as at Friday, 23 August close