ASX 200 stocks hitting fresh 52-week highs and lows – Week 35

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: 8 Highs, 1 Low

• Discretionary: 6 Highs, 1 Low

• Real Estate: 5 Highs, 1 Low

• Materials: 5 Highs, 3 Lows

• Industrials: 3 Highs, 3 Lows

• Health Care: 3 High, 1 Low

• Telecommunication: 3 Highs, 2 Lows

• Technology: 2 Highs, 1 Low

• Staples: 1 High, 0 Lows

• Utilities: 0 Highs, 1 Low

• Energy: 0 Highs, 4 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

• Banks, insurers and asset managers trend higher: The Financials sector is currently dominating the market, with a high number of stocks trading at 52-week highs. This trend has been underpinned by strong FY24 results:

  • Commonwealth Bank beat consensus profit expectations by 1%

  • Judo Capital's net interest margin fell less than feared, down 35 bps to 2.94%

  • Bendigo Bank reported strength in revenue and margin expansion

  • Zip reported record FY24 profitability, which marked a significant turnaround compared to heavy losses in prior years

• Gold stocks shine: Gold prices are hovering around record highs of US$2,500 an ounce, benefiting from several tailwinds including disinflation momentum, anticipated Fed rate cuts and rising geopolitical tensions. Soaring have significantly boosted gold miners' earnings in FY24, particularly in terms of cash flow. For instance, Evolution Mining reported Group cash flows of $367 million in FY24 compared to $116 million in outflows during FY23.

• Retailers are running out of steam: Retail stocks are trading at relatively expensive levels, with limited near-term growth prospects. Macquarie analysts said "Wesfarmers PE is trading at the upper end of its historical trading range. However, it is one of the few large retailers in the APAC region that is likely to have earnings growth over FY25."

• Real estate recovery: The Australian 10-year bond yields has dropped around 37 bps since mid-July and briefly traded below 4.0% last week. Lower yields are a key tailwind for real estate stocks. Morgan Stanley analysts have found that "Charter Hall is by far the most linked to bond yields. Its PE multiple has a -0.77 correlation vs. Australian 10-year bond yields .... this means that as bond yields decline, the multiples of these stocks generally re-rate upwards."

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, 30 August close

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, 30 August close

ASX 200 Material 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, 30 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, 30 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, 30 August close

ASX 200 Energy stocks at 52-week lows

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, 30 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, 30 August close