News
Evening Wrap: ASX 200 belted on further rate cut delay woes, gold stocks smashed, uranium stocks soar
Wed 01 May 24, 5:45pm (AEST)
Data Insights
ASX 200 stocks with fresh 52-week highs and lows – Week 2
By
Kerry Sun
Mon 08 Jan 24, 2:27pm (AEST)
Source: Shutterstock
Stocks in article
Key Points
- Materials and discretionary stocks led the way with numerous reaching 52-week highs, driven by iron ore strength and resilient earnings respectively
- A recent pullback across most sectors is attributed to technical factors and shouldn't overshadow the positive long-term outlook
Welcome back to the 52-week Series – A recap of ASX 200 stocks marking yearly highs and lows in the past week.
52-Week Highs and Lows by Sector
Materials: 9 Highs, 2 Lows
Discretionary: 4 Highs, 0 Lows
Communication Services: 4 Highs, 0 Lows
Industrials: 3 Highs, 1 Low
Energy: 2 Highs, 0 Lows
Healthcare: 2 Highs, 0 Lows
Financials: 2 Highs, 0 Lows
Technology: 1 High, 0 Lows
Staples and Utilities: 0 Highs, 0 Lows
Why does this matter: A research thesis by Thomas J. George and Chuan-Yang Hwang titled The 52-Week High and Momentum Investing found that a) the closer a stock's current price is to its 52-week high, the stronger the stock performs in the subsequent period and b) nearness to the 52-week high is a better predictor of future returns than 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.” In 2023, this proved useful for identifying moves made by construction and building materials, iron ore and insurance stocks.
What does the data tell us:
Iron ore majors BHP, Rio Tinto and Fortescue are rallying to 52-week (if not all-time highs) after iron ore prices briefly crossed US$140 a tonne earlier this year
Construction and building materials stocks experienced a broad-based rally between June and September. The stocks are kicking on after a four month breather (September to late December)
Discretionary stocks continue to defy expectations, especially those with sound earnings
For example – Super Retail Group reported 4% year-on-year sales growth for the first 16 weeks of FY24 vs. Macquarie expectations of Group revenue to fall 0.6% for FY24
A majority of the stocks hitting 52-week highs in the past week have pulled back sharply – Just look at the '1 Week' column – Most stocks are down 3-10%
The pullback reflects a weak start to 2024. The blame is largely chalked up more to technical factors such as overbought conditions and stretched positioning
The good news is that the sheer number of stocks hitting 52-week highs is a sign of longer term strength for markets
Materials Stocks Are Making a Push
Ticker | Company Name | Close Price | Sector | 1 Week | 1 Year |
|---|---|---|---|---|---|
James Hardie | $53.98 | Materials | -3.61% | 97.51% | |
Boral | $5.33 | Materials | -0.56% | 78.26% | |
CSR | $6.4 | Materials | -3.18% | 30.61% | |
Fortescue | $28.19 | Materials | -3.26% | 29.31% | |
Sandfire Resources | $6.88 | Materials | -5.62% | 17.21% | |
Rio Tinto | $132.36 | Materials | -2.88% | 10.64% | |
Champion Iron | $8.4 | Materials | 0.36% | 4.09% | |
BHP Group | $49.07 | Materials | -3.25% | 3.28% | |
Gold Road Resources | $1.71 | Materials | -15.35% | -7.32% |
Discretionary Stocks Are Defying Expectations
Ticker | Company Name | Close Price | Sector | 1 Week | 1 Year |
|---|---|---|---|---|---|
Super Retail Group | $14.54 | Discretionary | -7.45% | 30.64% | |
Breville Group | $25.47 | Discretionary | -6.67% | 28.77% | |
Wesfarmers | $56.74 | Discretionary | -0.67% | 20.70% | |
JB HI-Fi | $52.69 | Discretionary | -0.94% | 19.40% |
... And Everything Else
Ticker | Company Name | Close Price | Sector | 1 Week | 1 Year |
|---|---|---|---|---|---|
REA Group | $177.63 | Communication Services | -2.09% | 61.85% | |
Car Group | $30.14 | Communication Services | -2.90% | 47.50% | |
News Corp | $37.93 | Communication Services | 1.39% | 35.37% | |
Seek | $25.82 | Communication Services | -2.86% | 23.54% | |
Ampol | $36.48 | Energy | 0.63% | 34.71% | |
Viva Energy | $3.46 | Energy | -0.86% | 33.59% | |
Hub24 | $35.82 | Financials | -1.57% | 29.22% | |
Commonwealth Bank | $112.99 | Financials | 0.62% | 9.51% | |
Neuren Pharmaceuticals | $24.11 | Health Care | -3.98% | 172.43% | |
Pro Medicus | $90.48 | Health Care | -6.24% | 62.76% | |
Seven Group | $36.09 | Industrials | -1.88% | 68.02% | |
Reece | $21.84 | Industrials | -1.84% | 55.00% | |
Ventia Services | $3.13 | Industrials | 0.64% | 28.28% | |
Goodman Group | $24.02 | Real Estate | -4.72% | 36.87% | |
HMC Capital | $5.72 | Real Estate | -7.29% | 30.00% | |
Data#3 | $8.42 | Technology | -0.47% | 23.64% |
Stocks at 52-Week Lows
Ticker | Company Name | Close Price | Sector | 1 Week | 1 Year |
|---|---|---|---|---|---|
IPH | $6.42 | Industrials | -0.62% | -25.35% | |
Nickel Industries | $0.66 | Materials | -1.49% | -37.14% | |
Iluka Resources | $6.31 | Materials | -5.54% | -37.77% |
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