Where The Buying Ran Strongest: 24 Large Cap Stocks At 52-Week Highs
A concentrated list of market leaders reaches new peaks, raising questions about valuation.
On Thursday, August 13, just 24 Large Cap stocks reached a 52-week high. The list is topped by healthcare giant Merck (MRK), with a market value of about $335.1 billion. This narrow set of winners, concentrated in sectors like Diversified Banks and Technology Hardware, Storage & Peripherals, raises a central question: are these new highs supported by underlying business performance, or have prices run ahead of fundamentals? The names below tell the story.
The Ten Largest At New Highs
The table below shows the 10 largest of the 24 names, sorted by market capitalization, with returns over four windows:
| Tickers | Market Cap |
1D % Chg |
1W % Chg |
1M % Chg |
1Y % Chg |
|---|---|---|---|---|---|
| MRK | $335.1 Bil | 2.0% | 5.6% | 9.7% | 74.4% |
| DELL | $320.9 Bil | 2.1% | 13.0% | 20.0% | 253.6% |
| PANW | $317.2 Bil | 2.3% | 10.2% | 11.9% | 125.8% |
| AMGN | $225.6 Bil | 0.4% | 3.2% | 16.6% | 51.0% |
| SCHW | $192.2 Bil | 0.7% | 2.2% | 7.1% | 12.6% |
| BMO | $130.5 Bil | 0.3% | 1.8% | 1.0% | 68.1% |
| SBUX | $123.7 Bil | 0.1% | 3.2% | 3.3% | 19.3% |
| NET | $116.7 Bil | 6.2% | 16.3% | 21.2% | 63.5% |
| SNOW | $116.5 Bil | 1.5% | 6.1% | 24.1% | 74.8% |
| CM | $112.3 Bil | 1.2% | 3.3% | 1.4% | 73.0% |
Growth and price are not always aligned on this list.
Consider Dell Technologies (DELL), which has gained 20.0% over the last month. That run is backed by revenue that grew 38.6% over the last twelve months, with an operating margin of 8.1%. The company trades at 38.2 times trailing earnings.
Contrast that with the largest name on the list, Merck (MRK). Its revenue grew 4.6% over the same period, with an operating margin of 10.5%, yet it trades at 105.5 times trailing earnings.
A new high is a question, not an answer.
Strength can persist, and a stock at its strongest price of the last year is a sign of positive market reception. But a price is not a verdict on the business itself. A 52-week-high list is best used as a starting point for research. The disciplined next step is to look past the price and determine if the company’s growth and margins truly earn today’s valuation.
Before chasing any name on this list, ask what the company itself expects next. Our Guidance Momentum screen surfaces the stocks whose managements just raised their own outlooks, which is the momentum that tends to have staying power.
Chasing Highs Is A Reflex. Owning Strength Is A System
A 52-week-high list is seductive: everything on it has been going right. But buying a stock because it is at its high is buying a price, and prices revert; what persists is the quality underneath the run.
The Trefis High Quality (HQ) Portfolio is built to own that quality before and after it makes headlines: roughly 30 businesses selected for consistent cash generation, strong margins, and resilient balance sheets, sized and rebalanced with rules. It has a track record of outpacing a benchmark that combines the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000. Admire the list; own the system.