20 Mid Cap Stocks Hit 52-Week Highs On Monday
A fresh list of mid-cap names at their highest prices of the year is led by a notable concentration in one part of the market.
As of Monday, August 24, 20 Mid Cap US and Canada-listed stocks with a market value above $10 billion are trading at their 52-week highs. The list is heavily weighted toward a single area of the market, with Health Care accounting for 8 of the 20 names. The largest company on the list, Illumina (ILMN), gained 15.0% over the last month.
This kind of clustering raises a key question: is the strength in these names a story of individual business performance, or just a broad bet on one part of the economy? The ten largest of these companies are detailed below.
The Ten Largest At New Highs
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- Market Movers | Winners: CYPH, FWDI, GENB | Losers: RGNX, AIAI, TMS
The table below shows the 10 largest of the 20 names, sorted by market capitalization, with returns over four windows:
| Tickers | Market Cap |
1D % Chg |
1W % Chg |
1M % Chg |
1Y % Chg |
|---|---|---|---|---|---|
| ILMN | $34.15 Bil | 1.7% | 15.6% | 15.0% | 124.8% |
| WTW | $33.32 Bil | 2.6% | 7.6% | 18.9% | 5.3% |
| QSR | $28.3 Bil | 0.9% | 5.7% | 12.6% | 32.6% |
| LH | $27.93 Bil | 0.9% | 4.9% | 14.3% | 24.0% |
| OMC | $26.51 Bil | 1.6% | 4.1% | 11.6% | 19.4% |
| SOLV | $15.9 Bil | 1.9% | 5.1% | 17.0% | 26.7% |
| CRL | $14.62 Bil | 1.1% | 4.2% | 31.8% | 93.2% |
| FIVE | $14.52 Bil | 5.0% | 10.1% | 29.3% | 85.3% |
| SEIC | $13.47 Bil | 1.1% | 5.0% | 11.6% | 27.2% |
| SJM | $13.43 Bil | 1.2% | 6.8% | 7.4% | 16.0% |
Which names show business growth to match the price?
The list contains very different stories. Omnicom (OMC) shows revenue growth of 40.6% over the last twelve months, with an operating margin of 5.3%. But its stock trades at 63.8 times trailing earnings, a multiple based on a period that includes at least one loss quarter, making it not comparable to a clean-year multiple.
In contrast, Willis Towers Watson (WTW) shows steadier figures. Its revenue grew 3.0% over the last twelve months, and it produced an operating margin of 23.5%. The stock trades at 21.1 times trailing earnings.
So is a 52-week high a buy signal?
Not on its own. A stock trading at its highest price of the past year is a sign of strength, and that strength can persist. But a price is just a price, not a verdict on the business itself.
The disciplined next step is always the same: to check whether the underlying business fundamentals can earn the new, higher valuation. A 52-week-high list is a great place to start looking, not a place to stop thinking.
A new high tells you what the market already believes. The harder question is which of these runs management itself is underwriting. Our Guidance Momentum screen tracks exactly that: stocks where the company raised its own forward numbers.
Strength Is A Clue. It Is Not A Plan
A stock at its 52-week high has momentum on its side, and momentum is a real force. It is also the most crowded signal in the market, and the difference between a run that lasts and one that tops is always the business underneath.
Checking that business, across thousands of names, is how the Trefis High Quality (HQ) Portfolio is assembled: roughly 30 companies that pass the quality screens, rebalanced on 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. Let the highs point; let the discipline decide.