The 52-Week-High List: 17 Mid Cap Names On Tuesday
A software name’s sprint to a new high raises a classic question about the list’s other members.
Paycom Software (PAYC) has gained 53.4% over the last month alone on its way to a new 52-week high. It is one of 17 Mid Cap stocks in our coverage with a market value above $10 billion trading at its strongest price of the past year as of Tuesday. The group is heavily weighted toward a single area of the economy, with 8 of the 17 names belonging to the Health Care sector.
This raises a critical question for any name trading at a peak: does the underlying business justify the new price? The table below shows the 10 largest of these companies.
The Ten Largest At New Highs
The table below shows the 10 largest of the 17 names, sorted by market capitalization, with returns over four windows:
| Tickers | Market Cap |
1D % Chg |
1W % Chg |
1M % Chg |
1Y % Chg |
|---|---|---|---|---|---|
| TECK | $35.1 Bil | 2.0% | 12.1% | 19.9% | 114.7% |
| ILMN | $34.42 Bil | 0.8% | 19.5% | 18.7% | 121.0% |
| DGX | $27.14 Bil | 0.3% | 3.5% | 5.5% | 38.0% |
| EXPD | $25.25 Bil | 0.6% | 1.7% | 10.3% | 59.2% |
| ROKU | $23.57 Bil | 1.0% | 1.3% | 11.8% | 69.6% |
| JLL | $18.4 Bil | 1.4% | 5.9% | 17.9% | 29.6% |
| NWSA | $17.13 Bil | 0.5% | 5.2% | 13.3% | 2.1% |
| SOLV | $15.96 Bil | 0.4% | 4.8% | 13.8% | 24.6% |
| IVZ | $14.76 Bil | 0.8% | 1.1% | 9.4% | 56.7% |
| RVTY | $13.96 Bil | 1.5% | 9.7% | 15.5% | 33.0% |
Which names show business growth to match the price?
The list contains very different profiles. Teck Resources (TECK), which gained 19.9% over the last month, trades at 14.1 times trailing earnings. Over the last twelve months, its revenue grew 40.5% and its operating margin is 26.5%.
Contrast that with Roku (ROKU). The stock trades at 66.6 times trailing earnings. Its revenue grew 18.5% over the last twelve months, with an operating margin of 5.2%.
So is a new high a signal to buy or a warning?
A 52-week high is a statement of fact, not a verdict on the future. Price strength can persist, and stocks at new highs often continue to find support.
But a price is not a business. The disciplined move is always to look past the ticker tape and ask if the company’s financial performance earns its current valuation. A new high is a reason to do the work, not a reason to skip it.
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.
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.