7 Mid Cap Stocks Just Made New 52-Week Highs
A short list of new highs raises a sharp question about the price of strength in today’s market.
The Life Sciences Tools & Services industry placed 3 names on today’s list of stocks at new highs. As of Monday, September 21, there are 7 Mid Cap US and Canada-listed stocks in the Trefis coverage universe trading at their 52-week highs. The largest is Okta (OKTA), with a market value of about $33.7 billion, after its stock gained 42.6% over the last month.
That run far outpaces the S&P 500, which has returned +1.7% over the last month. With such a sharp move in a single name, the question becomes what kind of business fundamentals are supporting these new price levels.
Every Name On The List
The table below lists all 7 names this screen surfaced, largest first, with one-day, one-week, one-month, and one-year returns:
| Tickers | Market Cap |
1D % Chg |
1W % Chg |
1M % Chg |
1Y % Chg |
|---|---|---|---|---|---|
| OKTA | $33.7 Bil | 4.9% | 2.6% | 42.6% | 104.4% |
| FFIV | $25.53 Bil | 4.2% | 9.4% | 19.1% | 35.7% |
| RBRK | $23.01 Bil | 5.9% | 12.7% | 15.8% | 44.8% |
| MEDP | $17.59 Bil | 1.9% | 4.8% | 1.9% | 24.4% |
| DT | $16.48 Bil | 2.3% | 5.7% | 14.7% | 16.0% |
| TECH | $11.32 Bil | 0.1% | 0.3% | 0.4% | 37.5% |
| TXG | $10.28 Bil | 3.3% | 12.8% | 23.8% | 496.1% |
This screen covers US and Canada-listed stocks in the Trefis coverage universe. Mid Cap here means a market value between $10 billion and $40 billion, the upper figure excluded.
Is every new high built on the same foundation?
Not always. Consider two software companies on the list. Okta (OKTA) trades at 112.7 times trailing earnings, and its revenue grew 11.2% over the last twelve months, and its operating margin was 7.7%. In contrast, F5 (FFIV) trades at 35.1 times trailing earnings, and its revenue grew 9.4% over the last twelve months, and its operating margin was 25.0%.
So is a 52-week high a buy signal or a warning?
Neither. A stock at its highest price of the past year is a sign of strength, and that strength can persist. But a price is not a verdict on the business. The disciplined next step is to look past the price and ask whether the underlying revenue growth and margins earn the new valuation.
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.
One more pattern worth noticing: 4 of the 7 names are Information Technology stocks. When a whole group is making new highs together, a software ETF like IGV, which holds 2 of these names, is one way to own part of the group’s strength without betting on which single name leads it from here.
New Highs Fade. Discipline Compounds
Some of the names on this list will keep setting highs for years, and some are at the top of their run right now. Sorting one from the other, name by name, every day, is the work most investors never keep up with.
That sorting is what the Trefis High Quality (HQ) Portfolio does systematically: about 30 quality businesses screened for the fundamentals that sustain a run, held with rules instead of excitement. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Use the high list for ideas; use the portfolio for the compounding.