The 52-Week-High List: 12 Small Cap Names On Monday
A handful of smaller companies are hitting new highs, with a heavy concentration in just two parts of the market.
Kodiak Sciences (KOD) has gained 129.9% over the last month, a period where the S&P 500 returned -0.5%. As of Monday, September 28, there are 12 Small Cap US and Canada-listed stocks in the Trefis coverage universe trading at their 52-week highs.
The list is heavily weighted toward just two areas of the market. Health Care accounts for 5 of the names, and Communication Services holds 4. This raises the question of whether this strength is isolated or a leading signal.
The Biggest Names On The List
The table below shows the 10 largest of the 12 names, sorted by market capitalization, with returns over four windows:
| Tickers | Market Cap |
1D % Chg |
1W % Chg |
1M % Chg |
1Y % Chg |
|---|---|---|---|---|---|
| AMRX | $6.54 Bil | 3.7% | 1.7% | 13.8% | 113.5% |
| GRAL | $5.72 Bil | 4.5% | 22.8% | 60.8% | 174.8% |
| KOD | $5.63 Bil | 178.0% | 177.4% | 129.9% | 473.5% |
| CNK | $4.42 Bil | 1.6% | 5.9% | 4.9% | 36.8% |
| ABCL | $4.25 Bil | 9.6% | 10.0% | 12.3% | 199.4% |
| BATRA | $3.82 Bil | 1.0% | 4.0% | 6.9% | 31.0% |
| CDNA | $3.32 Bil | 1.4% | 18.9% | 23.4% | 334.4% |
| ATKR | $3.19 Bil | 0.0% | 0.1% | 1.0% | 59.2% |
| IMAX | $3.08 Bil | 0.1% | 3.9% | 8.1% | 73.2% |
| AMC | $2.38 Bil | 11.9% | 13.8% | 21.9% | 16.3% |
This screen covers US and Canada-listed stocks in the Trefis coverage universe. Small Cap here means a market value between $2 billion and $10 billion, the upper figure excluded.
The largest name on the list pairs a high multiple with modest growth.
Amneal Pharmaceuticals (AMRX), the largest company here with a market value of about $6.5 billion, is a case in point. The stock trades at 41.6 times trailing earnings. Over the last twelve months, its revenue grew 9.3% and its operating margin was 15.4%.
A 52-week high is a starting point, not a conclusion.
Lists like this are useful for finding stocks with positive price action. But a price is not a verdict on a business. The disciplined next step is to ask whether the underlying fundamentals, like revenue growth and margins, can support the new valuation. Strength can persist, but only when the business earns its level.
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 what separates a run that lasts from one that tops is usually 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 S&P 500, the S&P MidCap 400, and the Russell 2000. Let the highs point; let the discipline decide.