Investing 101: Seven Momentum Stocks Reaching New Highs

(List compiled by Becca Lipman. Data sourced from Finviz.)

If you are a risk averse investor that likes to go with the trend, this list may offer an interesting starting point for new additions to your portfolio.

For this list searched for companies with market over $300M that are reaching new 52-week highs. Ultimately we found seven stocks. We list them below with relevant data.

Interested in reviewing the implications and technical requirements for the final list? You got it:

The 52-Week High is the highest price paid for a share of the company in the last 52 weeks (one year). Conversely, the 52-Week Low is the lowest price paid for a share of a given stock in the last 52 weeks (one year). In this article we focus on 52-week highs.

Momentum investing aims to capitalise on the continuance of existing trends and the strength behind it.

Market capitalisation (Market Cap): Market capitalisation, commonly referred to as market cap, is the total market value of a company’s outstanding shares. It can be thought of as a measure of company’s size and can be calculated by multiplying the number of shares by the current price of the shares. Companies with higher market cap are considered to have more trustworthy information because they have greater histories of profitability and data.

Example, If company X has 15 million outstanding shares valued at $25 a share, the market cap would be $15M x $25 = $375M.  If Company’s X’s stock price rises to $30 then the new market value will be $450 Million ($15M x $30 = $450M).

Now that you’re armed with information, take a look at the list below and use it as a starting-off point in your own analysis. Do you think their momentum will continue to benefit their market values?

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1. Gammon Gold, Inc. (GRS): Gold Industry. Market cap of $1.61B. The stock is trading 18.84% above its 52-week high. Exhibiting strong upside momentum–currently trading 36.79% above its SMA20, 32.79% above its SMA50, and 60.29% above its SMA200. The stock has gained 21.96% over the last year.

2. New Gold, Inc. (NGD): Nonmetallic Mineral Mining Industry. Market cap of $5.73B. The stock is trading -1.3% below its 52-week high. Exhibiting strong upside momentum–currently trading 11.26% above its SMA20, 18.67% above its SMA50, and 29.29% above its SMA200. The stock has had a good month, gaining 18.92%.

3. Royal Gold, Inc. (RGLD): Gold Industry. Market cap of $3.94B. The stock is trading -1.9% below its 52-week high. Exhibiting strong upside momentum–currently trading 5.62% above its SMA20, 13.11% above its SMA50, and 30.06% above its SMA200. The stock has had a couple of great days, gaining 6.17% over the last week.

4. Sturm, Ruger & Co. Inc. (RGR): Sporting Goods Industry. Market cap of $590.37M. The stock is trading 1.39% below its 52-week high. Exhibiting strong upside momentum–currently trading 14.25% above its SMA20, 30.63% above its SMA50, and 62.38% above its SMA200. The stock has had a couple of great days, gaining 9.97% over the last week.

5. Renaissance Learning Inc. (RLRN): Multimedia & Graphics Software Industry. Market cap of $455.08M. The stock is trading -0.19% below its 52-week high. Exhibiting strong upside momentum–currently trading 15.99% above its SMA20, 21.69% above its SMA50, and 33.96% above its SMA200. The stock has had a couple of great days, gaining 6.82% over the last week.

6. Telvent Git S.A. (TLVT): Computer Based Systems Industry. Market cap of $1.17B. The stock is trading -0.07% below its 52-week high. The stock has gained 113.4% over the last year.

7. Waste Connections Inc. (WCN): Waste Management Industry. Market cap of $3.90B. The stock is trading -0.63% below its 52-week high. The stock has had a couple of great days, gaining 11.58% over the last week.

Interactive Chart: Press Play to see how analyst ratings have changed for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.


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