Top Stocks at 52-Week Highs: They Aren't What You Think

• (0:30) - Screening For Stocks Hitting 52-Week Highs
• (6:15) - Tracey’s Top Stock Picks For Your Watchlist Right Now
• (27:35) - Episode Roundup: ADM, BWA, BAC, GOOGL, URI, LECO, HE, CCL, LVS, NEM, B, TPC
•                 [email protected]

Welcome to Episode #457 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.

This week, Tracey is going solo to talk about stocks trading at or near their 52-week highs. They also had to have a top Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold).

Running this screen returned 223 matches. What stocks were in it?

There were few big cap technology companies but many in the old economy industries like construction and utilities. Travel stocks also made the cut such as cruise and hotel companies.

Also, with gold at new all-time highs, many gold mining companies also made the screen. 

Here are 5 of the 223 matches, and a few more are mentioned on the podcast as well.

5 Top Stocks Trading Near Their 52-Week Highs

1. Alphabet Inc. (GOOGL)

Alphabet is at 52-week highs but also all-time highs. Shares of Alphabet are up 11.8% year-to-date.

It’s considered to be the cheapest of the Magnificent 7 stocks. Alphabet has a forward price-to-earnings (P/E) ratio of 20.8. It also has an attractive PEG ratio of just 1.4. A PEG ratio under 1.0 usually indicates value. A PEG ratio at 1.4 is very low.

Alphabet is a Zacks Rank #3 (Hold).

Can Alphabet continue with this momentum?

2. BorgWarner Inc. (BWA)

BorgWarner may surprise some people. It is in the automotive industry and specializes in technology for combustion, hybrids, and EVs.

Shares of BorgWarner are up 35% year-to-date to 52-week highs. It’s cheap with a forward P/E of just 9.5.

BorgWarner is a Zacks Rank #3 (Hold).

Should BorgWarner be on your short list?

3. Bank of America Corp. (BAC)

Warren Buffett has hit gold again with Bank of America, which is in the Berkshire Hathaway equity portfolio. Shares of this big bank are up 14.9% year-to-date and are hitting both 52-week and all-time highs.

Bank of America is still a cheap stock. It has a price-to-book (P/B) ratio of just 1.35. Bank analysts say to buy a bank at a P/B ratio of 1.0 and sell at 2.0.

Bank of America is a Zacks Rank #3 (Hold).

Should a large cap bank like Bank of America be on your short list?

4. Lincoln Electric Holdings, Inc.  (LECO)

Lincoln Electric is a full-line manufacturer and reseller of welding and cutting products. It has 56 manufacturing facilities in 19 countries. Lincoln Electric has a market cap of $13.7 billion.

Shares of Lincoln Electric are up 31% year-to-date to 52-week highs. It’s not cheap. It has a forward P/E of 26.

Lincoln Electric is a Zacks Rank #2 (Buy).

Is there still time to buy Lincoln Electric?

5. United Rentals, Inc. (URI)

United Rentals is the largest equipment rental company in the world. Shares of United Rentals are up 35.6% year-to-date and are at 52-week and all-time highs.

It has a forward P/E of 21.6 and a PEG ratio of 2.19. That makes it more expensive on a P/E and PEG ratio basis than Alphabet.

United Rentals is a Zacks Rank #3 (Hold).

Should United Rentals be on your short list?

What Other Stocks Near Their 52-Week Highs Are Featured on the Podcast?

Tune into this week’s podcast to find out.

[In full disclosure, Tracey owns shares of GOOGL in her personal portfolio.]

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research