雅虎香港財經 Zacks.com featured highlights include Amkor Technology, Tenet Healthcare, Leidos and Maximus
For Immediate Release
Chicago, IL – July 1, 2024 – Stocks in this week’s article are Amkor Technology AMKR, Tenet Healthcare Corp. THC, Leidos LDOS and Maximus MMS.
4 Stocks Trading Near 52-Week High That Can Climb Further
Stocks hitting their 52-week high and delivering consistent performance offer attractive opportunities to investors while building a portfolio. This is because stocks near that level are perceived to be winners. However, stocks touching a new 52-week high are often predisposed to profit-taking, resulting in pullbacks and trend reversals.
Moreover, given the high price, investors often wonder if the stock is overpriced. While the speculations are not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced.
In fact, investors might lose out on top gainers in an attempt to avoid the steep prices.
Stocks such as Amkor Technology, Tenet Healthcare Corp., Leidos and Maximus are expected to maintain their momentum and keep scaling new highs. Extensive information on a stock is necessary to understand whether or not there is scope for further upside.
Here, we discuss a strategy to find the right stocks. The strategy borrows from the basics of momentum investing. This technique bets on "buy high, sell higher."
52-Week High: A Good Indicator
Many times, stocks that hit a 52-week high fail to scale higher despite having potential. This is because investors fear that the stocks are overvalued and expect the price to crash.
In fact, overvaluation is natural for most of these stocks as investors' focus (or willingness to pay a premium) has helped them reach the level. But that does not always indicate an impending decline. Factors such as robust sales, surging profit levels, earnings growth prospects and strategic acquisitions that encouraged investors to bet on these stocks could keep them motivated if there is no tangible negative. In other words, the momentum might continue.
Also, when a string of positive developments dominates the market, investors find their under-reaction unwarranted, even if there are no company-specific driving forces.
Here are three stocks of the nine that made it through the screen:
Amkor Technology is the world's largest independent semiconductor packaging and test services provider and a leader in advanced packaging technology development.
Amkor's growth potential stems from increasing chip complexity and demand for advanced packaging. The company is expanding capacity in strategic locations like Taiwan and Portugal. Its diverse customer base spans multiple semiconductor companies, reducing single-client dependency. Amkor serves growing sectors such as automotive electronics, 5G, IoT, and AI, potentially driving long-term demand.
The Zacks Consensus Estimate for AMKR's 2024 earnings has remained steady at $1.78 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 44.29%.
Tenet Healthcare is a major investor-owned healthcare services company operating general hospitals and related facilities across multiple states, with key offices in California and Florida.
Tenet's revenue growth is driven by increasing patient admissions and strategic mergers and acquisitions. The company is optimizing operations through targeted divestitures of underperforming assets. Its Ambulatory Care unit is projected to generate $4.2-$4.3 billion in 2024 net operating revenues. Tenet's financial performance is further enhanced by contractual rate increases in its Conifer joint venture. This combination of organic growth, strategic acquisitions, operational optimization and strong performance in key business units positions Tenet Healthcare for continued success in the healthcare services sector.
The Zacks Consensus Estimate for THC's 2024 earnings has moved north by 4.5% to $8.55 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 56.5%.
Leidos Holdings is a global science and technology leader serving defense, intelligence, civil, and health markets. Its core capabilities include cybersecurity, data analytics, enterprise IT modernization, operations and logistics, sensors, software development and systems engineering.
A primary revenue source for Leidos is contract wins from the Pentagon and U.S. allies for affordable military products. The company recently clinched a contract to offer the U.S. Air Force enterprise information technology (IT) and telecommunications support, including cybersecurity. The agreement is valued at $738 million. These contracts boost the company's bookings and backlog. As of March 2024, Leidos had a healthy backlog of $36.57 billion, up from $35.09 billion in the previous year. This strong backlog suggests promising revenue prospects for the upcoming quarters.
The Zacks Consensus Estimate for LDOS's 2024 earnings has remained steady at $8.75 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 23.43%.
Maximus is a global operator of government health and human services programs, employing over 39,600 people across the United States, Australia, Canada, Saudi Arabia, Singapore, and the United Kingdom.
The company pursues an aggressive acquisition strategy to expand its business scope, deepen client relationships and enhance technical capabilities. These acquisitions complement Maximus' long-term organic growth initiatives by bringing in new expertise and processes. Maximus benefits from strong operational cash flows, supporting its growth strategies and financial stability. The company's consistent dividend payments have boosted investor confidence and positively impacted earnings per share. This multifaceted approach positions Maximus for sustained growth and value creation in its market sector.
The Zacks Consensus Estimate for MMS's fiscal 2024 earnings has moved north by 1.8% to $5.79 per share in the past 30 days. The company beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same twice, the average negative surprise being 2.69%.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2294807/4-stocks-trading-near-52-week-high-that-can-climb-further
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Tenet Healthcare Corporation (THC) : Free Stock Analysis Report
Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report
Maximus, Inc. (MMS) : Free Stock Analysis Report
Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report
