July 16, 2024

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Zacks.com featured highlights include Amkor Technology, Tenet Healthcare, Leidos and Maximus

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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%.

Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back testing software.

The Research Wizard is a great place to begin. It’s easy to use. Everything is in plain language. And it’s very intuitive. Start your trial to the Research Wizard today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

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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

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the “#1 site for screening stocks” by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They’re virtually unknown to the general public. Yet today’s 220 Zacks Rank #1 “Strong Buys” were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit information about the performance numbers displayed in this press release.

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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

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