In this article, we will take a look at the 10 best 52-week high stocks to buy now. To see more such companies, go directly to 5 Best 52-Week High Stocks To Buy Now.
Investors are on the edge amid a lack of clarity on the Federal Reserve's possible moves to fight inflation that remains stubborn. Just a couple of weeks after Moody’s downgraded US banks, S&P Global also slapped several US banks with downgrades as the rating agency believes the environment is getting tougher for lenders. S&P Global Ratings lowered its ratings for KeyCorp, Comerica Inc., Valley National Bancorp, UMB Financial Corp., and Associated Banc-Corp. S&P Global noted that many clients are moving their funds to higher interest-rate accounts, increasing banks’ funding costs. It also said that the decline in “deposits has squeezed liquidity for many banks."
However, there isn’t enough bad news out there to stop investors from betting on the market. Bank of America recently reported its clients funneled a whopping $4.4 billion into US equities in just one week, the largest allocation in two months. But the question remains: Is the US economy out of the woods? Will there be a recession in 2023?
Russell Investments in its 2023 outlook said that chances are that the US economy would tip into recession in the next 12-18 months. The chances of recession would increase if the Federal Reserve continues to increase interest rates and companies keep announcing austerity measures like layoffs and cost-cutting. This would result in a decline in discretionary spending. The Russell Investments report also cited an industry survey conducted by Reuters in June, which said that analysts’ consensus is that recession will hit the economy in the final quarter of 2023. The report however said the timeline for recession could be delayed and it could come in 2024. The later the recession comes, the milder it would be since a recession coming in 2024 would give ample time to the Fed to see the real effects of its rate hikes. If recession hits the economy in 2023, it’d be difficult for the Fed to take easing steps.
The report also said:
“Most of the other major economies are also slowing and at risk from aggressive central bank tightening. Growth in the eurozone is buckling under a steep decline in bank lending, and persistent inflation is forcing the Bank of England to tighten further despite the lack of UK economic growth. China’s growth impulse is faltering following the post-pandemic lockdown surge. Japan remains an outlier, where monetary policy is still ultra-accommodative and gross domestic product (GDP) growth is likely to remain above trend.
Russell Investments also highlighted the major rally of tech stocks this year and gave its credit to mostly AI-led hype in the market. The report said that the potential of AI cannot be ignored and the hype surrounding AI stocks like Nvidia and Meta could further increase once the Fed starts to cut rates and the era of easy money begins.
The report also said that while headline inflation has peaked, core inflation remains sticky, driven mostly by growth in wages. The report said that core inflation could decline in the coming months as “heat” leaves the labor market.
In this background, it’d be wise to see which stocks are gaining momentum in the market and are picked up by smart money investors. The stocks gaining in 2023 have already shown their resilience and could continue their bull run based on their long-term growth catalysts.
Best 52-Week High Stocks
Photo by Ruben Sukatendel on Unsplash Our Methodology
For this article, we first used a stock screener to identify stocks that recently hit 52-week highs or are currently trading their 52-week highs. We got a long list of stocks as a result. We narrowed down this list by choosing 13 52-week high stocks with the highest number of hedge fund investors. We gauged hedge fund sentiment for stocks using Insider Monkey’s database of 910 hedge funds and their holdings updated as of the end of second quarter.
NexGen Energy Ltd. (NYSE:NXE) shares have gained about 44% over the past one year.
As of the end of the second quarter of 2023, 19 hedge funds in the database of Insider Monkey were long NexGen Energy Ltd. (NYSE:NXE). The biggest stakeholder of NexGen Energy Ltd. (NYSE:NXE) was Brad Dunkley and Blair Levinsky’s Waratah Capital Advisors which had a stake worth about $20 million in the company.
Remitly Global, Inc. (NASDAQ:RELY) is trading near 52-week highs. Wolfe Research recently upgraded Remitly Global, Inc. (NASDAQ:RELY) to Outperform from Peer Peform. Wolfe gave a $28 price target to the stock. For the second quarter, Remitly Global, Inc. (NASDAQ:RELY) posted a GAAP EPS of -$0.11 beating estimates by $0.05. Revenue in the quarter jumped about 49% year over year to $234.03 million, surpassing estimates by $18.21 million.
Insider Monkey’s database of holdings of 910 elite hedge funds shows that 22 hedge funds were invested in Remitly Global, Inc. (NASDAQ:RELY) as of the end of the second quarter. The biggest stakeholder of Remitly Global, Inc. (NASDAQ:RELY) during this period was David Blood and Al Gore’s Generation Investment Management which owns a $160 million stake in the company.
Permian Resources Corporation (NYSE:PR) is making headlines after the company said it will buy Earthstone Energy for $4.5 billion. Permian Resources Corporation (NYSE:PR) said the buyout will boost cash returns to the company’s shareholders. Permian Resources Corporation (NYSE:PR) also upped its quarterly dividend by a whopping 20%, effective the first quarter of 2024.
After the deal announcement, Siebert Williams Shank reiterated its Buy rating on Permian Resources Corporation (NYSE:PR). Permian Resources Corporation (NYSE:PR) said that the deal would expand Permian Resources’ Permian Basin footprint to over 400,000 net acres.
Out of the 910 hedge funds in Insider Monkey’s database, 23 hedge funds were long Permian Resources Corporation (NYSE:PR) as of the end of the first quarter.
Natural gas company CNX Resources Corporation (NYSE:CNX) ranks 10th in our list of the best 52-week high stocks to buy according to hedge funds. CNX Resources Corporation (NYSE:CNX) has gained about 23% over the past one year. In July CNX Resources Corporation (NYSE:CNX) posted Q2 results. Revenue in the period jumped about 99.7% year over year to $839.7 million.
As of the end of the first quarter of 2023, 25 hedge funds out of the 910 funds tracked by Insider Monkey were long CNX Resources Corporation (NYSE:CNX). The biggest stakeholder of CNX Resources Corporation (NYSE:CNX) during this period was Mason Hawkins’ Southeastern Asset Management which owns a $215 million stake in the company.
Longleaf Partners Fund made the following comment about CNX Resources Corporation (NYSE:CNX) in its Q4 2022 investor letter:
“CNX Resources Corporation (NYSE:CNX) – CNX was the top contributor for the year, but we were surprised it wasn’t an even larger one. Its value per share strongly outgrew its price performance for the year. While all energy companies saw a boost from higher prices, CNX had previously done more price hedging than peers. This decision held back near-term reported earnings, which remain the market’s focus. This helped relative returns at unhedged and more leveraged companies that were hoping for higher prices. CNX has been taking advantage of a widening price-to-value gap for itself as the year went on by continuing to be one of our largest share repurchasers. When you combine strong capital allocation like this with geopolitical conflict solidifying the long-term value of North American natural gas while hedges roll off with the passage of time, we remain excited about CNX’s future.”
Ranking 9th in our list of the best 52-week high stocks to buy now is IDEAYA Biosciences, Inc. (NASDAQ:IDYA). IDEAYA Biosciences, Inc. (NASDAQ:IDYA) recently said the FDA cleared a clinical study for cancer candidate GSK101 (IDE705). IDEAYA Biosciences, Inc. (NASDAQ:IDYA) will receive a $7 million milestone payment from its partner GSK (NYSE:GSK) as a result of this development.
As of the end of the second quarter of 2023, 26 hedge funds in Insider Monkey’s database of 910 funds reported owning stakes in IDEAYA Biosciences, Inc. (NASDAQ:IDYA). The biggest stakeholder of IDEAYA Biosciences, Inc. (NASDAQ:IDYA) was Mark Lampert’s Biotechnology Value Fund / BVF Inc. which owns a $134 million stake in the company.
Nutrition products company BellRing Brands, Inc. (NYSE:BRBR) ranks 8th in our list of the best 52-week high stocks to buy now. As of the end of the second quarter of 2023, 27 hedge funds in Insider Monkey’s database of 910 hedge funds were long BellRing Brands, Inc. (NYSE:BRBR).
BellRing Brands, Inc. (NYSE:BRBR) was recently featured on Needham’s Conviction picks list. Needham’s Matt praised BellRing Brands, Inc. (NYSE:BRBR) after the company’s Q3 earnings report. Adjusted EPS in the quarter came in at $0.34, beating estimates by $0.02. Revenue in the period jumped 20% year over year to $445.9 million, surpassing estimates by $5.43 million.
Civitas Resources, Inc. (NYSE:CIVI) is up about 24% over the past one year. Civitas Resources, Inc. (NYSE:CIVI) recently posted solid Q2 results. GAAP EPS in the quarter totaled $1.72, beating estimates by $0.05.
As of the end of the second quarter of 2023, 30 hedge funds in the database of Insider Monkey were long Civitas Resources, Inc. (NYSE:CIVI).
Greenlight Capital made the following comment about Civitas Resources, Inc. (NYSE:CIVI) in its second quarter 2023 investor letter:
“We closed long positions in Civitas Resources, Inc. (NYSE:CIVI) and Global Payments. Civitas Resources (formerly Extraction Oil & Gas) was a small investment that we initiated in 2019 by purchasing Extraction’s distressed debt before it went bankrupt. The reorganization was successful and our entry price proved to be quite favorable relative to the company’s owned resources. After the recent announcement of a large acquisition outside its core region, we chose to exit the investment at a 35% IRR.”
Deepwater drilling company Seadrill Limited (NYSE:SDRL) shares have gained about 72% over the past one year. As of the end of the second quarter of 2023, 30 hedge funds out of the 910 tracked by Insider Monkey had stakes in Seadrill Limited (NYSE:SDRL).
Seadrill Limited (NYSE:SDRL) recently posted Q2 results. GAAP EPS in the period came in at $1.16 beating estimates by $0.53. Revenue in the quarter jumped about 64% year over year to $414 million, surpassing estimates by $34.07 million.
