Some simple trading strategies involve buying oversold stocks with great numbers — but another great investment strategy for your retirement money is to buy stocks with strength. There�s no denying the market has been swept up in a wave of selling, and over the past eight weeks we�ve seen the S&P 500 descend about 11% off its April highs.� As stocks now are officially in correction territory, investors may think it�s the time to go bargain hunting.� While it�s true there may be many stocks on sale right now, the smart money knows that there are still many high-quality names trading at or very near their 52-week highs (at least, as of this morning’s opening bell).� In fact, many stocks with the best momentum right now are very big consumer names such as food-giants General Mills (GIS) and Hershey (HSY), and diversified product maker Procter & Gamble (PG).
A Bloomberg screen of stocks with market capitalization greater than 500 million, and that also trade within 5% of their 52-week high, revealed a number of high-profile stocks enjoying their biggest gains of the year.� As might be expected during stressful market times, consumer goods stocks have seen quite a bit of buying during the correction.� In addition to the aforementioned consumer names, the list includes food companies Campbell Soup (CPB) and Kellogg (K), and household product-maker Clorox (CLX).
In addition to these stalwart consumer names the list included several technology and software companies, including wireless semiconductor chip-maker Broadcom (BRCM), and enterprise software-firms Novell (NOVL) and Sybase (SY).� The move higher in these tech giants shows that there�s bullish momentum in more than just traditional defensive plays.
Other top names making trading near new 52-week highs include automotive-retailer Autozone (AZO); specialty beverage-maker Boston Beer (SAM); medical device-maker Cyberonics (CYBX); discount-retailer Dollar Tree (DLTR) and refuse disposal and recycling firm Waste Connection (WCN).
If part of your trading strategy is to buy into strength, or if you�re a momentum investor looking to ride stocks trading at or near new 52-week highs, you�ve still got plenty of investable opportunities — despite the wider market downturn.� Here are 14 stocks up against a new high as of this morning’s open:
| Ticker | Stock | 52Wk High | 6/15 Open | Return YTD |
| AZO | Autozone | $195.75 | $191.50 | +21.2% |
| SAM | Boston Beer | $71.73 | $71.04 | +52.3% |
| BRCM | Broadcom | $36.94 | $34.27 | +12.0% |
| CPB | Campbell Soup | $37.17 | $37.00 | +8.8% |
| CLX | Clorox | $65.50 | $64.50 | +5.9% |
| CYBX | Cyberonics | $24.57 | $24.39 | +18.7% |
| DLTR | Dollar Tree | $63.82 | $63.24 | +31.7% |
| GIS | General Mills | $38.46 | $38.46 | +7.9% |
| HSY | Hershey | $52.10 | $51.03 | +40.5% |
| K | Kellogg | $56.00 | $54.97 | +19.5% |
| NOVL | Novell | $6.26 | $6.18 | +50.6% |
| PG | Procter & Gamble | $64.58 | $61.61 | +1.8% |
| SY | Sybase | $66.00 | $64.49 | +48.7% |
| WCN | Waste Connection | $36.44 | $36.31 | +9.0% |
As of this writing, Jim Woods did not own a position in any of the stocks named here.
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