ASX 200 stocks hitting fresh 52-week highs and lows – Week 26

Welcome back to the 52-week Series – A recap of ASX 200 stocks that have tagged a fresh yearly highs and lows in the past week.

52-Week Highs and Lows by Sector

• Financials: 11 Highs, 0 Lows

• Telecommunication: 2 Highs, 1 Low

• Technology: 2 Highs, 0 Lows

• Materials: 1 High, 4 Lows

• Real Estate: 1 High, 3 Lows

• Healthcare: 1 High, 1 Low

• Discretionary: 1 High, 1 Low

• Industrials: 1 High, 1 Low

• Utilities: 1 High, 0 Lows

• Staples: 0 Highs, 0 Lows

• Energy: 0 Highs, 0 Lows

Why do 52-Week Highs and Lows Matter

Here are some of the key points our first 52-Week article:

• A research thesis by Thomas J. George and Chuan-Yang Hwang titled The 52-Week High and Momentum Investing concludes that stocks nearing their 52-week high tend to outperform in the future, surpassing the predictive power of past returns.

• US trader Mark Minervini also notes that “when you see a growing number of names in a particular industry making new 52-week highs (especially coming off a market low), this could be an indication that a group advance is underway.”

• 1851 Capital Chief Investment Officer Chris Stott says the numbers are useful in helping to determine which stocks have the momentum to keep making fresh highs. The data is used to identify continuous winners and generate fresh ideas.

What Does the Data Tell Us

This week's list of 52-week highs and lows showcases a handful of incremental highs, with banks, insurers, and fund managers/administrators continuing to dominate the top performers.

On Thursday, 27 June, banks experienced a sharp decline in early trading following the release of a higher-than-expected May CPI print. Most major banks initially fell around 2% before partially recovering, ending the day down an average of 0.7%.

Morgan Stanley analysts noted that since the RBA's pause regime began in December 2023, the price-to-earnings ratios for the Big Four Banks have been re-rated three times. They anticipate a waning of optimism as investors become increasingly cautious about the economic outlook. Despite these concerns, banks continue to defy bearish expectations, trading close to their recent highs.

In M&A news, the Federal Treasurer approved ANZ's acquisition of Suncorp, with completion targeted by 31 July. Following this announcement, Suncorp's stock price rose 3.6% last Friday, reaching its highest level since December 2007.

Separately, Insurance Australia Group saw a significant surge last week after announcing a five-year natural perils reinsurance agreement with Berkshire Hathaway and Canada Life Reinsurance. This deal provides up to $2.8 billion of additional protection over the period, a move that was well-received by analysts.

Financials at 52-week highs

Data shows any stock to have hit a 52-week high in the past week. Share price and performance as at Friday, 28 June close

ASX 200 stocks at 52-week highs

Data shows any stock to have hit a 52-week high in the past week. Data sorted by sector then 1-year performance. Share price and performance as at Friday, 28 June close

Real Estate stocks at 52-week lows

Data shows any stock to have hit a 52-week low in the past week. Share price and performance as at Friday, 28 June close

Materials at 52-week lows

Data shows any stock to have hit a 52-week low in the past week. Share price and performance as at Friday, 28 June close

ASX 200 stocks at 52-week lows

Data shows any stock to have hit a 52-week high in the past week. Data sorted by sector then 1-year performance. Share price and performance as at Friday, 28 June close