Mid Cap Stocks At 52-Week Highs: Friday’s Full List

A short list of market leaders prompts a closer look at what separates a strong stock from a strong business.

DexCom (DXCM) has gained 21.2% over the last month, a period where the S&P 500 returned just +0.2%. It is the largest name on a very short list from Friday, July 31, when just 4 Mid Cap stocks from the Russell 3000 reached a 52-week high.

With no clear industry theme among the names, the central question is what kind of business fundamentals are supporting these prices. The list below details the companies at their strongest levels of the past year.

The Complete 52-Week-High List

The table below lists every stock at its 52-week high, largest first, with one-day, one-week, one-month, and one-year returns:

Which business is actually earning its new high?

The two largest companies on the list, DexCom (DXCM) and Illumina (ILMN), present a study in contrasts. DexCom's new high is accompanied by revenue that grew 15.5% over the last twelve months and an operating margin of 22.9%. It trades at 31.9 times trailing earnings.

Illumina, however, trades at a higher multiple of 36.8 times trailing earnings, yet its revenue grew just 1.3% over the same period. Its operating margin is 19.6%. The market is pricing both for strength, but the underlying growth rates are worlds apart.

How should a disciplined investor read this list?

A stock at its strongest price of the last year is a sign of strength, and that strength often persists. But a price is just a price, not a verdict on the business itself. A 52-week high is a starting point for research, not an end point.

The disciplined next step is to ask whether the company's operating results, like revenue growth and margins, justify the market's current valuation. A new high can mean a great company is being recognized, or that a stock's run has gotten ahead of its fundamentals.

Before chasing any name on this list, ask what the company itself expects next. Our Guidance Momentum screen surfaces the stocks whose managements just raised their own outlooks, which is the momentum that tends to have staying power.

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