In this article, we will take a look at the 12 best 52-week high stocks to buy now. If you want to see more stocks in this selection, go to the 5 Best 52-Week High Stocks To Buy Now.
The equity markets have been taking a beating this year as the Dow Jones Industrial Average (DJIA) Index, the S&P 500 Index, and the tech-heavy NASDAQ Composite Index have observed a year-to-date (YTD) decline of 19.8%, 9.1%, and 33%, respectively. Furthermore, notable hedge fund managers are also betting against the stock market. In an interview with CNBC, Billionaire David Tepper shared that he is leaning towards taking a short position on stocks as the increase in benchmark interest rates will further dent stock price performances. Elon Musk-led Tesla, Inc. (NASDAQ:TSLA) has also seen its stock lose 68% of its value this year as investors have been concerned by the billionaire’s high interest in buying and managing social media and microblogging platform Twitter. These developments have caused Mr. Musk to lose his position as the wealthiest person in the world. The Austin, Texas-based electric vehicle (EV) manufacturer revealed a steep discount of $7,500 on Model 3 and Model Y, which are the two highest-selling variants for the company. The company is making this move to boost the weakening demand for its products.
However, all is not lost in the equity markets, as there are notable stocks across numerous sectors that are hovering around their 52-week highs. Some of these stocks, such as T-Mobile US, Inc. (NASDAQ:TMUS), Energy Transfer LP (NYSE:ET), and Graphic Packaging Holding Company (NYSE:GPK), still offer significant upside potential to investors due to their strong business models.
Our Methodology
We have shortlisted the 12 best stocks that are trading at most 5% lower than their 52-week highs. These stocks are expected to provide strong long-term returns to investors due to their strong fundamentals and growth strategies. We have discussed the analysts’ ratings to provide investors with the overall market sentiment on these companies. The stocks have been ranked according to the number of hedge funds having a stake in them as of Q3 2022.
12 Best 52-Week High Stocks To Buy Now
12. Mobileye Global Inc. (NASDAQ:MBLY)
Number of Hedge Fund Holders: N/A
Mobileye Global Inc. (NASDAQ:MBLY) is a Jerusalem, Israel-based developer of an advanced driving-assistance system based on cameras, computer chips, and software.
The company went public on October 26 following its spin-off from Intel Corporation (NASDAQ:INTC) and is an important player driving the progress of autonomous driving systems. On the first day of trading, Mobileye Global Inc. (NASDAQ:MBLY) stock soared by more than 37%. On December 16, Vijay Rakesh at Mizuho increased the price target on Mobileye Global Inc. (NASDAQ:MBLY) from $35 to $40 and maintained a Buy rating on the stock. The analyst thinks that the stock price outperformance has been due to the positive response received by the company’s SuperVision platform based on the pent-up demand from leading Chinese automobile manufacturers. Rakesh anticipates the company to experience tailwinds as the constraints in the global automotive supply chain ease. Furthermore, Mobileye Global Inc. (NASDAQ:MBLY) has multiple new product launches lined up for 2023.
11. Provention Bio, Inc. (NASDAQ:PRVB)
Number of Hedge Fund Holders: 13
Provention Bio, Inc. (NASDAQ:PRVB) is a New Jersey-based clinical-stage biotech company focused on developing affordable therapeutics to treat or manage autoimmune and inflammatory diseases.
On November 22, Charles Zhu at Guggenheim upgraded Provention Bio, Inc. (NASDAQ:PRVB) stock from a Neutral to a Buy rating and assigned the stock a target price of $12. The analyst anticipates the company to experience near-term catalysts due to the positive outcome from clinical data. Zhu highlighted that the management has been encouraged by the positive data coming out for lorigerlima and is expected to present data at a medical conference in Q1 2023. The analyst also added that the balance sheet of Provention Bio, Inc. (NASDAQ:PRVB) had been strengthened by the partnership with Gilead Sciences, Inc. (NASDAQ:GILD).
Adage Capital Management was the leading hedge fund investor in Provention Bio, Inc. (NASDAQ:PRVB) by over 500% as of Q3 2022.
10. Gerdau S.A. (NYSE:GGB)
Number of Hedge Fund Holders: 15
Gerdau S.A. (NYSE:GGB) is a Sao Paulo, Brazil-based steel manufacturer with a presence in 10 countries and an annual installed capacity of 21.7 million tons. The company, with a history of over 120 years, boasts a headcount of over 30,000 employees globally. Gerdau S.A. (NYSE:GGB) is a member of the 30 biggest producers of steel in the world and is also in the business of mining iron ore.
Not only is Gerdau S.A. (NYSE:GGB) stock trading around a 52-week high, but it also offers an attractive forward dividend yield of 11.88% as of December 27. The company also has a strong share buyback plan in place. Experts believe that despite its rich history, Gerdau S.A. (NYSE:GGB) is still in the early phase of expansion. In the past, Gerdau S.A. (NYSE:GGB) has shown resilience in margins growth and efficient asset utilization even during economic downturns. These fundamentals have made analysts consider Gerdau S.A. (NYSE:GGB) as one of the best buy-the-dip stocks in the market.
9. Viking Therapeutics, Inc. (NASDAQ:VKTX)
Number of Hedge Fund Holders: 18
Viking Therapeutics, Inc. (NASDAQ:VKTX) is a San Diego, California-based biotech company developing therapeutics for patients that are suffering from endocrine and metabolic disorders.
On December 20, Naz Rahman at Maxim increased the target price for Viking Therapeutics, Inc. (NASDAQ:VKTX) from $10 to $15 and maintained a Buy rating on the stock. The analyst made the upward revision in target price following the announcement by Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) that its advanced clinical candidate, resmetirom, was able to meet the primary endpoints at 52 weeks. This is a positive development for Viking Therapeutics, Inc. (NASDAQ:VKTX) because it is developing its assets in the same category of compounds, especially focused on thyroid hormone receptor-beta agonists. This has partially lowered the risk of endpoint results for Viking Therapeutics, Inc.’s (NASDAQ:VKTX) offering.
8. Haleon plc (NYSE:HLN)
Number of Hedge Fund Holders: 21
Haleon plc (NYSE:HLN) is a Surrey, UK-based consumer healthcare company with a presence in over 170 countries and a headcount of over 22,000 employees.
The company behind Sensodyne and Parodontax was upgraded from an Equal Weight to an Overweight rating by Iain Simpson at Barclays on December 7. The analyst increased the price target on Haleon plc (NYSE:HLN) from 298 GBP per share to 360 GBP. The value is equivalent to $8.69 per American Depository Share (ADS), as one share of Haleon listed on the New York Stock Exchange (NYSE) is equivalent to two ordinary shares listed on the London Stock Exchange (LSE).
In Q3 2022, Haleon plc (NYSE:HLN) observed its revenue increase by 16%. Furthermore, the management also raised the operating and top-line margin guidance for FY22. The company is expected to announce a dividend in 2023 with a payout of around 2.5%.
Here’s what Ariel Investments said about Haleon plc (NYSE:HLN) in its Q3 2022 investor letter:
“We initiated two new positions in the quarter. We added British multinational consumer healthcare company Haleon plc (NYSE:HLN) following its spin-off from longtime holding, GSK plc. The company’s world-class portfolio of health brands is delivering double-digit organic revenue growth and margin expansion across channels and geographies. We continue to see potential for significant incremental value creation from a more focused and independent consumer health franchise in the years ahead.”
7. Amicus Therapeutics, Inc. (NASDAQ:FOLD)
Number of Hedge Fund Holders: 28
Amicus Therapeutics, Inc. (NASDAQ:FOLD) is a Philadelphia, Pennsylvania-based biotech company focused on developing medicines targeting rare diseases.
Amicus Therapeutics, Inc. (NASDAQ:FOLD) is in the limelight due to its two significant offerings. The company has filed a Biologics License Application (BLA) for cipaglucosidase alfa and a New Drug Application (NDA) for migalastat. Migalastat is already approved by the US Food and Drug Administration (FDA) for the treatment of Fabry Disease, which is a source of stable revenue for the company. Amicus Therapeutics, Inc. (NASDAQ:FOLD) is now trying to have the therapeutic approved for the treatment of Pompe Disease. The NDA is facing a delay as the US authorities are unable to visit the manufacturing facility located in WuXi, China. Experts anticipate the approval to go through, which would double the market size for Amicus Therapeutics, Inc.’s (NASDAQ:FOLD) offering.
6. ICICI Bank Limited (NYSE:IBN)
Number of Hedge Fund Holders: 29
ICICI Bank Limited (NYSE:IBN) is a Mumbai-based provider of banking services across the world.
ICICI Bank Limited (NYSE:IBN) is experiencing stellar growth in loans as the Indian economy is expanding. The loan portfolio of ICICI Bank Limited (NYSE:IBN) rose by 23% YoY as it received a boost from its retail banking division. Overall, 96% of the loans are given out in India, and the international loan portfolio only makes up 4% of the company’s total portfolio. This is a positive for ICICI Bank Limited (NYSE:IBN), considering the high level of global uncertainty. ICICI Bank Limited (NYSE:IBN) also experienced a YoY growth of 27% in net interest margin (NIM) during the quarter ending on September 30. The bank can be expected to perform positively as the Indian economy is expected to grow by 6.9% in FY23.
ICICI Bank Limited (NYSE:IBN) was held by 29 hedge funds as of Q3 2022.
Besides ICICI Bank Limited (NYSE:IBN), T-Mobile US, Inc. (NASDAQ:TMUS), Energy Transfer LP (NYSE:ET), and Graphic Packaging Holding Company (NYSE:GPK) are also on our list of the best 52-week high stocks to buy now.
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Disclosure: None. 12 Best 52-Week High Stocks To Buy Now is originally published on Insider Monkey.
