Hey there, Fools. I’m back again to highlight a few stocks that have recently touched 52-week highs. As a quick reminder, I do this because stocks with price strength tend to be driven by improving fundamentals and a boost in investor sentiment, which could lead to further gains over the short-term.
While you should never make investments based on price performance alone, the 52-week highs list can be a smart jumping-off point for further research.
Without further ado, let’s get to the stocks.
Leading off our list of high-flyers is Cameco Corporation (TSX:CCO)(NYSE:CCJ), whose shares hit a 52-week high of $16 late last week. Year-to-date, the uranium producer is up a solid 35% versus a loss of 2% for the S&P/TSX Composite Index.
Cameco’s big move came two weeks ago after receiving a favorable ruling from the Tax Court over its long-standing dispute with the Canada Revenue Agency (CRA). The stock initially jumped 20% on the news and hasn’t looked back.
Fellow Fool Brian Parazda noted that the ruling significantly reduces the risk related to the case, while Bay Street analysts estimate that it could be worth as much as $5 per share. So, as long as uranium prices cooperate, Cameco shares could fly for quite a while.
The next stock on our list is Labrador Iron Ore Royalty (TSX:LIF), which hit a new 52-week high of $28.98 last week. Over the past six months, shares of the mining royalty company have gained 36% versus a loss of 6% for the S&P/TSX Capped Materials Index.
The first half of 2018 wasn’t kind to Labrador, as a work stoppage and trade concerns weighed heavily on sentiment. But as Foolish mining expert Matt Smith pointed out last month, a brand new workforce agreement, a boost in second-half production, and a positive outlook for iron ore should all help boost earnings for the rest of the year.
Bay Street is already starting to catch on. But with a healthy dividend of 3.6%, Labrador might have plenty of room left to run.
Our last stock this week is Canadian National Railway (TSX:CNR)(NYSE:CNI), whose shares hit a 52-week high of $118.58 on Friday. Over the past six months, the railroad giant is up 23% versus 15% for the S&P/TSX Capped Industrials Index.
CN Rail, along with its counterpart CP Rail, continues to benefit massively from the ongoing issues surrounding the Trans Mountain pipeline. Thus far in Q3, CN reports that it has already moved 50% more crude by rail compared to last year, and expects more growth to come. CFO Ghislain Houle says that the company is locking in customers with multiyear contracts “at very favourable” rates.
When you add the recent trade deal resolution with those very positive trends, CN’s momentum looks sustainable. Moreover, with a P/E in the mid-teens and a decent dividend yield of 1.6%, the stock’s floor seems solid as well.
Iain Butler has stumbled upon a little-owned stock he believes could be one of the greatest discoveries of his almost 20 years as a professional investor.
This is your chance to get in early on of what could prove to be a very special investment recommendation. Think about how many investing trends you've missed out on, even though you knew they were going to be big. Don't let that happen again.
Brian Pacampara owns no position in any of the companies mentioned. David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of Canadian National Railway. CN is a recommendation of Stock Advisor Canada.