3 Red-Hot Stocks Hitting New 52-Week Highs

Tired of declines? This trio of momentum stocks, including Air Canada (TSX:AC), might have the rocket fuel you need.

| More on:

Image source: Getty Images.

Hello, Fools. I’m back to quickly highlight three stocks trading at new 52-week highs. Why? Because after a given stock rallies over a short period of time, one of two things usually happens:

While momentum stocks are on the fickle side, they can often rally higher (and for longer) than you might expect. So, if you’re looking to get your 2020 returns off to a hot start, this list might be a good place to begin.

Let’s get to it.

Living the life

Leading off our list is life insurance giant Manulife Financial (TSX:MFC)(NYSE:MFC), whose shares are up 33% in 2019 and are trading near 52-week highs of $26.44 per share.

The stock’s outperformance continues to be fueled by strong operating momentum. In the most recent quarter, for instance, EPS of $0.76 topped estimates by $0.03 as total new business value jumped 16% to $526 million.

Management even initiated a bid to possibly buy back up to 3% of its shares.

“We continued to execute against our strategic priorities, with portfolio optimization initiatives announced to date resulting in a cumulative capital benefit of $3.9 billion,” said CEO Roy Gori. “We also expanded Manulife’s distribution capabilities across our global footprint, entering into long-term partnerships in mainland China and Vietnam.”

Manulife currently offers an attractive dividend yield of 4%.

Flying away

Next up, we have airline operator Air Canada (TSX:AC), which is up a massive 82% in 2019 and currently trades near 52-week highs of $49.75 per share.

It has been a year of big spikes for Air Canada shares, with the latest jump coming after strong Q3 results. During the quarter, EBITDA improved 9% on record Q3 operating revenue of $5.55 billion.

More importantly, Air Canada ended the quarter with record unrestricted liquidity of $7.36 billion and leverage ratio of 0.8.

“Impressive as such strong results are on their own, they are even more meaningful given that we achieved them despite the serious disruption to our operations and to our cost structure created by the Boeing 737 MAX grounding,” said CEO Calin Rovinescu.

Air Canada trades at a forward P/E of 9.8.

Powerful pick

Rounding out our list is renewable power producer Northland Power (TSX:NPI), whose shares are up 24% in 2019 and are trading near 52-week highs of $27 per share.

Northland’s solid gains continue to be supported by robust cash flows, a highly regulated operating environment, and strong tailwinds. In the most recent quarter, net income improved 19% as revenue improved 8% to $378 million.

More importantly, free cash flow per share grew 14%.

“Northland continued to deliver healthy, sustainable results in the quarter with a 14% increase in adjusted EBITDA and free cash flow per share over last year,” said CEO Mike Crawley. “Most significantly, we acquired EBSA, a high-quality regulated Colombian utility.”

Northland offers an attractive dividend yield of 4.6%.

The bottom line

There you have it, Fools: three red-hot momentum stocks worth checking out.

As always, they aren’t formal recommendations. Instead, look at them as a starting point for further research. Momentum stocks are especially fickle, so plenty of your own due diligence is required.

Fool on.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned.   

More on Dividend Stocks

consider the options
Dividend Stocks

Is TD Bank the Best Dividend Stock for You?

Toronto-Dominion Bank (TSX:TD) has a high dividend yield but is embroiled in a serious money-laundering scandal.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

How to Use Your TFSA to Earn $6,000 Per Year in Passive Income

Hint: You'll need this Hamilton covered call ETF, which yields over 10%.

Read more »

Growth from coins
Dividend Stocks

2 Dividend-Growth Stocks With TSX-Beating Potential That Deserve More Respect

Here are two of the best TSX dividend-growth stocks you can buy today and hold for the next decade.

Read more »

Man pointing at a recycling symbol
Dividend Stocks

GFL Stock Rose 24% Last Month: Is It Still a Buy in July?

GFL stock (TSX:GFL) exploded by 24% in June, but is the growth now over for July? Or can investors still…

Read more »

A woman shops in a grocery store while pushing a stroller with a child
Dividend Stocks

Better Buy: Loblaw Stock or Metro Stock?

Loblaw (TSX:L) and another grocer that could do well over the long haul as markets get rocky.

Read more »

concept of real estate evaluation
Dividend Stocks

BRE Stock: Should You Buy the 10.5% Yield?

BRE stock (TSX:BRE) offers investors the opportunity for a rebound in a real estate sector that should see high prices…

Read more »

dividends grow over time
Dividend Stocks

Prediction: These Could Be the Best-Performing Value Stocks Through 2030

Seeking value stocks trading at a discount? These top value stocks could outperform through 2030 through valuation expansion.

Read more »

Dividend Stocks

3 TFSA Hacks to Build a $1 Million Tax-Free Nest Egg

These TFSA investing hacks could help convert $95,000 into $1 million tax-free. Here's how to get started.

Read more »