My 5 Favorite New 52-Week Highs

With the market flat at midday there are a handful of stocks breaking out to new highs and there are five that are grabbing my attention. They are either already on my WatchList or have been added today on the breakout.

Cerner ($CERN) - Healthcare IT company that is breaking out again. I love the business model.

Ebay ($EBAY) - This stock has been on my radar due to its PayPal unit and I am looking to enter in the near future.

Ross Store ($ROST) - The discount retailer has one of the best charts in the market and based on the current and future of the consumer it should continue to be a winner.

Equinix ($EQIX) - A play on the cloud computing craze, the stock has been a huge winner. That being said, with my view that money will start to move into technology the remainder of the year, EQIX looks good on a pullback.

iShares High Dividend Equity ETF ($HDV) - Had to add an ETF on here and one that we own for some clients. The large-cap dividend stocks continue to outperform and what better way to capture it than with a low-cost ETF.

My Fav 52-Week Highs

Today the New High list is growing as stocks tack on a 1% gain. Below is a list of some of my favorite stocks hitting highs that are either positions for PFG clients (will disclose) or stocks that are on the PFG WishList.

• Tennant Company ($TNC) - Manufactures cleaning solutions worldwide. PEG ratio of 0.99 and seeing an increase in volume on the breakout.
• Grupo Aeroportuario del Surest ($ASR) - Operates 9 airports in Southern Mexico, including Cancun. Stock breaking out of consolidation and volume has been extremely bullish. A little expensive at 2.2 PEG ratio. Pays 3.6% dividend.
• Alamo Group ($ALG) - Makes agriculture and industrial maintenance equipment. Hot sector, great chart, and a PEG ratio of 1.0 and 0.8% dividend.

Interesting New 52-Week Highs

Scanning the 52-week high list today has peaked my interest for the first time in a few days. There are a number of stocks I felt are worth mentioning.

Titan Machinery ($TITN) - Sells agriculture and construction equipment and reported blockbuster earnings. The company guided next fiscal year earnings between $2.55 and $2.75. Based on the median estimate the stock is trading with a forward P/E ratio of 12.1 even after the 15% rally today.

EPAM Systems ($EPAM) - An IT services outsourcing company that went public in early February continues to surge to new highs. The company trades with a PEG ratio of 0.67 - very attractive fundamentally and technically.

Companhia Energetica de Minas Gerais ($CIG) - The Brazilian electric utility company has one of the best charts in the country and is now reaching new highs. The 4.3% dividend is a major bonus.

Mattress Firm Holdings ($MFRM) - An operator or mattress stores the went public in November of last year. Up 20% today to a new high and is up well over 100% the close on its first day of trading. I just bought a new mattress - and they are not cheap!!

Random 52-Week Highs

The list of stocks/ETFs hitting new highs is growing as the major indices break out to multi-year highs. What I find interesting is that not only are the popular names breaking out, but so are some of the lesser-known stocks and ETFs. Here are a few that may surprise investors.

• PowerShares Emerging Markets Sovereign Debt ETF ($PCY) - The basket of emerging market debt has surged straight higher after bottoming in early January. Along with the ETF breakout out to new highs, it pays a 5.2% dividend.
• Target Corp ($TGT) - The discount retailer typically does well during slow growth environments and when the risk-on trade is off. However this time around the retailer is enjoying success as it hits a new high today.
• Brookfield Infrastructure Partners ($BIP) - The company owns and operates various infrastructure properties around the globe. They include shipping terminals, LNG production facilities, etc. With the global economy still not at high growth levels it may be surprising this company is doing so well. It also pays a 4.8% dividend.

** My firm owns shares for all three mentioned for some of our clients.

Market Recap - Oil Falls, Apple New High, 2 Fav Tech Stocks

The major indices closed near the flat line today with the Dow down 1 point and the NASDAQ and S&P 500 both gaining 2 points. This is after 1% sell-off to begin the session, followed by a rally after better than expected housing numbers were released. The bulls could not hold onto the gains, but overall the rebound off the lows keeps the strong bull trend intact.

Oil Falls - The price of oil fell by $1.21 or 1.1% to $108.56 barrel, breaking a 7-session winning streak for the Black Gold. The recent high was the best level in 9 months as supply concerns over Iran and the rest of the Middle East hang over the market. Then there is demand issues as Europe avoids a disaster and growth continues around the globe. A pullback for the US Oil ETF ($USO) to the $40 area will be the next buying opportunity ($41.25 last trade).

Apple New High - The largest company in the country by market cap increased its size today as it traded up to $525. The gain for 2012 now stands at 29%, easily beating the major indices. I would not be a buyer today as the stop is overextended in the short-term. On the flip side, trying to short $AAPL has not been a good idea for years and probably not the best move at this time.

2 New Favorite Tech Stocks - Today marked the first time in quite some time that I decided to buy into 2 technology-related stocks in the same day. Both stocks are leaders in their respective sector and have the charts and fundamentals to back up the case for buying today. Stock #1 is my play on social media and Stock #2 is a tech stock that pays a dividend over 3%.

*Subscribers can email info@pennfinancialgroup.com for the name of the two stocks.

New Favorite MegaCap Stock - Intel

The grand daddy of the semiconductor stocks, Intel ($INTC), is back on my radar and this time for a positive reason

The stock broke out of a month-long consolidation pattern last Friday and hit the best level in over four years. The stock, long considered a bellwether for the semiconductor and overall technology sector is up and running again.

The chart below shows the breakout of the consolidation pattern (two horizontal lines). Technically the stock looks great as long as it holds the $26.50 to $27.00 area on any pullbacks in the coming days. If INTC can test the level and hold it will trigger a buy signal.

Fundamentally my attractive to the stock increases. A PEG ratio of 0.97 is great considering it is a megacap tech stock that is not growing nearly as quickly as it was in the past. And add in the 3.1% dividend yield and INTC looks like a great catch at current levels.

** My firm and myself do not currently own any shares of INTC.

Five 52-Week Highs I Like

A growing number of stocks are hitting new 52-week highs today and five that are catching my eye and are on my WatchList are:

• SPDR S&P Biotech ETF ($XBI) - For the last few years the biotech stocks have looked good heading into January. This year the sector broke out and it appears it is ripe for a strong 2012. Wait to buy on a pullback.

• Healthcare Services Group ($HCSG) - Provides housekeeping, laundry, maintenance, and dietary services to hospitals and managed care facilities - pays a 3.5% dividend.

• Viasat ($VSAT) - Maker of wireless communications, networks, and satellites for the government and private customers.
  

• Realty Income Corp ($O) - A REIT that owns commercial real estate in the US - pays a 4.8% dividend.

• Wal-Mart ($WMT) - Unless you live under a rock you know $WMT. The largest retailer in the US is breaking out today - pays a 2.4% dividend.