4 large-cap stocks at new all-time highs (NYSEARCA:SPY)

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Below are the results of our analysis of the S&P 500 (SPX) for stocks with strong momentum at new all-time highs.

We use four indicators to measure momentum:

  • The rate of change over 21 days.
  • The price distance from the 200-day moving average.
  • Prices at new all-time highs.

Below are the results:

S&P 500 stocks with strong momentum

S&P 500 stocks with strong momentum (Price Action Lab Blog – Norgate Data)

Church & Dwight Co., Inc. (CHD)

CHD daily chart

CHD Daily Chart (Price Action Lab Blog – Norgate Data)

“Church & Dwight Co., Inc. develops, manufactures and markets a line of consumer household and personal care products and specialty products focused on animal and food production, chemicals and cleaners.” (Source: TD Ameritrade.)

This stock belongs to the consumer staples sector, which typically outperforms in slow growth and recessionary environments. Below is a graph of the relative performance of SPY ETF (SPY) and Consumer Staples ETF (XLP) year-to-date.

Year-to-date relative performance chart of SPY and XLP ETFs

Year-to-date relative performance chart of SPY and XLP ETFs (Price Action Lab Blog – Norgate Data)

ETF SPY is down 9.5% year-to-date, but ETF XLP is up 3.7%

Year-to-date, the stock is up 1.8%, the 21-day rate of change is 7%, and the price is 12.7% above the 200-day moving average. The TTM P/E ratio is 31.01 and the beta (the measure of the stock’s volatility relative to the S&P 500) is 0.4.

The Q1 2022 earnings release date is April 28, 2022. The EPS consensus estimate is $0.768 versus $0.83 for the prior year’s actual Q1.

Host Hotels & Resorts, Inc. (HST)

Daily HST Table

Daily HST Chart (Price Action Lab Blog – Norgate Data)

“Host Hotels & Resorts, Inc. (Host Inc.) operates as a self-managed, self-administered real estate investment trust (REIT). The company operates through the hotel ownership segment. It operates a real estate investment trust of accommodation.” (Source: TD Ameritrade.)

Year-to-date, the stock is up 20.5%, the 21-day rate of change is 12.1%, and the price is 21.7% above the 200-day moving average. The beta (the measure of stock volatility relative to the S&P 500) is 1.2.

The first quarter 2022 earnings release date is May 4, 2022. The consensus EPS estimate is $0.021 versus -$0.22 for the prior year’s actual Q1.

Johnson & Johnson (JNJ)

JNJ Daily Chart

JNJ Daily Chart (Price Action Lab Blog – Norgate Data)

“Johnson & Johnson is a holding company engaged in the research and development, manufacture and sale of a range of healthcare products. The Company operates through three segments: consumer healthcare , pharmaceuticals and medical devices. (Source: TD Ameritrade.)

This Dow stock belongs to the healthcare sector, which also outperforms in slow growth and recessionary environments. Below is a graph of the relative performance of the SPY ETF (SPY) and the Health Care ETF (XLV) year-to-date.

Relative year-to-date performance of SPY and XLV ETFs

Relative year-to-date performance of SPY and XLV ETFs. (Price Action Lab Blog – Norgate Data)

The SPY ETF is down 9.5% year-to-date, but the XLV ETF is down 4.2% in comparison.

Year-to-date, the stock is up 9.4%, the 21-day rate of change is 6.1%, and the price is 10.9% above the 200-day moving average. The TTM P/E ratio is 24.45 and the beta (the measure of the stock’s volatility relative to the S&P 500) is 0.7.

The Q2 2022 earnings release date is July 19, 2022. The EPS consensus estimate is $2.54 versus $2.48 for the prior year’s actual Q2.

Sysco Corp. (SYY)

SYY Daily Chart

SYY daily chart (Price Action Lab Blog – Norgate Data)

“Sysco Corporation (Sysco) is a distributor of food and related products primarily to the foodservice or out-of-home catering industry. It is engaged in the sale, marketing and distribution of food products to restaurants, health and educational establishments, accommodation establishments and other customers who prepare meals away from home.” (Source: TD Ameritrade.)

The stock belongs to the consumer staples sector, which typically outperforms in slow growth and recessionary environments.

Year-to-date, the stock is up 15.6%, the 21-day rate of change is 10.7%, and the price is 15.2% above the 200-day moving average. The TTM P/E ratio is 58.27 and the beta (the measure of the stock’s volatility relative to the S&P 500) is 1.2.

The Q3 2022 earnings release date is May 10, 2022. The consensus EPS estimate is $0.55 versus $0.22 for the prior year’s actual Q3.

Conclusion

Although the stock market is in a correction phase, in relative terms, certain stocks in the consumer staples, healthcare and other sectors that benefit from particular circumstances and conditions, may outperform or have a positive performance. Momentum, measured by price action, offers a way to identify stocks that are outperforming. Even should the correction turn into a bear market, consumer staples and healthcare have traditionally performed well on a relative basis. It is also important to note that when the market finally bottoms out, these stocks could underperform and therefore reassessing the momentum of sectors and individual stocks is always an important task in rebalancing portfolios.

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