Stocks hitting all-time high share prices will always generate coverage in the financial press. But how can traders profit from this phenomena? For many the dilemma is how far a stock will rally past its all-time high price, or whether the price actually represents a ceiling with limited upside.
But what technical indicators or fundamental metrics are worth looking out for? Using the all-time high trading strategy, we've picked some large-cap stocks that are breaking to new highs. These have growing momentum, an average trading volume of over a million, and strong company fundamentals. All signs that there could be more price movement ahead.
Alteryx share price
Software-as-a-service stocks have been hitting all-time highs in the last year across the board. But Alteryx [AYX] could be the pick of the bunch.
The share price is up over 143% so far this year and trading just below its 52-week high of $147.19. While momentum looks to have peaked in August, an RSI of 70 could indicate there’s still some gas left in the tank.
The success of the SaaS sector means that Alteryx stock carries a high forward P/E of 182.14x. That's expensive in anyone's book and could seem overvalued. While analysts have given shares a ‘Buy’ rating, the average price target of $139.23 is below the current share price.
For traders thinking of picking up the stock, Real Money's Bruce Kamich reckons they should hold out until the Autumn. Kamich argues that the $100 area could be a potential buying point if the broader market bottoms out.
Yamana Gold share price
Economic slowdown, recession fears and politically-triggered market volatility - with macroeconomic conditions like these, it's no surprise that precious metal miners are on the up.
Yamana Gold [AUY] is up 44% this year as traders flock to the safe haven of gold. At the time of writing the stock was trading just off its 52-week high of $3.72.
And with so much uncertainty surrounding the global economy, Yamana Gold's share price could see more gains. Back in June, National Bank Financial upgraded the stock to outperform, while analysts have an average price target of 3.92 on the stock. Hitting this would represent a 10% upside on today's price.
For investors looking for ways to back the company, Nasdaq just added new options for the stock with October 11 expiries.
Shake Shack share price
Fast food stocks have been delivering some tasty gains this year. McDonalds [MCD] and Yum! Brands [YUM] are up 22% and 27% respectively. One fast-food stock seeing whopper gains is Shake Shack [SHAK]. So far this year, the stock is up 131%, while its 50-day moving average is up 94%.
Shake Shack has managed to double its share price off the back of strong financial results and expansion. Right now, the stock is trading around the $103 level, just below its 52-week high of $105.84. An RSI of 73 indicates that there could be momentum left in the stock.
Still, a price-to-earnings multiple of 199.19x against a $4.14 billion market cap, could point to an overvalued stock. Shake Shack is also trading 29.8% above its average price target, indicating that traders might want to think twice before going extra-large on SHAK shares.
|Alteryx||Yamana Gold||Shake Shack|
|Operating Margin (TTM)||6.34%||9.03%||6.23%|
|Quarterly Revenue Growth (YoY)||59.30%||6.40%||31.30%|
Alteryx, Yamana Gold & Shake Shack share price vitals, Yahoo Finance, 9 September 2019