Even after the week-long rally the S&P 500 remains 8.5% off the 4/23 high and has a long way to go to break to new highs. With that being said, there are a number of stocks hitting 52-week highs and a select few at their best levels ever.
MedAssets (MDAS) – The stock closed Tuesday at the best price ever after a big volume surge last week helped the stock rally off important support. MDAS is in our portfolio because of its niche business model that will help healthcare providers with the reform that is taking place in the sector. The company will help facilitate better reimbursement models, improve operations and in the end boost the bottom line.
GSI Commerce (GSIC) – If you want a stock that encompasses both the internet and retail, GSIC is your play. The company provides e-commerce and online marketing services to retailers, sports leagues, manufacturers, etc. For example, the company recently extended their contract with Green Mountain Coffee Roasters (GMCR) Keurig division through 2013. The stock is currently sitting at a 10-year high.
Aruba Networks (ARUN) – Company is a leader in the global enterprise network sector. The company is taking advantage of the growth of wi-fi and is continually increasing their market share. The stock closed at the best level in two years on Tuesday. The only concern is the valuation of the stock, which is expected to make $0.27/share in 2010. But with the growth projections the price can continue to climb in the coming months.
General Mills (GIS) – The mega-cap food company is not very exciting, however the slow, steady rise of the stock is tough to argue with. There is also the 2.6% dividend on top of the 8% gain so far in 2010. The tortoise wins the race.
Las Vegas Sands (LVS) – The gaming stocks were decimated during the recession with fears of bankruptcy looming over the sector. LVS has come back strong and recently hit an 18-month high as the world economy improves and their casinos in the US and Macau are now beginning to fire on all cylinders.
These are just five stocks we own at the firm. Keep in mind that not all of our stocks are hitting highs, but the five above are the leaders and have more upside in my opinion.
Disclosure: Long GSIC, LVS, ARUN, GIS, MDAS