Most often value investors are looking for overly beaten down companies’ hitting 52-week lows, not 52-week highs. However, just because a company’s shares are marking new highs doesn’t mean value investors can’t be interested in seeing what’s driving the stock price. We’ll look at five companies from varied industries that have reached new highs over the last week and see if any should be catching a value investor’s eye.
Exelon Corporation (EXC)
Strong third quarter earnings caused power company Exelon to recently mark a new 52-week high of $44.80 on November 3. Despite the strong movement in the stock price Exelon still looks like an attractive buy. The company’s shares currently trade at 10.6 times forward earnings and offer a 4.7% annual dividend. Exelon is the biggest in the industry and also has the largest nuclear portfolio. The company has strong positions in the Midwest and Mid-Atlantic. Comparable utility companies like Consolidated Edison (ED), CenterPoint Inc. (CNP) and Wisconsin Energy Corp (WEC) trade for 16.4, 18.0 and 15.0 times forward earnings. This makes Exelon’s valuation all the more attractive. Value investors should take a close look at this company.
Humana Inc. (HUM)
Halloween was a good day for health insurance provider Humana. The company reported strong earnings growth and shares hit $87.32, a new 52-week high. This high mark is even more impressive considering shares in Humana traded for as low as $65.20 at the beginning of October. Even with this rapid move, shares trade for only 10.3 times forward earnings. To continue reading, click here