New Highs: Two Stocks Make New Highs; Enter Buy Zones Even As S&P 500 Hits Resistance

Haemonetics (HAE) broke out of a buy point of 86.68 Tuesday amid a seven-day win streak to hit a new high, and the stock remains in a buy zone.


The buy zone goes as high as 91.01. The stock’s relative strength line, which is also at a 52-week high, shows its superior performance compared with the S&P 500. The index is hitting resistance near its 200-day moving average.
Haemonetics ranks first in the medical systems and equipment group. Mutual funds have considerable interest in the stock, going by an Accumulation/Distribution Rating of A-. In fact fund managers hold 70% of shares outstanding, according to MarketSmith.

For its September-ended quarter, sales grew 24% to $297.5 million while earnings of 83 cents rose 38%. According to FactSet, December-quarter sales are expected to grow slightly to $299.1 million with earnings largely flat at 82 cents per share. Earnings are due Feb. 7.

The Boston, Mass.-based company runs blood and plasma collection centers and offers diagnostic services to hospitals.

LECO At New Highs

Lincoln Electric (LECO) also climbed to 52-week high Friday and also is in a buy zone after breaking out of a flat base. The buy point is 150.78, and the buy range goes to 158.32.

Volume surged on the breakout Jan. 6, a bullish sign.

The maker of welding, cutting, safety and other equipment and tools ranks first in the Machinery-Tools group. Sales of $935.2 million were up 16% while earnings of $2.04 per share rose 31% from the previous year. Earnings are due Feb. 21.