These 3 Stocks Hit Higher Highs As The Market Tanked

Typically, it’s a good sign when a stock continues upward to new highs while most other stocks are selling off like mad.

Looking at the list of new highs this week, you could find at least 3 New York Stock Exchange-traded equities that couldn’t stop going up. Here’s what the price charts look like in each case and an examination of the underlying fundamentals to help to understand (maybe) the reasons.

Archer-Daniels Midland.

The farm products business that began in 1905 as simply a linseed oil company now plays an important role in almost all global agricultural origination and processing. Corn, soybean, peanuts, you name it — ADM has a hand in practically all food production on the planet.

The Chicago-based company trades with a price-earnings ratio of 16 and at a price to book ratio of 1.97. Price to sales is just .53. Earnings this year are up by 24.80%. The past 5-year EPS growth rate is only 1.00%.

Shareholder equity is greater than any long-term debt. ADM pays a $1.94/share dividend for an annualized yield of 1.95%. There is plenty of liquidity as average daily volume comes to about 2.67 million.

You can see on the price chart above how heavy buying volume came in on Friday as the stock hit the new high.

CVS Health.

From headquarters in Woonsocket, Rhode Island, CVS Health operates pharmacies, health plans and health and wellness services nationwide. The stock has a price earnings ratio of 19 and trades at 1.94 times its book value. The price to sales metric is just .51.

The company’s earnings per share increased this year at a 7.60% pace and the past 5-year rate of EPS growth is 3.30%. CVS holds more long-term debt than its shareholder equity. Investors receive a 2.01% dividend yield.

Average daily volume for the stock is a massive 6.44 million shares. Goldman Sachs analysts gave CVS a “buy” rating in mid-December, 2021.

Note that on the price chart, the stock is hitting a new high and that it’s trading above both its 50-day moving average (the blue line) and its 200-day moving average (the red line).

Danaos Corporation.

The marine shipping company based in Greece describes itself as “one of the largest independent owners of large-sized containerships.”

Danaos is trading at a 3% discount to its book value and with the low price-earnings ratio of just 2. Price to sales is 3.32. The company has more long-term debt than it does shareholder equity.

Earnings per share this year are a negative 20.30% and the past 5-year EPS record is a negative 15.40%.

Meantime, Danaos continues to pay investors a $2.00/share dividend for a 2.19% yield.

These 3 stocks stood out by week’s end because of their unusually bullish price action. As most others struggled during a monumental sell-off, Archer-Daniels Midland, CVS Health and Danaos showed remarkable strength as buyers swooped in.

Not investment advice. For educational purposes only. Always consult with a registered investment advisor before making any decisions.