Breakout stocks are popping up with greater frequency as the summer rally gains steam. This elite list grew on Friday, with Materion (MTRN) and Belden (BDC) hitting 52-week highs.
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Belden scored a major breakout, rising more than 2% and moving past a 68.97 cup-base entry.
The firm is a global supplier of network infrastructure solutions. It recovered in 2021 after three year-over-year earnings declines, reporting annual EPS of $4.75, up from $2.75 in 2020. Earnings accelerated in the second quarter after three flat quarters, posting 31% year-over-year EPS growth on a 16% sales increase.
Belden is expected to book an annual profit of $6.01 per share this year, which would mark a 27% increase.
This breakout stock has closed higher for eight straight weeks while shares have lifted 18% above the 50-day moving average, suggesting it needs to pause and digest the recent run. One positive aspect: The relative strength line is hitting a new high alongside the breakout, which is ideal.
Breakout Stocks To Watch: Materion
Materion is another breakout stock that’s been surging higher in recent weeks. The company makes and sells high-performance parts, electronic materials and precision optics to a variety of industries that include aerospace and defense, medical, consumer electronics, automotive and semiconductors.
MTRN stock moved above a 96.10 buy point on strong volume Friday, rising roughly 4%. Shares have closed higher for five-straight weeks, lifting 18% so far in the month of August.
The relative strength line has notched a new high alongside the breakout but the stock has rallied more than 20% above its 50-day moving average, raising odds for a pullback. Highly-extended stocks have become common in this hot summer market, presenting a challenge to bullish investors.
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Source: https://www.investors.com/stock-lists/new-highs/breakout-stocks-to-buy-and-watch-these-midcaps-are-hitting-new-highs/?src=A00220&yptr=yahoo