The 52-week highs list is a good place to center one’s analysis when researching new portfolio opportunities. As famed investing guru, William O’Neil, has long advocated, historical data shows that portfolio returns benefit from adding stocks making new 52-week highs rather than new 52-week lows.
This is sometimes difficult because one’s instinct is to associate new highs with the concept of an “expensive stock” and new lows with the concept of a “cheap stock”. However, in reality, valuation and long-term growth potential have nothing to do with new highs or new lows. And stocks making new highs are directly evidencing demand for shares, rather than excessive supply.
With that in mind, let’s take a look at a handful of interesting additions to the New 52-Week Highs list this week across the market: Tesla Inc. (Nasdaq:TSLA), NVIDIA Corp. (Nasdaq:NVDA), Advanced Micro Devices Inc. (Nasdaq:AMD), Microsoft Corp. (Nasdaq:MSFT), Netflix Inc (NASDAQ:NFLX), and KULR Technology Group Inc. (NYSEAmerican:KULR).
First off, it should come as no surprise that all of these stocks are growing technology players. Also of interest: only MSFT and NFLX have no ties to the auto industry. Both NVDA and AMD design technology used in some vehicles. TSLA, of course, is the most valuable auto maker in the world. And closely linked, KULR makes, among other things, the world’s most advanced systems – developed in partnership with NASA – for preventing serious negative events in lithium-ion battery systems, which power most electric vehicles, including Tesla’s.
However, what may be of most interest here is that KULR is also the only small cap on our list.
For investors hunting for opportunities with the potential to deliver 50-100% returns over the next year, that should be an important consideration. While MSFT, TSLA, NVDA, NFLX, and AMD are amazing and successful companies, they are also all carrying around monster market caps that likely have their big breakouts behind them.
So, let’s take a closer look at KULR.
KULR Technology Group Inc. (NYSEAmerican:KULR) develops, manufactures and licenses next-generation carbon fiber thermal management technologies for batteries and electronic systems. The company offers lithium-ion battery thermal runaway shields; fiber thermal interface materials; phase change material heatsinks; HYDRA TRS battery storage bags; internal short circuit device; and CRUX cathodes.
KULR’s technologies are used in electric vehicles and autonomous driving systems, artificial intelligence and cloud computing, and energy storage and 5G communication technologies.
To add further strong legitimacy, the co-founder of a Warren Buffet backed company in the EV space, BYD Company ADR (OTCMKTS:BYDDY), currently serves on KULR’s official Board of Advisors.
The company is rooted in a 30-year history tied to carbon fiber thermal energy management technology for aerospace and defense applications. Its technology is trusted by NASA, with KULR parts on the Mars Rover 2020 Perseverance and the International Space Station.
KULR Technical Analysis
The KULR chart over the past year shows a steady unbroken upward trend that has consolidated in a lateral range over the past seven months, coiling up under the $2.90/share level. This week shares of the stock are breaking out above that level on surging volume.
Given the existing growth trend, the fact that the stock is trading above all major moving averages, and the duration of the consolidation range, a breakout now could be significant. Technical analysts often gauge the initial target of a range breakout as a function of the range width, suggesting that KULR, from a strict technical perspective, may be headed to $4/share in short order.
However, this stock comes off the new 52-week highs list and is one of the few technology sector small-caps currently on that list, suggesting it has become a sector outperformer with the potential to be an outlier on the growth side over the coming year, suggesting the potential for a double on this setup under the right conditions.
We would also point out that BYDDY, whose founder serves on KULR’s advisory board, is making consistent all-time highs amid speculation that it may supply Tesla with its new lithium-iron-phosphate (LFP) batteries.
Thematic Growth
We would also point out that KULR lines up as an interesting stock on a thematic basis. This has become a retail-investor-driven bull market. Such periods are often driven by themes. KULR has strong ties to several dominant growth themes, including Electric Vehicles, Energy Storage, Cryptocurrency Mining, Space Exploration, and 5G Network Infrastructure.
One of the advantages of hitting the 52-week Highs list is the sheer power of eyeballs – market participants take note of stocks breaking out to new highs. Stocks involved in hot thematic growth stories breaking out to new highs tend to draw the most attention.
KULR fits this description right now, which could help to drive follow-through demand for the stock ahead.
