Last Updated on Oct 19, 2022 by Anjali Chourasiya
If you are a stock market investor, you must know that the prices of securities are constantly fluctuating. The frequent shifts in prices record the highest and lowest values at different points in time. It is important to factor in the fluctuations before making an investment decision and to know the highest and lowest prices of securities at a given time in the market. A figure recorded as the highest/lowest price of a security over a period of 52 weeks is called a 52-week high/low (of the particular stock/asset).
This article will explore the 52-week high/low of stocks and explain how to discover stocks near 52-week lows on Tickertape’s online Screener.
Table of Contents
What is a 52-week high and low?
The price of securities in the stock market are recorded at their highest and lowest values. Thus, the 52-week high/low is the highest and lowest price point at which a security has traded over the past year. It is based on the daily closing price for the security.
The 52-week high/low is a technical indicator of a stock’s performance in the market. It helps in analysing the current value of a stock and its future price movement. It helps investors determine an entry or exit point for a given stock.
Significance of 52-week high/low
Traders show increased interest in a stock that nears its 52-week high or low. This is because traders use the 52-week high/low indicator to determine a stock’s entry or exit point. The 52-week high can be used as a resistance level, and the 52-week low as a support level.
However, a stock may surpass its 52-week high and continue an upward streak, representing a bullish market sentiment and trend continuation. This scenario indicates that certain factors have caused enough momentum to take the stock price above its 52-week high. As a result, traders believe that the upward momentum will continue, making it ideal for initiating a new long position.
The same logic applies to a stock that falls below its 52-week low. In this case, the trader can go short and sell the stock. However, believing that such an undervalued stock will go higher in the future may be a risky bargain.
What does a 52-week low indicate?
The 52-week low is the lowest price of security recorded over the past year. It is a vital parameter to consider before investing in a particular stock. Many traders consider the 52-week low price as support and devise a strategy accordingly. However, it is possible for a stock to go below its 52-week low. It indicates a downward trend.
Hence, the reason for a stock touching a 52-low week should be critically evaluated to understand if it makes for a sound investment. Though a stock near its 52-week low gives an opportunity for future growth, investors must not confuse the 52-low week of stock with undervalued stocks.
Consider a stock XYZ trades at Rs. 100. The result of the company is stated to be realized. Results come out tepid, and the price of the stock crashes. Now, an internal factor caused the stock to crash to its lowest. But sometimes, external factors can contribute to stocks touching their 52-week low. The Covid-19 market crash can be a prime example where major stocks touched their 52-week low.
How to find stocks near 52-week lows?
Are you considering an investment with no clue where to find stocks near 52-week lows? Well, Tickertape’s Screener has got you covered. The online Screener lets you apply various filters and customize your search for stocks quickly and conveniently.
With the Screener, you can be sure of getting accurate results. All you need is a smartphone or computer and an active internet connection.
How to use Tickertape Screener to discover stocks near 52-week lows?
Navigating your way around 52-week low stocks can be challenging. Tickertape’s Screener lets you discover fundamentally strong stocks near their 52-week low, so you can take investment decisions on the fly. Below are the steps to find stocks near 52-week lows on Tickertape:
- Browse Tickertape website.
- Click on the downward arrow next to the Tickertape logo on the top left. Choose ‘Stock Screener’ from the drop-down menu.
- On the Screener, click on ‘All Screens’. Then, under ‘Basic’, select ‘Near 52W Lows’. The Screener applies the following filters to display the top near 52W lows stocks.
- Market Cap (>5,000.00)
- 5Y Historical Revenue Growth (>15.00)
- 5Y Avg Return on Equity (>15.00)
- % Away From 52W Low (<20.00)
- You can add or remove filters to customise your search. Click on ‘Add Filters’ at the bottom of the ‘Near 52W Lows’ pre-built screen.
If you are on a computer, visit Tickertape’s near 52W lows online stock Screener from your browser. Click on ‘+Add Filter’ in the filter panel on the left-hand side of the screen. Choose the relevant filter from over 200 options and click ‘Done.’
Conclusion
Traders usually compare the current price of stocks with their 52-week high/low before finalizing an investment. Moreover, the 52-week high/low is a critical technical indicator that aids analysts predict the future price movement of stocks. The 52-week high/low value also indicates the volatility of a stock over the past year.
Use Tickertape’s Stock Screener to simplify your search for fundamentally strong stocks near 52-week lows. The process is quick and hassle-free, and it only takes a few steps to curate stock lists based on applied filters. Smooth your research, watch, and investment process with Tickertape and build a strong portfolio!
Frequently asked questions (FAQs)
1. What is 52 weeks high?
2. What does a 52-week high signify?
3. Why is the 52-week high/low important?
As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
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