Here Are 2 Companies With Stock Prices Near A 52-Week High

I like to run a screen regularly to find companies with share prices that are near their respective 52-week lows.

Some great investors – such as John Neff and John Templeton – scour lists of beaten down stocks for potential investing opportunities. That’s because they believe that stocks that have fallen hard may be priced at lower than their real values.

But sometimes, I like to screen for companies that are near a 52-week high as well. This may seem counterintuitive at first.

Why am I looking for companies with climbing share prices? Thing is, over the long-term, a stock’s price tends to be heavily influenced by the performance of its business. So, companies with a rising stock price could be enjoying growth in their businesses.

With this in mind, let’s take a look at two companies I chose at random from a list of companies that are currently near a 52-week high. They are: Dairy Farm International Holdings Ltd (SGX: D01) and Keppel Telecommunications & Transportation Ltd (SGX: K11).

Source: S&P Global Market Intelligence

Dairy Farm is a pan-Asian bricks-and-mortar retailer. It runs many different types of retail stores, such as hypermarkets, supermarkets, pharmacies, convenience stores, restaurants, and furnishing stores.

In Singapore, Dairy Farm is the owner of retail store brands such as GuardianCold StorageGiant, and 7-Eleven.

Over the last 12 months, the company’s share price has climbed by an impressive 25%. One possible reason that may have contributed to the higher share price is Dairy Farm’s 4% growth in net profit and earnings per share in the first-half of 2016.

The next in line is Keppel Telecommunications & Transportation (Keppel T&T), a subsidiary of Keppel Corporation Limited (SGX: BN4). Keppel T&T has both logistics and data centre businesses.

Under the logistics business, Keppel T&T offers “one-stop, integrated logistics solutions” to help its clients manage their entire supply-chain. As for the data centre business, part of it is housed under Keppel DC REIT (SGX: AJBU), which was spun off by Keppel T&T in December 2014. Keppel DC REIT currently has 10 data centres in its portfolio.

Keppel T&T also owns investments in other companies. One particularly important investment is a 19% stake in Singapore’s smallest telco, M1 Ltd (SGX: B2F). Unfortunately, M1 is currently facing challenges in its business due to price wars with existing competitors and the entrance of a fourth player in the near future.

In the first nine months of 2016, Keppel T&T reported a 2% decline in revenue but a sharp 117% jump in net profit. The company had benefited from the sale of a subsidiary.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.The Motley Fool Singapore has recommended shares of Dairy Farm International. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.