Bullish Outlook: 10 Stocks Near Highs, Boosted by Insider Buying

Bullish Outlook: 10 Stocks Near Highs, Boosted by Insider Buying

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Last Wednesday's euro zone discussion was hailed by the world as an agreement among EU leaders to contain the region's debt crisis. Naturally, this bit of good news countered the market's oversold pessimism and left the global markets to experience a long-awaited rally.

 

Dark Days

European governments agreed to leverage 440 billion euros in a rescue plan, but the details remain unclear. In fact the details are so unclear that many skeptics suggest the funds may not be sufficient, and the hope of a swift resolution that led world markets to rally may be based on false assumptions. They suggest the rally will fade away as quickly as they have in the past.

But there are a number of analysts in the bullish camp who say investors have been overly negative and it is very possible the rally could correct the markets to a more reasonable level of pessimism.

 

Sunny Skies Ahead?

Greg Budy of Sydney based financial advisory firm AIMS Finance is one such optimist. In a conversation with CNBC on Monday he says, "what we see now is a manageable restructure of Greek finances, the U.S. although not racing ahead, growing about two and a half percent and… China [is] by no means [facing] a hard landing… Overall, I think we've passed the darkest part of the storm, there's a light at the end of the proverbial tunnel, and I'm actually quite optimistic about 2012."

Furthermore, bullish analysts like Sailesh Jha, Head of Asia Market Strategy at SEB Bank Singapore believe "markets have underestimated growth in the U.S. economy." She tells CNBC "the data is panning out to the idea that the fourth quarter in terms of GDP in the United States should probably be stronger than what we saw in the third quarter, pretty much led by consumer and investment spending, which was evident in the third quarter data release."

 

Investing Ideas

So, if the dark days are indeed over, where should you start looking for your next investing idea?

One place to start is by looking at the companies that have already proven to be winners during the recent downturn.

To create this list, we started with a universe of about 200 stocks that are close to their highest point over the last 52 weeks.

From this list, we collected data on insider buying, and identified the names that have seen significant buying from company insiders during the current quarter.

Insiders think there's more upside to these rallying stocks. If the dark days are indeed over, should any of these names be on your watch list?

List sorted by distance to the 52-week high.

 

 

1. PharMerica Corporation (PMC, Earnings, Analysts, Financials): Operates as an institutional pharmacy services company in the United States. The stock is 0.06% away from the 52-week high. Over the last six months, insiders were net buyers of 17,318 shares, which represents about 0.06% of the company's 27.16M share float.

 

2. Black Hills Corporation (BKH, Earnings, Analysts, Financials): Operates as a diversified energy company primarily in the United States. The stock is 0.58% away from the 52-week high. Over the last six months, insiders were net buyers of 14,727 shares, which represents about 0.04% of the company's 38.98M share float.

 

3. Generac Holdings Inc. (GNRC, Earnings, Analysts, Financials): The stock is 0.58% away from the 52-week high. Over the last six months, insiders were net buyers of 15,000 shares, which represents about 0.06% of the company's 25.38M share float.

 

4. Seattle Genetics Inc. (SGEN, Earnings, Analysts, Financials): Focuses on the development and commercialization of monoclonal antibody-based therapies for the treatment of cancer and autoimmune diseases in the United States. The stock is 0.67% away from the 52-week high. Over the last six months, insiders were net buyers of 1,475,000 shares, which represents about 1.3% of the company's 113.13M share float.

 

5. Motorola Solutions, Inc. (MSI, Earnings, Analysts, Financials): Provides business and mission critical communication products and services for enterprise and government customers worldwide. The stock is 0.83% away from the 52-week high. Over the last six months, insiders were net buyers of 17,600,969 shares, which represents about 6.52% of the company's 269.80M share float.

 

6. RLI Corp. (RLI, Earnings, Analysts, Financials): RLI Corp., through its subsidiaries, underwrites property and casualty insurance primarily in the United States. The stock is 1.18% away from the 52-week high. Over the last six months, insiders were net buyers of 96,751 shares, which represents about 0.56% of the company's 17.21M share float.

 

7. Cadence Design Systems Inc. (CDNS, Earnings, Analysts, Financials): Develops electronic design automation software and hardware for customers worldwide. The stock is 2.02% away from the 52-week high. Over the last six months, insiders were net buyers of 55,000 shares, which represents about 0.02% of the company's 262.44M share float.

 

8. HEICO Corp. (HEI, Earnings, Analysts, Financials): Engages in the design, manufacture, and sale of aerospace, defense, and electronic related products and services in the United States and internationally. The stock is 2.24% away from the 52-week high. Over the last six months, insiders were net buyers of 20,000 shares, which represents about 0.06% of the company's 33.52M share float.

 

9. Everest Re Group Ltd. (RE, Earnings, Analysts, Financials): Underwrites reinsurance and insurance in the United States, Bermuda, and international markets. The stock is 2.31% away from the 52-week high. Over the last six months, insiders were net buyers of 1,250,180 shares, which represents about 2.92% of the company's 42.86M share float.

 

10. Roadrunner Transportation Systems, Inc. (RRTS, Earnings, Analysts, Financials): Operates as a non-asset based transportation and logistics service company. The stock is 2.36% away from the 52-week high. Over the last six months, insiders were net buyers of 44,500 shares, which represents about 0.19% of the company's 23.85M share float.

 

 

(Written by Rebecca Lipman. List compiled by Eben Esterhuizen, CFA)

 

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One Response to “Bullish Outlook: 10 Stocks Near Highs, Boosted by Insider Buying”

  1. Adam Okhai says:

    (1)By the time the general public sees data on insider trading, the large market movers have already taken action. I presume that insider activity is therefore already reflected in current price. Am I wrong?

    (2) I am not sure I would focus on stocks that are at their 52 week high . Seems counter intuitive. Yes VALUE with strong GROWTH would be exceptions — but value & growth are not criteria necessarily reflected in 52 week highs.

    I hope others will comment and clear up some or all of my confusion. THANKS!

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