Actions in Euromoney Institutional Investor (LON: ERM) are currently trading near a 52-week high as the share price has risen by about 8.63% To 1 108p over the past week. On a monthly basis, the Euromoney Institutional Investor the price has increased by 4.53%.
For investors owning the stock (or considering buying it), the question is: and now?
A popular market indicator is 52 week highs. But research shows investors may wonder if they should sell the stock and make a profit Where buy more and follow the uptrend. With that in mind, here’s a look at what you need to know about stocks reaching ‘new highs’ …
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What happens when a stock hits a new high?
52 week highs are always good news. But surprisingly, the prices of top performing stocks can be slow to move when they release positive earnings information.
Research shows this happens because investors are cautious about offering the best performing stocks (even if they deserve it). Psychologists call it anchoring. As humans, we tend to take our time when it comes to changing our minds in the face of new information – even when it is good news.
This emotional tug-of-war often ends with a rise in the price of “new high” stocks in the weeks and months to come. The upward trend is called “drift after earnings announcement”. As the news comes in the momentum takes over and the price goes up.
A look at Euromoney Institutional Investor’s StockReport could offer more information on what is driving its stock price momentum – and if it could continue.
What does this mean for potential investors?
With Euromoney Institutional Investor trade near a 52 weeks high, investors in the market may not know where the price will move next. It is important to remember that momentum in itself is not a guarantee of future returns.
To get a better idea of how this trend continues, it’s worth investigating yourself. Indeed, we have identified some areas of concern with Euromoney Institutional Investor which you can find out here.
Alternatively, if you want to find more stocks that are trading near new highs, you can find them on this 52 week highs screen.