Although the market has been pulling back over the past few weeks, the good news is that there are still pockets of strength that stand out as potential buying opportunities. In fact, some stocks are trading close to their all-time highs and have barely budged during the recent market weakness, which tells us that there is heavy demand for their shares. These stocks could be on their way towards big breakouts if the market can turn the corner in the coming weeks, which means that adding shares now could pay off in a big way.
Keep in mind that September is one of the most seasonally weak periods of the year for financial markets, which means that an end-of-year rally might be on the cards if investors can successfully navigate their way through this difficult environment. Adding positions in stocks that are trading close to record highs with the indices red might seem intimidating, but it’s important to understand that there is no overhead resistance to contend with if buyers continue to scoop up shares.
We’ve put together a shortlist of 3 stocks close to record highs to buy now to help you capitalize on relative strength and breakout potential. Let’s take a further look below.
Thermo Fisher Scientific (NYSE: TMO)
This innovative life sciences company is exhibiting serious strength and has one of the strongest product portfolios in the industry, which makes it the type of stock to consider adding as a core holding for your account. Thermo Fisher Scientific is a leading provider of life science tools and services to end markets including pharma and biotech companies, academic and government institutions, diagnostic and health care companies, and industrial and applied science companies. The company’s products have played a big role in developing COVID-19 testing and vaccines, which has resulted in meaningful top-line growth over the past few quarters, including Q2 revenue of $9.27 billion, up 34% year-over-year.
There’s a lot for investors to like about the market reaction to Thermo Fisher’s updated guidance issued on Friday as shares hit new record highs in a very weak tape. The company provided earnings per share guidance of $21.16 next year versus the Thomson Reuters consensus earnings per share estimate of $19.5 and clearly has some attractive growth prospects for investors to consider going forward. The bottom line here is that Thermo Fisher Scientific is a market-leading company that is using its incredibly strong cash flows to continue innovating and developing products that can improve healthcare for people around the world, which makes it a great buy as it trades near record highs.