While the rally over the past few days has helped many stocks rise, a number of blue chip shares including the major banks, the major miners, Telstra Corporation Ltd (ASX: TLS) and Woolworths Limited (ASX: WOW) all remain close to their 52-week lows.

In contrast, there are a handful of stocks which have bucked the trend to hit fresh 52-week highs this week…

  • BlueScope Steel Limited (ASX: BSL) touched $5.95
  • Fortescue Metals Group Limited (ASX: FMG) hit $3.29
  • Iress Ltd (ASX: IRE) climbed to $11.49 which is an all-time high
  • Mayne Pharma Group Ltd (ASX: MYX) rallied to $1.46 which is also an all-time high

Despite hitting new highs, arguably these four stocks could still have more upside ahead and prove to be better investment candidates than other more beaten-up stocks such as the banks.

In the case of both BlueScope and Fortescue, these two stocks are recovering after enormous multi-year declines in their share prices.

That certainly doesn’t mean shareholders will ever see those record highs again, however even after rallying to fresh 52-week highs these two stocks still remain valued by the market at a fraction of what they once were.

In fact, based on analyst consensus data, BlueScope and Fortescue are trading on forward price-to-earnings (PE) ratios of 15.6x and 17x. This could turn out to be cheap if we have now passed the bottom of the cycle for these two cyclical companies. (Source: Thomson Consensus Estimates).

In comparison, Iress and Mayne have both hit new all-time highs as investors bet that these two businesses will continue to grow their revenues and earnings at a solid rate. Given these two companies operate in appealing growth industries and sell products which are growing in demand, the market’s view could definitely be well founded.

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Motley Fool contributor Tim McArthur has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.