The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) may only have been able to carve out a 2% gain this year, but that hasn't stopped a number of shares on the index from racing higher.
Three shares which just reached 52-week highs are listed below. Is it too late to invest?
The a2 Milk Company Ltd (Australia) (ASX: A2M) share price continued its strong run and reached a new all-time high of $4.50 yesterday. Investors have been fighting to get hold of its shares due to rising demand for its infant formula products in the China market. As well as this, leading broker Credit Suisse recently increased the price target on its shares to NZ$4.88 ($4.57). Whilst I am a big fan of the company, I'd suggest investors wait for a pull-back before making an investment.
The Bank of Queensland Limited (ASX: BOQ) share price climbed to a 52-week high of $12.52 on Monday. The regional bank's shares have rallied strongly since APRA announced its new capital requirements which revealed a 50 basis point rise for regional banks by 2020. Judging by the reaction it seems as though the market expects Bank of Queensland to have no troubles reaching the new requirement. Whilst it isn't my first choice in the industry, I still think the regional bank could be a good option for investors at the current share price.
The Cimic Group Ltd (ASX: CIM) share price hit a new 52-week high of $43.08 yesterday. Investors appear to have been impressed by the number of contracts the leading construction company has won in the last few months. Whilst this is likely to result in a significant boost to its earnings, I'm not yet convinced that it will be enough to justify its shares changing hands at 24x trailing earnings. I'd suggest investors hold off an investment and wait for a better entry point.
