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Why Flight Centre Travel Group Ltd (ASX:FLT) is among 3 stocks sitting pretty at 52w highs

The overall S&P/ASX 200 is down almost 50 points at the time of writing at 6,034 as most sectors report share price falls today.

But these 3 stocks are booking 52-week highs.

Here’s why.

Flight Centre Travel Group Ltd (ASX: FLT)

Travel agency stalwart Flight Centre Travel Group Ltd shares hit a 52-week high on May 21 to close at $63.63, dropping back slightly to $63.19 at the time of writing.

It’s been a bumper 12 months for the stock with a steady incline on the charts – up 72% from its $36.67 share price at this time last year.

Earlier this month ABS tourism data revealed an increase of 1.7% in short term arrivals with travel sector peers Corporate Travel Management Ltd (ASX: CTD) rising alongside Flight Centre – up 0.7% to $25.91 at the time of writing – and Qantas Airways Limited (ASX: QAN) also up 0.8% to $6.37.

Flight Centre reported a modest upgrade to full year guidance in February with targets between $120 million and $135 million as the company maintains a strong cash position of $1.2 billion in cash and investments and no surprises expected in operating cash outflows.

Other travel sector stocks are not faring as well this week, with Sydney Airport Holdings Pty Ltd (ASX: SYD) shares down 0.4% at present to $6.99 while direct competitor Webjet Limited (ASX: WEB) fell more sharply, down 2.4% to $11.99 at the time of writing.

Reece Ltd (ASX: REH)

Shares in bathroom and plumbing product household name Reece Ltd are at a 52-week high today, with share prices up 2% to $12.55 at the time of writing after climbing from just $8.04 at this time last year.

Investors are rallying behind the company as it carries out its US expansion after the $1.9 billion acquisition of MORSCO, which has sites across the US with plumbing and heating and cooling equipment.

Reece launched a $560 million equity raising to fund the transaction with MORSCO giving Reece prominence across 16 US states with 171 branches and 2500 employees.

There have been some worrisome comparisons among analysts to the likes of Wesfarmers Ltd (ASX: WES) troubled Homebase acquisition, but the MORSCO business looks very like the Reece platform itself, and with a solid reputation of operations in Australia it is most likely Reece will be able to duplicate its successes in the US market under the MORSCO banner.

One to watch as the MORSCO transaction is finalised, but Reece is expected to deliver a record FY18 result driven by its new branch openings and the continued leverage of its supply chain to retain market share – so it’s likely all will go well with this expansion too.

Avanco Resources Limited (ASX: AVB)

Shares in copper exploration and development company Avanco Resources Limited hit a 52-week high on May 21 with a close of 17c per share, dropping back slightly at the time of writing but still on a high for the $430 million market cap emerging player.

Avanco last week announced a development update on its Pedra Branca Copper Project in Carajas, Brazil, reporting a strong level of support from regulatory agencies with necessary licenses likely to be granted by 2018 year end.

Avanco has entered a competitive space in the copper sphere, and is up against the likes of BHP Billiton Limited (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Northern Star Resources Ltd (ASX: NST).

But the global demand for copper continues to climb as demand for batteries is set to soar, so Avanco could be a good speculative pick for investors looking to get in on the ground level and if it can get the fundamentals right, Avanco could be set for big things.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, Sydney Airport Holdings Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended Webjet Ltd. 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 Scott Phillips.

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