Five Stocks That Hit 52-Week Highs on Monday

With all three major indexes up on Monday and the S&P 500 close to an all-time record, it’s not surprising that five stocks, Amazon.com, Inc. (NASDAQ:AMZN), Aon plc Class A Ordinary Shares (UK) (NYSE:AON), GrubHub Inc (NYSE:GRUB), Momo Inc (ADR) (NASDAQ:MOMO), and Tata Motors Limited (ADR) (NYSE:TTM), each hit 52 week highs on Monday.

In this article, we take a closer look at the five stocks and use data from the latest 13F filings to determine what hedge funds from our database think about these stocks.

At Insider Monkey, we track around 750 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on, can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see the details here).

FAA Decision Powers Amazon

Traders bid up Amazon.com, Inc. (NASDAQ:AMZN) to an all-time high of $774.98 shortly after new FAA regulations that opened the U.S. skies for commercial drones went into effect. Given Amazon.com, Inc. (NASDAQ:AMZN)’s ambition of delivering products faster and cheaper, many investors believe the new regulations will lead to Amazon drone deliveries sooner rather than later. Seeing as consumers typically purchase more (all else equal) when the delivery time is shorter, Amazon’s already healthy revenue growth could increase further due to those rules. Andreas Halvorsen’s Viking Global took some profits in the second quarter, trimming its stake in Amazon.com, Inc. (NASDAQ:AMZN) by 5% to 3.28 million shares.

Aon Hits 52-Week High

Shares of Aon plc Class A Ordinary Shares (UK) (NYSE:AON), a leading provider of insurance brokerage and reinsurance brokerage, risk management, and human resources solutions and outsourcing services, hit a 52 week high on Monday largely due to broader market strength and optimism over the U.S. economy. Given the strong job market in the U.S., corporations are increasingly turning to human resources and outsourcing services to meet their labor needs. Seeing as the U.S. economy is strong, demand for insurance brokerage services is also robust. A total of 31 funds from our database had a bullish position in Aon plc Class A Ordinary Shares (UK) (NYSE:AON) at the end of June, compared to 30 funds a quarter earlier.

On the next page, we take a closer look at GrubHub Inc, Momo Inc (ADR), and Tata Motors Limited (ADR).

GrubHub Spikes

Despite potential competition from Uber and other competitors with more resources, GrubHub Inc (NYSE:GRUB)’s shares touched a 52-week high on Monday before retreating shortly after. Given the lack of fundamental news concerning the company, GrubHub Inc (NYSE:GRUB)’s shares likely rallied due to purchases from trend followers and momentum chasers. Shares of the stock are comfortably above key moving averages and have gained 65% year-to-date. Of the around 750 elite funds we track, 25 funds owned shares of GrubHub Inc (NYSE:GRUB) at the end of the second quarter, up by two funds from the previous quarter.

Momo Bulls Feeling the Love

Momo Inc (ADR) (NASDAQ:MOMO) bulls had a good day yesterday after the stock soared to an all-time high. Although the Chinese economy has slowed down, many Chinese tech stocks listed in the U.S. have done well. Helping the sentiment in the sector was the publication of a recent New York Times article that said ‘China, not Silicon Valley, is cutting edge in mobile tech’. Also potentially fueling bullish sentiment is the anticipation of several upcoming IPOs for major Chinese startups. If sentiment towards the Chinese tech sector is strong, many speculators feel Momo shares can do well. The number of investors tracked by Insider Monkey with holdings in Momo Inc (ADR) (NASDAQ:MOMO) fell by one quarter-over-quarter to nine at the end of June.

Tata Motors’ Rally Continues 

Tata Motors Limited (ADR) (NYSE:TTM)’s shares continued their post-earnings surge on Monday, hitting a 52-week high. Given the size of India’s population and the fast growth rate of the country’s economy, many investors believe Tata Motors Limited (ADR) (NYSE:TTM) can maintain its healthy revenue growth for the years to come. Management has also executed relatively well by controlling expenses when needed. At the end of the second quarter, 12 funds from our database owned shares of Tata Motors Limited (ADR) (NYSE:TTM).

Disclosure: none