What is a 52-Week High
How to Identify a Stock's 52-Week High
If you observe the market prices for a given security during a specific period of time, there will be a price that is the highest price over that time period. The 52-week high for the price of any actively traded security is the maximum price over the course of the previous year (or previous 52 weeks).
To illustrate, suppose you are looking at changes in the market price for company XYZ's common stock over the previous year. You find that XYZ's common stock traded at $150 exactly one ago and trades at $175 today. However, at one point during the year, the price of the stock was $200. The stock's price never equaled nor exceeded this value again for the duration of the time period. Therefore, $200 is the stock's 52-week high.
Why it matters:
The 52-week high serves as an indicator for potential investors. Investor's will often reference the 52-week high for a stock when looking at the current price. If the price is near or approaching the 52-week high, it might not be a good time to buy, because the stock could be overvalued. Also, if a stock is near its 52 week high, this may be a signal that it is a good time to sell.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.