2 Stocks Near 52-Week Highs: Will the Run Go On?

There are many stocks on the TSX that have benefited from the record run the index has enjoyed in 2019. Today I want to look at two that have hit 52-week highs in recent weeks. Should investors jump on this wave? On the flip side, should shareholders look to take profits? Let’s dive in.

Kinaxis (TSX:KXS) is an Ottawa-based company that provides software solutions for sales and operations planning. It has netted major partnerships in recent years, including with auto giants like Volvo, Toyota Motors, and Honda. Shares have climbed 59% in 2019 as of late afternoon trading on December 10. The stock has achieved average annual returns of 41% over the past five years.

This technology will continue to be in high demand over the next decade as companies look to optimize their supply chain. The stock last had an RSI of 61, which puts it outside of technically overbought territory.

Enghouse Systems (TSX:ENGH) is a software and services company that is geared towards distinct vertical markets through its three divisions. Its stock has increased 24% in 2019 at the time of this writing. In the third quarter its revenue rose 16.8% year-over-year to $101.3 million.

Adjusted EBITDA rose marginally to $28.1 million or $0.51 per diluted share.

The stock has retreated sharply from the 52-week high it reached in late November. It last had an RSI of 57, putting it in neutral territory. I don’t like Enghouse as much as Kinaxis going forward, but the stock is still worth monitoring for a more attractive entry point.