Three Stocks Near Highs That I'm Buying

Wednesday morning, I discussed how strong markets tend to stay sticky to the upside because the big moves create a huge number of people who missed the move and are underinvested. They want to put money to work but are hesitant to chase it, so they will buy very shallow pullbacks.

We had a great example of this on Wednesday morning when the Russell 2000 IWM gapped down at the open, but it went straight back up immediately and was in positive territory in about 15 minutes. Dip buyers did not hesitate.

We'll see how much willingness there is to chase Russell 2000, but it should be clear that there is some very strong support at this point, and pullbacks are likely to be bought quickly.

One of the big challenges of this sort of market is trying to enter extended stocks and make new highs. The conventional wisdom is that we should buy low and sell high, but sometimes, the better trade is to buy high and sell even higher. The only way a great stock can double or triple is if it is trading at its highs a large percentage of the time. If you always sell at the highs, then you won't ever hold on to the really big winners.

Here are three stocks that are trading at their highs, which I still want to buy even though they appear to be extended.

ADMA Biologics ADMA has more than doubled since I first discussed it, and it has been an outstanding performance. It is accelerating even higher and looks almost parabolic, but it still has an attractive valuation.

Cantor Fitzgerald raised its price target on ADMA to $15 from $10 and stated it is "not too late" to look at the stock despite the 162% rally halfway into 2024. ADMA has a commercial immunoglobulin intravenous portfolio for the treatment of primary humoral immunodeficiency. Cantor thinks the company "is on a unique growth path relative to the biopharma peers" and updated its model to account for " increased conviction."

I've reduced my position a little into recent strength but am looking for minor pullbacks and consolidation to add to shares.

A second name I've mentioned is Core Scientific CORZ, a bitcoin miner moving into high-performance computing (HPC). This morning, Cantor started the stock with a $20 price target.

CORZ has historically been focused on using bitcoin mining to maximize the value of its energy infrastructure, but in June, it announced a deal with CoreWeave that "changed the game" in the bitcoin mining sector. The firm believes bitcoin miners currently have access to power, one of the most coveted assets in the world. Cantor thinks the market is still underappreciating how unique this deal is and how great the potential for additional deals is.

I have a position in CORZ and will be adding it as it pulls back slightly. I don't expect it to go much lower than $10.

A third name I want to build is Lantheus Holdings LNTH. LNTH recently blasted out of a long trading range following new proposed rules from the Centers for Medicare & Medicaid Services for reimbursement for Pylarify, which is a very important diagnostic imagining agent that is injected for PET scans, etc.

Analysts raised LNTH estimates substantially on the news. The average target is now $132, with a high of $165. There is also potential for a takeover in this case. The stock is currently consolidating at its highs and has only had a slight dip so far. I still have a core position and am slowly nibbling at pullbacks. Upcoming earnings news should be upbeat.

There are many more stocks out there that look extended and may be good buys, but here are three that I'm looking at right now.

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At the time of publication, Rev Shark was long ADMA, CORZ and LNTH.