18 S&P 500 Stocks Reach New Highs Amid Broader Market Weakness

A small group of large companies is bucking the trend in the broader market, with 18 S&P 500 stocks reaching their 52-week highs as of Wednesday. This strength is concentrated within two sectors: Health Care, with 9 names, and Energy, with 6 names.

Johnson & Johnson (JNJ) tops the list in terms of market capitalization, but the company's revenue declined 0.2% over the last twelve months. Pfizer (PFE), another name on the list, also saw a decline in revenue despite its stock price reaching a new high.

A closer look at the underlying fundamentals is necessary to determine if these companies are earning their new valuations. The Trefis Guidance Momentum screen suggests that only a handful of stocks have seen management raise their outlooks, which tends to have staying power.

Health Care stocks make up nearly half of the list, and owning a Health Care ETF like XLV could provide exposure to this group's strength without betting on individual names. The Trefis High Quality (HQ) Portfolio is built to own quality businesses with consistent cash generation, strong margins, and resilient balance sheets.