In today’s commentary on stocks hitting new 52-week highs and lows, iconic credit investor Howard Marks’ comments from his Aug. 13 memo to clients have me pondering whether any of the latest highs and lows have outperformed the Magnificent Seven over the past five years.
Why the Mag 7? Because these seven companies are so exceptional, they’re not Marks’ biggest concern about the S&P 500’s valuation.
“I think it’s the average p/e ratio of 22 on the 493 non-Magnificent companies in the index -- well above the mid-teens average historical p/e for the S&P 500 -- that renders the index’s overall valuation so high and possibly worrisome,” Marks wrote.
The credit investor readily admits he’s not an expert on stocks. However, when someone is as wise and experienced about financial matters, it makes sense to listen and learn.
Anyway, given his words have been stirring around in my head, I thought I’d see if any stocks were hitting new 52-week highs or lows that have beaten the Mag 7 over the past five years.
The average cumulative return of the seven stocks was 292.8%. However, Nvidia (NVDA) contributed nearly 61% of that. If you exclude the highest and lowest returns among the seven, the average falls to 153.2%, a more attainable return.
Here’s what I found.
Mueller Industries (MLI)
Mueller Industries (MLI) hit a new 52-week high of $110.52 yesterday. It was the 35th of the past 12 months, but it was also an all-time high. The NYSE stock is up 553.2% over the past five years.
I’ve been bullish about the manufacturer of copper, brass, aluminum, and plastic products for industrial uses for some time. In December 2023, I recommended the mid-cap stock despite MLI hitting a new 52-week high. Its stock’s up 132% in the 23 months since.
At the time, I liked it because, although it flew under the radar, it was ideally positioned to benefit from a significant demand from the construction industry for its projects. Plus, it had a killer balance sheet, with $1.07 billion in net cash, and was valued at just 5.2 times its cash per share.
Fast forward to Q3 2025. It had $1.32 billion in net cash (no debt), 25% higher than at the end of December 2024. Based on 111 million shares outstanding, its cash per share is $11.89. It now trades at 9.3 times cash. That’s still a reasonable multiple.
Further, its trailing 12-month free cash flow as of Sept. 27 was $676.5 million. Based on an enterprise value of $10.93 billion, it has a free cash flow yield of 6.2%. Anything between 4% and 8% is fair value.
CEO Greg Christopher said it best about the company’s prospects in the company’s Q3 2025 press release.
“We have an excellent balance sheet and solid cash generating businesses. We will continue to operate with a long-term focus, and to pursue growth and expansion opportunities with care and patience.”
What more can you ask for?
Steel Dynamics (STLD)
Steel Dynamics (STLD) hit a new 52-week high of $166.42 yesterday, the steel producer’s 7th of the past 12 months. Not only is it a new 52-week high, but like Mueller, it’s also an all-time high. The Nasdaq stock is up 336.3% over the past five years.
Over the past 12 months, it’s been quite a ride for STLD shareholders. In April, the company’s stock hit a 52-week low of $103.17. Since then, it’s up 61%.
The stock, along with other U.S. peers, turned around in March when the White House announced a 25% tariff on imported steel and aluminum. They moved higher again in June when the White House doubled the tariffs to 50%.
The tariffs increased steel prices, which is good for Steel Dynamics' margins, but not so good for its customers.
Of the 13 analysts rating its stock, nine give it a Buy rating (4.31 out of 5), with a target price of $169.92, slightly above its current price.
In the long haul, I don’t think you can go wrong with nimble steel stocks like STLD.
Cencora (COR)
Cencora (COR) hit a new 52-week high of $377.54 yesterday. It was the drug distributor’s 45th of the past 12 months. Like Mueller and Steel Dynamics, it was also an all-time high. The NYSE stock is up 263.1% over the past five years.
Cencora was created through the 2001 merger of AmeriSource Health and Bergen Brunswig. In August 2023, the company changed its name after 22 years from AmeriSourceBergen to Cencora. Like all name changes, it’s taken some time to get used to, but shareholders can’t complain about the results.
In early November, Cencora announced that it would invest $1 billion over the next five years to boost its U.S. distribution. Investments include opening a second 530,000-square-foot national distribution center in Ohio. It will also open a 430-000 square-foot distribution center in California, which will double its West Coast distribution capacity.
It is investments like these that will maintain the stock’s momentum over the next five years.
Of the 15 analysts rating its stock, 11 give it a Buy rating (4.47 out of 5), with a target price of $386.36, slightly above its current price.
According to S&P Global Market Intelligence, the analyst estimate for earnings per share in fiscal 2030 (September year-end) will be $26.46. Its stock trades at 14.1 times this estimate.
Given the investments planned, the forward P/E multiple seems reasonable.
On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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