Please ensure Javascript is enabled for purposes of website accessibility

3 Surprising Stocks Hitting New Highs This Week

By Rick Munarriz - Feb 23, 2020 at 1:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Sirius XM, Virgin Galactic, and Zoom Video hit their highest levels in more than a year. Let's see why these stocks rose in an otherwise uninspiring week of trading for the general market.

Stocks moved lower last week, but the boo birds didn't get in the way of some high water mark parties. More than 1,050 stocks on the three major domestic exchanges notched fresh 52-week highs this past week, and some of the names will surprise you.

Sirius XM Radio (SIRI 0.16%)Virgin Galactic (SPCE 3.19%), and Zoom Video (ZM 8.52%) are among the names that scored their highs trading prices in more than a year. Let's see what made each stock tick this week. 

Katy Perry at a Sirius XM town hall broadcast.

Image source: Sirius XM Holdings.

Sirius XM Radio

One of the biggest winners over the past decade is none other than the country's satellite radio monopoly. The stock is nearly a 145-bagger since bottoming out this month 11 years ago. Sirius XM has been a consistent winner for investors, closing higher for 11 consecutive years. It's naturally also trading comfortably higher in 2020. 

It's still surprising to see Sirius XM at the top of its game because it warned earlier this month that top-line growth would slow to just below 4% in 2020, its weakest gains as a public company. The fresh highs also come in a climate with new auto sales declining, a potential problem since car sales remain Sirius XM's top lead generator. 

Sirius XM stock did trade briefly higher in the springtime of 2018, but Thursday's high of $7.40 is the peak over the past year. 

Virgin Galactic 

It's fitting that a nascent play in space tourism has been a rocket stock this year. Virgin Atlantic has soared 293% so far in 2020, and that's with a swift pullback since hitting an all-time high on Thursday. 

Virgin Galactic is competing against SpaceX and Blue Origin to make space travel a reality, and for now it's starting to take deposits for folks willing to pay $250,000 for a ride 50 miles into the sky. The first flights should being taking off later this year. 

Virgin Galactic is going to be a volatile stock. SpaceX and Blue Origin aren't public, so it's the only pure play on space tourism. A thin float is only going to make the price swing even more.

Is a company with limited near-term revenue prospects worth appreciating from a little more than $2 billion at the beginning of 2020 to more than $6 billion less than two months later? SpaceX is a perfect illustration of the big rewards and big risks that come with Investing in IPOs

Zoom Video

The fast-growing provider of videoconferencing services is another stock that hit a new high on Thursday after going public last year. Zoom's popularity is expanding rapidly, and revenue soared 85% in the third quarter. It reports fresh financials next week.

Zoom's surge ahead of earnings is encouraging, but there could be another factor pushing the shares higher. Zoom Video is seen by many as a play on the novel coronavirus. Companies have been scaling back from business travel and bowing out of overseas industry conferences. Teleconferencing is going to become even more popular as folks stay closer to home, making Zoom Video a winner despite its seemingly overvalued shares.  

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Sirius XM Holdings Inc. Stock Quote
Sirius XM Holdings Inc.
$6.22 (0.16%) $0.01
Zoom Video Communications Stock Quote
Zoom Video Communications
$120.42 (8.52%) $9.45
Virgin Galactic Holdings, Inc. Stock Quote
Virgin Galactic Holdings, Inc.
$6.48 (3.19%) $0.20

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.