The five stocks up more than 300% in the last six months

Over the last six months, a handful of stocks have surged more than 300%. All stocks on the list trade on US exchanges, average at least one million shares per day in volume, and have market capitalizations of over $1 billion.

Why look at stocks that have already had a big run? Cory Mitchell, an analyst with Trading.biz said, “Strong performing stocks can run a long way. If a stock is up 300% many investors think it can’t possibly run further, and so they dismiss it.

“Yet the same could be said when the stock was up 50%, 100% or 150%. Top performing stocks show what the big money is buying, where the interest is, and can provide high momentum swing trades while the buying lasts.

Here are the top-performing stocks over the last six months.

Viking Therapeutics, Inc. (VKTX)

• Biotechnology Company
• 6-month return: 641.3%
• Average daily volume: 6.2 million
• Market cap: $8.6 billion
• The share price is moving up toward the top of a multi-month triangle pattern.

Avidity Biosciences, Inc. (RNA)

• Biotechnology Company
• 6-month return: 381.4%
• Average daily volume: 1.1 million
• Market cap: $2.5 billion
• Price has moved up to the highs of a multi-month consolidation and traders are watching for an upside breakout.

Fusion Pharmaceuticals Inc. (FUSN)

• Biotechnology Company
• 6-month return: 368.7%
• Average daily volume: 2 million
• Market cap: $1.8 billion
• The price leapt from $10.64 on March 18 to just under $21 on March 19 when it was announced that AstraZeneca would acquire FUSN. This leaves minimal upside as the stock will soon be delisted when the deal goes through.

Vera Therapeutics, Inc. (VERA)

• Biotechnology Company
• 6-month return: 332.9%
• Average daily volume: 1 million
• Market cap: $2.5 billion
• The stock has been moving sideways since February, with the price now working toward the top of the approximately $10 price range. There is room for the price to move to the top of the range, and possibly beyond afterwards if it breaks out again.

Alpine Immune Sciences, Inc. (ALPN)

• Biotechnology Company
• 6-month return: 301.9%
• Average daily volume: 2.2 million
• Market cap: $4.2 billion
• The stock is trading just below $65 as Vertex Pharmaceuticals has entered into a deal to acquire ALPN for $65. This leaves limited upside in this stock as it will be delisted once the deal goes through.

Trading top performing stocks

Even very strong stocks can fall at any time. Therefore, as with any stock position, risk management is required. Place a stop loss so only a small percentage of the account (like 1%) is lost if the stock doesn’t rise and instead falls.

All the stocks on the list also happen to be biotechnology companies, which are prone to large price “gaps” either to the upside or downside depending on results/news of their clinical trials and/or treatments. This is an added element of risk because the stock could surge or fall significantly in a single day, and stop losses may not be useful for providing the desired exit (if the price gaps are below the stop loss order price).

Stocks that are being acquired generally trade near the buyout price (the share price offered by the purchasing company). If the deal doesn’t go through the stock could fall back to where it was trading before the buyout offer. There is often some minimal upside left—the difference between the current price and the buyout price—until the deal actually closes. This is because the stock price will often fluctuate just below the buyout price until the deal is finalized and goes through all the proper regulatory channels.