Soon, you'll inevitably start hearing about how more stocks are hitting 52-week highs. Yet before you decide that means a stock is a smart buy, keep in mind just how low most stocks fell over the past year.

On the surface, hundreds of companies may look more attractive as their 52-week highs decline. Similarly, the recession's impact on corporate earnings will make future comparisons look much better than they have recently.

Looking at 52-week highs and lows can give you some vital information, ranging from the amount of volatility in the marketto whether a company is on the path to greatness. Yet Fools know that there's much more to picking stocks than looking at past stock prices. In the wake of the market's furious rallysince early March, it's more important than ever to do your homework before you buy.

A stock market weather report
For instance, take a look at the chart below:

Company

Current Stock Price

52-Week High As of 9/1/2009

Probable 52-Week High As of 12/1/2009

MGM Mirage (NYSE: MGM)

$11.90

$37.00

$16.89

Wynn Resorts (Nasdaq: WYNN)

$67.35

$104.03

$74.90

Citigroup (NYSE: C)

$4.64

$23.50

$9.00

Bank of America (NYSE: BAC)

$17.35

$39.50

$18.25

Exelon (NYSE: EXC)

$48.58

$77.85

$58.98

Sotheby's (NYSE: BID) Continued...