4 Stocks Trading Near 52-Week High With Room to Rise Further

Stocks hitting their 52-week high and delivering consistent performance offer attractive opportunities to investors while building a portfolio. This is because stocks near that level are perceived to be winners. However, stocks touching a new 52-week high are often predisposed to profit-taking, resulting in pullbacks and trend reversals. 

Moreover, given the high price, investors often wonder if the stock is overpriced. While the speculations are not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced.

In fact, investors might lose out on top gainers in an attempt to avoid the steep prices.
 
Stocks such as Post Holdings POST, Pediatrix Medical Group, Inc. MD, Envista NVST and Zions Bancorporation ZION are expected to maintain their momentum and keep scaling new highs. Extensive information on a stock is necessary to understand whether or not there is scope for further upside.

Here, we discuss a strategy to find the right stocks. The strategy borrows from the basics of momentum investing. This technique bets on “buy high, sell higher.”

52-Week High: A Good Indicator

Many times, stocks that hit a 52-week high fail to scale higher despite having potential. This is because investors fear that the stocks are overvalued and expect the price to crash.

In fact, overvaluation is natural for most of these stocks as investors’ focus (or willingness to pay a premium) has helped them reach the level. But that does not always indicate an impending decline. Factors such as robust sales, surging profit levels, earnings growth prospects and strategic acquisitions that encourage investors to bet on these stocks could keep them motivated if there is no tangible negative. In other words, the momentum might continue.

Also, when a string of positive developments dominates the market, investors find their underreaction unwarranted, even if there are no company-specific driving forces.

Setting the Right Filters

We ran a screen to zero in on 52-week high stocks (trading near the high level) that hold tremendous upside potential. The screen includes parameters to shortlist stocks with strong earnings growth expectations, sturdy value metrics and price momentum.

Moreover, the screen filters stocks that are relatively undervalued compared to their peers in terms of earnings as well as sales, ensuring the continuation of their rally for some time.

Current Price/52 Week High >= .8: This is the ratio between the current price and the highest price at which the stock has traded in the past 52 weeks. A value greater than 0.8 implies that the stock is trading within 20% of its 52-week high range.

% Change Price – 4 Weeks > 0: It ensures that the stock price has moved north over the past four weeks.

% Change Price – 12 Weeks > 0: This metric guarantees a continued upward price momentum for the stock over the past three months as well.

Price/Sales <= XIndMed: The lower, the better.

P/E using F(1) Estimate <= XIndMed: This metric measures the amount an investor puts into a company to obtain one dollar of earnings. It narrows down the list of stocks to those that are undervalued compared to the industry.

One-Year EPS Growth F(1)/F(0) >= XIndMed: This helps choose stocks that have higher growth rates than the industry. This is a meaningful indicator, as decent earnings growth adds to investor optimism.

Zacks Rank <=2: No screening is complete without the Zacks Rank, which has proved its worth since its inception. It is a fundamental truth that stocks with a Zacks Rank #1 (Strong Buy) or #2 (Buy) have always managed to brave adversities and beat the market average. You can see the complete list of today’s Zacks #1 Rank stocks here.

Current Price >= 8: This parameter will help screen stocks that are trading at $8 or higher.

Volume – 20 days (shares) >= 100000: The inclusion of this metric ensures that there is a substantial volume of shares, so trading is easier.

Here are four stocks, each sporting a Zacks Rank #1, out of the 24 that made it through the screen:

Post Holdings continues to expand through strategic acquisitions, including the purchase of Potato Products of Idaho, marking its entry into the refrigerated and frozen potato market. The Foodservice segment emerged as a key growth driver in the second quarter of fiscal 2025, with a 9.6% increase in sales, fueled by value-added egg products and ready-to-drink shakes. 

Strategic pricing actions in Weetabix and Refrigerated Retail helped offset cost pressure and are expected to support results going forward. The planned acquisition of 8th Avenue Food & Provisions further strengthened the company’s portfolio and led to an upward revision in the adjusted EBITDA guidance. Supported by solid cash flows, Post Holdings returned capital to shareholders through share repurchases, reflecting confidence in its outlook and long-term strategy.

The Zacks Consensus Estimate for POST’s fiscal 2025 earnings has moved north by 3.3% to $6.95 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 21.43%.

Pediatrix Medical Group has stepped up its commitment to shareholder returns with a new $250 million share repurchase authorization, underpinned by solid cash generation. Over the past 12 months, the company produced $245 million in operating cash flow, marking an 18.4% year-over-year increase. Profitability has risen, thanks to the divestiture of lower-margin, non-core assets, allowing the company to concentrate on its core physician services. Return on capital now stands at 10.6%, comfortably above the industry average of 7.4%. Operational momentum is also evident. Higher patient volumes, improved acuity, favorable collections and reduced operating expenses are lifting performance. Management now expects 2025 adjusted EBITDA in the range of $245-$255 million compared with its earlier projection of $220-$240 million.

The Zacks Consensus Estimate for MD’s 2025 earnings has moved north by 9.3% to $1.73 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 28.74%.

Envista is a global family of more than 30 dental brands, including Nobel Biocare, Ormco, DEXIS and Kerr, built through the acquisition and integration of over 25 leading dental businesses. Envista is making progress in its three core focus areas. The Spark business is consistently taking shares and expanding gross margins. Amid ongoing macro uncertainty, the company is driving strong contributions from EBS. New acquisitions continue to capture strong synergies. Furthermore, the company’s growing international presence is supported by its trusted brands, innovative product offerings and comprehensive customer service. A stable global dental market creates a favorable long-term growth opportunity for the company. Solid financial stability also bodes well for the stock.

The Zacks Consensus Estimate for NVST’s 2025 earnings has moved north by 7.7% to $1.12 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 16.5%.

Zions Bancorporation is a diversified financial service provider, operating a widespread network of more than 400 branches. Zions has been opportunistically repurchasing shares. In February, the company approved a plan authorizing the buyback of up to $40 million worth of shares for 2025, which was completed in the first quarter. The company intends to repurchase shares cautiously until it has further regulatory clarity on capital norms. As of June 30, 2025, Zions’ common equity tier 1 capital ratio was 11%, up from 10.6% in the prior-year period. Zions’ solid balance sheet and robust liquidity continue to underpin its financial stability and enhance shareholder value. The company holds long-term issuer ratings of BBB+ from both Standard & Poor's and Fitch Ratings, and Baa2 from Moody’s Investors Service. 

The Zacks Consensus Estimate for ZION’s 2025 earnings has moved north by 1.9% to $5.78 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 12.1%.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance

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This article originally published on Zacks Investment Research (zacks.com).

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