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 Indivior INDV, Aura Minerals Inc. AUGO, Ero Copper ERO and OI Glass OI 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 we present four stocks, each sporting a Zacks Rank #1, out of the seven stocks that made it through the screen:

Indivior presents a compelling buy opportunity for 2026, driven by multiple fundamental catalysts. Recent S&P SmallCap 600 inclusion (December 2025) and imminent U.S. redomiciliation enhance investor visibility and institutional ownership. The strong third-quarter 2025 results demonstrated 15% SUBLOCADE revenue growth, with management raising full-year revenue guidance to $1.18-$1.22 billion and adjusted EBITDA guidance to $400-$420 million. Management projects $150 million annual operating expense savings beginning in 2026, which will expand margins significantly. December clinical study demonstrates SUBLOCADE's efficacy in high-risk populations, strengthening its competitive moat. The concluded DOJ settlement removes legacy overhang, while new FDA-approved label changes position the company for accelerated market penetration and sustained profitable growth trajectory.

The Zacks Consensus Estimate for INDV’s 2026 earnings has moved north by 5.6% to $2.28 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 68%.

Aura Minerals presents a compelling investment opportunity following transformative developments. Its January 2026 construction license and early work commencement at Era Dorada marks a critical execution milestone, targeting 111,000 gold equivalent ounces annually at industry-leading $1,178/oz all-in sustaining costs. December's MSG acquisition and updated production guidance, projecting 600,000+ GEO annually, up substantially from the 450,000 GEO outlook, demonstrates an accelerating growth trajectory. Era Dorada's robust feasibility economics, featuring 1.75 million ounce reserves over a 16.8-year mine life, position Aura for sustained cash generation. Combined with record third-quarter 2025 operational results and a diversified producing asset base, AUGO offers an attractive entry for investors seeking leveraged precious metals exposure.

The Zacks Consensus Estimate for AUGO’s 2026 earnings has moved north by 2.9% to $1.05 per share in the past 60 days. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average negative surprise being 13.4%.

Ero Copper projects copper output of 85,000-95,000 tonnes in 2026, supported by Tucumã Operation achieving design throughput and Caraiba's new external shaft advancing toward 2027 completion. Following January 2025's credit facility expansion to $200 million with extended maturity, Ero strengthened its balance sheet and liquidity position. The Furnas Project shows exceptional promise, with drilling extending mineralization to 950 meters depth, supporting a preliminary economic assessment targeted for the first half of 2026. Combined with robust gold production of 50,000-60,000 ounces annually, Ero offers exceptional organic growth and value creation opportunities.

The Zacks Consensus Estimate for ERO’s 2026 earnings has moved north by 8.1% to $2 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 25.31%.

O-I Glass presents strong investment potential following exceptional third-quarter 2025 results. The company exceeded expectations with adjusted EPS of 48 cents per share. Segment operating profit was up 60% year over year with margins expanding 570 basis points. As of the end of the third quarter, management's transformative Fit to Win program delivered $220 million in savings, exceeding targets and positioning O-I to surpass its $250 million 2025 goal. With raised full-year guidance projecting EPS nearly doubling versus 2024 and management signaling continued momentum into 2026 through operational excellence and free cash flow improvement of $150-$200 million, O-I's strategic execution positions the stock for sustained earnings growth ahead.

The Zacks Consensus Estimate for OI’s 2026 earnings has moved north by 1.9% to $1.60 per share in the past 60 days. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 53.78%.

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

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