4 Stocks Trading Near 52-Week High With More Upside Potential

Investors generally consider a stock's 52-week high a good criterion for an entry or exit point. Stocks touching new 52-week highs 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 speculation is not completely baseless, not all stocks hitting a 52-week high are necessarily overpriced.

Investors might lose out on top gainers in an attempt to avoid the steep prices.

Stocks such as Sanmina SANM, Astronics ATRO, Taiwan Semiconductor TSM and Fluor FLR are expected to maintain their momentum and keep scaling new highs. More information on a stock is necessary to determine whether there is scope for further upside.

Here, we discuss a strategy to find the right stocks. The technique borrows from the basics of momentum investing and 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.

Overvaluation is natural for most of these stocks as investors’ focus (or willingness to pay the premium) has helped them reach this level. But that does not always indicate an impending decline. Factors such as robust sales, surging profit levels, earnings growth prospects and strategic acquisitions, which encouraged investors to bet on these stocks, could keep them motivated if there are no tangible negatives. 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 and sales, ensuring the continuation of their rally for some time.

Current Price/52 Week High >= .80: 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 the stock is trading within 20% of its 52-week high range.

% Change Price – 4 Weeks > 0: This 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 =1: 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) 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 >= 5: This parameter will help screen stocks that are trading at $5 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 our four picks out of the 18 stocks that made it through the screen:

Sanmina has entered fiscal 2026 on a powerful footing, driven by three fundamental pillars. First, the transformative acquisition of ZT Systems has significantly scaled its Cloud and AI Infrastructure segment, with first-quarter fiscal 2026 revenues surging 59% year over year to $3.19 billion. The IMS segment alone grew 72%, reflecting deepening penetration in AI-driven hardware demand. Second, a strategic partnership with AMD positions Sanmina as a preferred U.S.-based manufacturing partner for next-generation cloud rack and AI cluster deployments, ensuring a durable revenue pipeline. Third, Sanmina's newly announced Houston energy facility, targeting medium-voltage transformers and switchgear with initial customer commitments already secured, diversifies its revenue base. Robust operating cash flow of $179 million underscores the company's financial resilience to fund sustained growth through 2026 and beyond.

This Zacks Rank #1 stock has returned 37.5% in the past six months. It has a trailing four-quarter earnings surprise of 6.75%, on average. The Zacks Consensus Estimate for SANM’s fiscal 2026 earnings has moved north by 4.4% to $10.06 per share over the past 30 days.

Astronics has entered 2026 on an exceptional footing, capping 2025 with record fourth-quarter sales of $240.1 million — a 15.1% year-over-year surge — powered by record Aerospace revenue of $219.6 million. The company's gross margin expanded 350 basis points to 33.3%, reflecting higher volumes, a favorable product mix, and disciplined pricing actions. A record backlog of $674.5 million entering 2026 provides exceptional revenue visibility, while 2026 guidance of $950-$990 million signals continued double-digit growth momentum. The October 2025 acquisition of Bühler Motor Aviation strategically deepens Astronics' leadership in aircraft seat actuation and motion systems. Simultaneously, Test Systems restructuring is gaining traction, positioning the segment for meaningful profitability recovery. With improving operational efficiency and robust commercial aerospace demand, Astronics is well-positioned to deliver sustained value creation throughout 2026.

This Zacks Rank #1 stock has returned 115.8% in the past six-month period. It has a trailing four-quarter earnings surprise of 31.72%, on average. The Zacks Consensus Estimate for ATRO’s 2026 earnings has moved north by 2% to $2.6 per share over the past 60 days.

Taiwan Semiconductor has entered 2026 on an exceptional financial footing, having delivered full-year 2025 revenues of $122.42 billion and net income of $55.22 billion, with record gross margins of 62.3%. In February 2026, the board approved a historic $44.96 billion capital injection — the largest single allocation in company history — signaling deep conviction in sustained demand. High-performance computing now drives 58% of revenues, reflecting TSMC's growing centrality to the AI buildout. The company has begun 2nm volume production, with the 1.4nm node roadmap already advancing. Geographic diversification accelerated with the announcement of 3nm chip production at its second Japan fab, reducing concentration risk. With unmatched process leadership, strengthening customer lock-in, and disciplined capacity expansion, TSMC is fundamentally positioned to compound value aggressively through 2026.

This Zacks Rank #1 stock has surged 62% in the past six-month period. It has a trailing four-quarter earnings surprise of 8.09%, on average. The Zacks Consensus Estimate for TSM’s 2026 earnings has moved north by 0.2% to $14.14 per share over the past 30 days.

Fluor has entered 2026 with compelling fundamental tailwinds. Its backlog expanded to $18.7 billion, supported by a total project pipeline exceeding $25.5 billion, signaling robust revenue visibility. In February 2026, Fluor announced the sale of 71 million NuScale shares for $1.35 billion, unlocking nearly $2 billion in total proceeds, significantly strengthening its balance sheet. The company simultaneously launched an aggressive capital return program, repurchasing nearly 17 million shares and receiving board approval for an additional 30 million shares. Re-entry into the gas-fired power market — with a limited notice to proceed from a major U.S. utility — broadens its revenue base. An early engineering award for a domestic uranium enrichment facility further deepens its nuclear portfolio, positioning Fluor for accelerating EPC award conversions through 2026.

This Zacks Rank #1 stock has gained 30.3% in the past six months. It has a trailing four-quarter earnings surprise of 17.62%, on average. The Zacks Consensus Estimate for FLR’s 2026 earnings has moved north by 20% to $2.7 per share over the past 60 days.

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

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