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

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Key Takeaways

  • Four momentum stocks near their 52-week highs show potential for continued upside gains.
  • DB, JNPR, ATRO and FHI demonstrate strong earnings growth and positive price momentum.
  • The screening criteria target stocks trading within 20% of their highs with undervalued metrics.

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 Deutsche Bank (DB - Free Report) , Juniper Networks (JNPR - Free Report) , Astronics (ATRO - Free Report) and Federated Hermes (FHI - Free Report) 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 under-reaction 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 14 that made it through the screen:

Deutsche Bank Aktiengesellschaft continues to benefit from a well-diversified and steadily expanding deposit base. Over the last three years ending 2024, deposits recorded a compound annual growth rate (CAGR) of 3.3%, reflecting stable inflows and client trust across both retail and corporate channels. As of March 31, 2025, total deposits were €665 billion, reflecting year-over-year growth. The stable deposit balance will strengthen the company’s balance sheet. The bank maintains a sound liquidity position, with a liquidity coverage ratio of 134% as of March 31, 2025. Its cash, central bank, and interbank balances totaled €159 billion, compared with only €15.1 billion in short-term borrowings. 

DB has embarked on a digital transformation drive, focusing on cloud migration, AI, and automation to enhance operational efficiency and client services. In May 2025, Deutsche Bank reinforced its strategic partnership with International Business Machines Corporation (IBM) through a new license agreement, gaining greater access to IBM’s advanced software solutions, including the watsonx AI portfolio, to streamline workflows, reduce costs, and enhance client services.

The Zacks Consensus Estimate for DB’s 2025 earnings has moved north by 5.9% to $3.39 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missing the same twice, the average negative surprise being 66.85%.

Juniper is leveraging the 400-gig cycle to capture hyperscale switching opportunities inside the data center. The company is set to capitalize on the increasing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence. It offers suites of products such as the T4000 core router, QFX data center platform, ACX and PTX packet/optical solution, among others. 

Juniper is taking significant steps to enhance the adoption of its AI-Native Networking Platform through the introduction of its Blueprint for AI-Native Acceleration. This comprehensive framework is designed to simplify and accelerate the deployment and utilization of AI-driven networking solutions, benefiting enterprises across various sectors. By leveraging Juniper's AI-Native Networking Platform, organizations can expect up to an 85% reduction in operational expenses and a 90% decrease in network trouble tickets. 

The Zacks Consensus Estimate for JNPR’s 2025 earnings has remained steady at $2.08 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the same once, the average negative surprise being 1.31%.

Astronics is a manufacturer of specialized lighting and electronics for the cockpit, cabin and exteriors of military, commercial transport and private business jet aircraft. Higher commercial transport sales, primarily related to increased demand from airlines for cabin power and in-flight entertainment as well as connectivity products, backed by growing global commercial air traffic, are expected to bolster ATRO’s Aerospace business segment’s sales. Higher sales from military aircraft markets, backed by enhanced geopolitical tensions worldwide, are likely to aid this unit’s sales growth in the near term. Expanding commercial air traffic worldwide remains a major growth catalyst for ATRO. 

ATRO also enjoys a solid presence in the defense industry, which provides its portfolio with a diversified cushion against any crisis. Evidently, ATRO made good progress last year in its contract for the U.S. Army Future Long Range Assault Aircraft (“FLRAA”) program. With prototypes for this program expected to fly in 2026, the development stage of FLRAA is projected to generate $60-$65 million over the next couple of years for ATRO.

The Zacks Consensus Estimate for ATRO’s 2025 earnings has remained steady at $1.50 per share in the past 30 days. It has a trailing four-quarter earnings surprise of 55.64%, on average.

Federated Hermes is well-positioned to gain from its steady improvement in assets under management (AUM). Backed by a diverse asset mix and strategic acquisitions, the company continues to expand its market presence. Additionally, its decent liquidity position supports sustainable capital distribution activities, reinforcing shareholder value.

Federated continues to strengthen its foothold in the money market business, with assets reaching a record $637.1 billion as of March 31, 2025, up 10.1% year over year. Increased money market AUM is expected to provide new fund offerings, benefiting both institutional and retail clients. Also, strategic acquisitions of money market assets depict the buoyancy of Federated in the money market business. Federated maintains a solid financial position, ensuring financial stability and flexibility. As of March 31, 2025, the company’s cash and other investments totaled $541.8 million, while long-term debt remained manageable at $348.2 million.

The Zacks Consensus Estimate for FHI’s 2025 earnings has remained steady at $4.28 per share in the past 30 days. It has a trailing four-quarter earnings surprise of 13.08%, on average.

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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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