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4 Stocks Trading Near 52-Week Highs 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 Maximus, Pediatrix Medical Group, Inc., Sally Beauty and State Street 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.
Here are four stocks, each sporting a Zacks Rank #1, out of the 13 that made it through the screen:
Maximus has built a strong reputation as a trusted partner to governments worldwide, with over four decades of expertise, delivering cost-effective, scalable solutions in health and human services. Long-term contracts, steady dividend payouts, and its ability to adapt to complex social needs, expand into clinical services, and leverage a skilled workforce give it a competitive edge.
Maximus is enhancing its competitive edge with the achievement of CMMC Level 2 certification. This demonstrates its ability to meet strict Department of Defense cybersecurity standards, safeguard sensitive defense data and accelerate program launches by bypassing lengthy Authorization to Operate delays. This milestone reinforces Maximus' position as a trusted partner for defense and national security missions.
The Zacks Consensus Estimate for MMS'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's top line has been benefiting from strong same-unit revenue gains, improved neonatology patient volumes, stable payor mix and higher hospital contract administrative fees. It is boosting service offerings across maternal-fetal medicine, neonatology and obstetrics. The company projects adjusted EBITDA to be within $245-$255 million in 2025. It remains focused on streamlining its portfolio by divesting non-core assets, allowing it to sharpen its focus on high-margin core services.
MD has a strong pipeline of future acquisitions and continued expansion of specialty care services. It projects net income to be within the range of $126.02-$133.32 million for 2025. It is expanding telehealth services to provide more accessible and affordable healthcare.
The Zacks Consensus Estimate for MD's 2025 earnings has remained steady at $1.78 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%.
Sally Beauty continues to advance its strategic priorities, focusing on customer engagement, high-margin owned brands and innovation. The company is undergoing a brand refresh, modernizing its identity and enhancing its digital presence and in-store experience to strengthen its position in the beauty industry. The expansion of its marketplace partnerships and loyalty program is driving customer retention and sales growth, while investments in exclusive brands and product innovation support long-term success.
The Fuel for Growth program holds the key to cost savings and margin expansion through operational efficiencies. For fiscal 2025, comparable sales are now projected to remain flat compared with the previous guidance of flat to a 1% decline year over year. The company now expects its adjusted operating margin within the range of 8.6-8.7% compared with the earlier guided band of 8-8.5% for fiscal 2025.
The Zacks Consensus Estimate for SBH's fiscal 2025 earnings has remained steady at $1.84 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 8.32%.
State Street provides a range of products and services for institutional investors worldwide through its subsidiaries. Solid business servicing wins, a global footprint, and strategic acquisitions and collaborations will continue to support fee income growth. We expect fee revenues to record a CAGR of 4.6% over the next three years. Higher interest rates will aid net interest income (NII) growth. We expect NII to witness a CAGR of 1.4% by 2027. Rising assets under management (AUM) balance will drive financials. Our estimates for total AUM imply a CAGR of 14.9% by 2027.
STT is teaming up with Apex Fintech Solutions in a move that signals its ambition to transform the wealth management infrastructure. Through this collaboration, STT will integrate Apex's custody and clearing technology with its institutional-grade infrastructure and global client network. The result will be a differentiated solution that allows wealth managers, fintech platforms and advisors to launch and scale wealth services more efficiently while providing a seamless end-client experience.
The Zacks Consensus Estimate for STT's 2025 earnings has moved north by 0.9% to $9.94 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 6.58%.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your trial to the Research Wizard today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
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.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
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Zacks.com featured highlights include Maximus, Pediatrix Medical, Sally Beauty and State Street
For Immediate Release
Chicago, IL – October 7, 2025 – Stocks in this week’s article are Maximus (MMS - Free Report) , Pediatrix Medical Group, Inc. (MD - Free Report) , Sally Beauty (SBH - Free Report) and State Street (STT - Free Report) .
4 Stocks Trading Near 52-Week Highs 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 Maximus, Pediatrix Medical Group, Inc., Sally Beauty and State Street 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.
Here are four stocks, each sporting a Zacks Rank #1, out of the 13 that made it through the screen:
Maximus has built a strong reputation as a trusted partner to governments worldwide, with over four decades of expertise, delivering cost-effective, scalable solutions in health and human services. Long-term contracts, steady dividend payouts, and its ability to adapt to complex social needs, expand into clinical services, and leverage a skilled workforce give it a competitive edge.
Maximus is enhancing its competitive edge with the achievement of CMMC Level 2 certification. This demonstrates its ability to meet strict Department of Defense cybersecurity standards, safeguard sensitive defense data and accelerate program launches by bypassing lengthy Authorization to Operate delays. This milestone reinforces Maximus' position as a trusted partner for defense and national security missions.
The Zacks Consensus Estimate for MMS'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's top line has been benefiting from strong same-unit revenue gains, improved neonatology patient volumes, stable payor mix and higher hospital contract administrative fees. It is boosting service offerings across maternal-fetal medicine, neonatology and obstetrics. The company projects adjusted EBITDA to be within $245-$255 million in 2025. It remains focused on streamlining its portfolio by divesting non-core assets, allowing it to sharpen its focus on high-margin core services.
MD has a strong pipeline of future acquisitions and continued expansion of specialty care services. It projects net income to be within the range of $126.02-$133.32 million for 2025. It is expanding telehealth services to provide more accessible and affordable healthcare.
The Zacks Consensus Estimate for MD's 2025 earnings has remained steady at $1.78 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%.
Sally Beauty continues to advance its strategic priorities, focusing on customer engagement, high-margin owned brands and innovation. The company is undergoing a brand refresh, modernizing its identity and enhancing its digital presence and in-store experience to strengthen its position in the beauty industry. The expansion of its marketplace partnerships and loyalty program is driving customer retention and sales growth, while investments in exclusive brands and product innovation support long-term success.
The Fuel for Growth program holds the key to cost savings and margin expansion through operational efficiencies. For fiscal 2025, comparable sales are now projected to remain flat compared with the previous guidance of flat to a 1% decline year over year. The company now expects its adjusted operating margin within the range of 8.6-8.7% compared with the earlier guided band of 8-8.5% for fiscal 2025.
The Zacks Consensus Estimate for SBH's fiscal 2025 earnings has remained steady at $1.84 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 8.32%.
State Street provides a range of products and services for institutional investors worldwide through its subsidiaries. Solid business servicing wins, a global footprint, and strategic acquisitions and collaborations will continue to support fee income growth. We expect fee revenues to record a CAGR of 4.6% over the next three years. Higher interest rates will aid net interest income (NII) growth. We expect NII to witness a CAGR of 1.4% by 2027. Rising assets under management (AUM) balance will drive financials. Our estimates for total AUM imply a CAGR of 14.9% by 2027.
STT is teaming up with Apex Fintech Solutions in a move that signals its ambition to transform the wealth management infrastructure. Through this collaboration, STT will integrate Apex's custody and clearing technology with its institutional-grade infrastructure and global client network. The result will be a differentiated solution that allows wealth managers, fintech platforms and advisors to launch and scale wealth services more efficiently while providing a seamless end-client experience.
The Zacks Consensus Estimate for STT's 2025 earnings has moved north by 0.9% to $9.94 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 6.58%.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your trial to the Research Wizard today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2762744/4-stocks-trading-near-52-week-high-with-room-to-rise-further
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.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.