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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 high show potential for continued upside.
KSS, HRTG, MD and NEM 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 Kohl's (KSS - Free Report) , Heritage Insurance (HRTG - Free Report) , Pediatrix Medical Group, Inc. (MD - Free Report) and Newmont (NEM - 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 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 23 stocks that made it through the screen:
Kohl's delivered its third consecutive quarter of better-than-expected results, demonstrating operational progress. The company raised its full-year 2025 earnings guidance to $1.25-$1.45 per share. Gross margin expanded 51 basis points, reflecting improved profitability despite modest sales declines. Leadership stabilized with Michael Bender's permanent CEO appointment in November 2025, bringing extensive retail experience. The company maintains strong cash generation and a healthy balance sheet while continuing its quarterly dividend of $0.125 per share. Management expressed confidence in building momentum through 2025 initiatives focused on quality products, value and frictionless customer experience.
The Zacks Consensus Estimate for KSS’s 2025 earnings has moved north by 85.1% to $1.24 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 73.8%.
Heritage Insurance Holdings remains focused on optimizing its portfolio of over $1 billion in gross premiums written toward products and geographies that maximize long-term returns to shareholders, while mitigating risk from a single or series of catastrophic weather events. This super-regional U.S. property and casualty insurance holding company thus depends on prudent underwriting execution, business diversification, rate adequacy initiatives implemented over the past three years, a robust reinsurance program and efficient management of losses and loss adjustment expenses. Heritage continues to invest strategically in InsurTech and advanced analytics to manage exposures effectively, supporting prudent loss management, earnings consistency and book value growth. Additionally, its strong partnerships with independent agencies and auto insurers enhance distribution reach and business diversification through bundled product offerings.
The Zacks Consensus Estimate for HRTG’s fiscal 2026 earnings has moved north by 25.4% to $5.14 per share in the past 30 days. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 100.05%.
Pediatrix Medical Group presents compelling near-term upside following exceptional third-quarter 2025 results that exceeded expectations. The company reported adjusted earnings of 67 cents per share, beating consensus estimates by 46%, driven by enhanced revenue cycle management, higher-acuity patient mix, and improved payor relationships. Management raised full-year adjusted EBITDA guidance to $270-290 million, reflecting operational momentum. Analyst upgrades followed, with Truist increasing price targets from $17 to $24. The company operates critical neonatal and maternal-fetal care services positioned to benefit from demographic tailwinds and policy support, including proposed ACA subsidy extensions. Strong cash flow enables strategic capital deployment through the $250 million share repurchase program announced in August 2025.
The Zacks Consensus Estimate for MD’s 2025 earnings has moved north by 8.4% to $2.07 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 35.42%.
Newmont is likely to gain from several projects, including the Tanami expansion. The acquisition of Newcrest also created an industry-leading portfolio and provided opportunities for significant synergies. The company remains focused on improving operational efficiency and returning value to shareholders. The company logged a record quarterly free cash flow in the third quarter of 2025, underscoring its operational efficiency and the strength of its Tier 1 portfolio. Its free cash flow more than doubled year to year to record $1.6 billion, led by an increase in net cash from operating activities. This marked the fourth straight quarter of free cash flow exceeding $1 billion. Net cash from operating activities shot up 40% from the prior-year quarter to $2.3 billion. Strong free cash flow positions the company to strengthen its balance sheet and pursue strategic growth investments.
The Zacks Consensus Estimate for NEM’s 2025 earnings has moved north by 3.2% to $6.05 per share in the past 30 days. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 41.56%.
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.
Image: Bigstock
4 Stocks Trading Near 52-Week High With Room to Rise Further
Key Takeaways
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 Kohl's (KSS - Free Report) , Heritage Insurance (HRTG - Free Report) , Pediatrix Medical Group, Inc. (MD - Free Report) and Newmont (NEM - 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 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 23 stocks that made it through the screen:
Kohl's delivered its third consecutive quarter of better-than-expected results, demonstrating operational progress. The company raised its full-year 2025 earnings guidance to $1.25-$1.45 per share. Gross margin expanded 51 basis points, reflecting improved profitability despite modest sales declines. Leadership stabilized with Michael Bender's permanent CEO appointment in November 2025, bringing extensive retail experience. The company maintains strong cash generation and a healthy balance sheet while continuing its quarterly dividend of $0.125 per share. Management expressed confidence in building momentum through 2025 initiatives focused on quality products, value and frictionless customer experience.
The Zacks Consensus Estimate for KSS’s 2025 earnings has moved north by 85.1% to $1.24 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 73.8%.
Heritage Insurance Holdings remains focused on optimizing its portfolio of over $1 billion in gross premiums written toward products and geographies that maximize long-term returns to shareholders, while mitigating risk from a single or series of catastrophic weather events. This super-regional U.S. property and casualty insurance holding company thus depends on prudent underwriting execution, business diversification, rate adequacy initiatives implemented over the past three years, a robust reinsurance program and efficient management of losses and loss adjustment expenses. Heritage continues to invest strategically in InsurTech and advanced analytics to manage exposures effectively, supporting prudent loss management, earnings consistency and book value growth. Additionally, its strong partnerships with independent agencies and auto insurers enhance distribution reach and business diversification through bundled product offerings.
The Zacks Consensus Estimate for HRTG’s fiscal 2026 earnings has moved north by 25.4% to $5.14 per share in the past 30 days. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 100.05%.
Pediatrix Medical Group presents compelling near-term upside following exceptional third-quarter 2025 results that exceeded expectations. The company reported adjusted earnings of 67 cents per share, beating consensus estimates by 46%, driven by enhanced revenue cycle management, higher-acuity patient mix, and improved payor relationships. Management raised full-year adjusted EBITDA guidance to $270-290 million, reflecting operational momentum. Analyst upgrades followed, with Truist increasing price targets from $17 to $24. The company operates critical neonatal and maternal-fetal care services positioned to benefit from demographic tailwinds and policy support, including proposed ACA subsidy extensions. Strong cash flow enables strategic capital deployment through the $250 million share repurchase program announced in August 2025.
The Zacks Consensus Estimate for MD’s 2025 earnings has moved north by 8.4% to $2.07 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 35.42%.
Newmont is likely to gain from several projects, including the Tanami expansion. The acquisition of Newcrest also created an industry-leading portfolio and provided opportunities for significant synergies. The company remains focused on improving operational efficiency and returning value to shareholders. The company logged a record quarterly free cash flow in the third quarter of 2025, underscoring its operational efficiency and the strength of its Tier 1 portfolio. Its free cash flow more than doubled year to year to record $1.6 billion, led by an increase in net cash from operating activities. This marked the fourth straight quarter of free cash flow exceeding $1 billion. Net cash from operating activities shot up 40% from the prior-year quarter to $2.3 billion. Strong free cash flow positions the company to strengthen its balance sheet and pursue strategic growth investments.
The Zacks Consensus Estimate for NEM’s 2025 earnings has moved north by 3.2% to $6.05 per share in the past 30 days. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 41.56%.
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.
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.