There is a long list of popular averages and ranges that investors like to use while looking at stocks, and that includes the 52-week low and 52-week high metrics. It’s great to find stocks right before they surge towards new highs, but it can be difficult for some to establish a new and consistent range.
With that said, investors typically become interested in stocks as they breach 52-week highs because that momentum can oftentimes continue until a new range is established. If a stock is strong in a variety of key categories, it certainly can keep climbing well above that old 52-week high, and we can find those strong stocks using our Zacks methods.
Here at Zacks, we place an emphasis on earnings-related data, especially earnings estimate revision activity, and this can definitely be applied to stocks approaching their 52-week highs. One way to ensure continued upward momentum is solid earnings momentum, so we can use the proven Zacks Rank system to identify companies that are impressing in this regard.
Using this strategy, we have found five stocks that are seeing positive estimate revision activity and are hovering near their 52-week highs. Check them out now:
1. Target Corporation (TGT - Free Report)
Prior Close: $77.90 / 52-Week High: $77.91
After surpassing earnings estimates by five cents in its most recent quarter, Target witnessed several positive estimate revisions for its upcoming quarters. In fact, our consensus estimate for its upcoming fiscal year has gained more than $1.00 over the past 60 days. Meanwhile, shares have climbed roughly 25% in just 12 weeks. The stock is taking off like a rocket on the back of an improved outlook, and investors will not want to miss the gains that could come if Target can post another strong quarter.
2. Sysco Corporation (SYY - Free Report)
Prior Close: $62.22 / 52-Week High: $62.79
Food distribution giant Sysco is experiencing strong momentum in the wake of its tenth-consecutive quarter or matching or surpassing earnings estimates. Shares of the company have soared about 14% over the past 12 weeks, lifting the stock toward the 52-week high it is hovering at today. But earnings estimates are improving for the current quarter and next quarter, so shares should keep climbing as Sysco’s outlook improves. Our consensus estimates are calling for the company’s bottom line to improve by 12% and 22%, respectively, over the next two quarters.
3. CBOE Holdings, Inc. (CBOE - Free Report)
Prior Close: $132.91 / 52-Week High: $133.31
Earnings estimates are moving higher for both the current and next fiscal year for CBOE, an options exchange based in Chicago. This revision activity has been a driving force for the stock, which has now gained more than 20% over the last 12 weeks. Still, impressive top and bottom line growth in the current quarter should inspire even stronger momentum, and a rising rate environment over the next few years should help that momentum continue into the long term.
4. Dollar Tree, Inc. (DLTR - Free Report)
Prior Close: $112.90 / 52-Week High: $115.89
Much has been made about the death of brick-and-mortar retail, but times have perhaps never been better for discount retailers like Dollar Tree. The company is riding high after two solid earnings beats, and the stock has moved more than 23% over the past 12 weeks. Meanwhile, our consensus estimate for Dollar Tree’s upcoming fiscal year earnings has gained a whopping 60 cents within the past 60 days. The company’s bottom line outlook is improving significantly, and investors will hope that this improvement inspires continued momentum.
5. FedEx Corporation (FDX - Free Report)
Prior Close: $272.25 / 52-Week High: $273.16
Shipping behemoth FedEx is bouncing back strongly after a concerning down period. The company beat our consensus earnings estimate by more than 10% in the most recent quarter, and shares have soared more than 20% within the past 12 weeks. That surge has lifted FedEx to these 52-week high levels, but the stock should break higher soon on the back of its improved earnings outlook. Our consensus estimates are soaring thanks to a tidal wave of positive revisions, so investors should be able to capitalize soon.
All of these stocks are quickly approaching their 52-week highs, and that means they should be on your radar. Each stock is also sporting a Zacks Rank #1 (Strong Buy) based on its strong earnings-related data, including recent positive estimate revisions. While there are no guarantees on the stock market, these five companies definitely appear to be well-equipped to establish new ranges soon.
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