4 Stocks Approaching Their 52-Week Highs That Could Still Climb Higher

Are 52-Week Highs a Reliable Signal for Investors?

Many investors use a stock’s 52-week high as a reference point for buying or selling decisions. When a stock reaches a new annual high, it often triggers profit-taking, which can lead to short-term declines or trend changes. This raises the question: are stocks at their 52-week highs too expensive to buy? While some caution is justified, not every stock at a new high is overvalued. Avoiding these stocks altogether could mean missing out on significant winners.

Companies like Sanmina, Astronics, Taiwan Semiconductor, and Fluor are expected to continue their upward momentum. However, to determine if there’s still room for growth, a deeper analysis is essential. Below, we outline a strategy rooted in momentum investing—focusing on the principle of “buy high, sell higher.”

Understanding the 52-Week High Indicator

It’s common for stocks at their 52-week highs to stall, even if their fundamentals are strong. This hesitation often stems from concerns about overvaluation and fears of a price drop. While premium valuations are typical for these stocks—driven by investor enthusiasm and willingness to pay more—this doesn’t always signal an imminent decline. Strong sales, rising profits, positive earnings outlooks, and strategic deals can sustain investor interest and keep the rally going, provided there are no major setbacks.

Additionally, when the market is dominated by positive news, investors may realize that their initial caution was unwarranted, even if there aren’t specific catalysts for the company.

How to Screen for High-Potential Stocks Near 52-Week Highs

We developed a screening process to identify stocks trading close to their 52-week highs that still offer significant upside. This approach focuses on companies with robust earnings growth, attractive valuations, and strong price momentum. The criteria include:

• Current Price/52-Week High ≥ 0.80: The stock is trading within 20% of its annual high.
• 4-Week Price Change > 0%: The stock has gained value over the past month.
• 12-Week Price Change > 0%: The stock has shown positive momentum over the last three months.
• Price/Sales ≤ Industry Median: Indicates the stock is reasonably valued compared to peers.
• Forward P/E ≤ Industry Median: The stock is not overpriced relative to its earnings outlook.
• One-Year EPS Growth ≥ Industry Median: The company is expected to grow earnings faster than its industry.
• Zacks Rank #1 (Strong Buy): Only top-rated stocks are considered, as these have historically outperformed the market.
• Current Price ≥ $5: Excludes low-priced stocks.
• 20-Day Average Volume ≥ 100,000 Shares: Ensures sufficient liquidity for trading.

From this screen, we highlight four standout stocks:

Sanmina (SANM)

Sanmina has started fiscal 2026 with strong momentum, driven by three key factors. The acquisition of ZT Systems has significantly boosted its Cloud and AI Infrastructure division, with first-quarter revenues up 59% year-over-year to $3.19 billion. The IMS segment alone grew by 72%, reflecting increased demand for AI hardware. A strategic partnership with AMD has positioned Sanmina as a leading U.S. manufacturer for next-generation cloud and AI deployments, ensuring steady revenue streams. Additionally, the launch of a new energy facility in Houston expands its business into medium-voltage transformers and switchgear, with initial customer commitments already in place. Sanmina’s healthy operating cash flow of $179 million highlights its financial strength to support ongoing growth.

Over the past six months, Sanmina’s stock has climbed 37.5%. The company has consistently surpassed earnings expectations, with an average surprise of 6.75% over the last four quarters. Analyst estimates for fiscal 2026 earnings have increased by 4.4% to $10.06 per share in the past month.

Astronics (ATRO)

Astronics enters 2026 on a strong note, ending 2025 with record fourth-quarter sales of $240.1 million—a 15.1% increase from the previous year—driven by record Aerospace revenue. The company’s gross margin improved to 33.3%, thanks to higher volumes, a favorable product mix, and disciplined pricing. Astronics begins 2026 with a record backlog of $674.5 million, providing excellent revenue visibility, and expects full-year sales between $950 million and $990 million. The acquisition of Bühler Motor Aviation in late 2025 has strengthened Astronics’ position in aircraft seat actuation and motion systems. Meanwhile, restructuring in the Test Systems division is progressing, setting the stage for improved profitability. With strong demand in commercial aerospace and operational improvements, Astronics is well-positioned for continued growth in 2026.

In the past six months, Astronics’ stock has soared 115.8%. The company has delivered an average earnings surprise of 31.72% over the last four quarters. Analyst forecasts for 2026 earnings have risen by 2% to $2.60 per share in the past two months.

Taiwan Semiconductor (TSMC)

Taiwan Semiconductor has entered 2026 with a solid financial foundation, reporting 2025 revenues of $122.42 billion and net income of $55.22 billion, along with a record gross margin of 62.3%. In February 2026, the company’s board approved a massive $44.96 billion capital investment, reflecting confidence in ongoing demand. High-performance computing now accounts for 58% of revenue, underscoring TSMC’s central role in the AI industry. The company has begun volume production of 2nm chips and is advancing toward 1.4nm technology. Geographic diversification continues, with new 3nm chip production at its second facility in Japan, reducing risk from over-concentration. With industry-leading technology, strong customer relationships, and disciplined capacity expansion, TSMC is well-positioned for continued value creation through 2026.

TSMC’s stock has jumped 62% in the past six months. The company has beaten earnings estimates by an average of 8.09% over the last four quarters. Analyst estimates for 2026 earnings have edged up by 0.2% to $14.14 per share in the past month.

Fluor (FLR)

Fluor begins 2026 with strong fundamentals, boasting a backlog of $18.7 billion and a project pipeline exceeding $25.5 billion, providing solid revenue visibility. In February 2026, Fluor sold 71 million NuScale shares for $1.35 billion, generating nearly $2 billion in proceeds and significantly strengthening its balance sheet. The company also initiated a major share repurchase program, buying back nearly 17 million shares and authorizing another 30 million. Fluor’s re-entry into the gas-fired power market and a new engineering award for a domestic uranium enrichment facility further diversify its business and position it for more project wins in 2026.

Fluor’s stock has gained 30.3% over the past six months. The company has delivered an average earnings surprise of 17.62% over the last four quarters. Analyst projections for 2026 earnings have increased by 20% to $2.70 per share in the past two months.

Discover Zacks’ Top Stock Picks

Since 2000, Zacks’ leading stock selection strategies have dramatically outperformed the S&P 500’s average annual return of 7.7%, achieving remarkable average gains of:

• +48.4%
• +50.2%
• +56.7% per year

You can access these top picks live, free of charge and with no obligation.

Want the latest recommendations from Zacks Investment Research? Download the 7 Best Stocks for the Next 30 Days now.

Free Stock Analysis Reports

• Fluor Corporation (FLR): Free Stock Analysis Report
• Astronics Corporation (ATRO): Free Stock Analysis Report
• Sanmina Corporation (SANM): Free Stock Analysis Report
• Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report