4 Stocks Trading Near 52-Week High With More Upside Potential

Zacks Investment Research screened for stocks trading near their 52-week highs with strong earnings growth, value metrics, and price momentum, identifying Popular (BPOP), Affiliated Managers Group (AMG), Astronics (ATRO), and Phibro Animal Health (PAHC) as likely to continue upward momentum. These stocks met criteria including trading within 20% of their 52-week high, positive price changes over the past 4 and 12 weeks, and undervalued price-to-sales and P/E ratios relative to their industries, alongside a Zacks Rank #1 (Strong Buy).

Analysis

The provided research outlines a momentum-driven investment strategy focused on identifying equities trading near their 52-week highs that also exhibit robust fundamental strength, undervalued metrics relative to industry peers, and a Zacks Rank #1 (Strong Buy). This 'buy high, sell higher' approach has pinpointed Popular (BPOP), Affiliated Managers Group (AMG), Astronics (ATRO), and Phibro Animal Health (PAHC) as candidates for continued upside, supported by positive price momentum over the past four and twelve weeks and a strongly positive sentiment score of 0.75. Popular demonstrates consistent organic growth, evidenced by a 5.6% revenue compound annual growth rate (CAGR) from 2020-2024, a 6.8% CAGR in net loans, and a 3.4% CAGR in total deposits over the same period, with these positive trends continuing into Q1 2025; the company maintains a healthy balance sheet with $6.6 billion in liquidity as of March 2025 and its 2025 earnings per share (EPS) estimate has been revised upwards by 1.2% to $10.54. Affiliated Managers Group showed an increase in assets under management (AUM) in Q1 2025 and projects a total revenue CAGR of 3.4% and AUM CAGR of 4.6% by 2027, with its alternatives strategies AUM expected to grow at a CAGR of 19.4% by 2027, already contributing significantly (41.4% of total AUM, ~50% of earnings as of March 2025); its 2025 EPS estimate has risen 1.9% to $23.01. Astronics is poised to benefit from increased commercial aerospace demand for cabin products and heightened military aircraft sales, with the U.S. Army FLRAA program expected to generate $60-$65 million in revenue over the next two years as prototypes are anticipated to fly in 2026; it boasts an average trailing four-quarter earnings surprise of 55.64%. Phibro Animal Health, a leader in animal health and mineral nutrition, sees strong international demand for its Medicated Feed Additives (MFA) and is expanding its vaccine manufacturing capabilities; its fiscal 2025 EPS estimate has increased by 1.5% to $2.04, with an average earnings surprise of 30.62%. Each of these companies carries a per-ticker sentiment score of 0.8, reinforcing the bullish outlook derived from their financial performance and strategic initiatives.

Key Decisions for Investors

• Investors may consider the identified momentum stocks (BPOP, AMG, ATRO, PAHC) for potential inclusion in growth-oriented portfolios, given their combination of strong recent price performance, solid underlying fundamentals, positive analyst estimate revisions, and relative undervaluation as per the screening criteria.
• The 'buy high, sell higher' strategy employed suggests that despite trading near 52-week highs, these specific equities could offer further upside, supported by their Zacks Rank #1 status and specific growth catalysts outlined for each company.
• While acknowledging the general risk of profit-taking in stocks nearing 52-week peaks, the detailed fundamental strengths—such as BPOP's consistent loan and deposit growth, AMG's expanding AUM in high-growth alternative investments, ATRO's significant aerospace and defense contracts, and PAHC's market leadership and innovation in animal health—warrant careful evaluation against individual risk tolerance and investment horizons.