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

Core Viewpoint - Stocks reaching new 52-week highs can indicate potential investment opportunities, but they may also lead to profit-taking and price pullbacks. Not all stocks at these highs are overvalued, and some may continue to gain momentum due to strong fundamentals and market conditions [1][3]. Group 1: Stock Performance and Indicators - Stocks like Pilgrim's Pride Corporation (PPC), Xerox (XRX), and Applied Industrial Technologies (AIT) are expected to maintain upward momentum and reach new highs [1]. - A stock's current price relative to its 52-week high is a useful metric; a ratio greater than 0.8 indicates the stock is trading within 20% of its high [5]. - Positive price changes over the past four weeks and twelve weeks are indicators of continued upward momentum [6]. Group 2: Stock Screening Criteria - A screening process identifies stocks near their 52-week highs with strong earnings growth expectations and favorable value metrics [4]. - The Price-to-Earnings (P/E) ratio using forward estimates should be lower than the industry median to identify undervalued stocks [7]. - A one-year earnings per share (EPS) growth rate that meets or exceeds the industry median is crucial for selecting stocks with higher growth potential [8]. Group 3: Company-Specific Insights - Pilgrim's Pride is expanding its operations and enhancing marketing support, with a Zacks Consensus Estimate for 2024 earnings at $2.97 per share, showing a significant average surprise of 252.84% over the past four quarters [12]. - Xerox's strategic initiatives, including operational shifts and acquisitions, are expected to improve profitability, with a Zacks Consensus Estimate for 2024 earnings at $2.27 per share and an average surprise of 64.8% [13][14]. - Applied Industrial Technologies is benefiting from growth in various sectors, with a Zacks Consensus Estimate for fiscal 2024 earnings at $9.49 per share, reflecting an average surprise of 10.42% [15].