By Zacks Equity Research
Publication Date: 2025-12-23 14:35:00
Chicago, IL – December 23, 2025 – Stocks in this week’s article are NVIDIA NVDA, Ralph Lauren RL, Expedia EXPE and Cencora, Inc. COR.
Investors generally consider a stock’s 52-week high a good criterion for an entry or exit point. Stocks touching new 52-week highs 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 speculation is not absolutely baseless, not all stocks hitting a 52-week high are necessarily overpriced.
Investors might lose out on top gainers in an attempt to avoid the steep prices.
Stocks such as NVIDIA, Ralph Lauren, Expedia and Cencora, Inc. are expected to maintain their momentum and keep scaling new highs. More information on a stock is necessary to determine whether there is scope for further upside.
Here, we discuss a strategy to find the right stocks. The technique borrows from the basics of momentum investing and bets on “buy high, sell higher.”
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.
Overvaluation is natural for most of these stocks as investors’ focus (or willingness to pay the premium) has helped them reach this level. But that does not always indicate an impending decline. Factors such as robust sales, surging…
