There's Room to Chase These 3 Stocks Trading Near 52-Week Highs Each of these stocks has recently hit a 52-week high, but the trend is still in the bull's favor, which means it's okay to chase these stocks at new highs
This story originally appeared on MarketBeat
The 52-week high is a psychologically important metric for traders and investors to gauge further price movement. Stocks that reach their 52-week high are generally seen to have bullish sentiment. However, many investors are reluctant to chase these stocks higher because when a stock hits this milestone, it can mean that it’s ready to move lower, especially as high-speed trading has become more commonplace.
But in some cases, a stock trading around its 52-week high still has room to move higher. This is usually because analyst upgrades back it or is coming off positive earnings.
That’s the case with the three stocks in this article. Each has recently hit its 52-week high, which may have investors wondering if now is a time to buy or sell. Certainly, a pullback and even a correction in one or more of these stocks is possible. But in each case, the trend is in the bull's favor, which means that chasing these stocks at new highs will likely be profitable in 2025.
Walmart Continues to Stand Out In a Weak Sector
Retail stocks have been hit-and-miss for investors. Consumers continue to spend, but the limited dollars are going to a shorter list of companies. Walmart Inc. (NYSE: WMT) has been one of them. The company continues to be the place where its core audience goes for everyday low prices. And it also attracts more affluent consumers looking to stretch their dollars further.
Since June 2023, WMT stock has been in a bullish pattern of forming higher highs. That pattern became steeper after the company split its stock 3-for-1 in January 2024. The stock is up over 81% in the 12 months ending in February 2025. It’s also trading near the analysts’ consensus price of $101.87.
But the company reports earnings on February 20, and analysts have been raising their price targets in advance of the report. Could the stock give a little back, even after a strong earnings report? Of course. However, WMT stock has delivered a total return of over 180% in the last five years. That includes a rock-solid dividend that has increased for 52 consecutive years.
Meta’s Recent Win Streak is Just the Beginning
On February 14, 2025, Meta Platforms Inc. (NASDAQ: META) stock closed higher for the 20th consecutive day. During that streak the stock has climbed 17%, and the stock is up over 25% in 2025.
Fans of statistical analysis understand regression to the mean. If a batter has a 20-game hitting streak, you know that the odds are more likely than not that that streak won’t continue. That would mean that META stock is likely to start giving back some of those gains. However, as the saying goes, that’s why they play the games.
Analyst sentiment remains bullish as the company continues to show strength in daily users across its platforms. And in Meta’s latest earnings report it noted that its AI chatbot had surpassed 700 million users. That supports the company’s commitment to lead the way in open source AI and may justify the billions in spending it will take to achieve that goal.
Live Sports Can Lead NFLX Stock Higher
Netflix Inc. (NASDAQ: NFLX) is now one of my “yeah but” stocks. That means that the company has faced a series of questions about its future growth prospects. In just the last two years, it faced questions over its ability to move customers to an ad-supported tier. Then, it faced skeptics who questioned its ability to crack down on password sharing.
In each case, Netflix has answered those “yeah but” arguments with more subscribers, higher revenue and higher earnings. In fact, the company’s lower-priced ad tier is so successful that it’s actively trying to steer premium plan (ad-free) customers to a lower-priced plan with ads.
However, with streaming services, it comes down to programming. After all, you can cut ties with a streaming service at the touch of a button. In addition to continuing to release titles that users want to watch, Netflix is leaning into live sports. Those efforts may still take several years to really pay off, but the company has the cash to be a major player in this space.
NFLX stock has been up 81% in the last 12 months, including the tech stock sell-off in December 2024. Since then, it’s blown past its previous 52-week high, and with some analysts eyeing a stock split, now is not the time to cancel NFLX stock.
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