Three Momentum Stocks Approaching 52-Week Highs to Consider for Further Growth

Stocks that hover around their 52-week highs often indicate bullish momentum. The past year can provide a meaningful perspective on a stock’s price performance in relation to its near-term outlook. When a stock experiences upward movement driven by upcoming catalysts, reaching a 52-week high may signal just the beginning of its growth journey.

Part of the appeal in investing in stocks near their 52-week highs lies in psychology. Investors frequently interpret this pattern as a strong bullish signal, which can lead to further buying and higher prices.

Nonetheless, it is crucial for investors to grasp the reasons behind a stock's upward momentum. If the rise is due to factors unrelated to the company's fundamentals, such as a short squeeze—like what happened with GameStop in 2021—investors could face significant risks. Often, these scenarios do not end well for those who fail to exit before a potential sharp decline.

If the growth stems from solid organic developments such as expansion or robust economic conditions, it could present a great buying opportunity. Here, we will discuss three stocks trading near their 52-week highs with underlying catalysts that may encourage further upward movement.

Innovations and Acquisitions Fueling Fiserv’s Expansion

Fiserv Inc. (NYSE: FI) is a global fintech company known for its commitment to innovation, quality, and leadership, famously recognized as one of Fortune’s “World's Most Admired Companies” for 10 out of the last 11 years.

FI shares reached their 52-week high in early March 2025, coinciding with the company's all-time high, likely fueled by anticipation surrounding its acquisition of CCV, a payment solutions firm from the Netherlands. This deal positions Fiserv to expedite the launch of its Clover platform and operational systems in Europe.

Moreover, Fiserv recently enhanced its skill set by acquiring Payfare, which specializes in card program management, further extending its influence in the burgeoning gig economy and evolving workforce dynamics.

However, it appears that after the initial excitement, some investors started cashing in before the announcement's official confirmation on March 19, 2025. Forecasts from analysts place the stock's consensus price target at $242.32, indicating potential for growth above the current 52-week high.

Darden Restaurants Shows Resilience in a Competitive Market

Darden Restaurants Inc. (NYSE: DRI) has been outperforming many peers within the consumer discretionary sector, trading at its 52-week high as of March 27, 2025. Darden oversees several popular restaurant chains, including Olive Garden, Longhorn Steakhouse, and Capital Grille.

The recent spike in Darden's stock can be partly attributed to an encouraging earnings report showcasing year-over-year increases in revenue and profits, along with optimistic guidance for the upcoming quarter. Following this, analysts have shifted their projections, adjusting price targets upward by 10% or more over the consensus.

DRI stock has surged by 25% in the past year and 11.8% year-to-date in 2025. Despite this gain, it maintains a forward price-to-earnings (P/E) ratio of about 22x, which, while slightly higher than its five-year average, does not mark it as excessively valued. After suspending dividends in 2020, Darden has since reinstated its dividend, marking a positive shift.

Kinross Gold: A Pillar of Stability Amid Market Fluctuations

Gold mining stocks are often appealing to investors seeking stability, and Kinross Gold Corp. (NYSE: KGC) is currently trading at an all-time high as of March 27, 2025. This upward trend aligns with the persistent rise in gold prices, which continue to break records.

The rationale for KGC's stock movement is closely tied to the broader story of gold’s value in fluctuating markets. Anticipated inflation from recent trade tensions and uncertainties over national debt management add to gold's allure.

Kinross is approaching a key milestone, with its earnings report set for early May, which could serve as a catalyst propelling price targets beyond the current consensus, which is approximately 6.6% below KGC's closing price of $12.46 on March 27, 2025.

Stocks, Investing, Growth