Zacks.com featured highlights include Sanmina, Chord Energy, Marathon Petroleum and Cenovus Energy
For Immediate Release
Chicago, IL – May 5, 2026 – Stocks in this week’s article are Sanmina SANM, Chord Energy Corp. CHRD, Marathon Petroleum MPC and Cenovus Energy CVE.
4 Stocks Trading Near 52-Week Highs with More Upside Potential
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 completely 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 Sanmina, Chord Energy Corp., Marathon Petroleum and Cenovus Energy 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.”
52-Week High: A Good Indicator
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 profit levels, earnings growth prospects and strategic acquisitions, which encouraged investors to bet on these stocks, could keep them motivated if there are no tangible negatives. In other words, the momentum might continue.
Also, when a string of positive developments dominates the market, investors find their underreaction unwarranted, even if there are no company-specific driving forces. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are our four picks out of the five stocks that made it through the screen:
Sanmina is well-positioned to deliver sustained earnings growth through fiscal 2026, supported by structural strengths and recent operational milestones. The company’s second quarter, which ended March 28, 2026, reflected strong revenue of $4.01 billion, with core Sanmina growing 7.3% year over year, demonstrating broad-based demand health beyond its ZT Systems acquisition.
Non-GAAP operating margin expanded to 6.4%, while free cash flow reached $342 million for the quarter, signaling disciplined capital deployment. The balance sheet remained robust, with $1.58 billion in cash. On April 27, 2026, the board authorized a $600 million share repurchase program, reinforcing the capital return commitment. The Cloud and AI Infrastructure end-market continues to drive accelerated compute demand, underpinning management’s confidence in full-year fiscal 2026 revenue guidance of $13.7-$14.3 billion.
This stock has returned 22.5% in the past six months. It has a trailing four-quarter earnings surprise of 13.85%, on average.
Chord Energy Corporation targets oil production of 157–161 MBopd, approximately $2.3 billion in adjusted EBITDA and $700 million in adjusted free cash flow in 2026. The XTO Williston Basin acquisition, completed in the fourth quarter of 2025, added 38 MMBoe to proved reserves totaling 917.5 MMBoe, with WTI breakevens in the low $40s.
Approximately 80% of 2026 wells will be long laterals. Fiscal 2025 lease operating expenses were $9.73/Boe, below guidance, aided by AI-driven optimization across approximately 99% of rod-lift wells. A $1.30 per share base dividend was paid on March 27, 2026. With leverage near 0.6x, CHRD is positioned for sustained value creation.
This stock has returned 71.3% in the past six-month period. It delivered a trailing four-quarter earnings surprise of 5.44%, on average.
Marathon Petroleum‘s investment case in 2026 is grounded in operational strength and structural cash flow advantage. Its refining system achieved 94% utilization and 105% margin capture in full-year 2025, generating $8.3 billion in operating cash flow. Midstream subsidiary MPLX’s rising distributions are structurally positioned to more than fund MPC’s 2026 dividend and $1.5 billion standalone capital budget, creating a self-funding return engine.
Multiple high-return infrastructure projects, including the Blackcomb and Bay Runner pipelines and Harmon Creek III processing plant, are scheduled for 2026 commissioning, expanding midstream throughput and fee-based earnings visibility. On April 29, 2026, MPC declared a $1.00 per share quarterly dividend, underscoring its commitment to shareholder returns. With $4.4 billion remaining under buyback authorizations, capital return remains intact.
This stock has surged 33.4% in the past six-month period. It has a trailing four-quarter earnings surprise of 32.69%, on average.
Cenovus Energy’s fourth-quarter 2025 upstream production reached a record 917,900 BOE/d, rising 5% year over year excluding the MEG acquisition, while downstream utilization was 98%. Adjusted funds flow for the full year rose to $8.9 billion and net earnings grew to $3.9 billion. The MEG acquisition, closed in November 2025, is set to generate $150 million in annual synergies through 2027, growing to over $400 million by 2028. In March 2026, Cenovus redeemed $300 million of preferred shares from existing cash. West White Rose, targeting first oil in the second quarter of 2026, will add 45,000 bbls/d net at peak.
This stock has gained 76.5% in the past six months. It has a trailing four-quarter earnings surprise of 51.16%, on average.
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Cenovus Energy Inc (CVE) : Free Stock Analysis Report
Sanmina Corporation (SANM) : Free Stock Analysis Report
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
Chord Energy Corporation (CHRD) : Free Stock Analysis Report
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