Zacks.com featured highlights Envista , Reliance, The Ensign, The Hanover Insurance and Lenovo

For Immediate Release

Chicago, IL – August 21, 2026 – Stocks in this week’s article Envista NVST, Reliance, Inc. RS, The Hanover Insurance Group THG and Lenovo Group LNVGY

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 may lose out on top gainers in an attempt to avoid the steep prices.

Stocks such as Envista, Reliance, Inc., The Hanover Insurance Group and Lenovo Group 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.

Reliance, Inc. is well-positioned to sustain earnings momentum in the second half of 2026, supported by several key fundamental tailwinds. The U.S. border wall contract, awarded to subsidiary AMI Metals earlier this year, continues delivering above-expectation contributions, with third-quarter 2026 shipments expected to add approximately 60 cents per share to earnings. 

Management's third-quarter guidance calls for non-GAAP EPS of $6.40–$6.60, indicating year-over-year growth of 76–81%. End-market demand is broadening across data centers, defense, commercial aerospace, and semiconductors. Extending mill lead times and tightening inventories reinforce near-term pricing power. Net debt/EBITDA of just 0.9X supports continued stockholder returns, including a $1.25 quarterly dividend declared July 17, 2026, payable Aug. 28, 2026, with $529 million still available under its repurchase program.
    
The stock has returned 20.6% in the past six-month period. It delivered a trailing four-quarter earnings surprise of 3.15%, on average. 

The Hanover Insurance Group's fundamental earnings engine continues to strengthen with disciplined underwriting delivering a combined ratio of 91.2% in the second quarter of 2026 — 85.5% excluding catastrophes — and net investment income rising 13.4% on higher earned yields. Management guidance points to Personal Lines policy-in-force growth turning sequentially positive by year-end, with renewal pricing remaining above long-term loss cost trends. 

Core Commercial net premiums grew 7.2%, while Specialty retains further room for acceleration. The July 2026 CEO succession announcement, with internal veteran Dick Lavey named CEO-elect, ensures strategic continuity. A Sept. 17 Investor Day, where management will outline its five-year strategic and financial plan, marks a meaningful near-term catalyst. Ongoing capital return — including an active $700 million repurchase program — underscores management's confidence in durable earnings power.

This stock has surged 25.5% over the past six months. It has a trailing four-quarter negative earnings surprise of 27.33%, on average. 

Lenovo's Hybrid AI strategy is gaining meaningful traction as enterprise demand accelerates. The Infrastructure Solutions Group's AI server pipeline has expanded to $54 billion — up 157% quarter-on-quarter — with the company now ranked #2 globally in x86 server revenues. AI-related revenues account for 35% of total Group revenues, up 60% year over year, demonstrating deepening business model transformation. 

SSG's AI services revenue is growing at triple-digit rates, with operating margins reaching a record 24.2%. R&D spending is up 30% year over year, reinforcing its innovation pipeline. Global AI PC market share climbed to 25.1%, underpinned by the recently expanded North Carolina manufacturing facility, adding meaningful server capacity. July's FIFA World Cup AI deployments across all 48 teams further validate Lenovo's enterprise AI execution at scale.

This stock has gained 216% in the past six months. It has a trailing four-quarter earnings surprise of 84.83%, on average. 

Why Haven't You Looked at Zacks' Top Stocks?

Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.

Today you can access their live picks without cost or obligation.

See Stocks Free >>

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2977840/4-stocks-trading-near-52-week-high-with-more-upside-potential

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

Follow us on Twitter:  https://www.twitter.com/zacksresearch

Join us on Facebook:  https://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: [email protected]

Visit: https://www.zacks.com/

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research