Some investors may feel hesitant to buy stocks hitting new highs. Doing so runs against the conventional stock-buying wisdom that one should buy low and sell high. And yet there are stocks out there that are breaking out of recent trading ranges, suggesting reason for bullishness. This is even more true for companies that also enjoy strong demand and have catalysts for more growth.

Here are two stocks that recently hit 52-week highs but still have room to run that you might want to consider buying now.

1. Carnival

Carnival (CCL) (CUK -0.42%) shares recently surged to a new 52-week high after reporting better-than-expected earnings results. It's been a great few years for the travel industry, but the leading cruise operator is pacing for another strong year in 2025.

Carnival's revenue hit another record of $7.9 billion last quarter. The company is also performing well on the bottom line, with net income up 60% year over year to $1.7 billion, driven by higher onboard spending by guests, improved occupancy levels, and cost savings.

Management reported that almost half of 2025 is already booked. Strong demand is pushing prices up and positioning the company for another great year. Analysts currently expect Carnival to grow earnings by 28% next year.

Moreover, the company is working on long-term initiatives that should fuel shareholder returns. The launch of Celebration Key in July 2025 is expected to drive more pricing power and revenue growth into 2026. Plus, the company is modernizing ships and launching its next-generation Princess ship soon which could drive revenue upside over the long term.

The average Wall Street analyst expects Carnival's adjusted earnings per share to reach $1.98 in 2026. If the shares are still trading at the current price-to-earnings ratio of 19, the share price would hit $37, implying an upside of nearly 80%.

2. Coupang

Coupang (CPNG 0.23%) is a leading e-commerce brand in South Korea, but it also has operations in Taiwan, Singapore, China, India, and Europe. Many retailers and e-commerce leaders stumbled in 2022, but Coupang's revenue has accelerated to over 20% year over year in recent quarters. The stock surged to new highs following the company's Q2 earnings release in August, but it still trades at an attractive valuation.

Coupang has had success winning customers with its Rocket WOW membership, which offers similar perks as Amazon Prime. Customers receive free shipping, grocery delivery, and content streaming with Coupang Play. Product commerce active customers increased by 12% year over year in Q2, with the balance of its revenue growth driven by higher spending per customer.

The company generates very low margins, but its net profit margin has steadily improved over the last two years. At just under 4%, Coupang has a lot of headroom to grow profits at high double-digit rates to fuel shareholder returns. Management expects to reach a 10% margin on an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) basis over the long term, which is double the current margin.

Coupang has plenty of room to grow revenue, too. Its trailing revenue of $27 billion is a small percentage of the $560 billion opportunity that management sees in the e-commerce market. Its investments in automation and artificial intelligence (AI) should expand margins, allowing profits to grow faster than the top line.

The stock trades at a price-to-sales (P/S) ratio of 1.6, which is around the same multiple that Amazon traded in its early growth years. Analysts expect Coupang's revenue to grow 17% next year, with adjusted earnings improving to $0.51. Assuming the stock continues to trade at a P/S ratio of around 1.5 or higher, the shares should climb along with the company's revenue.

Looking out five years, investors could double their money if Coupang can maintain annualized revenue growth of at least 15%, which seems achievable considering the size of the e-commerce market.