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Do you like trading with a stock's momentum trends? For ideas on how to start your own momentum analysis, we ran a screen.

We began by screening the large-cap sector for stocks with strong momentum, trading within 5% of their 52-week highs. We then screened these names for those with strong profitability, with higher gross, operating, and pretax margins than their industry averages by at least 5%.

Interactive Chart: Press Play to compare changes in market cap over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks will break through to new highs? Use this list as a starting point for your own analysis.

List sorted by difference between pretax profit margin and industry average.

1. Discover Financial Services (NYSE:DFS): Operates as a credit card issuer and electronic payment services company primarily in the United States. Market cap at $17.38B, most recent closing price at $32.77. The stock is trading 4.71% below its 52-week high. TTM gross margin at 50.94% vs. industry average at 33.86%. TTM operating margin at 49.89% vs. industry average at 31.33%.TTM pretax margin at 44.05% vs. industry average at 25.8%.

2. Mastercard Incorporated (NYSE:MA): Provides transaction processing and related services to customers principally in support of their credit, deposit access, electronic cash and automated teller machine payment card programs, and travelers' cheque programs. Market cap at $54.43B, most recent closing price at $430.26. The stock is trading 2.81% below its 52-week high. TTM gross margin at 54.8% vs. industry average at 47.49%. TTM operating margin at 51.91% vs. industry average at 31.82%.TTM pretax margin at 40.9% vs. industry average at 26.78%.

3. Philip Morris International, Inc. (NYSE:PM): Engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Market cap at $149.13B, most recent closing price at $86.94. The stock is trading 4.24% below its 52-week high. TTM gross margin at 68.69% vs. industry average at 62.18%. TTM operating margin at 43.55% vs. industry average at 37.25%.TTM pretax margin at 40.71% vs. industry average at 33.33%.

4. AutoZone Inc. (NYSE:AZO): Operates as a specialty retailer and distributor of automotive replacement parts and accessories. Market cap at $14.89B, most recent closing price at $382.0. The stock is trading 2.07% below its 52-week high. TTM gross margin at 53.66% vs. industry average at 37.94%. TTM operating margin at 18.67% vs. industry average at 10.21%.TTM pretax margin at 16.61% vs. industry average at 9.39%.

5. Merck & Co. Inc. (NYSE:MRK): Provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. Market cap at $116.45B, most recent closing price at $38.27. The stock is trading 2.13% below its 52-week high. TTM gross margin at 80.64% vs. industry average at 65.1%. TTM operating margin at 21.99% vs. industry average at 15.46%.TTM pretax margin at 15.26% vs. industry average at 8.08%.

6. Southern Company (NYSE:SO): Operates as a utility company that provides electric service in the southeastern United States. Market cap at $39.62B, most recent closing price at $45.58. The stock is trading 0.90% below its 52-week high. TTM gross margin at 33.69% vs. industry average at 26.54%. TTM operating margin at 23.96% vs. industry average at 18.02%.TTM pretax margin at 19.75% vs. industry average at 13.03%.

7. Campbell Soup Co. (NYSE:CPB): Engages in the manufacture and marketing of branded convenience food products worldwide. Market cap at $10.52B, most recent closing price at $33.25. The stock is trading 2.74% below its 52-week high. TTM gross margin at 42.88% vs. industry average at 32.16%. TTM operating margin at 16.87% vs. industry average at 11.59%.TTM pretax margin at 14.52% vs. industry average at 9.2%.

8. M&T Bank Corporation (NYSE:MTB): Operates as the holding company for M&T Bank and M&T Bank, National Association that provide commercial and retail banking services to individuals, corporations and other businesses, and institutions. Market cap at $10.85B, most recent closing price at $85.79. The stock is trading 1.53% below its 52-week high. TTM gross margin at 85.49% vs. industry average at 73.16%. TTM operating margin at 47.53% vs. industry average at 40.39%.TTM pretax margin at 27.71% vs. industry average at 22.7%.

*Profitability data sourced from Fidelity, all other data sourced from Finviz.

Source: 8 Large-Caps Trading Near Highs With Impressive Profitability