Top 10 Stocks Currently Trading at 52-Week Lows that are Worth Investing Now
In the current market landscape, which has been influenced by inflation fears, a crackdown against dual-listed companies in China, and the spread of the Delta variant of COVID-19, investors are on the lookout for stocks with long-term growth potential that are trading at their 52-week lows. Usman Kabir, in an article published by Yahoo! Finance, outlines a strategic approach to identifying such opportunities.
The strategy involves screening stocks trading near their 52-week lows, analyzing the reasons for the price decline, evaluating the financial health and dividend safety, examining the company's core business strength, and reviewing analyst outlook.
According to this approach, some of the top 52-week low stocks to buy now include:
1. Kemper Corporation (NYSE: KMPR): Ranked fourth on the list, with 11 hedge funds holding stakes worth $432 million. Kemper Corporation, a company based in Illinois that markets insurance services, reported earnings per share of -$0.82 in its Q2 2021 earnings results, missing estimates by $2.19. However, the revenue over the period was more than $1.3 billion, up more than 22% compared to the revenue over the same period last year, albeit missing predictions by $20 million.
2. Vital Farms, Inc. (NASDAQ: VITL): One of the best 52-week low stocks to buy now, with 9 hedge funds holding stakes worth $27 million. Vital Farms is a leading provider of ethically produced pasture-raised foods.
3. Credicorp Ltd. (NYSE: BAP): Ranked second on the list of 10 best 52-week low stocks to buy now, with 22 hedge funds holding stakes worth $236 million. Credicorp, a financial services firm based in Peru, offers services such as insurance, pensions, loans, credits, deposits, and wealth management.
4. Proto Labs, Inc. (NYSE: PRLB): Placed third on the list, with 18 hedge funds holding stakes worth over $444 million. Proto Labs owns and runs an online platform that markets the development and delivery of on-demand production parts.
5. Axsome Therapeutics, Inc. (NASDAQ: AXSM): Placed fifth on the list, with 17 hedge funds holding stakes worth $354 million. Axsome Therapeutics is a biopharmaceutical company focused on developing and commercializing novel therapies for various central nervous system disorders.
6. Autohome Inc. (NYSE: ATHM): Ranked sixth on the list, with 39 million average daily users and more than 90 carmakers paying to advertise on its sites. Autohome operates the leading auto information and listings website in China, majority-owned and managed by Ping An insurance company.
7. Campbell Soup Company (NYSE: CPB): Ranked seventh on the list. Campbell Soup is a food and beverage company with a rich history.
8. Las Vegas Sands Corp. (NYSE: LVS): Ranked eighth on the list. Las Vegas Sands is a luxury resort owner and operator.
9. Outset Medical, Inc. (NASDAQ: OM): Another best 52-week low stock to buy now, with 17 hedge funds holding stakes worth over $244 million. Outset Medical is a medical technology company focused on the development, manufacturing, and commercialization of home dialysis products.
10. Erie Indemnity Company (NASDAQ: ERIE): Ranked first on the list, with 12 hedge funds holding stakes worth $616 million. Erie Indemnity reported earnings per share of $1.51 in its Q2 2021 earnings results, in line with market predictions. The revenue over the period was more than $680 million, beating estimates by close to $13 million.
By following this strategic approach, investors can uncover long-term growth opportunities by targeting companies temporarily out of favor but fundamentally sound.
- In his strategic approach for finding stocks with long-term growth potential at 52-week lows, Usman Kabir suggests examining the financial health and dividend safety of companies, such as Kemper Corporation, whose earnings per share missed estimates but still managed to increase revenue significantly.
- Investors interested in the stock market may find opportunities in companies like Erie Indemnity, which reported earnings in line with market predictions and has attracted hedge funds with stakes worth $616 million, demonstrating the company's potential for long-term growth.
