🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Young Investors: 3 Stocks at New 52-Week Lows to Make Your First 6 Figures

Published 2019-08-08, 02:30 p/m
© Reuters.

Hi there, Fools. I’m back to call attention to three stocks trading at new 52-week lows. Why? Because the big gains in the stock market are made by buying attractive companies

  • during times of severe market anxiety; and
  • when they’re available at a clear discount to intrinsic value.
As legendary value investor Warren Buffett once quipped, “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.” And there’s no better place to buy bargain stocks than in a TFSA account, where all of the upside is tax free.

Let’s get to it.

Spoiled berry Leading off our list is communications technologist BlackBerry (TSX:BB)(NYSE:BB), which is down 31% over the past year and trading near 52-week lows of $6.60 per share.

Uncertainty over the company’s long-term turnaround plans continues to weigh heavily on the stock, but aggressive value hounds might want to pounce. In the most recent quarter, EPS topped estimates by $0.01 as revenue jumped 23%, suggesting that fundamentals remain healthy.

Management also reaffirmed its full-year 2020 view of 23-27% revenue growth and double-digit billings growth.

“We are ahead of our schedule in our Cylance integration, while investing in the right opportunities to drive long-term growth and profitability for BlackBerry,” said Chairman and CEO John Chen.

BlackBerry shares are down 27% over the past three months.

Imperial opportunity Next up, we have energy giant Imperial Oil (TSX:IMO)(NYSE:IMO), whose shares are down 23% over the past year and trading near 52-week lows of $32.44 per share.

Weak production and slumping oil prices have pressured the stock over the past year, but now might be an opportune time to pounce. In the most recent quarter, Imperial’s EPS of $1.57 topped estimates by $0.82 while revenue also beat expectations.

Management even returned $515 million to shareholders in the form of dividends and share repurchases.

“Given overall financial and operational performance in the first half, and with several of the year’s planned upstream and downstream turnarounds completed, Imperial remains on track to deliver on our commitments for 2019,” said CEO Rich Kruger.

Imperial is down 14% over the past three months.

Hasta la Vista? Rounding out our list is oil and gas producer NuVista Energy (TSX:NVA), which is down a whopping 74% over the past year and trading at 52-week lows of $2.05 per share.

The stock has been walloped on concerns over its big debt load amid low oil prices, and the pain doesn’t seem to be letting up. Shares fell 13.5% yesterday after NuVista’s EPS missed expectations yet again.

On the bullish side, management remains confident in its long-term plan, giving patient investors something to think about.

“[W]e are pleased to have strong well economics leading to a funded three year plan which delivers clear line of sight to material free funds flow and provides us flexibility to adapt as the market changes,” wrote the company.

NuVista is down 39% over the past three months.

The bottom line There you have it, Fools: three ice-cold stocks hitting new 52-week lows.

As always, don’t see them as formal recommendations. Instead, view them as a starting point for more research. Trying to catch a falling knife can be hazardous to your wealth, so plenty of homework is still required.

Fool on.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of BlackBerry and BlackBerry. BlackBerry is a recommendation of Stock Advisor Canada.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2019

This Article Was First Published on The Motley Fool

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.