Table of Contents
Key Points
- When looking for discounted stocks in the market, one strategy is to identify stocks that have reached their 52-week low prices or crossed below their 200-day moving averages.
- The following stocks have reached their yearly lows and present an opportunity for potential gains.
- While stock prices are influenced by news, it’s important to consider the underlying fundamentals and analyst targets for a more accurate assessment.
- Here are updates on some stocks that are currently at their 52-week lows.
Value-conscious investors often seek stocks that are trading at or near their 52-week low prices, as this can indicate a potential bottoming pattern. The 52-week period represents one trading year, which is approximately 252 trading days. Additionally, investors can also use the 200-day moving average as a reference point for a stock’s value.
Occasionally, stocks will reach these low levels, and if these stocks belong to strong companies, it can present an opportunity to buy them at discounted prices.
However, investors often hesitate to invest in such stocks due to fear that there must be a reason behind the price decline. The task at hand is to determine whether these stocks are worth considering despite the negative headlines.
Dollar Tree
Shares of Dollar Tree (NASDAQ: DLTR) have declined significantly after the company raised its prices to $1.25 per item, deviating from its one-dollar business model. This stock is currently at a 52-week low and has declined more than 25.3% year-to-date, underperforming the S&P 500 by 38.1%.
It is important to remember that stock prices are influenced by news, but it’s crucial to assess the underlying fundamentals. In Dollar Tree’s case, the company’s latest investor presentation reveals positive customer traffic growth despite the price increase. Analysts have a consensus price target of $152.82, suggesting a potential upside of 45% from the current price.
Planet Fitness
Shares of Planet Fitness (NYSE: PLNT) have dropped over 20% in the past month due to the unexpected resignation of CEO Chris Rondeau. Although negative news may affect the stock price, it’s essential to understand the true impact on the business.
In the case of Planet Fitness, the company has repurchased up to $100 million worth of stock, indicating confidence in the company’s value. Analysts have a consensus price target of $71.9, implying a potential upside of 57%.
J.M. Smucker
Shares of J.M. Smucker (NYSE: SJM) have recently declined by 11% despite the company beating earnings expectations. The stock is trading at its lowest price-to-sales ratio in over a decade.
While J.M. Smucker currently has a “Reduce” rating among analysts, it’s worth considering the positive aspects of the company’s performance and valuation.
