On Sale Now: 3 Top Stocks Sitting at 52-Week Lows

Hunting for a bargain? This group of beaten-down stocks, including Canada Goose Holdings Inc (TSX:GOOS)(NYSE:GOOS), might provide the value you’re looking for.

| More on:
A stock price graph showing declines

Image source: Getty Images.

Hi there, Fools. I’m back to call attention to three stocks trading near their 52-week lows. Why? Because the biggest market riches are made by buying quality companies

This week’s trio of contrarian stocks is down an average of 26% over the past year. So, if you were to spread all three in a $25,000 TFSA account, a simple bounce-back to 2018 levels would yield roughly $6,500 in profits. Not too shabby.

Let’s get to it.

What’s good for the goose

Leading off our list is winter jacket specialist Canada Goose Holdings (TSX:GOOS)(NYSE:GOOS), whose shares are down 17% over the past year and trading near its 52-week lows of $44.65.

The stock was hammered last week after management lowered its full-year guidance, saying they now expect 2020 revenue growth of at least 20%. That’s well below the analyst consensus of 26%. On the bright side, Q4 EPS topped estimates by $0.05 while revenue jumped 25% to $156.2 million.

“Our business and our people have never been stronger,” said President and CEO Dani Reiss. “I believe that we are still just scratching the surface of our long-term potential as we continue to define performance luxury globally.”

After the plunge, Canada Goose now sports a multi-year low forward P/E of 27.

Flat tire

Next up on our list is retail giant Canadian Tire (TSX:CTC.A), which is down 10% over the past year and trades near its 52-week lows of $133.56.

Lower shipments and lower-than-expected growth have weighed on the company in recent months, taking the share price down along with it. With that said, Canadian Tire’s fundamentals have held up well over the past year.

In the most recent quarter, same-store sales increased 6.1% — the 20th straight quarter of growth — while financial services revenue grew an impressive 9.3%.

“Ending our winter season with exceptional sales performance positions us well as we enter our second-largest quarter of the year,” said President and CEO Stephen Wetmore.

Canadian Tire shares currently have a P/E of 21, well below its five-year average.

Lumber lull

Rounding out our list is timber company West Fraser Timber (TSX:WFT), whose shares are down 43% over the past year and trade near their 52-week lows of $52.

The stock has been walloped on the weakness in lumber prices as well as overall economic uncertainty. In the most recent quarter, sales dipped to $1.2 billion while management permanently reduced B.C. production by 300 board feet annually.

On the bullish side, the company reinvested $108 million through capital expenditures while the U.S. housing outlook seems positive.

“Several of the fundamental factors for U.S. housing demand including mortgage rates and applications, housing permits, as well as employment and job gains have been showing positive signs early in 2019,” wrote the company.

West Fraser trades at a cheapish P/E of 6.5.

The bottom line

There you have it, Fools: three contrarian stocks worth checking out.

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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned.   

More on Investing

Payday ringed on a calendar
Dividend Stocks

3 Dividend Stocks That Pay Me More Than $54.57 Per Month

These three dividend stocks have done me well over the years, so let's look at how much I've gotten in…

Read more »

Golden crown on a red velvet background
Dividend Stocks

Dividend Royalty: 3 Fabulous Stocks to Buy Now for Decades of Passive Income

Rogers Communications stock and Canadian Natural Resources stock could pay you dividends for decades to come.

Read more »

stock analysis
Investing

“GARP” Investing: 3 Can’t-Miss Stocks to Buy Now

goeasy (TSX:GSY) and other low-cost growth stocks could make your portfolio a market beater over the long run!

Read more »

calculate and analyze stock
Investing

My Take: The Best TSX Stock to Buy With $1,000 in March 2024

Here's why Restaurant Brands (TSX:QSR) remains a top TSX stock long-term investors should buy right now.

Read more »

Dividend Stocks

The Top Canadian REITs to Buy in April 2024

For growth and dividends this April, look to these two REITs that have quite the promising present as well as…

Read more »

Woman has an idea
Tech Stocks

Prediction: 1 Stock That Could Trounce the Market 

The TSX has been favouring tech stocks, but not this one. However, it has the potential to trounce the market…

Read more »

Canadian Dollars
Stock Market

Where to Invest $5,000 in April 2024

Do you have some extra cash to spare? Here are five companies to invest $5,000 in next month.

Read more »

Plane on runway, aircraft
Stocks for Beginners

Up 53% From its 52-Week Low, Is Cargojet Stock Still a Buy?

Cargojet (TSX:CJT) stock is up a whopping 53%, nearing closer to 52-week highs from 52-week lows, so what's next for…

Read more »