The S&P/TSX Composite Index rose 65 points to close out the week on May 24. It was a solid finish to a turbulent week, as rising trade tensions between the United States and China wreaked havoc on global markets. Energy stocks were hit particularly hard, as the spot price of oil fell sharply in the latter half of the week.
Today, we are going to look at three stocks that hit 52-week lows over the past week of trading. Should investors consider buying the dip in any of these stocks today? Let’s dive in.
Kinder Morgan Canada (TSX:KML)
Kinder Morgan Canada fell to a 52-week low of $11.61 in trading this week. Shares are down 22.1% over the past month. The company released its first-quarter 2019 results back in April.
Kinder Morgan Canada announced that it would undergo a strategic review after the Trans Mountain sale. In early May, the company elected to continue as a standalone entity. It highlighted its infrastructure operations and stable cash flows, which could also make it an attractive acquisition target going forward. Kinder Morgan Canada announced plans to invest $32 million in expansion projects.
Shares of Kinder Morgan have spent much of the year in technically oversold territory. The stock had an RSI of 12 as of close on May 24, which suggests that its dip is still overdone. In the first quarter, the company announced a quarterly dividend of $0.1625 per share. This represents a 5.5% yield.
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Yamana Gold (TSX:YRI)(NYSE:AUY)
Yamana Gold stock hit a 52-week low of $2.46 in trading on May 24. Shares have dropped 17.4% over the past month. Slumping gold prices in April and May have hurt gold miners to start the spring. Increased geopolitical risk from trade tensions are a reason to be bullish on gold going forward, as is an increasingly dovish U.S. Federal Reserve.
This has been an unfortunate string of weeks for Yamana after a decent first-quarter 2019 report. It posted a net loss of $4.1 million compared to a $160.1 million loss in the prior year. Gold production rose to 235,958 ounces compared to 199,555 in Q1 2018. Silver production soared to 3.02 million ounces over 899,261 last year.
Many of the top Canadian gold miners continue to frustrate in this sector. There are bullish signs for gold going forward, but this a sector for patient investors. Yamana Gold had an RSI of 27 as of close on May 24, which puts it in technically oversold territory.
Husky Energy (TSX:HSE)
Shares of Husky Energy sunk to a 52-week low of $12.42 in trading last week. The stock is down 10.9% in 2019 as of close on May 24. Shares are down 31% from the prior year.
Husky had a nice run up in the late spring and summer of 2018, but the stock market havoc in final months of the year took its toll. The company had a positive first quarter 2019, as it posted a $328 million profit. This was up from $248 million in the prior year. However, the mandated Alberta government production cuts did cause a dip in its year-over-year production output. The company plans to resume full production at its White Rose oil field.
Husky boasts a forward P/E of 10, which makes it an attractive value pick relative to its industry. Shares had an RSI of 29 as of close on May 24, which puts the stock in technically oversold territory. To top it off, Husky offers a quarterly dividend of $0.125 per share, which represents a 3.9% yield. Husky is the most attractive buy-low candidate of the three equities we have covered today.
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 Ambrose O'Callaghan has no position in any of the stocks mentioned.