Hi again, Fools. I’m back to call attention to three stocks trading at new 52-week lows.
Why? Because the biggest stock market gains 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 Buffet 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 marked-down stocks than in a TFSA account, where all of the upside is tax free.
Let’s get to it.
Low energy
Leading off our list is uranium explorer Energy Fuels (TSX: EFR), which is down 18% over the past year and currently trades near its 52-week lows of $2.47 per share at writing..
The big blow came yesterday when the stock plunged 37% on news that U.S. President Trump will reportedly not support uranium export quotas. According to the Australian Financial Review, Trump is set to reject calls from U.S. uranium miners for a 25% “buy America” domestic quota.
Trump has apparently been dissuaded due to concerns that it would boosts costs for nuclear reactor operators already under pressure from cheaper power sources.
For aggressive traders willing to bet that the report is simply a rumour, now is a great time to jump in. Energy Fuels is off 35% in 2019.
Pour a cold one
Next up, we have beverage giant Molson Coors Canada (TSX: TPX.B)(NYSE: TAP), whose shares are down 21% over the past year and currently trade near its 52-week lows of $74.
The stock has been pressured heavily by persistent volume declines, but now might be a good time to jump in. Despite a 4.7% drop in worldwide brand volume in Q1, management still expects full-year underlying free cash flow of roughly $1.4 billion, cost savings of about $700 million, and an EBITDA dividend payout ratio of 20%-25%.
“Across Molson Coors I am pleased with the continuing acceleration of our portfolio premiumization efforts alongside our intensified innovation program,” said CEO Mark Hunter.
Molson shares are down 5% in 2019 and currently offer a solid dividend yield of 2.9%.
Methodical approach
Rounding out our list is methanol producer Methanex (TSX: MX)(Nasdaq: MEOH), which has been walloped 41% over the past year and currently trades near 52-week lows of $40.43 per share at writing.
Weak methanol prices have weighed on the stock, giving investors a possible dividend opportunity to pounce on. While earnings were down in the most recent quarter, the company still posted operating cash flow of $213 million as sales of its Methanex-produced methanol improved 2%.
“We believe we are well positioned to meet our financial commitments, pursue our growth opportunities and deliver on our commitment to return excess cash to shareholders through dividends and share repurchases,” said CEO John Floren.
Methanex shares are down 16% in 2019 and currently offer a healthy dividend yield of 3.2%.
The bottom line
There you have it, Fools: three ice-cold stocks hitting new 52-week lows 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.
