Hello again, Fools. I’m back to call attention to three stocks trading at new 52-week lows.
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 bargain stocks than in a TFSA account, where all of the upside is tax free.
Let’s get to it.
Make a U-turn
Slumping uranium prices have weighed on the stock, but now might be an opportune time to jump in. While Cameco posted a loss of $0.04 per share in its recent Q2 results, revenue improved 17% to $388 million.
Moreover, management remains confident about the uranium market long term.
“The long-term price will eventually need to transition to one that will incentivize existing tier-one production to restart and ramp up to full capacity to satisfy that growing demand, with the spot price then reflecting a discount to the long-term price,” said CEO Tim Gitzel.
Cameco shares are off 25% so far in 2019.
Stars has been walloped on dilution and debt concerns following its expensive purchase of Sky Betting & Gaming, providing value hounds with a possible deep discount opportunity.
Currently, the stock trades at a cheapish forward P/E of 9.2. Despite missing on its Q1 earnings, revenue spiked 48% to $580.4 million while operating cash flow clocked in at $110.4 million.
“As we look at the remainder of 2019, we see opportunities for improved revenue growth, with a deep pipeline of new products, content and offers, leveraging our talent and skills across segments,” said CEO Rafi Ashkenazi.
Stars is down 10% in 2019.
Rounding out our list is industrial products company Horizon North Logistics (TSX:HNL), whose shares are down 48% over the past year and trading near 52-week lows of $1.26.
A challenging industrial services market with respect to the energy sector continues to weigh heavily on Horizon’s fundamentals.
In the most recent quarter, Horizon lost $10.6 million even as revenue improved 12%. Moreover, the company’s industrial business posted EBITDAS — a key cash flow metric — of just $0.5 million.
On the bullish side, the stock now trades at a forward P/E of about 10.8 and offers a particularly juicy dividend yield of 5%.
Horizon shares are down 27% so far in 2019.
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.
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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.