Hi there, Fools. I’m back to call attention to three stocks trading at new 52-week lows. Why? Because the big gains in the stock market 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 Buffett 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.
Uncertainty over the company’s long-term turnaround plans continues to weigh heavily on the stock, but aggressive value hounds might want to pounce. In the most recent quarter, EPS topped estimates by $0.01 as revenue jumped 23%, suggesting that fundamentals remain healthy.
Management also reaffirmed its full-year 2020 view of 23-27% revenue growth and double-digit billings growth.
“We are ahead of our schedule in our Cylance integration, while investing in the right opportunities to drive long-term growth and profitability for BlackBerry,” said Chairman and CEO John Chen.
BlackBerry shares are down 27% over the past three months.
Next up, we have energy giant Imperial Oil (TSX:IMO)(NYSE:IMO), whose shares are down 23% over the past year and trading near 52-week lows of $32.44 per share.
Weak production and slumping oil prices have pressured the stock over the past year, but now might be an opportune time to pounce. In the most recent quarter, Imperial’s EPS of $1.57 topped estimates by $0.82 while revenue also beat expectations.
Management even returned $515 million to shareholders in the form of dividends and share repurchases.
“Given overall financial and operational performance in the first half, and with several of the year’s planned upstream and downstream turnarounds completed, Imperial remains on track to deliver on our commitments for 2019,” said CEO Rich Kruger.
Imperial is down 14% over the past three months.
Hasta la Vista?
Rounding out our list is oil and gas producer NuVista Energy (TSX:NVA), which is down a whopping 74% over the past year and trading at 52-week lows of $2.05 per share.
The stock has been walloped on concerns over its big debt load amid low oil prices, and the pain doesn’t seem to be letting up. Shares fell 13.5% yesterday after NuVista’s EPS missed expectations yet again.
On the bullish side, management remains confident in its long-term plan, giving patient investors something to think about.
“[W]e are pleased to have strong well economics leading to a funded three year plan which delivers clear line of sight to material free funds flow and provides us flexibility to adapt as the market changes,” wrote the company.
NuVista is down 39% over the past three months.
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. The Motley Fool owns shares of BlackBerry and BlackBerry. BlackBerry is a recommendation of Stock Advisor Canada.