3 Millionaire-Maker Stocks Hitting New 52-Week Lows

Hunting for a bargain? This group of beaten-down stocks, including Lucara Diamond (TSX:LUC), might provide the value you’re looking for.

| More on:
young woman celebrating a victory while working with mobile phone in the office

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

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

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.”

Let’s get to it.

Medical emergency

Leading off our list is specialty hospital operator Medical Facilities (TSX:DR), which is down 62% in 2019 and currently trades near 52-week lows of $5.53 per share.

The stock has taken a beating over the past year on a string of disappointing quarters, and things only seem to be getting worse. On Thursday, the shares plummeted 27% after Medical Facilities posted Q3 EPS of -$0.28 and a revenue decline of 2%. More importantly, management cut its quarterly dividend 75% to $0.07 per share.

“Although the fourth quarter is typically our strongest quarter, the board of directors, after deliberate and thoughtful consideration, has concluded that a reduction in the distribution is prudent and in the best long-term interest of Medical Facilities,” said CEO Robert Horrar.

The stock currently trades at a forward P/E of 11.

Diamond in the rough

Next up, we have diamond miner Lucara Diamond (TSX:LUC), whose shares are down a whopping 59% over the past year and trade near 52-week lows of $0.90 per share.

Excess supply and weak demand have crushed the stock price, but now might be an opportune time for aggressive Fools to pounce. In the most recent quarter, EPS clocked in at -$0.01 as revenue of $45.3 million topped estimates by $5 million.

Moreover, management met or exceeded all mining and processing activities during the quarter.

“Lucara’s short-term view is that the market is now stabilizing,” said CEO Eira Thomas. “Longer term, the fundamentals are expected to strengthen in line with supply shortfalls from mature depleting mines in Australia and Canada.”

Lucara shares trade at a forward P/E of 15.

Faulty wire

Rounding out our list is wireless communications technologist Sierra Wireless (TSX:SW)(NASDAQ:SWIR), which is down 54% over the past year and trades near 52-week lows of $8.44 per share.

Sierra’s transformation to an integrated IoT (Internet of Things) solutions company continues to be a bumpy one. In the company’s Q3 results earlier this week, Sierra posted a net loss of $20 million, as revenue declined 14% to $174 million.

On the bullish side, the company managed a record quarter in new recurring services wins, suggesting that management’s initiatives are beginning to gain traction.

“We continue to make strong progress on our transformation to an integrated IoT Solutions company,” said CEO Kent Thexton. “In addition, we are continuing to drive greater efficiencies in our business under our two-year cost-reduction program.”

Sierra shares trade at a forward P/E of 11.3.

The bottom line

There you have it, Fools: three ice-cold stocks trading near 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.

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.

Brian Pacampara owns no position in any of the companies mentioned. David Gardner owns shares of Sierra Wireless. The Motley Fool owns shares of and recommends Sierra Wireless. The Motley Fool owns shares of MEDICAL FACILITIES CORP.

More on Investing

Electricity high voltage pole and sky
Dividend Stocks

2 High-Dividend TSX Utilities Stocks to Buy Today

The TSX utility sector has some great high-yield stocks to buy.

Read more »

A close up image of Canadian $20 Dollar bills
Investing

Canadians: A Top Passive Investment for Big Passive Income

BMO Canadian High Dividend Covered Call ETF (TSX:ZWC) is a top passive-income play for Canadians to buy on recent weakness.

Read more »

Retirement plan
Dividend Stocks

Retirement Planning: Now Is the Time to Buy Dividend Stocks

2022 could be a great time to buy quality dividend stocks at attractive discounts. Prioritize your capital allocation now.

Read more »

Payday ringed on a calendar
Dividend Stocks

How to Convert $500 Monthly Investment Into $200 Monthly Income

If you want the stock market to give you regular monthly income, you have to invest in the stock market…

Read more »

falling red arrow and lifting
Investing

RRSP Investors: 3 Dividend Stocks to Buy on the Dip

Inflation has delayed retirement for Canadians. RRSP investors should buy cheap dividend stocks like Fortis Inc. (TSX:FTS)(NYSE:FTS).

Read more »

Growth from coins
Tech Stocks

Got $1,000? Buy These 3 Under-$20 Growth Stocks to Earn Higher Returns

These under-$20 growth stocks can deliver solid returns in the long run.

Read more »

worry concern
Dividend Stocks

3 Ultra-Safe Dividend Stocks for Jittery Investors

Motley Fool investors nervous about the market downturn should consider these ultra-safe dividend stocks that keep paying passive income no…

Read more »

Economic Turbulence
Cryptocurrency

The TSX’s 1st Crypto ETF Lost $500 Million in 1 Day

The TSX’s first crypto ETF lost $500 million is one day and is down nearly 58% year to date.

Read more »