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

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

Canadian flag
Investing

1 Magnificent Canadian Stock Down 4 Percent to Buy and Hold Forever

Here's one magnificent Canadian stock long-term investors may want to add, despite the company being near its all-time high.

Read more »

four people hold happy emoji masks
Investing

Why Canadian Investors Should Consider Investing in U.S. Stocks

U.S. lender Oaktree Specialty Lending (NASDAQ:OCSL) has an even higher yield than Toronto-Dominion Bank (TSX:TD).

Read more »

consider the options
Dividend Stocks

Is TD Bank the Best Dividend Stock for You?

Toronto-Dominion Bank (TSX:TD) has a high dividend yield but is embroiled in a serious money-laundering scandal.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

How to Use Your TFSA to Earn $6,000 Per Year in Passive Income

Hint: You'll need this Hamilton covered call ETF, which yields over 10%.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Friday, June 21

Overnight weakness in metals prices could pressure TSX mining stocks at the open today.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Investing

TFSA: 2 Canadian Stocks to Buy and Hold for Tax-Free Gains

Here are two TFSA stocks that have excellent capital gains potential as they are leaders in their respective industries.

Read more »

Growth from coins
Dividend Stocks

2 Dividend-Growth Stocks With TSX-Beating Potential That Deserve More Respect

Here are two of the best TSX dividend-growth stocks you can buy today and hold for the next decade.

Read more »

A stock price graph showing declines
Bank Stocks

TD Stock Has Fallen to a Low of $73: Is it Done Dropping?

TD (TSX:TD) is often viewed as a great long-term investment. But given its volatility in recent months, has TD stock…

Read more »