Hi there, Fools. I’m back to call attention to three stocks at new 52-week lows. Why? Because the big gains in the stock market are made by buying attractive companies
- during times of maximum investor pessimism; 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.”
Let’s get to it.
Leading off our list is copper miner Teck Resources (TSX:TECK.B)(NYSE:TECK), which is down a whopping 42% over the past year and currently trades near 52-week lows of $17.13 per share.
Teck has slumped on weak copper and coal prices as well as uncertainty over its Frontier oil sands project, but now might be a perfect opportunity to pounce. In the most recent quarter, EPS of $0.72 topped estimates, as revenue clocked in at $3.04 billion.
“[W]e are focusing our attention on our RACE21 program to improve efficiency and productivity across our business, the development of the QB2 project, which is a key component of Teck’s future growth, and the execution of our priority project at Neptune,” said CEO Don Lindsay.
Teck shares now trade at a cheapish forward P/E of seven.
Next up, we have oil and gas explorer Enerplus (TSX:ERF), whose shares are off about 40% over the past year and currently trade near 52-week lows of $6.59 per share.
Declining revenue, weak energy prices, and production concerns continue to weigh heavily on the stock. In the most recent quarter, EPS came in at $0.28 as revenue declined 15% to $319 million.
On the bullish side, Enerplus generated operating cash flow of $159.8 million, while its financial position continues to improve.
“In the third quarter of 2019, we continued to build on our track record of strong execution and financial discipline,” said CEO Ian Dundas. “Our 2019 plan remains on track to deliver 9-10% annual liquids production growth and 15% on a per-share basis, while maintaining our low financial leverage.”
Enerplus currently offers a dividend yield of 1.8%.
The stock has slumped primarily due to China worries and valuation concerns, providing value-oriented Fools with a juicy buying opportunity. In the most recent quarter, for example, adjusted EPS jumped 24%, as revenue increased 28% to $294 million.
Moreover, revenue nearly doubled in Asia, suggesting that Bay Street’s concerns are overblown.
“Our performance in the first half reflects the strength of our brand and power of our unique business model,” said CEO Dani Reiss. “Through global brand equity, selective distribution and operational flexibility, we delivered another set of strong results despite continuing external uncertainties.”
Canada Goose trades at a forward P/E of 50.
The bottom line
There you have it, Fools: three ice-cold stocks 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.
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 and recommends Canada Goose Holdings.