Got $5,000? These 5 Promising Stocks Are Trading Near Their 52-Week Lows

Canadians with some holiday cash to spend should look to undervalued promising stocks like Telus Corporation (TSX:T) today.

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The S&P/TSX Composite Index dropped 222 points on Wednesday, December 28. Some of the worst-performing sectors included health care, energy, telecom, and information technology. Today, I want to focus on five promising stocks that are very undervalued after hitting 52-week lows. Let’s see how we can spend $5,000 today!

This green energy dividend beast is deeply discounted right now

Brookfield Renewable Partners (TSX:BEP.UN) is a New York-based limited partnership that owns a portfolio of renewable power-generating facilities primarily in North America, Columbia, Brazil, Europe, India, and China. Shares of this green energy dividend stock have plunged 24% in 2022 as of close on December 28. The stock recently dipped to a 52-week low of $33.79.

Investors should be eager to snatch up shares of this promising stock that offers exposure to the burgeoning renewable energy space. Brookfield delivered funds from operations (FFO) of $780 million, or $1.21 per share — up from $720 million, or $1.12 per share, for the first nine months of fiscal 2021.

The Relative Strength Index (RSI) is a technical indicator that measures the price momentum of a given security. This stock last had an RSI of 24, which puts Brookfield in technically oversold territory. Better yet, it offers a quarterly dividend of $0.32 per share. That represents a strong 5.1% yield.

Don’t sleep on this dirt-cheap telecom in late December

Telus (TSX:T) is a Vancouver-based company that provides a range of telecommunications and information technology products and services in Canada. Its shares have dropped 12% so far in 2022.

In the third quarter (Q3) of 2022, the company posted operating revenues growth of 9.3% to $4.64 billion. Meanwhile, adjusted net income jumped 20% to $471 million, or 17% on a per-share basis, to $0.34. This promising stock possesses a favourable price-to-earnings (P/E) ratio of 18. Moreover, it offers a quarterly dividend of $0.351 per share, representing a 5.3% yield.

Here’s an undervalued bank stock to snatch up for $1,000 today

Canadian Imperial Bank of Commerce (TSX:CM) is the third promising stock I’d look to snatch up today. CIBC is the fifth largest of the Big Six Canadian bank stocks, but it is still a powerhouse in the financial space. Shares of this bank stock have plunged 28% so far this year.

This bank unveiled its final batch of 2022 earnings on December 1. Total revenues rose 6% year over year to $5.38 billion while adjusted net income declined 17% to $1.30 billion, or $1.39 per share. Shares of this promising stock possess a very attractive P/E ratio of eight. Meanwhile, CIBC offers a quarterly dividend of $0.85 per share, which represents a tasty 6.3% yield.

I’m not counting out Cineplex stock this decade

Cineplex (TSX:CGX) is a Toronto-based entertainment and media company that boasts a monopoly in the movie theatre space in Canada. Its shares have plummeted 43% in 2022.

The company released its Q3 fiscal 2022 earnings on November 10. It delivered total revenue growth of 35% to $339 million. Meanwhile, theatre attendance surged 193% to 11 million. This promising stock last hit a 52-week low of $7.45. Cineplex last had an RSI of 18, putting it well in technically oversold territory.

One more promising stock I’d consider snatching up before the new year

Lightspeed Commerce (TSX:LSPD) is the fifth and final undervalued stock I’d look to snatch up in late December. Its shares have dropped 65% in the year-to-date period. This promising stock hit a 52-week low of $17.35.

In Q2 fiscal 2023, this company achieved revenue growth of 38% to $183 million. Meanwhile, it posted diluted net earnings of $79.9 million, or $0.53 per share — up from $59.1 million, or $0.43 per share, in the previous year. This promising stock last had an RSI of 28, which puts Lightspeed in technically oversold territory.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners, Cineplex, Lightspeed Commerce, and TELUS. The Motley Fool has a disclosure policy.

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