In a great year for stocks, it’s easy to get caught up in the rush and pile into the latest fashionable trades. But what goes up often comes back down, and it can be quite costly to buy a stock that has already jumped 100% or 200% and then comes crashing back to earth.
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There’s no surefire way to invest profitably, but the old notion of buying low and selling high still has merit. Yes, some dogs are doomed to underperform. But there are also plenty of big rebound stories each year that deliver gains that are almost as impressive as the profits provided by the biggest growth stocks. Just look at some of the high fliers this year, like Carnival Corp. (ticker: CCL), that were once thought down for the count.
If you’re looking for a bargain investment instead of a red-hot company that may overheat soon, the following seven stocks all trade at or near their 52-week lows but still have some good things going for them that hint a potential rebound is possible:
| Stock | Percentage Above 52-week Low (as of Aug. 7 close) |
| Crown Castle Inc. (CCI) | 1.6% |
| Dominion Energy Inc. (D) | 1.7% |
| The Estée Lauder Cos. Inc. (EL) | 2.3% |
| General Mills Inc. (GIS) | 2.5% |
| Pfizer Inc. (PFE) | 2.9% |
| SolarEdge Technologies Inc. (SEDG) | 2.6% |
| The Walt Disney Co. (DIS) | 3.2% |
Crown Castle Inc. (CCI)
Structured as a real estate investment trust, or REIT, Crown Castle is among many high-yielding stocks that have been passed over by investors in the “risk on” environment of 2023. When the S&P 500 index is up 17% on the year, it’s hard to settle for sleepy dividend stocks. And with 10-year Treasury bonds now yielding more than 4%, it’s getting more difficult to justify the risk of stocks over the security of bonds if you’re just investing for income. But CCI is unique in that it isn’t a commercial real estate or residential housing REIT. Rather, it operates telecom properties that include cell phone towers and fiber optic cables. This gives it a unique angle with growth potential in the long term even if the short-term headwinds have been significant.
Dominion Energy Inc. (D)
Utility stocks have generally had a rough road in 2023, as the value proposition of the sector has taken a hit. After all, what were once considered high-yield and low-risk dividend stocks now look like laggards as growth stocks are producing monster gains and interest rates have pushed bond yields higher. But while utility Dominion Energy is down, it is far from out. It just topped earnings estimates in early August, it continues to forge into alternative energy like wind farms, and it just saw iconic investor Warren Buffett boost his investment firm’s stake in D stock. While near 52-week lows now, this $40 billion utility is a hard stock to ignore for the long term.
[READ: How to Pick Stocks: 7 Things All Beginner Investors Should Know]
The Estée Lauder Cos. Inc. (EL)
Though cosmetics giant Estee Lauder is trading at or near 52-week lows, it’s important to note that Wall Street stock analysts are quite bullish on the stock. For example, consensus price targets for EL stock are just over $225 a share — almost 35% higher than current pricing. That’s in part because while anemic tourist travel from China to the West (which suppresses their travel retail segment) has been holding back sales in the last year or so, things are looking up going forward. And if the recent release of pent-up consumer demand in the U.S. is any proof, that could result in much more than just a mild rebound for EL down the road as the spending floodgates reopen. Competition remains a concern, but it’s hard to argue that this $60 billion company will just fade away quietly rather than use its world-class brand to claw its way back to the top.
General Mills Inc. (GIS)
Cereal and packaged foods giant General Mills is a “risk off” investment that has been left behind thanks to its generally sleepy operations and some specific fears that its brand portfolio may not quite be what it once was. Back in 2018, GIS inked an $8 billion deal to acquire Blue Buffalo and forge its way into the pet food space. That drove up debt significantly, but the company has been shrewd about paying down those debts lately even as it has fully integrated the firm into its operations for cost savings. Now, GIS may be ready to make another deal that could revitalize the company and kick-start sales growth. In the meantime, its strong brands like Pillsbury, Betty Crocker and Cheerios ensure the stock has staying power as it figures things out.
Pfizer Inc. (PFE)
A $200 billion mainstay of the pharmaceutical industry, Pfizer is one of the biggest and most respected drugmakers on the planet. Unfortunately, it became a victim of its success thanks to its dominant vaccine and a COVID-related boom that has since dissipated. That has caused some investors to abandon PFE for what they see as greener pastures, but keep in mind that this company still has plenty of potential drug approvals in the works as well as a strong balance sheet that could drive growth via acquisitions in the years ahead. With shares down about 40% from their late 2021 peak, this stock could be a bargain around its 52-week low.
SolarEdge Technologies Inc. (SEDG)
SolarEdge has been cut in half from its 52-week high for share prices and trades near its current 52-week low. The most recent troubles have come in part thanks to a downgrade to its corporate credit rating. That downgrade comes at a particularly inopportune time because interest rates have risen, and costs for less attractive borrowers are now significantly higher than in previous years. But despite those headwinds, this company remains a leader in solar energy systems, with a market value of about $10 billion even after these declines. The company had previously projected more than 20% revenue growth both this fiscal year and next, meaning the future of SEDG is bright even if the short-term outlook is cloudy.
The Walt Disney Co. (DIS)
Even if you’re not an avid investor, you probably know some of Disney’s travails this year, including a public spat with Florida over taxes and oversight, as well as the ousting of its CEO thanks to core corporate concerns. Now that the firm is under the stewardship of chief executive Bob Iger again, it has gone through a serious round of cost cutting and restructuring to better meet future opportunities and avoid costly flops like this year’s expensive but lackluster “Ant Man” flick. But while structural streaming challenges are causing short-term profitability concerns, the bottom line is that DIS stock still commands one of the most impressive brand portfolios on earth. That may make it a bargain buy for those who are patient enough to look past the last year or two of troubles.
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7 Stocks to Buy Near 52-Week Lows originally appeared on usnews.com
Update 08/08/23: This story was previously published at an earlier date and has been updated with new information.
