A stock hitting a new 52-week low can mean very different things depending on the company, and depending on the investor looking at this stock.
On one hand, weak earnings or fears of a macroeconomic slowdown on Wall Street could be signs that previous troubles are only the beginning. History is full of examples of traders who thought a stock “looked cheap” and ended up regretting it. In fact, investors have a specific phrase for this kind of risky maneuver: trying to catch a falling knife. As the imagery suggests, one miscalculation can result in some painful consequences.
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At the same time, history also has plenty of examples where fear and pessimism were overblown — and the visionary investors who saw compelling buying opportunities made outsized profits as a result. Many high-quality companies have experienced sharp sell-offs, but after restructurings or economic downturns, they proved earnings slowdowns were only temporary and share prices snapped back quickly.
The challenge, of course, is determining whether a struggling stock is facing temporary headwinds or a more permanent decline after setting new 52-week lows. There’s no single formula that can determine this, but the following seven companies all offer signs of hope that could make them worth a look after recent troubles. Just remember to tread lightly, and always invest with your own personal risk tolerance and financial goals in mind.
| Stock | May 20 closing price | Change from 52-week low* |
| Boston Scientific Corp. (ticker: BSX) | $56.67 | 7.6% |
| General Mills Inc. (GIS) | $33.62 | 2.0% |
| Genuine Parts Co. (GPC) | $94.97 | 2.7% |
| Lennar Corp. (LEN) | $87.31 | 6.1% |
| Lululemon Athletica Inc. (LULU) | $125.19 | 5.1% |
| NRG Energy Inc. (NRG) | $133.98 | 8.3% |
| Nike Inc. (NKE) | $44.19 | 5.5% |
*Based on daily closing prices dating back to May 21, 2025.
Boston Scientific Corp. (ticker: BSX)
Boston Scientific manufactures medical devices for use by healthcare professionals worldwide, including coronary stents, spinal cord stimulators and endoscopy equipment. These specialized items see strong and persistent demand as they help doctors save patients’ lives, and will not see a decline in use even if there are broader headwinds for the U.S. economy. That’s why, unlike some of the other stocks on this list, BSX is plotting growth in both revenue and earnings in fiscal year 2026 and 2027. Of course, this growth is lower than expected, and that’s what’s been weighing on shares. But now that the stock is trading about 50% lower than where it was a year ago, the negativity could already be fully priced into this healthcare stock.
General Mills Inc. (GIS)
General Mills is a grocery store giant, with products that include Cheerios, Betty Crocker cake mixes and Nature Valley granola bars. It’s also the poster child for an aging brand portfolio that has struggled to keep up with changing consumer tastes and diets, as these legacy brands aren’t exactly on the cutting edge. Still, it’s important to understand that this is a vibrant company even though revenue and earnings are challenged. Case in point: The company is forecasting $3.42 in earnings per share this year, but its current dividend is just $2.44 — making that income comfortable and sustainable. With operating cash flow of about $3 billion, this is hardly a stock on the verge of insolvency. And should Wall Street roll over, GIS could instead offer a strong value appeal if investors begin to rotate out of riskier growth stocks.
Genuine Parts Co. (GPC)
Genuine Parts is the auto parts giant behind the Napa nameplate, and despite a drop of 50% from its 2023 highs, the company has recently shown strength in its earnings. For fiscal 2025, total sales rose and gross margin improved, with operating cash flow running at about $900 million. What’s more, the company announced a 2026 annualized dividend of $4.25 per share to mark the 70th consecutive year of dividend increases for this income icon. So, why the negativity? Well, that’s in part because of a plan to split into two public companies by Q1 2027, with lingering uncertainty about whether the separated companies will be as strong as a unified Genuine Parts. But now that a lot of negativity is priced in — and, of course, because management still has time to change its mind or offer encouraging details over the next several months — this auto parts stock could be a “buy” at current lows.
Lennar Corp. (LEN)
Homebuilders like Lennar are subject to industry cycles, and there’s ample evidence of current trouble via a 25% drop in profits and revenue that has flatlined year over year. Share prices have been cut in half from their 2024 highs as a result, but history shows that these kinds of deep declines are not permanent. Consider that Lennar is currently trading for less than 70% of sales and slightly below its book value. While things are certain to remain volatile on Wall Street, the company boasts more than $2 billion in cash and a $3 billion credit facility to spin up operations quickly once conditions are favorable. For patient investors who aren’t intimidated by current volatility or the threat of higher rates dampening sales, a homebuilder like LEN could be a big turnaround play over the next year or two.
[Read: 7 Up-and-Coming Stocks to Buy Now]
Lululemon Athletica Inc. (LULU)
Macroeconomic headwinds tend to hit discretionary stocks harder, so it’s no surprise that the $100 leggings from Lululemon have been a harder sell as consumers tighten their belts. However, while earnings have been pressured, Lululemon is still expecting revenue to tick higher in 2026. That signals a strong brand and an energized customer base. What’s more, the stock now boasts a forward price-to-earnings ratio that is barely above 10 — when just a few years ago it was trading for 30x future earnings. Athleisure demand isn’t going anywhere, and being the biggest name in the space, it’s likely that Lululemon will be able to bounce back strongly once current spending pressures fade.
NRG Energy Inc. (NRG)
Normally, utility stocks are among the most solid investments on Wall Street thanks to consistent demand and a highly regulated operating environment that creates wide moats against competition. But NRG just completed a transformative $13 billion acquisition of a power portfolio from LS Power that came with massive debt, and the company now has a debt-to-equity ratio north of 400%. While the deal doubles NRG’s generation capacity by adding 18 natural-gas-fired facilities, and there’s high hope this power will be in strong demand thanks to AI data centers in the future, the structural issues caused by that much debt have weighed heavily on shares. For aggressive investors who can look past the volatility, this may be a utility stock that could snap back dramatically if and when conditions resolve favorably.
Nike Inc. (NKE)
Nike’s profit margins have been under pressure lately, and that’s only the beginning of challenges for this company. Revenue was up just 0.3% year over year in its fiscal Q3 that ended in February, hinting at problems on both the top and bottom lines. That said, Nike undoubtedly has the best brand strength in the entire footwear and athletic apparel marketplace, so it’s unlikely this is a company stuck in a permanent tailspin. If and when broader economic pressures abate, the timing could be right for a massive recovery if current efforts to streamline operations and improve business performance pay off in the coming quarters.
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7 Stocks to Buy Near 52-Week Lows originally appeared on usnews.com
Update 05/21/26: This story was previously published at an earlier date and has been updated with new information.
