In this article, we discuss 10 52-week low stocks to buy now. If you want to see more stocks in this selection, check out 5 52-Week Low Stocks to Buy Now.
The 52-week low for a stock reflects the least closing price the security has traded at over a 52-week timeline. Many investors seek out stocks that have reached their lowest price points since they follow the ‘buy low, sell high’ strategy in order to profit from share price appreciation. It is important to gauge via proper research whether the stocks have hit their 52-week lows due to their cyclical nature or if these companies have truly lost value irreparably.
While some traders purchase these stocks when they hit significant lows and hope for positive catalysts to boost prices in the future, others open short positions in these companies and expect the securities to bottom out further. Investors often purchase 52-week low stocks to engage in short-term trading strategies such as day trading or swing trading, which enables them to profit from market irregularities rather than depending on long-term capital gains.
On August 1, the stock market started tumbling once again, despite some gains in July. Following a three-day winning streak, the S&P 500 was down 0.28% on August 1, the Nasdaq Composite fell 0.18%, and the Dow Jones Industrial Average slipped 0.14%. The oil prices also dropped, with Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and Devon Energy Corporation (NYSE:DVN) entering August in the red.
Image by Sergei Tokmakov Terms.Law from Pixabay
Our Methodology
We selected stocks that hit their 52-week low share prices on August 1. However, analysts remain optimistic that these companies have the market positioning, positive catalysts, and competitive advantages to perform well in the future. We have arranged this list according to the hedge fund sentiment around the securities as of Q1 2022, which was assessed using Insider Monkey’s database of 900+ elite hedge funds.
52-Week Low Stocks to Buy Now
10. Zhihu Inc. (NYSE:ZH)
Number of Hedge Fund Holders: 5
52-Week Low as of August 1: $1.20
Zhihu Inc. (NYSE:ZH) is a Beijing-based company that operates a digital content community in China. Its platform allows people to find inspiration, make decisions, and enjoy online. The company also specializes in technology, business support, and consulting services. Zhihu Inc. (NYSE:ZH)’s Q1 revenue climbed 55.5% year over year to $117.2 million, beating Wall Street estimates by $10.93 million. Zhihu Inc. (NYSE:ZH) stock hit a 52-week low of $1.20 on August 1.
On July 5, Goldman Sachs analyst Lincoln Kong reiterated a Neutral rating on Zhihu Inc. (NYSE:ZH) and lowered the firm’s price target on the stock to $2.60 from $4.70. He predicted that Zhihu Inc. (NYSE:ZH), which is the seventh-largest social media platform in China in terms of traffic, will continue to be a market share gainer within the digital advertising sector. However, the analyst believes that solid execution is needed to surpass “multiple hurdles” and a breakeven timeline that might be obstructed by higher operating expenses.
According to Insider Monkey’s data, Zhihu Inc. (NYSE:ZH) was part of 5 public hedge fund portfolios at the end of the first quarter of 2022, with collective stakes worth $51.3 million, compared to 13 the prior quarter worth $150.3 million. Jonathan Guo’s Yiheng Capital is the biggest stakeholder of the company, boosting its position by 405% in Q1 2022. The fund owned 18.3 million shares of Zhihu Inc. (NYSE:ZH) valued at $44.5 million.
Chinese tech stocks like Zhihu Inc. (NYSE:ZH) have faced a bloodbath in 2022 as investors flee growth stocks. That’s why only 5 of the 900 funds we track have stakes in this company. Hedge funds are instead loading up on defensive and dividend players like Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and Devon Energy Corporation (NYSE:DVN).
9. Exela Technologies, Inc. (NASDAQ:XELA)
Number of Hedge Fund Holders: 7
52-Week Low as of August 1: $1.325
Exela Technologies, Inc. (NASDAQ:XELA) is headquartered in Irving, Texas, and the company specializes in transaction processing solutions, enterprise information management, document management, and digital business process services. Exela Technologies, Inc. (NASDAQ:XELA) operates through three segments – Information & Transaction Processing Solutions, Healthcare Solutions, and Legal & Loss Prevention Services. On July 13, Exela Technologies, Inc. (NASDAQ:XELA) stock gained around 22% after the company confirmed that it had received an acquisition proposal of $200 million for one of its business units. The stock has reached a 52-week low of $1.32 as of August 1.
On May 12, B. Riley analyst Zach Cummins reiterated a Neutral rating on Exela Technologies, Inc. (NASDAQ:XELA) and lowered the firm’s price target on the shares to $0.35 from $0.55 following the Q1 results. The company’s revenue has shown signs of stabilization and the improving renewal rate, paired with robust contracting activity signals that Exela Technologies, Inc. (NASDAQ:XELA) is well positioned to return to growth in the second half of 2022.
Among the hedge funds tracked by Insider Monkey, Ken Griffin’s Citadel Investment Group held a leading stake in Exela Technologies, Inc. (NASDAQ:XELA), comprising 1.15 million shares worth $481,000. Overall, 7 hedge funds were bullish on Exela Technologies, Inc. (NASDAQ:XELA) at the end of March 2022, compared to 11 funds in the preceding quarter.
8. I-Mab (NASDAQ:IMAB)
Number of Hedge Fund Holders: 14
52-Week Low as of August 1: $8.54
I-Mab (NASDAQ:IMAB) is a Shanghai-based clinical stage biopharmaceutical company that develops and markets biologics for cancer and autoimmune disorders. On July 22, I-Mab (NASDAQ:IMAB) reported that the first patient in China had been treated with TJ-CD4B, also known as ABL111, in a Phase 1 international multi-center clinical trial for patients diagnosed with solid tumors. I-Mab (NASDAQ:IMAB) also announced in mid-June that two of the assets it has licensed from MorphoSys AG (NASDAQ:MOR), felzartamab and TJ210, are gaining recognition globally through new license agreements.
On May 31, H.C. Wainwright analyst Andrew Fein reiterated a Buy rating on I-Mab (NASDAQ:IMAB) but lowered the price target on the shares to $70 from $80. The analyst said the uiledlimab update is a “step in the right direction, but a leap may be needed”. Similarly, on May 27, Piper Sandler analyst Joseph Catanzaro reiterated an Overweight rating on I-Mab (NASDAQ:IMAB) and lowered the price target on the stock to $35 from $80. While the analyst’s investment thesis did not change, he acknowledged that “biotech valuations have re-rated,” and lowered the price estimates for companies in his coverage to “reflect this recent pullback and current market conditions”.
According to Insider Monkey’s data, 14 hedge funds were bullish on I-Mab (NASDAQ:IMAB) at the conclusion of Q1 2022, compared to 19 funds in the earlier quarter. Billionaire Lei Zhang’s Hillhouse Capital Management is the largest position holder in the company, with 7.18 million shares worth $116.6 million.
7. Weibo Corporation (NASDAQ:WB)
Number of Hedge Fund Holders: 14
52-Week Low as of August 1: $18.13
Weibo Corporation (NASDAQ:WB) is a Beijing-based company that operates a social media platform for content creation and content sharing in China. It operates through two segments – Advertising and Marketing Services, and Value-Added Services. As of June 2022, Weibo Corporation (NASDAQ:WB)’s user base exceeded 500 million and the company has established itself as a solid regional brand, and it appears well-positioned to gain a sizable share of the Chinese internet and communications market. As of August 1, the stock reached a 52-week low of $18.13.
Benchmark analyst Fawne Jiang on June 1 reiterated a Buy recommendation on Weibo Corporation (NASDAQ:WB) but lowered the price target on shares to $39 from $56. While Weibo Corporation (NASDAQ:WB) posted “better-than-feared” Q1 results, the company reported a Q2 outlook that was below expectations due to an ad growth setback amid the COVID lockdowns, the analyst told investors. A surge in content costs, paired with the reversal of one-time cost benefits, could further challenge margins in FY22, but she is forecasting ad improvement in the second half and the next fiscal year, the analyst added.
Among the hedge funds tracked by Insider Monkey, 14 funds reported long positions in Weibo Corporation (NASDAQ:WB) at the end of Q1 2022, with collective stakes worth $87 million, compared to 13 funds in the prior quarter worth $122.3 million. Paul Marshall and Ian Wace’s Marshall Wace LLP is a prominent stakeholder of the company, with 709,186 shares valued at $17.3 million.
6. Latham Group, Inc. (NASDAQ:SWIM)
Number of Hedge Fund Holders: 15
52-Week Low as of August 1: $5.34
Latham Group, Inc. (NASDAQ:SWIM) is a New York-based company that designs and installs in-ground residential swimming pools, pool covers, and pool liners in North America, Australia, and New Zealand. The company on May 12 authorized a share repurchase program where it can buy back up to $100 million of its common stock over the next three years. As of August 1, the stock had plummeted about 79% year to date to reach a 52-week low of $5.34.
On July 14, Barclays analyst Matthew Bouley reaffirmed an Overweight rating on Latham Group, Inc. (NASDAQ:SWIM) and lowered the price target on the shares to $11 from $19. The analyst predicts this earnings season to be the “start of the necessary cycle of estimate reductions” for the home building products sector that will “eventually herald a bottoming process and multiple recovery”. He remains “incrementally selective” on building products.
Among the hedge funds tracked by Insider Monkey, Richard S. Meisenberg’s ACK Asset Management is the leading position holder in Latham Group, Inc. (NASDAQ:SWIM), with 1.90 million shares worth $25.2 million. Overall, 15 hedge funds were bullish on the stock at the end of Q1 2022, up from 9 funds in the prior quarter.
Like Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and Devon Energy Corporation (NYSE:DVN), Latham Group, Inc. (NASDAQ:SWIM) traded lower entering August 2022.
Here is what Baron Funds has to say about Latham Group, Inc. (NASDAQ:SWIM) in its Q2 2021 investor letter:
“In the most recent quarter, we participated in the IPO of Latham Group, Inc., the largest manufacturer of fabricated pools globally. We believe this company is well positioned to benefit from several multi-year tailwinds including anticipated strength in the U.S. housing market, a cyclical recovery in new pool construction, and a secular growth opportunity as the company’s fiberglass pools offer several advantages versus most other pool options (concrete and vinyl, for example) including lower costs and maintenance, faster build times, and higher manufacturer profitability.”
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Disclosure: None. 10 52-Week Low Stocks to Buy Now is originally published on Insider Monkey.
