In this article, we will discuss the 15 best 52-week low stocks to buy now. If you want to explore similar stocks, you can also take a look at 5 Best 52-Week Low Stocks To Buy Now.
2022 was terrible for the equities market, as inflation reached new highs and took interest rates with it. The Fed showed no signs of slowing down until the fourth quarter of 2022. 2023 got off to a decent start as the Fed issued a less aggressive rate hike and raised interest rates by 25 basis points at the February meeting. However, inflation is still running at roughly 3 times the target rate of 2%. Economists and analysts are divided on what the Fed will do at the next FOMC meeting in March and what is ahead for the economy.
Evercore ISI Senior Managing Director: “The Downturn Is Closer Than We Thought A Week Ago”
On March 14 senior managing director at Evercore ISI, Julian Emanuel, appeared in an interview on CNBC to discuss the market situation in the aftermath of the SVB crisis. Julian Emanuel said that year-end expectations for interest rates are on a wide spread, between 375 basis points and 525 basis points, and so one cannot predict interest rates with absolute certainty in the current environment. Julian Emanuel said that the Fed funds rate is dependent on economic data, and more importantly, it is dependent on the reaction of the markets to that data. In the case that we end 2023 with a Fed funds rate of 375 basis points, it could be both good or bad for the stock market, said Julian Emanuel. He said that if Fed tightening caused the collapse of SVB, the U.S. might end up in a mild recession. However, in the event of a mild recession, Julian Emanuel thinks that the market will hit a necessary bottom that will create an entry point for investors “that will launch the next bull market phase”. Julian Emanuel reiterated how uncertain and volatile the current market situation is. He also said that before the SVB fallout, his clients were talking about how “the no landing scenario was operative”, but now that does not seem like the case. Here are some comments from Julian Emanuel about what he expects for the markets ahead:
“Part of the endgame is, we do wanna see a enough of a downturn to make stocks attractive, to cause this cathartic moment, where we can reset and multiples can begin expanding as the economic cycle turns. But we’re still a ways from that. However, I would suggest whereas people were thinking this could last into ’24, it does feel like the downturn is closer than we thought a week ago.”
In the current market environment, many stocks have made new lows. However, it can be argued that some of these companies may be presenting attractive buying opportunities for investors. There are companies that have institutional participation and positive analyst sentiment that have crashed to their 52-week lows. However, it is possible that hedge funds either underestimated the risks associated with these companies or are optimistic about their future performance despite the current decline. Analysts who are positive about the companies may be focusing on their potential for long-term growth, rather than short-term challenges. Ultimately, it’s unclear whether these companies are truly the best investment opportunities and so it is important for investors to conduct their own research and due diligence to make informed decisions. Some of the best 52-week low stocks to buy now according to analysts and hedge funds include The Charles Schwab Corporation (NYSE:SCHW), Pfizer Inc. (NYSE:PFE), and Bank of America Corporation (NYSE:BAC).
Photo by Ruben Sukatendel on Unsplash
Our Methodology
To determine the best 52-week low stocks to buy now, we sifted through the 52-week low stocks list compiled by Yahoo Finance. After that, we used Insider Monkey’s proprietary database of over 900 elite hedge funds to get the hedge fund sentiment for each stock. We narrowed down our selection to stocks that are most popular among these institutional investors and have positive analyst sentiment. We have ranked these stocks in ascending order of the number of hedge funds that have positions in them.
15 Best 52-Week Low Stocks To Buy Now
15. Fifth Third Bancorp (NASDAQ:FITB)
Number of Hedge Fund Holders: 40
As of March 14, Fifth Third Bancorp (NASDAQ:FITB) has fallen by 39.72% over the past 12 months and is trading at a PE multiple of 10x. On March 10, Piper Sandler analyst R. Scott Siefers revised his price target on Fifth Third Bancorp (NASDAQ:FITB) to $40 from $43 and maintained an Overweight rating on the shares. Fifth Third Bancorp (NASDAQ:FITB) is one of the best 52-week low stocks to buy now.
At the end of Q4 2022, 40 hedge funds were long Fifth Third Bancorp (NASDAQ:FITB) and disclosed positions worth $617.6 million in the company. This is compared to 35 hedge funds in the preceding quarter with stakes worth $393.5 million. The hedge fund sentiment for the stock is positive.
As of December 31, Ken Griffin’s Citadel Investment Group is the largest investor in Fifth Third Bancorp (NASDAQ:FITB) and has a position worth $215.5 million in the company.
14. First Republic Bank (NYSE:FRC)
Number of Hedge Fund Holders: 40
At the close of the fourth quarter of 2022, First Republic Bank (NYSE:FRC) was spotted on 40 investors’ portfolios that held stakes worth $1.31 billion in the company. This is compared to 39 positions in the previous quarter with stakes worth $1.21 billion.
First Republic Bank (NYSE:FRC) is experiencing huge price swings after the SVB fallout. As of March 14, the stock is down by 68.87% over the past 12 months but has gained 57.19% today. JPMorgan analyst Steven Alexopoulos thinks that First Republic Bank (NYSE:FRC) is experiencing a “dramatic overreaction” and remains Overweight on the stock, as of March 13. First Republic Bank (NYSE:FRC) is one of the best 52-week low stocks to buy according to analysts.
As of December 31, Select Equity Group is the top stockholder in First Republic Bank (NYSE:FRC) and has a position worth $610 million in the company.
Here is what Giverny Capital had to say about First Republic Bank (NYSE:FRC) in its Q4 2022 investor letter:
“First Republic Bank (NYSE:FRC) serves affluent customers in some of the country’s wealthiest areas: the Bay Area, Manhattan and Palm Beach among them. It provides attentive service and takes almost no credit risk on loans. A typical First Republic loan might be for 50% of the purchase price of a luxury home in Silicon Valley to an executive whose net worth is multiples of the value of the home. The bank has more than doubled revenue and net income over the past five years. In 2022, it grew household relationships by 15%, a remarkable number for a bank. But First Republic also got pinched in 2022 by the phenomenon of interest rates rising faster for short-term loans than for long-term loans. This happens because the market expects a recession: it costs more to borrow money for a year than for 10 years. For First Republic, this means it is paying high rates on Certificates of Deposit (CDs) to customers, but then lending that money to long-term borrowers for only a bit more yield. Banks depend on a healthy spread between their cost of deposits and what they earn on loans. Lately, First Republic’s net interest margin has been disappointing. Still, earnings per share grew about 7% in 2022.
The inversion of the yield curve may continue to pinch earnings growth in 2023, but longer-term First Republic continues to attract affluent customers and, as such, to grow low-risk loan volumes. When you don’t have credit losses and you do have steadily growing loan volumes, income should rise over time.
With cash on hand and the proceeds from the sale of ICE in the fourth quarter, we invested more money in existing holdings First Republic Bank, M&T Bank, Carmax, Floor & Décor and SS&C. We ended the year with about 2.5% cash.”
13. Baxter International Inc. (NYSE:BAX)
Number of Hedge Fund Holders: 41
Baxter International Inc. (NYSE:BAX) is a leading global healthcare company that designs products for the treatment of kidney disease, and other chronic medical conditions. The stock has crashed by 49.72% over the past 12 months, as of March 14, and is offering a forward dividend yield of 2.98%.
This February, Barclays analyst Matt Miksic updated his price target on Baxter International Inc. (NYSE:BAX) to $54 from $63 and maintained an Overweight rating on the shares. The stock is placed thirteenth on our list of the best 52-week low stocks to buy now according to analysts and hedge funds.
Baxter International Inc. (NYSE:BAX) was spotted on 41 investors’ portfolios at the end of Q4 2022. These funds held collective positions worth $1.88 billion in the company. As of December 31, Generation Investment Management is the most prominent investor in the company and has disclosed a stake worth $553.8 million.
In addition to The Charles Schwab Corporation (NYSE:SCHW), Pfizer Inc. (NYSE:PFE), and Bank of America Corporation (NYSE:BAC), Baxter International Inc. (NYSE:BAX) has hit a new low and may be presenting an attractive entry point for investors with a long-term time horizon.
12. Dominion Energy Inc. (NYSE:D)
Number of Hedge Fund Holders: 41
At the end of the fourth quarter of 2022, 41 hedge funds held stakes in Dominion Energy Inc. (NYSE:D) and disclosed positions worth $1.14 billion in the company. This is compared to 29 positions in the preceding quarter with stakes worth $415.1 million. The hedge fund sentiment for the stock is positive.
On February 28, Guggenheim analyst Shahriar Pourreza revised his price target on Dominion Energy Inc. (NYSE:D) to $63 from $69 and reiterated a Buy rating on the shares. As of March 10, the stock has lost 32.50% over the past 12 months and is offering a forward dividend yield of 4.92%. Dominion Energy Inc. (NYSE:D) is among analysts’ top 52-week low stock picks.
As of December 31, Steve Cohen’s Point72 Asset Management is the top shareholder in Dominion Energy Inc. (NYSE:D) and has a position worth $233.5 million in the company.
Here is what Diamond Hill Capital had to say about Dominion Energy, Inc. (NYSE:D) in its Q4 2022 investor letter:
“Other bottom contributors included media and technology giant Alphabet, apparel and footwear company V.F. Corporation and utility operator Dominion Energy, Inc. (NYSE:D). Dominion Energy’s stock price weakness was due in part to regulatory concerns surrounding its triennial rate review process and its offshore wind program. Additionally, management highlighted cost pressures, which could hamper growth rates. We believe these headwinds are short-term in nature and continue to hold our position.”
11. M&T Bank Corporation (NYSE:MTB)
Number of Hedge Fund Holders: 42
M&T Bank Corporation (NYSE:MTB) is a regional bank headquartered in Buffalo, New York. On January 19, the company posted strong earnings for the fourth quarter of fiscal 2022. The company reported an EPS of $4.51 and outperformed estimates by $0.07. The company generated a revenue of $2.51 billion, up 65.89% year over year and ahead of consensus by $143.12 million. As of March 14, the stock has lost 27.18% over the past 12 months and is trading at a TTM PE multiple of 11x.
This January, Odeon Capital analyst Dick Bove upgraded M&T Bank Corporation (NYSE:MTB) to Buy from Hold and reiterated his $171.76 price target on the shares. The stock is placed eleventh on our list of the best 52-week low stocks to buy now.
M&T Bank Corporation (NYSE:MTB) was held by 42 hedge funds at the end of Q4 2022. These funds held collective positions worth $846.7 million in the company. As of December 31, Citadel Investment Group is the leading investor in M&T Bank Corporation (NYSE:MTB) and has a stake worth $298.4 million in the company.
10. Truist Financial Corporation (NYSE:TFC)
Number of Hedge Fund Holders: 44
On March 13, Baird analyst David George upgraded Truist Financial Corporation (NYSE:TFC) to Outperform from Neutral and reiterated his $53 price target on the stock. As of March 10, the stock has fallen 39.73% over the past 12 months and has a TTM PE ratio of 10.13. Truist Financial Corporation (NYSE:TFC) is one of the best 52-week low stocks to buy now according to analysts and hedge funds.
At the close of Q4 2022, 44 hedge funds were long Truist Financial Corporation (NYSE:TFC) and held collective stakes worth $823.5 million in the company. This is compared to 39 positions in the preceding quarter with stakes worth $570.2 million. As of December 31, Diamond Hill Capital is the most prominent shareholder in the company and has a position worth $562.8 million.
Here is what ClearBridge Investments had to say about Truist Financial Corporation (NYSE:TFC) in its Q4 2022 investor letter:
“We remained active in culling the portfolio of stocks we see as no longer well positioned for the more restrictive macro environment, eliminating seven common stock positions. The biggest sale was Truist Financial Corporation (NYSE:TFC), a regional bank formed by the merger of SunTrust and BB&T that we purchased during the height of COVID-19. At the time, this evolving opportunity growth company was not being recognized for its strong footprint in the Southeast. But the bank’s underinvestment in technology and exposure to auto lending could become greater risks in a downturn, leading us to exit the stock.”
9. PNC Financial Services Group, Inc. (NYSE:PNC)
Number of Hedge Fund Holders: 49
PNC Financial Services Group, Inc. (NYSE:PNC) is an American regional bank headquartered in Pittsburgh, Pennsylvania. PNC Financial Services Group, Inc. (NYSE:PNC) was a part of 49 investors’ portfolios at the end of Q4 2022. These funds held collective positions worth $742.7 million in the company, up from $615.7 million in the previous quarter with 43 positions. The hedge fund sentiment for PNC Financial Services Group, Inc. (NYSE:PNC) is positive and the stock is placed ninth on our list of the best 52-week low stocks to buy now according to hedge funds.
On March 13, Citi analyst Keith Horowitz upgraded PNC Financial Services Group, Inc. (NYSE:PNC) to Buy from Neutral and maintained his price target of $175 on the shares. As of March 14, the stock has lost 27.82% over the past 12 months and is trading at a PE multiple of 10x.
As of December 31, quant hedge fund D E Shaw is the largest investor in PNC Financial Services Group, Inc. (NYSE:PNC) and has disclosed a stake worth $64 million.
8. 3M Company (NYSE:MMM)
Number of Hedge Fund Holders: 52
This January, Mizuho analyst Brett Linzey updated his price target on 3M Company (NYSE:MMM) to $120 from $130 and maintained a Neutral rating on the shares. As of March 14, the stock has declined by 27.93% over the past 12 months and is trading at a PE ratio of 10x.
3M Company (NYSE:MMM) was held by 52 hedge funds at the end of Q4 2022. These funds held collective positions worth $1.57 billion in the company. This is compared to 49 hedge funds in the previous quarter with stakes worth $1.45 billion. The hedge fund sentiment for the stock is positive and the stock is one of the best 52-week low stocks to buy according to hedge funds.
As of December 31, AQR Capital Management is the leading shareholder in 3M Company (NYSE:MMM) and has disclosed a position worth $220.6 million in the company.
7. CF Industries Holdings, Inc. (NYSE:CF)
Number of Hedge Fund Holders: 53
On February 15, CF Industries Holdings, Inc. (NYSE:CF) posted earnings for the fiscal fourth quarter of 2022. The company generated a revenue of $2.61 billion for the quarter and reported an EPS of $4.55, outperforming EPS estimates by $0.35.
This February, RBC Capital analyst Andrew Wong revised his price target on CF Industries Holdings, Inc. (NYSE:CF) to $125 from $130 and reiterated an Outperform rating on the shares. The stock is one of the best 52-week low stocks to buy now according to analysts and hedge funds, and has lost 20.29% over the past 12 months, as of March 14.
At the end of Q4 2022, 53 hedge funds were bullish on CF Industries Holdings, Inc. (NYSE:CF) and disclosed positions worth $969.3 million in the company. Of those, Soroban Capital Partners was the leading shareholder in the company and held a stake worth $209.6 million.
6. Match Group, Inc. (NASDAQ:MTCH)
Number of Hedge Fund Holders: 54
As of March 14, Match Group, Inc. (NASDAQ:MTCH) has declined by 56.11% over the past 12 months. While Match Group, Inc. (NASDAQ:MTCH) has fallen significantly, Wall Street is positive on the stock. On February 2, Deutsche Bank analyst Benjamin Black updated his price target on Match Group, Inc. (NASDAQ:MTCH) to $60 from $65 and maintained a Buy rating on the shares.
At the close of Q4 2022, 54 hedge funds were eager on Match Group, Inc. (NASDAQ:MTCH) and disclosed positions worth $730.3 million in the company. This is compared to 54 positions in the previous quarter with stakes worth $621.1 million. Match Group, Inc. (NASDAQ:MTCH) is placed sixth among the best 52-week low stocks to buy now.
Here is what RGA Investment Advisors had to say about Match Group, Inc. (NASDAQ:MTCH) in its Q4 2022 investor letter:
“Match Group, Inc. (NASDAQ:MTCH), a long-term holding of ours offers an important illustrative example of these effects. Tinder grew reported revenues 6% year-over-year, accelerating a debate about whether this particular asset has reached a plateau in its growth curve; however, revenues grew 16% on an FX neutral basis. Has this asset stalled or is it a mid-teens grower? Other factors will determine the one true answer to this question, though FX and the stated headline make the answer seem obvious when it is not. When foreign exchange movements are modest, people tend to focus more on FX neutral assuming those changes will normalize over time, yet when movements are extreme the headline takes prominence.”
Some of the most popular stocks that have hit new lows and are still held by hedge funds include The Charles Schwab Corporation (NYSE:SCHW), Pfizer Inc. (NYSE:PFE), and Bank of America Corporation (NYSE:BAC).
Click to continue reading and see 5 Best 52-Week Low Stocks To Buy Now.
Suggested articles:
- 11 Cheap EV Stocks To Buy
- 12 Most Promising Fintech Stocks To Buy
- 12 Cheapest Penny Stocks According to Analysts
Disclosure: None. 15 Best 52-Week Low Stocks To Buy Now is originally published on Insider Monkey.
