In this article, we will take a look at the 18 best 52-week low stocks to buy now. To see more such companies, go directly to 5 Best 52-Week Low Stocks To Buy Now.
US stock markets are jittery after Fed Chair Jerome Powell made it clear that inflation is still high and needs further taming. Markets also also wavering amid bad news coming from China and some warnings from notable analysts that the economy is still not out of the woods. Talking to Bloomberg, Steve Sosnick, chief strategist at Interactive Brokers, had said that the Federal Reserve had “no choice but to keep it up” until they are “convinced” that inflationary pressures are under control. He stressed that “a pause is not a pivot” and it was important for the Fed to make sure that inflation does not come back.
“Doing otherwise risks some of the embers reigniting. Even though two governors favored keeping rates steady in July, it is important to keep in mind that a pause is not a pivot,” Sosnick reportedly said.
A latest Bloomberg report said that the Chinese government has asked some investment funds to avoid being net sellers of equities. The move reportedly comes as an effort to stop the rout that is crushing Chinese stocks and assets. Chinese real estate companies are again on investors’ radar amid Country Garden, one of China’s top property developers, showing signs of extreme trouble. The company recently suspended trading in 11 of its onshore bonds and analysts believe the company might be restructuring amid problems to raise enough cash to avoid a default.
Photo by Ruben Sukatendel on Unsplash
Our Methodology
For this article, we first used stock screener to identify stocks that recently hit 52-week lows or are trading near their 52-week lows. We got a long list of stocks from these checks. From these stocks we selected 18 stocks with the highest number of hedge fund investors. The idea was to find 52-week low stocks that hedge funds are bullish on. Hence, the stocks in this list are the best 52-week low stocks according to smart money investors. The list is ranked in ascending order of the number of hedge fund investors.
Best 52-Week Low Stocks To Buy Now
18. American Electric Power Company, Inc. (NASDAQ:AEP)
Number of Hedge Fund Holders: 34
American Electric Power Company, Inc. (NASDAQ:AEP) shares recently hit 52-week low. American Electric Power Company, Inc. (NASDAQ:AEP) has lost about 24% over the past year. In July American Electric Power Company, Inc. (NASDAQ:AEP) posted Q2 results. Adjusted EPS in the period came in at $1.13, meeting estimates. Revenue in the quarter fell 4.3% year over year to $4.4 billion, missing estimates by $290 million.
A total of 34 hedge funds out of the 943 funds tracked by Insider Monkey reported owning stakes in American Electric Power Company, Inc. (NASDAQ:AEP) as of the end of the first quarter. The biggest stakeholder of American Electric Power Company, Inc. (NASDAQ:AEP) during this period was Dmitry Balyasny’s Balyasny Asset Management which owns an $119 million stake in the company.
17. Conagra Brands, Inc. (NYSE:CAG)
Number of Hedge Fund Holders: 34
Conagra Brands, Inc. (NYSE:CAG) shares have lost about 14% over the past one year. In July, Morgan Stanley downgraded Conagra Brands, Inc. (NYSE:CAG) to Equal Weight from Overweight. Conagra Brands, Inc. (NYSE:CAG)’s analyst Pamela Kaufman said that the stock’s Overweight thesis is not playing out.
As of the end of the first quarter of 2023, 34 hedge funds out of the 943 funds in Insider Monkey’s database reported owning stakes in Conagra Brands, Inc. (NYSE:CAG).
16. PNM Resources, Inc. (NYSE:PNM)
Number of Hedge Fund Holders: 34
New Mexico-based energy holding company PNM Resources, Inc. (NYSE:PNM) was near its 52-week lows as of August 16. PNM Resources, Inc. (NYSE:PNM) has lost about 9% over the past one year. PNM recently reported Q2 results. Adjusted EPS in the quarter came in at $0.55, missing estimates by $0.01. Revenue in the period fell 4.5% year over year to $477.16 million, beating estimates by $30.14 million.
Insider Monkey’s database of 943 hedge funds shows that 34 hedge funds had reported owning stakes in PNM Resources, Inc. (NYSE:PNM). The most significant stakeholder of PNM Resources, Inc. (NYSE:PNM) during this period was Alec Litowitz and Ross Laser’s Magnetar Capital with a $94 million stake.
15. Alcoa Corporation (NYSE:AA)
Number of Hedge Fund Holders: 35
Aluminum company Alcoa Corporation (NYSE:AA) ranks 15th in our list of the best 52-week low stocks to buy now according to hedge funds. Alcoa Corporation (NYSE:AA) has lost about 42% over the past one year.
As of the end of the first quarter of 2023, 35 hedge funds out of the 943 funds in Insider Monkey’s database reported owning stakes in Alcoa Corporation (NYSE:AA).
ClearBridge Investments made the following comment about Alcoa Corporation (NYSE:AA) in its Q3 2022 investor letter:
“We bought Alcoa Corporation (NYSE:AA), a leading aluminum producer, after the stock sold off over lower commodity prices. The current price of aluminum is unsustainably low, below its cost of production, despite inventories being at historic lows. We believe these depressed prices are due to the evaporation of Chinese demand resulting from its zero COVID-19 policy, but that it will likely recover over the next few quarters.
Additionally, Alcoa is leading the industry in reducing carbon emissions from its smelting process which is helping to improve its cost position relative to global competitors. Given its compelling valuation and strong free cash flow yield, we are confident in the company as it is increasingly relied upon to meet the growing structural demand from electrification and the global energy transition.”
14. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
Number of Hedge Fund Holders: 37
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) was trading new its 52-week lows earlier this month. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) recently posted Q2 results. Adjusted EPS in the period came in at -$1.62, missing estimates by $0.28. Revenue in the quarter jumped 41.8% YoY to $318.75 million, missing estimates by $31.82 million.
ClearBridge Select Strategy made the following comment about Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) in its Q4 2022 investor letter:
“Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), a biotech that develops RNA therapies to target and turn off certain proteins in the body, has a number of drugs in market whose revenues are expected to end the excessive cash burn that has plagued the company’s shares. As more drugs are launched and pipeline investments are more focused under new leadership, we believe the company will be an increasingly attractive asset.”
13. Tower Semiconductor Ltd. (NASDAQ:TSEM)
Number of Hedge Fund Holders: 37
Israel-based Tower Semiconductor Ltd. (NASDAQ:TSEM) ranks 13th in our list of the best 52-week low stocks to buy now. Intel and Tower recently said they have agreed to terminate their $5.4 billion deal according to which Intel was supposed to acquire Tower Semiconductor Ltd. (NASDAQ:TSEM). The decision came as companies were unable to receive necessary regulatory approvals in China.
A total of 37 hedge funds out of the 943 hedge funds tracked by Insider Monkey were long Tower Semiconductor Ltd. (NASDAQ:TSEM). The biggest stakeholder of Tower Semiconductor Ltd. (NASDAQ:TSEM) was Richard Mashaal’s Rima Senvest Management which owns a $145 million stake in the company.
12. Moderna, Inc. (NASDAQ:MRNA)
Number of Hedge Fund Holders: 40
Moderna, Inc. (NASDAQ:MRNA) recently hit new lows amid downgrades from TD Cowen and Deutsche Bank. As demand for COVID vaccines tank around the world, analysts are looking for possible growth catalysts for Moderna, Inc. (NASDAQ:MRNA).
However, 40 hedge funds in Insider Monkey’s database had stakes in Moderna, Inc. (NASDAQ:MRNA) as of the end of the first quarter.
11. Willis Towers Watson Public Limited Company (NASDAQ:WTW)
Number of Hedge Fund Holders: 42
Insurance services company Willis Towers Watson Public Limited Company (NASDAQ:WTW) fell earlier this month after BMO Capital Markets downgraded the stock to Underperform from Market Perform amid weak Q2 results and guidance cut.
However, 42 hedge funds out of the 943 funds in Insider Monkey’s database of hedge funds reported owning stakes in Willis Towers Watson Public Limited Company (NASDAQ:WTW).
Here is what Artisan Partners specifically said about Willis Towers Watson Public Limited Company (NASDAQ:WTW) in its Q3 2022 investor letter:
“Willis Towers Watson Public Limited Company (NASDAQ:WTW) shares rose 2% in the quarter. This modest increase made it one of our best performers during a difficult quarter. Absent significant news, the business continues to benefit from a hard insurance market. Results are still lagging peers, but the management team seems to be making progress in closing the gap. In the meantime, the company is returning significant amounts of capital to shareholders. Over the past eight months, it has repurchased $4 billion in stock and reduced the share count by 15%. And there is more on the way. This is a good business in a fantastic industry trading at 12X normalized earnings . We believe it is worth much more.”
10. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
Number of Hedge Fund Holders: 42
SolarEdge Technologies, Inc. (NASDAQ:SEDG) is down about 42% over the past one year. SolarEdge Technologies, Inc. (NASDAQ:SEDG) recently fell after the company gave a Q3 revenue guidance that missed analyst estimates by wide margins. In Q3 SolarEdge Technologies, Inc. (NASDAQ:SEDG) expects its revenue in the range of $880 million to $920 million, while analysts’ consensus estimate stood at $1.05 billion.
9. Crown Castle Inc. (NYSE:CCI)
Number of Hedge Fund Holders: 43
Communications infrastructure REIT Crown Castle Inc. (NYSE:CCI) is one of the best 52-week low stocks to buy according to hedge funds. As of the end of the first quarter of 2023, 43 hedge funds out of the 943 funds in Insider Monkey’s database reported owning stakes in Crown Castle Inc. (NYSE:CCI). The most significant stakeholder of Crown Castle Inc. (NYSE:CCI) was Michael Larson’s Bill & Melinda Gates Foundation Trust which owns a $162 million stake in the company.
Here is what Aristotle Value Equity has to say about Crown Castle Inc. (NYSE:CCI) in its Q2 2023 investor letter:
“Crown Castle, the largest U.S. provider of shared communications infrastructure—cell towers, small cells and fiber—was the largest detractor from performance. The company reported a decline in fiber revenue and a deceleration in tower sales growth during the quarter after record network spending by wireless carriers in 2022 (related to the ongoing rollout of 5G). We continue to appreciate the benefits of management’s differentiated strategy to remain 100% focused on the U.S. while many competitors have instead sought to expand their tower businessesinternationally. We believe Crown Castle’s approach delivers a compelling value proposition as the company’s customers seek to utilize shared infrastructure while making multi‐ billion‐dollar investments in spectrum assets. Although carriers have generally pulled back from network spending this year, we continue to find the structure of Crown Castle’s tower business attractive. This includes the ability to implement a nearly 3% annual price escalator on tower rental rates, the low capital investment needed to maintain its towers and sticky customers with an over 95% renewal rate over the last 5 years. Looking past the short‐term movements in demand, we believe that, over the long term, the company is well‐poised to gain market share and also improve its profitability as it increases the average number of tenants per tower. In addition, management reiterated it is on pace to deploy 10,000 small cell nodes in 2023 (approximately doubling last year’s results). As such, we view Crown Castle as uniquely positioned to benefit from the shift to 5G networks, since the company’s portfolio skews toward urban areas where densification of populations, infrastructure and networks enhances the value proposition of small cells.”
8. Illumina, Inc. (NYSE:ILMN)
Number of Hedge Fund Holders: 44
In early August Illumina, Inc. (NYSE:ILMN) was trading near its 52-week lows. Illumina, Inc. (NYSE:ILMN) has since recovered. Nonetheless it has lost about 20% in value over the past one year.
As of the end of the first quarter of 2023, 44 hedge funds out of the 943 funds in Insider Monkey’s database had stakes in Illumina, Inc. (NYSE:ILMN). The most significant stakeholder of Illumina, Inc. (NYSE:ILMN) was Robert Joseph Caruso’s Select Equity Group.
Polen Focus Growth Strategy made the following comment about Illumina, Inc. (NASDAQ:ILMN) in its second quarter 2023 investor letter:
“The top absolute detractors were Illumina, Inc. (NASDAQ:ILMN), Thermo Fisher Scientific, and PayPal. With respect to detractors, the ongoing headache with Illumina’s acquisition of Grail continues to pressure the company’s share price, in our view. It seems increasingly likely that the company will have to divest the early-stage, cancer-testing company soon, as a divestiture order from the European Commission appears inevitable in the coming months. While we believe regulators far overreach on antitrust concerns, our opinions don’t matter here. We would prefer that Illumina own Grail and better position the company to bring potentially lifesaving cancer screenings to patients across the globe. Our investment thesis is based on Illumina’s competitive position in its core, next-generation genomic sequencing business. We remain sanguine on the company’s ability to compound earnings growth at attractive rates for many years to come, and as such, we find today’s valuation quite attractive. We expect the Grail drama to be in the rearview mirror within the next few quarters.”
7. The AES Corporation (NYSE:AES)
Number of Hedge Fund Holders: 44
American utility company The AES Corporation (NYSE:AES) ranks 7th in our list of the best 52-week low stocks to buy according to hedge funds. The AES Corporation (NYSE:AES)’s decline in August was part of the broader utility sector’s decline amid US Treasury yields surging to their new lows.
A total of 44 hedge funds out of the 943 hedge funds in Insider Monkey’s database had stakes in The AES Corporation (NYSE:AES).
Massif Capital made the following comment about The AES Corporation (NYSE:AES) in its second quarter 2023 investor letter:
“Currently, the portfolio has roughly 11% allocated across two utilities, The AES Corporation (NYSE:AES) and Polaris Renewable Energy. In the case of both equities, we have experienced disappointing 2023 market results, and in the case of AES, it is the long-book’s worst performer YTD, dragging down the overall portfolio by -2.09%. Polaris contributed a positive return of 0.21%. These two positions represent investments in similar assets but very different businesses, which explains much of the divergence in this year’s results.
In the case of AES, we have a heavily US-focused utility with significant exposure to regulated and unregulated markets and a significant commitment to building out renewable energy. The firm also has some exposure to electricity markets in South America and exposure to electricity storage markets in the form of its ownership stake in Fluence (FLNC). Despite being one of the larger US utilities, the firm has trailed the sector (as measured by the IXUTR Index) dramatically this year…” (Click here to read the full text)
6. Northrop Grumman Corporation (NYSE:NOC)
Number of Hedge Fund Holders: 45
Defensive giant Northrop Grumman Corporation (NYSE:NOC) was near its 52-week lows earlier this month. Northrop Grumman Corporation (NYSE:NOC) in July posted Q2 results. Net earnings fell 14% to $812 million, or $5.34 a share, from $946 million, or $6.06 a share, a year earlier. However, sales in the period jumped about 9% to reach $9.58 billion, beating estimates of $9.34 billion.
A total of 45 hedge funds out of the 943 hedge funds in Insider Monkey’s database reported owning stakes in Northrop Grumman Corporation (NYSE:NOC) at the end of March. The biggest stakeholder of Northrop Grumman Corporation (NYSE:NOC) during this period was Donald Yacktman’s Yacktman Asset Management which owns a $189 million stake in the company.
Harding Loevner Global Equity Strategy made the following comment about Northrop Grumman Corporation (NYSE:NOC) in its Q1 2023 investor letter:
“Our other purchase was Northrop Grumman Corporation (NYSE:NOC), a US defense contractor whose stock price experienced a pullback. We like that Northrop has a larger presence than its rivals in the most favorable subcategories of the defense industry-namely, nuclear weapons, space systems, and what’s known as C4ISR (which stands for Command, Control, Communications, Computers. Intelligence, Surveillance, and Reconnaissance). C4ISR refers to digital systems that translate data picked up from different sensors-such as an incoming hypersonic missile or advancing troops-into a common format, and then escalate key information to the right people These differentiated technologies are especially relevant in a time of increased geopolitical tensions. Northrop also benefits from large barriers to entry in this stable industry, which should enable continued strong earnings and cash flow.”
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Disclosure: None. 18 Best 52-Week Low Stocks To Buy Now is originally published on Insider Monkey.
