18 Best 52-Week Low Stocks to Buy Now According to Short Sellers

3. BHP Group Limited (NYSE:BHP)’

52 Week Range: $51.73 – $69.11

Current Share Price: $55.67

Number of Hedge Fund Holders: 22

Short interest rate: 0.33%

BHP Group Limited (NYSE:BHP) is one of the best 52-week low stocks to buy now according to short sellers for diversifying an investment portfolio into the basic materials sector.  While operating as a resources company, it mines copper, silver, zinc, Molybdenum, gold, and iron ore.

The underperformance in recent months has mostly been attributed to the company facing a major setback on its $43 billion planned takeover of Anglo American. BHP Group Limited (NYSE:BHP) had hoped to complete the acquisition to optimize its long-term growth potential with its higher-margin cash-generative assets and growth projects.

Amid the setback, BHP Group Limited (NYSE:BHP) had an impressive six months of the year as its profit came in at $6.6 billion. The company also announced a 72 cents per share dividend of $3.6 billion, translating to a 56% payout.

BHP Group Limited (NYSE:BHP) exhibits a price-to-earnings (P/E) ratio of 10, indicating investors’ positive outlook regarding its profit capabilities. Nevertheless, the stock also appears undervalued, going by the average P/E of 25 for the energy sector. Importantly, BHP offers a dividend yield of 5.51%, highlighting its dedication to providing returns to its investors—a practice that has been ongoing for an impressive 45 years. The stock boasts of a low short interest of 0.33%.

At the end of June, 22 hedge funds in Insider Monkey’s database owned stakes in BHP Group Limited (NYSE:BHP), down by three over the preceding quarter. Fisher Asset Management remained bullish on the stock, growing its position in the company by 4% in the second quarter of the year to 21.31 million shares.