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

9. United Parcel Service, Inc. (NYSE:UPS)

52 Week Range: $123.12 – $172.75

Current Share Price: $127.90

Number of Hedge Fund Holders: 44

Short interest rate: 1.88%

United Parcel Service, Inc. (NYSE:UPS) is an integrated freight and logistics company providing transportation and delivery contract logistics. The company also offers international air and ocean freight forwarding, post-sales, and mail and consulting services.

It is one of the stocks that has lagged the market for the better part of the year and is currently billed as one of the best 52-week low stocks to buy now according to short sellers. United Parcel Service, Inc. (NYSE:UPS) ‘s underperformance in the market can be attributed to, among other things, fluctuations in shipping demand and pricing. However, its second quarter showed signs of improvement with volume growth in the U.S.

Nevertheless, higher expenses due to new labor agreements and regulatory charges have been the catalysts behind disappointing earnings. Earnings in the second quarter totaled $1.79, missing estimates of $1.98 a share. Revenues totaled $21.8 billion, missing estimates of $22.2 billion.

On the other hand, the logistics company has raised its full-year revenue forecast to $93 billion from the previous forecast of between $92 billion and $94.5 billion, affirming the expected growth. United Parcel Service, Inc. (NYSE:UPS) plans to accelerate growth by expanding its footprint in Mexico with plans to acquire small package provider Estafeta. It also plans to enhance its logistics services for the healthcare sector and small and medium-sized businesses.

The deep pullback close to 52-week lows has left United Parcel Service, Inc. (NYSE:UPS) trading at a price-to-earnings multiple of 17, much lower than the average P/E of 26 for the industrials sector. This means that the stocks are trading at a discount with solid revenue growth prospects on robust underlying fundamentals.  The short interest rate on the stock stood at 1.88% as of the end of July.

According to Insider Monkey’s database, 44 hedge funds owned stakes in United Parcel Service, Inc. (NYSE:UPS) at the end of June, growing from 43 in the previous quarter.