In this article, we will analyze the list of 18 best 52-week low stocks to buy now according to short sellers.
Buying low and selling high is a popular investment strategy that value investors inspired by Warren Buffett have perfected over the years. The legendary investor has consistently emphasized the importance of identifying stocks of undervalued companies with significant growth prospects and holding onto these investments for an extended period.
Some of the most undervalued stocks to buy are those trading near their 52-week lows, backed by solid underlying fundamentals. A lot of these companies have durable competitive advantages but have fallen due to an overreaction by pessimists to short-term headwinds. The companies should boost strong brands in their respective fields with high barriers to entry.
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Value investing means paying attention to more than just the stock price but by focusing on valuation. A pullback often creates buying opportunities where quality companies become available at low price-to-earnings multiples or low price-to-sales ratios relative to their industries.
Over the past 20 years, 95% of investment firms have failed to beat the S&P 500. In contrast, Buffett has averaged an annual return of 20%, nearly double the S&P 500 over the same period.
With the S&P 500 up by about 20% for the year, most stocks are trading at premium valuations above their 52-week highs. The impressive gains have come amid unfavorable market conditions, with interest rates near all-time highs of between 5.25% and 5.50%.
On the other hand, some stocks have pulled back significantly and are currently trading close to the 52-week lows, their core business hurt by the high interest rate environment. Additionally, some of the stocks have underperformed due to deteriorating macroeconomics. Concerns that the U.S. economy could plunge into recession have always hurt some of the stock’s sentiments. The U.S. Federal Reserve is expected to cut interest rates in September and these stocks might not be near their lows for long.
According to Stuart Keiser, Citi head of equity trading strategy, the high interest rate environment has left the market in a very unstable situation amid a “ tricky environment.” Likewise many investors are on edge as to whether there will be a soft or hard landing. Keiser said, in an interview on CNBC’s Fast Money:
“Basically you had a 12 to 18 month period of positive economic surprise of what I would call higher for longer growth strong rate cuts getting pushed out. Markets were able to deal with that because growth was really positive. Since late June economic data surprised negative, economic data momentum negative. The market is now trading instead of higher for longer trading, a bit of growth slowdown. That’s why you are getting this schizophrenia because as growth decelerates you get into a borderline at which the risk becomes really big that you could go hard landing instead of soft landing. So our view is that the risk reward is not what it was a couple of months back”
Amid the market outlook uncertainty, focusing on stocks near the 52-week lows is a sure way of balancing the risk reward amid the premium valuation in play. While the focus has been on artificial intelligence investment plays, stocks in various sectors are trading at discounted valuations and are sure to offer significant returns.
Source: Pexels
Our Methodology
To compile the list of the best 52-week low stocks to buy now, according to short sellers, we first screened for stocks that were trading near their 52-week lows (0-10% range) using the Finviz stock screener. Next, we looked at their short interest and picked the stocks with the lowest short interest that were the most popular among elite hedge funds. The stocks are ranked in descending order of their short interest.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Best 52-Week Low Stocks to Buy Now According to Short Sellers
18. PBF Energy Inc. (NYSE:PBF)
52 Week Range: $32.64 – $62.88
Current Share Price: $32.72
Number of Hedge Fund Holders: 32
Short interest rate: 8.17%
PBF Energy Inc. (NYSE:PBF) is an energy company that refines and supplies petroleum products. Its product line includes gasoline ultra-low sulfur diesel jet fuel, among other products. The stock is barely up by 1% from its 52-week low, an underperformance that comes amid solid underlying fundamentals.
For starters, PBF Energy Inc. (NYSE:PBF) continues to generate significant revenues, with oil prices trading above $75 a barrel. The company is benefiting from improving margins in the refining business.
Margins for refining have returned to more stable levels after reaching extreme highs in early 2023, following the disruption caused by Russia’s invasion of Ukraine, which significantly affected the markets for these products.
PBF Energy Inc. (NYSE:PBF) reported a combination of outcomes for the second quarter of 2024, with its profits affected by falling RIN-adjusted crack spreads, weak demand for co-products, and prolonged maintenance tasks. However, the company successfully kept a strong cash position, aiming for a cash balance between $1 billion and $1.5 billion.
PBF Energy Inc. (NYSE:PBF) also reiterated its dedication to its investors, emphasizing its focus on long-term value creation through share buybacks and dividend payments.
The firm’s assets on the East Coast are strategically placed to tackle supply shortages, while those on the West Coast continue to hold their competitive edge. PBF Energy is set to increase its output from the Trans Mountain Expansion pipeline by the year’s end, signaling a favorable perspective for its future endeavors.
Even though a $100 million chance for profit was missed due to prolonged downtime at Del City and Toledo and an extra $50 million due to a downturn in the market, PBF Energy Inc. (NYSE:PBF) maintains a hopeful stance for what lies ahead. The firm anticipates a rise in demand in the latter half of the year and is confident about the prospects for its renewable diesel division in the coming years.
Amid the improving operational efficiency and financial performance, PBF Energy is currently trading at a price-to-earnings multiple of 20 while offering an annual dividend of 2.92%. The amount of outstanding shares short as of July stood at 8.17%.
During 2024’s second quarter, 32 out of the 912 hedge funds part of Insider Monkey’s database had bought PBF Energy Inc. (NYSE:PBF)’s shares. John Overdeck and David Siegel’s Two Sigma Advisors was the biggest investor, courtesy of its $75.85 million investment.
17. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
52 Week Range: $9.38 – $10.37
Current Share Price: $9.45
Number of Hedge Fund Holders: 35
Short interest rate: 7.68%
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) provides healthcare, pharmacy, and retail services. Its U.S. Retail Pharmacy division runs drugstores, health and wellness, specialty, and home delivery pharmacy services, including health and fitness, beauty, personal care, and everyday items. The International division sells prescription drugs and various consumer goods outside the U.S.
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) has been under pressure over the past year owing to growing concerns over its pharmacy business. The primary challenge Walgreens needs to grapple with is the low reimbursement rates it receives for drugs from pharmacy benefit managers (PBMs). Over the last ten years, PBMs have exerted significant pressure on drugstores, including Walgreens, reducing profit margins over time.
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is currently negotiating with pharmaceutical manufacturers and insurance companies to adopt a pricing strategy known as cost-plus, which would allow it to receive payments proportional to its services. In the long term, reducing the financial strain on pharmacies will be necessary, leading to the exploration of alternative pricing strategies. It’s important to note that pushing pharmacies out of operation would ultimately harm all parties involved.
Additionally, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) made a questionable investment when it acquired a majority stake in VillageMD and aided its expansion by acquiring Summit Medical. The owner of primary care medical clinics struggled to grow beyond its established geographic area. Walgreens has been considering various strategies for VillageMD, including possibly selling the entire company.
Regarding its main pharmacy operations, the firm has initiated the process of closing down stores that need to generate more profit throughout the nation. This decision is beneficial for multiple reasons. Firstly, it will lower expenses by decreasing the number of stores and reducing overhead costs. Secondly, although it will decrease revenue, it is expected to maintain significant sales as customers shift their patronage to other local establishments. This is anticipated to enhance in-store sales and profit margins as it manages increased foot traffic with a more economical cost base.
Barely 1% above its 52-week low, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is trading at a significant discount with a price-to-earnings multiple of 4 compared to an average P/E of 34 for healthcare stocks. Additionally, as of the end of July, the percentage of outstanding shares stood at 7.68%.
The number of hedge funds tracked by Insider Monkey holding stakes in Walgreens Boots Alliance, Inc. (NASDAQ:WBA) fell to 35 at the end of June, from 41 a quarter earlier.
Here is what Ariel Investments said about Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in its Q1 2024 investor letter:
“Alternatively, several positions weighed on performance. Shares of retail drugstore operator, Walgreens Boots Alliance, Inc. (NASDAQ:WBA), declined over the period as challenging consumer and macroeconomic conditions, ongoing operational issues and a significant cut in the dividend weighed on shares. To address these performance lows, WBA’s new CEO is rebuilding the company’s management team with leaders who have significant experience in healthcare services. Meanwhile, WBA continues to execute on its cost savings initiatives to optimize profitability and is using excess capital to prioritize the sustainability of its operations and balance sheet. Over the medium-term, we expect a re-rating in shares as the new executive team earns credibility, margins and free cash flow show signs of improvement and the company deleverages. WBA shares are currently trading at a significant discount to our estimate of private market value.”
16. Noble Corporation (NYSE:NE)
52 Week Range: $36.38 – $55.34
Current Share Price: $37.92
Number of Hedge Fund Holders: 38
Short interest rate: 7.41%
Noble Corporation (NYSE:NE) is a global offshore drilling contractor for the petroleum and natural gas sector. It offers drilling services contractually to the petroleum and natural gas sector via its network of mobile offshore drilling platforms.
While Noble Corporation (NYSE:NE) has lagged the overall market, it has continued to fire on all angles on operational efficiency. Its revenues have increased from $847 million to $2.6 billion over the last three years.
The robust growth has come amid higher contract drilling revenues. The company boasts of a drilling backlog of over $4 billion. Its revenue in the second quarter was up 8.5% year over year, driven by higher reimbursable. Additionally, its EBITDA margin improved from 29% to 39% due to lower interest expenses.
In June, Noble Corporation (NYSE:NE) moved to bolster its push to deliver superior innovation and value as a leading offshore operator with the acquisition of Diamond Offshore Drilling.
“Our position will be strengthened with the addition of four 7th generation drillships and one of the most high-spec harsh environment semi-submersible rigs in the world. Additionally, Diamond’s five conventional deep-water and midwinter rigs have averaged above 85% utilization over the last 3 years and currently have strong forward contract coverage. Supported by Diamond’s $2.1 billion of backlog and $100 million of anticipated cost synergies, we expect the transaction to be immediately accretive to our free cash flow per share and contribute to accelerated growth in our return of capital to shareholders,” said Robert Eifler.
Noble Corporation (NYSE:NE) is one of the best 52-week low stocks to buy now, according to short sellers, while trading at a price-to-earnings multiple of 9 and offering a dividend yield of 5.27%, ideal for income-focused investors. The percentage of its outstanding shares is 7.41%.
During Q2 2024, 38 out of the 912 hedge funds profiled by Insider Monkey held a stake in Noble Corporation (NYSE:NE).
15. Arch Resources, Inc. (NYSE:ARCH)
52 Week Range: $116.44 – $129.09
Current Share Price: $126.98
Number of Hedge Fund Holders: 38
Short interest rate: 5.18%
According to short sellers, Arch Resources, Inc. (NYSE:ARCH) is one of the best 52-week low stocks to buy now as a basic materials company engaged in the production and sales of metallurgical products. The company owns and controls long-term leases of coal land in Ohio.
The company has inked a $5 billion deal with Consol Energy to create North America’s largest coal mining company. The combined company should have an export capacity of 25 million tons annually across two terminals.
While there have been concerns about tight emissions regulations on the coal industry, Arch Resources, Inc. (NYSE:ARCH) should be able to export 67% of its pro forma value to fast-growing Asian markets, safeguarding its revenue base.
The company overcame logistical challenges in the second quarter by shipping a record 2 million tons of coking coal. It also achieved record production levels from its metallurgical segment. Ultimately, it posted a net income of $14.8 million, down from $77.4 million a year ago. Revenues totaled 4608 million from $757 million a year ago.
Arch Resources, Inc. (NYSE:ARCH) ‘s financial results were significantly impacted by the short-term closure of the Baltimore port, which serves as a crucial distribution center for Arch Resources. Moreover, the demand for metallurgical coal, essential for steel production, saw a price drop, adding to the challenges faced in the third quarter. However, Arch Resources assured that its production and cost goals for the year 2024 are still achievable.
Furthermore, the company achieved considerable milestones in lowering its debt, enhancing its liquidity, and buying back its own shares. It paid down an incremental $12.5 million debt, bringing its debt level to $133.3 million with a net positive cash position of $146 million.
The stock trades at a Price-to-earnings (P/E) ratio of 9.12, suggesting it might be undervalued relative to its earnings. Additionally, Arch Resources, Inc. (NYSE:ARCH) ‘s Price-to-book (P/B) ratio over the same timeframe is 1.6, indicating that the stock’s market value appears to align with its book value. The percentage of shares outstanding short as of the end of July stood at 5.18%
As of June 2024 end, 38 out of the 912 hedge funds surveyed by Insider Monkey had held a stake in the company. Arch Resources, Inc. (NYSE:ARCH)’s largest hedge fund shareholder is Mohnish Pabrai due to its $59.73 million stake.
Here is what Black Bear Value Partners said about Arch Resources, Inc. (NYSE:ARCH) in its Q2 2024 investor letter:
“Arch Resources, Inc. (NYSE:ARCH) and Warrior are 2 of the leading U.S. producers of high-quality metallurgical coal (“met coal”). This is the kind of coal used for steelmaking. ARCH also has a small thermal coal business that contributes ~20% of their earnings. Each company is independently a top 5 position meaning coal is a meaningful percentage of our assets.
Both companies are largely export driven producers. For example, Warrior exports 97% of their production. Both have a large cost advantage as they can ship to Europe and South America in ~2 weeks versus Australian competition of ~5 weeks.”
14. Franklin Resources, Inc. (NYSE:BEN)
52 Week Range: $20.33 – $20.72
Current Share Price: $20.34
Number of Hedge Fund Holders: 27
Short interest rate: 4.17%
Franklin Resources, Inc. (NYSE:BEN) is one of the best 52-week low stocks to buy now, according to short sellers, for diversifying an investment portfolio into the financial service sector. While operating as an asset management holding company, it offers services to individual institution’s pension plans.
Franklin Resources, Inc. (NYSE:BEN) has been under pressure, trading close to its 52-week lows. The underperformance has been attributed to the Securities and Exchange Commission launching a federal investigation of its co-chief Investment Officer (CIO) of its Western Asset Management unit, Ken Leech. Consequently, the company has announced Michael Buchanan’s promotion to the Chief Investment Officer role.
During their latest earnings discussion, Franklin Resources, Inc. (NYSE:BEN) announced an adjusted operating profit of $424.9 million, indicating a 1.3% rise compared to the last three months. It also delivered a 15% growth in assets managed over the past year, concluding the quarter with a total of $1.65 trillion.
In collaboration with other financial entities, the firm introduced the initial U.S. exchange-traded funds linked to ether, incorporating digital assets into the wider financial landscape. The firm’s quarterly dividend payout remained unchanged at $0.31 per share, marking a 3.3% increase from the same period last year. These developments represent recent progress for both Western Asset Management and Franklin Resources.
Franklin Resources, Inc. (NYSE:BEN) is currently valued at a P/E ratio of 12.88, significantly higher than an average P/E of 7 for the financial service industry. On the other hand, the company rewards investors with a 5.92% dividend yield. The number of shares outstanding shortstands at 4.17%.
During June 2024, 27 out of the 912 hedge funds profiled by Insider Monkey were the firm’s shareholders. Franklin Resources, Inc. (NYSE:BEN) ‘s biggest hedge fund investor is AQR Capital Management, as it owns$54.66 million worth of shares.
13. Molson Coors Beverage Company (NYSE:TAP)
52 Week Range: $49.19 – $69.18
Current Share Price: $53.55
Number of Hedge Fund Holders: 34
Short interest rate: 3.82%
Molson Coors Beverage Company (NYSE:TAP) is a consumer defensive company that manufactures, markets, and sells beers and other malt beverage products. It produces many beloved and iconic beer brands, including Coors Light, Miller Lite, Madri, Staropramen, Miller High Life Keystone, and more.
While Molson Coors Beverage Company (NYSE:TAP) is trading near its 52-week lows, it delivered solid second-quarter financial results with increased net pricing and positive sales. The beverage giant reported second-quarter net sales of $3.25 billion, which was a minor decrease compared to the previous year but still significantly higher than the $3.19 billion average prediction made by Visible Alpha. The adjusted diluted earnings per share (EPS) increased by nearly 8% year-over-year to $1.92, surpassing the expectations of analysts who had predicted $1.71.
Molson Coors Beverage Company (NYSE:TAP) reported that its latest quarterly earnings showed a downturn due to unfavorable effects from foreign currencies and a drop in the number of contract brewing deals, with one such deal scheduled to conclude by the year’s end. Nonetheless, Molson Coors mentioned that its present approach offers the ability to adjust to changing circumstances in its various markets.
Molson Coors Beverage Company (NYSE:TAP) emphasized that the robust outcomes indicate advancement in the company’s strategic efforts and the implementation of its “Acceleration Plan. Initiated in October 2023. The company’s Acceleration Plan focuses on increasing income from its main brands and seeks to “proactively elevate its portfolio.
As one of the best 52-week low stocks to buy now, according to short sellers, Molson Coors Beverage Company (NYSE:TAP) trades at a price-to-earnings multiple of 9, much lower than the industry average of 24. In addition, the stock offers an annual dividend of 3.27%, which is ideal for generating passive income from dividend payments. The number of shares outstanding short as of the end of July stood at 3.82%.
For their Q2 2024 shareholdings, 34 out of the 912 hedge funds surveyed by Insider Monkey had bought and owned Molson Coors Beverage Company (NYSE:TAP)’s shares. Cliff Asness’ AQR Capital Management was the largest shareholder due to its $241.39 million investment.
12. Chevron Corp (NYSE:CVX)
52 Week Range: $139.62 – $171.70
Current Share Price: $146.95
Number of Hedge Fund Holders: 64
Short interest rate: 2.76%
Chevron Corporation (NYSE:CVX) is an investment play for investors looking to diversify their portfolio into the energy sector amid the high energy prices. Operating as an Oil & Gas Integrated company, it develops, develops, and distributes crude oil and natural gas.
Chevron Corporation (NYSE:CVX) had an impressive second quarter, delivering strong production and an enhanced global exploration portfolio. It also extended its record of consistent shareholder returns with over $50 billion of distributions in the last two years.
Its global production rose 11% compared to the year-ago period, driven by the successful integration of PDC Energy, Inc. (PDC) and strong execution in the Permian and Denver-Julesburg (D.J.) Basins. The company delivered solid Q2 2024 results with $4.4 billion or $2.43 a share earnings.
With oil prices above the $75-a-barrel level, Chevron Corporation (NYSE:CVX) is well positioned to maintain a robust financial position that should pave for long-term gains. Despite potential declines in oil prices, Chevron stands out as one of the most cost-effective producers, earning a significant portion of its income from its midstream (transmission pipelines) and downstream activities (chemical and refining operations) rather than from its drilling operations.
While the stock trades at a price-to-earnings multiple of 12, it rewards investors with an annual dividend yield of 4.42%. The percentage of shares outstanding short as of the end of July stood at 2.76%.
Chevron Corporation (NYSE:CVX) was a part of 64 hedge fund portfolios in the second quarter of 2024, up from 62 in the previous quarter. Warren Buffett’s Berkshire Hathaway is the company’s biggest shareholder, with stakes worth $18.55 billion.
11. Baidu, Inc. (NASDAQ:BIDU)
52 Week Range: $79.68 – $151.00
Current Share Price: $84.82
Number of Hedge Fund Holders: 42
Short interest rate: 2.72%
Baidu, Inc. (NASDAQ:BIDU) is one of China’s biggest internet giants specializing in providing search services. It offers the Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services.
Baidu, Inc. (NASDAQ:BIDU), the preeminent search engine in China, generates a significant portion of its income through advertising. It has also set out to strengthen its growth opportunities by investing in artificial intelligence to strengthen its product portfolio.
In recent years, it has augmented its investment in artificial intelligence as a strategic move towards becoming an A.I. company. Baidu, Inc. (NASDAQ:BIDU) asserts that its leading role in artificial intelligence within China positions it favorably to maneuver through a growingly competitive landscape despite noting a decrease in quarterly revenue.
Ernie, Baidu’s expansive language model platform, often heralded as a formidable competitor to OpenAI’s GPT, has been integrated into various application services to enhance the user experience. The platform manages over 600 million requests to its A.I. system daily, which Baidu asserts is the highest recorded among Chinese entities.
The company’s Ernie platform processes over 600 million requests to its A.I. system daily, a figure Baidu attributes to being the highest among Chinese entities. In pursuing artificial intelligence advancements, it has also increased its investment in autonomous vehicles. The company’s Apollo Go robotaxis are now operational in several Chinese cities, boasting the largest fleet of vehicles at 500 in Wuhan.
Regarding its online marketing efforts, which are its main source of income, there was a 2% drop to $2.7 billion in the second quarter. This drop suggests a slowing Chinese economy, currently recovering from a slump in the property sector. This environment has made advertisers more careful with their spending.
Baidu, Inc. (NASDAQ:BIDU) is one of the best 52-week low stocks to buy now according to short sellers, as it trades at a discount with a price-to-earnings multiple of 8. On the other hand, the percentage of shares short as of the end of July stood at 2.72%.
At the end of June, 42 hedge funds tracked by Insider Monkey held stakes in Baidu, Inc. (NASDAQ:BIDU), down from 48 in the previous quarter.
10. Boeing Co (NYSE:BA)
52 Week Range: $159.70 – $267.54
Current Share Price: $173.05
Number of Hedge Fund Holders: 42
Short interest rate: 1.98%
Boeing Co (NYSE:BA) is an industrial company specializing in designing, developing, and manufacturing commercial jetliners, military aircraft satellites, missile defense, and human space flight. Boeing has been facing challenges due to scandals, accidents, and safety concerns, leading to investigations. The controversy has only triggered a steep pullback on the stock, affirming why it is one of the best 52-week low stocks to buy now according to short sellers.
While Boeing Co (NYSE:BA) has felt the full brunt of engineering issues of its airplanes, it remains a key player in the sector, with the aerospace industry soaring to new heights owing to record-breaking air travel demand for its airplanes.
Management shakeup with the appointment of a new CEO, Robert Ortberg, has strengthened the company’s sentiments among investors. AN aerospace veteran, the new CEO, is tasked with restoring Boeing Co (NYSE:BA) ‘s reputation and stabilizing production to meet the growing demand.
Boeing faced significant challenges in the second quarter, resulting in a 14.6% decrease in revenue to $16.9 billion. Net loss expanded by 253.7% to $2.90 per share. The number of planes delivered decreased to 92, and the order backlog fell to $515.9 billion, marking a reversal of the backlog growth seen in the first quarter.
With Airbus being its sole competitor, there remains a glimmer of hope. Investors could find reassurance in the fact that this substantial backlog could potentially be turned around, securing Boeing Co (NYSE:BA) ‘s position in the market.
At the end of the quarter, Boeing Co (NYSE:BA) had $10.9 billion in cash and cash equivalents; its free cash outflow for the first half of the year was $8.3 billion, a significant increase from the $1.8 billion free cash outflow seen in the same period the previous year. As of the end of July, 1.98% of the company’s outstanding shares were sold short.
As of the end of June, 42 hedge funds tracked by Insider Monkey own stakes in Boeing Co (NYSE:BA), down from 54 in the previous quarter.
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.
8. Vipshop Holdings Limited (NYSE:VIPS)
52 Week Range: $11.50 – $20.19
Current Share Price: $12.34
Number of Hedge Fund Holders: 21
Short interest rate: 1.52%
Vipshop Holdings Limited (NYSE:VIPS) is a top consumer cyclical company operating in China’s robust internet retail sector. It offers women’s wear, menswear, sportswear, sporting goods, shoes and bags, accessories, baby and children products, and skincare. The company is also engaged in providing financial services, including supplier financing.
While the stock is up for the year, it is still trading close to its 52-week lows, offering tremendous upside potential owing to the solid underlying fundamentals.
The company’s second-quarter results showcased the flexibility and robustness of its main business strategy. Despite experiencing a dip in sales growth, Vipshop Holdings Limited (NYSE:VIPS) reached peak operational efficiency. This was demonstrated by the strong showing of its primary brands and engaged Super VIP members, highlighting the business’s solid foundation. Revenue in the quarter totaled $3.7 billion as gross profit increased 2.2% year over year to $872.6 million.
Vipshop Holdings Limited (NYSE:VIPS) trades at a discount with a price-to-earnings multiple of 5. In contrast, stocks in the consumer cyclical sector trade at an average P/E of 23. On the other hand, it rewards investors with a dividend yield of 3.39%, ideal for generating some passive income. The percentage of shares outstanding short as of the end of July stood at 1.52%.
By the end of June 2024, 21 among the 912 hedge funds tracked by Insider Monkey were the firm’s investors. Vipshop Holdings Limited (NYSE:VIPS) ‘s largest hedge fund investor is Lei Zhang’s Hillhouse Capital Management due to its $192.77 million stake.
7. Comcast Corporation (NASDAQ:CMCSA)
52 Week Range: $36.43 – $47.30
Current Share Price: $40.24
Number of Hedge Fund Holders: 61
Short interest rate: 1.44%
Comcast Corporation (NASDAQ:CMCSA) is a communication services company that operates as a media and technology company offering residential broadband and wireless connectivity services. Its Business Services Connectivity segment offers broadband wireline voice and wireless services.
CMCSA’s lackluster performance compared to wider market benchmarks over the last year can be linked to its reduced customer acquisition rate in the initial three months. The firm experienced a customer loss of 65,000 during this period. However, the company surpassed Wall Street’s expectations for both revenue and earnings per share (EPS) in its quarterly report on April 25.
Comcast Corporation (NASDAQ:CMCSA) brought in $30.06 billion in revenues during the first three months, surpassing the $29.87 billion market forecasts. It also delivered $3.86 billion in net profit, or a profit per share (EPS) of 97 cents, which was higher than the market’s predictions of $3.63 billion and 91 cents per share, respectively.
It also saw strong growth in its mobile service segment, with an increase of 289,000 wireless subscriptions in the period. However, there was a decline of 487,000 in its cable and broadband customer base and 65,000 in its broadband customers. This drop in broadband subscribers has been a recurring problem for the entertainment and media conglomerate in the past few quarters.
Comcast Corporation (NASDAQ:CMCSA) stands out as one of the best 52-week low stocks to buy now, according to short sellers, as it has increased its dividend by 6.9% to $1.24 a share. The board has also approved a $15 billion stock buyback program affirming its dedication to returning value to shareholders. The stock appears to be trading at a discount close to its 52-week low with a forward price-to-earnings multiple of 9 while offering a 3.11% dividend yield. The percentage of shares short as of the end of July stood at 1.44%
As per Insider Monkey’s database, 61 hedge funds owned stakes in Comcast Corporation (NASDAQ:CMCSA) at the end of June, down from 63 in the previous quarter. Among these hedge funds, First Eagle Investment Management was the company’s leading stakeholder in Q2, with stakes worth $1.25 billion.
6. ConocoPhillips (NYSE:COP)
52 Week Range: $102.27 – $135.18
Current Share Price: $112.43
Number of Hedge Fund Holders: 72
Short interest rate: 1.37%
ConocoPhillips (NYSE:COP) is one of the best 52-week low stocks to buy now, according to short sellers. The company explores and markets crude oil, natural gas, and liquefied natural gas. The stock is only up 8% from its 52-week low, signaling a significant pullback over the past year.
ConocoPhillips (NYSE:COP)’s earnings have grown significantly over the last three months. By the end of June 2024, the company reported a revenue growth rate of around 10.27%, marking a notable rise in its overall income, largely due to increased production and higher oil prices. However, when compared to its rivals, the company faced challenges, with its growth rate falling short of the average in the Energy sector.
ConocoPhillips (NYSE:COP) ‘s profit margin stands out, surpassing the norm in the industry. With a remarkable profit margin of 17.05%, the company demonstrates robust profitability and efficient management of costs. ConocoPhillips’s debt-to-equity ratio falls below the sector average. With a ratio of 0.37, the firm depends less on borrowing, keeping a better equilibrium between its debt and equity, which investors see as a favorable aspect.
In the lead-up to the U.S. presidential elections, the oil and natural gas industry, encompassing ConocoPhillips, might experience a surge in activity, investment, and exports if a potential Trump administration comes into power.
The Federal Trade Commission closely examines ConocoPhillips (NYSE:COP) ‘s proposed merger with Marathon Oil. Despite this regulatory challenge, both companies are hopeful about the merger’s future and are collaborating closely with the FTC, expecting the deal to be completed by the fourth quarter of 2024. These are the latest updates on the company’s operations.
While trading at a price-to-earnings multiple of 12 compared, ConocoPhillips (NYSE:COP) rewards investors with a 2.80% dividend yield for generating some passive income. The short interest on the stock stood at 1.37% as of the end of July.
According to Insider Monkey’s database, there are 72 hedge funds bullish on ConocoPhillips (NYSE:COP) as of the end of June, up from 62 in the preceding quarter. With over 14.52 million shares, Eagle Capital Management was the company’s leading stakeholder in the second quarter.
Here is what Invesco Growth and Income Fund said about ConocoPhillips (NYSE:COP) in its Q2 2024 investor letter:
“Stock selection in the industrials and health care sectors detracted from relative performance during the quarter. Selection and an underweight in consumer staples also hurt relative return as the sector was one of just two index sectors with a positive return for the quarter. ConocoPhillips (NYSE:COP): The company announced its acquisition of Marathon Oil in May. The deal is expected to increase earnings and will increase the scale of Conoco’s production assets. However, the stock traded lower on the news.”
5. NetEase Inc (NASDAQ:NTES)
52 Week Range: $80.63 – $118.90
Current Share Price: $83.53
Number of Hedge Fund Holders: 35
Short interest rate: 0.76%
Headquartered in Hangzhou, China, NetEase, Inc. (NASDAQ:NTES) is one of the best 52-week low stocks to buy now, according to short sellers, for gaining exposure in China’s Communication service sector. The company distributes online games, music streaming, online intelligent learning services, and internet content services businesses.
Over the past year, NetEase, Inc. (NASDAQ:NTES) has underperformed, given that it is only up by about 2% from its 52-week lows. Amid the underperformance, the company delivered solid Q2 2024 results with net revenues totaling $3.5 billion, up 6.7% per year. The company attributed the increase to the success of its games, including Once Human and Maraca: Bladepoint Mobile, and their continued expansion across various genres and platforms.
Likewise, A.I. integration in game development has led to a 200% year-over-year growth in AI-driven subscription services. NetEase, Inc. (NASDAQ:NTES) is positioned for continued growth amid increased investment in A.I. technology and a diverse gaming portfolio. Its strategic partnership with Blizzard and the development of new titles are anticipated to contribute to future successes.
NetEase’s price-to-earnings (P/E) ratio multiple of 11 and its even more enticing adjusted P/E ratio for the past year, as of the first quarter of 2024, at 12.5, shows it is trading at a discount compared to its expected earnings growth. This makes NetEase an appealing investment choice considering its future growth potential.
NetEase, Inc. (NASDAQ:NTES) ‘s dedication to rewarding its shareholders is clear, with a history of increasing its dividend for three years and keeping dividend payments for 12 years straight. This affirms why it is one of the best stocks trading at 52-week lows. As of 2024, the dividend yield is 3.05%, demonstrating the company’s commitment to delivering steady returns to its investors. The percentage of shares short as of the end of July stood at 0.76%
The number of hedge funds tracked by Insider Monkey owning stakes in NetEase, inc. (NASDAQ:NTES) fell from 41 to 35 during the second quarter of 2024. Orbis Investment Management held the largest position in NetEase, Inc. (NASDAQ:NTES), owning 1.91 million shares valued at $182.28 million.
Polen Emerging Markets Growth Strategy stated the following regarding Net Ease, Inc. (NASDAQ: NTES) in its first quarter 2024 investor letter:
“NetEase, Inc. (NASDAQ:NTES) is one of the top players in China’s video game industry and saw decent revenue growth in 2023, particularly in its games division, with profit growth close to 20%. The stock also continues to recover after gaming restrictions announced last quarter in China were not nearly as bad as first feared.”
4. Rio Tinto Group (NYSE:RIO)
52 Week Range: $59.80 – $75.09
Current Share Price: $64
Number of Hedge Fund Holders: 29
Short interest rate: 0.44%
Rio Tinto Group (NYSE:RIO) is a basic materials juggernaut that is currently trading close to its 52-week lows. The company explores mines and processes mineral resources in Australia. It mostly mines Copper, Iron ore, gold, silver, and Molybdenum.
Amid the underperformance in the stock market, Rio Tinto Group (NYSE:RIO) has been firing on all angles as it has been consistently profitable and growing. Disciplined investments have driven the growth to strengthen operations and progress in major projects for profitable organic growth.
The company’s copper production is growing by 2% in 2024, with plans to deliver around 3% of compound annual growth by 2024 to 2028. For the first six months of the year, Rio Tinto delivered an underlying EBITDA of $12.1 billion with a recorded free cash flow of $2.8 billion
A strong balance allows the company to maintain a 50% interim payout with $2.9 billion in ordinary dividends. Even as the company trades near its 52-week low, it has already committed $2.9 billion to be returned to shareholders through dividends. Rio Tinto Group (NYSE:RIO) boasts a 6.90% dividend yield, ideal for passive income investors.
On the other hand, the stock appears undervalued while trading at a price-to-earnings multiple of 8, which is a 68% discount from the basic materials industry average P/E of 25.90.
At the end of June, 29 hedge funds tracked by Insider Monkey reported having stakes in Rio Tinto Group (NYSE:RIO), down from 37 in the previous quarter.
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.
2. BP p.l.c. (NYSE:BP)
52 Week Range: $32.51.38 – $40.84
Current Share Price: $34.38
Number of Hedge Fund Holders: 38
Short interest rate: 0.23%
BP p.l.c. (NYSE:BP) is an oil and integrated company and one of the best 52-week low stocks to buy now according to short sellers for exposure in the energy sector. It produces natural and integrated gas and power, trades gas, and operates onshore and offshore wind power.
The stock is trading close to its 52-week lows, an underperformance that comes as a surprise to solid underlying fundamentals. The company benefits from high oil prices that have found support above $75 a barrel.
BP p.l.c. (NYSE:BP) shares are trading near two-year lows, hurt by the company’s shift from the oil and gas business. Even as the company tries to move away from the fossil fuel business, a good chunk of its profits comes from the lucrative business. Nevertheless, the company is still investing in the fossil fuel business as it looks to safeguard earnings.
It remains one of the best stocks to buy at 52-week lows on maintaining the pace of its share buybacks as it continues to return value to shareholders. BP p.l.c. (NYSE:BP) has already announced a new $1.75 billion buyback program, much bigger than the $1.5 billion it executed late last year. The company plans to return nearly $14 billion by the end of 2025.
B.P.’s new chief executive, Murray Auchincloss, said: “Looking back, 2023 was a year of strong operational performance with real momentum in delivery right across the business. And as we look ahead, our destination remains unchanged, focused on growing the value of B.P.”
Late last year, BP p.l.c. (NYSE:BP) hiked its dividend by 10% to 7.27 cents as it continues to return optimum value to shareholders; its dividend yield currently stands at 5.63%.
On the other hand, the short interest rate on the stock as of the end of July stood at 0.23% of the outstanding shares of the stock.
According to Insider Monkey’s database, there are 38 hedge funds that are bullish on BP p.l.c. (NYSE:BP) as of the end of June, down from 40 in the preceding quarter. With over 21.81 million shares, Fisher Asset Management was the company’s leading stakeholder in the second quarter.
1. POSCO Holdings (NYSE:PKX)
52 Week Range: $58.00 – $114.08
Current Share Price: $65.01
Number of Hedge Fund Holders: 8
Short interest rate: 0.19%
POSCO Holdings (NYSE:PKX) is a comprehensive steel manufacturer. The corporation is involved in creating, importing, distributing, and exporting steel items, including hot and cold rolled steel, stainless steel, plates, wire rods, and silicon steel sheets, in addition to pig iron production.
The South Korean steel behemoth delivered strong results in the second quarter of 2024, with a significant 2.5% rise in earnings and a 29% increase in operating earnings. The firm’s emphasis on the Rechargeable Battery Materials sector and key expansion plans, like growing the Infrastructure division and advancing the Stage 4 Myanmar gas field project, has been positively received by investors.
Even though there was a drop in production and sales due to the shutdown of Po Long blast furnace 4, POSCO Holdings (NYSE:PKX) has been able to boost its operating earnings, benefiting from higher selling prices for products and reduced costs for raw materials. The company also pointed out progress in its efforts to produce low-carbon steel and enhancements in its operational efficiency.
POSCO anticipates a challenging sales environment but expects a restoration of production levels and lower input costs in Q3. The company is optimistic about further profit improvement in the upcoming quarter compared to Q2. It focuses on increasing sales in South Korea and leveraging operations in Mexico and other countries to promote sales in the Americas.
POSCO Holdings (NYSE:PKX) is hopeful of additional profit growth in the next quarter compared to the previous one. POSCO is concentrating on boosting sales in South Korea and using its operations in Mexico and other nations to encourage sales in the Americas.
The firm currently trades at a price-to-earnings (P/E) ratio of 18.76, making it attractive to investors seeking steady profits at a fair valuation. Furthermore, the firm’s enduring dedication to paying dividends, with a history of 32 years straight, could motivate investors. This reliability in distributing profits to investors stands out in a sector known for its fluctuations and cycles. Additionally, the percentage of shares outstanding short stood at 0.19% as of July.
After digging through 912 hedge funds for their Q2 2024 holdings, Insider Monkey found 8 POSCO Holdings (NYSE:PKX) investors. Ken Griffin’s Citadel Investment Group was the biggest investor, as it owned $3.30 million worth of shares.
The best 52-week low stocks to buy now according to short sellers, are of companies trading at discounted valuations with tremendous upside potential. However, given that the artificial intelligence arms race is just but starting, there are under-the-radar AI stocks trading at highly discounted valuations that hold greater promise for anyone looking to diversify their portfolio. If you are looking for an AI stock that is more promising than the top activist investment plays, check out our report about the cheapest AI stock.
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