Historically, though, if you look at the pattern of infrastructure improvements in the wireless sector and in PCs (commonly known as the tech replacement cycle), LTX-Credence finds its boosts about once every three to four years. The last time LTX-Credence really had an exceptional sales year was 2010, so I feel fairly confident when CEO Dave Tacelli proclaims that the second half of 2013 will be much better than the first. Going with the tech replacement trends and being well protected by a hefty cash position, I feel LTX-Credence could surprise investors over the next two to three years.
Drink up this stock
I’ve said it before and I’ll say it again: If basic needs stocks hit a new 52-week low, there’s a really, really good chance that’s a strong buying opportunity.
Brazil’s water and sewage giant Companhia de Saneamento Basico (ADR) (NYSE:SBS), better known as SABESP, have seen shares halved in the past couple of months on numerous concerns. First, there are worries that Brazil’s economic growth is slowing, which could adversely affect SABESP’s bottom line. Second, SABESP has been expanding its infrastructure and customers reach, which has also allowed its balance sheet to become more riddled with debt. Finally, there are ongoing political concerns in South America that threaten to derail growth.
What I’m here to point out is that these are nothing more than concerns at this point and the fact of the matter is that Companhia de Saneamento Basico (ADR) (NYSE:SBS) is delivering consistent growth. In its second-quarter results released last week, SABESP delivered 13% net operating revenue growth and a 24% rise in net income. I’m definitely not a fan of Companhia de Saneamento Basico (ADR) (NYSE:SBS)’s debt levels, but I’m comforted by the near-certainty that the water utility and sewage demand business brings to the table. With a minuscule forward P/E of just 6, now is the time to drink up this overseas deep-value play.
Foolish roundup
This week’s theme is all about buying into businesses where a recent string of short-term bad news has been blown out of proportion. Potash, semiconductor equipment, and water demand are all going to rise over the long term, which bodes well for all three of these companies if they can keep their costs under control and remain innovative.
I’m so confident that these three names will bounce off their lows that I’m going to make a CAPScall of outperform on each one.
The article 3 Stocks Near 52-Week Lows Worth Buying originally appeared on Fool.com and is written by Sean Williams.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool recommends Companhia de Saneamento Basico (ADR) (NYSE:SBS) and Sociedad Quimica y Minera (ADR) (NYSE:SQM).
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