It’s been a volatile week for the markets, as all three major indexes fell sharply on Friday as interest rate hike fears resurfaced and crude futures sold off hard. Although the Fed has repeatedly hinted that the coming rate hikes will be gradual, traders went into ‘risk off’ mode and the sudden change in sentiment caused several stocks to hit 52-week lows.
In this article, we’ll examine five companies that hit yearly lows this week and we use the latest 13F data to see how the smart money traded the five equities in the second quarter. Those companies are Cameco Corporation (USA) (NYSE:CCJ), SunPower Corporation (NASDAQ:SPWR), Tractor Supply Company (NASDAQ:TSCO), Sprouts Farmers Market Inc (NASDAQ:SFM), and Stericycle Inc (NASDAQ:SRCL),
At Insider Monkey, we track around 750 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on, can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see the details here).
Cameco Corporation (USA) (NYSE:CCJ) touched a 52-week low on Friday as sentiment around the uranium miner remains bearish. Shares of Cameco have retreated sharply in 2016 due to soft uranium prices and spotty execution. For the second quarter, Cameco reported a surprise loss of $0.14 per share as uranium sales volumes fell and prices remained weak; analysts had estimated a profit of $0.09 per share. Lower-than-expected full-year revenue guidance also hurt the stock in some traders’ eyes. Uranium prices will need to rise for Cameco to do well. 19 funds in our system had a bullish position in Cameco Corporation (USA) (NYSE:CCJ) at the end of June, down by two funds from the end of March.
Despite China and the United States formally agreeing to the Paris Accords last week, SunPower Corporation (NASDAQ:SPWR) can’t seem to escape its downtrend. Shares of the solar producer hit a 52-week low of $9.27 on the last day of the week as traders remain concerned about oversupply in the industry. Although SunPower is one of the stronger companies in the sector and supply and demand will eventually balance out, it is uncertain when the current solar down cycle will end. The number of funds tracked by Insider Monkey with holdings in SunPower Corporation (NASDAQ:SPWR) rose by four quarter-over-quarter to 19 at the end of June.
On the next page, we’ll find out why Tractor Supply Company, Sprouts Farmers Market, and Stericycle Inc hit 52-week lows last week.