If you want to make money in the stock market then the initial price you pay for your new position is very important. We believe that analyzing stocks that are near their 52 week lows is a good starting point to find cheap stocks.
Here is a list of large cap stocks that are trading within 10% of their 52 weeks lows and ready to bounce. These stocks have low P/E ratios (less than 10) and market caps of at least $20 billion. (Market data is sourced from Finviz)
1- American International Group (AIG): American International Group is an international insurance organization. AIG recently traded at $23.15 and lost 25.51% during the past 12 months. AIG has a market cap of $43.9 billion, P/E ratio of 7.62 and forward P/E ratio of 7.35. The stock has Total Debt / Equity ratio of 0.97 and Beta of 3.57. Bruce Berkowitz’s Fairholme had huge AIG position worth $1.5 billion at the end of March (Bruce Berkowitz stock holdings are here).
2- The Bank of New York Mellon (BK): The Bank of New York Mellon Corporation provides various products and services worldwide. BK recently traded at $19.96 and has a 2.54% dividend yield. BK lost 15.94% during the past 12 months. BK has a market cap of $25.5 billion, P/E ratio of 9.5 and forward P/E ratio of 7.83. The stock has Total Debt / Equity ratio of 0.8 and Beta of 0.74.