In this article, we discuss 10 52-week low stocks to buy now.
The 52-week low for a stock reflects the least closing price the security has traded at over a 52-week timeline. Many investors seek out stocks that have reached their lowest price points since they follow the ‘buy low, sell high’ strategy in order to profit from share price appreciation. It is important to gauge via proper research whether the stocks have hit their 52-week lows due to their cyclical nature or if these companies have truly lost value irreparably.
While some traders purchase these stocks when they hit significant lows and hope for positive catalysts to boost prices in the future, others open short positions in these companies and expect the securities to bottom out further. Investors often purchase 52-week low stocks to engage in short-term trading strategies such as day trading or swing trading, which enables them to profit from market irregularities rather than depending on long-term capital gains.
On August 1, the stock market started tumbling once again, despite some gains in July. Following a three-day winning streak, the S&P 500 was down 0.28% on August 1, the Nasdaq Composite fell 0.18%, and the Dow Jones Industrial Average slipped 0.14%. The oil prices also dropped, with Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and Devon Energy Corporation (NYSE:DVN) entering August in the red.
Image by Sergei Tokmakov Terms.Law from Pixabay
Our Methodology
We selected stocks that hit their 52-week low share prices on August 1. However, analysts remain optimistic that these companies have the market positioning, positive catalysts, and competitive advantages to perform well in the future. We have arranged this list according to the hedge fund sentiment around the securities as of Q1 2022, which was assessed using Insider Monkey’s database of 900+ elite hedge funds.
52-Week Low Stocks to Buy Now
10. Zhihu Inc. (NYSE:ZH)
Number of Hedge Fund Holders: 5
52-Week Low as of August 1: $1.20
Zhihu Inc. (NYSE:ZH) is a Beijing-based company that operates a digital content community in China. Its platform allows people to find inspiration, make decisions, and enjoy online. The company also specializes in technology, business support, and consulting services. Zhihu Inc. (NYSE:ZH)’s Q1 revenue climbed 55.5% year over year to $117.2 million, beating Wall Street estimates by $10.93 million. Zhihu Inc. (NYSE:ZH) stock hit a 52-week low of $1.20 on August 1.
On July 5, Goldman Sachs analyst Lincoln Kong reiterated a Neutral rating on Zhihu Inc. (NYSE:ZH) and lowered the firm’s price target on the stock to $2.60 from $4.70. He predicted that Zhihu Inc. (NYSE:ZH), which is the seventh-largest social media platform in China in terms of traffic, will continue to be a market share gainer within the digital advertising sector. However, the analyst believes that solid execution is needed to surpass “multiple hurdles” and a breakeven timeline that might be obstructed by higher operating expenses.
According to Insider Monkey’s data, Zhihu Inc. (NYSE:ZH) was part of 5 public hedge fund portfolios at the end of the first quarter of 2022, with collective stakes worth $51.3 million, compared to 13 the prior quarter worth $150.3 million. Jonathan Guo’s Yiheng Capital is the biggest stakeholder of the company, boosting its position by 405% in Q1 2022. The fund owned 18.3 million shares of Zhihu Inc. (NYSE:ZH) valued at $44.5 million.
Chinese tech stocks like Zhihu Inc. (NYSE:ZH) have faced a bloodbath in 2022 as investors flee growth stocks. That’s why only 5 of the 900 funds we track have stakes in this company. Hedge funds are instead loading up on defensive and dividend players like Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and Devon Energy Corporation (NYSE:DVN).
9. Exela Technologies, Inc. (NASDAQ:XELA)
Number of Hedge Fund Holders: 7
52-Week Low as of August 1: $1.325
Exela Technologies, Inc. (NASDAQ:XELA) is headquartered in Irving, Texas, and the company specializes in transaction processing solutions, enterprise information management, document management, and digital business process services. Exela Technologies, Inc. (NASDAQ:XELA) operates through three segments – Information & Transaction Processing Solutions, Healthcare Solutions, and Legal & Loss Prevention Services. On July 13, Exela Technologies, Inc. (NASDAQ:XELA) stock gained around 22% after the company confirmed that it had received an acquisition proposal of $200 million for one of its business units. The stock has reached a 52-week low of $1.32 as of August 1.
On May 12, B. Riley analyst Zach Cummins reiterated a Neutral rating on Exela Technologies, Inc. (NASDAQ:XELA) and lowered the firm’s price target on the shares to $0.35 from $0.55 following the Q1 results. The company’s revenue has shown signs of stabilization and the improving renewal rate, paired with robust contracting activity signals that Exela Technologies, Inc. (NASDAQ:XELA) is well positioned to return to growth in the second half of 2022.
Among the hedge funds tracked by Insider Monkey, Ken Griffin’s Citadel Investment Group held a leading stake in Exela Technologies, Inc. (NASDAQ:XELA), comprising 1.15 million shares worth $481,000. Overall, 7 hedge funds were bullish on Exela Technologies, Inc. (NASDAQ:XELA) at the end of March 2022, compared to 11 funds in the preceding quarter.
8. I-Mab (NASDAQ:IMAB)
Number of Hedge Fund Holders: 14
52-Week Low as of August 1: $8.54
I-Mab (NASDAQ:IMAB) is a Shanghai-based clinical stage biopharmaceutical company that develops and markets biologics for cancer and autoimmune disorders. On July 22, I-Mab (NASDAQ:IMAB) reported that the first patient in China had been treated with TJ-CD4B, also known as ABL111, in a Phase 1 international multi-center clinical trial for patients diagnosed with solid tumors. I-Mab (NASDAQ:IMAB) also announced in mid-June that two of the assets it has licensed from MorphoSys AG (NASDAQ:MOR), felzartamab and TJ210, are gaining recognition globally through new license agreements.
On May 31, H.C. Wainwright analyst Andrew Fein reiterated a Buy rating on I-Mab (NASDAQ:IMAB) but lowered the price target on the shares to $70 from $80. The analyst said the uiledlimab update is a “step in the right direction, but a leap may be needed”. Similarly, on May 27, Piper Sandler analyst Joseph Catanzaro reiterated an Overweight rating on I-Mab (NASDAQ:IMAB) and lowered the price target on the stock to $35 from $80. While the analyst’s investment thesis did not change, he acknowledged that “biotech valuations have re-rated,” and lowered the price estimates for companies in his coverage to “reflect this recent pullback and current market conditions”.
According to Insider Monkey’s data, 14 hedge funds were bullish on I-Mab (NASDAQ:IMAB) at the conclusion of Q1 2022, compared to 19 funds in the earlier quarter. Billionaire Lei Zhang’s Hillhouse Capital Management is the largest position holder in the company, with 7.18 million shares worth $116.6 million.
7. Weibo Corporation (NASDAQ:WB)
Number of Hedge Fund Holders: 14
52-Week Low as of August 1: $18.13
Weibo Corporation (NASDAQ:WB) is a Beijing-based company that operates a social media platform for content creation and content sharing in China. It operates through two segments – Advertising and Marketing Services, and Value-Added Services. As of June 2022, Weibo Corporation (NASDAQ:WB)’s user base exceeded 500 million and the company has established itself as a solid regional brand, and it appears well-positioned to gain a sizable share of the Chinese internet and communications market. As of August 1, the stock reached a 52-week low of $18.13.
Benchmark analyst Fawne Jiang on June 1 reiterated a Buy recommendation on Weibo Corporation (NASDAQ:WB) but lowered the price target on shares to $39 from $56. While Weibo Corporation (NASDAQ:WB) posted “better-than-feared” Q1 results, the company reported a Q2 outlook that was below expectations due to an ad growth setback amid the COVID lockdowns, the analyst told investors. A surge in content costs, paired with the reversal of one-time cost benefits, could further challenge margins in FY22, but she is forecasting ad improvement in the second half and the next fiscal year, the analyst added.
Among the hedge funds tracked by Insider Monkey, 14 funds reported long positions in Weibo Corporation (NASDAQ:WB) at the end of Q1 2022, with collective stakes worth $87 million, compared to 13 funds in the prior quarter worth $122.3 million. Paul Marshall and Ian Wace’s Marshall Wace LLP is a prominent stakeholder of the company, with 709,186 shares valued at $17.3 million.
6. Latham Group, Inc. (NASDAQ:SWIM)
Number of Hedge Fund Holders: 15
52-Week Low as of August 1: $5.34
Latham Group, Inc. (NASDAQ:SWIM) is a New York-based company that designs and installs in-ground residential swimming pools, pool covers, and pool liners in North America, Australia, and New Zealand. The company on May 12 authorized a share repurchase program where it can buy back up to $100 million of its common stock over the next three years. As of August 1, the stock had plummeted about 79% year to date to reach a 52-week low of $5.34.
On July 14, Barclays analyst Matthew Bouley reaffirmed an Overweight rating on Latham Group, Inc. (NASDAQ:SWIM) and lowered the price target on the shares to $11 from $19. The analyst predicts this earnings season to be the “start of the necessary cycle of estimate reductions” for the home building products sector that will “eventually herald a bottoming process and multiple recovery”. He remains “incrementally selective” on building products.
Among the hedge funds tracked by Insider Monkey, Richard S. Meisenberg’s ACK Asset Management is the leading position holder in Latham Group, Inc. (NASDAQ:SWIM), with 1.90 million shares worth $25.2 million. Overall, 15 hedge funds were bullish on the stock at the end of Q1 2022, up from 9 funds in the prior quarter.
Like Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and Devon Energy Corporation (NYSE:DVN), Latham Group, Inc. (NASDAQ:SWIM) traded lower entering August 2022.
Here is what Baron Funds has to say about Latham Group, Inc. (NASDAQ:SWIM) in its Q2 2021 investor letter:
“In the most recent quarter, we participated in the IPO of Latham Group, Inc., the largest manufacturer of fabricated pools globally. We believe this company is well positioned to benefit from several multi-year tailwinds including anticipated strength in the U.S. housing market, a cyclical recovery in new pool construction, and a secular growth opportunity as the company’s fiberglass pools offer several advantages versus most other pool options (concrete and vinyl, for example) including lower costs and maintenance, faster build times, and higher manufacturer profitability.”
5. Agora, Inc. (NASDAQ:API)
Number of Hedge Fund Holders: 17
52-Week Low as of August 1: $4.695
Agora, Inc. (NASDAQ:API) is a Chinese company offering real-time engagement platform-as-a-service (RTE-PaaS) that allows developers to embed real-time video, voice, and messaging options into applications. The company expects FY22 revenues to fall in the range of $176 million to $178 million, compared to a consensus of $177.34 million. Agora, Inc. (NASDAQ:API) posted a revenue of $38.59 million in Q1 2022, beating Street consensus by $1.59 million.
On May 16, Nomura analyst Bing Duan upgraded Agora, Inc. (NASDAQ:API) to Buy from Neutral with a price target of $10, down from $11. While the analyst slightly lowered the FY22-24 revenue forecasts to factor in a slower-than-expected recovery, he lifted his earnings estimates on the back of improved loss margins and believes “demand and policy shock” is already reflected in the share price. The company is utilizing its $200 million buyback program and rating upgrade indicates Agora, Inc. (NASDAQ:API)’s stabilizing business, the analyst added.
According to Insider Monkey’s data, 17 hedge funds were long Agora, Inc. (NASDAQ:API) at the end of Q1 2022, up from 12 funds in the last quarter. Dawid Krige’s Cederberg Capital is the leading stakeholder of the company, with 2.19 million shares worth $21.8 million.
Here is what Tao Value has to say about Agora, Inc. (NASDAQ:API) in its Q3 2021 investor letter:
“As witnessed in the past quarter, the government intervention in the Chinese private sector is elevated to an unprecedented level. Given this background, I thoroughly reviewed all our Chinese holdings and made a few changes. We exited Agora (ticker: API) as we estimated that it has 25+% of evaporating revenue tied to online education use cases, but the management seemed to be evasive about the potential impact.”
4. Eventbrite, Inc. (NYSE:EB)
Number of Hedge Fund Holders: 18
52-Week Low as of August 1: $8.51
Eventbrite, Inc. (NYSE:EB) is a California-based company that provides a self-service ticketing and experience technology platform for event managers in the United States and internationally. In Q2 2022, Eventbrite, Inc. (NYSE:EB) reported that paid ticket volume rose 37% year-over-year to 21.9 million, in addition to growth in event volume and scale. The company recorded a revenue of $66 million for the June quarter. However, the stock reached a 52-week low of $8.51 on August 1.
On July 14, Piper Sandler analyst Matt Farrell assumed coverage of Eventbrite, Inc. (NYSE:EB) with an Overweight rating and a $13 price target. As the pandemic restrictions ease, Eventbrite, Inc. (NYSE:EB)’s management has shifted its strategy towards frequent creators, modified the financial strategy, and added a creator marketing solution in Boost, the analyst told investors. He believes Boost can be a “game changer” for Eventbrite, Inc. (NYSE:EB), since it offers social media advertising and email marketing tools to event creators to generate higher ticket sales and reach more customers. The analyst sees Eventbrite, Inc. (NYSE:EB) as a “unique opportunity in small cap tech, even with the risk of potential macro headwinds”.
According to Insider Monkey’s data, 18 hedge funds were bullish on Eventbrite, Inc. (NYSE:EB) at the end of March 2022, compared to 20 funds in the earlier quarter. Portsea Asset Management is the leading stakeholder of the company, with 5.6 million shares worth $82.6 million.
Here is what Artisan Partners has to say about Eventbrite, Inc. (NYSE:EB) in its Q2 2021 investor letter:
“Eventbrite is the largest software and ticketing platform helping event creators plan, promote and produce live events in small-and-mid markets. The company generates revenue by charging a per-ticket fee on paid tickets and has a strong foothold in the small-and-mid markets—nearly 20X the size of the next largest competitor. We believe Eventbrite is well-positioned to benefit from a sharp increase in demand for live events amid the broader re-opening of the US economy—a dynamic it has already witnessed in Australia with live events bouncing back to approximately 90% of 2019 levels. We expect this to be amplified by significant cost cuts made during the pandemic (>30% of 2019 revenue) remaining in place. Longer term, we believe Eventbrite should benefit from the secular trend toward consumer experiences, an industry growing over 8% per year prior to the pandemic.”
3. Offerpad Solutions Inc. (NYSE:OPAD)
Number of Hedge Fund Holders: 21
52-Week Low as of August 1: $2.11
Offerpad Solutions Inc. (NYSE:OPAD) is an Arizona-based company that buys, sells, rents, and renovates residential properties in the United States. The company operates iBuying, an on-demand real estate solutions platform for homeowners. On June 27, Offerpad Solutions Inc. (NYSE:OPAD) joined the Russell 2000 and Russell 3000 Indexes. The stock reached a 52-week low of $2.11 on August 1.
Cantor Fitzgerald analyst Brett Knoblauch initiated coverage of Offerpad Solutions Inc. (NYSE:OPAD) on July 22 with an Overweight rating and a $10 price target. The analyst noted that the stock is down about 61% year-to-date as investors are concerned about a slowdown in the housing market, driven by soaring home prices and a significant elevation in mortgage rates. However, the analyst remains confident in the long-term outlook of iBuying gaining market share and Offerpad Solutions Inc. (NYSE:OPAD) being a leading player in the digital real estate market.
According to Insider Monkey’s data, 21 hedge funds were bullish on Offerpad Solutions Inc. (NYSE:OPAD) at the conclusion of Q1 2022, up from 18 funds in the preceding quarter. Stuart J. Zimmer’s Zimmer Partners is the biggest shareholder of the company, with 3.6 million shares worth $18.5 million.
2. Community Health Systems, Inc. (NYSE:CYH)
Number of Hedge Fund Holders: 25
52-Week Low as of August 1: $3.03
Community Health Systems, Inc. (NYSE:CYH) was founded in 1985 and is headquartered in Franklin, Tennessee. The company operates general acute care hospitals in the United States, offering emergency rooms, general and specialty surgery, critical care, internal medicine, obstetrics, and rehabilitation services. On July 29, Oppenheimer analyst Michael Wiederhorn reiterated an Outperform rating on Community Health Systems, Inc. (NYSE:CYH) but lowered the firm’s price target on the stock to $6 from $16. The company’s disappointing results were due to a weak top-line, driven by soft non-COVID volumes in the first half of Q2, and the company also continued to see slower improvements on the labor front, the analyst told investors in a research note. The analyst continues to have faith in Community Health Systems, Inc. (NYSE:CYH)’s longer-term outlook.
Among the hedge funds tracked by Insider Monkey, 25 funds reported owning stakes in Community Health Systems, Inc. (NYSE:CYH) at the end of the first quarter of 2022, compared to 28 funds in the last quarter. Eversept Partners is the largest stakeholder of the company, with 7.12 million shares worth $84.6 million.
1. RenaissanceRe Holdings Ltd. (NYSE:RNR)
Number of Hedge Fund Holders: 28
52-Week Low as of August 1: $125.67
RenaissanceRe Holdings Ltd. (NYSE:RNR) provides reinsurance and insurance products in the United States and internationally. The company operates through Property, Casualty, and Specialty segments. RenaissanceRe Holdings Ltd. (NYSE:RNR) stock reached a 52-week low of $125.67 on August 1. The company posted a Q2 non-GAAP EPS of $5.51 on July 28, beating market estimates by $0.41.
On July 27, Wells Fargo analyst Elyse Greenspan reaffirmed an Overweight rating on RenaissanceRe Holdings Ltd. (NYSE:RNR) but lowered the price target on the shares to $169 from $185. The analyst observed that RenaissanceRe Holdings Ltd. (NYSE:RNR) shares traded down, potentially to reflect its comments about pausing repurchases for now to preserve capital in order to drive top-line growth.
According to Insider Monkey’s data, RenaissanceRe Holdings Ltd. (NYSE:RNR) was part of 28 hedge fund portfolios at the end of Q1 2022, compared to 30 funds in the previous quarter. Mason Hawkins’ Southeastern Asset Management featured as the largest stakeholder of the company, with 939,292 shares worth about $149 million.
Here is what Longleaf Partners Small-Cap Fund has to say about RenaissanceRe Holdings Ltd. (NYSE:RNR) in its Q4 2021 investor letter:
“RenaissanceRe (11%, 0.54%; 22%, 0.99%) the Bermuda-domiciled reinsurance company and a new position in 2021, was a top contributor in the fourth quarter. We know the reinsurance industry well, having invested in the sector for multiple decades, and we were thrilled to have the opportunity to invest in the business at a discount. RenRe has a reputation as a leading Catastrophe risk reinsurance underwriter – although the business mix has diversified over time into third party capital management, casualty and other property risk. RenRe traded below 10x earnings power and around 1x tangible book value in the third quarter as catastrophe headlines punished the entire industry, giving us the opportunity to invest. Management also took advantage of the temporary price discount by buying back 10% of outstanding shares, while the CEO, CFO and several other senior executives invested over $4 million buying shares personally. The share price appreciated in the fourth quarter as the company announced an excess capital buffer of $1 billion, even after third quarter catastrophe hits, and likely continued share repurchases. RenRe is a leader in insurance risk modeling and portfolio construction, and best in class data gathering and analytics are in the company DNA. In the face of significant volatility and disruption for the industry in the form of technology innovation, capital access innovation and climate change risks, RenRe’s competitive advantages in pricing risk and in putting together a sound global portfolio of risk should be well placed to add excess return.”
You can also take a look at 10 Best Dividend Stocks to Buy in 2022 and Top Ten Semiconductor ETFs to Buy in 2022.
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Disclosure: None. 10 52-Week Low Stocks to Buy Now is originally published on Insider Monkey.
