In this article, we will take a detailed look at the 18 Best 52-Week Low Stocks To Buy Now.
Many analysts believe US stocks are poised to grow, albeit slowly, in 2024 despite uncertainties around the election, inflation and the Federal Reserve’s next plan of action. Lori Calvasina from RBC Capital Markets in December said, while talking to CNBC, that the market is poised to grow slowly in the second half of 2024 but for now investors need to rest a little to digest the massive gains seen in the fourth quarter of 2023. Calvasina has a 5,000 target for the S&P 500 for 2024.
Buying solid stocks when they are trading at attractive valuations has been the age-old and time-tested strategy of wise investors. Many believe there are many opportunities for under-the-radar stocks and investors should look beyond just the mega-cap tech stocks like Microsoft Corp (NASDAQ:MSFT), Meta Platforms Inc (NASDAQ:META) and Salesforce Inc (NYSE:CRM).
Long-term investors are always on the lookout for bargains in the market since there are always companies that are trading below their intrinsic value. As the legendary value investor Seth Klarman said long ago in one of his letters to investors, value investing outperforms when everything else in the market is not working:
“I must remind you that value investing is not designed to outperform in a bull market. In a bull market, anyone, with any investment strategy or none at all, can do well, often better than value investors. It is only in a bear market that the value investing discipline becomes especially important because value investing, virtually alone among strategies, gives you exposure to the upside with limited downside risk. In a stormy market, the value investing discipline becomes crucial, because it helps you find your bearings when reassuring landmarks are no longer visible. In a market downturn, momentum investors cannot find momentum, growth investors worry about a slowdown, and technical analysts don’t like their charts. But the value investing discipline tells you exactly what to analyze, price versus value, and then what to do, buy at a considerable discount and sell near full value. And, because you cannot tell what the market is going to do, a value investment discipline is important because it is the only approach that produces consistently good investment results over a complete market cycle.”
Methodology
For this article we first used a stock screener to identify stocks that are trading near or at their 52-week lows. From these stocks we chose 18 companies with the highest number of hedge fund investors. Why hedge funds? Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
18. Aurora Cannabis Inc (NASDAQ:ACB)
Number of Hedge Fund Investors: 7
Canada-based Aurora Cannabis Inc (NASDAQ:ACB) is one of the best 52-week low stocks to buy according to hedge funds.
A total of seven hedge funds tracked by Insider Monkey had stakes in Aurora Cannabis Inc. The most notable hedge fund stakeholder of Aurora Cannabis Inc was Israel Englander’s Millennium Management.
During the second quarter results posted in November 2023, Aurora Cannabis Inc said its revenue jumped 30.3% on a year-over-year basis.
17. BioVie Inc (NASDAQ:BIVI)
Number of Hedge Fund Investors: 7
Clinical stage biopharma company BioVie Inc (NASDAQ:BIVI) ranks 17th in our list of the best 52-week low stocks to buy according to hedge funds. While the stock was trading in the green as of January 26, it has lost about 80% in value over the past 12 months. A big blow for the stock came in November 2023 when BioVie Inc said the primary efficacy endpoint of Phase 3 trial of NE3107 for treatment of mild to moderate Alzheimer’s Disease missed statistical significance “due to exclusions.”
As of the end of the third quarter of 2023, seven hedge funds tracked by Insider Monkey had stakes in BioVie Inc.
16. Brooge Energy Ltd (NASDAQ:BROG)
Number of Hedge Fund Investors: 8
Brooge Energy Ltd (NASDAQ:BROG) shares took a plunge in December 2023 after federal regulators fined Brooge Energy Ltd for allegedly inflating its revenues in documents for a $500 million stock sale.
In October, the stock jumped after Brooge Energy Ltd said it received a takeover offer from Dubai-listed maritime and shipping company Gulf Navigation Holdings.
Insider Monkey’s database of 910 hedge funds shows that eight hedge funds had stakes in Brooge Energy Ltd.
15. SES AI Corp (NYSE:SES)
Number of Hedge Fund Investors: 9
SES AI Corp (NYSE:SES) makes high-performance lithium-metal rechargeable batteries for electric vehicles, electric vehicle take-off and landing, and other applications. The stock has lost about 62% over the past one year.
As of the end of the third quarter of 2023, nine hedge funds tracked by Insider Monkey had stakes in SES AI Corp.
14. Portillos Inc (NASDAQ:PTLO)
Number of Hedge Fund Investors: 13
Quick service restaurants company Portillos Inc (NASDAQ:PTLO) ranks 14th in our list of the best 52-week low stocks to buy according to hedge funds. Over the past one year the stock has lost about 38% in value.
A total of 13 hedge funds in Insider Monkey’s database of 910 funds had stakes in Portillos Inc. The biggest hedge fund stakeholder of Portillos Inc during this period was William B. Gray’s Orbis Investment Management which owns a $78 million stake in Portillos Inc.
13. AerSale Corp (NASDAQ:ASLE)
Number of Hedge Fund Investors: 14
AerSale Corp (NASDAQ:ASLE) shares have lost about 45% over the past one year. Earlier this month AerSale Corp filed a prospectus related to the proposed resale of 9.55 million shares by selling stockholders.
This prospectus is not an offer to sell these securities.
As of the end of the third quarter of 2023, 14 hedge funds out of the 910 funds in Insider Monkey’s database had stakes in AerSale Corp.
12. IHS Holding Ltd (NYSE:IHS)
Number of Hedge Fund Investors: 14
African telecom company IHS Holding Ltd (NYSE:IHS) shares are down by about 48% over the past 12 months. Insider Monkey’s database of 910 hedge funds shows that 14 funds had stakes in IHS Holding Ltd.
In November IHS Holding Ltd posted Q3 results. Revenue in the quarter fell 10.4% year over year to $467 million, beating estimates by $9.13 million.
11. SSR Mining Inc (NASDAQ:SSRM)
Number of Hedge Fund Investors: 14
SSR Mining Inc (NASDAQ:SSRM) ranks 11th in our list of the best 52-week low stocks to buy according to hedge funds. In November SSR Mining Inc posted Q3 results. Revenue in the quarter jumped 131.3% year over year to $385.39 million.
As of the end of the third quarter of 2023, 14 hedge funds tracked by Insider Monkey had stakes in SSR Mining Inc.
Palm Valley Capital Management made the following comment about SSR Mining Inc. in its Q3 2023 investor letter:
“We did not fully sell any positions during the third quarter. We purchased four new names: Avista Corporation (ticker: AVA), Farmland Partners (ticker: FPI), Equity Commonwealth (ticker: EQC), and SSR Mining Inc. (NASDAQ:SSRM). We believe these opportunities materialized because higher interest rates are disproportionately impacting investor sentiment toward certain sectors, even as capitalization-weighted, tech-heavy indexes have powered through the headwinds.
SSR Mining is back in the Fund after a brief hiatus. SSR is a precious metals producer with four mines located in the United States, Turkey, Canada, and Argentina. The company is selling at a meaningful discount to its tangible book value and our calculated net asset value. SSR has a very strong balance sheet with more cash than debt and $4.6 billion in stockholders’ equity. Furthermore, the firm has a history of generating free cash flow, buying back stock, and paying a sustainable dividend.”
10. NovaGold Resources Inc (NYSE:NG)
Number of Hedge Fund Investors: 15
NovaGold Resources Inc (NYSE:NG) shares have lost about 54% over the past one year.
A total of 15 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in NovaGold Resources Inc. The biggest stakeholder of NovaGold Resources Inc during this period was John Paulson’s Paulson & Co which owns an $85 million stake in NovaGold Resources Inc.
9. VNET Group Inc – ADR (NASDAQ:VNET)
Number of Hedge Fund Investors: 17
Chinese internet and data center services company VNET Group Inc – ADR (NASDAQ:VNET) ranks ninth in our list of the best 52-week low stocks to buy according to hedge funds. 17 hedge funds had stakes in VNET Group Inc – ADR as of the end of the September 2023 quarter. The biggest stake in VNET Group Inc – ADR is owned by Seth Fischer’s Oasis Management which owns an $11 million stake in VNET Group Inc – ADR.
8. Vertex Energy Inc (NASDAQ:VTNR)
Number of Hedge Fund Investors: 17
Vertex Energy Inc (NASDAQ:VTNR) recently hit its two-year lows after Fitch downgraded Vertex Energy Inc’s (NASDAQ:VTNR) default rating amid declines in the price difference between refined products and crude oil, known as a crack spread.
As of the end of the third quarter of 2023, 17 hedge funds in Insider Monkey’s database of hedge funds had stakes in Vertex Energy Inc. The most notable hedge fund stakeholder of Vertex Energy Inc was Adam Usdan’s Trellus Management Company which owns a $9.4 million stake. Unlike Microsoft Corp, Meta Platforms Inc and Salesforce Inc, which are highly popular among hedge funds, VTNR is a small company with a lower number of hedge fund investors.
7. B2Gold Corp (NYSE:BTG)
Number of Hedge Fund Investors: 19
Canadian mining company B2Gold Corp (NYSE:BTG) is one of the best 52-week low stocks to buy according to hedge funds. The stock is down by about 33% over the past one year.
A total of 19 hedge funds in Insider Monkey’s database of 910 hedge funds had stakes in B2Gold Corp. The biggest stakeholder of B2Gold Corp was John Overdeck and David Siegel’s Two Sigma Advisors which owns a $34 million stake in B2Gold Corp.
CIBC recently cut its price target on BTG stock to Neutral from Outperform and set a $3.60 price target, down from $4.20.
6. BlackBerry Ltd (NYSE:BB)
Number of Hedge Fund Investors: 19
BlackBerry Ltd (NYSE:BB) stock ranks sixth in our list of the best 52-week low stocks to buy according to smart money investors. In December the stock plunged after weak guidance. For the fourth quarter BlackBerry Ltd said it expects revenue between $150 million and $159 million, well below the average analyst estimate of nearly $190 million. During the third quarter the company’s adjusted EPS came in at $0.01, beating estimates by $0.03.
In addition to BlackBerry, hedge funds are also buying Microsoft Corp, Meta Platforms Inc and Salesforce Inc.
5. bluebird bio Inc (NASDAQ:BLUE)
Number of Hedge Fund Investors: 20
Biotech company bluebird bio Inc (NASDAQ:BLUE) shares have lost about 82% in value over the past one year.
A total of 20 hedge funds in the database of Insider Monkey had stakes in bluebird bio Inc.
4. Petco Health and Wellness Company Inc (NASDAQ:WOOF)
Number of Hedge Fund Investors: 22
Pet food and supplies company Petco Health and Wellness Company Inc (NASDAQ:WOOF) shares have lost about 77% in value over the past one year.
Goldman Sachs recently said in its Americas Retail report for 2024 that retailers that offer ideas in “categories that consumers continue to prioritize” could gain in the year. Petco Health and Wellness Company Inc is one of the stocks Goldman is bullish on.
A total of 22 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Petco Health and Wellness Company Inc.
3. Forward Air Corp (NASDAQ:FWRD)
Number of Hedge Fund Investors: 22
Forward Air Corp (NASDAQ:FWRD) has lost about 55% in value over the past one year. But the stock recently gained after reports that its legal issues with Omni Logistics were settled and Forward Air Corp recently confirmed that it has completed the acquisition of Omni Logistics.
Vulcan Value Partners made the following comment about Forward Air Corporation in its Q3 2023 investor letter:
“During the quarter we sold Forward Air Corporation (NASDAQ:FWRD). The company announced its decision to acquire Omni Logistics for an enterprise value of $3.2 billion. The transaction will significantly increase leverage at the pro forma company and will materially dilute existing shareholders. We also think that the transaction has questionable strategic rationale and significant execution risk. In sum, the transaction not only reduced our estimate of intrinsic value per share, but made that estimate unstable, leading to our decision to exit the position.”
2. National Fuel Gas Co. (NYSE:NFG)
Number of Hedge Fund Investors: 23
National Fuel Gas Co. (NYSE:NFG) ranks second in our list of the best 52-week low stocks to buy according to hedge funds.
As of the end of the third quarter of 2023, 23 hedge funds tracked by Insider Monkey had stakes in National Fuel Gas Co..
Heartland Value Fund made the following comment about National Fuel Gas Company in its Q3 2023 investor letter:
“Utilities. National Fuel Gas is another existing holding we added to in the quarter. NFG is an energy company, with regulated utility assets, involved in the production, transportation, and distribution of natural gas. The stock’s correlation with natural gas prices has been high, so it wasn’t too surprising when the stock fell as natural gas prices declined following last year’s benign winter.
But prices are expected to rebound in the coming months now that the supply issue has been addressed with the steep drop in oil gas rig counts. Demand is also set to improve starting in 2025 with the onset of more U.S. liquefied natural gas (LNG) exports. Meanwhile, this is a well-run business with a track record of financial soundness. NFG, for instance, has raised dividends for 53 consecutive years because of the consistent cash flow generation from its midstream and utility segments.
Yet, when looking at valuations, we see a disconnect. NFG is trading at a 20% discount to its historical valuations compared with traditional oil and gas exploration and production stocks. The relative premium it typically garners is a function of the company’s ability to leverage its pipeline infrastructure to capitalize on higher natural gas prices and the stability of non-energy cash flows. We are positioning the portfolio to take advantage of this opportunity.”
1. Green Plains Inc (NASDAQ:GPRE)
Number of Hedge Fund Investors: 24
Ethanol fuel company Green Plains Inc (NASDAQ:GPRE) shares have lost about 25% over the past one year.
Insider Monkey’s database of 910 funds shows that 24 hedge funds had stakes in Green Plains Inc. The biggest hedge fund stakeholder of Green Plains Inc was Frederick Disanto ‘s Ancora Advisors which owns a $122 million stake.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the 13 Most Buzzing Stocks To Buy Now and the 13 Best Grocery Stocks To Buy Now.
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This article is originally published at Insider Monkey.
