In this article, we will look at the Top 10 Large-Cap Stocks to Invest In At 52-Week Lows.
On June 23, Andrew Slimmon, senior portfolio manager at Morgan Stanley, appeared on a CNBC Television interview to discuss the latest sell-off in the market, particularly in the technology sector. He noted that the major stocks experiencing the sell-off are the AI beneficiaries. Slimmon noted that the sell-off does not mean the stocks are expensive; it’s just the overcrowding that has attracted momentum investors, causing sharp selling and buying.
He believes that this is healthy for the market as it keeps extra euphoria away. Moreover, Slimmon noted that as the Federal Reserve has shifted from cutting rates to maybe raising has also caused the bubble to somewhat deflate. He noted that as these stocks are not expensive, these pullbacks are good buying opportunities. Slimmon elaborated that his bullish sentiment is driven by the earnings revision story, which remains stronger than ever.
With that, let’s take a look at some of the Top Large Cap Stocks to Invest In At 52-Week Lows.
Stocks chart
Our Methodology
To curate the list of Top 10 Large Cap Stocks to Invest In At 52-Week Lows, we used the Finviz Stock Screener, CNN, and Insider Monkey’s hedge fund database. Using the screener, we aggregated a list of large-cap stocks that are trading close within 0%-10% of their 52-week lows, but analysts expect more than 20% upside over the next 12-months. Next, we cross-checked the upside potential from CNN and ranked the stocks in ascending order of the number of hedge fund holders.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Top 10 Large Cap Stocks to Invest In At 52-Week Lows
10. Comcast Corporation (NASDAQ:CMCSA)
Analyst Upside: 38.11%
Number of Hedge Fund Holders: 78
Comcast Corporation (NASDAQ:CMCSA) is one of the Top Large Cap Stocks to Invest In At 52-Week Lows. Although the stock has declined roughly 8% over the past month due to mounting competitive pressure in the broadband sector and margin concerns, the Street continues to expect more than 38% upside over the next 12-months.
Recently, on June 25, Reuters reported that Comcast Corporation (NASDAQ:CMCSA) owned Sky, has agreed terms to acquire ITV’s broadcast and streaming division. The deal is valued at around £1.6 billion and includes the TV channels and streaming platform ITVX. The report noted that the agreement is in its final stages and is currently being finalized by lawyers, according to sources familiar with the matter.
Moreover, as part of the transaction, ITV Studios will acquire Love Productions, the Sky-owned producer behind “The Great British Bake Off” and “The Piano,” valued at between £80 million and £120 million. In addition, the deal also includes a performance-based earn-out of around £200 million.
According to Reuters, the strategic goal is to combine Sky and ITVX into a top-three UK streaming platform, better positioned to compete with Netflix, YouTube, Amazon Prime Video, and Disney+. Reuters highlighted that a formal announcement is expected within the next two weeks as lawyers are still working through final complications.
Comcast Corporation (NASDAQ:CMCSA) provides internet, video, and phone services. The company’s operations are divided into the following segments: Residential Connectivity and Platforms, Business Services Connectivity, Media, Studios, and Theme Parks.
9. BlackRock, Inc. (NYSE:BLK)
Analyst Upside: 29.57%
Number of Hedge Fund Holders: 79
Morgan Stanley is actively recommending investors to buy traditional asset managers ahead of Q2 results as it views the setup as favorable. BlackRock, Inc. (NYSE:BLK) is one of the world’s largest asset managers and also one of our Top Large Cap Stocks to Invest In At 52-Week Lows.
BlackRock, Inc. (NYSE:BLK) has declined roughly 8% over the past month, mainly due to macroeconomic volatility and shifting Federal Reserve rate expectations. However, Wall Street appears to be bullish as analysts’ 12-month average price target suggests more than 29% upside from the current level.
Recently, on June 26, Morgan Stanley analyst Michael Cyprys raised the firm’s price target on the stock from $1,393 to $1,430, while maintaining an Overweight rating on the shares. The firm noted lifting its Q2 EPS forecasts by an average of 7.5% across traditional asset managers. The firm expects broad-based earnings beats driven by a supportive market environment and improving capital flows into the sector.
Founded in 1988 and headquartered in New York City, BlackRock, Inc. (NYSE:BLK) provides global investment, advisory, and risk management solutions. It also manages digital asset portfolios and is the sponsor of the Bitcoin exchange-traded fund, iShares Bitcoin Trust ETF (IBIT), allowing investors to gain exposure to Bitcoin without managing the underlying crypto directly.
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