The following three stocks are arguably starting to look cheap, having all hit fresh 52-week lows last week. The first two are from the mining services sector – a space which is beset by well-known headwinds; the third is operating in the high growth healthcare software sector.
Monadelphous Group Limited (ASX: MND) is often referred to in glowing terms when it comes to identifying a leading, well managed, top tier business within the mining services sector. Despite its status, Monadelphous hasn't been spared from the downturn in the resources sector. In the past 12 months the share price has fallen 49% and last week it hit a new low of $8.11 – a level not seen since the depths of the global financial crisis.
UGL Limited (ASX: UGL) has finally completed the massive $1.25 billion sale of its global property services business DTZ which has left the company with a much stronger balance sheet and a business focussed on engineering and maintenance services across rail, transport and technology systems, power, water and defence.
In the case of both Mondelphous and UGL, the problem for investors is that things could still get even worse before they get better. This makes it particularly difficult to accurately forecast if all of the bad news is priced in to these two stocks, or whether further falls might lie ahead.
Orion Health Group Ltd (ASX: OHE) is a NZ-based company with a listing on the ASX as well as the New Zealand stock exchange. The company undertook an initial public offering in November 2014, however, last week the company surprised investors with quarterly sales below expectations. Investors reacted savagely in response with the shares marked down 13% in a day. As a healthcare information technology company, Orion operates in an attractive growth sector. However, the lack of earnings and high multiple which the stock trades on could mean a wait-and-see approach is the best course of action here.
The share prices of all companies will fluctuate but it could be a while before shareholders in the above three stocks see significant gains. In contrast, The Motley Fool's top analysts have just identified One Stock that could be set to soar…
