Crown Resorts Ltd, Super Retail Group Ltd, WorleyParsons Limited: Are these stocks too cheap to ignore?

Crown Resorts Ltd (ASX:CWN), Super Retail Group Ltd (ASX:SUL) and WorleyParsons Limited (ASX:WOR) are down near 52-week lows.

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All three of the below stocks are beginning to look cheap, but do they have catalysts to drive earnings in the near future? They may be at low prices, but they could stay that way for some time.

Super Retail Group Ltd (ASX: SUL) is still trying to find its footing within a generally weak retail market. A lower Aussie dollar doesn’t help it either because its imported goods become more expensive. Its share price is hovering around $8 – $8.25. My take on this stock is that it probably won’t get much worse. Its second new distribution centre in Queensland should be complete in the next 4 – 6 months. Together with the complete Sydney distribution centre, cost savings from using the new sites could raise margins. Its 14 PE is at the low end of its past PE range. I think the stock is good value at current prices.

WorleyParsons Limited (ASX: WOR), the engineering construction and mining services company has been bumping along the bottom for most of the year. It is widely diversified in many regions around the world, but there has been a slowdown in many commodity markets. It gets most of its revenue from its oil and gas segment, so it could start showing improvement with more energy-related contracts. Analysts forecast earnings to rise about 14% annually for the next two years. It has a PE of 13.8 and pays a big 5.6% yield partially franked. Unless you are willing to wait for some time, I would say hold off on this stock for now.

Crown Resorts Ltd (ASX: CWN), the casino and integrated resorts operator has shed about 16% since the end of August. Now at $13.60, its PE is 15.6. Its Australian casinos are still on the weak side and Macau gambling venues in general are trying to adjust to fewer VIP gamblers after the Chinese government’s crackdown on extravagant spending. The company has a long list of upcoming casino developments, but no real big news right now to drive the share price. I think the stock would be more attractive at around $12 a share.

When share prices are down and sluggish, you can still get some return if you have stable, reliable dividend payers in your portfolio. All of the above businesses pay a dividend, but The Motley Fool’s analysts have one more stock that could have even better prospects.

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Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

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