The volatility is heating up once more on the market with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) finishing Monday’s trading session down 0.9% at 5,003.8 points.
In an about face, by late morning on Tuesday, the index has reversed those losses to be trading 1% higher.
Monday’s selling pressure took a number of major companies to new 52-week lows, while many other leading stocks are back within striking distance of their one-year lows.
Here are four stocks which all touched fresh lows yesterday and could possibly now be cheap enough to tempt some investors…
- APN News and Media Limited (ASX: APN) – the regional publisher and radio company faces stiff headwinds from “new media” sources, however, with one consensus of analyst estimates suggesting APN can earn around 7 cents per share this year, there may not be much more downside for the stock which is trading at 47.5 cents.
- Woolworths Limited (ASX: WOW) – the mighty retailer looks like it may face reduced earnings over the next year or two as it increases spending to fend off competitors. Arguably, much of the negativity is now priced into the stock and investors who take a long-term perspective could find current levels to be a good entry point.
- South32 Ltd (ASX: S32) – It certainly hasn’t been a pleasant first six months as a listed company for the miner which was spun-out of BHP Billiton Limited (ASX: BHP). As history has proven however, the resource sector is cyclical and buying near the bottom of a cycle should remain a sound strategy for long-term investors.
- Lend Lease Group (ASX: LLC) – the international property and infrastructure group has witnesses a 28% slump in its share price over the past six months which has taken the stock down to fresh lows. Despite the slump, Lend Lease remains a leading property developer and manager with a very large pipeline of opportunities around the globe. With the stock trading on around 10x forecast earnings, now could be a great time to acquire this market-leading company.
What will the market do from here?
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Motley Fool contributor Tim McArthur has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.