The Motley Fool

These shares are at 52-week lows: Are they bargain buys?

With the market sinking lower once again on Thursday, it will come as no surprise to learn that a number of shares are trading at 52-week lows of worse.

Three well-known shares that have hit this unwanted milestone today are listed below. Are they bargain buys?

The AGL Energy Ltd (ASX: AGL) share price has fallen to a 52-week low of $19.26 today. Investors continue to head to the exits in a hurry amid concerns that competitive pressures and regulatory scrutiny will weigh on its performance. While I feel its shares look about fair value now at 12x estimated forward earnings, I wouldn’t be a buyer of them until after next year’s Federal election. I suspect that energy prices could be a hot topic during the election and changes may be proposed to make them more affordable.

The AMP Limited (ASX: AMP) share price dropped to a 15-year low of $3.12 this morning. The financial services company has come under pressure this year after poor practices were uncovered at the Royal Commission. I believe this has damaged its brand and expect it to take some time before it recovers. In addition to this, earlier this week Slater & Gordon Limited (ASX: SGH) named AMP as a target for its Get Your Super Back campaign. I would suggest investors stay clear of AMP’s shares for the time being despite how cheap they may look on paper.

The G8 Education Ltd (ASX: GEM) share price fell to a five-year low of $1.96 this morning. While part of today’s decline was driven by its shares going ex-dividend, they have come under significant pressure over the last 12 months due to its disastrous performance. An oversupply of childcare centres has led to its occupancy levels falling significantly. Unfortunately, I don’t believe this is going to change any time soon and would suggest investors stay clear of G8 Education and its peers until there are major improvements in trading conditions.

NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!….

Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading over 40% off its high, all while offering a fully franked dividend yield over 3%...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Scott Phillips.