With the market sinking lower again on Wednesday it will come as no surprise to learn that a number of shares sank to 52-week lows.
Three that caught my eye are listed below. Are they in the buy zone now?
The Crown Resorts Ltd (ASX: CWN) share price fell to a 52-week low of $11.43 on Wednesday. This latest decline means the casino and resort operator’s shares have fallen by almost 22% from their 52-week high. Investors appear to be concerned with the company’s slow start to FY 2019. Crown recently advised that year to date main floor Australian gaming resorts revenue was down 0.6% on the prior corresponding period. While this start has been a little underwhelming, I think Crown would still be a good long-term investment. Especially given its undemanding valuation and exposure to the tourism boom.
The Fletcher Building Limited (ASX: FBU) share price sank to a 52-week low of $4.34 yesterday, bringing its year to date decline to a sizeable 34%. Although the building products company has been underperforming all year, its recent trading update was a bit of a shock. At its AGM management warned that first-half EBIT before significant items will be 10% lower than the prior corresponding period. This has been blamed on challenging Australian trading conditions and the timing of house sales in its Residential Division to date. The outlook for the rest of the year was equally underwhelming. While I suspect that Fletcher Building could arguably become a takeover target at this level, I would still stay clear of its shares until its performance improves.
The Treasury Wine Estates Ltd (ASX: TWE) share price tumbled to a 52-week low of $13.38 on Wednesday. The global wine company’s shares have come under pressure in recent months due to concerns over the growth of its U.S. business and an oversupply of its wine in China. Not everyone is bearish on the company, though. Earlier this month both Macquarie and Morgan Stanley upgraded its shares to a buy rating largely on the belief that they have fallen too far. This could make it worth considering an investment.
Where to invest $1,000 right now
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Crown Resorts Limited and Treasury Wine Estates Limited. 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.
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