With the market dropping notably lower on Tuesday it will come as no surprise to learn that a large number of shares are trading at 52-week lows.
Three that caught my eye are listed below. Is this a buying opportunity?
The AusCann Group Holdings Ltd (ASX: AC8) share price tumbled to a 52-week low of 59 cents today. This latest decline means the medicinal cannabis company’s shares have fallen a remarkable 68% since peaking at $1.86 earlier this year. I suspect the slow progress in the industry and the lack of meaningful revenues has contributed to the selloff. In addition to this, high risk shares like AusCann were always likely to feel the brunt of the selling if markets were sold off as they been over the last two to three months. Given its lofty valuation, I’m not convinced the selling has finished just yet.
The Australia and New Zealand Banking Group (ASX: ANZ) share price continued its poor run and fell to a 52-week low of $23.73 this morning. This means the banking giant’s shares are down 17% year to date. While the main catalysts for this decline have been the Royal Commission and the housing market downturn, the latest decline has been caused by news that the Reserve Bank of New Zealand has proposed a significant increase in the level of regulatory capital in the New Zealand banking system. While I don’t expect the ANZ Bank share price to bounce back quickly, I do see a lot of value in its shares at these levels if you’re willing to be patient.
The Superloop Ltd (ASX: SLC) share price fell to a 52-week low of $1.46 today, bringing its year to date decline to a sizeable 40%. The telecommunications infrastructure company’s shares have been on a downward trajectory over the last few months due largely to valuation concerns. But with its shares now changing hands at 38x earnings, I think they are starting to look fairly valued. After all, in FY 2018 Superloop delivered a net profit after tax of $7.1 million on revenue of $125.2 million. This was a 109% increase in revenue and its net profit compared to a loss of $1.2 million in FY 2017.
These 3 stocks could be the next big movers in 2020
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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.