3 ASX shares at 52-week lows: Time to buy?

The Costa Group Holdings Ltd (ASX:CGC) share price is one of three that feel to a 52-week low on Thursday. Is it time to buy these shares?

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The local share market may be on a strong run this week, but the same cannot be said for the three ASX shares listed below.

These shares fell to 52-week lows or worse on Thursday. Is this a buying opportunity for investors?

The Class Ltd (ASX: CL1) share price tumbled to an all-time low of $1.26 yesterday following the release of its quarterly update. Its shares were hit hard after it revealed that it added just 1,760 accounts to its SMSF platform during the December quarter to bring its total to 174,212 accounts. Management blamed the slow growth on regulatory uncertainty, increased competition, and a lower than average number of average accounts per new customer. I don't expect trading conditions to get easier for Class in the coming quarters, which could make it one to avoid.

The Costa Group Holdings Ltd (ASX: CGC) share price crashed to a 52-week low of $4.40 on Thursday after the horticulture company released a surprise profit warning just a little over six weeks after its last update. Costa advised that it experienced subdued demand for tomatoes, berries, and avocados in December and things have not been much better in January. As a result, management advised that it expects to fall short of its calendar year 2018 guidance and warned that if conditions don't improve then earnings for the 12 months to June 2019 would be flat. Previous guidance was for low double-digit earnings growth. While its shares look reasonably attractive at 20x earnings, I'm going to hold fire until its performance improves.

The Paragon Care Ltd (ASX: PGC) share price dropped to a 52-week low of 60 cents yesterday. The medical device, equipment, and product distributor's shares have come under pressure in recent weeks after its AGM update revealed that its organic growth year to date had fallen short of expectations. The report also advised that operating costs were running at around 30% of revenue for the first four months compared to its target of 26%. While this update was disappointing, I think its organic growth of 7% makes its shares good value at just 11x trailing earnings.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia owns shares of Class Limited. The Motley Fool Australia has recommended Paragon Care 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.

More on 52-Week Lows

Piggy bank sinking in water symbolising a record low share price.
52-Week Lows

9 ASX 200 shares tumbling to 52-week lows today

Israel's strike on Iran on Friday dragged several ASX 200 shares to new depths.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
52-Week Lows

5 ASX 200 stocks at 52-week lows

These shares are down in the dumps on Tuesday.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
52-Week Lows

Are Telstra shares a no-brainer for income after hitting a fresh 52-week low?

Let's see what analysts think of the telco giant's shares at this level.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Industrials Shares

Why is this ASX 200 stock crashing 16% to a 52-week low on Tuesday?

This stock is having a very red start to the week.

Read more »

A man with his back to the camera holds his hands to his head as he looks to a jagged red line trending sharply downward representing the ASX tech share sell-off today
52-Week Lows

3 ASX shares sinking to 52-week lows today

These ASX shares are having a bit of a nightmare this year.

Read more »

Young man sitting at a table in front of a row of pokie machines staring intently at a laptop. looking at the Crown Resorts share price
52-Week Lows

Star Entertainment share price crashes 26% upon return to trade

This is a new 52-week low.

Read more »

Rede arrow on a stock market chart going down.
Materials Shares

Core Lithium and 2 other ASX 200 lithium shares plunging to 52-week lows

Lithium stocks like Core are exploring new lows today.

Read more »

A man looks nervous as he inflates a balloon, scared it might pop.
Materials Shares

Arafura share price resets 52-week low after quarterly update

The rare earths explorer also announced the results of its share purchase plan today.

Read more »