Due to the recent market volatility, a number of shares on the All Ordinaries have been trading lower this month.
Some have fallen so much they’ve hit 52-week lows. Three which have just dropped to this level are listed below, are they in the bargain bin?
The Flight Centre Travel Group Ltd (ASX: FLT) share price dropped to a 52-week low of $39.60 on Thursday before rebounding higher. Investors have been heading to the exits in their droves since August of last year. The catalyst for this was a sudden deterioration in the performance of its key Australian Leisure business. This weakness has continued in FY 2019, leading to concerns that Flight Centre could fall short of its guidance. Whilst it wouldn’t be my first choice in the industry, I think the selloff has left its shares trading at an attractive level.
The Reliance Worldwide Corporation Ltd (ASX: RWC) share price fell to a 52-week low of $3.84 yesterday. The plumbing parts company’s shares have come under pressure since the release of a mixed half year result in February. Although the company posted a 65% increase in adjusted EBITDA to $130.8 million, this growth was fuelled by its $1.2 billion acquisition of the John Guest business. Excluding this acquisition EBITDA would have fallen 3% on the prior corresponding period. Although this was disappointing, I feel the selling has been overdone and this could be a buying opportunity for patient investors.
The Seven West Media Ltd (ASX: SWM) share price hit a multi-year low of 47 cents on Thursday. Investors have been selling the media company’s shares after the television advertising market weakened. These tough trading conditions led to Morgan Stanley slapping an underweight rating and 45 cents price target on Seven West Media’s shares earlier this week. I would suggest investors stay clear of the company until trading conditions improve.
Instead of buying the sell-rated Seven West Media, I would buy these shares that have been rated as buys.
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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 Flight Centre Travel Group 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.