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Are BHP, Nearmap, & Webjet shares in the buy zone?

On Monday the S&P/ASX 200 index tumbled to a nine-month low before rebounding off its lows for the day.

In light of this, it will come as no surprise to learn that a number of shares on the index fell heavily.

Three shares that fell to 52-week lows or worse are listed below. Here’s why they are trading at new lows:

BHP Group Ltd (ASX: BHP)

The BHP Group share price dropped to a 52-week low of $31.88 on Monday. BHP and many of its peers in the resources sector have come under pressure following the coronavirus outbreak. There are concerns that the outbreak could slow global economic growth and weigh heavily on commodity prices. I think this could be a buying opportunity once things ease. Especially given its very generous dividend yield.

Nearmap Ltd (ASX: NEA)

The Nearmap share price fell to a 52-week low of $1.58 before rebounding into positive territory yesterday. The aerial imagery technology and location data company’s shares have been sold off this year after it downgraded its guidance following the loss of a major contract and two churn/downgrade events. And while management was quick to point out that the downgrade was because of tough market conditions and not the result of rising competition, it hasn’t stopped some investors from heading to the exits. I think Nearmap is very attractively priced now and could be a good option for patient investors. It would appear that management does as well. Two insiders have bought shares on-market recently.

Webjet Limited (ASX: WEB)

The Webjet share price continued its disappointing run and hit a multi-year low of $8.81 on Monday. The shares of the online travel agent have fallen heavily recently amid concerns that the coronavirus outbreak is having a major impact on travel and tourism. These concerns have offset a very strong half year result from the company which was driven by its rapidly growing WebBeds business. Although I expect the outbreak to weigh on bookings in the short term, I’m confident that things will return to normal in the coming months. This could make it worth considering an investment once the market volatility eases.

5 stocks under $5

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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 Nearmap Ltd. The Motley Fool Australia has recommended Webjet Ltd. 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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