The S&P/ASX 200 Index (ASX: XJO) has held relatively steady over the past few weeks, and currently sits at approximately 8 ,718 points.
While this is below the record highs hit back in August and Octovber last year, it's not too far behind.
The same can't be said for all 200 companies sitting within the index.
But when quality companies see a share price dip, it can create an opportunity for investors to scoop them up at a discount.
To be clear, companies trading close to 52-week lows don't come without risk.
After all, there's a reason investors have exited.
The question for potential buyers to consider is if the stock has fallen below fair value – with consideration for any red flags.
Let's look at two companies trading close to yearly lows.
Amcor plc (ASX: AMC)
Amcor is an international plastics packaging company.
It develops and produces responsible packaging solutions for food, beverage, pharmaceutical, medical, home and personal-care, and other products.
Over the last year, its share price is down almost 17%.
A big chunk of this selloff occurred following the company's fourth quarter update last August.
This ASX 200 stock fell 10% in one day, after EBITDA results fell short of the consensus estimates.
Now trading close to 52 week lows, there are some positives to consider with this ASX 200 stock.
First of all, it's expected to pay a dividend yield of over 6% in the next year.
Secondly, experts are tipping a recovery for its share price.
Morgans has a buy rating and $15.20 price target on this ASX 200 stock.
From last week's closing price of $12.86, this indicates an upside of more than 18%.
Xero Limited (ASX: XRO)
Xero shares have been hotly covered here at The Motley Fool in recent months as general consensus indicates these shares are trading below fair value.
Despite this sentiment, Xero shares have continued to tumble.
The company offers cloud-based, accounting software for small to medium businesses.
These ASX 200 shares are down almost 37% in the last 12 months despite the company showing healthy growth in its subscriber base and revenue.
Targets from analysts indicate this ASX 200 stock should recover.
Macquarie currently has an outperform rating and $230.30 price target on Xero shares.
From last week's closing price of $107.46, this indicates more than 114% upside.
