Share prices are always changing, and occasionally they may hit a 52-week low. When businesses are trading near the lowest they have over the past year, that says to me they could be contrarian opportunities.
Of course, a stock isn't necessarily great value just because it has declined.
The two ASX shares I'm about to talk about both face challenging operating conditions. However, I do believe they could be a buying opportunity at near 52-week lows.
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Myer Holdings Ltd (ASX: MYR)
Myer is best known for its department store business with locations in key shopping destinations. It also has a number of largely apparel businesses including Jacqui E, Just Jeans, Portmans, Dotti, Sass & Bide, Jay Jays, David Lawrence, and Marcs.
As you can imagine, it has been a difficult retail environment – there has been an increase in interest rates, a higher cost of living inflation, and a period of adjustment following the acquisition of apparel brands from Premier Investments Ltd (ASX: PMV).
Myer recently gave a trading update for FY26, which showed total sales of around $4.1 billion, which saw underlying growth of 0.3%. Group comparable sales were up 0.7%. Despite the difficult environment, Myer has managed to deliver growth, which I think bodes well for when conditions improve.
Its profit margins were slightly lower because of higher-than-planned promotional activity to stimulate demand.
Myer is working hard to strengthen its business and I think this will help the company's earnings in the future.
The Myer share price is valued as low as it is because of the challenging retail situation, but I don't think those difficult conditions will last forever.
According to the projection on CommSec, the Myer share price is valued at just 7 times FY27's estimated earnings with a possible FY27 grossed-up dividend yield of 11.5%, including franking credits.
It looks significantly cheaper after falling 50% in the past six months, with it now trading at near a 52-week low.
Australian Finance Group Ltd (ASX: AFG)
Australian Finance Group, or AFG, describes itself as one of Australia's leading providers of mortgage broking and financial services. It has a network of 4,200 accredited brokers, offering access to more than 80 lenders.
Impressively, around 10% of Australian residential mortgages are arranged by an AFG broker. The company plays an important part in the Australian lending sector.
It certainly seems as though the business is now facing a more difficult operating environment following the Federal Budget tax changes – there may be less demand for home loans in the shorter term.
National Australia Bank Ltd (ASX: NAB) recently said that its total Australian home lending applications were 15% lower in the three months to June 2026 compared to the three months to March 2026.
I think the market is underestimating the company's ability to generate earnings from its existing loan book. Plus, even if there has been a bit of a reduction in loan demand, the business should still experience solid loan volumes. With an ongoing share buyback, management think the business is undervalued, and I think that's the case too.
It looks a lot cheaper after falling 25% in the past six months, and now it's trading near its 52-week low.
