One of the hardest things for many investors to talk themselves into is buying stocks when they’re on sale. The investing philosophy of buying low and selling high is backed by years of data. However, in a market driven by high-speed trading programs and more than a little bit of FOMO (fear of missing out), investors can find it hard to wait on quality stocks.
One way to find low-priced stocks that may be worth a speculative buy is to find stocks that trade at or near their 52-week lows. MarketBeat has a tool that shows a daily list of stocks trading at 52-week lows.
MarketBeat also provides a stock screener that lets you find stocks within a certain percentage of their 52-week low. I used this method to find the stocks listed below. Each of these stocks is trading within 20% of its 52-week low.
Vale Has Multiple Catalysts for Future Growth
Investing in commodity stocks requires comfort with volatility. The price of a stock will move higher or lower with the price of the underlying commodity.
But if you have a sense of when these shifts may take place, you can profit from trading basic materials stocks like Vale S.A. (NYSE: VALE). The company is one of the leading producers of iron ore and iron ore pellets, which are an essential component of steelmaking. The industry has had a rough couple of years, but demand is increasing due to infrastructure needs in the United States. In fact, in Vale’s most recent quarter, it posted the highest amount of iron ore production since 2018.
Demand for data centers is also likely to keep demand for steel growing. And data centers will also need copper, which Vale also produces. In fact, a leading analyst firm projects that the demand for copper will increase at a compound annual growth rate (CAGR) of 5.4% between now and 2030.
Analysts give VALE stock a $16.72 price target, which is 56% above its price on July 30, 2024. The company’s 11% dividend yield is misleading and is very volatile, but right now, it’s just a bonus.
Halliburton Benefits from Rising Oil Prices and Record Drilling Activity
Oil prices are rising as drilling activity in the United States is at all-time highs. However, a combination of policy initiatives and waning consumer demand has kept crude oil prices around $80 per share.
Some investors may view the upcoming election as a binary trade for oil. But the world will need oil for years, if not decades, to come. And that means that drilling activity is likely to increase no matter what the outcome of the 2024 election turns out to be.
That's a good reason to look at Halliburton (NYSE: HAL), which provides products and services for drilling companies. Revenue reached 2019 levels in 2023, and through the first two quarters of 2024, it is maintaining those levels.
A shift in administrative policies could lead to an increase in the number of wells, fracking activity, and pipeline reopenings. However, drilling is at an all-time high today, and if the Federal Reserve cuts rates as expected, oil demand will likely increase.
Halliburton's analyst forecasts on MarketBeat give the stock a consensus price target of $45.35, which is a 32% upside. In addition, the dividend yields just shy of 2%.
Lululemon is Giving Investors a Great Entry Point
After many years when Lululemon Athletica Inc. (NASDAQ: LULU) consistently outperformed the market, it may be hard for shareholders to see LULU stock down 49% in 2024. There are reasons for that. Growth is slowing, lower-priced competition is firmly entrenched, and some analysts and consumers believe the company is not as innovative as it once was.
And when the company reports earnings in late August, investors will want more information about the plans for its Breezethrough leggings. Lululemon paused product sales after just a few weeks on the market. If it really is about incorporating customer feedback, as management says, this could be an opportunity for the company to win back customers.
Either way, institutional investors believe there’s a dip to buy. In the most recent quarter, buyers outnumbered sellers nearly 10-to-1. It’s always a good idea for investors to follow what the “smart money” does more than what they say.