People don’t always pay attention to stocks that are hitting their 52-week lows. Instead, they chase after the top gainers. But remember this: when markets enter a correction phase, those that went up a lot almost always lose big time.
Of course, stocks from the 52-week low list probably won’t be the safest investments at the moment. But smart investors will sometimes find profitable opportunities scattered on the floor.
The insurance business doesn’t sound that exciting, but companies in the industry are still worth looking at. Heritage Insurance Holdings Inc (NYSE:HRTG) is a property and casualty insurance holding company based in Florida. The company has a subsidiary—Heritage Property & Casualty Insurance Company—which has a large network of agents and writes more than $590 million of personal and commercial residential premiums. Trading at $15.82 a share, HRTG stock has a price-to-earnings (P/E) multiple of just 5.20 and a dividend yield of 1.22%.
With that in mind, let’s take a look at five stocks that just hit their 52-week lows.
|Heritage Insurance Holdings Inc||$482.75M||$15.94|
|Sears Canada Inc||$252.65M||$2.48|
|Philippine Long Distance Telephone||$7.83B||$35.85|
|Vivint Solar Inc||$438.04M||$4.11|
Data source: Yahoo! Finance
Sears Canada Inc (NASDAQ:SRSC) is a multi-format retailer in Canada. But the company is not just in the retail business; it also has a real estate segment that invests in shopping center real estate. The company has been on a downsizing mission recently. Last November, it sold a distributions center north of Toronto for $100 million. (Source: “Sears Canada Sells More Real Estate, Including $100-Million Distribution Center,” The Globe and Mail, November 13, 2015.)
Online-to-offline (O2O) is one of the fastest-growing segments in China today. More and more people choose to buy goods and services online and then go to physical stores to enjoy them. Tuniu Corp (NASDAQ:TOUR) is basically a travel O2O company. It offers packaged tours, including organized tours and self-guided tours. Note that consumers use Tuniu to book trips not only in China, but to 140 countries around the world.
Now, if you like dividends, you might want to take a look at Philippine Long Distance Telephone (ADR) (NYSE:PHI). The company is doing a wide range of business in the Philippines, including landline, cellular mobile, broadband Internet, call center, mobile payments, and many more. The best part is that at today’s price, PHI stock has a dividend yield of 6.33%.
Finally, there is Vivint Solar Inc (NYSE:VSLR), a residential solar company in the U.S. The company designs and installs solar systems, but also offers long-term contracts such as power purchase agreements to residential consumers. Most recently, Vivint Solar terminated the agreement to be acquired by SunEdison Inc (NYSE:SUNE). Moreover, the company plans to “seek all legal remedies” because of the “willful breach” of the merger agreement by SunEdison. (Source: “Vivint Solar Terminates Merger Agreement for SunEdison’s Breach,” Vivint Solar Inc, March 8, 2016.)
At the end of the day, keep in mind that many stocks are down for a reason and the market might not be the one to blame. So on these down-and-out tickers, serious due diligence should be conducted before you even think about taking out your wallet.