Bargain Hunting: 7 Stocks Near 52-Week Lows to Buy Before the Bounce Back

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  • Papa John’s (PZZA): Papa John’s trades at an attractive PEG ratio.
  • Gilead Sciences (GILD): Gilead Sciences trades at a low earnings multiple.
  • Zip Recruiter (ZIP): Zip Recruiter could rise as job searches accelerate.
  • Read more about these top stocks trading near 52-week lows.
Stocks Near 52-Week Lows - Bargain Hunting: 7 Stocks Near 52-Week Lows to Buy Before the Bounce Back

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If you really want to maximize your return potential, then acquiring stocks near 52-week lows could present a viable opportunity. Stated simply, it’s a way to practice buying low and selling high.

Of course, it’s not so easy – if it was, everybody would do it. Rather, it’s important to consider deflated securities that have encountered a temporary hit to their business. To accomplish this directive, I’m focusing only on red-stained ideas that have buy ratings from analysts.

That’s no guarantee of anything, let me be 100% clear. However, these ideas should give you better than 50/50 odds of an eventual comeback. With that, below are stocks near 52-week lows to speculate on.

Papa John’s (PZZA)

Billboard From Papa John's At Amsterdam East The Netherlands
Source: DutchMen / Shutterstock.com

A staple in the fast-food industry, Papa John’s (NASDAQ:PZZA) has been struggling this year, down more than 22%. Fundamentally, rising pressures in the consumer economy appears to have caught up with PZZA. Still, with the steep red ink, Papa John’s could rank among the stocks near 52-week lows to speculate on.

Part of the reason centers on the company’s consistent profitability. As well, PZZA brings decent value, trading at a price/earnings-to-growth (PEG) ratio of 0.96X. In contrast, the sector median for the restaurants industry stands at 2.06X.

For the current fiscal year, analysts anticipate earnings per share of $2.63, which is below last year’s print of $2.71. However, the most optimistic target calls for $2.75. On the top line, sales could rise to $2.18 billion, up 2.1% from 2023’s haul of $2.14 billion. By fiscal 2025, revenue could hit $2.27 billion, up 4.3% from projected 2024 sales.

Also, Papa John’s pays a forward annual dividend yield of 3.12%. With the market discount, PZZA could be an attractive idea for stocks near 52-week lows.

Gilead Sciences (GILD)

A Gilead Sciences (GILD) sign at the company headquarters in Silicon Valley, California.
Source: Sundry Photography / Shutterstock.com

Another enterprise that just can’t grab a hold of positive moment, Gilead Sciences (NASDAQ:GILD) saw its shares slip more than 22% since the start of the year. What’s conspicuous is that over the past five years, GILD has lost roughly 4%. While this performance (or lack thereof) has frustrated stakeholders, prospective investors could get in on a possibly compelling discount.

Overall, Gilead Sciences is consistently profitable, posting net income in the past 10 years. It also sports an operating margin of 23.43%, better than 89.79% of its peers. Right now, shares trade at only 18.31X trailing-year earnings (without non-recurring items or NRI).

Now, the issue is that for fiscal 2024, analysts are only projecting EPS of $3.51. That’s well off the pace of last year’s $6.28. However, by fiscal 2025, this metric could soar back to $6.56. With the market discount, GILD looks more attractive. Further, experts are modeling a blue-sky sales target of $26.25 billion (compared to last year’s $25.33 billion).

Gilead also pays a forward yield of 4.75%, which needs to be included in the discussion.

ZipRecruiter (ZIP)

A banner for ZipRecruiter (ZIP) stretches across a blank white wall.
Source: Alex Millauer / Shutterstock.com

Operating in the staffing and employment services industry, ZipRecruiter (NYSE:ZIP) has suffered a relevance challenge. It operates a marketplace that connects job seekers and employers. However, with the robust jobs reports (April 2024 numbers aside), candidates looking for employment don’t necessarily need help. Still, ZIP could rank among the stocks near 52-week lows to buy because of a narrative shift.

Fundamentally, if economic conditions worsen to the point where employers begin accelerating mass layoffs, then ZipRecruiter should become much more relevant. Cynically, there would likely be more desperation on the part of the job seeker. Further, those enterprises still hiring need to be selective. Using ZipRecruiter’s services can help filter for only the most viable candidates.

To be sure, experts don’t anticipate a great showing for ZIP; hence the market fallout. For fiscal 2024, they’re looking for sales to land at $525.68 million. That’s down nearly 19% from last year’s print. However, fiscal 2025 revenue could rise to $636.11 million.

If you believe in the recovery narrative, ZIP is one of the deals to consider among stocks near 52-week lows.

Five Below (FIVE)

storefront of a five below, FIVE Stock
Source: Jonathan Weiss / Shutterstock.com

In many ways, seeing discount retailer Five Below (NASDAQ:FIVE) fall so sharply this year isn’t encouraging. Since the beginning of January, FIVE stock cratered almost 33%. That implies that the consumer economy is hurting badly amid stubborn inflation and other headwinds. Still, analysts appreciate the idea, assigning it a consensus view of strong buy.

Financially, the company benefits from consistent profitability. It also sports a net margin of 8.46%, beating out 83.21% of the competition. Further, its three-year revenue growth rate clocks in at 22.3%, above 84.31% of its peers.

For the current fiscal year, covering experts believe that EPS will reach $6.04, above last year’s result of $5.41. On the top line, they’re looking for sales of $4.04 billion. That’s up 13.6% from the same point last year. Also, by the next fiscal year, revenue could soar to $4.69 billion.

Now, it must be said that investors are paying a premium for owning FIVE, which trades at 2.23X trailing-year sales. However, back in the second quarter of last year, this metric soared to 3.67X. Therefore, it’s on a relative discount.

Caesars Entertainment (CZR)

Caesar's Palace (CZR) in Las Vegas
Source: Jason Patrick Ross/Shutterstock.com

As a fixture of the gaming and hospitality industry, Caesars Entertainment (NASDAQ:CZR) enjoys a strong brand presence. At the same time, CZR has struggled, losing 26% of equity value since the start of the year. One can blame the broader consumer economy and the challenges it faces. Still, analysts are hopeful for an eventual recovery, rating shares a consensus moderate buy.

While the red ink is unsightly, it also offers a potential discount. Caesars notably sports a three-year revenue growth rate of 24.1%, above 70.81% of its peers. It also trades at only 0.66X trailing-year revenue, below 79% of the competition.

However, the tricky issue is the forward projection. Analysts are modeling for EPS of only 37 cents this year, down sharply from last year’s $3.64. On the other hand, the high-side estimate calls for $3.10. On the top line, they’re anticipating sales of $11.6 billion, with a blue-sky target of $11.88 billion. Last year, revenue landed at $11.53 billion.

Looking out to fiscal 2025, sales could rise to $12.09 billion, with the high side reaching $12.59 billion. For those betting on a post-pandemic travel boom, CZR could rank among the stocks near 52-week lows to buy.

Bumble (BMBL)

BUMBLE (BMBL) app on a smartphone
Source: XanderSt / Shutterstock.com

Dating app Bumble (NASDAQ:BMBL) is a tough idea to call. Yes, it’s one of the stocks near 52-week lows. Since the start of the year, BMBL dropped 30%. In the trailing one-year period, it lost almost 43% of equity value. Critics might argue that Bumble deserves the severe discount and they could be right. However, a ship can always be righted if the damage is caught in time.

In my opinion, Bumble needs a simple tweak. It needs to focus more on the business rather than attempting to engineer gender equity in relationships. That means in traditionally oriented couplings, the company must allow male users to reach out to female users. Currently, women must make the first move, which hurts participation and engagement.

For fiscal 2024, covering experts believe EPS could rise to 64 cents. That would be a massive win over last year’s loss of 3 cents per share. On the top line, revenue could hit $1.15 billion, up 9.3% from last year’s print of $1.05 billion. And in the following year, sales could soar to $1.27 billion, up 10.8% from projected 2024 revenue.

Coursera (COUR)

The app page for Coursera is displayed on a smartphone screen with a website in the background.
Source: Postmodern Studio / Shutterstock.com

Online educational content platform Coursera (NYSE:COUR) received a beatdown largely due to artificial intelligence. Since the beginning of the year, COUR stock fell an alarming 50%. Over the past 52 weeks, it’s down more than 13%. With generative AI, fears exist that Coursera will no longer be viable as a business. However, AI can’t issue certifications that can boost a student’s career prospects.

Further, as we’re discovering, digital intelligence isn’t always so intelligent. Therefore, I believe the extreme volatility in COUR is overdone. Yes, its financials could certainly use some work. However, with a three-year revenue growth rate of 23.2% above 81.17% of its peers – there’s also potential here.

For the current fiscal year, analysts are looking for EPS of 19 cents, well above last year’s 1 cent. On the top line, they’re modeling for revenue of $699.76 million. If so, that would be up 10.1% from 2023’s tally of $635.76 million.

Wait around to the following year and sales could soar to $791.08 million. That’s up 13.1% from projected 2024 revenue. With an analyst moderate buy rating, COUR could be intriguing.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.


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