In investing, marking opportunities among stocks trading at yearly lows can be a strategic approach to edge on undervalued assets attached to recovery. These stocks are experiencing price declines but may present attractive investment opportunities through their fundamental strengths. Here, the focus is on three stocks at 52-week lows. Understanding the reasons behind low stock prices and evaluating their intrinsic value is vital for identifying potential rebounds.

First, the goal of the first company’s skincare advancements and investments in Asia travel retail is growth revitalization. Meanwhile, the second company’s strong financial results and quick store growth indicate its sharp operational management. Ultimately, its smart worldwide expansion and product innovation highlight the third company’s development potential. The increase in these firms’ prospective market price may be estimated using their fundamentals. This makes them sharp picks to capitalize on stocks at 52-week lows.

Estee Lauder (EL)

Estee Lauder (NYSE:EL) is a leader in cosmetics with high-end skincare, makeup, and fragrance products. The company made significant progress in its Asia travel retail segment, achieving a return to growth after a period of decline. This rebound was driven by effective inventory management and improved retailer relationships.

Additionally, the company has made solid investments in new store locations, such as the Galleria’s Global Beauty Plaza in Hainan and Sanya. This highlights its strategic focus on high-potential travel retail markets. There are investments in high-touch services and unique shopping experiences. These sharply align with this region’s growing demand for luxury and personalized beauty products.

Moreover, the company’s performance in emerging markets like Mexico, Brazil, and India was solid. Here, the company holds double-digit growth. Indeed, this reflects Estée Lauder’s progressive execution of strategic initiatives to expand consumer reach. It is deriving brand growth in these high-potential regions. Estee Lauder’s strategic focus on fragrance and skincare brands in these markets led to this solid performance.

Overall, Estee Lauder’s solid regional performance, product launches, and consumer demand in key markets make it a high mark among stocks at 52-week lows.

Yum China (YUMC)

Yum China (NYSE:YUMC) operates popular fast-food brands such as KFC, Pizza Hut, and Taco Bell in China. The company’s core operating profit improved to $396 million from $392 million the previous year. This growth occurred despite a high base, where the previous year’s adjusted operating profit was the highest in 30 quarters. The increase in core operating profit (1% YoY) highlights Yum China’s ability to maintain profitability despite increased operational costs and competitive pressures. The operating profit margin was 12.6%, a slight decrease from previous periods but still solid. 

Further, Yum China surpassed the milestone of 15,000 stores with 378 net new store openings in the first quarter, a record for any first quarter. The accelerated store openings reflect a high-growth strategy and a solid market presence. It took 25 years to reach the first 5,000 stores, eight years for the next 5,000, and just four years for the final 5,000. This accelerating pace of store openings demonstrates increasing market penetration and scalability of operations.

To sum up, Yum China’s solid profitability and rapid store expansion solidify its presence among top stocks at 52-week lows.

Lululemon Athletica (LULU)

Lululemon Athletica (NASDAQ:LULU) offers high-quality yoga wear and activewear with a high market presence. The company’s international business constitutes 21% of total revenue for the full year 2023. This still needs to be more penetrated compared to its North American market. The company has identified a substantial growth opportunity to increase its international share to 50% over the long term. This expansion potential is supported by the high performance in international markets, particularly China and other regions. The 52% revenue increase in China Mainland signifies a highly successful expansion strategy in a key market. This growth highlights Lululemon’s ability to capture significant market share in China, leveraging its brand appeal and localized marketing strategies. 

There has also been continued success with key franchises like Define, Scuba, and Softstreme. New advancements include performance fabrics for leggings designed for hot, low-impact workouts and a versatile swimsuit line. Notable advancements include the Smooth Spacer hoodie and Show Zero technology in polo shirts. The strong performance of the city-verse footwear also exemplifies Lululemon’s approach to product development.

To summarize, Lululemon’s high international growth and product advancement support its position on the top stocks on the 52-week lows list.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

On the date of publication, Yiannis Zourmpanos did not hold (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.