In this special presentation, we're offering you seven stocks that meet two criteria important to investors in volatile markets. First, they are trading at a price under $50 per share. Second, at the time of this writing, each of the stocks was trading at or near its 52-week lows.
Stocks under $50 appeal to investors because they can accumulate a significant number of shares with a small position. Of course, price and value are different, and not every stock that trades for under $50 is a buying opportunity. There are times when a stock is cheap for a reason.
However, when these stocks show signs of being undervalued, as do the stocks on this list, buying them when they're trading around their 52-week low offers investors a chance for significant upside. A stock's 52-week range is largely seen as a key technical indicator that is instructive for future price performance. If a stock is trading at a 52-week low but is supported by solid fundamentals that suggest it is overvalued, they are frequently a buying opportunity.
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- Five9
- Brown-Forman
- Bristol-Myers Squibb
- Artesian Resources
- 10x Genomics
- Coursera
- ZEEKR Intelligent Technology
#1 - Five9 (NASDAQ:FIVN)
If you’re like many people who have yelled into a phone “Representative,” Five9 Inc. (NASDAQ: FIVN) is a name to consider. The company is the leader in cloud contact center software. A contact center is the digital age’s equivalent of a call center. It handles customer inquiries across multiple channels, including social media, emails, phone, and online chats. According to Grand View Research, call and contact centers are expected to grow at a compound annual growth rate (CAGR) of 9.1% between 2024 and 2030.
As you might expect, AI, particularly Generative AI, plays a significant role in the evolution of contact centers. This is another area where Five9 is leading the way. This leadership shows up in the company’s fundamentals. Both new and annual recurring revenue (ARR) continue to increase sequentially and year over year.
That said, Five9 has been posting negative earnings as it invests heavily in AI. However, analysts see the company turning profitable in the next 12 months. The Five9 analyst ratings on MarketBeat give the stock a consensus Moderate Buy rating with an $84.88 price target, suggesting a 73% upside for FIVN stock.
About Five9
Five9, Inc, together with its subsidiaries, provides intelligent cloud software for contact centers in the United States, India, and internationally. It offers a virtual contact center cloud platform that delivers a suite of applications, which enables the breadth of contact center-related customer service, sales, and marketing functions.
Read More - Current Price
- $42.63
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 13 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $58.18 (36.5% Upside)
#2 - Brown-Forman (NYSE:BF.B)
Brown-Forman Corporation (NYSE: BF.B) is one of the leading distillers, marketers, and retailers of premium spirits. The company is the home of iconic brands such as Jack Daniels and Woodford Reserve.
In 2024, the premium alcohol and spirits market is going through a period of normalization. For example, the company saw sales of its flagship Jack Daniels brand drop 6% year-over-year (YOY). However, that normalization is happening at the higher revenue and earnings numbers of the past two years rather than those of 2019. The BF.B stock price, however, is trading at levels not seen since 2017.
There's the opportunity and the challenge. Brown-Forman reports fourth-quarter and full-year earnings in June 2024. If those numbers disappoint, and inflation data suggests they might, the stock could have further to fall.
Citigroup Inc. (NYSE: C), one of the Brown-Forman analysts tracked by MarketBeat, upgraded BF.B stock from Sell to Neutral in April and assigned a $52 price target. That's lower than the $65.68 consensus price target but is still about 16% higher than the stock's price at its 52-week low.
About Brown-Forman
Brown-Forman Corporation, together with its subsidiaries, manufactures, distills, bottles, imports, exports, markets, and sells various alcoholic beverages. It provides spirits, wines, whiskey spirits, whiskey-based flavored liqueurs, ready-to-drink and ready-to-pour products, ready-to-drink cocktails, vodkas, tequilas, champagnes, brandy, bourbons, and liqueurs.
Read More - Current Price
- $41.28
- Consensus Rating
- Hold
- Ratings Breakdown
- 2 Buy Ratings, 5 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $49.57 (20.1% Upside)
#3 - Bristol-Myers Squibb (NYSE:BMY)
Next up on this list of attractive stocks to buy at their 52-week low is Bristol-Myers Squibb (NYSE: BMY). The stock is down approximately 21% in 2024, with most of the losses occurring since the company's April 2024 earnings report. The topline number was fine, showing slight YOY growth.
Earnings, however, were a different story. The company posted a loss of $4.40 per share due to the company's acquisition spree that closed in the quarter. Plus, while Bristol-Myers Squibb has one of the industry's largest and deepest pipelines, it faces some expiring patents.
Putting that issue aside, there are still reasons to consider BMY stock. One is the company's pipeline, which is heavy on oncology drugs and which the company's recent acquisitions will only help expand. Second, the company is working to make drugs more accessible in low—and middle-income countries.
However, its simple value is even more important when considered in a significant area. From a technical standpoint, BMY is trading at a five-year low, which analysts clearly believe is a buying opportunity. Plus, investors get a dividend with a 5.93% yield.
About Bristol-Myers Squibb
Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers products for hematology, oncology, cardiovascular, immunology, fibrotic, and neuroscience diseases. The company's products include Eliquis for reduction in risk of stroke/systemic embolism in non-valvular atrial fibrillation, and for the treatment of DVT/PE; Opdivo for various anti-cancer indications, including bladder, blood, CRC, head and neck, RCC, HCC, lung, melanoma, MPM, stomach and esophageal cancer; Pomalyst/Imnovid for multiple myeloma; Orencia for active rheumatoid arthritis and psoriatic arthritis; and Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia.
Read More - Current Price
- $57.33
- Consensus Rating
- Hold
- Ratings Breakdown
- 5 Buy Ratings, 13 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $55.64 (2.9% Downside)
#4 - Artesian Resources (NASDAQ:ARTNA)
Investors don't typically view utility stocks as growth stocks. But when they're trading at 52-week lows, even value-oriented investors can find them hard to pass up. That's the case with Artesian Resources Corp. (NASDAQ: ARTNA). At the end of 2023, the company provided water, wastewater, and other services to approximately 98,000 customers across 1,470 miles of transmission and distribution mains in Delaware, Maryland, and Pennsylvania.
The stock is down 17.5% in 2024, but nothing in the company's earnings looks too alarming. What may concern investors is the investment Artesian is required to make to ensure compliance with Environmental Protection Agency (EPA) regulations for the treatment of PFAS (i.e., forever chemicals).
The company says it's well prepared to meet those requirements. Once the market catches on to that, ARTNA stock will likely look like a buy since it's trading at 52-week lows and five-year lows. Investors get a dividend that has increased for the last six years and currently has a 3.46% yield.
About Artesian Resources
Artesian Resources Corporation, through its subsidiaries, provides water, wastewater, and other services in Delaware, Maryland, and Pennsylvania. The company distributes and sells water to residential, commercial, industrial, governmental, municipal, and utility customers, as well as for public and private fire protection in the states of Delaware, Maryland, and Pennsylvania; and offers wastewater collection, treatment infrastructure, and wastewater services to customers in Delaware.
Read More - Current Price
- $32.02
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
#5 - 10x Genomics (NASDAQ:TXG)
The area of gene editing is expected to show exponential growth in the coming decades. 10x Genomics Inc. (NASDAQ: TXG) is a life sciences company that provides gene editing companies with the products and services they need for their work. It's a fascinating field with the potential for astonishing growth.
So why is TXG stock trading near its 52-week low? The reason would seem to be that this is still a relatively small company. With a market cap of just over $2 billion, it's still a small-cap stock in many investors' minds. And it's not profitable at a time when investors are staying away from unprofitable stocks.
Analysts aren't projecting profitability in the next 12 months, but the losses are narrowing as top-line revenue continues to increase year over year. In 2023, that revenue totaled approximately $620 million. However, the company believes the annual opportunity in the market could total $12 billion in years to come.
That opportunity is one reason Cathie Wood has shown interest in TXG stock. Although 10x Genomics takes up only 1.5% of Woods' Ark ETF, it holds 6.59 million shares, up 2.5 times the level in October 2023.
About 10x Genomics
10x Genomics, Inc, a life science technology company, develops and sells instruments, consumables, and software for analyzing biological systems in the America, Europe, the Middle East, Africa, China, and the Asia Pacific. The company provides chromium, chromium connect, and chromium controller instruments, microfluidic chips, slides, reagents, and other consumables products.
Read More - Current Price
- $14.04
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 9 Buy Ratings, 7 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $25.14 (79.1% Upside)
#6 - Coursera (NYSE:COUR)
Some love it; others hate it, but online learning is here to stay, and Coursera Inc. (NYSE: COUR) is one of the leading names in the space. Like 10x Genomics, this small company is not yet profitable. Although the company continues to grow its top line year over year, the growth is showing signs of slowing.
That's likely to be a temporary headwind. The company is focusing on the higher learning market as well as professional certifications. These areas will continue to see strength, especially with individuals looking for remote education opportunities. The company is also leaning into the need for workers in low-skill jobs who need to increase their digital skills.
That said, COUR stock may simply be a case of a stock that got ahead of itself. The company went public in April 2021. At that time, remote and online learning seemed the new normal. It certainly has a place, but not to juscompany'scompany’s $45.78 debut price. Nevertheless, despite lowering some price targets, analysts still give the stock a 116% upside.
About Coursera
Coursera, Inc operates an online educational content platform in the United States, Europe, Africa, the Asia Pacific, the Middle East, and internationally. It operates in three segments: Consumer, Enterprise, and Degrees. The company offers guided projects, courses, and specializations, as well as online degrees; and certificates for entry-level professional, non-entry level professional, university, and MasterTrack.
Read More - Current Price
- $8.31
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 9 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $10.52 (26.6% Upside)
#7 - ZEEKR Intelligent Technology (NYSE:ZK)
2024 is turning out to be a solid year for companies going public via initial public offerings (IPOs). ZEEKR Intelligent Technology Holding Limited (NYSE: ZK) is one of those companies. The company is a niche player in the battery electric vehicle (BEV) market. It’s also a sub-brand of Geely Automobile (OTCPK: GELYY) one of the legacy automotive companies of China.
The stock debuted in early May 2024 and is already down about 4.4%. Part of that is just poor timing. The EV industry is under pressure as consumer demand is weak, and consolidation in the industry seems likely. The company may also be getting hit because it’s a Chinese company at a time when the Biden administration is pledging to impose tariffs on Chinese EVs.
As a newly public company, investors don’t have much history to go on. Investors looking to get involved will want to pay close attention to what the company has to say when it reports later this year.
About ZEEKR Intelligent Technology
ZEEKR Intelligent Technology Holding Limited, an investment holding company, engages in the research and development, production, commercialization, and sale of the electric vehicles and batteries. It offers battery electric passenger vehicles (BEVs) and SUVs. The company also produces and sells electric powertrain and battery packs for electric vehicles, such as motors and electric control systems; and provides automotive related research and development services.
Read More - Current Price
- $27.55
- Consensus Rating
- Buy
- Ratings Breakdown
- 6 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $32.02 (16.2% Upside)
Stocks that are trading near their 52-week lows are frequently targeted as quick trades because of the opportunity for quick price movement. However, many of these stocks present opportunities for long investors to "buy the dip." This opportunity is particularly profitable with dividend-paying stocks because adding to your position on a correction allows you to benefit from compounding.
However, not every stock that's trading at a 52-week low is a good buy. That's where traders and investors can part company. If you're looking to hold a stock for a year or longer, you'll want to feel comfortable that the stock offers solid long-term potential.
MarketBeat is committed to providing you with tools to make you a more profitable investor. MarketBeat provides a list of stocks trading at their 52-week lows as a free tool for all investors. You can find this list under the Market Data menu. You can screen the list for different criteria, such as market capitalization, sector, media sentiment, or analyst ratings.
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