I’m a firm believer in building watchlists for the stock market. I don’t have the cash to buy all the FTSE stocks I want in one go. Further, some shares I don’t want to buy right away, but only if the stock drops to a certain level. Here are several ideas that have fallen to 52-week lows that have been flagged up on my list.
Not the time to cry
boohoo group (LSE:BOO) is the first company to note. At 27.7p, it has hit fresh lows, compounding the 14% move lower in the share price over the past year.
One reason why I’m keeping an eye on this stock is because of Mike Ashley at Frasers Group. In a similar way to struggling retailer ASOS, Ashley has been busy recently buying boohoo shares. He’s shown in the past that he’s a shrewd investor in buying undervalued retailers. So this makes me think that boohoo could be a smart purchase at current levels.
The risk is that the disappointing financials continue. The business posted an adjusted loss of £9.1m in the half-year results. If this worsens, investors will readjust their expectations lower.
A property market idea
Assura (LSE:AGR) has dropped by 20% in the past year and hit lows just below 41p. The property business invests in GP and other primary care buildings in the UK.
A big impact on the company has come with a negative revaluation of the property portfolio. Another hit has come from rising interest rates, pushing up borrowing costs.
These are clearly issues, but the property sector is always cyclical. I think it makes much more sense to buy at 52-week lows instead of when the market is (potentially) booming in a few years’ time.
Chatter that interest rates might have peaked should also help the company going forward. Any future cuts next year could help to boost the share price.
A falling share price, but generous income
The Renewables Infrastructure Group (LSE:TRIG) has been a popular stock over the past year for renewable energy investors. Yet the share price has continued to slide and is down 18% over the past year.
What’s interesting to note here is that while the share price is at 52-week lows, the net asset value (NAV) hasn’t fallen that much. Granted, the last valuation we had was at the end of June. Yet the share price trades at a 19% discount to the NAV. I struggle to see the NAV falling by this much on the next update.
Of course, wind farms and solar parks are capital heavy investments that are hard to accurately value. But the long-term value of these projects is clear. We’re well on the way to shifting to renewable energy and this is only going to pick up traction in years to come.
In the meantime, the 6.58% dividend yield is something for income investors to benefit from.