Where The Selling Ran Deepest: 9 Stocks At 52-Week Lows

SPY: State Street SPDR S&P 500 ETF Trust logo
SPY
State Street SPDR S&P 500 ETF Trust

A short list of new market lows is led by a consumer giant and a technology name with a steep one-month decline.

As of Wednesday, 9 US and Canada-listed stocks with a market value above $500 million are trading at their 52-week lows. The largest name on the list is Nike (NKE), with a market value of about $57.2 billion, but the sharpest move belongs to Trade Desk (TTD), down 31.1% over the last month. With the S&P 500 returning +3.4% over the same period, the central question is what happens when a company’s stock price and its business fundamentals appear to move in opposite directions.

The full list of names follows below.

Photo by ArtsyBee on Pixabay

Wednesday’s Full 52-Week-Low List

Relevant Articles
  1. S&P 500 Stocks At 52-Week Lows: Wednesday’s Full List
  2. S&P 500 Movers | Winners: LITE, ANET, CHRW | Losers: MRNA, RDDT, GDDY
  3. 12 S&P 500 Stocks Hit 52-Week Highs On Wednesday
  4. Where The Buying Ran Strongest: 24 Small Cap Stocks At 52-Week Highs
  5. Market Movers | Winners: ANF, GTN-A, CAPR | Losers: GENB, EMAT, SYRE
  6. Where The Buying Ran Strongest: 10 Mid Cap Stocks At 52-Week Highs

The table below lists all 9 US and Canada-listed stocks in the Trefis coverage universe at their 52-week lows (the screen only considers companies with market values above $500 million), largest first, with one-day, one-week, one-month, and one-year returns:

Tickers Market
Cap
1D
% Chg
1W
% Chg
1M
% Chg
1Y
% Chg
NKE $57.2 Bil -2.3% -6.0% -10.4% -49.9%
APTV $9.9 Bil -0.8% -5.4% -22.1% -41.3%
TTD $6.2 Bil -1.7% -3.8% -31.1% -75.1%
STWD $5.8 Bil -1.3% -3.9% -4.5% -12.1%
CRUS $5.6 Bil -1.0% -6.5% -19.0% -4.9%
PFSI $3.8 Bil -1.7% -5.1% -14.6% -32.6%
OLN $2.0 Bil -0.3% -7.4% -19.0% -22.0%
PMT $0.8 Bil -0.6% -3.2% -5.7% -13.6%
GOOS $0.8 Bil -1.2% -7.4% -12.2% -31.1%

Is the business still growing while the stock is falling?

Trade Desk (TTD) stands out for the sheer velocity of its one-month slide. Yet its fundamentals tell a different story. The company’s revenue grew 11.6% over the last twelve months, and its free cash flow yield is 13.9%. A similar pattern appears in Aptiv (APTV), the second-largest name on the list. Its stock has declined 22.1% over the last month, while its revenue grew 5.3% over the last twelve months. These figures show a clear disconnect between recent market price and recent business performance.

So how should a disciplined investor use this list?

A 52-week-low list is not an automatic buy signal. It is a starting point for research. A low can mark a permanently damaged business, or it can mark a temporarily marked-down one. The disciplined move is to ignore the stock chart long enough to check the business itself. If the fundamentals are sound or improving, the price may be an opportunity. If they are deteriorating, the price is a warning.

If any of these names tempt you, resist buying a price alone. Our Buy the Dip screen asks the follow-up question that matters: which marked-down stocks still have the growth and cash generation to recover.

Weakness Is Information. It Is Not An Instruction

A 52-week low tells you what the market thinks today. It does not tell you what to do, and acting on price alone is how value traps get bought. The missing ingredient is always the same: is the business still sound?

Asking that question across thousands of stocks, every day, is exactly how the Trefis High Quality (HQ) Portfolio is built: roughly 30 names that pass the quality screens, held with rules instead of nerve. It has a track record of outpacing a benchmark that combines the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000. Let the low list sharpen your watchlist, and let the portfolio carry the risk.