Buy low is a mantra for many successful investors and while some companies lose ground as a result of structural flaws, a changing economic landscape or another misstep, others selling at their 52-week lows may be on their way back up again. To highlight the latter group, prime for a return we're highlighting between a number of stocks trading within 10 percent of their worst trading levels of the last year.
Among the stocks that appear more bullish are the following:
Cisco (NASDAQ:CSCO), the recently maligned networking and communications device producers appear to be well positioned for a comeback. At present, shares are trading 4.78 percent above 52-week lows. The stock declined by close to 38 percent this year but most recently it was trading at $17.39. Shares of Cisco often find resistance when they neat around $17.50 but some analysts are becoming more enthusiastic about shares breaking through that boundary. The S&P gave Cisco a positive four out of five star buy rating and analysts imagine profit margins to widen by January of 2012.
Best Buy (NYSE: BBY): Over the past year, shares of Best Buy have traded between $28.09 and $48. Today they’re trading at 31.32, around 9 percent above the 52-week low. In the past two days shares have climbed close to 3 percent and if the trend continues Best Buy could potentially make a comeback. Still, the reason for Best Buys decline to begin with is that the internet and one-stop shops like Target have a taken away some of its sales. Best Buy is the strongest remaining retailer of its kind, but they’ll need to tweak their sales strategy a bit if they want to stay that way.
Target Corp. (NYSE: TGT). Speaking of Target, this discount variety story is currently trading around 4.10 percent above its 52-week low. The stock has lost over 13.25 percent over the year, and down over 2 percent today around $49, is a dollar or so beneath the price where it starts to show resistance. Target has established itself as a mainstay in its area and has consistently strong advertising and in-store innovation. With a lot of consumer spending dollars being eaten up elsewhere, this retailer naturally takes a hit, but a purchase now could pay off during Q4 when people head to the one-stop shop for gifts, decorations and food. The S&P has given the stock a positive four out of five buy rating.
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