In the game of baseball, few events are more frustrating than watching a substandard player make woefully unproductive hacks at the plate, which brings us to the concept of acquiring stocks near 52-week lows. While contrarian sentiment suggests red ink actually means green lights, the opposite tends to be true. If a publicly traded company crumbles, there’s a reason for it, and usually not a good one.
Nevertheless, someone always ends up winning the lottery. And it’s quite possible that as soon as you acquire bounce-back stocks, they do just that: bounce right back up and make you look like a freaking genius. Of course, the problem with bottom fishing stocks is that you’re more likely in the long run to lose – and lose big. Thus, you want to pick and choose when to swing.
If you do want to invest in low stocks, you’re going to want to filter out strong companies that fell under hard times rather than simply enterprises that stunk up the field. This way, you’ll give yourself better odds.
With that, below are compelling stocks ready for a bounce back.
Cal-Maine Foods (CALM)
Based in Jackson, Mississippi, Cal-Maine Foods (NASDAQ:CALM) is a fresh egg producer. According to its public profile, most of its eggs are sold in the mid-Atlantic, midwestern, southeastern, and southwestern states. Further, these areas account for approximately a quarter of U.S. egg consumption. Despite its everyday relevance, Cal-Maine hasn’t gotten off to a great start this year, slipping almost 19% since the Jan. opener.
In the trailing one-year period, CALM gave up nearly 11% of its equity value. Its 52-week price range goes from $43.75 to $65.32. At the time of writing, CALM trades hands at $45.19. From that viewpoint, it easily ranks as one of the stocks near 52-week lows. At the same time, it could bounce back given its strong zero-debt balance sheet.
In addition, Cal-Maine’s three-year revenue growth rate on a per-share basis clocks in at 9.2%, above 60.9% of sector rivals. Also, its trailing-year net margin impresses at 24.82%. Put another way, CALM is too robust and too pertinent to stay deflated indefinitely. Thus, it’s one of the possible bounce-back stocks to consider.
Gulf Resources (GURE)
Based in China, Gulf Resources (NASDAQ:GURE) represents its home nation’s leading bromine and crude salt producer, per its website. For those unfamiliar with bromine is critical to life. While harmful to the atmosphere, various industrial players use bromine to purify water. The element also finds utility in medicines and in the field of sanitation. Nevertheless, the market doesn’t seem to care at the moment, making GURE one of the stocks near 52-week lows.
Since the Jan. opener, shares fell more than 25%. In the trailing year, they’re down almost 43%. Its 52-week price range goes from $2.34 to $4.95. Right now, GURE trades at $2.41. Still, for those interested in bottom fishing stocks, Gulf Resources could be intriguing for its fundamental relevance.
According to data from Gurufocus, GURE carries a strong balance sheet. In particular, its cash-to-debt ratio clocks in at 11.36 times, outpacing 81.44% of its peers. Also, the company continues to grow its top line. In 2022, Gulf posted $66.09 million in revenue, up significantly from the $55.03 million posted in the prior year. Combined with impressive profit margins, GURE is one of the stocks ready for a bounce back.
SIGA Technologies (SIGA)
If you’re ready to absorb risks while you invest in low stocks, biotechnology firm SIGA Technologies (NASDAQ:SIGA) makes for an enticing case. A commercial-stage pharmaceutical firm, SIGA focuses on the health security market. This arena comprises of countermeasures for biological, chemical, radiological, and nuclear attacks. It seems relevant. However, SIGA fell almost 30% since the Jan. opener.
Moreover, in the trailing 365 days, SIGA gave up over 62% of its equity value, an obviously worrying figure. Its 52-week range goes from $4.83 to $26.99. At present, SIGA trades hands at $4.93. Still, on a fundamental note, the underlying enterprise could rise higher based on its specialty of pox-virus vaccines.
In May of this year, CNN reported that a potential risk for new cases of mpox (formerly known as monkeypox) may emerge this summer. Cynically, of course, such an outcome would probably benefit SIGA, which develops the smallpox antiviral drug TPOXX. However, medical practitioners have used Tpoxx to address mpox. Also, Tpoxx is undergoing clinical studies as a treatment for mpox. Therefore, SIGA could very well be one of the stocks near 52-week lows that absolutely skyrockets.
On the date of publication, Josh Enomoto did not have (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.