3 Stocks Near 52-Week Lows Worth Buyinghttp://www.fool.com/investing/general/2011/08/09/3-stocks-near-52-week-lows-worth-buying.aspx Sean Williams
August 9, 2011
Just as we examine companies each week that may be rising past their fair value, we can also find companies potentially trading at a bargain price. While many investors would rather have nothing to do with companies tipping the scales at 52-week lows, I think it makes a lot of sense to determine whether the market has overreacted to the downside, just as we often do to the upside.
Here's a look at three fallen angels trading near their 52-week lows that could be worth buying.
Growth? I'll take it!
First, the company still occupies the No. 1 spot in PC-industry market share, beating out Dell (Nasdaq: DELL ) , Acer, and Lenovo. Secondly, even with the contraction in the personal computing segment, commercial account revenue grew by double-digit percentages in its most recent quarter. Finally, the company hiked its dividend 50% this past quarter, bringing the current yield up to a more tantalizing 1.3%. With a very low payout ratio of about 12%, and trading at less than six times forward earnings, Hewlett-Packard definitely looks cheap.
The stock of steel
It's very difficult to argue against at least adding Arcelor to your watchlist, considering that this company has a long-term growth rate of 23% and is currently trading for less than 60% of its book value. Assuming worldwide growth doesn't come to a screeching halt, it's very likely that Arcelor's products will remain in high demand -- making its current forward P/E of 5.6 seem like a steal. Arcelor's rival U.S. Steel (NYSE: X