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.
A lustrous opportunity
Is this the end of the fairy tale rally for gold and silver? You might think so, given that widely followed gold bull Dennis Gartman announced that he had sold out of his entire gold position, predicting a greater chance at weakness than strength at this point. This action, along with several analysts warning investors to exercise caution, has led gold and silver down rather sharply. I, on the other hand, don't feel it's time to give up on the individual miners just yet, especially silver miner Pan American Silver
Mining stocks in general have greatly underperformed the metals they produce, but that trend could be about to change. Thankfully for shareholders of a select few companies, including Silver Wheaton
What banking crisis?
Perhaps someone forgot to tell Bank of Montreal
For the full year, Bank of Montreal recorded an 11% jump in earnings per share and a 40-basis-point jump in return on equity. Nearly every aspect of the bank's business saw strong growth, with U.S. deposits climbing by $34 billion and the company's personal and commercial banking division reporting record income. Let's also not forget that Bank of Montreal boasts an impressive dividend north of 5% while other large North American money center banks like Bank of America
Investing in the market is itself a gamble, but what about investing in a company that makes money from your urge to gamble? Wynn Resorts
As I see it, Wynn's quarter missed the mark by $0.13 because its Las Vegas casino only won money on 18.3% of wagers as opposed to 22.8% of wagers in the year-ago period. If you take out this anomaly, you'd see a company that reported earnings in line with expectations. Revenue rose by a ridiculous 30%, with its Macau revenue climbing a robust 42%. I'd hardly call this quarter a failure considering that Wynn reversed a year-ago loss, but that's how Wall Street seems to have perceived it. I personally would dare any Wall Street analyst to find a better-run casino that can grow at even half the rate Wynn can. It's the premier name on the strip and it's a vice stock that you may want to roll the dice on in your personal portfolio.
That's two weeks in a row I've been able to find a good mix of growth and value hovering around fresh 52-week lows. Despite these wild market gyrations, good companies are being left out in the cold. Keep your eyes peeled for these prospective values!
In the meantime, consider adding these potential winners to your free and personalized watchlist and get your own personal copy of our free report, "The Motley Fool's Top Stocks for 2012," and see what our analysts have dubbed the "must-own" company for the new year.
Fool contributor Sean Williams owns shares of Bank of America, but has no material interest in any other companies mentioned in this article. He is a sucker for the roulette table despite its terrible odds. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. The Motley Fool owns shares of Citigroup and Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy that's always on the lookout for a good deal.