19 ASX stocks slumping to 52-week lows: A painful time to be dip buying
Those making lows seem to keep on making more.
Source: iStock
Mentioned
KEY POINTS
- The momentum is getting worse for stocks making 52-week lows
- Only Lynas Rare Earths has managed to make a meaningful bottom and bounce
- Even defensive names like Elders and Amcor have struggled to show some upside
Welcome back to another 52-week low series where we trawl through some of the market’s most discarded and disliked companies.
Market Index’s 52-week lows scan shows users which companies are making 52-week lows on the given day. In this article, we’ll recap:
Stocks hitting rolling yearly lows
How the trend is your friend
A closer look at Lynas (ASX: LYC), Amcor (ASX: AMC) and Elders (ASX: ELD)
Stocks making 52-week lows
Note: This list only refers to companies with a market cap of more than $300 million and omits those that are thinly traded. Share price performance as at Tuesday, 9 May 2023.
Ticker | Company | Sector | YTD | 1-Yr |
|---|---|---|---|---|
Alcidion | Healthcare | -31.00% | -35.50% | |
Amcor | Industrials | -12.99% | -18.13% | |
APM Human Services | Industrials | -20.80% | -41.09% | |
Airtasker | Tech | -42.00% | -55.06% | |
Australian Strategic Materials | Materials | -18.47% | -79.55% | |
Betmakers Technology | Tech | -47.30% | -68.50% | |
Bank of Queensland | Financials | -14.49% | -27.45% | |
Bubs Australia | Staples | -38.33% | -47.02% | |
Calidus Resources | Materials | -25.93% | -77.14% | |
Elders | Staples | -22.30% | -44.20% | |
Frontier Digital Ventures | Tech | -33.82% | -58.53% | |
Grange Resources | Materials | -28.99% | -52.76% | |
Incitec Pivot | Materials | -15.16% | -21.35% | |
Lake Resources | Materials | -35.00% | -70.16% | |
Medical Developments International | Healthcare | -44.90% | -73.40% | |
Novonix | Materials | -34.01% | -76.11% | |
Southern Cross Media | Telcos | -23.50% | -47.42% | |
Syrah Resources | Materials | -53.40% | -50.20% | |
Tesserent | Tech | -56.20% | -59.30% |
Interesting observations
The trend is your friend: I skimmed some of the stocks that appeared in my previous 52-week low table – which featured 18 stocks. There was only one name that managed to stage a meaningful bottom whereas everything else has either a) continued to move sideways or b) grind lower. Here are a few price charts of those previous 52-week low names – But after a couple, you get the gist of things.
Airtasker 12-month price chart (Source: Market Index)
Bank of Queensland 12-month price chart (Source: Market Index)
Novonix 12-month price chart (Source: Market Index)
Tesserent 12-month price chart (Source: Market Index)
The one bottom: Lynas has rallied more than 25% from its 52-week low of $6.02 in early April. Its performance has been further buoyed by an extension in its Malaysian operating licence, announced on 8 May as well as the bottoming of lithium prices in China.
Amcor’s disappointing results: Amcor Q3 results were seen as disappointing, flagging lower-than-expected packaging volumes and consumer weakness. The stock fell 9.5% on the day of the result. Amor said it was taking cost actions to address the slowdown, including temporarily shutting down various plants to drive a potential $50-60m in savings from the fourth quarter. Volumes in Europe and North America declined, reflecting weak demand from segments such as coffee, protein and medical packaging. The average price target across 19 Sell-side analysts was lowered by 6.7% to $15.93.
AMC 12-month price chart (Source: Market Index)
Elders – When does one give up: Elders experienced a 23% selloff to $10.20 after the release of its FY22 results on 14 November 2022. It was a solid result but changes to management and FY23 outlook were the main let downs. Still, the company reiterated its target of 5-10% EBIT and EPS growth through the agricultural cycle. Given the stock’s single digit price-to-earnings ratio and defensive earnings – you’d think the selloff would provide a reasonable buying opportunity. But boy did the knife keep dropping. If you bought the initial dip – you’d be down another 23%. It seems like even defensive names like Amcor and Elders are quite vulnerable to ongoing economic concerns.
Elders 12-month price chart (Source: Market Index)
