37 ASX stocks making 52-week lows: Resources and REITs lead the way
37 stocks with a market cap of more than $150m hit a 52-week low over the past week.
Source: iStock
Mentioned
KEY POINTS
- 37 stocks with a market cap of more than $150m hit a 52-week low in the past week
- Several commodity stocks including gold, graphite and fertiliser stocks hit fresh yearly lows
- REITs are underperforming as hawkish central banks weigh on property valuations
Welcome back to the 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. Today, we’ve grouped the stocks (above $150m market cap) that have hit a 52-week low in the past week plus a few broker notes of interest.
The Not So Hot Resources
Ticker | Company Name | Last Close | Sector | Market Cap | 1 Year |
|---|---|---|---|---|---|
IPL | Incitec Pivot | 2.68 | Materials | $5,244,007,936 | -18.30% |
SLR | Silver Lake Resources | 0.97 | Materials | $864,662,144 | -29.50% |
WAF | West African Resources | 0.82 | Materials | $823,980,096 | -33.90% |
CXL | Calix | 3.82 | Materials | $686,684,224 | -39.30% |
GRR | Grange Resources | 0.49 | Materials | $572,882,688 | -59.20% |
SYR | Syrah Resources | 0.79 | Materials | $567,754,112 | -36.30% |
BLY | Boart Longyear | 1.405 | Materials | $445,360,192 | -37.80% |
LKE | Lake Resources | 0.295 | Materials | $419,621,184 | -63.40% |
OMH | OM Holdings | 0.5 | Materials | $373,004,800 | -37.90% |
STA | Strandline Resources | 0.265 | Materials | $344,544,416 | -13.10% |
BCB | Bowen Coking Coal | 0.155 | Materials | $328,267,712 | -36.70% |
Incitec Pivot shares have been in a downtrend since November 2022, reflecting unwinding fertiliser and chemical prices. Earlier this month, Citi retained a Neutral rating and cut its price target from $3.15 to $3.00. The key takeaways from analysts include:
“Fertiliser prices continue to be weaker and we remain bearish over the near term as per Citi's UK Team.”
“We have reduced our FY23 urea prices by 2%, DAP (-2%) and ammonia (-14%) reflecting near term mark-to-market pricing. Combining the impact of additional costs at Phosphate Hill, our FY23/24 EBIT estimates are lowered by 14%.”
Discretionary
Ticker | Company Name | Last Close | Sector | Market Cap | 1 Year |
|---|---|---|---|---|---|
BAP | Bapcor | 5.86 | Discretionary | $1,999,139,968 | -3.10% |
SGR | The Star Entertainment | 1.005 | Discretionary | $1,691,521,024 | -59.30% |
BLX | Beacon Lighting | 1.505 | Discretionary | $334,648,512 | -14.50% |
Staples
Ticker | Company Name | Last Close | Sector | Market Cap | 1 Year |
|---|---|---|---|---|---|
EDV | Endeavour | 6.19 | Staples | $11,229,440,000 | -17.00% |
ELD | Elders | 6.15 | Staples | $970,154,816 | -50.50% |
CBO | Cobram Estate Olives | 1.26 | Staples | $511,400,992 | -10.00% |
Macquarie says that “Australian consumer spending appears to be at a tipping point” after a series of negative trading updates from stocks including Treasury Wine, Universal Store, Baby Bunting, Premier Investments and more.
“We have been warning about a slowing consumer for the past 12 months. It has taken longer than we initially expected, but the brakes are being firmly pressed at the moment.”
“In this environment we prefer consumer staples (COL and EDV) over consumer discretionary (JBH and HVN),” the analysts said.
An Outperform rating for Endeavour was maintained with a $6.90 target price.
Financials
Ticker | Company Name | Last Close | Sector | Market Cap | 1 Year |
|---|---|---|---|---|---|
BOQ | Bank of Queensland | 5.33 | Financials | $3,529,257,984 | -21.00% |
ZIP | Zip Co | 0.41 | Financials | $357,285,408 | -23.40% |
MYS | Mystate | 3.04 | Financials | $337,550,912 | -25.10% |
SVR | Solvar | 1.49 | Financials | $310,953,408 | -21.60% |
Bank of Queensland is down 21% year-to-date and trading at levels not seen since June 2020.
“After a share price sell-off, investors are starting to consider BOQ’s buy case, seemingly attracted to the cheap valuation and its 7.4% dividend yield. However, we think the optional entry point is yet to arrive,” Citi analysts said in a note earlier this month.
“BOQ is more susceptible to a deteriorating asset quality cycle, more exposed to deposit competition, whilst in the midst of a period of strong cost growth.”
A Neutral rating was maintained with a $5.75 target price.
Healthcare
Ticker | Company Name | Last Close | Sector | Market Cap | 1 Year |
|---|---|---|---|---|---|
RHC | Ramsay Health Care | 54.45 | Healthcare | $12,586,120,192 | -23.90% |
IMU | Imugene | 0.085 | Healthcare | $571,650,496 | -48.50% |
Industrials
Ticker | Company Name | Last Close | Sector | Market Cap | 1 Year |
|---|---|---|---|---|---|
ALX | Atlas Arteria | 6.17 | Industrials | $8,850,085,888 | -17.90% |
JLG | Johns Lyng Group | 5.24 | Industrials | $1,350,834,048 | -6.60% |
Johns Lyng shares tumbled 12.2% on 22 June after an earnings upgrade flagged weaker-than-expected BAU growth.
“At first glance, this appears to be a guidance upgrade that we have been expecting, but BAU growth of 23% YoY fell short of expectations, a main culprit for share price reaction,” Citi analysts said in a note last week.
“We think cautious sentiment on BAU is likely to remain an overhang until it is dispelled with concrete evidence of strong growth.”
A Buy rating was maintained with a $6.50 target price (previously $9.65).
Lots of REITs
Ticker | Company Name | Last Close | Sector | Market Cap | 1 Year |
|---|---|---|---|---|---|
CHC | Charter Hall Group | 10.52 | Real Estate | $5,037,420,032 | -7.30% |
RGN | Region Group | 2.24 | Real Estate | $2,562,033,920 | -22.20% |
GOZ | Growthpoint Properties | 2.76 | Real Estate | $2,094,858,880 | -22.70% |
CMW | Cromwell Property Group | 0.51 | Real Estate | $1,309,432,960 | -32.90% |
CQE | Charter Hall Social Infrastructure | 2.85 | Real Estate | $1,042,537,984 | -18.10% |
COF | Centuria Office | 1.375 | Real Estate | $821,338,304 | -24.00% |
HCW | Healthco Healthcare and Wellness | 1.31 | Real Estate | $737,176,896 | -10.70% |
RFF | Rural Funds Group | 1.685 | Real Estate | $648,483,264 | -36.90% |
GDI | GDI Property Group | 0.665 | Real Estate | $350,851,008 | -31.80% |
“The recent cash rate hike by RBA as well as a resultant move to higher cash rate expectations could be a sentiment negative for investments into AREITs,” Citi analysts said in a note earlier this month.
“However, we would flag that the sector is already trading at an implied discount of c.20% vs. NTA, excluding the fund managers, indicating significant downside being already priced in.”
Moving forward, the analysts said to pay close attention to upcoming revaluation updates and look out for movements in book value.
Technology
Ticker | Company Name | Last Close | Sector | Market Cap | 1 Year |
|---|---|---|---|---|---|
SDR | Siteminder | 2.67 | Technology | $761,933,120 | -32.10% |
BRN | Brainchip | 0.335 | Technology | $612,395,072 | -63.80% |
3PL | 3P Learning | 1.12 | Technology | $304,132,608 | -9.70% |
