Screening for bargains: 3 UK shares at 52-week lows
Share prices are usually much more volatile than the performance of the underlying business. It’s quite commonplace for shares in even large and mature companies to swing by 20% in either direction during the course of a year.
For this reason, buying shares in good companies when they’re temporarily depressed can be a profitable strategy – hence the popularity of screening for stocks at 52-week lows.
Against the backdrop of this year’s market volatility, I recently dusted off my 52-week low screen to search for potential bargains. In this article I’m going to look at three stocks we’ve rarely – or never – covered in the DSMR.
52-week lows: one sector dominates
I first created this screen in 2023. It uses some simple rules to find potentially businesses that might be interesting and are trading within 10% of their 52-week low share price:
The obvious caveat to any stock screen that highlights companies with falling share prices is that some of them will be falling for a good reason!
For this reason, I’ve used the StockRanks as an initial sanity check, stripping out any companies with a StockRank below 60.
At the time of...