Starbucks, Gilead And Ambev Are At 52-Week Lows: Should You Buy The Dip?

Capital market investors often look for entry points, hidden gems, and value bets. Quality stocks trading at or around their 52-week low levels offer one such opportunity window.

We looked at established companies that, recently, made new 52-week lows. We point readers’ attention to three such stocks, with $35 billion market capitalizations. These are: Starbucks Corp SBUX, Gilead Sciences GILD and Ambev SA ABEV.

Starbucks

Trading at around $86.83, the coffee franchise’s stock could potentially offer a buy-the-dip opportunity. The Seattle-based company’s shares command a market cap of over $98 billion on the stock market and sport an average three-month trading volume of 8.49 million.

The stock also offers, to its investors, a dividend yield of 2.63%.

Wells Fargo, TD Cowen, and TD Cowen released the last three analyst ratings on April 1, April 1, and March 19, 2024, respectively. These ratings suggest an average price target of $102.33 for Starbucks Corp, implying a potential upside of 17.23% based on the assessments of these three analysts.

Also Read: $100 Invested In This Stock 15 Years Ago Would Be Worth $1,600 Today

Gilead Sciences

Trading at around $69.32, this biopharma stock is currently trading about its 52-week lows. The company gained widespread recognition for its development of antiretroviral drugs for the treatment of HIV/AIDS, including medications such as Truvada, Atripla, and Descovy.

Gilead stock offers a robust dividend yield of 4.43%.

Wells Fargo, Mizuho, and Truist Securities recently released the last three analyst ratings. These assessments collectively suggest an average price target of $83.33 for Gilead stock.

Based on these ratings, there is an implied 20.16% upside potential for the company.

Ambev

Ambev SA is widely renowned for its portfolio of beer brands, including popular labels such as Skol, Brahma, Antarctica, and Budweiser. Trading at $2.40, Ambev stock is near-about its 52-week low level of $2.36. The stock also offers a juicy dividend yield of 6.26%.

Based on the analysis of the 8 latest analyst ratings, Ambev SA has a consensus price target of $2.2. The most recent ratings were issued by Barclays, Jefferies, and Bernstein on March 4, 2024, Nov. 22, 2023, and May 24, 2023, respectively.

These assessments collectively indicate an average price target of $3.2 for Ambev stock. Consequently, there’s an implied 32.51% upside potential for the company based on these three analyst ratings.

These findings suggest that these quality stocks may present lucrative investment opportunities, offering potential upside for investors in the coming months.

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