4 Stocks At 52-Week Lows That Could Bounce

An important indicator for investors to consider could be a stock’s 52-week trading range, the range showing the lowest and highest price a particular stock traded over the trailing year.

Finding stocks trading near 52-week lows can be a strategy to find fallen companies that could still have fundamentals, a story in place and could be rebound candidates.

Here is a look at four stocks at 52-week lows that could bounce.

Splunk: Shares of Splunk Inc SPLK are down only 2% over the last 52 weeks. Despite the small decline, shares are down significantly from their peak level of $225.89 hit in August.

The company reported fourth-quarter revenue of $745 million, which was a 6% year-over-year decline. Full-year revenue of $2.23 billion was down 5% year-over-year.

The company has grown its data-to-everything platform and saw cloud revenue up 72% to $171 million in the fourth quarter. The company is estimating revenue of $480 million to $500 million, which would be up from the $434.1 million reported in last year’s comparable period.

Related Link: ROCE Insights For Splunk 

iRhythm: Digital healthcare company iRhythm Technologies Inc IRTC offers ZIO, which can diagnose irregular heart rhythms quickly and potentially prevent more serious medical events like a stroke from happening.

The company reported revenue of $78.8 million, up 33% year-over-year in the fourth quarter. Full-year revenue for iRhythm was $265.2 million, up 24% year-over-year.

The company has less than 20% penetration in its core market and is seeking to expand to additional regions.

Shares of iRhythm have traded between $76.14 and $286.19 over the last 52 weeks.

Meten EdtechX Education Group: A former SPAC, Meten EdutchX Education Group Ltd METX, has fallen from a high of $13.03 to $1.89.

The company offers English language training in China — the company’s segments are adults, juniors and online — and was hurt by the COVID-19 pandemic.

In the last fiscal year, revenue fell 38% year-over-year for the company with declines of 58% for adults and 22% for juniors.

The company announced this week that student enrollment in the junior segment was up 483% in the first quarter and showing signs of a return to pre-pandemic growth. Meten is seeking additional growth with the offering of three additional languages and exam prep offerings.

Blockchain education was also announced as a new service in April.

Quidel: Diagnostic testing company Quidel Corporation QDEL had quite the year with shares hitting a high of $306.72. But this week shares hit a new 52-week low of $105.93.

Strong demand for the company’s SARS tests for COVID-19 testing has been a huge driver of sales.

The company reported $908.2 million in fourth-quarter revenue, up 432% year-over-year. COVID-19 related revenue represented $678.7 million of the total.

In the last fiscal year, the company had $1.66 billion in revenue, up 211% year-over-year. COVID-19-related revenue for the full year was $1.16 billion.

The company has launched additional products and is still seeing strong demand for COVID-19 tests. The selloff in shares implies the company’s growth will fade with the pandemic lessening or shares being too inflated due to the COVID-19 trade.

Meeting somewhere in the middle, Quidel could be ripe for a bounce. The company will report its quarterly financials on May 6.

(Photo by Mariah Solomon on Unsplash)