Companies trading at or near 52-week lows often send skittish investors running. After all, a basic tenet of momentum investing is that, without a change in business fundamentals or external circumstances, stocks will tend to continue to trend in the same direction they've already been headed. Shares trading at their lowest levels in a year suggest more of the same to come.
On the other hand, those with a higher tolerance for risk and a longer investment timeline may find that companies in this position represent potential value plays. "Buy low, sell high" is also a common investing principle, but the "buy low" part can scare some investors.
As of mid-June 2025, the companies below are all trading at or near a one-year low, but investors can also argue that each may be able to reverse that trend and rally as well.
External Conditions Rock an Otherwise Solid Consumer Products Firm
Consumer products giant Spectrum Brands Holdings Inc. (NYSE: SPB) is behind popular brands such as Black & Decker, Remington, IAMS, OmegaSea, and many others. The company's products range from home appliances to personal care to pet supplies.
Unsurprisingly, Spectrum has suffered early in the year amid geopolitical uncertainty and depressed consumer sentiment. The company's second quarter of fiscal 2025, which ended March 30, reflected this, as net sales declined year-over-year (YOY) and earnings per share (EPS) fell far short of analyst predictions.
Although the quarter ended before the Trump administration's "Liberation Day" tariff announcement on April 2, the anticipation of tariffs may have already hindered Spectrum's operations due to the large volume of products the company imports.
Fundamentally, many of Spectrum's challenges early in the year were external. Additionally, the company has instituted cost-saving initiatives and inventory management practices that should help to relieve pressures. Investors will also be happy to know that Spectrum prioritizes free cash flow as uncertainty continues.
Analysts are optimistic that the firm will ride out the storm, with four out of six considering SPB a Buy and consensus price targets suggesting nearly 73% in upside potential.
Challenging Biopharma Landscape Sends Simulations Plus Shares Falling, But Software Remains Compelling
Simulations Plus Inc. (NASDAQ: SLP) provides drug discovery and development software that utilizes AI and machine learning. Like Spectrum above, Simulations offers a compelling suite of products but has suffered from soft demand, in this case across the biopharma space, due to budget reductions and tariff uncertainty.
To be sure, the short-term view of Simulations Plus is not optimistic: the firm missed expectations in its most recent earnings report, it cut its revenue guidance due to demand weakness, and it faces slowing organic growth, among other factors.
Simulations' software segment has been resilient throughout the recent difficult period, although its services business has suffered, which is a point in favor of longer-term investors watching SLP for a buy opportunity, as it speaks to the many benefits the company's software provides the broader industry.
Analysts agree, with five out of six rating the firm a Buy and estimating more than 116% in upside potential. Until external conditions improve, Simulations has reduced its workforce and closely monitors expenses. Investors may want to see if the immediate term brings a lower bottom to SLP prices.
Amid Rebranding and a Demand Slump, Lucky Strike May Provide an Opportunity to Buy Low
Entertainment center operator Lucky Strike Entertainment Corp. (NYSE: LUCK), until late 2024 known as Bowlero, is in the midst of a major rebrand initiative that aims to elevate the user experience at its locations.
One highlight is the heightened food and beverage offerings at rebranded Lucky Strike locations, which have likely contributed to high-single-digit growth in the company's food segment as of the latest quarter.
Investors should expect reduced demand for Lucky Strike's services so long as consumer sentiment remains depressed; the company has also noted a soft period for its corporate events business.
There may be strong upside potential for those willing to wait until conditions improve and Lucky Strike furthers its rebranding efforts. For now, two out of four analysts view LUCK as a Buy, estimating that shares could climb by 27%.
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