72 Stocks at 52-Week Lows: A Warning or an Opportunity?

As of September 9th, 72 US and Canada-listed stocks worth over $500 million have hit their 52-week lows. This number is concentrated in the Consumer Discretionary sector, with 25 names on the list. Notably, McDonald's, a company valued at about $179.7 billion, has seen its stock price decline by 16.9% over the last year.

The largest companies on this list show a disconnect between recent stock performance and longer-term business results. For example, McDonald's revenue grew 6.3% over the last twelve months despite its stock declining 6.7%. TJX Companies saw its stock slide 20.3% over the last month, while its revenue grew 7.7%.

Investors should be cautious when considering these names and not buy solely based on price. Trefis suggests checking the health of the underlying business before making a judgment on the stock. The company's Buy the Dip screen asks which marked-down stocks still have growth and cash generation to recover.