S&P 500 Laggards: Nike and Rollins Fall to New 52-Week Lows
The S&P 500's recent performance has been impressive, with a +4.0% return over the last month. However, not all stocks in the index have fared as well, and two companies have fallen to new 52-week lows.
Nike (NKE) is one of these market laggards, trading at its weakest price of the last year with a market value of about $58.0 billion. The company's stock has declined 10.7% over the last month and 47.4% in the past year.
On the other hand, Rollins (ROL) has seen a steeper one-month slide, down 19.8%, but its revenue grew 9.9% over the last twelve months. This suggests that the business itself is expanding, and the stock's decline may be more of a market reaction than a reflection of underlying problems.
A 52-week low can signal either fundamental trouble or a rare opportunity to buy into a solid company at a discounted price. The key is to look beyond the price and examine the business fundamentals, including revenue growth and cash flow.