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4 Growth Stocks to Buy Near Their 52-Week Lows

A jittery oil market, an ambiguous interest rate policy of the Fed and mixed U.S. economic data has left investors in a state of turmoil, of late. Fearing overvaluation, several investors chose to cash in at current valuations thereby triggering a sell-off and exerting downward pressure on many fundamentally attractive stocks. As a result of this market overreaction, many such stocks that fell to their 52-week lows are now hovering at attractive valuations. Such stocks enable investors who showcase patience and believe in positive long-term fundamentals to earn greater returns and make more money, going ahead.

We here at Zacks help investors to zero-in on the most promising stocks of this kind using our new style score system. We use our potent mix of a favorable growth score of ‘A’ or ‘B’, a Zacks Rank #1 (Strong Buy) or 2 (Buy) and current price as a percentage of 52-week high minus low range, to winnow the wheat from the chaff when making the selection.

The Metrics

Our Zacks Rank system is a timeliness indicator, meaning that value investors can use it to identify precisely when a company's prospects are beginning to improve. Stocks with a Zacks Rank #1 or 2 are the ones to look out for. Those with a Growth Score of A or B are deemed the strongest and are expected to yield the highest return over the next 1-3 months for investors. Meanwhile, stocks hovering in the 52-week high-to-low range signal a potential rebound in the coming days.

Our Picks

On the basis of the abovementioned measures, we hereby shortlist four stocks that are worthy of a place in an investor’s portfolio.

Discovery Laboratories Inc. DSCO is a development-stage pharmaceutical company that focuses on developing compounds to treat respiratory diseases. The loss estimate of the company for the current year has narrowed by 50.3% on the back of a positive estimate revision, in the last 30 days. This signals healthy recovery going ahead. The stock carries a Zacks Rank #2 and a growth score of B. The stock currently trades at 1.7% of its 52-week high minus low range.

XOMA Corporation XOMA is a biopharmaceutical company engaged in the discovery, development and manufacture of therapeutic antibodies. The loss estimate of the company for the current quarter has narrowed by a penny, on the back of one positive estimate revision, in the last 30 days signaling a possible recovery in the near term. The stock carries a Zacks Rank #2 and a growth score of A. The stock currently trades at 2.4% of its 52-week high minus low range.

InspireMD, Inc. NSPR is a medical device company focused on the development and commercialization of its proprietary stent system technology, MGuard. The loss estimate of the company for the current year has narrowed by 11.8% on the back of a positive estimate revision, in the last 30 days. This is a strong sign for a possible rebound in the coming days. The stock carries a Zacks Rank #2 and a growth score of B. NSPR currently trades at 2.7% of its 52-week high minus low range.

Vanguard Natural Resources, LLC VNR is an independent natural gas and oil company, focused on the acquisition, exploitation and development of natural gas and oil properties. In the last 30 days, the company’s EPS growth consensus estimate has gone up on the back of three positive estimate revisions. The stock carries a Zacks Rank #1 and a growth score of A. The stock currently trades at 0.25% of its 52-week high minus low range.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
XOMA CORP (XOMA): Free Stock Analysis Report
 
DISCOVERY LABS (DSCO): Free Stock Analysis Report
 
VANGUARD NATURL (VNR): Free Stock Analysis Report
 
INSPIREMD INC (NSPR): Free Stock Analysis Report
 
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