When it comes to money management styles, there is no consensus. Some investment pros look for stocks showing "relative strength," meaning they've been trading very well in recent sessions. Yet some money managers shun that approach, preferring out-of-favor stocks. These pros often turn to the list of stocks making new 52-week lows as a source of ideas.
It's been slim pickings for these investors, but this week's sharp selloff brings a silver lining: The number of stocks hitting new 52-week lows is now rising quickly. In fact, new lows outnumbered new highs for this first time all year on April 4. Among the stocks that are plumbing the depths are some intriguing names.
Here's a small sample of rebound candidates, all of which hit a fresh 52-week low at some point this past week.
1. Titanium Metals (NYSE: TIE)
This company provides raw and processed titanium to airplane makers, sporting goods firms and others that need the metal's high strength and low weight. Shares have been slumping on concerns of a global economic slowdown, which would crimp demand. Right now, analysts expect sales to rise 13% in 2012 to $1.18 billion and another 20% to $1.45 billion in 2013. Then again, management doesn't hold conference calls, so analysts are just making their best guess. Perhaps the weak stock chart tells you that near-term estimates are too high.
NEW TIME Today, at 9:30 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for January 28th 2014 | John Ransom
NEW TIME Today, at 9:30 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for January 26th, 2014 | John Ransom