Stock prices are at 52-week low –
Company A's stock price touched a new 52-week low. Many of us want to know – is this the right time to buy stocks? Before deciding, should you understand what it is? 52-week low means that A's share price is now trading at the lowest price compared to the last 52 weeks of the year (including all trading days)
Investment Strategy – Stocks at 52-week low
Many investors believe that the winning strategy is to buy stocks at or near new lows. This group of investors believe that the stock is the worst end, since then, the stock will rise. Each of these investors should be cautious, the worst is not over. If a stock trades at a 52-week low, this does not mean that the price is the lowest price the stock can hit. While stocks can rebound and start to make profits, there is also an opportunity for stocks to fall further and set a new benchmark for negative outlook.
The first thing investors need to understand is why the company's stock prices are trading at the lowest level. Why stock prices plummeted? What are the causes? To truly understand this movement, a clever investor needs to examine all company-related news, company finances, industry conditions, market conditions and disputes around the company. This will give a concrete idea of the reason behind the negative inventory performance. According to the analysis and discovery, if the company's fundamentals look good and have the potential for future growth, investing in stocks
Getting these data is very simple. Go to any stock data site / business newspaper, check 52-week high / low prices. Even on a few sites you will get a list of stocks that have reached new highs and lows.
Caution – Do not buy stocks as it is at 52-week lows and it is still not cheap.