When a stock hits a new 52-week low, it can be due to several factors, including a poor business performance or broader macroeconomic conditions weighing on its valuation.
A stock that’s fallen to a new low isn’t always going to recover, but it may not always be destined to go even lower, either
It’s important to consider the context and to understand why a stock is performing poorly. Understanding the reason can help you assess whether it’s, in fact, a deal and the market may be overreacting, or whether the business is indeed facing concerning headwinds and should be avoided. Three stocks that recently hit fresh 52-week lows are AutoZone (NYSE: AZO), Intuit (NASDAQ: INTU), and PDD Holdings (NASDAQ: PDD).
Let’s take a look at why they’re struggling, and if they could be good bargain buys right now. AutoZone AutoZone shares fell recently after the company reported its latest earnings numbers. Although it technically beat expectations, the auto-parts retailer still fell sharply due to concerns about slowing growth and challenges in international markets.