These ASX shares just hit 52-week lows: Is this a buying opportunity?

The Coles Group Ltd (ASX:COL) share price is one of three trading at a 52-week low. Is this a buying opportunity?

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On Monday the All Ordinaries started the week with an impressive gain of almost 1.9% to 5,856.3 points.

Unfortunately, not all shares on the market were in as fine form. Some even dropped to 52-week lows.

The three ASX shares listed below made this unwanted milestone, is this a buying opportunity?

The Automotive Holdings Group Ltd (ASX: AHG) share price dropped to a 52-week low of $1.59 on Monday before recovering and pushing higher. This brought the auto retailer's year to date share price decline to a sizeable 56%. Automotive Holdings has struggled this year after falling house prices impacted car sales. This trend doesn't look likely to change any time soon, which could make the company one to avoid. Incidentally, a recent note out of Macquarie reveals that it has an underperform rating and $1.50 price target on its shares.

The Coles Group Ltd (ASX: COL) share price fell to a new low of $11.26 on Monday. When the supermarket giant's hit that level it meant that they had lost a massive 16% of their value since peaking at $13.37 shortly after listing on the ASX. Concerns that a new price war could be brewing between the big supermarkets and Amazon appears to have taken the wind out of its sails in recent days. While this would be disappointing, I think at this level Coles' shares are looking attractive.

The Paragon Care Ltd (ASX: PGC) share price sank to a 52-week low of 62 cents yesterday. The medical device, equipment, and product distributor's shares came under pressure recently after its annual general meeting update fell short of expectations. Paragon Care reported 7% organic growth year to date, which is lower than its 10% target. In addition to this, operating costs were running at around 30% of revenue for the first four months compared to its target of 26%. The good news is that management is working hard on a major cost program to combat this. While its growth may not be as strong as I'd like, I think the low multiples that its shares trade on make it well worth considering.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Automotive Holdings Group Limited and Paragon Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on 52-Week Lows

A female Woolworths customer leans on her shopping trolley as she rests her chin in her hand thinking about what to buy for dinner while also wondering why the Woolworths share price isn't doing as well as Coles recently
52-Week Lows

Why is the Woolworths share price at its lowest point since 2020?

We haven't seen Woolies shares this low since COVID.

Read more »

A bored woman looking at her computer, it's bad news.
52-Week Lows

Why this $7 billion ASX 200 stock is falling hard today

Investors were not impressed with this company's performance during the third quarter.

Read more »

a woman looks down at her phone with a look of concern on her face and her hand held to her chin while she seriously digests the news she is receiving.
52-Week Lows

3 ASX 200 shares hitting multi-year lows while the market rallies: Time to buy?

These three ASX 200 shares are missing out on the market rally.

Read more »

Female worker sitting desk with head in hand and looking fed up
52-Week Lows

Mineral Resources shares hit an almost 4-year low. What's going on?

It's been a bad few days to own this stock...

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
52-Week Lows

Why I think this ASX penny stock is a bargain at its 52-week low

This health tech share hasn't been feeling the love from the market lately. But is there an upside on the…

Read more »

Sad looking man wearing a lion mascot, symbolising a falling Liontown share price.
Resources Shares

Liontown shares at 52-week lows as lithium slump extends further

Investors aren't buyers of the lithium share at these depressed levels.

Read more »

Piggy bank sinking in water symbolising a record low share price.
Resources Shares

BHP shares hit 52-week low! Here's what brokers say will happen next

BHP shares are now the same price as they were in January 2020.

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Materials Shares

Mineral Resources share price sinks to 52-week low: Is it a buy?

Do analysts think this beaten down mining stock is in the buy zone?

Read more »