In the grand theater of the stock market, bargain stocks have often played a leading role in captivating discerning investors.
Those who understand the essence of buying robust businesses at bargain prices can attest to this strategy’s exponential wealth creation opportunity. The best companies may take a hit during recessions, yet investors with an eye on long-term value can effectively navigate these choppy waters.
The script of 2023 appears to be following the well-worn path of a painful market year. An exciting twist in this narrative is the abundance of opportunity to scoop up top-tier stocks at a discount.
The three 52-Week low stocks discussed in this piece are currently trading within a 5% to 10% reach of their lows. Embodying the spirit of value investing, these stocks are now on sale, offering a chance to buy quality at a markdown.
Clearway Energy (CWEN)
Anchored in Princeton, New Jersey, Clearway Energy (NYSE:CWEN) stands tall as one of the leading players in the clean energy domain. Its impressive portfolio flaunts over 5.7 gigawatts (GW) of wind, solar, and energy storage operations. Moreover, its massive investments in solar and wind power position it firmly at the forefront of the race toward net zero.
Boasting nearly a 5% yield, likely to climb in the upcoming years, the group exudes robust potential. Clearway’s management eyes a yield between 5% to 8% through 2026, which means shareholders can expect the bounty of increased distributions as the company strives to achieve this target.
Moreover, with the sale of its thermal business last year, Clearway is armed with a robust cash reserve. This could potentially result in lucrative renewable projects. The strategic move will bolster its dividend prospects.
Clearway’s stalwart financial standing positions it to continue its strategic acquisitions, even amid economic uncertainties.
Humana (NYSE:HUM) is the fourth largest health insurance provider in the U.S., enjoying a robust position in an industry that is effectively shielded from the effects of the economy. The essentiality of health insurance confers Humana with tremendous resilience during economic slowdowns, preserving its premium-related sales.
As the U.S. population ages, the demand for health insurance is poised to climb rapidly. Humana’s calculated investments in its Medicare Advantage business more than a year ago continue to pay dividends paying dividends. The insurer is projecting to welcome 775,000 new M.A. members this year.
Achieving this goal would translate as a remarkable 17% bump in Medicare Advantage membership over last year. An increase like this would mean a significant leap from previous forecasts and outperforming industry growth. This positive trajectory spells good news for Humana, which already boasts a membership of over 20 million.
UGI Corp (UGI)
UGI Corp (NYSE:UGI) has made its mark as a natural gas and electric power distribution business. A global player, UGI Corp skillfully manages the distribution, storage, transport, and marketing of energy products and related services across the U.S. and abroad.
The firm has established itself as a blue-chip dividend aristocrat. Its proven track record of top and bottom-line growth positions it for long-term dividend expansion. This surge is due to an expanding cash flow, a testament to its robust financial performance.
But UGI’s ambitions stretch beyond the traditional energy sector. The company is exploring growth opportunities in the renewable natural gas and solar power sectors. Despite the headwinds impacting its business, its year-over-year top-line growth of roughly 8.4% is virtually in line with its historical metrics. Additionally, forward estimates are mighty encouraging, positioning it for solid gains ahead.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines