These 3 Blue Chip Stocks Are Trading Near Their 52-Week Lows
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These 3 Blue Chip Stocks Are Trading Near Their 52-Week Lows
09 mins
If you’re looking for deals in the stock market today, there are some incredibly great ones to consider. You don’t have to go out hunting for stocks that come with significant risks, either. Instead, some of the best opportunities involve buying shares of established, blue chip companies with terrific track records. It may sound too good to be true, but oftentimes the best buys are the most obvious ones.
Three stocks that are trading near their 52-week lows right now that can be great bargain buys over the long run include Microsoft (NASDAQ: MSFT), Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB), and Visa (NYSE: V). Here’s how cheap these stocks are today, and why you’ll want to consider buying them right now.
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Tech giant Microsoft might just prove to be the deal of 2026. It’s not often you can buy one of the top tech stocks in the world at an amazing price. But Microsoft’s stock has fallen by close to 20% this year due to general bearishness in tech and concerns about inflated valuations in the market.
But it’s hard to make the case that Microsoft is overvalued these days, as it trades at a price-to-earnings (P/E) multiple of around 25, which is in line with the S&P 500 average. And given its robust opportunities in artificial intelligence, that should justify a higher premium for the stock.
Microsoft’s stock closed at just over $393 on Tuesday, which is roughly 10% from its 52-week low of $355.67. And that’s with the stock rallying recently. It’s actually been doing well in recent weeks and has been trending upward — this could be a sign that investors are finally recognizing the opportunity here. That’s why it may be time to pounce on this deal, as the stock could be in the early stages of a much larger rally.
Another fantastic blue chip stock to buy today is Berkshire Hathaway. It’s down a modest 5% this year, but it’s been sluggish for a while, declining close to 10% over the past 12 months. At around $478, it’s about 5% away from its 52-week low of $455.19.
Investors may be less enamored with the stock now that Warren Buffett isn’t the CEO anymore. However, Greg Abel is a worthy successor who Buffett believes puts the business in good hands and will ensure it’s run largely the same as it has in the past. Berkshire isn’t suddenly going to become a much riskier business and deviate from its long-term vision.
Nonetheless, investors may be less excited to own Berkshire. While Abel may be a capable and strong CEO, it’s hard to fill the shoes of Buffett, whose name alone is synonymous with value investing. Berkshire trades at 15 times earnings and can be a great pick up for long-term investors.
Rounding out this list of solid blue chip stocks is Visa. Shares of the credit card company are down 11% this year. Concerns about caps on credit card interest and a general weak outlook for the economy are among the reasons investors may have been feeling bearish on the stock this year. Visa’s stock closed at a little over $311 on Tuesday, putting it within 6% of its 52-week low of $293.89.
Visa is a household name whose credit cards are known worldwide. The business has been growing well, and it’s a great way to invest in the global economy, because as spending increases, it will also result in greater credit card use. It generates fantastic profit margins: over the past 12 months, its net income totaled $20.6 billion, which was roughly 50% of the $41.4 billion in revenue it reported during that time frame. Even if its margins are diminished a little bit due to greater regulation around fees, the company’s likely to still be in a great position in the future.
Visa’s stock is technically the most expensive one on this list, as it trades at a P/E multiple of 29. But with a terrific business, a dominant market position, and plenty of long-term growth potential, I think it’s a no-brainer buy for long-term investors at its current levels.
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David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Microsoft, and Visa. The Motley Fool has a disclosure policy.
