Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message| ()  

Here we present a list of nineteen stocks that are trading just above their 52-week lows. All of these stocks have also seen downgrades in their average analyst rating over the last three months.

Analyst ratings are presented on a linear scale, where 1 = "Strong Buy" and 5 = "Strong Sell". All of the stocks in our list have seen their ratings move closer to 5, i.e. worsening analyst sentiment over the last three months.

Is this pessimism a contrarian opportunity to buy in? Use this list as a starting off point for your own analysis.

Ratings data sourced from Reuters, all other data sourced from Finviz.



List sorted by ratings downgrade percentage. (Note: Data sourced on Friday afternoon)

1. MedAssets, Inc. (MDAS): Healthcare Information Services Industry. Market cap of $871.21M. The stock is currently 8.00% above its 52-week low. Average analyst rating was downgraded 65.54% over the last three months (from 1.48 to 2.45). The stock is a short squeeze candidate, with a short float at 10.8% (equivalent to 5.92 days of average volume).

2. E-House Holdings Limited (EJ):
Property Management Industry. Market cap of $945.58M. The stock is currently 5.72% above its 52-week low. Average analyst rating was downgraded 33.33% over the last three months (from 1.5 to 2). This is a risky stock that is significantly more volatile than the overall market (beta = 2.03). The stock has performed poorly over the last month, losing 14.58%.

3. Greenhill & Co., Inc. (GHL): Investment Brokerage Industry. Market cap of $1.82B. The stock is currently 3.66% above its 52-week low. Average analyst rating was downgraded 28.76% over the last three months (from 2.33 to 3). GHL has a relatively low correlation to the market (beta = 0.78), which may be appealing to risk-averse investors. Short float at 17.69% (equivalent to 14.44 days of average volume), implying the stock is a short squeeze candidate.

4. Savient Pharmaceuticals, Inc. (SVNT):
Biotechnology Industry. Market cap of $659.80M. The stock is currently 2.54% above its 52-week low. Average analyst rating was downgraded 28.37% over the last three months (from 2.08 to 2.67). This is a risky stock that is significantly more volatile than the overall market (beta = 2.11).

5. Nektar Therapeutics (NKTR): Biotechnology Industry. Market cap of $996.45M. The stock is currently 2.34% above its 52-week low. Average analyst rating was downgraded 27.82% over the last three months (from 1.33 to 1.7). The stock is a short squeeze candidate, with a short float at 8.67% (equivalent to 8.37 days of average volume).

6. Pepsico, Inc. (PEP): Processed & Packaged Goods Industry. Market cap of $100.08B. The stock is currently 6.89% above its 52-week low. Average analyst rating was downgraded 27.16% over the last three months (from 1.62 to 2.06).

7. Cephalon Inc. (CEPH):
Biotechnology Industry. Market cap of $4.15B. The stock is currently 3.34% above its 52-week low. Average analyst rating was downgraded 26.44% over the last three months (from 2.08 to 2.63).

8. Overseas Shipholding Group Inc. (OSG):
Shipping Industry. Market cap of $918.06M. The stock is currently 0.87% above its 52-week low. Average analyst rating was downgraded 25.48% over the last three months (from 2.59 to 3.25). Short float at 20.3% (equivalent to 7.62 days of average volume), implying the stock is a short squeeze candidate.

9. China Mobile Limited (CHL)
: Wireless Communications Industry. Market cap of $179.88B. The stock is currently 3.35% above its 52-week low. Average analyst rating was downgraded 25.00% over the last three months (from 2 to 2.5). It offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 4.12%, current ratio at 1.32, and quick ratio at 1.31. CHL has lost 6.15% over the last week.

10. Cisco Systems, Inc. (CSCO):
Networking & Communication Devices Industry. Market cap of $93.98B. The stock is currently 1.77% above its 52-week low. Average analyst rating was downgraded 23.94% over the last three months (from 1.88 to 2.33). The stock is currently stuck in a downtrend, trading 5.05% below its SMA20, 12.74% below its SMA50, and 19.04% below its SMA200.

11. Central European Distribution Corp. (CEDC):
Beverages Industry. Market cap of $808.40M. The stock is currently 3.73% above its 52-week low. Average analyst rating was downgraded 21.95% over the last three months (from 1.64 to 2). It's been a rough couple of days for the stock, losing 6.81% over the last week.

12. California Water Service Group (CWT):
Water Utilities Industry. Market cap of $723.84M. The stock is currently 7.05% above its 52-week low. Average analyst rating was downgraded 21.50% over the last three months (from 2 to 2.43).

13. Nordic American Tanker Shipping Ltd. (NAT): Shipping Industry. Market cap of $1.16B. The stock is currently 6.66% above its 52-week low. Average analyst rating was downgraded 18.60% over the last three months (from 2.85 to 3.38). The stock is a short squeeze candidate, with a short float at 5.82% (equivalent to 5.5 days of average volume).

14. Old Republic International Corp. (ORI): Surety & Title Insurance Industry. Market cap of $3.17B. The stock is currently 8.47% above its 52-week low. Average analyst rating was downgraded 18.18% over the last three months (from 2.2 to 2.6). The stock has gained 4.72% over the last year.

15. General Motors Corporation (GM): Auto Manufacturer. Market cap of $49.07B. The stock is currently 3.43% above its 52-week low. Average analyst rating was downgraded 18.13% over the last three months (from 1.6 to 1.89). The stock has performed poorly over the last month, losing 12.93%.

16. Corporate Office Properties Trust (OFC): REIT. Market cap of $2.28B. The stock is currently 4.91% above its 52-week low. Average analyst rating was downgraded 17.20% over the last three months (from 2.5 to 2.93). Short float at 5.65% (equivalent to 5.14 days of average volume), implying the stock is a short squeeze candidate.

17. Salix Pharmaceuticals Ltd. (SLXP): Drugs Industry. Market cap of $1.91B. The stock is currently 7.47% above its 52-week low. Average analyst rating was downgraded 16.96% over the last three months (from 1.71 to 2). The stock has performed poorly over the last month, losing 22.58%.

18. PartnerRe Ltd. (PRE): Property & Casualty Insurance Industry. Market cap of $4.92B. The stock is currently 9.63% above its 52-week low. Average analyst rating was downgraded 16.49% over the last three months (from 1.94 to 2.26). It might be undervalued at current levels, with a PEG ratio at 0.74, and P/FCF ratio at 4.75.

19. Bank of Hawaii Corporation (BOH): Regional Bank. Market cap of $2.15B. The stock is currently 7.52% above its 52-week low. Average analyst rating was downgraded 15.10% over the last three months (from 2.45 to 2.82). The stock is a short squeeze candidate, with a short float at 5.05% (equivalent to 7.24 days of average volume).

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Extreme Pessimism: 19 Stocks Near Lows With Analyst Rating Downgrades