3 FTSE 100 stocks near 52-week lows! Should I snap them up today?

These three FTSE 100 stocks could prove to be at bargain prices right now. Should I buy them today for long-term returns?

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Warren Buffett says a “too-high purchase price” can undo a decade’s worth of stock market returns. It’s not enough to buy a good company, you need a good entry point too.

One way to do this is to look at stocks near their 52-week lows. A company at its cheapest price in a year could end up being a complete steal. These three big-name FTSE 100 stocks fit the bill. Should I buy them today?

Share price52-week highDifference
British American Tobacco2,573p3,628p-29%
Persimmon1,180p1,915p-38%
Anglo American2,463p3,672p-33%

British American Tobacco

The first stock here is global behemoth British American Tobacco (LSE: BATS). Its hugely popular brands Dunhill and Lucky Strike make it the world’s leading cigarette seller by sales.

Should you invest £1,000 in Anglo American right now?

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Interestingly, this is a company that is growing. While smoking is declining in richer countries, there are more smokers than ever in the world. Most of this increase comes from middle-income countries, where more and more people can afford cigarettes.

As a potential investor, I’m wondering how long this can continue. The data suggests global smoker numbers will increase up to 2030, but what then? Long term, it’s hard not to see ciggies as on the way out.

BAT does have a sideline in non-combustibles – vapes, e-cigarettes and the like. These are 14% of revenues and growing. But these products might come under the regulatory hammer soon, and one reason for the 52-week low is rumoured action from the US government in this area. 

I do own a position here already, but this recent uncertainty does put me off buying more.

Persimmon

On the other hand, UK housebuilder Persimmon (LSE: PSN) doesn’t have any of these long-term issues. 

The shares have been struggling recently, to be fair, and no wonder. High-interest rates make it hard for people to buy mortgages, and a cost-of-living crisis means people aren’t flush with cash for house deposits. The 52-week low is hardly a shock here.

But housing is cyclical and down periods are to be expected. And the York-based housebuilder has no debt, £4bn in assets, and £700m-£800m in free cash flow. It’s got the financial muscle to get through a tough period like this. 

What’s more, the demand for housing in the UK is huge. The country needs more houses desperately, and it’s a problem that is getting worse. This should be a strong tailwind when the economy gets back on its feet. 

I think the signs are this is a cheap buy. I plan to pick up shares in the firm soon.

Anglo American

Miner Anglo American (LSE: AAL) looks like another solid long-term option. 

The company recently missed earnings targets and net income was down 75% year on year. The reason was a decline in the price of metals – standard procedure in this traditionally volatile industry. 

So is this another buy while the shares are looking cheap?

Well, mining is a defensive industry. And one that is growing too. Anglo American looks well-placed with its operations in platinum, diamonds, copper, and nickel. Those last two metals are important for green technologies which could be a strong tailwind.

I could buy in for a well-covered 6% yield from the firm too. Near a 52-week low, I’d have to say this stock looks like good value. I’ll look at buying shares here soon.


Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

John Fieldsend has positions in British American Tobacco P.l.c. The Motley Fool UK has recommended British American Tobacco P.l.c. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Pound coins for sale — 51 pence?

This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 8.5%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

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