Weakness in the S&P 500 has made life unpleasant for investors so far in 2022, but it has also created buying opportunities in a handful of high-quality stocks. Long-term investors looking to buy the dip can find plenty of stocks to buy that are at or near their lowest prices of the past year. Value investors and contrarian investors know the best time to buy is when there is blood in the streets, and 2022 has been a bloodbath on Wall Street so far, especially among high-growth tech stocks.
Here are six stocks to buy that are currently trading at or near their 52-week lows, according to Bank of America.
ANZ ADR ANZBY
ANZ Banking Group is an Australian-headquartered major commercial bank, with operations focused on Australia, New Zealand and the Asia Pacific region. Analyst James Ellis says commercial real estate banking has historically been a risky business, and commercial property prices in Australia dropped by about 24% during the global financial crisis in 2008. ANZ has the largest exposure to commercial real estate relative to its large bank peers, but Ellis remains bullish on the Australian banking environment and ANZ shares.
Bank of America has a Buy rating and $24.85 price target for ANZBY stock.
Warner Bros Discovery Inc WBD
Warner Bros Discovery is a pure-play cable networks company, with brands such as Discovery, Animal Planet, and TLC, and is a leading global provider of non-fiction programming content. Analyst Jessica Reif Ehrlich says the company has a favorable risk-reward skew for investors given it has a leading direct-to-consumer offering, a deep content library with global appeal, has the scale to invest in original content to compete with top media and tech stock challengers and has significant post-merger revenue synergy opportunities.
Bank of America has a Buy rating and $45 price target for WBD stock.
Honda Motor Co Ltd HMC
Honda Motor is one of the world's largest automobile and motorcycle manufacturers. The global auto industry has dealt with supply chain issues throughout the past year, but Honda still managed to grow revenue by 6.9% in the most recent quarter. Analyst Kei Nihonyanagi says Honda is a relatively safe bet in a climate of macroeconomic uncertainty, given its attractive valuation and impressive balance sheet. Nihonyanagi says Honda's motorcycle segment is particularly attractive as a potential long-term profit growth source.
Bank of America has a Buy rating and $30.23 price target for HMC stock.
Medtronic PLC MDT
Medtronic is a global medical device manufacturer that operates in four segments: Cardiovascular, Medical Surgical, Neuroscience and Diabetes. Analyst Travis Steed says the company has little downside risk to its updated fiscal 2023 earnings estimates, and Medtronic's mid-single-digit revenue growth profile and exposure to the rebounding elective medical procedure market could generate significant earnings multiple expansion over the next year. Steed says Wall Street is assigning virtually no value to Medtronic's pipeline, which could produce significant valuation upside if it bears fruit.
Bank of America has a Buy rating and $120 price target for MDT stock.
Stryker Corporation SYK
Stryker provides medical products and services, primarily in the areas of orthopedics, medical and surgical (MedSurg), and neurotechnology. Steed says Stryker is reporting record backlogs and is seeing strong double-digit growth across many of its capital businesses. The majority of its backlog has been driven by genuine demand rather than order delays. The company is reportedly implementing price hikes to offset inflation headwinds, and Steed says the company's MedSurg business has a bit more wiggle room on pricing. He says prices will improve significantly over time, but will likely be raised methodically as contracts come up for renewal.
Bank of America has a Buy rating and $300 price target for SYK stock.
UDR, Inc. UDR
UDR is a residential real estate investment trust that specializes in apartment properties. Analyst Joshua Dennerlein says apartment REITs all reported accelerating rate growth heading into the second quarter. UDR also has an attractive 3.2% dividend yield, which Dennerlein says could support the stock and limit significant additional downside. In the first quarter, UDR reported 14.7% effective blended rates growth for new leases and 13.5% growth for renewal leases. UDR's same-store rents per unit in Q1 were $2,322, up from $2,116 a year ago.
Bank of America has a Buy rating and $339 price target for UDR stock.
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