Investing is all about buying low and selling high. But often, investors avoid low-priced stocks because they fear they might fall even further. In reality, when it comes to quality companies, low stock prices can be a great opportunity for long-term gains.
Here are three well-known stocks currently trading near their 52-week lows — but they could turn out to be smart investments if you buy them now.
1. Alphabet (NASDAQ: GOOG, GOOGL)
A Tech Giant Facing Temporary Headwinds
- Stock Performance: Down 16% this year, and trading just 10% above its 52-week low of $142.66.
- Valuation: Trading at a P/E ratio of 17.8, which is lower than the S&P 500 average of nearly 23.
Why it’s worth buying:
- Despite antitrust concerns, Alphabet is still a massive, profitable company.
- It made $112 billion in earnings over the past year.
- Strong assets like Google Search, YouTube, and its AI platform Gemini keep Alphabet at the forefront of technology.
- A company breakup may even unlock more value for investors.
2. Merck (NYSE: MRK)
A Pharma Leader with Long-Term Potential
- Stock Performance: Down 22% this year, hitting a new 52-week low recently.
- Revenue: Q1 sales dropped by 2%, reaching $15.5 billion.
- Tariff Impact: Facing $200 million in expected tariff costs in 2025, especially from operations in China.
Why it’s a bargain:
- Merck is trading at a P/E of just 11.7, offering a good margin of safety.
- The tariff risk is likely temporary.
- Merck is developing a new GLP-1 weight loss drug and a new version of its cancer drug Keytruda.
- Despite short-term pressure, Merck’s future growth potential remains strong.
3. Block (NYSE: XYZ)
A Fintech Player with Growth Ahead
- Stock Performance: Down 34% this year after weak earnings.
- Revenue Volatility: Bitcoin-related revenue now makes up 40% of total revenue.
What to consider:
- Block’s services like Cash App and point-of-sale systems are widely used.
- The company reported a $93 million Bitcoin loss, but operating profit rose 32% to $329 million.
- Trading at a P/E of 12, and even its forward P/E is under 14.
- As the economy recovers, Block could see significant growth.
Should You Invest in Alphabet Right Now?
Before making a decision, consider this:
The Motley Fool analyst team recently revealed their list of the top 10 stocks to buy now — and Alphabet wasn’t on the list.
In the past, the same list included companies like Netflix (2004) and Nvidia (2005) — and early investors made massive returns.
- Netflix: A $1,000 investment grew to $613,951
- Nvidia: A $1,000 investment became $796,353
Their Stock Advisor service has an average return of 948%, far ahead of the S&P 500’s 170%.
✅ Bottom Line:
All three companies — Alphabet, Merck, and Block — are facing short-term challenges. But if you’re a long-term investor, this may be the right time to buy. Their low valuations and strong fundamentals make them great stocks to watch in 2025.
