5 fundamentally strong stocks trading near 52-wk low. Can they rebound?

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fundamentally strong company with a decent moat is trading near its 52-week low, smart investors know those are great deals. But picking the right stock is tough - how do you determine which ones are likely to rebound? After all, catching a falling knife has many times resulted in steep losses where investors waited for years, only to see their investment value go down even more. Buying the dip is not a simple strategy and requires cautious consideration.

If done right, you can earn a fat discount on stocks. Think of it like buying quality stocks at a discount. It's important to acknowledge that all great companies may encounter declines in their stock prices at some point.

Nevertheless, exceptional stocks often display impressive long-term performance, rebounding strongly from short-term downturns. In this article, we take a look at five fundamentally strong stocks that are currently trading close to their 52-week lows. First on the list is UPL.

UPL is a global generic crop protection chemicals and seeds company. The company is engaged in the business of agrochemicals, industrial chemicals, and chemical intermediates. The agrochemicals segment consists of agrochemicals technical and formulations.

The industrial chemicals segment consists of industrial chemicals andspeciality chemicals. Presently, UPL shares are trading at a value just 1% away from its 52-week low of ₹624, reflecting a decline of over 12% over the past year. Market sentiment towards UPL has been influenced by the anticipated weaker performance in the first quarter results of FY24, particularly in the agrochemical business, both in domestic and international markets.