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- Blue-chip companies often have robust balance sheets, capable management and well-established businesses with consistent cashflows.
- One of the best times to buy these strong companies is when they go through a decent correction phase.
- BXB, WBC, SGP etc., are some of the strong companies trading near their 52-week lows.
Blue-chip stocks are some of the highest quality stocks listed in the stock market. The analogy of blue-chip has been derived from blue chips in the game of poker, which are of the highest value. These companies often have robust balance sheets, capable management and well-established businesses with consistent cashflows.
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One of the best times to buy these strong companies is when they go through a decent correction phase, leading them to trade at attractive valuations. Let us have a look at five ASX blue-chip stocks with a market capitalisation of over AU$10 billion, trading near their 52-week lows.
Sydney-based Brambles is a supply chain logistics company, having operations in over 50 countries. The company operates through two famous brands CHEP and IFCO. In FY21, the company increased its revenue and net profit to AU$AU$5.21 billion and AU$526.1 million, respectively.
5 ASX-listed blue-chip stocks trading near their 52-week low
The company marked its 52-week low of AU$9.78 on 22 March 2021 and is currently trading at AU$10.16, as of 2:20 PM AEDT, 3 December 2021. Also, the stock is trading at a dividend yield of 2.73%.
Insurance Australia Group is one of the most prominent insurers in Australia, having a market capitalisation of AU$10.84 billion. In FY21, the company has taken a hit on its profits due to COVID-19 related claims, reporting a net loss of AU$427 million, over a net profit of around AU$440 million in FY20.
Due to lacklustre performance, the IAG share price has delivered a year-to-date (YTD) return of 6.46%, last traded at AU$4.42, as of 2:20 PM AEDT, 3 December 2021. The company’s shares are trading at an attractive dividend yield of 5.54%.
Stockland Corporation is a diversified property group in Australia that manages and develops shopping centres, retirement villages, offices, residential communities etc. The company has a market capitalisation of AU$10.2 billion. In FY21, Stockland reported an exponential increase in net profit to AU$1.1 billion, from a net loss of AU$20 million in FY20.
The SGP share price has remained flat for the year so far, last traded at AU$4.42, as of 2:20 PM AEDT, 3 December 2021. The 52-week low of SGP is AU$4.08 and is trading at a lucrative dividend yield of 5.74%.
Newcrest Mining is an ASX-listed large-cap exploration company, having a market capitalisation of AU$18.82 billion. The company primarily focuses on the mining of gold and gold-copper concentrate. In FY21, the company increased its net profit to Au$1.16 billion, from AU$650 million in FY20.
NCM shares marked a 52-week low of AU$21.85 on 29 September 2021 and are trading very close to it, at AU$22.97, while the YTD return stands at 14.96% as of 2:20 PM AEDT, 3 December 2021.
The last one on our list is one of the ‘big four’ banks, Sydney-based Westpac Banking Corp, having a market capitalisation of AU$75.95 billion. The bank more than doubled its net profit in FY21 to AU$5.46 billion, from AU$2.29 billion in FY20.
In FY21, the bank also paid a total dividend of AU$1.18 per share. WBC shares last traded at AU$20.68, up 5.32% this year as of 2:20 PM AEDT, 3 December 2021. The 52-week low stands at AU$ 19.23, marked on 6 January 2021.
A stock trading near its 52-week low is generally available at an attractive valuation. However, investors also need to look into the fundamentals of the company before making an investment decision. Most of the time, deteriorating fundamentals lead to a decent enough correction to throw the share price near 52-weel lows.