Buying a stock near its 52-week low can be a good way to ensure you don't overpay for your investment, though it doesn't always mean it's a good value. When stocks fall to their 52-week lows, it can be an opportune time for investors to snatch up a good deal, but only if the investment has solid fundamentals and will rise in the future. The danger, and the risk you take, is that a new 52-week low could be right around the corner.
Below are three cannabis stocks near their lowest prices in the past year. Let's take a close look at whether they're good buys today or if they're likely to sink even further.
Tilray (NASDAQ: TLRY) is an example of a stock that keeps falling, hitting new 52-week lows along the way. Down more than 75% in 2019, it's been one of the worst-performing pot stocks this year. By comparison, the Horizons Marijuana Life Sciences ETF (OTC: HMLSF), which includes many of the industry's top cannabis stocks, is down a more modest 40% year to date.