What are we screening for?
Companies that hit a 52-week low in the last month showing bullish traits and poised for a turnaround
The screen
North American markets suffered their third consecutive day in the red on Tuesday, with the S&P 500 index falling by 0.69 per cent. This comes after the benchmark set a new all-time high on Aug. 13. Commodities have been a core theme over the summer, and with the conflict in Iran about to enter its sixth month, equity markets have remained resilient despite the continuing volatility. There are no talks scheduled between the U.S. and Iran, and investors are growing more concerned about the long-term impact that reduced oil exports could have on inflation, such as additional pain for consumers for day-to-day purchases including food and gas.
Global bond sell-off lifts Canadian borrowing costs to highest level since 2009
To add to the inflationary pressures, U.S. 30-year Treasury yields hit their highest levels since 2007, while Japan’s 10-year borrowing costs reached a 30-year high owing to soaring government debt levels and increasing geopolitical risks. The outlook for inflation and interest rates is becoming more uncertain, with many questioning what the U.S. Federal Reserve could do with future rate moves. Today, we screen for companies that hit a 52-week low in the past 30 days and are poised for a turnaround.
- First, we screen for companies with a market capitalization greater than US$1-billion.
- Next, we screen for companies that hit a 52-week low price within the past 30 days. Newly listed companies with less than one year of trading were excluded.
- Finally, we screen for companies with best-in-class overall StarMine rankings. We use the Refinitiv StarMine Combined Alpha (CAM) model to screen for companies with a score greater than 90, representing the top 10 per cent of companies. The Combined Alpha Model is a percentile ranking of stocks which combines all available StarMine models into an optimal, static, linear weighting for each region. The StarMine models used in the StarMine CAM are analyst revisions, relative valuation, intrinsic valuation, price momentum, earnings quality, smart holdings, insider filings and short interest.
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What we found
The screen, ranked by StarMine Combined Alpha Model, produced 14 companies.
HD Hyundai Heavy Industries Co Ltd., which scored 98 in the Starmine Combined Alpha Model, is a South Korea-based company engaged in the shipbuilding business, with four business segments including shipbuilding, engine and machinery, offshore and engineering, and other business. The stock price hit a 52-week low on July 29, the same day the company announced second-quarter 2026 earnings, and has increased by more than 12 per cent in the weeks following.
During the earnings call, management highlighted their commitment to capacity expansion in their engine and machinery business, which has benefitted from AI infrastructure-related spending. The company announced two new orders in the past month to supply AI/DC power engines for AI data centre purposes, totally 163 units delivering approximately 1.6 GW of power. The revenue being generated from the AI infrastructure buildout could help to offset some of the continuing concerns in the shipbuilding segment. Management has remained upbeat, and the company has already booked new orders for 38 units of liquefied petroleum gas carriers (LPGC) and 17 units of liquified natural gas carriers (LNGC).
Blue Owl Technology Finance Corp. OTF-N, which scored 97 on the Starmine Combined Alpha Model, is a speciality finance and business development company focused on making debt and equity investments in U.S. technology-related companies. Blue Owl’s portfolio comprises 205 portfolio companies, with an aggregate fair value of US$14.7-billion. The stock hit a 52-week low on July 31 and rebounded nearly 12 per cent over the following 12 trading days, with the largest single-day gain coming on Aug. 6, the day after the company reported second-quarter earnings.
One of the headwinds facing the company was the release of restricted shares following their IPO, which became available for sale in November, 2025, and concluded in June of 2026. While this was a scheduled sale, and a common occurrence following an IPO, it likely compounded the effects Blue Owl was facing in certain areas of the technology sector. During the earnings announcement, management noted an improvement in credit quality, with non-accruals remaining consistent at 0.1 per-cent on a fair-value basis, and balance sheet positioning with roughly $US2-billion in liquidity (cash and undrawn credit facilities), leaving plenty of room for growth.
Investors are advised to do their own research before trading in any of the securities shown.
Stephen Donovan, CMT, is a sales specialist covering commodity markets at LSEG.