Here we’ll take a look at 3 ASX shares currently trading very close to their 52-week low levels and why they are struggling to gain ground.
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When considering particular ASX shares to buy, investors often take a look at where a company’s share price is trading in relation to its 52-week high or low, as this might indicate an upward or downward trend.
Here we’ll take a look at three ASX shares which are currently trading very close to their 52-week low levels.
3 ASX shares struggling to gain ground
TPG Telecom Ltd (ASX: TPG)
The TPG share price is currently trading at $7.06, only around 2% shy of its 52-week low of $6.93 in November.
The company was formed by a merger between Vodafone and TPG, and the new entity was floated on the ASX in June 2020.
Since the float, this ASX share has lost around 20% of its value.
In the company’s first post-merger results, TPG annnounced that its first-half revenue for the period ending 30 June 2020 came in short at $1.5 billion, an 11% dip from the previous year.
It reported earnings before interest, tax, depreciation, and ammortisation (EBITDA) of $531 million, down 8% compared to 2019.
AGL Energy Limited (ASX: AGL)
At the time of writing, the AGL share price is only just managing to trade above its 52-week lows.
AGL shares are currently trading at $12.02, less than 1% away from their 52-week (and also 5-year) low of $11.95.
Just four days before Christmas, the company downgraded its guidance for the FY21 year, following a serious injury at its Liddell power station that caused one of the station’s units to be shut down until March 2021.
As a result, AGL announced it expected underlying profit after tax (NPAT) for FY21 to be between $500 million and $580 million, down from the previous guidance range of $560 million to $660 million.
This is despite a solid statutory profit of $1.015 billion for the full year of FY20, compared to $905 million for FY19.
Insurance Australia Group Ltd (ASX: IAG)
The current IAG share price of $4.70 is sitting just 7% above its 52-week low of $4.38.
This ASX share is currently weighed down by potential business interruption claims arising from the COVID-19 pandemic.
IAG surprised the market in November by announcing a $750 million capital raising to repair the capital damage expected from claims related to COVID-19.
The company said it has provided its best estimate for potential claims, but the risk that possible claims have been underestimated, or additional lockdowns occur before old policies are replaced with newly worded policies, has left a degree of uncertainty.
The company reported a full-year net profit after tax (NPAT) of $435 million for FY20, down almost 70% compared to FY19.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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