3 FTSE 250 shares at 52-week lows to buy now

Today I hunted through FTSE 250 mid-cap index for bargain stocks to buy. I have limited my search to companies that are trading at 10% of the 52-week low.

I will start with a word of warning. These unloved companies are sometimes cheap for good reason. But I often find good buying opportunities by looking for underperforming companies that are facing manageable short-term problems. Here are the three stocks I bought today.

Long-term growth opportunities

My first choice is Spirent Communication (LSE: SPT). This technology company specializes in producing equipment used by network operators for testing and service assurance. Customers include mobile network operators and large data center operators such as Amazon Web Services.

Spirent’s share price hit a buffer in January, when the company warned that some customers had delayed their purchase decisions. Even if there are no cancellations, some profits are expected to be withdrawn in the second half of 2023.

When profits are not expected weight for the second half of the year, it is sometimes the danger of problems coming. Early postponement may result in cancellation, profit.

However, in the medium-term view, I think that a larger and more complex network can support Spirent’s continued growth.

The stock’s predicted price-to-earnings ratio of 15 doesn’t seem expensive to me, given the company’s high profit margin and debt-free balance sheet. I see Spirent as a long-term buy.

Buy-and-forget stocks?

Consumer goods company PZ Cussons (LSE: PZC) has brands such as Carex, Imperial Leatherand Saint Tropez. The 139-year-old group remains under family control and is also a member of my own stock portfolio.

PZ Cussons’ share price has recently fallen after the company warned of ongoing cost pressures and higher tax charges this year. However, the group’s pre-tax profit guidance for the year is unchanged. On balance, I don’t see too much to be concerned about here.

The main risk I can see is that CEO Jonathan Myers’ efforts to initiate growth in this business will not succeed. Although performance has improved since Myers took over, profits are still lower than 10 years ago.

Personally, I like the changes Myers has made so far. There are no guarantees, but I see this as a low-risk investment at current levels.

A strong recovery

an Irish company C&C Group (LSE: CCR) has Bullmers, Magnerand Tennent’s cider and beer brands, as well as several other smaller labels. C&C is also a UK distributor, supplying the trade with a wide range of drinks.

The company has been hit hard by the pandemic, as pub closures have hit trade. But the business seems to have recovered well. Revenue increased by 20% during the main month of December compared to the previous year. Operating profit for the year to February 28 is now close to 2019 levels.

C&C’s debt has now fallen back to a more comfortable level and City analysts expect the company to start paying dividends this year. Although there is a risk that pub sales may be weakened during the recession, Aku Enggo together looks quite valued at 11 times forecast earnings.

Like PZ Cussons, I see C&C as a buy-and-hold stock that could generate good returns from current levels.