3 UK stocks at 52-week lows to buy now

I’m on the hunt for cheap UK stocks that could do well in 2023 and beyond.

One technique that can help identify potential bargains is to look for stocks that have been trading at their lowest levels for at least a year.

Companies in this situation may have some problems – or they may be out of fashion and oversold. Changes in investor sentiment mean that most stock prices move very high or very low at various points in the market cycle.

I have been hunting for UK share prices which seem very cheap to me. Here are my top three picks to buy right now.

Vodafone Group: 9% yield

Telecommunications group Vodafone operates some of the largest mobile networks in Europe and Africa.

However, the group is struggling with slow growth and a sizable debt pile. Investors have dumped Vodafone shares, which are now trading at levels last seen 20 years ago.

A brutal sell-off has left this FTSE 100 stock with a 9% dividend yield. Is this payment sustainable? I think it could be tight, but my feeling is that the group doesn’t want to reduce the payment.

Chief executive Nick Read stepped down at the end of last year. His replacement will be expected to improve the group’s performance, possibly with a split.

This business has disappointed investors before, but I think it’s worth it. I think it might be a good time to buy Vodafone.

Computacenter: on the buy list

I have admired it FTSE 250 IT services group Computing center (LSE: CCC) for the year. I think it is a very good business with strong management and a large market share.

The stock often seemed expensive to me, but with the recession in the UK and the work-from-home boom winding down, the share price has fallen again.

Currently, shares in the business are trading at just 12 times forecast earnings, with a dividend yield of 3.5%. For a company that consistently generates 20%+ return on equity, I think that’s probably too cheap.

The risk is that large corporate and public sector clients may reduce IT spending during a recession.

However, in a long-term view, I think spending on IT and cyber security will continue to increase.

In my view, Computacenter still has a lot of room for growth. This stock is on my short list to buy for my own portfolio.

James Halstead: quality family business

My final choice is James Halstead (LSE: JHD). This AIM– a registered company that produces and supplies floor coverings to customers worldwide.

Best known for their Polyflor vinyl flooring products. Past customers include cruise ships, hotels, hospitals and even Scott Base in Antarctica.

The business is still family owned and managed by Mark Halstead, who is the grandson of the company’s founder.

The profit margin is higher than average and there is no debt. The group’s dividend has not been cut for more than 30 years – and it currently offers a tempting 4.3% yield.

Fears of a slump in demand this year sent Halstead’s share price down. I think this could be an opportunity for long-term investors to pick up some shares at a reasonable price. I must have been tempted myself.