The 52-Week Low Formula, developed by Luke Wiley, identifies stocks trading near their 52-week lows that also possess strong fundamental characteristics. This approach combines value investing principles with quality metrics to find undervalued companies with strong competitive advantages.
The system filters for stocks that have declined significantly from their highs but maintain excellent financial metrics, suggesting they may be oversold and represent attractive buying opportunities.
Stock trading within 10-15% of its 52-week low, indicating significant decline from recent highs.
Gross margin significantly above industry average, indicating pricing power and strong competitive position.
Free cash flow yield above 5%, indicating the company generates substantial cash relative to its market value.
ROIC above 10%, showing the company efficiently deploys capital to generate returns.
Low debt levels and strong balance sheet, reducing financial risk and bankruptcy concerns.
The 52-Week Low Formula has historically identified stocks that recover strongly after being oversold. By combining value metrics with quality filters, the system avoids "value traps"—cheap stocks that are cheap for good reason.
Stocks meeting all 5 filters have shown superior risk-adjusted returns compared to the broader market, with lower volatility due to their strong fundamental characteristics.
Type the ticker symbol of any US stock you want to analyze.
The scanner evaluates each filter and shows which ones the stock passes.
A higher score indicates a stock that better matches the 52-Week Low criteria.
Examine the detailed financial metrics to understand the company's quality.
Use the suggested entry price and stop loss level for position sizing.
Don't just buy cheap stocks. Focus on quality companies trading at discount prices.
The financial strength filter helps avoid companies with deteriorating fundamentals.
Focus on free cash flow yield, not just earnings. Cash flow is harder to manipulate.
Value stocks may take time to recover. Be prepared to hold for 12-24 months.