The S&P 500 is in a structural bear market.
That is CFA Alexander Vogt's opinion. In a LinkedIn post on Tuesday, Vogt notes that 59% of S&P 500 stocks are down 20% or more from their all-time highs. Take what you will from his commentary. You should definitely read the comments afterwards. They're quite amusing.
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I’ve vascillated all year on the valuation question. While I still believe there’s some froth in stock prices, the new 52-week lows from Tuesday’s trading on both the NYSE and Nasdaq make me think twice about the market's overvaluation.
On the NYSE yesterday, 20 stocks hit new 52-week highs and 403 hit new 52-week lows. The Nasdaq had 68 new 52-week highs and 488 new 52-week lows. Both, however, are greatly skewed by interest-paying investments.
That said, if you’re a stock picker, now could be a good time to take a closer look at beaten-down stocks on either exchange.
Here are three hitting new 52-week lows that have caught my attention. Some aren’t appropriate for risk-averse investors.
PepsiCo (PEP)
PepsiCo (PEP) hit a new 52-week low of $126.42 on Tuesday, the 18th of the past 12 months. Its shares have lost 8% over this period.
The snack food giant is losing the fight with its Coca-Cola (KO) rival, and it shows in PEP’s relative underperformance, down 35% in 2026. PepsiCo’s struggles in North America continue to weigh on the stock. That has analysts skeptical it will turn things around anytime soon.
JPMorgan analyst Andrea Teixeira recently cut her rating on the stock from Overweight to Neutral and cut her target price by 19% from $170 to $132, slightly above its current share price. She also dropped PepsiCo’s 2027 EPS estimate by 19 cents to $8.86.
The company reports Q3 2026 results on Oct. 8 after the market closes. You might want to wait to see how the North American business fared before buying.
The long and short of it: PepsiCo’s current share price is just 10.91 times Wall Street’s cash flow per share estimate of $11.80 for the next 12 months, according to S&P Global Market Intelligence. That’s the lowest multiple in the past decade.
With a dividend yield of 4.6%, you get paid to wait for PepsiCo management to figure things out or activist investors to force action—either way, PepsiCo’s worth owning for the long haul.
Sanofi (SNY)
Sanofi (SNY) hit a new 52-week low of $40.40 on Tuesday, the 21st of the past 12 months. Its shares have lost nearly 13% over this period.
Sanofi just got a promotion from Morningstar.com. Its analysts now rate it a 5-star stock, suggesting it’s significantly undervalued relative to its $63 fair value estimate.
The French pharmaceutical giant once sold almost every kind of drug available. In recent years, it has shifted to a laser-like focus on immunology, vaccines, and rare disease drugs.
In the first six months of 2026, Dupixent, which treats asthma, COPD (chronic obstructive pulmonary disease), and other immune-related issues, generated 9.32 billion euros ($10.58 billion) in sales, 34.4% higher than a year ago, accounting for 42% of Sanofi’s revenue in the first half of 2026. Most of its growth came from the U.S.
With 61 projects in its pipeline, it will continue to benefit from strong Dupixent sales for several years, giving investors confidence in the future.
While analysts are lukewarm on SNY stock--of the 22 that cover it, only eight rate it a Buy (3.68 out of 5)--they still have a target price of $52.17, 27% higher than its current share price.
Like PepsiCo, Sanofi’s 5.9% dividend yield pays you to wait for Wall Street to become more bullish.
Weyerhaeuser (WY)
Weyerhaeuser (WY) hit a new 52-week low of $19.50 on Tuesday, the 26th of the past 12 months. Its shares have lost 22% over this period.
The timber REIT (real estate investment trust) owns over 10 million acres of timberland in the U.S. and manages more than 14 million acres in Canada.
What makes the REIT interesting is that it generates several revenue streams from owning and managing this land, including selling logs and timber, selling its timberlands, and selling wood products such as engineered wood, OSB (oriented strand board), and other building materials-related products.
In the latest three months ended June 30, its three operating segments: Timberlands, Strategic Land Solutions, and Wood Products generated 20%, 7%, and 73%, respectively, of the $1.87 billion in revenue. All three segments experienced either slight year-over-year decreases or increases in revenue.
Meanwhile, the REIT’s adjusted net earnings were $91 million, or $0.13 a share, up 4.6% from $87 million, or $0.12.
The top- and bottom-line numbers moved little in the second quarter. That happens in this type of business. With the new and remodel housing markets facing headwinds from affordability and higher mortgage rates, demand for products and services across all three segments is lower. It’s a fact of life.
But it won’t always be this way.
Analysts seem to understand this. Of the 13 covering WY, nine rate it a Buy (4.31 out of 5), with a $30.42 target price, 57% higher than its current share price.
Until lumber prices and the housing market improve, Weyerhaeuser is committing capital to increased share repurchases, while continuing to pay a healthy dividend.
Since the beginning of 2022 through Q2 2026, the REIT has paid out $6.24 a share in dividends (60% regular quarterly dividends and 40% special dividends). In addition, between 2021 and 2025, it repurchased $1.09 billion of its stock.
Trading at its lowest level in five years, Weyerhaeuser is a worm ready to turn. Of the three stocks, WY is the best value at current prices.
On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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