3 Quality Stocks Trading Near 52-Week Lows

During the recent market volatility caused by President Trump's rollout of trade tariffs, many investors are now faced with a significant question for their portfolios. This question seeks to identify capital in the right places and situations, which may be synonymous with quality stocks trading at a sufficient discount to allow for reasonable safety margins.

Lucky for them, there are a few still available today.

Investors may want to consider today's list of high-quality companies before the uncertainty washes away from the market and the bulls are revived. These stocks can be a beneficial addition to portfolios and watchlists alike. They offer several key factors market participants are seeking, especially stability and potential upside.

Their risk-to-reward ratios strongly favor bullish buyers in today’s environment.

With this in mind, investors can now open up a new watchlist and name it "Post Tariff Gains" to remind themselves what these names stand for. Stocks like Old Dominion Freight Line Inc. (NASDAQ: ODFL), Chipotle Mexican Grill Inc. (NYSE: CMG), and even PepsiCo Inc. (NASDAQ: PEP) will likely be the ones to push the envelope for investors to see a bit more green in their portfolios when markets inevitably find a footing after the recent volatility and uncertainty.

Tariffs or Not, Old Dominion Stock Can Rally

Investors should consider a few key points regarding this large player in the transportation sector. If tariffs become a reality, businesses will have to expedite their processes and activities to secure inventories and supplies before prices start to spike due to increased costs.

This dynamic is already being noticed across different companies in the economy, and it makes sense that businesses will want to lock in today’s low prices for their inventories; that’s where a stock like Old Dominion comes into play. On the other hand, if tariffs are lifted, businesses will likely have to replenish the inventory they postponed buying until the tariff costs are clear.

In either scenario, these outcomes give Wall Street analysts confidence to forecast up to $1.39 in earnings per share (EPS) for Old Dominion stock in the third quarter of 2025, a significant boost of 17% from today’s reported $1.19 in EPS. Leaning on this thesis and expected growth, some investors have already decided to try their hand at this stock.

Institutional allocators from Focus Partners Wealth decided to increase their holdings in Old Dominion by 50.4% as of mid-May 2025, bringing their position to $6.9 million and providing investors with another reason to consider this stock in a world where tariffs remain or subside, a view that is being supported and forecasted by Wall Street.

Chipotle Has Room to Maneuver

The retail sector is another area severely affected by tariff uncertainty, considering that many products are imported from nations that were most heavily hit by tariffs. However, Chipotle has ample room to navigate whatever added costs are thrown its way.

Investors can see this through the company’s financials, where this name boasts a net income margin of up to 13.6% over the past 12 months. This level of profitability can serve as a proxy for pricing power, as well as a testament to a management team that knows how to navigate an industry not typically known for high profits.

Moreover, Chipotle’s initiatives to enhance its service line efficiency while maintaining a focus on online orders and pickup can also help sustain its profit margins amid the uncertainty.

This might be one of the reasons why institutional buyers from AllianceBernstein decided to up their stakes in Chipotle stock by 8% as of May 2025, building up a $1.6 billion position and confirming that this name has all the chances to make it out after this volatility fades.

Pepsi’s Discount Is a Generational Opportunity

The last time Pepsi stock traded at a forward price-to-earnings (P/E) ratio of 16.4 was during the peak months of the COVID-19 pandemic, making today’s valuation seem a little too exaggerated on the bearish side. Today’s economy (while uncertain) is nothing compared to the lockdowns and slowdowns witnessed during those times.

Acknowledging these discounts, which place the risk-to-reward scale significantly in favor of buyers, some short sellers decided that the juice wasn’t worth the squeeze in Pepsi. This is where investors can note a 4.7% decline in short interest for the company over the past month, a sign of potential bearish capitulation amid the inevitable removal of uncertainty.

Wall Street analysts are also well aware of what could come for the future in Pepsi stock, so they’ve kept a consensus price target of up to $160.7 per share to call for as much as 22.6% upside from where the stock has fallen to today, another pillar of confidence for investors to consider when building their potential buy thesis.

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The article "3 Quality Stocks Trading Near 52-Week Lows" first appeared on MarketBeat.