For one reason or another, the following 5 blue-chip S&P/ASX 200 (INDEX: ^AXJO) (ASX: XJO) shares will be on investors’ watch lists in 2016.

  1. Australia and New Zealand Banking Group (ASX: ANZ)

Shares of Australia and New Zealand Banking Group have fallen more than 32% since their April 2015 peak above $36. Analysts have attributed the falls to ANZ’s China exposure, growing competition in the local market and a looming downturn in the banking sector. Given the bank’s huge presence throughout Australia and in investors’ portfolios, 2016 will be an important year for ANZ.

  1. Woolworths Limited (ASX: WOW)

Woolworths’ fall from grace has been well documented by the financial press — perhaps rightly so. Thanks to intense competition and – arguably – some poor managerial decisions, shares of Australia’s largest supermarket operator are down 25% in the year. With the impending sale of Masters and underperforming supermarkets, Woolworths shares will be a focal point in the market throughout 2016.

  1. Rio Tinto Limited (ASX: RIO)

Rio Tinto is the country’s largest iron ore miner by volume. Despite the enormous falls in commodity prices over the past year Rio Tinto’s share price currently sits just 12% lower. However, if the iron ore price turns downwards in 2016, Rio Tinto shares could come under further pressure.

  1. Flight Centre Travel Group Ltd (ASX: FLT)

Like those companies above, shares of Flight Centre Travel Group haven’t had a spectacular start to the year. Down 1.3% so far in 2016, Flight Centre shares appear cheap using conventional valuation metrics like the price-earnings ratio (15x) and dividend yield (4% fully franked).

  1. Cochlear Limited (ASX: COH)

Cochlear Limited has been one of the ASX’s best-performing companies over the long term. In 2016, the global hearing aid developer has continued to go from strength to strength. Generating a large portion of its sales from international markets, and in US dollars, investors will be following Cochlear closely – despite its hefty price tag.

Foolish takeaway

Buying down-and-out blue-chip shares has proven to be a sound investment strategy. However, investors must do their research to ensure they aren’t buying shares which will always underperform. As Warren Buffett, the world’s greatest investor, famously quipped, “turnarounds seldom turn”.

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Motley Fool Contributor Owen Raszkiewicz has a financial interest in Flight Centre. Owen welcomes -- and encourages -- your feedback on Google+, LinkedIn or you can follow him on Twitter @ASXinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.