So far this year the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has lost 1.2% of its value. Whilst this is a disappointing decline, this is actually trivial compared to what shareholders of some companies have had to endure this year.

Some shares have declined so steeply that I feel many investors may wonder if now is a good time to pick up a potential bargain. Two shares in particular which have had a terrible year so far are as follows:

Caltex Australia Limited (ASX: CTX)

The leading fuel retailer has seen a decline of almost 14% so far in 2016, despite enjoying record gross retail margins.

The reason for the decline could be down to reduced earnings expectations from brokers for the full year. Caltex’s refiner margin is expected to have been negatively impacted by the strong Australian dollar.

According to the brokerage arm of Commonwealth Bank of Australia (ASX: CBA), analysts have reduced their FY 2016 earnings estimate from $2.32 per share to $2.22 per share. This still equates to year-over-year growth of almost 22%, which is a great performance in my opinion.

Following the drop in its share price I believe Caltex shares could be a good investment today, especially for long-term buy and hold investors.

Myer Holdings Ltd (ASX: MYR)

The Myer share price is down over 15% year-to-date, leaving it trading at just 11x estimated FY 2016 earnings. This is a huge discount to the consumer discretionary average which currently stands at around 21x estimated FY 2016 earnings.

This could mean Myer is an absolute bargain right now. After all, the Australian Bureau of Statistics released data last month that showed department store sales were up 7% year-over-year in February.

But it could also be a high risk investment in my opinion, which could yet suffer from further declines. Net profit has declined for five consecutive years and looks set to do so again this year. Its interim results showed a 4% decline from the same period a year earlier, as consumers appear to continue to favour online shopping.

I personally would avoid Myer shares. I do believe that at such a low earnings multiple there is a chance that the share price could rally higher, but the risk/reward ratio just isn’t good enough for my liking.

Foolish takeaway

Caltex would be my pick of the two shares. I believe patient investors will be rewarded for holding it for the long-term, thanks to its strong growth prospects and market-leading position.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. 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.