Every so often there are shares on the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) that get sold off to such a degree that they start to look like bargains. Sometimes they are in fact bargains, other times they may turn out to be a value trap.

There are three shares in particular on the index which have been beaten down recently. The question now is whether or not they can bounce back strongly in the coming months. They are as follows:

Ardent Leisure Group (ASX: AAD)

Ardent Leisure operates a collection of well-known brands such as Goodlife Health Clubs, Dreamworld, AMF Bowling, and US-based Main Event. Its share price has been cut by 14% in the last 30 days making it a bargain now in my opinion. I believe the company’s growth prospects are fantastic thanks to its Main Event brand. The family entertainment centres provide activities such as bowling, laser tag, rock climbing, and mini golf. They currently contribute a third of company revenue. The company is in the process of offloading its d’Albora Marinas with the proceeds going towards accelerating the pace and development of its Main Event expansion. This year Ardent Leisure plans on increasing its Main Event footprint from 21 to 28 centres, which should prove to be a great boost to its top line.

QBE Insurance Group Ltd (ASX: QBE)

Shareholders of this insurance giant have not had a good month. Its share price has dropped around 14% since Britain voted to leave the European Union. But unlike Ardent Leisure, I’m not sure that now is the time to invest in its shares. Whilst it does look cheap and provides an estimated fully franked 5.3% dividend, it does have significant exposure to the European market with 30% of gross written premiums coming from the region. I believe any economic slowdown in Europe could be detrimental to the company’s prospects and hamper its earnings growth. Personally, I would suggest waiting until its half year results are released in mid-August in order to see how the company is tracking.

Treasury Wine Estates Ltd (ASX: TWE)

This is another company which saw its share price suffer as a result of the Brexit. As the shares are down 9% in the last 30 days I feel it puts them at a great price for growth investors. Especially considering that according to a market update today, the company’s currency hedging means that it does not expect any material change to its full year earnings expectations following the depreciation of the British pound. Despite the pull back in its share price the shares are still changing hands at 34x trailing earnings. Whilst this is by no means cheap, I believe the insatiable demand from the Asian market does justify paying this premium. After all, according to CommSec, analysts are expecting Treasury Wine Estates to grow its earnings by an average of 67% per annum for the next two years.

Lastly, if you need to make room for any of these shares in your portfolio then I would suggest checking to see if you own one of these three rotten shares. They could be doing your portfolio more harm than good, so now might be a good time to swap them out in my opinion.

3 Rotten Shares to Sell, and 1 to Buy Today

After a double-digit rally for the ASX since 2016 lows, investors should be on high alert. You'll find a full rundown below of 3 shares we think you should avoid today plus one top pick worth buying, even if the market turns south and the RBA keeps rates at an "emergency low." Simply click here to uncover these stocks.

HOT OFF THE PRESSES: Motley Fool’s #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

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.