3 beaten-up shares for your watch list

August reporting season has already seen some very wild swings amongst individual stocks which will have many investors on edge as we enter the busiest days of the month.

Here are three stocks which have experienced sharp share price movements and that could all, in my opinion, now be watch list candidates.

Accommodation provider Mantra Group Ltd (ASX: MTR) used to be a market darling and was widely owned by many small and mid-cap focussed fund managers. In calendar year 2016 however its share price has been on a downward trajectory and that continued last week when the company reported its full year results.

The group’s unloved status is hard to reconcile with its solid results which showed 21% growth in profit and 14% growth in earnings per share. With the stock now trading near its 52-week low and on a price-to-earnings (PE) ratio of just under 20 times, the stock is starting to look attractive considering management’s outlook for growth in the region of 20% in the current year.

Mobile phone plan reseller Amaysim Australia Ltd’s (ASX: AYS) share price rallied after the company released a stellar set of profit results, however, the stock remains down for the calendar year after suffering a big fall at the time of its interim profit release back in February.

The group’s full year results showed a 19% jump in revenue and a 110.5% surge in underlying profit. With further growth expected in FY 2017, the group’s current low double digit PE is arguably compelling.

The outdoor advertising sector has certainly been “hot” and this week’s 30% thumping to APN Outdoor Group Ltd (ASX: APO) shows just what a crowded trade it had become.

Despite reporting strong growth in revenue and superb growth in profits for the half, management toned down earnings expectations for the full year by a few percentage points (APN reports on a calendar year basis) citing weaker-than-expected demand.

With some of the “heat” now out of APN’s share price, the stock is arguably trading at more attractive levels. Importantly, the investment thesis regarding the structural industry tailwinds appears to remain intact.

3 Rotten Shares to Sell, and 1 to Buy Today

ARE YOU WATCHING THE RIGHT STOCKS? 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.

Motley Fool contributor Tim McArthur 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.

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