3 shares that could be entering the BUY zone

These three shares might have fallen out of favour recently, but I wouldn't be writing them off just yet.

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The S&P/ASX 200 (Index: ^AXJO) (ASX:XJO) has enjoyed a pretty nice run since the middle of September, rising more than 5% despite the constant chatter around rising US interest rates and a potential European banking crisis.

While most investors would be quite happy with that performance, it has made genuine buying opportunities pretty hard to come by.

With that said, here are three interesting shares that could be on their way to entering the 'buy zone'…

OFX Group Ltd (ASX: OFX)

OFX (ex-OzForex) shareholders have had a tough 12 months and the shares have continued to underperform over the last couple of weeks, despite the company presenting an upbeat trading update in August. Although earnings are only expected to be marginally higher in FY17, the foreign exchange company is confident that the extra investment it has made in re-branding and technology will speed up growth in FY18 and beyond.

While this is still a while away, investors willing to back the management team might see this as an opportunity, considering the shares are trading near all-time lows.

APN Outdoor Group Ltd (ASX: APO)

Shares of the outdoor advertising company plunged after the company shocked investors will a profit downgrade in August. Although the shares have recovered from their lowest levels, they still trade around 35% below their 52-week highs. The market has now priced in substantially lower short term growth expectations but I think APN Outdoor's longer term growth prospects remain intact considering the roll-out of digital screens and boards is still in its infancy.

If the shares head back towards $5 per a share, I think this would offer investors an attractive risk-reward proposition.

Tassal Group Limited (ASX: TGR)

Tassal's shares have been stuck in a pretty tight trading range for the best part of six months as the market awaits further evidence that its De Costi seafood acquisition was justified.

The company's full year result failed to shed much light on the success of the acquisition, with the traditional salmon business still the company's biggest growth driver. An improved contribution from the newly acquired seafood business could be the catalyst required to get the shares moving in an upward direction.

Until then, I would be inclined to stay on the sidelines and wait for the shares to head back towards $3.70.

Motley Fool contributor Christopher Georges 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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