3 beaten down ASX shares I'm tipping to rebound in 2017

The Ardent Leisure Group (ASX:AAD) share price is one of three to have been beaten down significantly in the last six months. Does this make them bargain buys?

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In the last six months the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has climbed a stunning 10.5% thanks largely to a rally in resources and bank shares.

Unfortunately during the same period several shares have gone the other way. Three in particular have stood out with significant declines. Are they beaten down bargain buys now?

The Ardent Leisure Group (ASX: AAD) share price has plunged a whopping 35% in the last six months. The tragic incident at its Dreamworld theme park and the subsequent impact it has had on visitor numbers has largely been to blame for the sell-off. But with signs of improvement being seen at its theme parks and its lucrative Main Event business in the United States growing strongly, I think Ardent Leisure could prove to be a bargain buy after this decline.

The Altium Limited (ASX: ALU) share price has dropped 20% in the last six months. I believe this is an opportunity for investors to snap up shares at a great price. The company's printed circuit board design software continues to grow in popularity thanks largely to the incredible rise of connected devices. According to information technology research firm Gartner, there will be 20.8 billion connected devices in use worldwide by 2020, up from an estimated 6.4 billion last year. It is because of this that management has predicted that revenue will double over the next three to four years.

The Mayne Pharma Group Ltd (ASX: MYX) share price has fallen 34% during the last six months as price-fixing allegations and President Trump's plan to shake up the pharmaceutical industry weigh heavily on its shares. But at just 12x annualised earnings and growing revenue in the triple digits, I believe Mayne Pharma provides investors with a compelling risk/reward. It may be a bumpy ride for shareholders over the next 12 months, but I believe the company can grow significantly over the next decade.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Altium. 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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »