Is it time to buy these 3 beaten down ASX shares?

Year-to-date the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has managed to carve out a gain of 3% thanks partly to a strong run from the big four banks.

Unfortunately not all shares have been able to follow the index higher this year. In fact, the following three shares have fallen sharply. Does this make them bargain buys?

The Baby Bunting Group Ltd (ASX: BBN) share price has tumbled over 23% so far this year despite the baby products retailer delivering a 22% increase in half-year profit in February. The sell-off appears to relate to concerns over the potential launch of Amazon in Australia later this year. Whilst Amazon does represent a major threat, at 22x annualised earnings I feel Baby Bunting is worth taking a closer look at.

The Brambles Limited (ASX: BXB) share price has fallen 23% since the turn of the year as well. The supply-chain logistics company’s shares were sold off in January after advising that its North American business was struggling with both revenue and cost pressures. Unfortunately these pressures don’t appear to be going anywhere any time soon. As a result management expects full-year underlying profit to be flat. At 18x trailing earnings its shares look reasonable, but I would suggest investors hold off until its performance improves.

The Healthscope Ltd (ASX: HSO) share price is down almost 7% this year, bringing its six-month decline to a whopping 27%. Its shares fell in response to surprisingly weaker-than-expected patient admissions late last year. Whilst this weakness is likely to persist in the short term, in the long-term I expect things will improve greatly as demand for health care services increases. Whilst rival private hospital operator Ramsay Health Care Limited (ASX: RHC) would be my pick of the industry, at the current share price I feel Healthscope could prove to be a good buy and hold investment.

As well as these shares, this high-yielding dividend share has come under a spot of selling pressure this year. The good news now is that its shares look to be great value and pay a massive fully franked dividend.

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 click the link below!

Simply click here to receive your copy of our brand-new FREE report, "The Motley Fool's Top Dividend Stock for 2017."

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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

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 Financial Services Guide (FSG) for more information.