Are these beaten down blue-chip shares in the buy zone?

In the last 12 months the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has managed to navigate the Brexit and the U.S. election and carve out a gain of almost 9%.

Unfortunately not all shares on the index have managed to do the same. The two shares below have been thoroughly beaten down during this time. Are they in the buy zone now?

The Mayne Pharma Group Ltd (ASX: MYX) share price has fallen 25% in the last 12 months. Despite the $652 million acquisition of a portfolio of generic drugs from pharmaceutical giants Teva and Allergen, its shares are now valued less than they were pre-acquisition.

Price-fixing allegations and President Trump’s proposed policies have weighed heavily on its shares and led to the sell-off. Whilst I think Mayne Pharma is very cheap now and a very tempting investment, its rising levels of short interest have put me off at this point.

The TPG Telecom Ltd (ASX: TPM) share price has almost halved in value in the last 12 months. Concerns over narrower than expected NBN margins and heightened competition in the telecommunications industry appear to be key catalysts to this decline.

But with the company moving into the mobile phone market through the launch of its own network and rolling out its own fibre internet services, I think TPG Telecom has positioned itself for above-average earnings growth over the next decade. This could make it an opportune time to make a buy and hold investment in my opinion.

Finally, although these fantastic shares haven't been beaten down, I think they could still be bargain buys considering their explosive growth prospects.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

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