Over the last 12 months the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has managed to put on a gain of just under 5%.
Unfortunately not all shares on the local market have fared as well. In fact, a number of shares have been thoroughly beaten down.
Here's why I think these three beaten down shares could be in the buy zone now:
The Aconex Ltd (ASX: ACX) share price has fallen 39% since this time last year. Although the software-as-a-service company delivered exceptionally strong growth in FY 2017, it fell short of the market's expectations and led to the sell-off of its shares. And while it shares still trade on a lofty multiple now, I believe demand for its cloud collaboration software will be strong enough to justify this premium. I would put it in the high risk camp, but I expect it to be a rewarding investment for patient buy and hold investors.
The Greencross Limited (ASX: GXL) share price has lost 18% of its value over the last 12 months. General weakness in the retail industry and concerns over Amazon's impending launch appear to be behind the share price decline of this integrated pet care company. But I believe this sell-off has been overdone, leaving its shares trading at a bargain price. While a lot of its future success will depend on how the rollout of its in-store veterinary clinics fares, I have been impressed with the early progress.
The Ramsay Health Care Limited (ASX: RHC) share price has tumbled 22% in the last 12 months. The private hospital operator's shares came under selling pressure after its FY 2018 guidance underwhelmed. Although admittedly the guidance wasn't the strongest, I believe its shares are trading at a very attractive price now given its strong long-term growth prospects. As well as organic growth, I believe there are plenty of options for Ramsay to grow its bottom line inorganically through acquisitions and expansions.
