Although many popular shares such as A2 Milk Company Ltd (ASX: A2M) and Nextdc Ltd (ASX: NXT) have had a fantastic year and generated sizeable returns for their shareholders, not all shares have been so lucky.
Two popular shares which have failed to deliver this year are listed below. Will they bounce back in 2018?
The Domino's Pizza Enterprises Ltd. (ASX: DMP) share price has fallen around 33% since the start of the year after the pizza operator fell short of its guidance in FY 2017. I'm cautiously optimistic that the company will bounce back stronger next year, potentially making now an opportune time to snap up shares.
Beyond 2018 I think Domino's is a standout pick due to its long-term growth plans. Management not only intends to more than double its store network over the next eight years, but also increase its margins considerably. I expect this to lead to strong profit growth for some time to come.
The Telstra Corporation Ltd (ASX: TLS) share price has lost almost 28% of its value year-to-date. This decline occurred when the telco giant was forced to slash its dividend to 22 cents per share due to weaker NBN margins and a future gap in its earnings post the NBN roll out.
I think that the bad news has been factored in now, meaning Telstra could be a good addition once again. Especially with its planned FY 2018 dividend providing a full franked 5.9% yield.
