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Should you buy these beaten down ASX shares?

Although the market has touched on a multi-year high recently, not all shares have been able to follow it higher.

Three that have gone the other way are listed below. Should you buy these beaten down ASX shares?

The Bellamy’s Australia Ltd (ASX: BAL) share price dropped lower again on Tuesday, meaning it is now down a massive 52% from its 52-week high. Investors have been hitting the sell button due to concerns that its CFDA accreditation to sell products directly in the China market could be delayed for a few months. This is likely to mean that Bellamy’s falls short of the market’s expectations in FY 2019. While this is a disappointment, I believe the long-term opportunity is still very much there and the risk/reward on offer with its shares at this level is compelling.

The Greencross Limited (ASX: GXL) share price has fallen almost 33% since the start of the year. Investors have been selling the shares of the integrated pet care company in a hurry after a trading update in May revealed a surprising decline in same store sales for its standalone veterinary businesses. There are concerns that this could be an indication that its in-store veterinary clinic rollout strategy isn’t working as planned. Because of this, I intend to hold off an investment until I’ve heard what management says about FY 2019.

The Ramsay Health Care Limited (ASX: RHC) share price has recovered slightly in recent weeks but is still down 26% from its 52-week high. While this could prove to be a gift for long-term patient investors, I’m not overly convinced that its shares have bottomed yet. After all, Ramsay’s operations across the world are all going through tough trading conditions right now and a recovery doesn’t appear to be immediately in sight. This could potential mean Ramsay struggles for growth in the short to medium term unless it can find some earnings accretive acquisitions.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Greencross Limited. The Motley Fool Australia has recommended Ramsay Health Care 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 Scott Phillips.

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