On Tuesday the Australian share market sunk significantly lower for the second day in a row.
Unsurprisingly, this led to a number of shares drifting to 52-week lows or worse. Three that caught my eye are listed below. Are they in the buy zone now?
The InvoCare Limited (ASX: IVC) share price fell to a two and a half year low of $11.31 on Tuesday before rebounding slightly. The funeral company’s shares came under pressure after it warned that a mild winter and benign flu season had negatively impacted its business performance. This was yet another blow to a company which has been struggling for growth of late. Despite its subdued growth outlook, InvoCare’s shares still trade on a premium valuation. I believe this puts them at risk of further declines in the coming months. As a result, I would suggest investors stay clear of the company’s shares.
The Monash IVF Group Ltd (ASX: MVF) share price sank to a multi-year low of 98.5 cents yesterday. The fertility treatment company’s shares sank lower on Tuesday after it advised that it had accepted the resignation of David Morris as chief executive officer and managing director with immediate effect. Mr Morris had been in the job for less than a year after replacing James Thiedeman late last year. This added to the negative sentiment surrounding the company after it advised that its first half profits would be down 15% on the prior corresponding period. While its shares are trading at just 11x earnings, I would suggest investors wait for an improvement in its performance before investing.
The Westpac Banking Corp (ASX: WBC) share price tumbled to a multi-year low of $26.90 on Tuesday. Investors have been heading to the exits in their droves since the banking giant advised that its full year profit result would be reduced by $235 million following further work on addressing customer issues and from provisions related to recent litigation. This may have investors concerned about its ability to maintain its current dividend. While this is disappointing, I still see a lot of value in its shares. Though, it may take some time for investor sentiment to shift positively and be reflected in its share price.
So if you're not keen on the banks then I would suggest you consider this top dividend share.
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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has recommended InvoCare Limited and Monash IVF Group Ltd. 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.