With the market selloff resuming on Monday, it will come as no surprise to learn that a number of shares have sunk to 52-week lows.
Three beaten down shares that caught my eye are listed below. Are they in the bargain bin now?
The AGL Energy Limited (ASX: AGL) share price fell to a 52-week low of $18.31 after lunch. Many investors have been heading to the exits in a hurry due to concerns that competitive pressures and regulatory scrutiny will weigh on its performance. This is because there are fears that energy prices are going to be a key topic during next year’s Federal election and that energy retailers such as AGL Energy could be in the firing line. Its shares do look cheap now, but I’d suggest investors wait for the election before considering an investment.
The Bega Cheese Ltd (ASX: BGA) share price dropped to a 52-week low of $6.09 this afternoon. Its shares have been trending lower since the release of its full year results. Although its result in FY 2018 was strong thanks to the Mondelēz grocery business acquisition, its outlook for the year ahead was soft. Management warned that the domestic retail market remains highly competitive. In addition to this, last month Bega Cheese completed a non-underwritten institutional share placement to raise $200 million and saw a large amount of insider selling. While it shares are looking more attractive, I wouldn’t class them as a bargain buy just yet. I still see its shares as a hold.
The BWX Ltd (ASX: BWX) share price fell to a 52-week low of $3.18 on Monday. The personal care company’s shares have come under significant selling pressure since the Bain consortium withdrew its takeover approach. In addition to this, the worrying slowdown in sales growth of its key Sukin brand has been alarming for shareholders. But with its shares now changing hands at 15x full year earnings, it could be worth considering. Though, it may be prudent to wait and see how Sukin and its acquired brands are performing in FY 2019 before making a move.
Finally, here is a bargain buy that I think you shouldn't miss out on this month. It was recently given a buy rating.
Discover why this legendary Australian stock-picker just issued a “Double Down” buy alert to his exclusive group of insiders… and why he’s convinced this might be the single most attractive entry point for years to come.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BWX 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.