There are many ASX shares that say they will deliver a turnaround for shareholders, but not all of them can.
It can be quite hard for a business to turn issues around. Some businesses never do, but when they do it can lead to rapid share price recoveries for shareholders.
These are three potential turnaround stories:
BWX Limited (ASX: BWX)
BWX is the natural beauty business that owns Sukin and several other brands. It has seen its share price fall by 60% over the past year after a botched takeover by private equity as well as questions surrounding the growth of its current stable of brands.
FY19 may not be as good as expected due to all of the distractions, however FY20 could be a year of focused management, synergies being realised and the reappearance of pleasing organic growth again.
BWX is currently trading at 11x FY19's estimated earnings with a trailing grossed-up dividend yield of 3.6%.
Myer Holdings Ltd (ASX: MYR)
Myer has been one of the most disappointing investments on the ASX over the past five years.
However, new CEO John King has the confidence of major Myer shareholders including WAM Capital Limited (ASX: WAM). It wouldn't take much to turn Myer around in the short-term and grow profit, which could provide a quick boost for the share price.
Myer is currently trading at under 11x FY19's estimated earnings.
MNF Group Ltd (ASX: MNF)
MNF is one of Australia's leading voice over internet protocol (VoIP) businesses. Its share price has fallen 37% over the past year due to negativity about the Pennytel business, rising interest rates and projected growth that isn't as much as hoped.
The company continues to deliver pleasing organic growth and it has a number of initiatives like the Singapore expansion plans which could materially surprise the market over the next couple of years.
It's currently trading at under 20x FY20's estimated earnings with a grossed-up dividend yield of 3%.
Foolish takeaway
There is a genuine chance that all three of these shares may beat the market over the next year or two. Myer has the toughest job to turn things around, so I'm more inclined to pick MNF Group and BWX at the current prices.
