The last few months have been a bit of a disappointment for investors with heavy declines being seen across the board.
Three shares that have fallen more than most are listed below. Are these beaten down shares in the buy zone now?
The Aristocrat Leisure Limited (ASX: ALL) share price has fallen 34% over the last six months and given back all its 2018 gains. The gaming technology company's shares have come under pressure after its strong full year result was not quite as strong as the market expected. I think the selloff was severely overdone and has left its shares trading at a very attractive level. Especially given the strong long term growth potential of its Digital segment. This segment finished the year with 8.1 million daily active users, putting it in a great position to generate significant recurring revenues over the coming years.
The Australia and New Zealand Banking Group (ASX: ANZ) share price has dropped 15% during the last six months due to concerns over the Royal Commission and the housing market downturn. On Thursday the bank's shares hit a 52-week low of $23.49, meaning they are now changing hands at 9x earnings and 1.1x book value. This is notably lower than its average over the last decade and at a level which I think puts them firmly in the buy zone. While I don't expect them to climb meaningfully higher over the near term, if the Royal Commission final report in February doesn't include anything unexpected, I suspect the buyers will return.
The BWX Ltd (ASX: BWX) share price has crashed a massive 73% lower since this time six months ago. The majority of this decline came on Thursday when the company behind the Sukin skincare brand downgraded its guidance significantly just seven weeks after its previous update. It now expects normalised EBITDA to be in the range of $27 million to $32 million, compared to previous guidance of normalised EBITDA broadly in line with FY 2018's $40.3 million. While this selloff potentially makes BWX a bit of a bargain, I intend to wait and see if things improve in the second half before considering an investment.
