On Christmas Eve the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) may have pushed higher, but that didn't stop a number of shares from sinking to 52-week lows or worse.
Is it time to buy these beaten down ASX shares?
The Domain Holdings Australia Ltd (ASX: DHG) share price touched on a 52-week low of $2.13 before recovering to push slightly higher. This property listings company's shares have come under heavy selling pressure in recent months after the cooling housing market led to lower new listings and auction volumes, as well as a reduction in the levels of new development projects. As a result of these tough trading conditions, Domain achieved revenue growth of just 1% during the first 15 weeks of FY 2019. I would stay away from Domain until trading conditions improve or its shares are priced to reflect lower growth expectations.
The Freedom Foods Group Ltd (ASX: FNP) share price tumbled to a 52-week low of $4.40. This decline meant that its shares had lost 37% of their value since peaking at $7.00 earlier this year. Freedom Foods' shares appear to have been hit due to the sky-high earnings multiples that they were trading on. And although they are still priced at 50x trailing earnings, I think this is reasonable value given its outlook for FY 2019. Management recently confirmed that sales are expected to grow as much as 50% this year. I expect earnings to grow at an even stronger rate.
The National Australia Bank Ltd (ASX: NAB) share price dropped to a new 52-week low of $22.52 on Monday. Investors have been selling bank shares this year due to the Royal Commission and concerns over the cooling housing market. While NAB isn't necessarily my first pick in the banking sector right now, I think its shares are attractively priced for an investment today. Though I wouldn't expect any meaningful rise in its share price until after the Royal Commission final report is released in February. That's on the assumption that nothing unexpected will be included in the report.
