The Motley Fool

Is it time to buy JB Hi-Fi, Ramsay Health Care, and SEEK shares?

While the shares of Afterpay Touch Group Ltd (ASX: APT) and Northern Star Resources Ltd (ASX: NST) have rocketed higher over the last 12 months, not all shares on the ASX 200 have fared so well.

The three popular shares listed below have fallen heavily during this time. Is now the time to invest?

The JB Hi-Fi Limited (ASX: JBH) share price is down over 21% during the last 12 months and was trading at a 52-week low last week. This retailer’s shares have come under pressure during this time due to concerns that online competition from the likes of Amazon and Kogan.com Ltd (ASX: KGN) and the cooling housing market could be impacting its businesses. In addition to this, a surprisingly weak trading update from Kathmandu Holdings Ltd (ASX: KMD) last week sparked fears that Christmas trading may have not been as strong as hoped for Aussie retailers. Whilst I do think that JB Hi-Fi’s shares look to be good value, I would suggest investors wait for the release of its half year results before considering an investment.

The Ramsay Health Care Limited (ASX: RHC) share price has tumbled 19% since this time last year. Tough trading conditions across its Australian, French, and British operations have led to the company’s underperformance this year. Unfortunately, things don’t appear to be improving quickly, which could mean that Ramsay’s underperformance continues in the near term. Because of this, I’m staying clear of Ramsay’s shares for the time being despite my belief that it is one of the highest quality companies on the ASX.

The SEEK Limited (ASX: SEK) share price has shed 15% of its value over the last 12 months. SEEK’s shares have been under a lot of pressure in recent months following the release of its guidance for FY 2019. In FY 2019 the company expects annual revenue growth in the range of 16% to 20%, but flat reported net profit after tax. Given its premium valuation this outlook was understandably not strong enough to keep some investors from heading to the exits. But it is worth noting that the subdued bottom line growth this year is largely the result of the company investing heavily in its future growth. Because of this, I feel it could be worth dealing with the short term pain for the potential long term gains.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Amazon, Kogan.com ltd, Ramsay Health Care Limited, and SEEK 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.

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