Appen Ltd (ASX: APX) and Pro Medicus Limited (ASX: PME) shares may have been scaling to new heights this month, but not all growth shares are trading at new highs. Three growth shares that are trading significantly lower than their 52-week highs at present are listed below. Are these shares in the buy zone? Aristocrat Leisure Limited (ASX: ALL) Aristocrat Leisure is one of the world’s leading gaming technology companies with a portfolio of incredibly popular pokie machines and a fast-growing digital business. The company’s shares have lost 30% of their value since they hit a 52-week high of $33.06…
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Three growth shares that are trading significantly lower than their 52-week highs at present are listed below. Are these shares in the buy zone?
Aristocrat Leisure Limited (ASX: ALL)
Aristocrat Leisure is one of the world’s leading gaming technology companies with a portfolio of incredibly popular pokie machines and a fast-growing digital business. The company’s shares have lost 30% of their value since they hit a 52-week high of $33.06 in July, which I think has left them trading at a very attractive level of just 19x estimated forward earnings. I believe this is cheap considering its strong long-term growth potential thanks to its exposure to a digital and social gaming market which is expected to grow at a rapid rate over the next decade.
Costa Group Holdings Ltd (ASX: CGC)
This horticulture company’s shares have dropped 41% from their 52-week high. The reason for this selling was the sudden deterioration in trading conditions late last year which led to Costa posting a 2.4% decline in revenue and a 42% decline in EBITDA before SGARA, material items, and amortisation during the six months to December 30. Pleasingly, conditions have improved and Costa has experienced a solid recovery in the price of its produce. As a result, it is confident it will grow earnings by at least 30% in calendar year 2019. At around 23x estimated FY 2019 earnings, I think this makes them fairly priced, but not necessarily cheap.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
This pizza chain operator’s shares are down 29% from their 52-week high. A disappointing half year result in February has largely been to blame for this share price weakness. Whilst its performance was disappointing, I believe it is well worth being patient with the company. After all, Domino’s has significant growth potential from its expansion in Europe. It is partly for this reason that Goldman Sachs recently upgraded its shares to a buy rating with a $50.50 price target.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia has recommended Domino's Pizza Enterprises 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.