Despite its recent wobbles, the All Ordinaries index has pushed a sizeable 8.8% higher since the start of the year.
Unfortunately, not all shares on the index have been able to follow it higher. Are these beaten down ASX shares in the bargain bin?
The Costa Group Holdings Ltd (ASX: CGC) share price has fallen a massive 32% in 2019. The horticulture company’s shares came under pressure after it revealed a sudden deterioration in trading conditions at the start of the year. Whilst this meant the company fell well short of its guidance for the six months to December 30, a recent improvement in conditions means that management has reiterated its earnings growth guidance of 30% for calendar year 2019. I think its shares are about fair value at the current level and could be worth a look.
The Hansen Technologies Limited (ASX: HSN) share price has tumbled 16% since the start of the year. The billing technology company’s shares were sold off following the release of a weak half year result. For the six months ended December 31, Hansen posted first half operating revenue of $112.4 million and EBITDA of $28.5 million. This was a 5% and 15.7% decline, respectively, on the prior corresponding period. I’ve been very disappointed with Hansen’s performance over the last couple of years and wouldn’t be a buyer of its shares until there’s a major improvement.
The Helloworld Travel Ltd (ASX: HLO) share price has dropped almost 30% in 2019. The integrated travel company’s shares have been on the slide since it was caught up in a political scandal. The market appears concerned that the scandal could lead to Helloworld losing its government contracts. However, it is worth noting that Ord Minnett recently suggested the selloff was a buying opportunity. It believes the loss of these contracts would only have a small impact on its earnings. It has a buy rating and $6.14 price target on its shares.
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*Returns as of February 15th 2021
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Hansen Technologies. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia owns shares of Helloworld Limited. The Motley Fool Australia has recommended Hansen Technologies. 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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