The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has had a stunning start to the year and is up 9.5% in 2019.
Not all shares on the market have been able to follow it higher over the period, though. In fact, the three shares listed below have all sunk notably lower. Is this a buying opportunity?
The Blackmores Limited (ASX: BKL) share price has tumbled a disappointing 24% since the turn of the year. Investors have been heading to the exits in their droves after the health supplements company released a disappointing half year result. Due largely to weakness in the China market, Blackmores fell well short of the market's expectations with both its half year result and its full year guidance. I would suggest investors keep their powder dry and wait for an improvement in its performance before investing.
The Costa Group Holdings Ltd (ASX: CGC) share price has crashed 29% lower in 2019. The horticulture company's shares were sold off at the start of the year after it reported a surprising and sudden deterioration in trading conditions. This meant that the company fell well short of its guidance for the six-month period to December 30. Pleasingly, things have since improved and management believes it will deliver on its calendar year 2019 guidance, which will mean earnings growth of at least 30%. I think this pullback has created a buying opportunity for investors.
The ResMed Inc (ASX: RMD) share price has fallen 12% since the start of the year. The sleep treatment company's shares came under pressure earlier this year after the release of a softer than expected second quarter result. Whilst the result was a touch underwhelming, I think the share price weakness is a buying opportunity for investors. Especially given ResMed's strong long-term growth potential thanks to its leading position in a sleep treatment market which is expected to grow strongly over the next decade.
