Apart from a little blip this week, the S&P/ASX 200 index has been a strong performer this month thanks largely to a favourable election result.
However, not all shares on the benchmark index have performed as well. In fact, the three shares listed below have just hit 52-week lows. Is it time to buy these beaten down shares?
The BlueScope Steel Limited (ASX: BSL) share price sank to a 52-week low of $10.49 on Thursday. Investors have been selling the steel producer's shares due to concerns about the negative impact of rising input costs and the trade war between the United States and China. Despite this, analysts at Credit Suisse remain bullish on the company. On Thursday they retained their outperform rating on the company's shares. The broker has a $15.90 price target.
The Costa Group Holdings Ltd (ASX: CGC) share price crashed almost 28% lower to a two-year low of $3.75 yesterday. Investors were heading to the exits in their droves after the horticulture company downgraded its earnings guidance for calendar year 2019. Due to a number of issues impacting production and prices, Costa expects NPAT-SL to be in the range of $57 million to $66 million. This will be an increase of between 0.7% and 16.6%, compared to its previous guidance of at least 30% growth. One broker that thinks the selling has been overdone is Goldman Sachs. It retained its buy rating, albeit with a heavily reduced price target of $4.40.
The Nufarm Limited (ASX: NUF) share price continued its poor run and dropped to a 52-week low of $3.94 on Thursday. The crop protection and specialist seeds company's shares have come under pressure following the release of a disappointing half year result in March. Due largely to the drought, Nufarm fell well short of the market's expectations. In addition to this, the market didn't react well to its decision to suspend its dividend and downgrade its full year EBITDA guidance. Whilst its shares look good value now, I would suggest investors wait to see if things improve in the coming months before considering an investment.
