Over the last 12 months the S&P/ASX 200 index has carved out a gain of 7.1% excluding dividends or approximately 11% if you include them.
Whilst the majority of shares on the index have pushed higher with the All Ordinaries, not all shares have managed to do so.
The three shares listed below have fallen out of favour with investors and thoroughly underperformed the market. Is it time to invest?
The AMP Limited (ASX: AMP) share price has tumbled a massive 42% lower since this time last year. Investors have been selling the embattled financial services company's shares due largely to the findings of the Royal Commission and the perceived reputational damage it has done. And whilst its shares are now trading close to all-time lows, I wouldn't be in a rush to pick up shares. I would suggest investors wait for a notable improvement in its performance before considering an investment.
The Bellamy's Australia Ltd (ASX: BAL) share price has lost 44% of its value over the last 12 months. This decline has been caused by the negative impact that delays to gaining SAMR accreditation has had on its sales. This accreditation is necessary for companies wishing to sell their products on mainland China. Whilst the prudent thing to do would be to wait for this accreditation to be granted before investing, I still think it could be worth picking up a small number of shares at the current level due to their attractive valuation.
The Flight Centre Travel Group Ltd (ASX: FLT) share price has fallen over 31% since this time last year. The travel agent's shares have been sold off due to concerns over the underperformance of its Australia Leisure business. Due largely to this segment's poor performance, Flight Centre recently downgraded its full year profit before tax guidance to between $335 million and $360 million. This compares to its prior guidance of between $390 million and $420 million, with the mid-point of its range representing a 10% decline on the prior corresponding period. At 17x estimated full year earnings, I think Flight Centre's shares are looking reasonably attractive. However, I intend to wait for its results before considering an investment.
