Although the market has bounced back strongly from its March low, a number of popular shares are still trading materially lower than their 52-week highs.
Two beaten down ASX shares which I think investors ought to consider buying are listed below. Here's why they could prove to be bargain buys:
IDP Education Ltd (ASX: IEL)
The IDP Education share price has been sold off in 2020 and is down 45.7% from its 52-week high. As a leading provider of international student placement services and English language testing services, IDP Education's business has been impacted greatly by the pandemic. While this is likely to lead to very soft results in FY 2020 and FY 2021, I expect the company to bounce back strongly once conditions return to normal.
Especially given how surveys on prospective students suggest that plans to continue pursuing a higher level of education remain the case for the majority of students. This deferral of volumes is expected to result in a build-up of the student pipeline when markets reopen. And with such a strong balance sheet following its equity raising, IDP Education looks better positioned than most to navigate these tough trading conditions.
Jumbo Interactive (ASX: JIN)
The Jumbo share price is down a massive 58% from its 52-week high. The online lottery ticket seller and operator of the Oz Lotteries website has come under pressure over the last 12 months due to its slowing growth and amended reseller agreement with Tabcorp Holdings Limited (ASX: TAH).
The slowdown in its growth is due management's focus on investing in its growth. And while the Tabcorp agreement may be on less favourable terms, it provides a lot of stability and allows management to focus on the international expansion of its Powered by Jumbo SaaS business. This business has enormous potential and is looking to win a slice of the US$303 billion global lottery market. Management notes that just 7% of this market is online at the moment, but is likely to make the shift in the future.
