Two ASX 200 stocks that endured a tough day yesterday were Reece Ltd (ASX: REH) and Treasury Wine Estates Ltd (ASX: TWE).
These companies experienced share price falls of 4.4% and 4.6% respectively.
For context, the S&P/ASX 200 Index (ASX: XJO) rose 0.24%.
Lets see what was behind the fall and if now is a good time for investors to scoop them up.
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Treasury Wine Estates
Treasury Wine Estates is among the world's top five wine producers and owns a portfolio of more than 70 brands including Australian labels such as Penfolds.
Its share price tumbled 4.6% yesterday following a 5% fall on Monday.
It seems investors are exiting the ASX 200 stock following the release of its half-year results.
The company reported profits that were down substantially from the prior corresponding period.
- Net Sales Revenue (NSR) down 16.0% to $1.3 billion.
- EBITS dropped 39.6% to $236.4 million; EBITS margin shrank to 18.2% from 25.3%.
- NPAT before material items and SGARA was $128.5 million, down 46.3%.
- Statutory NPAT loss of $649.4 million
Perhaps the most disappointing part of the announcement was the suspension of dividends.
Its share price is now down more than 50% over the last year.
Reece
For those unfamiliar, the company is a supplier of plumbing, bathroom, heating ventilation, and air-conditioning products.
This ASX 200 stock also lost significant ground during Tuesday, falling 4.4%.
However unlike Treasury Wine Estates, there was no price sensitive news out of the company.
Reece Ltd has endured a tough 12 months, down roughly 36% in that span.
It is now sitting close to its 52-week low.
Is either ASX 200 stock a buy low candidate?
With both stocks being down significantly in the last 12 months, it could be an opportunity for investors to buy.
Recent valuations from experts suggest investors should wait for further drops before entering.
A recent note out of UBS included a share price target of $4.75 for Treasury Wine Estates shares.
That is right around the current levels.
Morgans had a recent price target of $5.25 on the ASX 200 stock on the back of disappointing US performance in January.
This indicates a modest upside after the recent fall, however general sentiment is negative/neutral on Treasury Wine Estates shares.
It's unfortunately a similar story for Reece shares.
Analysts via TradingView have an average one year price target of $13.28 on this ASX 200 stock.
That's roughly 4.5% below current levels.
