These 6 market favourites have fallen to 12-month lows: is now the time to buy?

Down and out stars could be huge winners for long-term investors.

Andrew Mudie

Andrew joined the growing team of Motley Fool freelance writers in mid-2013 following years of personal development as a passionate self-taught sharemarket investor. At the time, Andrew was an engineer by trade, writer by hobby, and an investing nerd by passion who spent far too many breaks reading, writing and learning. Andrew’s first investing lesson came with his first stock selection in 2011 when takeover rumours caused a spike and subsequent plunge in the share price of Woodside and then the 21% fall in the market through mid-2011. The next four years of investing saw Andrew dabble in a vast array of strategies until settling on his favourite investment methodology, which is closely aligned with that of the Motley Fool: Fundamentals-based long-term buy-and-hold of great companies at great prices.

Published October 20, 2014 9:16 am AEDT

The last 30 days have been pretty poor for Australia's listed companies, especially those exposed to spending on oil and iron ore. The S&P/ASX 200 (INDEXASX: XJO) has fallen a little over 3% over the last month but some of Australia's largest and most trusted names have plunged to 12-month lows.

The factors behind the companies' declines are fairly easy to pinpoint but are investors overreacting? Could today be a perfect time to invest in these down and out stocks?

Mid-cap oil and gas exploration company Beach Energy Ltd (ASX: BPT) has been hit hard by the falling oil price. The share price has fallen 15% to sit at a 12-month low.

Outsourcing network Freelancer Ltd's (ASX: FLN) shares recently fell to an all-time low of 60 cents. The shares have mildly recovered, but investors are waiting for more concrete evidence that the company can grow fast enough.

JB Hi-Fi Limited's (ASX: JBH) shares have fallen 12% over the last month following a disappointing sales performance from its rivals and concerns that like-for-like sales could drop over the next 12 months. I feel the company is being treated harshly and will rebound soon.

Casino group Crown Resorts Ltd (ASX: CWN) has been hit with a perfect storm. 'Lucky' punters have raked in more wins than expected, gaming revenue is falling in the group's key Macau casinos, and Chairman James Packer continues to complain about taxation in Australia. These short-term issues should pass relatively quickly.

Myer Holdings Ltd's (ASX: MYR) shares have fallen a further 13% over the past month as investors exit in droves. Myer is also facing problems attracting as many customers as it used to in the face of increased competition from overseas rivals moving into the Australian market.

Accounting software provider XERO FPO NZ's (ASX: XRO) shares have fallen to a new 12-month low after analysts expressed concern about the group's US operations. I expect that over time the group will lead the way in the US.

These companies could well be much, much larger in five years' time if the Australian economy recovers and the problems holding each back subside.

Automatic Renewal

By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service. Don't worry, though – you're not locked in, and can cancel your auto-renewal at any time before each 'anniversary' date without question or penalty.