After a shocking day yesterday, the S&P/ASX 200 (Index: ^AXJO) (ASX:XJO) has now managed to record a gain of just 0.33% since the start of the year.
Unfortunately, a number of good quality industrial shares have posted significantly worse returns during this time as investors have shifted their focus to other sectors of the market.
However, it isn't all bad news as I believe some of these price falls are likely to prove temporary over the medium term.
With that in mind, here are six beaten-up shares that investors might want to take a closer look at:
| Company | Market Cap | P/E Ratio | Forecast 12 month Dividend Yield | Discount to 52-week high | Year-to-date performance | 5 Year Total Return |
| $3.1 billion | 17.9 | 4.6% | 18.1% | -10.4% | 41.2% | |
| $946 million | 19.1 | 3.5% | 32.5% | -5.4% | N/A | |
| $1.9 billion | 14.5 | – | 40.0% | -5.9% | 42.1% | |
| $187 million | 18.6 | 1.9% | 33.2% | -3.7% | 49.3% | |
| $399 million | – | – | 51.7% | -13.0% | N/A | |
| $113 million | 10.5 | 3.8% | 27.3% | -19.9% | 11.9% |
With the exception of RXP Services, there is a clear reason why each of the shares listed above has significantly under-performed the market.
Importantly, however, many of these issues appear to be temporary and this means patient investors may have an excellent buying opportunity in front of them.
For example, BT shares have come under pressure as a result of the falling British pound and the uncertainty surrounding Brexit – both of these issues are likely to resolve over the medium term.
The Mayne Pharma share price has plunged as a result of an investigation into anti-competitive behaviour. While the short term ramifications are still unclear at this stage, it could be argued that this uncertainty has now been priced in by the market. Importantly, the company's sales are booming and are likely to be supported by new product launches and further acquisitions.
Finally, the Freelancer share price has taken a dive as a result of weaker-than-expected results from a recently acquired business. Its core freelancing business, however, continues to grow from strength-to-strength and is likely to be the key driver of growth over the long term.
Foolish takeaway
The market can be very short-sighted at times and this means some of the best buying opportunities will often arise when a company is facing a short term headwind.
