It has been a bit of a disappointing start to the year for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO).
As of yesterday's close, the benchmark index had fallen almost 2% since the turn of the year.
Whilst that is disappointing, it is nothing compared to the declines that some shares have experienced so far in 2018.
Has this created a buying opportunity for the following three shares?
The BWX Ltd (ASX: BWX) share price is down 33.5% year-to-date after the release of an underwhelming half-year result. While the personal care products company delivered strong growth, it was below the market's expectations. The good news for non-shareholders is that I think this decline has created a buying opportunity. As does Goldman Sachs which has BWX on its conviction buy list with a massive $8.25 price target.
The Domino's Pizza Enterprises Ltd. (ASX: DMP) share price has lost around 12% of its value since the start of the year. Like BWX, this decline stems from a disappointing first-half result. Although management has held firm with its ambitious full-year guidance, heavy insider selling appears to have many investors concerned that it will fall short of expectations for a second year running. While I think that Domino's is good value and has strong long-term growth potential, I expect things will remain volatile in the short term.
The Retail Food Group Limited (ASX: RFG) share price was one of the worst performers in 2017 and looks set to replicate this in 2018. Year-to-date the food and beverage company's shares are down almost 54%. The negative media coverage that occurred late last year appears to have impacted the business greatly and contributed to significant store closures. Unfortunately, I can't see how the company will be able to turn things around and would suggest investors give it a wide berth.
