I think it is fair to say that the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) performance so far in 2018 has been a touch disappointing. Year-to-date the benchmark index is down 2.1%.
But as disappointing as this is, it is nothing in comparison to what shareholders of the three shares listed below have had to endure.
Are these three beaten down shares now in the buy zone?
EML Payments Ltd (ASX: EML)
On Tuesday this fintech company's shares fell to a 52-week low and extended their year-to-date decline to a sizeable 38%. The catalyst for this decline was a weaker-than-expected half-year result last month. Although EML Payments reported a 47% increase in net profit to $2 million, it doesn't appear to have been deemed enough to justify the premium its shares were trading at. Even now they do look expensive at 65x annualised earnings. I would suggest investors hold off an investment until it trades on a more reasonable valuation.
Greencross Limited (ASX: GXL)
This integrated pet care company's shares have fallen almost 14% since the start of the year and are now sitting within sight of their 52-week low. This has left Greencross' shares trading at under 15x trailing earnings, which I think is a very attractive level. Especially given that it means its shares now provide a generous trailing fully franked 3.6% dividend. With the company's in-store veterinary clinic roll out and loyalty program proving very successful, I think Greencross could be a great buy and hold investment option.
iSentia Group Ltd (ASX: ISD)
This media monitoring company's shares have been one of the worst performers on the market this year with a 33% decline. Unfortunately things just keep going from bad to worse for iSentia. First it was the company's ill-fated acquisition of content marketing business King Content holding the company back, now that has been exited it is the company's core business that is dragging on its performance amid competitive pressures. I don't think things are going to get any easier in the short to medium term, which could lead to iSentia's shares sinking even lower. I would recommend investors stay well clear of it.
