Although the All Ordinaries (Index: ^AXAO) (ASX: XAO) has performed well in recent weeks and is up almost 4.5% since the turn of the year, not all shares have been able to follow it higher.
In fact, the three shares listed below fell to 52-week lows on Monday. Are they cheap enough to buy now?
The Boral Limited (ASX: BLD) share price crashed to a 52-week low of $4.49 yesterday after it downgraded its full year earnings guidance. The building materials company revised its full year earnings guidance lower due to weakness in Australia and slower than expected growth in the United States. Although Boral still expects to deliver EBITDA growth this year, this growth is not expected to be anywhere near as strong as previously suggested. I think Boral's shares look good value at this level.
The Challenger Ltd (ASX: CGF) share price sank to a 52-week low of $7.17 on Monday before rebounding higher. Investors have been hitting the sell button in a panic after the annuities company downgraded its full year profit guidance following a disappointing first half. Challenger expects to report a full year normalised net profit before tax of $545 million to $565 million in FY 2019, which represents a decline of 0.5% to 3.2% growth. Management had previously provided guidance of annual growth between 8% and 12%. While Challenger's shares look reasonably priced now, I wouldn't be a buyer until I've seen a big improvement in its performance.
The Virtus Health Ltd (ASX: VRT) share price dropped to a 52-week low of $4.15 yesterday. This fertility treatment specialist's shares have been trending lower since the release of an underwhelming full year result in FY 2018. Virtus reported a 3.4% decline in cycle volumes from its Australian clinics during the year due to increasing competition and lower demand. In addition to this, at its annual general meeting in late November management warned that its margins had narrowed during the first four months of FY 2019. At under 11x earnings Virtus Health's shares looks good value, but it might be worth holding out for its results this month to see how the company is faring.
