The past month hasn't been a kind one for the S&P/ASX 200 Index (ASX: XJO) and most ASX 200 shares. The shares of gaming stock Aristocrat Leisure Ltd (ASX: ALL) are no different.
This time last month, Aristocrat was going for $77.75 a share.
Today, those same shares are asking just $65.89 each at the time of writing. That's down 0.87% this session thus far, and down a nasty 15.25% over the past month. For some context, the ASX 200 has dropped by around 7.3% over the same period.
There hasn't been much in the way of fresh news or announcements out of Aristocrat lately that might easily explain this dramatic drop in value. Saying that, Aristocrat shares are still sitting on a 12-month gain of 48.4%, so there was arguably a lot of padding under this company's share price.
Aristocrat is also one of the ASX's best long-term winners. Over the past five years, investors have enjoyed a 277% gain from this company, which extends even further if we include dividend returns. If you were lucky enough to pick up Aristocrat shares back in late 2011 for $2 each, you'd be sitting on a gain worth more than 3,100% today.
Check all of this out for yourself below:
So, given the ASX 200 stock's long-term track record and recent pullback, many investors, particularly those of value persuasion, might be wondering whether Aristocrat is a buy today.
Image source: Getty Images
Are Aristocrat Leisure shares a buy today after a 15% drop?
Firstly, although a 15% drop is notable, it only reverses some of the company's most recent gains. To illustrate, you could buy these shares as recently as November for what they are currently going for. And back then, the current price was Aristocrat's all-time high.
Even so, one ASX expert reckons there is plenty of value to be found at current prices.
Just this morning, my Fool colleague dove into the views of ASX broker Bell Potter.
Bell Potter reckons Aristocrat is still a buy, thanks to the company's perceived long-term growth trajectory. Along with a buy rating on Aristocrat shares, the ASX broker gave the company a 12-month share price target of $85. If this does come to pass, it would see Aristocrat gain a huge 29.5% from where the shares sit today.
No doubt investors will be giddy to hear that. But let's wait and see if Bell Potter is on the money here.
At the current Aristocrat Leisure share price, this ASX 200 gaming stock is trading on a price-to-earnings (P/E) ratio of 32.4, with a dividend yield of 0.99%.
