After big falls, these ASX 300 shares look dirt-cheap!

The S&P/ASX 300 Index (ASX: XKO) is rising again. But, there are some names that have plunged heavily over the last year or so. This could be a great time to invest if those ASX 300 shares rebound.

Shares don’t necessarily recover just because they’ve gone down. But, if problems are just short-term then it can prove to be a great opportunity to jump on it while investors are pessimistic.

With the three ASX 300 shares that I’m going to write about, I think that they’re not only leaders at what they do, but they’re trading at bargain prices as well.

Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting is a leading retailer of baby products like prams, car seats, toys, blankets and so on.

The Baby Bunting share price has fallen over 50% in the last year. It still has the same store network, it has the same growth plans, and it’s not as though the Australian baby population has dropped by 50%.

Profit did take a hit in the first half of FY23, as the business responded to discounting by competitors. But, I don’t think the sector will be as competitive forever. Even if it is, Baby Bunting’s share price is much cheaper and its expansion plans can help drive its profit and share price higher.

The Baby Bunting share price is valued at 13 times FY23’s estimated earnings and under 9 times FY25’s estimated earnings, according to Commsec. The business could be paying a grossed-up dividend yield of 11%.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Domino’s is another ASX 300 share that has fallen hard – it’s down 33% in the past year and it’s down 67% from September 2021.

But, I think the company’s future profitability will be stronger than what it reported in the first half of FY23. Its global store network continues to grow. It recently entered into Malaysia and Singapore. The business has a very compelling growth profile in markets like Germany and France.

I think trends like automation and population growth can help Domino’s performance in the markets in that it operates.

Commsec numbers put the Domino’s share price at 32 times FY23’s estimated earnings and 23 times FY25’s estimated earnings with a large profit recovery expected.

Food inflation (hopefully) returning to a normal rate will help improve the economics of the food for customers and Domino’s.

Dicker Data Ltd (ASX: DDR)

Dicker Data describes itself as a technology hardware, software, cloud, access control and surveillance distributor. It has a partner base of over 10,000 resellers across Australia and New Zealand. It distributes products from a number of the world’s most famous technology brands.

The Dicker Data share price has dropped 37% in the last year.

In a recent update, the company said that buying power will “shift back into the end-customer’s hands in 2023 as order backlogs are fulfilled and vendors manufacture new inventory in line with the dynamics of the previous years, with supply expected to outstrip demand.”

According to Commsec, the Dicker Data share price is valued at 19 times FY23’s estimated earnings with a potential grossed-up dividend yield of 7.4%. Dicker Data shares are valued at 17 times FY25’s estimated earnings and a potential grossed-up dividend yield of 9.1%.

The post After big falls, these ASX 300 shares look dirt-cheap! appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Baby Bunting Group, Dicker Data, and Domino’s Pizza Enterprises. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool Australia has recommended Baby Bunting Group and Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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