Got $3,000? These 5 beaten-down ASX shares are begging to be bought

Check out these 5 beaten-down ASX shares that I think have been oversold by investors given their cheap valuations right now.

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There are a number of beaten-down ASX shares in the current market. After the S&P/ASX 200 Index (ASX: XJO) fell 2.2% yesterday, here are a few potential buys at their current prices.

beaten down shares

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5 beaten-down ASX shares that could be in the buy zone

There are a lot of big-name companies that shed billions in value during the recent bear market.

The Scentre Group (ASX: SCG) share price has slumped 42.6% lower this year. While big falls don't usually occur without reason, quick declines can be an indication of a share being oversold.

Aussie real estate has a lot of question marks given the current restrictions. Scentre is a retail real estate investment trust (REIT) that has spooked investors in the current market.

The Woodside Petroleum Limited (ASX: WPL) share price has also been hit by the coronavirus pandemic. 

Oil prices fell through the floor as manufacturing and travel demand slumped lower. That's bad news for Woodside's earnings but easing restrictions could be good news for ASX oil shares in 2020.

The Woodside share price is down 39.9% in the year-to-date which could mean it's back in the buy zone if a quick economic rebound is on the cards.

It's not just retail and oil that have been hit hard. The Aussie banks have also been hit hard by the recent restrictions.

Westpac Banking Corp (ASX: WBC) shares are down 28.3% this year. The economic downturn has the potential to hit bank balance sheets and earnings hard in 2020 and 2021.

It's a similar story for National Australia Bank Ltd (ASX: NAB) shares. NAB's value is down 26.5% this year which is underperforming the ASX 200 benchmark index by 12.1%.

Finally, Telstra Corporation Ltd (ASX: TLS) is another blue-chip company that has slumped lower this year. Demand for the Aussie telco's services has skyrocketed during the pandemic but investors are worried.

That could mean Telstra is a cheap buy right now but there's definitely risk involved in buying underperforming shares in the current market.

Foolish takeaway

These are just 5 beaten-down ASX shares that could be in the buy zone right now. As always, take your own appetite for risk into account when investing in the share market. 

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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