ASX shares that drop in price could present good opportunities for investors if their long-term prospects still look promising. The share market sell-off that we've seen so far this year – and is being continued today — could be a useful time to go hunting.
The S&P/ASX 200 Index (ASX: XJO) is down another 1.38% today at the time of writing.
I should point out that just because something has fallen in price doesn't automatically mean that it's better value. For example, an ASX share's prospects could have worsened, leading investors to rightly reduce their expectations of the company in the future.
In my opinion, the below three businesses look very interesting at the current levels.
Johns Lyng Ltd (ASX: JLG)
This business describes itself as "Australia's leading integrated building services provider, delivering building, restoration, strata and energy services nationally and internationally. The group's core business is built on its ability to rebuild and restore a variety of properties and contents after damage by insurable events including: impact, weather and fire events."
It has clients that include major insurance companies, insurance brokers, loss adjusters, commercial enterprises, local and state governments, body corporates/owners' corporations, and retail customers.
At the time of writing, the Johns Lyng share price has fallen almost 13% today and it's down 37% in the year to date.
The business gave an update today and explained its CEO has sold four million shares to fund his relocation to the US as well as the purchase of a home there, along with tax liabilities. CEO Scott Didier still owns 19% of the business.
The business has reaffirmed its FY23 guidance that it's expecting 'business as usual' (BaU) revenue to rise 27.4% to $930.4 million and that BaU EBITDA could rise by 43.3% to $93 million.
I think this business has plenty of growth potential because of its increasing exposure to weather events such as storms and floods, and because it's growing its presence with its existing and new clients.
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is an ASX tech share that I believe has a compelling future. It offers digital donation tools and church management software for church organisations in the US. The business started off by targeting large and medium churches but it's now trying to win over small churches as well.
The ASX share recently announced it has won the US Army Chaplin Corps as a customer. The army will use a tailored Pushpay software and apps solution for its 51 ministries around the world.
I think this business can benefit from the ongoing adoption of digital payments while growing profit margins thanks to operating leverage.
Another thing to keep in mind is that private equity group BGH Capital may still be interested in buying the business, according to reporting by the Australian Financial Review.
Since the beginning of 2022, the Pushpay share price is down almost 40% over the past year, so I think it could be an opportunity at this lower price.
Audinate Group Ltd (ASX: AD8)
The Audinate business offers the Dante IP networking solution, which claims to be a worldwide leader of AV signals. It works by replacing analogue cables and is used extensively in the professional live sound, commercial installation, broadcast, public address, and recording industries.
I think that the Audinate share price looks much cheaper after falling around 7% today and it's down 30% since 5 August 2022.
Investing in worldwide leaders can make a lot of sense, particularly if they're growing quickly. The ASX share's FY22 revenue rose 33.4%. It said it's entering FY23 with a backlog and software revenue run-rate to support revenue growth in US dollar terms in the "historical range".
I'm also excited by the progress it's making with the video side of things. Video revenue is expected to be at least US$3 million in FY23.
