'Potentially bottomed': 2 ASX shares experts reckon can't get any cheaper

After a torrid seven months, interest rates are now the highest in nine years. Many investors are now looking to 2023 for a stock recovery.

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With seven consecutive interest rate rises now under the belt, some Australian investors are looking ahead to next year when the Reserve Bank perhaps will sit still.

If you think this outlook has some merit, then it's worth paying attention to ASX shares that professional investors reckon might have already reached the bottom.

Here are two such stocks that were mentioned this week:

'Well positioned' for recovery

As a construction materials provider, James Hardie Industries plc (ASX: JHX) shares have suffered from recent uncertainty about housing markets.

The stock has plunged more than 41% year to date.

But Fairmont Equities managing director Michael Gable reckons James Hardie has now "potentially bottomed".

"If the recent share price fall is already pricing in tough times, then we believe it's time to consider buying JHX," Gable told The Bull.

"This global building materials supplier is well positioned to benefit when slowing economies recover."

Gable pointed out that the James Hardie share price started the year at $56.80. With it closing Monday at $33.39, he reckons it's a bargain waiting to be taken.

He's not the only one thinking along those lines. 

According to CMC Markets, a remarkable 13 out of 14 analysts currently recommend James Hardie as a buy, with 11 of those labelling it a strong buy.

This stock has sold off too much

Grange Resources Limited (ASX: GRR) is not a household name among Australian investors, but Spotee Connect chief Chris Batchelor reckons it ought to be.

"The producer sells iron ore pellets from its Savage River mine in Tasmania."

He pointed out that the iron ore price has been declining in recent months due to worries about an economic slowdown in China.

The Grange stock price has hence dropped a disastrous 61% since 8 June, which Batchelor thinks is overdone.

"We believe the Grange share price fall has been excessive given the higher quality ore it produces," he said.

"Therefore, we rate Grange Resources a buy at these levels."

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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