'Bright outlook': 2 ASX shares now in a perfect dip for buying

Experts name a pair of stocks that have plummeted in recent times but are worthy long-term investments.

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The obvious psychological effect of plunging ASX share prices on investors is to feel pessimistic and anxious.

But the smartest wealth builders jump at the chance to buy bargains.

We know it's easier said than done, but here are two examples that might get you thinking this way:

Go long on this one

Insurance repairer Johns Lyng Group Ltd (ASX: JLG) has seen its stock price drop 9.5% year to date.

It's been especially painful over the past month, as its valuation has lost a whopping 21%.

Medallion Financial Group director Phillip Bui attributed this to mixed fortunes within the business.

"This building services group operates in the restoration space in Australia and the US," Bui told The Bull.

"A recent company update revealed the restoration services business was outperforming, while commercial construction was underperforming."

Despite the hiccup, Bui's long-term conviction on John Lyng remains.

"Management was positive about the volume of work in hand for fiscal year 2024," he said.

"We're comfortable about the company's outlook."

Other professionals are also keen on grabbing Johns Lyng shares during this current dip.

Seven out of 10 analysts currently surveyed on CMC Markets rate the stock as a buy.

'Favourable industry fundamentals and improved funding'

Aged care provider Regis Healthcare Ltd (ASX: REG) has seen its shares fall more than 5.5% since 7 June.

Sequoia Wealth Management senior wealth manager Peter Day would buy it now.

"The aged care operator has announced the sale of vacant land and the Hollywood retirement village at Nedlands in Western Australia for $53 million," he said.

"This transaction results in a pro forma reduction in net debt of 58%, providing flexibility for growth, including acquisitions."

It's always a good move to pay off debts when interest rates are rising, and Day noted external forces — such as an ageing population — are also in Regis' favour.

"Combined with favourable industry fundamentals and improved funding, we believe Regis Healthcare offers a bright outlook."

Last month, investment firm Moelis & Company upgraded its view on Regis Healthcare.

"Moelis lifted the ASX All Ords share to a buy, with a $2.65 price target," reported The Motley Fool's Bernd Struben.

Investors in Regis Healthcare stocks also enjoy a nice bonus through a 1.94% dividend yield.

Motley Fool contributor Tony Yoo has positions in Johns Lyng Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group. The Motley Fool Australia has recommended Johns Lyng Group. 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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