It's psychologically scary, but it helps your portfolio to buy ASX shares when they have dipped.
You would seek a discount when looking for a new car or a pair of trousers, so why wouldn't you do the same for stocks?
Considering this, let's check out two S&P/ASX 200 Index (ASX: XJO) stocks that plunged last month, which the Elvest Fund team loves the look of:
'Growth drivers remain intact'
Insurance claims repairer Johns Lyng Group Ltd (ASX: JLG) plummeted a horrifying 16.2% in June.
The Elvest analysts pointed out the business is heading upwards but just failed to meet the market's lofty expectations.
"Insurance builder JLG upgraded FY23 EBITDA guidance to $115 million — from $111 million previously — as a result of higher catastrophe (CAT) management business," they said in a memo to clients.
"Expectations were higher, however, with losses from the (non-core and in run-off) commercial construction division of $15 million surprising on the downside."
As far as the team is concerned, the long-term bullishness can't be doubted.
"Johns Lyng Group's growth drivers remain intact, including the strata division in Australia and the Reconstruction Experts (insurance building) division in the US."
In fact, the Elvest Fund went bargain hunting and bought more Johns Lyng shares while they're cheap.
"We increased the fund's holding, with shares trading at an attractive valuation relative to future free cash flow."
Earlier this week, Medallion Financial Group director Phillip Bui also expressed his enthusiasm for Johns Lyng shares.
"Management was positive about the volume of work in hand for fiscal year 2024," he said, while rating the stock as a buy.
"We're comfortable about the company's outlook."
'Solid long-term growth trajectory'
After rocketing 40% from the start of the year, Corporate Travel Management Ltd (ASX: CTD) came back down to earth with a 13.7% thud in June.
This happened even though positive news came in during the month, according to the Elvest team.
"Despite announcing the retention of the Whole of Australian Government (WoAG) contract, corporate travel specialist Corporate Travel Management sold off during the month, ostensibly on macroeconomic concerns."
The correction does not worry the analysts one bit.
"We still view Corporate Travel Management as a company on a solid long term growth trajectory," read the memo.
"The global corporate travel market remains highly fragmented, providing consolidation opportunities over the coming years."
That mergers and acquisitions activity could play a big role in the company's fortunes to add to the organic gains, Elvest analysts added.
After the Australian government contract win last week, two major investment houses expressed their bullishness for Corporate Travel shares.
"Morgan Stanley responded by retaining its overweight rating and lofty $28.60 price target on the company's shares. This price target implies a potential upside of approximately 62%," reported The Motley Fool's James Mickleboro.
"UBS has responded by retaining its buy rating and $25.95 price target on its shares. This suggests a potential upside of just over 47% for investors from current levels."
