Sometimes if the market has turned on a stock, it doesn't matter how the underlying company is actually doing.
Even within the S&P/ASX 200 Index (ASX: XJO), there are plenty of examples where there is significant dislocation between the share price and business prospects.
It could be argued that such stocks are ready to be bought now for significant gains, as they find favour among investors in the future.
Here are two shares from the ASX 200 in that situation that were nominated by experts this week:
Anyone feel like pizza now?
Heading into the COVID-19 pandemic, Domino's Pizza Enterprises Ltd (ASX: DMP) was one of the darlings of the stock market.
That bullishness did not fade as Australia headed into lockdown, as investors reasoned that takeaway restaurants would cash in from consumers unable or unwilling to go out for a meal.
However, Domino's shares have been an absolute car crash over the last couple of years.
The stock has brutally plunged 69.4% since 10 September 2021.
Much of that has been the company's own doing with missed earnings targets.
However, the team at Morgans reckons perhaps that's enough punishment for the pizza maker.
"Our confidence is growing in an earnings recovery for this fast food giant," Morgans investment advisor Jabin Hallihan told The Bull.
"Early signs show a turnaround in the company's trading performance."
Even though inflation has been a major factor over the past 18 months, Hallihan reckons its retreat could act as a positive catalyst for Domino's.
"Despite wages growth headwinds, prior food inflation has reversed in most countries and cost-out plans are expected to sustain margins."
It seems some investors have already woken up to this, with the Domino's share price picking up more than 16% since a 15 June trough.
The ASX 200's biggest punching bag
Unlike Domino's, Lendlease Group (ASX: LLC) was never in the good books with investors.
The market has just never warmed to the building and investments company, with the current share price lower than it was 20 years ago.
Just over the most recent five years, Lendlease shares have lost in excess of 60% for investors.
Yikes.
However, Bell Potter private wealth advisor Christopher Watt reckons the coming projects could trigger a turnaround for the much-maligned stock.
"Our buy recommendation rests on the profitable delivery of the $17.9 billion development pipeline supporting a recovery in earnings," he said.
"We're positive on Lendlease, given the business is now approaching target returns in fiscal year 2024."
That massive amount of work will need capital though.
"We see a path to fund the pipeline via capital partnerships and asset sales."
One of the country's most prominent contrarian investors, Allan Gray chief investment officer Simon Mawhinney, last month called Lendlease a great investment because of the "discomfort" that investors will feel buying into it.
"Returns to Lendlease's shareholders have been spectacularly poor," he said.
"We believe there could be significant upside if Lendlease management is able to deliver on its targets and, in our opinion, relatively more modest downside if it doesn't."
