3 of the best ASX shares to buy before they start to recover

The ASX 200 has dived since reporting season, so there are bargains to be picked up right now.

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Even though the prospect of an end to painful interest rates hikes seems very close, the S&P/ASX 200 Index (ASX: XJO) has depressingly dropped 5.8% since the start of the August reporting season.

But that means quite a few stocks representing quality businesses are trading at a discount, and it could be a golden opportunity to buy.

More than one expert is bullish on the share market heading into next year, and that could mean those shares could rise with the tide.

Here are three of the best ASX shares that have recently fallen off their perch that could surge again in 2024:

Three women athletes lie flat on a running track as though they have had a long hard race where they have fought hard but lost the event.

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This expert just bought these ASX shares

The good times of 2022 seems like another era now for insurance claims repairer Johns Lyng Group Ltd (ASX: JLG).

As the rain poured endlessly over eastern Australia last year, Johns Lyng had a mountain of repair work to get through.

But now that El Nino is here, perhaps the market reckons the company isn't quite as busy.

The Johns Lyng share price has now plummeted more than 35% since April 2022.

The company has been a long-time darling among professional investors, and that apparently hasn't changed despite the sell-off.

According to CMC Markets, eight out of 11 analysts that cover the ASX 200 stock reckon it's a buy right now.

The Motley Fool's Tristan Harrison is bullish on Johns Lyng Group and, in fact, put his money where his mouth is earlier this month.

"I invested $3,000 when the Johns Lyng share price was $5.79."

The brutal fact is that global warming will trigger more extreme weather events, and this will bring in business for a company like Johns Lyng.

'Stellar' reporting season with macroeconomics to improve

Mining is a notoriously cyclical industry, but a technology and services contractor to the industry like RPMGlobal Holdings Ltd (ASX: RUL) can have a smoother ride.

In fact, the RPMGlobal share price has rocketed 150% over the past five years, proving it's more of a growth stock.

Unfortunately, as the global economy has slowed over the past 12 months, so has the demand for these shares.

The RPMGlobal share price is now down more than 21% since 11 November last year.

But with China now trying to stimulate consumer spending and Western countries about to halt their rate hikes, 2024 could be much brighter.

Harrison called RPMGlobal's performance in the last financial year "stellar" and wondered why the company is not generating more buzz.

"Total revenue increased 18% to $98.4 million in FY23, while net profit after tax (NPAT) improved by $7.8 million to $3.7 million," he said.

"From now on, ongoing revenue growth should help accelerate net profit if margins keep increasing."

Both Moelis Australia and Veritas Securities analysts are rating RPMGlobal shares as a strong buy, reports CMC Markets.

Biotech giant has been punished too much

Is CSL Limited (ASX: CSL) considered a "boring" stock?

I guess if the critics mean making many investors wealthy over three decades, then yes, it is "boring".

While the long-term performance of the biotech stock has been incredible, the years since COVID-19 struck have been frustrating.

Despite blood donors returning after the pandemic, the CSL share price has struggled. It's currently hovering more than 23% lower than its pre-COVID peak in February 2020.

But it seems multiple experts now think the sell-off has been overdone.

DNR Capital chief investment officer Jamie Nicol is one of those, as he dismissed suggestions new GLP-1 weight loss drugs could eat into CSL's earnings.

"CSL has a small kidney dialysis business that will potentially be affected a little, but it's not much," said Nicol.

"So it's caught up in that bucket causing the stock to derate, yet its outlook looks very strong and defensive."

On CMC Markets, 14 out of the 17 surveyed analysts currently rate CSL as a buy.

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