'Buying opportunity': 3 punished ASX 200 shares to buy for a roaring comeback

Here's a trio of stocks that you can buy for cheap right now to boost your long-term returns.

You pounce on discounted toothpaste at the supermarket and jeans on sale at the department store, so why wouldn't you do the same for stocks?

The cheaper you buy, the better the returns. It's simple maths.

So here are three S&P/ASX 200 Index (ASX: XJO) stocks that experts have flagged as buys this week:

A man in business suit wearing old fashioned pilot's leather headgear, goggles and scarf bounces on a pogo stick in a dry, arid environment with nothing else around except distant hills in the background.

Image source: Getty Images

Long-term investors must take advantage of 'weakness'

ASX lithium shares have been in the doldrums this year, all because of a struggling global economy pushing down demand.

Catapult Wealth portfolio manager Tim Haselum reckons this presents a golden investment window.

"The lithium price has been tracking down and the bottom may not have been reached," Haselum told The Bull.

"But on a long-term view, this weakness presents a buying opportunity given the strong electrification theme."

His lithium pick is Pilbara Minerals Ltd (ASX: PLS), which has seen its share price fall nearly 34% since 10 August.

Haselum's advice is to jump on Pilbara shares as soon as the momentum turns.

"Investors may want to consider accumulating on upwards momentum."

Nine out of 18 analysts currently rate Pilbara Minerals as a buy, according to CMC Invest.

'A brighter outlook' when rates stop rising

Red Leaf Securities chief executive John Athanasiou's bargain pick is online real estate classifieds provider Domain Holdings Australia Ltd (ASX: DHG).

The ASX 200 stock has plunged almost 20% since 11 August.

Athanasiou reckons it's all upside from here.

"Property prices have recovered from their post COVID-19 dip," he said.

"In our view, we're likely to see stable interest rates, which we expect will support consumer confidence."

Of course, the end of rate hikes is always a boon for the real estate sector.

"We anticipate increasing property listings moving forward, which paints a brighter outlook for Domain Holdings Group."

Chugging along while the board members fight

A board battle has meant alcohol retailer and hotels operator Endeavour Group Ltd (ASX: EDV) has been in the headlines for all the wrong reasons.

And this shows in the stock price, now hovering 28.5% lower than mid-February.

But the business itself is going fine, as far as Haselum is concerned.

"The company delivered sales growth in retail and hotels in the first quarter of fiscal year 2024."

After the fall in valuation this year, he feels like these ASX 200 shares can only head in one direction next year.

"We believe Endeavour presents decent value as downside risk appears to have been already priced into the shares," he said.

"A weaker Australian dollar and softer share price could see overseas investors start to show some interest in Endeavour."

The company is well-liked among professional investors, with CMC Invest showing nine out of 12 analysts currently rating Endeavour a buy.

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.

More on Cheap Shares

A woman in her late 30s holds her hands out either side with the palms up as if indicating she doesn't know the answer to a question.
Cheap Shares

Treasury Wine Estates vs Temple & Webster: Which beaten down ASX stock is better value?

Treasury Wine Estates and Temple & Webster have both tumbled, but I think one offers more compelling value for a…

Read more »

Stressed businessman sits in panic amid digital stock market financial background.
Cheap Shares

3 ASX shares down 40% to 80% I'd buy on the cheap

I look at three beaten-down ASX growth shares that have caught my attention after a difficult year.

Read more »

Red arrow going down on a stock market table which symbolises a falling share price.
Cheap Shares

2 cheap ASX shares near 52-week lows I'd buy today

I think this is a wonderful time to invest in these undervalued stocks!

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Cheap Shares

2 ASX shares down over 50% that I would buy

I take a closer look at two fallen growth shares I would be comfortable buying today.

Read more »

Buy now written on a red key with a shopping trolley on an Apple keyboard.
Cheap Shares

2 ASX shares tipped to grow 30% or more in the next 12 months

These stocks are expected to deliver great returns…

Read more »

Two kids are selling big ideas from a lemonade stand on the side of the road for cheap!
Cheap Shares

2 cheap ASX shares near 52-week lows I'd buy today

I think these stocks are trading far too cheaply!

Read more »

Red buy button on an Apple keyboard with a finger on it.
Cheap Shares

2 ASX shares highly recommended to buy: Experts

These businesses are well-liked by analysts…

Read more »

A stressed businessman sits next to his briefcase with his head in his hands, while the ASX boards behind him show shares crashing.
Cheap Shares

These ASX 50 shares have lost up to 60%. Is the sell-off overdone?

Battered ASX shares: bargain buys or value traps in disguise?

Read more »