ASX large-cap shares can be great investments due to their strong position in their industry and ability to deliver large profits.
With the S&P/ASX 200 Index (ASX: XJO) regularly hitting new all-time highs, it may be difficult to find investments that seem attractively priced.
But, there are a few areas of the market that look appealing.
I'm going to discuss two ASX large-cap shares that have seen their share prices decline over the past year, but their futures look promising.
Sonic Healthcare Ltd (ASX: SHL)
Sonic is a large, global pathology business with a presence in countries such as Australia, the USA, Germany, the UK, Switzerland and so on.
Over the past year, Sonic Healthcare's share price has fallen by 12%, compared to a 12% rise for the ASX 200.
It's understandable why the company has fallen due to a few factors, including inflation of costs and the loss of COVID-19 testing revenue.
But, I believe there are a number of positives that can help the company over the long-term. I'll mention a few of them now.
Sonic has made several acquisitions in Europe, particularly in Switzerland and Germany, to enhance its scale and presence in those regions. Sonic is currently working on unlocking synergies.
The ASX large-cap share has made equity investments in AI businesses, with those AI services potentially capable of improving Sonic's service and efficiencies.
The last thing I'll point to is the ongoing solid organic base business revenue growth – in FY24 the growth rate was 6%.
According to the estimates on Commsec, the Sonic Healthcare share price is valued at under 22x FY26's estimated earnings with a forecast dividend yield of 4% (excluding franking credits).
Rio Tinto Ltd (ASX: RIO)
ASX iron ore shares can be opportunities when there is a significant weakness regarding the iron ore price. In 2024 to date, the Rio Tinto share price is down close to 20%.
Commodities can be cyclical opportunities if we buy when prices are low (and possibly sell when prices are higher).
There is no financial rule to say when the next rebound of the iron ore price will be, or by how much the price will rise.
However, there are some optimistic signs of a potential turnaround with President Xi Jinping urging China to strive to "achieve its annual economic and social development goals and tasks", raising market hopes for further stimulus, according to Trading Economics. It's also possible that China may soon cut interest rates for trillions of dollars of mortgages.
I'm also attracted to Rio Tinto's efforts to grow its copper exposure, which could be one of the most important commodities in the coming years because of its usage in things like electric vehicles and renewable energy.
The ASX large-cap share is valued at 10x FY26's estimated earnings with a possible fully franked dividend yield of 5.7% in FY26.
