Amid all of the volatility of the last few months and years, I think there are plenty of ASX shares that could be excellent opportunities because of their cheaper prices.
ASX shares that decline aren't always going to go back up, but I believe some businesses are more cyclical than others and therefore more likely to bounce back when conditions improve.
While the two stocks below aren't the biggest positions in my portfolio, I'm optimistic about their future, particularly at the current prices.
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Elders Ltd (ASX: ELD)
Elders is described by the broker UBS as a business that provides access to products, marketing options and specialist technical advice across rural, agency and financial product and service categories. It's also a leading Australian rural and residential property agency and management network, which includes company-owned and franchise offices.
The Elders share price has fallen by more than 30% from 13 September 2024 and more than 50% from 22 April 2022, as the chart below shows.
Agriculture is famously a cyclical industry and Elders is heavily involved in Australia's farming sector in various ways. I think there is good scope for the ASX share to bounce back when conditions improve for Elders. Elders' FY24 was hampered by declining livestock prices, lower crop protection gross margin and subdued client sentiment.
The company said at its AGM that it's seeing a return to "average seasonal conditions" and debtor collection in-line with expectations. It has made a number of bolt-on acquisitions to boost its scale and I think this could help its profit bounce back further.
According to the estimates from UBS, the Elders share price is valued at 10x FY25's estimated earnings. I think this is a good time to invest in the ASX share.
Centuria Capital Group (ASX: CNI)
This business is one of the largest property fund managers on the ASX. It's the operator of the real estate investment trusts (REITs) including Centuria Industrial REIT (ASX: CIP) and Centuria Office REIT (ASX: COF).
I think this ASX share has been impacted heavily by high interest rates. Not only has this impacted property prices, but it has also likely reduced how much money clients have given Centuria to manage during the last three years.
The RBA has already cut interest rates in 2025 and it seems very possible that the Australian central bank could cut again soon because inflation has reduced to under 3%, which is within the RBA's target range.
While we shouldn't focus too much on interest rates for most businesses, I think rate cuts could be particularly beneficial for Centuria because of how negative the higher interest rates have been.
