Down 40% for the year: two shares I'd buy today

The shares have plunged over the past 12 months, but I still think there is opportunity ahead.

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The S&P/ASX 200 (ASX: XJO) has opened the day in the red on Wednesday morning. While the index is down 0.15% today, it is still 5.98% higher than this time last year, at the time of writing/

But there are some ASX 200 shares which haven't fared so well over the past 12 months.

The Domino's Pizza Enterprises Ltd (ASX: DMP) share price is trading 0.16% lower after the ASX opened this morning, at $18.28. Domino's shares are 43.23% lower than a year ago.

The fast food pizza operator recorded a drop in earnings before interest and tax (EBIT) and lower network sales for the H1 2025. This was followed by an announcement of an impending leadership shakeup. In May the business announced that its ANZ CEO will step down in August 2025. 

Over in the travel sector, the Flight Centre Travel Group Ltd (ASX: FLT) share price has endured a similar decline. The share price is 1.49% higher on Wednesday morning at $12.93. But over the year, shares are trading 40.03% lower.

The travel operator has been hit by fierce competition from online travel agencies and changing market dynamics. The company's traditional business model came under pressure and it has struggled to adapt. Investor confidence dwindled as a result, bringing share value down with it.

But while the past 12 months might not paint a positive picture for Domino's and Flight Centre shares, it looks like change might be afoot.

A slice of momentum for Domino's

According to Tradingview data, all 7 out of 16 analysts hold a buy or strong buy rating on Domino's Pizza shares. Another 7 analysts have a hold rating on the stock.

The average 12-month target price is $22.77 and the maximum is $42.00 cents. This represents a potential 40% to 67% upside from time of writing.

Top broker Ord Minnett recently upgraded its rating on Domino's Pizza shares to a buy, and revised its 12-month price target down to $28, from $31 previously.

The broker said the company's recently smashed valuation following news of the CEO's resignation makes it a good time to buy.

The team at Morgans also sees the ASX 200 share as a buy and has a $29.40 price target. The broker is pleased with the company's response to the shock exit of its CEO and maintains a positive stance on the stock.

Flight Centre could travel higher

Flight Centre downgraded its FY 2025 profit guidance to between $300 million and $335 million in April. The business cited shorter-term volatility spurred by uncertain trading conditions.

But the business said it is still on track to deliver a record total transaction value in FY 2025. 

The results didn't dampen analyst outlooks. According to Tradingview data, all 13 analysts hold a buy or strong buy rating on Flight Centre shares. The consensus view is a 12-month price target of $16.46, while the maximum price target assigned is $20.75.

Considering average to most optimistic, this represents between 27.3% and 60.5% upside for investors at time of writing.

Earlier this month Macquarie Group confirmed its outperform rating on Flight Centre shares but lowered its 12-month price target to $16.05, down from $16.20 previously. Given that Flight Centre shares opened at $12.93 this morning, this still suggests a 24% upside from here. 

While several headwinds are likely to continue affecting the business over the medium term, Macquarie thinks that Flight Centre shares are now attractively valued. 

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Domino's Pizza Enterprises. The Motley Fool Australia has recommended Domino's Pizza Enterprises and Flight Centre Travel Group. 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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