Despite the S&P/ASX 300 Index (ASX: XKO) being close to all-time highs, there are a few ASX value stocks that have been sold off. They could be opportunities to buy while many other investors have been selling.
Of course, an ASX share isn't a buy just because it has fallen. But, I'm expecting there could be a recovery for these businesses because they are currently going through a tough time but it's likely only temporary, in my view.
While this upcoming earnings season may not show a recovery yet, I think FY26 could be an important year for both of them following RBA cash rate cuts. There could be two or three rate cuts within the next 12 months, which could significantly help the customers of the following two ASX value stocks.
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Adairs Ltd (ASX: ADH)
Adairs is best known for the retail business of the same name, which sells homewares and furniture. It also owns other retail businesses, namely Focus on Furniture and Mocka, which are predominantly furniture retailers.
The Adairs share price is down 24% in 2025 at the time of writing, as the chart below shows, making it look much better value to me.
This share price decline of the ASX value stock was spurred by weaker profit margins because of elevated levels of promotional activity to stimulate sales. This was felt particularly in the Focus on Furniture business, which is expecting to report a 7% sales decline in FY25, leading to a 35.9% drop of underlying operating profit (EBIT) for that segment.
But, the other two businesses are seeing positive operating leverage. For FY25, Adairs segment sales is expected to have grown 9.2% with 21% underlying operating profit growth, while Mocka sales are projected to have risen 14.1%, helping Mocka's underlying operating profit grow 18.5%.
I don't think Focus on Furniture will see another large profit decline, particularly with the RBA rate cuts potentially unlocking an improvement in household spending.
According to the forecasts on Commsec, the Adairs share price is currently trading at under 9x FY26's estimated earnings with a possible grossed-up dividend yield of more than 10%, including franking credits.
Accent Group Ltd (ASX: AX1)
Accent is another ASX retail share, it's focused on retailing footwear and apparel. It owns a number of brands itself, such as The Athlete's Foot, Stylerunner, Glue Store and Platypus. The company also sells a number of global shoe brands including Ugg, Skechers, Vans, Hoka and Herschel.
The ASX value stock is also seeing a challenging retail environment, which has required higher levels of promotional activity to sell products to ensure a good inventory position. That's essentially why the Accent share price is down 37% this year (at the time of writing), as the chart below shows.
I'm optimistic that RBA rate cuts and the calming of inflation can help customer budgets.
Plus, the business continues to roll out new stores in the local market. The recent agreement with Frasers Group to roll out Sports Direct stores in Australia and New Zealand is particularly exciting, combined with gaining access to its brands such as Lonsdale, Everlast and Slazenger.
In FY26, the ASX value stock is scheduled to start working with the brands Dickies and Lacoste, which could help boost sales and profit generation.
According to the forecast on Commsec, the Accent share price is valued at under 10x FY26's estimated earnings with a possible grossed-up dividend yield of almost 11%, including franking credits.
