ASX 200 shares hit a speed bump in April, but otherwise have largely performed well in the last year.
At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has risen almost 8% over the last 12 months.
When the stock market flirts with record highs (like right now) it can feel difficult to find value.
However, there are some ASX 200 shares that haven't enjoyed the same success.
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Reece Ltd (ASX: REH)
Reece is a supplier of plumbing, bathroom, heating ventilation, and air-conditioning products. The company's activities include importing, wholesaling, distribution, marketing, and retailing.
This ASX 200 share is down roughly 51.43% over the last year.
Management attributed some of its operational slump to continued soft volumes in Australia and New Zealand, noting that recent rate cuts are yet to result in improved housing activity.
However, interest rates are expected to continue falling which could provide tailwinds to a company like Reece.
Lower interest rates are associated with increased household spending. In low rate environments, consumers may be more likely to invest in home renovations/upgrades etc with cash that is freed up from lower mortgage repayments.
Furthermore, new data from the Australian Bureau of Statistics shows total home building approvals jumped by 11.9% in June, marking the strongest monthly result since August 2022.
This could also be positive news for Reece Ltd. which could be set to benefit from increased construction of new dwellings.
Based on price targets out of brokers, it seems these ASX 200 shares may have been slightly oversold and now represent a value.
Last month, Macquarie placed a price target of $14.50 on the company.
Meanwhile, Bell Potter has a price target of $14.85.
Both price targets suggest an upside between 6-9% from current levels for this ASX 200 share.
Mineral Resources Ltd (ASX: MIN)
Mineral Resources is a leading mining services company with operations in lithium, iron ore, energy and mining services across Western Australia.
Its mining services segment provides pit-to-port services to clients across Western Australia and the Northern Territory.
Unfortunately for holders over the last 12 months, this ASX 200 share price has fallen almost 47% in that span.
This has largely been on the back of falling iron ore and lithium prices over the past year.
According to Reuters, lithium prices have fallen more than 90% in the past two years. This is due in part to oversupply in China, fuelling layoffs, corporate buyouts and project delays across the globe.
But for bargain hunters there could be reason for long term optimism for this ASX 200 share.
While lithium prices are unlikely to surge in the immediate future – thanks to lingering oversupply and weak spot dynamics – fundamental demand remains strong.
Forecasts suggest prices will begin to rebound toward year-end or into 2026 as inventory shrinks and cutoff production takes effect.
Mineral Resources shares fell to as below $15 a share in April. Therefore its important buyers realise this may not be rock bottom.
But continued growth in global electric vehicle and battery energy storage systems could fuel a rebound in the future.
While this isn't Mineral Resources' only focus, it could be set to benefit should global lithium prices rebound.
