As we have seen this week with some heavy declines, earnings season can be brutal for ASX investors.
But while the selling can be unnerving, it can also be an opportunity for investors to snap up Australian stocks while they are down in the dumps.
With that in mind, let's take a look at three Australian value stocks that could be buys while everyone else is selling. They are as follows:
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CSL Ltd (ASX: CSL)
The biotechnology giant's shares came crashing down to earth last week following the release of its full year results.
The team at Morgans thinks that this has been overdone and created a very attractive buying opportunity for investors. It said:
As widely anticipated, CSL flagged a restructuring, streamlining R&D and commercial productivity, targeting US$500m pre-tax savings by YE28, but surprised with Seqirus demerger and multi-year share buyback (US$500m FY26). While investors have taken a glass half full approach, we believe the restructuring augments, not masks the underlying business, with streamlining operations and cost savings supporting double-digit earnings growth over the medium term.
Morgans has a buy rating and $293.83 price target on CSL's shares.
HMC Capital Ltd (ASX: HMC)
Another Australian stock that has been sold off is investment company HMC Capital.
Morgans also thinks that this could be an opportunity for investors to snap up shares on the cheap. It said:
We see a conclusion to Healthscope negotiations (c.2H26) would put a floor on HCW; a material lease could get DGT back ontrack: while a sell-down and de-gearing of the Energy Transition Fund would provide external validation of value – all critical in restoring investor faith. At $3.27/sh, HMC screens cheap on both a multiple of earnings basis and relative to book value. The current price essentially implies that HMC is ex-growth with a questionable NTA – a view we do not share.
Last week, Morgans upgraded its shares to a buy rating with a $4.20 price target.
James Hardie Industries PLC (ASX: JHX)
Finally, this building products company's shares were hammered again last week.
The team at Macquarie thinks that this could be a good opportunity for investors to buy this Australian stock. It said:
Outperform. Market conditions are tough, but we think an evolving AZEK integration story, a slow bottoming of markets, and another material price correction are in support of a reassessment. Balance sheet risks are elevated, but covenant pressure still seems manageable.
Macquarie has put an outperform rating and $36.90 price target on its shares.
