The two ASX 200 shares have underperformed the market over the past 12 months by a decent margin.
While this is disappointing for shareholders, it could be a buying opportunity for others according to Red Leaf Securities.
Let's see what the broker is saying, courtesy of The Bull, about these popular names:
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WiseTech Global Ltd (ASX: WTC)
The team at Red Leaf Securities has named this logistics solutions software company's shares as a buy this week.
While the broker acknowledges that volatility is high in the near term, it believes the long term remains very positive. Particularly with its shift to transaction-based pricing. It explains:
WiseTech remains an appealing long term buy despite near term volatility. Strong demand for its CargoWise platform and the shift to transaction-based pricing should expand recurring revenue. The $US2.1 billion acquisition of e2open broadens WiseTech's global logistics footprint and customer base, creating meaningful cross-selling opportunities.
With supply chains under pressure to digitise, WiseTech is well positioned as an artificial intelligence-driven software leader. The recent pull-back provides an attractive entry point into a market leader with structural growth tailwinds, strong margins and proven scalability. The company is forecasting strong revenue and earnings growth in fiscal year 2026.
Woolworths Group Ltd (ASX: WOW)
Another ASX 200 share that has been beaten down is supermarket giant Woolworths.
This could be a buying opportunity according to Red Leaf Securities, which believes that recent share price weakness has been an overreaction.
It likes the company due to its defensive qualities and feels it is well positioned to benefit as shopping shifts online. The broker commented:
In our view, investor reaction appears excessive. The company remains Australia's leading supermarket chain, benefiting from brand equity, scale and defensive characteristics that support earnings resilience. Investments in digital and e-commerce position Woolworths for structural growth as consumer habits shift online.
Cost pressures should ease as inflation moderates, supporting margin recovery. Strong cash flow, a healthy balance sheet and consistent dividends make WOW appealing for income-focused investors. The share price offers an attractive entry point into a defensive staple with long term growth levers and reliable shareholder returns.
Foolish takeaway
Both WiseTech Global and Woolworths are high quality companies that are going through a rough patch.
But history shows that buying quality ASX shares when they are out of favour can lead to outsized returns in the future. As a result, this could make them worth considering at current levels.
