Brokers say buy the dip on these 3 biggest ASX share fallers of earnings season

Investors punished these companies with 10%-plus share price drops post-results. Should you buy the dip?

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Eleven S&P/ASX 100 Index (ASX: XTO) shares got a 10% or more price bashing within two days of their financial reports last month.

Macquarie says these companies experienced the sharpest share price falls of earnings season last month.

Does this present an opportunity to buy the dip?

Here are some expert opinions on three of the biggest ASX 100 fallers.

3 ASX shares that took a big tumble post-results

Light & Wonder Inc CDI (ASX: LNW)

The Light & Wonder share price is $134.26 at the time of writing, down 1%.

Light & Wonder reported an 8% lift in net profit after tax and amortisation (NPATA) to US$252 million in its half-year FY25 results.

The ASX consumer discretionary share fell 13% within two days of the report.

Light & Wonder shares have since recovered by 13%.

Macquarie has an outperform rating on this ASX retail stock with a 12-month share price target of $180.

The broker said:

Light & Wonder expects a sole primary ASX listing by the end of November 2025 and will delist from the NASDAQ.

The company will remain domiciled in the US continuing to report quarterly.

With Australia set to take price discovery, using Aristocrat Leisure Ltd (ASX: ALL) as a valuation proxy trading on 26x 12m fwd P/E, Light & Wonder may be worth A$295/sh, 120% upside (vs. 12.5x P/E currently), albeit a valuation discount is likely.

QBE Insurance Group Ltd (ASX: QBE)

The QBE share price is currently $21.05, up 1.3%.

QBE reported a statutory net profit after tax (NPAT) of $1.022 billion, up 27% for 1H FY25.

The ASX financial share fell 10.5% over the next two days of trading.

QBE shares have since recovered by 0.2%.

Analysts at Citi viewed the sell-off as an overreaction.

The team maintained its buy rating on this ASX financial share with an improved price target of $26.20.

In its latest note, the broker highlighted that QBE Insurance's catastrophe (CAT) allowance appeared conservative.

This could mean positive outcomes despite higher-than-average rates of global CAT.

Amcor CDI (ASX: AMC)

The Amcor share price is currently steady at $12.40.

The global packaging giant reported a 43% jump in net sales to US$5,082 million, with EBITDA also up 43% to US$789 million in 4Q FY25.

The ASX materials share declined 12.4% over the next two days.

The stock has since fallen a further 6%.

Amcor is now among 10 ASX 200 shares trading on a forward price-to-earnings ratio below the market average.

According to Macquarie data, the current market average is 20.1x, whilst Amcor shares are trading on 10.4x.

That's a mighty 3.3 standard deviations lower than the Amcor share price's historical norm.

Bell Potter has a buy rating on the ASX materials share.

The broker explains:

The investment thesis for Amcor is based on its transformative merger with Berry Global, which positions the company for a period of significant growth and quality improvement.

The merger is expected to drive two years of double-digit EPS growth, fuelled by an estimated $590 million in synergies, with 80% anticipated to be realised within the first 24 months.

Beyond the near-term earnings growth, the merger also creates a more resilient and less cyclical business by increasing its exposure to the defensive home & personal care and pharmaceutical sectors.

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen 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 Light & Wonder and Macquarie Group. The Motley Fool Australia has positions in and has recommended Amcor Plc and Macquarie Group. The Motley Fool Australia has recommended Light & Wonder. 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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