The final few months of the year often bring fresh momentum to the share market. And sometimes, beaten-down but high-quality ASX shares are the ones that bounce back hardest when sentiment shifts.
Two such names on my radar are CSL Ltd (ASX: CSL) and WiseTech Global Ltd (ASX: WTC). Both have been sold off heavily from their highs, yet their fundamentals remain strong. I think that combination makes them compelling picks for a potential year-end breakout.
CSL
CSL has long been considered one of Australia's crown jewels. The biotech giant operates a plasma therapy business and influenza vaccine division that serve millions worldwide. It has a strong track record of growth, underpinned by innovation and a global footprint.
Yet CSL shares are currently sitting at a 52-week low. Investors have been spooked by short-term earnings pressures and margin concerns. But it is worth remembering that CSL has faced headwinds before and always found ways to emerge stronger.
The ASX share continues to expand its plasma collection network, roll out new therapies, and invest in research to strengthen its pipeline. It also recently announced a potential future acquisition earlier this week.
These are the building blocks for long-term growth. And when sentiment shifts back in favour of CSL, the rebound could be swift.
WiseTech Global
WiseTech is another high-quality ASX share trading well below its peak. The logistics software leader provides mission-critical solutions that help freight forwarders and supply chains operate efficiently across the globe. Its flagship CargoWise platform has become deeply embedded in the industry.
Despite delivering consistent revenue growth and expanding its global customer base, WiseTech's share price has come under pressure in recent months. Concerns about short-term growth rates have weighed on investor confidence.
But like CSL, WiseTech's long-term outlook remains incredibly bright. Supply chain digitalisation is a global megatrend, and WiseTech is arguably the best-positioned player in this space. Especially after the recent acquisition of E2Open.
With sticky customers and a scalable business model, it has the potential to generate years of compounding growth.
Foolish takeaway
I believe both CSL and WiseTech will be reminders that quality stocks don't stay down forever. Market sentiment may ebb and flow, but the fundamentals of these businesses remain intact.
For investors looking to position themselves for a year-end breakout, these two ASX shares could be smart buys.
