Buy these ASX shares before the rest of the market does

Analysts don't want you to miss out on these shares.

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Key points

  • A global gaming company specialising in both traditional casino and digital gaming is currently trading 27% below its 52-week high, offering a potential opportunity for long-term investors to capitalise on its strong cash flow and expansive digital strategy, with a favourable analyst rating.
  • A hotel commerce platform provider, facilitating extensive global reservations, presents a promising growth opportunity as the travel industry digitises, with its subscription model and high retention rates underpinning future success, as highlighted by a positive analyst outlook.
  • A pharmaceutical company focused on cancer radiopharmaceuticals is trading more than 50% below recent highs and analysts believe that its potential upside remains strong, particularly if regulatory hurdles are overcome.

Sometimes the best opportunities come when the market is looking the other way.

Right now, a handful of promising ASX shares are trading well below their recent highs or flying under the radar altogether. For investors willing to act early, that could spell opportunity.

Three that stand out and have been named as buys by analysts are listed below. Here's what they are recommending:

Light & Wonder Inc. (ASX: LNW)

Light & Wonder is a global leader in gaming content and technology, spanning land-based casino games, iGaming, and social gaming. The ASX share has been expanding its digital footprint, integrating its platforms, and building a robust pipeline of new titles.

Despite this, its shares are currently down around 27% from their 52-week high. For long-term investors, this pullback may be an opportunity to buy into a business with strong cash flow, global scale, and exposure to both physical and digital gaming growth. When sentiment turns, Light & Wonder could rebound sharply.

Macquarie is positive on the company and has an outperform rating and $180.00 price target on its shares.

Siteminder Ltd (ASX: SDR)

Siteminder could be an ASX share on the rise. Its hotel commerce platform connects accommodation providers to online booking channels, helping them manage reservations and maximise occupancy.

Already used by tens of thousands of hotels worldwide, its partner ecosystem is generating more than 130 million reservations worth over A$85 billion in revenue for its hotel customers each year.

But with a runway for further growth that is enormous, this number could rise materially as the travel industry digitises. Especially given its subscription-based model, high retention rates, and global ambitions. For investors who like to get in early, this may be a stock to buy before the broader market fully wakes up to its potential.

Macquarie is also a fan of this company and has an outperform rating and $8.11 price target on its shares.

Telix Pharmaceuticals Ltd (ASX: TLX)

Finally, Telix Pharmaceuticals could be an ASX share to buy. It develops and markets radiopharmaceuticals for diagnosing and treating cancer. Its flagship prostate cancer imaging product, Illuccix, has been approved in major markets and is already generating significant sales.

Yet Telix shares are currently down more than 50% from their 52-week high. Investors have become cautious about the biotech sector and have concerns over a number of recent US FDA setbacks for its new products. But if these prove temporary and approval is still received, today's price could look very cheap in hindsight.

Bell Potter thinks now would be a good time to invest. It has a buy rating and $23.00 price target on its shares.

Motley Fool contributor James Mickleboro 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, Macquarie Group, SiteMinder, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended Macquarie Group and SiteMinder. The Motley Fool Australia has recommended Light & Wonder and Telix Pharmaceuticals. 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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