ASX investors are always on the lookout for S&P/ASX 200 Index (ASX: XJO) stocks with substantial upside.
With the ASX 200 Index sitting not too far from its all-time high, investors may be struggling to find value in an expensive market.
Indeed, many ASX 200 companies across various sectors are trading at record highs. These include banking giant Westpac Banking Corp (ASX: WBC), technology stock Life 360 Inc (ASX: 360), and gold mining company Newmont Corporation CDI (ASX: NEM).
Conversely, ASX 200 financials stock GQG Partners Inc (ASX: GQG) has been under pressure in recent times, with the stock declining more than 40% over the past year.
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Is GQG Partners attractive or a value trap?
Market volatility is normal. Share prices move up and down all the time, triggered by a broad based sell off, a large shareholder offloading their holding, or a negative broker report.
However, when an ASX 200 company falls significantly in one year, investors must question why before buying the stock.
A decline of 40% in just one year certainly fits that category.
Last week, GQG Partners posted an update, which revealed a snapshot of its funds under management (FUM) as of the end of September.
The company reported Funds under management (FUM) of US$167.2 billion as at 30 September 2025, following net outflows of $1.7 billion for the month.
Management attributed recent outflows and portfolio underperformance to ongoing defensive positioning in a challenging macro environment.
Following this update, Macquarie Group Ltd (ASX: MQG) retained its outperform rating but reduced its price target slightly from $2.55 to $2.50.
However, given that shares closed at $1.56 yesterday, this suggests around 70% upside from here including capital gains and dividends.
Macquarie cited the company's portfolio positioning and high dividend yield to justify this price target, writing:
EPS is underpinned by a resilient FUM base given fund positioning. GQG also has an attractive 1-yr fwd yield of 13.5%.
Foolish Takeaway
With the ASX 200 sitting not too far above its all-time high, Macquarie sees GQG Partners as an attractively valued ASX 200 stock in an expensive market. The company's focus on defensive positioning has caused it to significantly underperform the market. Due to its significant share price decline, GQG Partners shares now offer a forward dividend yield of 13.5%. Those after both strong capital gains and a high dividend yield should consider GQG Partners.
