Is the 2025 ASX share selloff your chance to buy generational bargains?

These shares don't often trade at such a discount.

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Key points

  • CSL's significant discount presents a rare opportunity for those with a long-term view, as the biotech giant continues to focus on plasma-based therapies despite recent hurdles.
  • TechnologyOne, a steadfast performer with a strong SaaS transition, is offering an attractive entry point with its shares down considerably, amidst ongoing growth and consistent dividend increases.
  • Despite its volatile share price, Xero remains a robust player in cloud accounting, continuing to grow its subscriber base and improve margins, making it a compelling buy at its current valuation.

If you've been watching the ASX lately, you will know it has been a bruising few months. Fears of an overheating AI boom, shifting interest rate expectations, and slowing consumer demand have sparked a sharp market pullback, the kind that makes even experienced investors a little uneasy.

But it is important to remember that every major selloff in Australian market history has eventually turned into an opportunity.

The GFC, the COVID crash, the late-90s wobble, all of them looked terrifying in the moment, yet long-term investors who stepped in during the panic ended up miles ahead.

And right now, several of Australia's highest-quality ASX shares have fallen so far from their highs that they are starting to look like potential generational buying opportunities.

Three of them that stand out are named below.

CSL Ltd (ASX: CSL)

Few companies on the ASX have delivered long-term performance like CSL, but 2025 has been a rough year. The biotech leader is trading around 38% below its 52-week high, weighed down by regulatory uncertainty, slower-than-expected margin recovery at its Behring division, and noise around the planned separation of its Seqirus vaccines arm.

Yet none of these issues change CSL's core strength. It remains one of the world's most important plasma-based therapy companies, serving a global patient base and backed by decades of scientific expertise. Demand for immunoglobulins and specialty therapies continues to grow, and the company is investing heavily in US plasma collection to boost long-term supply.

CSL has built a reputation on delivering earnings growth through thick and thin. A discount of this size doesn't come around often, and for patient investors, it could prove to be a rare opportunity.

TechnologyOne Ltd (ASX: TNE)

Despite delivering resilient recurring revenue growth in FY 2025 and expanding its software-as-a-service customer base, the company's share price is now 31% below its 52-week peak.

TechnologyOne is one of the most dependable tech businesses in the country. Its software is deeply embedded in universities, councils and government departments, and its transition to a pure SaaS model has driven years of earnings upgrades, stronger margins, and recurring revenue. It has also increased its dividend every year for more than a decade, a rarity for a tech company.

And with management believing that it can double in size every five years, this could present one of the most attractive entry points in years.

Xero Ltd (ASX: XRO)

The market's renewed nerves around global tech have hit Xero hard, sending the cloud accounting star around 40% below its 52-week high. But while its share price has been volatile, the business itself continues to fire.

Xero now serves 4.59 million subscribers and generates NZ$2.7 billion in annualised monthly recurring revenue.

Its focus on improving margins and lifting operating leverage has strengthened its financial position, while new products and deeper platform integration continue to boost customer lifetime value.

And with an estimated total addressable market (TAM) of 100 million businesses, its future looks very bright. This could make now an opportune time to pick up shares for the long term.

Motley Fool contributor James Mickleboro has positions in CSL, Technology One, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Technology One, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended CSL and Technology One. 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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