Buy low candidates: Two of the worst-performing ASX 200 stocks this year

Looking for undervalued stocks? Here are two to consider.

| More on:
Three business people stand on platforms in the desert and look out through telescopes.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • James Hardie Industries and Guzman y Gomez are two of the worst-performing ASX 200 stocks this year. 
  • Both have fallen by more than 40%.
  • While past struggles are significant, these ASX 200 stocks' recent performances suggest possible long-term value, highlighting the importance of considering both market winners and undervalued opportunities.

Much of my time as an investor is spent reading about S&P/ASX 200 Index (ASX: XJO) stock market winners, wishing I'd invested in Nvidia five years ago, and panicking over tariffs. 

But the truth is, success comes from buying solid companies at a relative value and holding for the long term

So while it's fun to speculate on a pre-profitable penny stock going to the moon, it's probably a more valuable use of time to look at blue-chip companies that offer value. 

While there's no guarantee these companies bounce back, here are two well-known ASX 200 companies that have fallen the most in 2025 and could present a buy-low opportunity. 

James Hardie Industries plc (ASX: JHX)

James Hardie is the world's leading producer and marketer of fibre cement building products. It is also a major supplier of fibre gypsum and cement-bonded boards in Europe. 

Its share price has tumbled more than 42% in 2025. 

This included a single-day drop of 27% back in August, following the company's first-quarter FY26 results. 

However, there is reason for optimism, as this ASX 200 stock saw a 9% recovery last week following its Q2 FY26 results.

The company posted a 34% increase in net sales over the prior corresponding period, and EBITDA rose 25%. 

Recent analysis from brokers suggests that this blue-chip stock may be significantly undervalued following its challenging year. 

The team at Morgans has a $35.50 price target on this ASX 200 stock. 

From yesterday's closing price of $28.78, this indicates an upside of approximately 23%. 

Guzman Y Gomez Ltd (ASX: GYG)

Everyone's favourite on-the-go burrito chain has seen its stock price almost cut in half in 2025. 

Earlier this year, this ASX 200 stock hit yearly highs of more than $45 per share. 

Last week, Guzman y Gomez shares hit an all-time low of $21.89 a piece. 

Today, shares are hovering around $22. 

Overall, year to date, Guzman y Gomez shares have fallen 45%. 

So could these shares be a bargain? Or should investors stay away?

It seems the fall in share price is more about investor sentiment than financial concern. 

It has consistently been one of the most shorted stocks on the ASX this month. 

However, back in August, the restaurant operator reported its FY25 results. It posted a 23% year-on-year increase in global reported sales. It also recorded a 45.5% increase in EBITDA, and a 151.8% surge in net profits after tax (NPAT). 

Last month, analysis from Macquarie indicated that market expectations were overly re-based, with the current share price offering an attractive entry point. 

The broker suggested the stock price was inflated post-IPO, and this has now been overcorrected. 

Macquarie initiated coverage with a price target of $31.10.

This indicates an upside of 41.56%. 

Foolish Takeaway

It's important that investors are aware that struggling stocks like these are struggling for a reason. 

There may not be a magical turnaround. 

However, it's worthwhile for investors to monitor not only share market winners, but also stocks that may present long-term value. 

Motley Fool contributor Aaron Bell 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 Macquarie Group and Nvidia. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Blue Chip Shares

Little girl with big glasses on a laptop with a big smile on her face.
Blue Chip Shares

Top 3 ASX 200 blue-chip shares to invest in right now

Defensive earnings, scale, and long-term relevance matter more than chasing market trends.

Read more »

asx blue chip shares represented by pile of blue casino chips in front of bar graph
Blue Chip Shares

2 beaten-down ASX blue-chip tech shares I'd buy today

2 oversold ASX tech blue chips stand out as long-term opportunities after sharp sell-offs.

Read more »

A group of people in suits watch as a man puts his hand up to take the opportunity.
Blue Chip Shares

The ASX blue chip shares I'd trust with my money

Do you have money to invest? Here are three blue chips you can trust.

Read more »

Increasing stack of blue chips with a rising red arrow.
Blue Chip Shares

2 ASX blue-chip shares offering big dividend yields

I’m backing these two businesses as appealing dividend stocks.

Read more »

Green arrow going up on stock market chart, symbolising a rising share price.
Blue Chip Shares

3 ASX 200 shares this fund manager says are buys for 2026

These stocks could be the best blue-chips to own.

Read more »

Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today
Blue Chip Shares

3 ASX blue-chip shares I'd buy with $10,000 right now

These stocks are among Australia’s biggest businesses and have a good outlook.

Read more »

Happy work colleagues give each other a fist pump.
Blue Chip Shares

Where to invest $5,000 in ASX 200 shares to try and beat the market

Let's see what makes these shares potential market-beaters.

Read more »

Happy man on a supermarket trolley full of groceries with a woman standing beside him.
Blue Chip Shares

Are Woolworths shares a blue-chip buy?

Would I buy this supermarket giant's shares? Here's my verdict.

Read more »