One of the most appealing things about the ASX share market is that share prices are always changing, giving investors the opportunity to buy growing, high-quality businesses. Volatile share prices can offer a buy-the-dip opportunity for certain S&P/ASX 200 Index (ASX: XJO) shares.
There are 200 different businesses in the ASX 200, so there is an enormous opportunity to find something that has been mispriced. When aiming for attractive returns, investors should always consider the price.That doesn't necessarily mean finding the lowest price/earnings (P/E) ratio, of course.
Let's take a look at two ASX 200 shares that the fund manager L1 likes.
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Viva Energy Group Ltd (ASX: VEA)
Viva Energy describes itself as a leading convenience retailer, commercial services and energy infrastructure business. It operates a retail convenience and fuel network of around 900 locations across Australia. The ASX 200 share supplies fuels and lubricants to a network of almost 1,500 service stations.
The company also owns and operates the Geelong refinery in Victoria, as well as operating businesses across bulk fuels, aviation, bitumen, marine, chemicals, polymers and lubricants.
L1 notes that the Viva Energy share price rose 16% in November as global refining margins continued to rise due to Russian trade sanctions and refinery closures, following relatively weak margins in the previous 12 months.
The fund manager believes that if current conditions persist, the earnings upside for the refining business would be "substantial", offsetting acquisition integration and market challenges in its convenience business.
L1 said that while the performance of the convenience business has been "disappointing", it should start to benefit in the 2025 second half from material acquisition synergies, as well as new and converted stores. Both of these benefits should help contribute to further earnings growth in 2026.
Light & Wonder Inc (ASX: LNW)
Another ASX 200 share that L1 highlighted is Light & Wonder, a cross-platform international gaming business that has a sizeable presence in the North American market. Light & Wonder also offers digital game content. It's a sizeable player in the gambling market.
The fund manager noted that the Light & Wonder share price soared 40% in November after reporting a strong set of third-quarter numbers, while also re-iterating its full-year earnings guidance.
The Light & Wonder share price also benefited from the completion of the NASDAQ delisting and shift to a sole priming listing on the ASX, which saw the end of significant forced selling by US passive share investors.
L1 believes that the ASX 200 share is "well placed to deliver solid earnings growth over the medium-term, driven by its strong land-based game performance."
