2 beaten-down ASX shares to consider before they recover

These shares were sold off in 2025. Could they rebound in 2026?

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Share prices do not move in straight lines. Even high-quality ASX shares can fall sharply when sentiment shifts, expectations reset, or short-term issues dominate the narrative.

For long-term investors, those periods can be uncomfortable, but they can also create opportunities to look past the price chart and focus on the underlying business.

I think two ASX shares fit that description right now. Both are well established, both have been sold off heavily over the past year, and both still operate businesses with long-term relevance. They are as follows:

WiseTech Global Ltd (ASX: WTC)

WiseTech's share price fall has been dramatic, down more than 40% over the past 12 months, but the business it operates remains central to global trade.

At its core, WiseTech provides software that helps freight forwarders and logistics providers manage highly complex international shipments. That complexity is not going away. If anything, global trade is becoming more regulated, more data-driven, and more difficult to manage manually.

What has weighed on the share price is not a collapse in relevance, but a reassessment of growth expectations and valuation. After years of strong performance, the market has become far more cautious after management drama and product launch delays. That shift has been painful for shareholders, but it has also brought the company's valuation back to levels that long-term investors may find more reasonable.

WiseTech still benefits from deep customer integration, high switching costs, and a platform that becomes more valuable as it expands. If management executes its business model transformation successfully, its share price could re-rate significantly over the coming years.

REA Group Ltd (ASX: REA)

REA Group's shares have pulled back by 20% over the past 12 months. This pullback reflects softer property market conditions rather than a breakdown in its business model.

The company remains the dominant digital gateway for Australian real estate, controlling a platform that buyers, sellers, and agents continue to rely on. What has changed is activity. Lower transaction volumes and cautious sentiment have flowed through to earnings expectations, and the share price has adjusted accordingly.

What often gets overlooked during these periods is how embedded REA Group has become in the real estate ecosystem. Its value is not limited to listings alone. Data, analytics, agent services, and adjacent products have steadily increased its role across the property transaction process over the past decade.

As housing markets normalise, this ASX share does not need volumes to surge to recover. Even modest improvements, combined with its pricing power and product expansion, could support earnings growth over time. For investors willing to look through the cycle, the recent weakness may offer a more attractive entry point than has been available for some time.

Motley Fool contributor James Mickleboro has positions in REA Group and WiseTech Global. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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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