The 3 best undervalued ASX shares I'd pick up in January

3 high-quality ASX shares look undervalued as short-term concerns create potential long-term opportunities.

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As we move into 2026, some high-quality ASX companies are trading well below their previous highs. In some cases, short-term concerns have pushed share prices lower, even though the underlying businesses continue to perform well.

For investors looking for value, several well-established companies now appear mispriced by the market.

Here are 3 ASX shares that stand out as undervalued as January draws to a close.

Wisetech Global Ltd (ASX: WTC)

Wisetech is a global leader in logistics software, used by freight forwarders and supply chain operators worldwide. Its platform is deeply embedded in customer operations, creating sticky, recurring revenue.

Despite that strong position, the share price has fallen sharply. Wisetech shares are trading around $67, well down from their 2025 highs.

Several brokers believe the market has become too pessimistic. Consensus price targets sit well above current levels, with some estimates around $100 to $110, pointing to meaningful upside if growth expectations stabilise.

The recent sell-off was driven by softer near-term guidance and investor concerns around governance. However, the long-term outlook has not changed. Global trade volumes continue to grow over time, and logistics software remains essential.

If earnings momentum improves, Wisetech shares could recover strongly from current levels.

Pro Medicus Ltd (ASX: PME)

Pro Medicus provides medical imaging and radiology software to hospitals and imaging groups across the US, Europe, and Australia.

The company has delivered strong long-term growth, but the share price has since pulled back. Shares are trading around $203, below broker expectations.

Broker sentiment remains positive. Average price targets are above $320, reflecting confidence in ongoing contract wins, high margins, and recurring revenue.

While the valuation still looks expensive, many analysts are willing to pay a premium for quality. Pro Medicus operates in a niche market with high barriers to entry and growing demand for digital healthcare solutions.

This recent weakness may offer a rare chance to buy a top-tier healthcare technology business at a heavily discounted price.

CAR Group Ltd (ASX: CAR)

CAR Group owns online automotive marketplaces such as carsales, with operations across Australia and several international markets.

The share price has lagged as investors worry about slowing car sales and softer economic conditions. Even so, the business continues to generate strong cash flow and holds leading market positions.

Brokers remain broadly supportive. The average 12-month price target sits around $40 to $42, around 30% to 35% above current levels.

Analysts continue to point to CAR's pricing power, high margins, and global expansion strategy as key strengths. Its leading market share allows it to raise prices over time without losing customers, which helps support earnings even in softer conditions.

CAR also offers a mix of growth and resilience, which can be attractive for investors during uncertain market periods.

Foolish takeaway

All 3 of these ASX shares have strong underlying businesses, but their share prices have been weighed down by short-term concerns.

Periods like this can create opportunities for investors willing to look beyond near-term market moves.

For investors building positions in January, these stocks look well worth watching as markets reset for 2026.

Motley Fool contributor Aaron Teboneras 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 WiseTech Global. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended CAR Group Ltd and Pro Medicus. 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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