The S&P/ASX 200 Index (ASX: XJO) is off to a modest start in 2026.
Australia's benchmark index is up roughly 1% since the start of the new year.
Two ASX 200 stocks I have my eye on are ARB Corporation Ltd (ASX: ARB) and IperionX Ltd (ASX: IPX).
These two companies have experienced very different starts to the year.
However it appears both may be trading below fair value.
Here's what experts are saying.
ARB Corporation Ltd (ASX: ARB)
This ASX 200 company is Australia's largest designer, manufacturer, and distributor of four-wheel-drive and light commercial vehicle accessories.
The company has carved a niche with aftermarket accessories including bull bars, suspension systems, differentials, and lighting.
Its stock price has tumbled more than 11% for the year to date.
This week alone, the company has seen its share price fall 12% on the back of its half-year trading update.
It appears investors were heavily selling after the company reported Australian aftermarket sales declined 1.7%.
The Motley Fool's Aaron Teboneras reported yesterday this result reflected softer demand for key vehicle models and ongoing fitting capacity constraints.
Perhaps even more concerning was that ARB expects to report underlying profit before tax of approximately $58 million for the half year.
This represents a 16.3% decline compared with the prior year.
However, it wasn't all bad news. The company also reported export sales had increased 8.8%, with US market sales up 26.1%.
This ASX 200 company is now trading close to its 52-week low, which could be an attractive entry point for value investors.
TradingView has an average one year price target of $41.34.
This indicates more than 45% upside from yesterday's closing price.
IperionX Ltd (ASX: IPX)
It has been a very different year for IperionX.
The low carbon titanium developer has seen its share price soar almost 20% since the start of the year.
This has been fuelled by key contract wins amidst the United States' push to strengthen the defence-related supply chains for critical materials.
Despite the emerging tailwinds, this ASX 200 stock still sits 20% below its 52-week high.
It also experienced a slight dip yesterday, dropping more than 2%.
Analysts insights suggest it has the potential to keep rising.
Back in December, broker Bell Potter said the company has the potential to disrupt the incumbent titanium supply chain through materially lowering production costs and manufacturing waste.
The broker has a speculative buy recommendation along with a price target of $9.25.
This indicates a further upside of 33.29% from yesterday's closing price.
Meanwhile, TradingView estimates suggest the stock price could rise a further 37%.
