Here at The Motley Fool, we are always looking to identify S&P/ASX 200 Index (ASX: XJO) stocks that could be undervalued.
Three that have been hotly covered in recent weeks are Pro Medicus Ltd (ASX: PME), REA Group Ltd (ASX: REA) and Nextdc Ltd (ASX: NXT).
These ASX 200 stocks are either sitting close to 52-week lows, or far from yearly highs.
However for all three, it looks like there could be greener pastures ahead.
Based on recent price targets from analysts, let's look at just how profitable they could be as a value investment over the next 12 months.
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Pro Medicus Ltd (ASX: PME)
Pro Medicus provides medical imaging technology globally.
It is the ASX 200's fifth-largest company.
The company is recognised as a leading supplier of radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualisation solutions for medical practices and hospitals.
Yesterday, Pro Medicus shares closed at $177.56.
This is a 37% drop over the last 12 months.
However there is plenty of long-term potential for this ASX 200 stock.
In its FY25 result, the company reported revenue growth of 31.9% to $213 million and net profit after tax (NPAT) growth of 39.2% to $115.2 million.
With strong fundamentals, low operating costs and a dominant market presence, I think it's a matter of "when" not "if" this stock bounces back.
A recent rating from Macquarie included an outperform rating and price target of $291.30.
Should Pro Medicus shares hit this target in the next 12 months, a $10,000 investment would turn into approximately $16,409.
REA Group Ltd (ASX: REA)
REA Group shares have been heavily sold over the last year, likely due to AI concerns and competition worries.
But while investors have been exiting the stock, experts remain steadfast in their confidence.
Yesterday, REA Group shares closed at $191.60 each.
This is hovering close to yearly lows, with the ASX 200 stock down almost 23% in the last 12 months.
The Motley Fool's Tristan Harrison reported earlier this week that the team at UBS sees UBS an economic moat in customer experience, brand, uniqueness of product and complexity of the ecosystem.
The broker also said the negative AI narrative could unwind over this year.
UBS has a price target of $255 on REA Group shares.
If this ASX 200 stock were to hit that target in the next year, a $10,000 investment would grow to approximately $13,308.
Nextdc Ltd (ASX: NXT)
This ASX 200 stock has also been hotly covered due to its perceived value and connection with the AI trend.
The company operates data centres in Australia, New Zealand and Southeast Asia. It focuses on co-location services to local and international organisations as well as interconnectivity between enterprises, global cloud, ICT providers, and telecommunication networks.
While it has fought back considerably from 52-week lows, estimates from brokers indicates the current price is still a value play.
NextDC shares closed yesterday at $13.26 each.
However, Ord Minnett has a buy recommendation and a $20.50 target price on this ASX 200 stock.
If it hit that target in a year, a $10,000 investment would grow to be worth approximately $15,460.
