How much could a $10,000 investment in these ASX 200 stocks be worth if they hit 12 month targets?

Is now the ideal time to buy these beaten down ASX 200 stocks?

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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. 

A woman is very excited about something she's just seen on her computer, clenching her fists and smiling broadly.

Image source: Getty Images

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. 

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Blue Chip Shares

Woman using a pen on a digital stock market chart in an office.
Blue Chip Shares

3 ASX 200 shares I'd buy and hold through any market cycle

Market cycles are impossible to avoid, so I would focus on businesses with strong positions and reasons to keep delivering…

Read more »

A woman holds up hands to compare two things with question marks above her hands.
Blue Chip Shares

CSL shares vs CBA shares: Which is the better buy?

The safer choice may not be the one with the most upside. That is why this comparison is tricky.

Read more »

Young woman using computer laptop smiling in love showing heart symbol and shape with hands. as she switches from a big telco to Aussie Broadband which is capturing more market share
Blue Chip Shares

I'd buy these blue-chip ASX shares with $2,000 in a heartbeat

With $2,000 to invest, I would focus on quality businesses that can keep growing rather than chasing short-term excitement.

Read more »

Wlorker on a laptop on top of solar panels.
Blue Chip Shares

3 ASX mining stocks positioned to benefit from the green transition

These three ASX mining shares are branching into resources required for the green transition. This is why it could be…

Read more »

A woman reclines in a comfortable chair while she donates blood holding a pumping toy in one hand and giving the thumbs up in the other as she is attached to a medical machine to collect her blood donation.
Blue Chip Shares

Why CSL shares could be one of the best buys on the ASX right now

CSL shares have been hammered by earnings disappointments. But the long-term investment case remains strong.

Read more »

A happy elderly couple enjoy a cuppa outdoors as the woman looks through binoculars.
Blue Chip Shares

The ageing Australia megatrend: 3 ASX shares built to benefit

With an ageing population, Australian companies must position themselves to provide services made for this demographic. These three stocks have…

Read more »

Workers inspecting a gas pipeline.
Dividend Investing

This overlooked ASX stock has raised its dividend 20 years in a row

20 years of consistent dividend growth is just the tip of the iceberg for this quality business.

Read more »

Person handing out $50 notes, symbolising ex-dividend date.
Blue Chip Shares

Where I'd invest $10,000 into ASX 200 dividend shares right now

These businesses look like compelling buys today.

Read more »