When a share price hits a fresh 52-week low, it doesn't automatically mean it's a buy. Sometimes the market is flagging a real problem. Other times, sentiment simply overshoots reality.
On Friday, two well-known ASX shares touched new 52-week lows. What caught my attention is that in both cases, the long-term investment story still looks intact. That's why I think they could be candidates for a rebound as the year unfolds.
Here's why I'm watching them closely.
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Cochlear Ltd (ASX: COH)
Cochlear is one of those ASX shares that rarely looks cheap, which is exactly why a 52-week low stands out.
The market has been cautious around Cochlear due to softer-than-expected growth, trade tensions, and margin pressures. None of these are insignificant, but they are largely cyclical rather than structural.
What hasn't changed is Cochlear's competitive position. It remains the global leader in implantable hearing solutions, with strong brand recognition among clinicians, deep relationships with hospitals, and a large installed base that supports ongoing service and upgrade revenue.
Demographic tailwinds also remain firmly in place. Ageing populations across developed markets continue to drive long-term demand for hearing solutions. That demand doesn't disappear, it just gets deferred. Cochlear is also busy with studies that it believes will support adoption, highlighting growing links between hearing loss and cognition in older adults.
After hitting a new low, the bar for positive surprise has come down. Even a modest improvement in procedure volumes or margins could be enough to shift sentiment. For a business of this quality, I think that makes the risk-reward more interesting than it's been for some time.
Temple & Webster Group Ltd (ASX: TPW)
Temple & Webster Group is a very different story, but one that I think the market may be too pessimistic about.
The ASX share has been under pressure due to higher interest rates, tech sector weakness, and the general slowdown in discretionary retail.
That said, the business model still stands out. Temple & Webster operates an asset-light, online-only platform with national reach. It doesn't carry the same fixed costs as traditional retailers, which gives it flexibility when conditions are tough and leverage when they improve.
Importantly, housing turnover and consumer confidence don't stay depressed forever. When conditions normalise, online penetration in furniture is likely to continue increasing. Temple & Webster is well positioned to benefit from that trend.
The share price hitting a new low reflects near-term caution, not a broken model. If demand stabilises and marketing efficiency improves, it wouldn't take much to change the narrative around this stock.
Foolish takeaway
New year lows don't guarantee a bounce, but they often create opportunity when sentiment has swung too far.
Cochlear and Temple & Webster operate in very different industries, yet both share a common theme. The long-term drivers are still there, but the market has focused heavily on short-term headwinds.
For investors willing to look past recent price action and think a little further ahead, these are two ASX shares that I think could be overdue a new year jump.
