I get excited when some of my favourite Australian stocks go on sale, and the last few months have seen a number of names go through some difficult declines.
It's during times like this when I'm reminded of one of the simplest, most useful phrases that legendary Warren Buffett has ever said: "Be fearful when others are greedy and greedy when others are fearful".
With that in mind, I'm going to highlight two Australian stocks that look great value after their recent declines. They are expected to continue delivering growing profits in the coming years. I'd happily buy them with $6,000.
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REA Group Ltd (ASX: REA)
What's more Australian than property? REA Group is one of the best ways to gain exposure to the property market, in my opinion. It owns a number of property businesses including realestate.com.au, realcommercial.com.au, flatmates.com.au, PropTrack, Mortgage Choice and plenty more.
As the chart below shows, the REA Group share price has declined more than 30% in the past six months, at the time of writing, despite reporting a solid HY26 result.
Despite a 6% decline in national listings, REA Group's core operations revenue grew 5%, operating profit (EBITDA) grew 6% and net profit increased 9%. The dividend was hiked by 13% and the business also announced a $200 million share buyback which it is now enacting.
The company is benefiting from a stronger 'buy yield', meaning it's generating more revenue from the same listing.
I'm not sure how many property listings there are going to be over the rest of FY26, but the recent rate rise by the RBA could lead to more forced sellers. Another rate rise this year – which isn't impossible – could mean even more listings.
Additionally, the Australian population and the number of properties continue to grow over time, giving the business a larger total addressable market (TAM). I'm also hopeful that the company's US and Indian investments can become meaningful contributors to earnings as those markets become more digital.
It continues to command the most buyer and seller activity by some distance, with AI (agents) supposedly being a very small part of the picture (according to UBS).
The broker UBS thinks the Australian stock's net profit can rise to $622 million in FY26 and $726 million in FY27. That would put the current REA Group share price at 31x FY26's estimated earnings.
Siteminder Ltd (ASX: SDR)
Siteminder is a leading software provider for thousands of hotels around the world. The company's offerings help clients with their operations and maximise their revenue.
The business gives clients data, analysis and insights on demand throughout the year, to help them decide on how to price their rooms and also connect with room distribution providers.
Surprisingly, the Siteminder share price has declined by more than 45% over the past six months, as the chart below shows.
The Australian stock is rapidly growing its financials and I'm expecting this to continue. HY26 revenue rose 25.5% to $131.1 million and the annualised recurring revenue (ARR) grew 29.7% to $280.3 million.
This period saw net property additions of 2,900 to 53,000, while the average revenue per user (ARPU) increased 11.3% to $435. It's benefiting from the additional software initiatives it's rolling out and the rising product adoption.
Profitability is rapidly increasing and this makes me believe the business has a promising future. It saw adjusted operating profit (EBITDA) surge 132% to $12.3 million. Ultimately, rising earnings should support a higher Siteminder share price.
The broker UBS thinks the business could see a net loss after tax of $1 million in FY26 and make a net profit of $77 million by FY30. That puts the business at 15x FY30's estimated earnings.
