Two ASX financials stocks that have tumbled in 2026 are Zip Co Ltd (ASX: ZIP) and Judo Capital Holdings Ltd (ASX: JDO).
Zip shares have fallen more than 50% since January, and more than 60% since hitting 12-month highs last October.
Meanwhile, Judo shares have fallen just over 15% for the year to date.
By comparison, the S&P/ASX 200 Financials (ASX: XFJ) index is up 1.7% in that same span.
After such significant declines, it could be a buy-low opportunity for these battered ASX financials stocks.
Here's what experts are saying.
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Is the Zip recovery coming?
Zip is an Australian financial technology company that has grown its operations in Australia, New Zealand and the United States to provide customer services in 12 countries.
Zip offers point-of-sale credit and digital payment services to consumers and merchants via interest-free buy-now, pay-later (BNPL) technology.
Its share price was heavily sold off during February earnings season.
This included a single day fall of 34.4% the day after the company released its half-year earnings result.
It now sits close to a 52-week low.
However targets from analysts suggest it could be an ideal time to buy.
Recently, Macquarie placed a price target of $3.35 on this ASX financials stock.
The broker viewed the February earnings results in a more positive light than the wider market.
Despite the reset in earnings on the back of moderated operating leverage as Zip invests for growth, we expect medium-term growth supported by Zip's attractive unit economics model.
10 analysts forecasts via TradingView have an average one year price target of $4.21 on Zip shares.
From yesterday's closing price of $1.60, these targets indicate a potential upside between 109% and 163%.
Judo shares set to bounce back
Judo is an Australian bank focused on lending to small and medium enterprises (SMEs).
Its brand provides business lending starting at $250,000 and touts itself as providing more flexibility than major banks. It also offers personal term deposit products and home loans.
Its share price is down 15% year to date despite posting positive earnings results last month.
Based on recent broker ratings, its current share price could be a value.
The team at UBS is optimistic about future EPS growth.
The broker is expecting the business to grow its earnings per share (EPS) at a compound annual growth rate (CAGR) of roughly 14% over the next three years.
The broker has a price target of $2.25 on this ASX financials stock.
From yesterday's closing price of $1.53, that indicates a potential upside of 47%.
