It's been a brutal 12 months for some high-quality ASX shares.
But big sell-offs can create big opportunities, especially when the long-term story remains intact.
Here are three ASX shares down 25% or way more that could be worth a serious look right now.
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Pro Medicus Ltd (ASX: PME)
This $12 billion ASX share has been hammered, with the stock price down more than 38% over the past year. Yet the underlying business remains elite.
Pro Medicus provides radiology imaging software to hospitals and healthcare providers globally. It serves a niche, high-margin space with strong recurring revenue. Its Visage platform is widely regarded as best-in-class, giving it a powerful competitive moat.
Growth has been strong historically, driven by major contract wins in the US. And once hospitals adopt its system, switching costs are extremely high.
So what's the risk?
Valuation — even after the fall. Pro Medicus has long traded at a premium, and any slowdown in contract wins or growth can hit sentiment hard. Add in broader tech sector weakness and AI fears, and you've got a recipe for volatility.
Analyst sentiment remains broadly positive, with many still viewing the ASX share as one of the highest-quality growth names on the ASX. Most brokers see the healthcare stock as a buy with an average 12-month price target of $218.74. That points to a 76% upside at the time of writing.
James Hardie Industries plc (ASX: JHX)
James Hardie shares are down heavily from recent highs, caught in the downturn in US housing. They have lost 25% of value over 12 months.
But this ASX share is still a dominant global player in fibre cement siding, with strong pricing power and a proven ability to grow market share.
Recent results showed solid sales growth, even as costs and housing softness impacted profits. And the AZEK acquisition opens the door to a much larger outdoor living market.
The risks? Cyclicality.
James Hardie is highly exposed to US housing activity. If housing remains weak, volumes and earnings could stay under pressure.
That said, analysts remain constructive. Trading View data show that 15 out of 22 analysts rate the ASX share a buy or strong buy. They have set an average price target of $42.09, implying a potential gain of almost 50% for the next 12 months.
Cochlear Ltd (ASX: COH)
This popular ASX share has also fallen sharply from its highs, dragged down by margin concerns and softer growth expectations. In the past 12 months it has tumbled 34% to $175.04 at the time of writing.
But the long-term story remains compelling.
Cochlear is the global leader in implantable hearing devices, with a dominant market position and strong brand recognition. Demand is underpinned by ageing populations and increasing awareness of hearing solutions. That's a powerful structural tailwind.
Its products are also highly specialised, which creates strong barriers to entry and leads to sticky customer relationships.
So why the sell-off?
Margins and growth have come under pressure, and investors have been quick to re-rate high-PE healthcare names. Like many quality ASX shares, this stock has suffered from multiple compression rather than a collapse in fundamentals.
Analysts remain broadly positive. They seem to be more cautious though in the near term as the company works through cost pressures and growth expectations reset. The average 12-month price target sits at $249.58, which suggests a 43% upside.
