It hasn't been an easy year for some of the highest-quality ASX shares.
REA Group Ltd (ASX: REA) shares are down around 13% year to date, while Light & Wonder Inc (ASX: LNW) has fallen roughly 21%.
Both are leaders in their fields. Both ASX shares have strong long-term growth stories.
So, is this weakness an opportunity?
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REA Group: a digital powerhouse
When it comes to dominant platforms, this ASX share is hard to beat.
The company sits at the centre of Australia's property market through realestate.com.au. That position gives it significant pricing power and a highly scalable business model.
Agents need eyeballs and REA controls them. That dynamic has allowed the company to consistently lift prices through premium listings and depth products, even when property volumes fluctuate.
While the housing cycle can create short-term volatility, the long-term trajectory remains intact. Growth is also supported by international expansion, adding another lever beyond the domestic market.
And the recent pullback hasn't gone unnoticed. Trading View data show that 12 out of 16 brokers rate REA Group as a buy or strong buy. They have set a 12-month average price target of $213.62, which points to a 32% potential gain.
Analysts at Morgan Stanley currently have an overweight rating on the ASX share, with a $230.00 price target. That suggests potential upside of roughly 44% from current levels.
For long-term investors, that's a strong signal that the market may be underestimating REA's staying power.
Light & Wonder: growth across multiple fronts
Light & Wonder offers a different kind of growth story, but one that's just as compelling.
The company operates across land-based gaming, iGaming, and social gaming through its SciPlay division. That diversified model allows it to tap into both traditional casino revenue and the fast-growing digital gaming market.
It's a powerful combination. By straddling physical and digital channels, the ASX share is positioned to capture multiple industry tailwinds at once. And that's exactly why analysts are paying attention.
Macquarie Group Ltd (ASX: MQG) has named the ASX share its top pick in the Australian gaming sector, pointing to its ability to win market share and its "wide moat from disruption." That's a big call in a competitive space.
The upside case is hard to ignore. Macquarie has set a $205 price target on the stock, compared to its current price of $122.77. That implies potential upside of more than 65%.
Of course, risks remain. Consumer spending cycles, regulatory changes, and execution all matter. But the long-term positioning is clear.
Foolish Takeaway
REA Group and Light & Wonder have both taken a hit in 2026. But their core strengths haven't disappeared. These are dominant businesses with scalable models, strong competitive advantages, and clear growth pathways.
For investors willing to look beyond short-term volatility, they could be the kind of shares you buy — and forget about for years.
