Some share price falls are deserved.
A company misses expectations, the outlook weakens, or the market starts questioning whether its growth story still holds together.
But I do not think every sell-off should be treated the same way. Sometimes, good businesses fall out of favour and create a better entry point for patient investors.
Two ASX 200 shares I think could be worth a closer look after recent weakness are named in this article.
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CSL Ltd (ASX: CSL)
CSL has been one of the biggest disappointments on the ASX over the past year.
The biotechnology giant has lost its premium rating following a series of underwhelming updates, guidance downgrades, and execution concerns.
There is no point pretending this is the same CSL that investors used to pay up for without hesitation. It is not. The company has work to do to rebuild trust and prove that earnings growth can become consistent again.
But I think the market may now be pricing in a very harsh outcome.
CSL still has valuable positions in plasma therapies, vaccines, and specialist medicines. Demand for many of its core products is supported by long-term healthcare needs, and the company still has a global scale that few competitors can match.
That is why I remain interested. I see CSL as more of a recovery story today than the classic compounder it used to be. But at a much lower valuation, I think that recovery potential could be meaningful for investors willing to wait.
The recovery may take time, and sentiment could remain weak for a while yet. But if CSL can stabilise earnings, improve execution, and restore confidence, I think today's share price could look too cheap in hindsight.
James Hardie Industries plc (ASX: JHX)
James Hardie Industries is another quality ASX 200 share that has been under pressure.
The building products giant is heavily exposed to the North American housing market, where higher interest rates and weaker renovation activity have weighed on sentiment.
That cycle has been uncomfortable. When housing activity slows, demand for exterior building products can soften, and earnings expectations can come under pressure.
But I do not think the long-term case has disappeared. James Hardie still has a strong position in fibre cement building materials, particularly in the United States. Its products are used in repair, renovation, and new construction, giving the company exposure to a large market that should recover over time.
I also like the fact that this is not a business starting from scratch. James Hardie has spent years building brand recognition, distribution, manufacturing scale, and customer relationships. Those advantages do not disappear just because the housing cycle is difficult.
In my view, the current weakness could be creating an opportunity to buy a high-quality building products company while expectations are low.
If interest rates eventually ease, renovation activity improves, and housing confidence returns, James Hardie could be well placed to benefit.
Foolish Takeaway
CSL and James Hardie shares are not obvious easy wins today.
Both businesses are dealing with real challenges, and neither may recover quickly. But I think the market may be too focused on the current disappointment and not focused enough on what these companies could look like in three to five years.
For patient investors, I think both ASX 200 shares could be too cheap to ignore.
