Some of the most interesting buying opportunities can appear before the market feels comfortable again.
I am not looking for businesses where everything is perfect today. I am looking for companies where expectations have been reset, but the long-term opportunity still looks attractive.
Three ASX shares I would consider buying before sentiment improves are named in this article.
Image source: Getty Images
CSL Ltd (ASX: CSL)
CSL is one ASX share I think investors should be studying closely.
The healthcare giant has been through a difficult period. Confidence has weakened, guidance has disappointed, and the market no longer treats the company as the simple long-term compounder it once appeared to be.
I think that shift is important. Investors should not pretend the old story is still intact. CSL needs to rebuild trust, improve execution, and show that the pressure in parts of its business can be managed.
But I also do not think the company's long-term strengths have disappeared. CSL remains a global healthcare leader with valuable positions across plasma therapies, vaccines, and specialist medicines.
The dividend yield has also become more interesting after the share price weakness. I would not buy CSL only for income, but I do like being paid something while waiting for the business to regain momentum.
Sentiment may take time to turn. That is normal after a long derating. But I think patient investors could look back on this period as a useful opportunity to buy a global healthcare leader when expectations were unusually low.
WiseTech Global Ltd (ASX: WTC)
WiseTech is another ASX share I would buy before confidence fully returns.
The logistics software company has been sold down heavily from its high, but I still think the business has an excellent long-term position.
Global trade is complicated. Freight forwarders and logistics providers deal with customs, documentation, compliance, warehousing, transport, tariffs, and constant exceptions. That kind of complexity creates a need for software that can sit deep inside daily workflows.
That is what I like about WiseTech. Its CargoWise platform is not a casual tool that customers use once and forget. It helps run important parts of global logistics operations. If the software saves time, reduces errors, and improves control, it can become very difficult to replace.
I am also positive on its exposure to artificial intelligence (AI) and think it could become genuinely useful in this part of the economy. Logistics still contains a lot of repetitive admin, document handling, and manual checking. If WiseTech can use AI to make those processes faster and more accurate, the platform could become even more valuable.
There are risks around valuation, execution, and integration. But I think the share price fall has made the long-term risk/reward more appealing.
Treasury Wine Estates Ltd (ASX: TWE)
Treasury Wine Estates is a different type of opportunity.
This is more of a recovery story than a clean compounder today. The market has become cautious on the business, and that is understandable. The US wine market has been difficult, execution has been questioned, and confidence in the earnings outlook has weakened.
But I still think Treasury Wine owns assets worth paying attention to. Penfolds remains a powerful premium wine brand. Those kinds of brands are not built quickly. They need history, trust, distribution, quality, scarcity, and pricing power.
If the company can rebuild momentum in China, improve its US performance, and focus more effectively on its strongest brands, I think sentiment could improve over time.
However, recovery stories often take longer than investors hope, so patience will be needed. But after a heavy sell-off, I think the market may already be pricing in a lot of disappointment.
Foolish Takeaway
Weak sentiment can make even good opportunities feel uncomfortable.
That is why I think this is a useful time to look at businesses where the market has lost patience, but the long-term case has not disappeared. The share prices may not recover quickly, and there will almost certainly be setbacks.
But investors do not need everyone to agree with them on day one. In my opinion, they need the businesses to keep improving while expectations remain low. If that happens, the market may eventually catch on.
