Investors buy ASX 200 stocks for their reliable track record and long-term potential. Sometimes they are perceived as having lower returns and lower volatility.
However, that isn't always the case.
Occasionally, after heavy sell-offs, these quality companies can present significant upside.
Right now, two that fit that criteria are PEXA Group Ltd (ASX: PXA) and Netwealth Group Ltd (ASX: NWL).
Both ASX 200 stocks have fallen significantly over the last 12 months and are now drawing very positive ratings from brokers.
Experts are tipping these ASX 200 shares to rebound more than 100% in the next year.
Here's what brokers are saying.
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PEXA Group Ltd (ASX: PXA)
PEXA provides a digital conveyancing platform for real estate settlements in Australia. The company touts itself as offering world-first technology that facilitates near real-time tracking of settlements and faster clearance of funds.
The company derives its revenue by charging fees to conduct property transactions over its network. Its digital process is recognised in the industry as speeding settlements, reducing the risk of manual errors, and alleviating settlement delays.
Over the past 12 months, its share price has fallen almost 32%.
It closed trading yesterday at approximately $8.73 per share.
However a new note out of the team at Macquarie indicates now could be the time for savvy investors to buy in at a bargain price.
The broker said property settlements in New South Wales rose 3.1% in June from the corresponding period a year earlier, rebounding after a soft May.
Macquarie lifted its price target on the company to $19.30 from $19.05.
From yesterday's closing price, this indicates an upside potential of 121%.
Netwealth Group Ltd (ASX: NWL)
Netwealth Group is another ASX 200 stock investors should be monitoring. It is a financial services and technology company that provides a wide range of products and services to the Australian financial investment industry, including cloud-based investment administration software-as-a-service (SaaS), a retail superannuation fund, and an administration business.
In the last 12 months, this ASX 200 stock has fallen 34%.
It closed trading yesterday at $22.89 per share.
However, the team at Bell Potter is optimistic this will rise in the next 12 months.
The broker has retained its buy rating and $30.00 price target on Netwealth's shares.
This indicates 31% upside potential for this ASX 200 stock.
Bell Potter said this ASX 200 stock is well positioned ahead of its 16 July trading update, with the June quarter's strong rebound in global equity markets expected to drive a material uplift in funds under administration through positive market movements.
The broker said Netwealth offers the strongest and most direct leverage to rising markets among the platform providers it covers, reinforcing its positive view on the stock.
