Value investing is the core principle of many successful investors.
This includes legendary investors like Warren Buffett.
But it doesn't take a mathematical genius to apply it to your own portfolio.
The core ethos is simple: buy low and sell high.
Image source: Getty Images
You don't have to time it to perfection
There are plenty of strategies you might consider for your portfolio. However, one of the benefits of value investing is that you don't need to time a purchase to perfection.
All stocks go up and down, but when you apply a long-term strategy, there are instances where quality blue-chip companies fall too far, past fair value.
This can happen even in the midst of real headwinds, and this is where value investors swoop in.
It's important to be less concerned with getting the perfect valuation, but rather focus on identifying companies whose long-term prospects remain intact despite short-term setbacks.
When the market overreacts to temporary challenges, it can push the share price well below what the business is really worth. For investors willing to look beyond the next quarter or even year, those periods can provide some of the best buying opportunities.
With that in mind, here are three blue-chips that are offering compelling value opportunities right now.
Light & Wonder Inc (ASX: LNW)
Light and Wonder is one of the largest ASX consumer discretionary companies.
It develops technology-based products and services, as well as associated content. It operates through the following segments: Gaming, SciPlay, and iGaming.
In 2026, its share price has fallen 30%, and now appears to be a long-term value option.
It currently trades for around $107 per share.
This is almost 90% below recent targets from Macquarie.
Furthermore, 22 analysts offering a one year price target via TradingView have an average target of $179.09 on this blue-chip stock.
That indicates roughly 66% upside from current levels.
JB Hi Fi Ltd (ASX: JBH)
Another blue-chip discretionary stock that could be a value play is JB Hi Fi.
The specialty retailer of home entertainment and home appliance products has seen its share price fall 27% over the last year.
It currently is trading at approximately $78 per share.
However, Bell Potter currently has a buy rating on JB Hi-Fi shares with a price target of $87.
Of 15 analysts forecasts via TradingView, the highest targets sit at $98 per share.
These targets indicate an upside between 11% and 25%.
CSL Ltd (ASX: CSL)
CSL is the largest ASX healthcare stock by market cap.
This is despite its share price tumbling nearly 50% in the last 12 months.
While the company faces ongoing sector headwinds, this could be a long-term value play, as the stock now appears oversold.
The underlying business remains strong as CSL maintains its position as one of the world's largest plasma-derived therapies companies.
A recent target from Morgans indicates the share price is likely to recover in the long term.
The broker has a buy rating and price target of $147.59 on this blue-chip stock.
This indicates a 17% upside from current levels.
