Value investing involves buying stocks that appear to be trading for less than their intrinsic (true) value, typically because the market has temporarily underestimated the company.
Investors typically target more mature companies with a proven track record, so the risk is lower (and less speculative) than growth investing.
Right now there are three ASX 200 shares that stand out as clear value opportunities after falling 50% or more in the last year.
Let's see what experts are saying about their rebound potential.
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Ebos Group Ltd (ASX: EBO)
Ebos Group is the largest pharmaceutical wholesaler and distributor across Australia, New Zealand, and Southeast Asia.
The company provides pharmaceutical and wellness products to community pharmacies, public and private hospitals, day surgeries, general practices, aged care facilities, and specialist clinics.
Like much of the healthcare sector, it has been hit hard in the last 12 months.
In that span, this ASX 200 stock has fallen 51%.
However, it could be a true value opportunity right now.
It closed trading yesterday at $17.88 each.
The team at Macquarie is optimistic it can recover.
Experts seem to agree that it is now a value play, with the current average 12-month price target of 9 analysts sitting at $23.33.
This indicates an upside potential of 30%
The company is also paying a dividend yield of 5.9% this year, with that figure expected to increase to 6.9% in 2028.
Cochlear Ltd (ASX: COH)
Another ASX 200 stock that now sits firmly in the value range is Cochlear.
The cochlear implant device manufacturer has seen its share price tumble almost 56% in the last 12 months.
Despite disappointing guidance earlier this year, Cochlear still holds roughly half the global cochlear implant market.
That competitive moat is still valuable and with the company trading at historic lows, it could be a clear value opportunity.
All eyes will be on full year earning results today as the healthcare company will hope to spark a rebound.
WiseTech Global Ltd (ASX: WTC)
WiseTech is a provider of logistics software that aims to improve the world's supply chains. The company's software solutions, including its flagship CargoWise One solution, are now used by the top 25 global freight forwarders, including Toll and DHL.
It has begun to rally in the last few weeks, however remains down over 60% in the last 12 months.
According to CMC Invest, there have been nine ratings on the business in the last three months.
The average price target of those experts sits at $59.04.
This indicates an upside potential of almost 40%.
