These three ASX shares have taken a beating over the past year, but their market leadership and long-term growth potential could make them worth a closer look.
WiseTech Global Ltd (ASX: WTC), Pro Medicus Ltd (ASX: PME) and NextDC Ltd (ASX: NXT) are down 60%, 39% and 5%, respectively, at the time of writing.
While Buffett typically favours predictable, cash-generative businesses with durable competitive advantages, these three companies offer some of those qualities, albeit with varying degrees of risk.
Image source: Getty Images
WiseTech Global: logistics software at a crossroads
WiseTech's CargoWise platform powers critical operations across the global freight and logistics industry. Its deep integration into customers' workflows creates switching costs and a network effect that can be difficult for competitors to replicate.
However, the ASX tech share has endured a messy period, with governance concerns and controversies surrounding founder leadership damaging investor confidence.
Now, WiseTech is making a dramatic transformation, including cutting roughly one-third of its workforce as it integrates AI into its core offerings. That's a significant execution risk, but it could ultimately create a leaner and more efficient business.
TradingView data shows most analysts rate WiseTech shares a buy or strong buy, with an average price target of $60.63, implying around 33% upside.
It's more speculative than Buffett's typical compounders, but the company's platform remains a potentially valuable asset.
Pro Medicus: a powerful healthcare moat
This $20 billion ASX share provides medical imaging software, with its Visage platform helping hospitals and healthcare systems view and analyse medical images.
What makes it difficult to copy is the combination of sophisticated technology, deep integration into hospital workflows and the significant switching costs involved in replacing critical clinical software.
Importantly, Pro Medicus estimates it has captured only around 11% of the US market, leaving a substantial runway for expansion.
During FY26, the company signed 10 new contracts worth at least $407 million and renewed all six existing contracts, worth $141 million over five years. Customers are also increasingly adopting its cardiology offering.
Nine of 15 TradingView analysts rate the shares a buy or strong buy. The average price target of $212.65 implies roughly 12% upside, while Bell Potter retains a buy rating and $226 target.
NextDC: betting on the AI boom
NextDC operates data centres, increasingly vital infrastructure for the digital economy. As AI, cloud computing, streaming and other data-intensive applications expand, demand for secure data centre capacity should keep rising.
This ASX share is expanding its footprint, including its first AI-ready facility in Kuala Lumpur and facilities designed specifically for AI workloads, such as its S6 Sydney data centre.
The opportunity has attracted strong broker support. Nine of 10 TradingView analysts rate NextDC shares a buy or strong buy.
The average price target is $21.60, implying around 59% upside, while UBS maintains a buy rating with a $22.55 target.
Foolish takeaway
None of these ASX shares is a pure textbook Warren Buffett investment. But all three possess qualities Buffett appreciates: market leadership, competitive advantages and potentially significant long-term cash-generation opportunities.
For investors prepared to accept the risks, these beaten-down ASX shares could offer significant upside if their growth stories remain intact.
