These ASX 50 shares have lost up to 60%. Is the sell-off overdone?

Battered ASX shares: bargain buys or value traps in disguise?

Four heavyweight S&P/ASX 50 Index (ASX: XFL) shares have been hammered over the past 12 months, falling between 30% and 60%.

Each ASX 50 share has faced different challenges, but with brokers still seeing substantial upside in several names, investors may be wondering whether the sell-offs have gone too far.

A stressed businessman sits next to his briefcase with his head in his hands, while the ASX boards behind him show shares crashing.

Image source: Getty Images

Xero Ltd (ASX: XRO)

The Xero share price has taken a beating, but the business itself continues to grow at a healthy pace. This ASX 50 share delivered FY26 operating revenue of NZ$2.75 billion, up 31%, while annualised monthly recurring revenue jumped 37% to NZ$3.27 billion.

Xero added 506,000 customers during the year, taking its global base to 4.92 million. Management expects another strong year, with FY27 revenue guidance of NZ$3.62 billion to NZ$3.73 billion, implying around 30% growth at the midpoint.

There also appears to be plenty of runway, with Xero previously estimating a total addressable market of around 100 million small and medium-sized businesses.

Brokers remain divided. Citi has a buy rating and $113.60 target, while Morgan Stanley sees $130 and UBS $127. Ord Minnett and Morgans have targets of $110 and $111 respectively. RBC Capital and Jefferies are more cautious, with targets of $85 and $77.

WiseTech Global Ltd (ASX: WTC)

Few ASX 50 shares have experienced a more dramatic rollercoaster than WiseTech. Its shares have traded as high as $135 and as low as $28.76, representing an almost 80% peak-to-trough decline.

At around $37.57 at the time of writing, the stock remains close to its lows after falling approximately 60% over 12 months.

Yet the underlying business continues to grow. WiseTech reported a 46% increase in EBITDA to US$558.4 million for FY26, broadly within its guidance range.

Brokers appear considerably more optimistic than the share price suggests. Macquarie has an outperform rating and $48.20 target, while Citi and UBS have buy ratings with targets of $58.75 and $56 respectively.

Pro Medicus Ltd (ASX: PME)

AI concerns helped hammer this ASX 50 share, but the underlying numbers remain impressive.

Pro Medicus delivered FY26 revenue growth of 22.9% to $261.7 million, while underlying EBIT and NPAT rose 24.4% and 24.1% respectively.

Its Visage imaging software is already used by major healthcare systems across North America, yet management estimates it has captured only around 11% of the US market.

Citi has a buy rating and $225 target, implying around 34% upside. Barrenjoey has a buy recommendation with a $210 target, while JPMorgan is more cautious with a hold rating and $211 target.

REA Group Ltd (ASX: REA)

REA Group has also been under pressure, with this ASX 50 share trading around $168, well below its 52-week high of $242.81.

FY26 revenue increased 7% to $1.79 billion, although net profit fell 19%, partly due to an impairment relating to REA India.

The bigger concern is FY27, with REA warning that new national buy listings could be flat to down by low single digits.

Still, several brokers see value. Morgan Stanley has a $230 target, which points to a 37% upside. This is followed by Ord Minnett at $225 and Morgans at $203. RBC, Jefferies and UBS have targets ranging from $177 to $197.

Macquarie is more cautious at $170, while Bell Potter has a sell rating and $147 target. This suggests a potential loss of 12% at the current share price level.

Citigroup is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Marc Van Dinther has positions in WiseTech Global. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended JPMorgan Chase, Macquarie Group, WiseTech Global, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Macquarie Group and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Cheap Shares

Green arrow going up on a stock market chart, symbolising a rising share price.
Cheap Shares

2 ASX shares tipped to grow 62% or more in the next 12 months

Experts are excited about the prospects of these stocks…

Read more »

Buy now written on a red key with a shopping trolley on an Apple keyboard.
Cheap Shares

2 ASX shares highly recommended to buy: Experts

Numerous experts rate these ASX shares as buys…

Read more »

A man reacts with surprise when her see a bargain price on his phone.
Cheap Shares

2 very cheap ASX shares near 52-week lows I'd buy today

These two cheap ASX shares look very good value to me.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Cheap Shares

3 cheap ASX shares I would buy now

I take a closer look at three shares that I think offer good value at today’s prices.

Read more »

Three women athletes lie flat on a running track as though they have had a long hard race where they have fought hard but lost the event.
Cheap Shares

These 3 ASX 200 shares have lost 49%+ in 2026. Are any now bargains?

The real question: are today's lowered expectations low enough yet?

Read more »

A woman in her late 30s holds her hands out either side with the palms up as if indicating she doesn't know the answer to a question.
Cheap Shares

Treasury Wine Estates vs Temple & Webster: Which beaten down ASX stock is better value?

Treasury Wine Estates and Temple & Webster have both tumbled, but I think one offers more compelling value for a…

Read more »

Stressed businessman sits in panic amid digital stock market financial background.
Cheap Shares

3 ASX shares down 40% to 80% I'd buy on the cheap

I look at three beaten-down ASX growth shares that have caught my attention after a difficult year.

Read more »

Red arrow going down on a stock market table which symbolises a falling share price.
Cheap Shares

2 cheap ASX shares near 52-week lows I'd buy today

I think this is a wonderful time to invest in these undervalued stocks!

Read more »