ASX shares haven’t been uniformly kind lately. Many high-quality companies have been pulling back and leaving some fundamentally sound businesses trading at valuations that resemble discounts rather than growth premiums.
From tech-enabled marketplaces to global gaming and beaten-down fund managers. Stocks such as REA Group Ltd (ASX: REA), Aristocrat Leisure Ltd (ASX: ALL), and GQG Partners Inc (GQG) all lost 25% or more in the past 12 months.
At the current levels, these ‘cheap’ ASX shares offer potential long-term upside, if you’re willing to look past short-term volatility and broader market headwinds.
REA Group Ltd (ASX: REA)
The ASX share pulled back from recent highs and has declined around 28% over the past year, even as the underlying digital real estate business continues to grow. REA Group owns and operates realestate.com.au, Australia’s dominant online listing marketplace.
It’s a business with pricing power and strong cash flow that has historically compounded returns for long-term holders. Recent quarterly results showed revenue and EBITDA growth, driven by yield increases even as property listings softened.
A key strength is its market leadership and recurring services. However, regulatory scrutiny and high valuation multiples relative to historical averages could cap near-term gains. If Australia’s housing market regains momentum or REA executes on AI-driven tools, sentiment around this ASX share could turn. It would make its current weakness a potential entry point.
Aristocrat Leisure Ltd (ASX: ALL)
The valuation and risk profile of Aristocrat Leisure have come under pressure. It has put the ASX share on cheap screens relative to longer-term growth history.
Sales and revenue were mixed, with recent softness prompting share weakness despite record deployments and recurring earnings from digital gaming segments.Â
The company operates globally across land-based casino machines and digital/mobile gaming, a diversification that’s a structural strength as consumer preferences shift. But cyclical exposure to gaming spend, regulatory risks in key markets, and FX headwinds can make earnings lumpy.
Aristocrat’s disciplined capital management â including buybacks and debt reduction â supports earnings quality. Mergers and acquisitions, optionality, and online game portfolio expansion could re-rate multiples if growth stabilises.
Investors looking for growth plus some defensive earnings might find the current price range appealing, but patience is key.
GQG Partners Inc (ASX: GQG)
This ASX share has been one of the more beaten-down names. GQG Partners’ share price is down almost 25% over the past year as investor flows fluctuated and performance lagged some benchmarks.Â
The global active asset manager reported double-digit revenue and net profit growth, but net inflows declined, which spooked sentiment. GQG’s strengths include a diversified global investment franchise, high margins, and generous dividends, with a payout often cited among sector highs.
Weaknesses include sensitivity to fund flows and periods of underperformance in defensive portfolios, which compresses assets under management and fees. However, brokers like Macquarie see potential catalysts that could drive a recovery from depressed valuations.Â
For value-oriented investors willing to tolerate volatility, the ASX share’s current setup may offer compelling risk-reward.
The post These ASX shares look cheap and could reward patient investors appeared first on The Motley Fool Australia.
Should you invest $1,000 in REA Group right now?
Before you buy REA Group shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and REA Group wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 1 Jan 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- How much could a $10,000 investment in these ASX 200 stocks be worth if they hit 12 month targets?
- Experts rate these 2 ASX growth shares as buys this month!
- Why these beaten-down ASX shares are worth a second look
- Why buy and hold investing with ASX shares could make you rich
- In a hot market, the undervalued Australian shares to buy now
Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.