These two S&P/ASX 200 Index (ASX: XJO) shares have dropped significantly in the past few months.
The headlines on Aristocrat Leisure Ltd (ASX: ALL) and Life360 Inc (ASX: 360) have soured, resulting in 31% and 47% respective share price declines over 6 the past months. Volatility has spiked, and long-term growth strategies have suddenly been labelled broken models.
However, sharp sell-offs often create the best long-term entry points in quality ASX 200 shares. Let’s take a closer look at these battered stocks.
Aristocrat Leisure Ltd (ASX: ALL)
The gloss has come off this $30 billion ASX 200 gaming share. Valuation pressure and rising uncertainty have dragged Aristocrat into ‘cheap’ territory compared with its long-term growth record.
Recent results of the ASX 200 share were uneven. Revenue missed expectations. Even with record machine deployments and resilient recurring earnings from digital gaming, the market focused on the soft spots. Confidence slipped. The share price followed.
However, taking a step back, the core business still looks strong. The ASX gaming group spans land-based machines and digital and mobile platforms. That mix matters. As player behaviour shifts, Aristocrat can pivot. Few rivals match its global scale or depth of content.
Risks remain. Gaming spend moves with economic cycles. Regulators can change the rules quickly. Currency swings can distort earnings. In short, expect choppy short-term numbers.
There are offsets. Management of the ASX 200 share is disciplined with capital, backing buybacks and cutting debt to strengthen earnings quality. Mergers and acquisitions firepower and further expansion in online gaming add optionality. If growth stabilises, the stock could re-rate.
For investors chasing growth with some defensive traits, today’s price range of $49.51 looks compelling. Analysts agree, pointing to potential upside of about 42% and an average 12-month target of $70.36.
Life360 Inc (ASX: 360)
Life360 shares rose 6.8% on Monday to $23.51. A welcome bounce, but far from a recovery. The ASX 200 share is still down 27% year to date and still sits 58% below its October high of $55.44.
What drove the sell-off? Last year, the ASX 200 tech company surged on the back of its new GPS pet-tracking launch. Investors piled in.
Then momentum broke. There was no single price-sensitive shock. Instead, investors banked profits after a strong run. Broader tech weakness added pressure. Fresh fears that AI could disrupt traditional software models hit sentiment again earlier this month, triggering another pullback.
The weakness followed a wider tech correction in late 2025. However, the fundamentals remain solid. Last month, Life360 posted a standout quarterly update. The stock jumped nearly 30% on the result.
Monthly active users hit 95.8 million, which is a record Q4 result. The company added 16.2 million users across 2025 and growth remains strong. But the rally faded fast.
What’s next for this ASX 200 share? Management of the ASX 200 share expects continued user and monetisation growth in its core US market and expanding international regions. After pets, the company plans to target the elderly care segment.
If engagement holds, growth could accelerate. Analysts lean bullish. TradingView data show that 9 of 13 rate the ASX 200 share a strong buy. The top price target sits at $49.13, implying potential upside of almost 109%.
If execution continues, today’s price may look cheap before the next leg higher.
The post 2 bruised ASX 200 shares analysts tip to soar this year appeared first on The Motley Fool Australia.
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More reading
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- 3 of the best Australian stocks to buy and hold until 2036
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 positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.