Why I’d buy these dirt-cheap ASX 200 shares trading at 52-week lows

It has been a rough month for parts of the ASX share market.

Rising geopolitical tensions in the Middle East have pushed oil prices sharply higher, which in turn has lifted fuel and freight costs. At the same time, concerns about artificial intelligence (AI) disrupting parts of the technology sector have weighed on sentiment toward several growth stocks.

The result is that a number of ASX 200 shares have been sold down heavily and are now trading near 52-week lows.

While that volatility can be uncomfortable, I often find it is also when interesting long-term opportunities start to appear. Here are three shares currently under pressure that I would be looking closely at.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster Group has had a difficult run in the market recently, with its shares falling to 52-week lows as investors worry about consumer spending and the broader retail environment.

Personally, I still see a compelling long-term story here.

Temple & Webster has built a powerful online-only furniture platform with a very asset-light model. Unlike traditional retailers, it does not need to operate large showrooms or hold huge amounts of inventory. Instead, it relies on a drop-ship marketplace model that allows it to scale efficiently.

What I find particularly attractive is the company’s ability to use data to optimise merchandising, pricing, and marketing. Over time, that kind of technology-driven retail model can become increasingly difficult for competitors to replicate.

Short-term consumer weakness and higher freight costs may weigh on sentiment, but the long-term shift toward online furniture retail remains firmly intact in my view.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine Estates is another ASX 200 company whose shares have come under significant pressure.

The wine producer has faced a combination of challenges in recent years, including changing demand trends, inventory adjustments, and a more cautious global consumer environment.

However, when I step back and look at the bigger picture, I still see a business with some very valuable assets.

Treasury owns a portfolio of globally recognised wine brands, including premium labels that command strong pricing power in international markets. Premiumisation remains a key trend in the wine industry, with consumers increasingly shifting toward higher-quality products rather than simply buying more volume.

If management executes well and demand stabilises, I think the current share price weakness could eventually look like an overreaction.

Megaport Ltd (ASX: MP1)

Technology shares have been among the hardest hit during the recent market volatility, and Megaport is no exception.

Artificial intelligence disruption fears have rattled the broader software and tech sector, pushing a number of companies toward their lowest levels in a year.

But Megaport’s core business still looks interesting to me.

The company operates a global software-defined networking platform that allows businesses to connect their infrastructure to cloud providers and data centres on demand. As cloud adoption continues to grow, the need for flexible and scalable connectivity solutions should grow alongside it.

Megaport has also expanded its addressable market through its acquisition of Latitude.sh, which adds a new compute-as-a-service capability and opens the door to a much larger infrastructure market.

If management executes well, I think the long-term opportunity for the business could be much larger than what the market currently appears to be pricing in.

Foolish takeaway

Market selloffs can be uncomfortable, but they often create opportunities for patient investors.

Temple & Webster, Treasury Wine Estates, and Megaport are all trading near 52-week lows after a difficult period for their sectors. While risks remain, I believe each has a long-term story that could eventually reward investors willing to look beyond the current volatility.

The post Why I’d buy these dirt-cheap ASX 200 shares trading at 52-week lows appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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 Megaport, Temple & Webster Group, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.