3 beaten-down ASX 200 shares to pick up in February

The ASX 200 has delivered plenty of pain over the past year, even for some of Australia’s highest-quality companies.

Rising interest rate uncertainty, sector rotations, and risk aversion have pushed several household names to heavily discounted levels. In some cases, share prices are now sitting close to 52-week lows despite solid underlying businesses.

Here are 3 beaten-down ASX 200 shares that could be worth a closer look in February.

CSL Ltd (ASX: CSL)

CSL shares are edging higher today, up 1.96% to $183.90. Even so, the global biotech giant remains around 32% lower than this time last year.

That decline has been uncomfortable for long-term holders, particularly given CSL’s reputation as one of the ASX’s most dependable growth businesses.

The sell-off has largely reflected concerns around margin pressure, higher costs, and near-term earnings rather than any structural problem with the business.

CSL remains a global leader in plasma therapies, vaccines, and specialty medicines, with strong long-term demand drivers tied to ageing populations and chronic disease.

Importantly, CSL is due to report its half-year results tomorrow. Any signs that margins are stabilising or earnings momentum is improving could quickly refocus investor attention on the company’s long-term growth profile.

At current levels, the stock is trading close to its 52-week low, a rare position for a business of this quality.

AGL Energy Ltd (ASX: AGL)

AGL shares are flat today at $8.90, but that masks a much weaker performance over the past year. The stock is down roughly 24% over the last 12 months and remains near its 52-week low.

The energy giant has been weighed down by uncertainty around electricity pricing, policy risk, and the long and expensive transition away from coal-fired generation. These concerns have kept a lid on sentiment despite AGL’s dominant market position.

Despite the uncertainty, AGL continues to offer an attractive dividend yield, supported by strong cash generation from its retail and generation assets.

With its half-year results also due tomorrow, the market will be watching closely for clarity on earnings, capital management, and the pace of its energy transition. Any signs of progress could help ease selling pressure and support the share price.

Seek Ltd (ASX: SEK)

Seek shares are jumping today, up 3.10% to $18.63. Despite the bounce, the stock remains around 20% lower than a year ago and is trading close to its 52-week low.

The online employment marketplace has been caught in the crossfire of slowing hiring activity and weaker global economic conditions. That has weighed on job ad volumes and short-term earnings expectations.

However, Seek’s core Australian business remains highly profitable, while its international operations offer long-term optionality. The company also has a strong balance sheet, giving it flexibility during softer economic periods.

As labour markets eventually recover, Seek is well-positioned to benefit. The recent pullback may offer an attractive entry point into a high-quality digital platform at a much lower valuation.

Seek is scheduled to report its half-year results on 17 February.

The post 3 beaten-down ASX 200 shares to pick up in February appeared first on The Motley Fool Australia.

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• Where I would invest $10,000 in ASX 200 shares in February

Motley Fool contributor Aaron Teboneras 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 CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.