Stock Pick

Are these the 3 most undervalued ASX 200 shares right now?

Written by

openjargon

in

A senior couple discusses a share trade they are making on a laptop computer.

The turbulent 2026 for the S&P/ASX 200 Index (ASX: XJO) has been somewhat of a rollercoaster for investors. 

However, it has also created rare buying opportunities for some of the country’s biggest companies. 

After a difficult 12 months, including heavy losses this year, here are three of the most undervalued ASX 200 stocks. 

REA Group Ltd (ASX: REA)

REA Group operates one of Australia’s most recognisable online real estate advertising companies. 

Its share price has fallen 33% from yearly highs. 

However, a recent update from the team at Bell Potter indicates it could be a rare opportunity to scoop up this ASX 200 stock at a considerable discount. 

As James Mickleboro reported yesterday, Bell Potter said that REA Group delivered a strong and resilient third-quarter result despite higher interest rates. 

Listings grew 1%, supported by strong performance in Melbourne and Sydney, while revenue from residential, commercial, and financial services all performed well. 

The broker also noted that cost growth was controlled, helping profit margins improve significantly.

Bell Potter was particularly positive about REA Group’s pricing power, noting that the company plans to increase prices by 8% in FY27, compared to rival Domain Holdings Australia planning only a 4% increase. 

Bell Potter believes this shows REA remains confident in the value of its platform and its dominant audience reach.

While the broker expects property listings to decline slightly in FY27, it believes the housing market is moving into a more balanced phase after a period of very strong demand.

This culminated in an increased price target of $217, which indicates a 23% upside from current levels. 

WiseTech Global Ltd (ASX: WTC)

Moving to the technology sector, WiseTech Global shares are down nearly 40% year to date. 

The logistics software provider now appears to sit firmly in the value window. 

Yesterday, Aaron Teboneras laid out the bull case for a rebound. 

Its sticky customer base and implied EBITDA margin of around 40% to 41% in FY26 make current valuations look particularly appealing. 

This ASX 200 stock is currently trading around $42.36 per share. 

This is more than 80% below recent target prices from brokers. 

Pro Medicus Ltd (ASX: PME)

Finally, in the struggling healthcare sector, Pro Medicus shares appear to be well below fair value. 

The medical imaging technology company has continued to secure blue-chip contracts and has experienced strong growth this year. 

Pro Medicus software becomes deeply embedded in hospital imaging workflows, making the systems difficult to replace and creating strong switching costs alongside reliable recurring revenue streams.

In its HY26 result, this operating model has led to revenue growth of 28.4% to $124.8 million, while underlying profit before tax climbed almost 30%.

Despite these green flags, its share price is down more than 40% year to date. 

At the time of writing, it is trading at roughly $129 per share. 

Recent broker estimates have placed fair value at $200 per share, making current prices a tempting entry point. 

The post Are these the 3 most undervalued ASX 200 shares right now? 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…

See the 5 Stocks

* Returns as of 20 Feb 2026

.custom-cta-button p {
margin-bottom: 0 !important;
}

More reading

Motley Fool contributor Aaron Bell has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. 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. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More posts