3 ASX shares down over 60% that could be bargain buys

A falling share price does not automatically create a bargain. Sometimes it is the market correctly reassessing a business. But other times, a heavy sell-off can leave a good company priced for a far worse future than it is likely to deliver.

That is what I think may be happening with the three ASX shares in this article.

All have fallen more than 60% from their highs. For investors with patience, I think they could be bargain buys.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster has been one of the hardest-hit ASX growth shares.

That is not too surprising. Online retail stocks can be punished heavily when consumer spending weakens, interest rates rise, and investors become less willing to pay up for growth.

But I think the long-term story still has a lot of appeal.

Temple & Webster is trying to win in a large category that is still moving online. Furniture and homewares have historically been showroom-heavy, but I think more customers are becoming comfortable researching, comparing, and buying these products digitally.

That gives Temple & Webster a structural tailwind if it keeps improving its range, delivery experience, pricing, and brand awareness.

The business also has a useful advantage in not needing the same store network as traditional retailers. That can give it more flexibility as it scales.

There are risks. Furniture demand is tied to housing turnover, renovations, and household confidence. The Federal Budget has also added more uncertainty around the housing outlook.

But after such a large share price fall, I think Temple & Webster could be worth another look. If the online shift continues and consumer conditions eventually improve, the rebound potential could be meaningful.

WiseTech Global Ltd (ASX: WTC)

WiseTech Global has also fallen heavily from its highs.

The logistics software company has faced investor concerns around valuation, management issues, acquisitions, AI disruption, and growth in its core business.

I think those concerns explain the sell-off. But I do not think they erase the long-term opportunity.

WiseTech is tied to one of the most complex parts of the global economy: moving goods across borders. Freight forwarders, customs brokers, and logistics providers handle paperwork, compliance, tariffs, routing, warehousing, and transport networks.

That complexity creates demand for specialist software.

CargoWise is already used by many logistics companies to help manage these workflows. If WiseTech can keep expanding the role its software plays across global trade, the company could become much larger over time.

Cochlear Ltd (ASX: COH)

Cochlear is a very different type of fallen share.

This is not a speculative growth company. It is a global leader in hearing implants, with a long history of innovation and a strong position in a specialised healthcare market.

What I like is that hearing loss is not a short-term theme. It is a long-term healthcare need linked to ageing populations, diagnosis rates, technology adoption, and access to treatment.

Cochlear has spent decades building trust with surgeons, audiologists, patients, and healthcare systems. That is difficult to replicate.

The company’s growth may not always be smooth. Healthcare funding, competition, product cycles, and currency movements can all affect performance.

But I think the market may be too focused on near-term disappointment and not enough on the durability of the franchise.

If Cochlear can continue improving its products, expanding access, and supporting lifelong patient care, I think the business can keep compounding over time.

Foolish Takeaway

Share price falls of more than 60% are not small setbacks. They usually mean confidence has been badly damaged.

But that is exactly why I think these opportunities are worth studying. Temple & Webster, WiseTech, and Cochlear do not need every investor to agree today. They just need their businesses to keep improving over the next few years while expectations remain low.

That is where patient investors can sometimes find the best bargains.

The post 3 ASX shares down over 60% that could be bargain buys appeared first on The Motley Fool Australia.

More reading

• WiseTech shares crash 65% — is the bottom near?
• ASX tech shares vs. ATEC ETF: How they fared during sector downturn
• 9 ASX 200 shares with renewed buy calls from the experts this week
• Are these 2 battered ASX healthcare shares too cheap to ignore?
• These ASX retail stocks are near 52-week lows, are they bargain buys?

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 Cochlear, Temple & Webster Group, and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Cochlear and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.