3 oversold ASX 200 shares trading for cheap right now

The S&P/ASX 200 Index (ASX: XJO) has jumped over 3% over the past month amid a surge in investor confidence.

Here are three undervalued ASX 200 shares which could be primed to storm higher over the next 12 months.

The A2 Milk Co Ltd (ASX: A2M)

A2 Milk shares are jumping higher in afternoon trade on Tuesday. At the time of writing, the milk company’s shares are up around 8% and changing hands at $7.04 a piece. 

Today’s share price spike follows the company’s FY26 results announcement on Monday morning. It reported a 12.4% increase in revenue but a 2.5% decline in full-year statutory EBITDA and a 5.8% drop in statutory NPAT.

Investors were initially hesitant but then many quickly bought into the shares.

Monday’s results announcement comes off the back of a difficult start to the year for A2 Milk. 

The shares crashed around 20% in early April after it lowered its FY26 guidance amid supply chain challenges, and the shares continued tumbling to an 18-month low in early-June.

The ASX 200 shares have recovered around 35% of their value from early-June to the time of writing, but the rebound still hasn’t brought the share price back to early-2026 levels. They’re still down around 24% for the year-to-date.

It’s clear that the company’s FY26 results weren’t as bad as many were expecting. Even after today’s 8% share price increase, it looks like the ASX 200 shares are still trading well below fair value.

Market Index data shows the majority of brokers have a buy rating on the shares. The $8.04 average target price implies a potential 19% upside, at the time of writing.

Lendlease Group (ASX: LLC)

Lendlease also posted its FY26 results early yesterday morning. The ASX 200 international property developer reported earnings at the top end of guidance but also posted a statutory loss after tax of $749 million.

Investors were spooked, and the shares crashed 11% by the end of the day. Today, ASX 200 property shares are back in the green, trading 1% higher at $2.90. The shares are also down around 44% year-to-date.

The announcement followed a disappointing first-half update earlier this year. 

The company has undergone a major strategic reset this year, which has seen it simplify its structure, exit international construction, and refocus its efforts on the Australian market. 

Investors aren’t sure, but it looks like analysts are more bullish that the company can pull off the new strategy.

Market Index data shows brokers are split between a buy and hold rating. But the $3.49 average target price implies a potential 22% upside, at the time of writing.

Nickel Industries Ltd (ASX: NIC)

Nickel Industries shares spiked to a three-year high of $1.10 in early May. But they’ve now lost around 25% of their value. At the time of writing, the shares are down another 1% and are changing hands for 83 cents each. That’s an 8% decrease year-to-date.

The ASX 200 company owns a portfolio of mining and downstream nickel processing assets in Indonesia. It has a controlling interest in the Hengjaya nickel mine and four rotary kiln electric furnace projects. These produce nickel pig iron (NPI) for the stainless-steel industry and materials for EV batteries. 

Its shares enjoyed a very strong start to 2026, including a new acquisition and strong financial results. But a weaker nickel price and higher costs have put pressure on the shares over the past couple of months.

But there is plenty of expansion potential ahead for the ASX 200 nickel shares, and brokers appear bullish that the share price can rally higher this year.

Market Index data shows that the majority have a buy rating on Nickel Industries shares. The $1.29 average target price implies a potential 56% upside over the next 12 months, at the time of writing.

The post 3 oversold ASX 200 shares trading for cheap right now appeared first on The Motley Fool Australia.

More reading

• How much do I need in my superannuation to earn $50,000 per year in passive income?
• Are A2 Milk shares a buy, hold or sell following results?
• Why Lendlease, A2 Milk and JB Hi Fi shares are turning heads on Monday
• Lendlease FY26 earnings: Top-end IDC result but statutory loss hits share price
• The A2 Milk Company posts higher FY26 revenue and increased dividends

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.