2 ASX stocks down 28% to 30% in a month I’d buy right now

ASX stocks have crept higher over the past month after a shocking period between mid-August and mid-September, when indexes tumbled.

The All Ordinaries Index (ASX: XAO) has climbed around 1% higher over the past month, and the S&P/ASX 200 Index (ASX: XJO) is up around 1.5% over the same period. 

The latest turnaround is great news for stressed investors.

However, not every ASX stock has followed the same trend. Some have continued tumbling.

But sometimes a share price pullback creates an opportunity for investors to buy shares in a good-quality company at a low price.

Here are two ASX stocks that have caught my eye recently. 

PLS Group Ltd (ASX: PLS)

PLS shares have fallen just shy of 30% at the time of writing to $2.90 per share. The shares are also now down 32% year to date.

The lithium miner’s shares started rebounding in August off the back of growing investor optimism that the lithium price recovery is improving, and then they rocketed higher again when the miner posted a strong FY26 result in mid-August.

PLS posted a 152% increase in revenue, a 59% increase in underlying EBITDA, and a swing into profit in NPAT (from a loss in the prior corresponding period).

But soon after the shares spiked in late August, they came crashing downwards.

There isn’t any price-sensitive news out of the company to explain the latest sell-off. It’s likely a combination of investors taking gains off the table and a softer lithium price.

As a pure-play lithium producer, the company is heavily tied to a fluctuating lithium price. 

And Trading Economics data shows that lithium prices have fallen sharply, from around CNY 160,000 per tonne in early September, to around CNY 102,000 this week. That’s around a 24% decrease over the past month alone, and comes amid growing concerns of softer demand combined with a market oversupply.

But brokers are still bullish that the ASX stock can rebound over the next 12 months. Market Index data shows that the majority have a buy rating on the shares, and the $5.14 average target price implies a 77% upside at the time of writing.

Paladin Energy Ltd (ASX: PDN)

Paladin Energy shares have fallen just over 28% over the past month, to a trading price of $7.29 at the time of writing. The shares are also now down 28% year to date, with the majority of that decline occurring since late August.

The ASX uranium stock has faced strong headwinds this year due to geopolitical uncertainty and a softer sentiment for uranium companies. 

Renewed conflict in the Middle East, higher inflation data, and concerns about further interest rate rises have also seen some investors reduce their exposure to higher-risk shares like Paladin Energy.

Last week, the miner also announced that its first-quarter FY27 output had dipped to 1 million pounds, further slashing investor confidence.

However, the uranium company maintained full-year FY27 guidance for its Langer Heinrich Mine. 

Paladin Energy is targeting annual uranium production of 5.1 to 5.6 million pounds for FY27, with a production ramp-up expected in the second half of the year when it mines higher-grade ores.

Investors might be spooked, but the experts are still confident in the ASX stock.

Market Index data shows the majority of brokers have a strong buy rating on Paladin Energy shares. The $13.07 average target price implies the ASX stock could rebound 79% over the next 12 months, at the time of writing.

The post 2 ASX stocks down 28% to 30% in a month I'd buy right now appeared first on The Motley Fool Australia.

More reading

• 3 ASX mining shares to buy with 30% to 129% upside ahead: experts
• Buy, hold, sell: Mesoblast, PLS, and SEEK shares
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week

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.