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.

The WAM Leaders Ltd (ASX: WLE) fund is paying a dividend yield of 7.2%, fully franked, after its investment portfolio returned 14% for the year.

The 4.8 cent per share final dividend brings the total shareholder return for the year to 24.7%, while the grossed up dividend yield including franking credits comes in at 10.3%.

Fund has been performing well

Lead Portfolio Manager Matthew Haupt said it was a solid year.

He added:

The 2026 financial year was characterised by changing interest rate expectations, geopolitical tensions, global trade disruption and evolving views on the sustainability of artificial intelligence-led growth. These conditions created periods of volatility and meaningful shifts in market leadership, generating opportunities for active investors. The investment team and I adjusted portfolio positioning as conditions evolved, including maintaining exposure to areas of the market where we saw attractive risk-adjusted opportunities, while remaining disciplined on valuation. This approach enabled the investment portfolio to outperform the S&P/ASX 200 Accumulation Index during the year.  

Mr Haupt said the fund would remain focused on high-quality companies trading at attractive valuations.

He added:

Periods of market volatility can create opportunities for active managers, and the investment portfolio is positioned to take advantage of these opportunities as they emerge.

Chair Geoff Wilson said the strong investment performance contributed to a 153.5% increase in operating profit after tax of $161.8 million.

WAM Leaders has increased in value by 12% per year since listing in 2016, while also paying out dividends.

Resources and financials paying off

The fund’s investments include materials at 24.8%, financials at 20.9%, real estate at 13.6%, and consumer discretionary at 10.9%.

In terms of stocks, its largest holdings are in BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), and Wesfarmers Ltd (ASX: WES).

The fund also on August 10 announced a share purchase plan, allowing shareholders to subscribe for up to $30,000 in new shares.

The fund added:

The Board also announced the successful completion of a placement to professional and sophisticated shareholders. Bids exceeded the initial target raise which resulted in the placement bookbuild closing early and allocations being subject to scale back. The final placement size was increased to $225 million in response to the excess demand. The additional capital will enable the investment team to take advantage of investment opportunities for the benefit of all WAM Leaders shareholders.

WAM Leaders shares were changing hands for $1.33. The fund is valued at $2.06 billion.

The post This investment fund is paying a 7.2% dividend yield after solid results appeared first on The Motley Fool Australia.

More reading

• WAM Leaders lifts dividend as portfolio outperforms in FY26
• These ASX 200 shares could generate $10,000 per year in passive income
• How much is needed in superannuation to target a $2,000 monthly passive income?
• 2 ASX blue-chip shares offering big dividend yields
• WAM Leaders wraps $225m placement, lifts FY26 dividend

Motley Fool contributor Cameron England has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended BHP Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are only just inside the green at 9,076.8 points, up 0.04%, on Tuesday.

Among the 11 ASX 200 market sectors today, healthcare is screaming higher, up 7.1%.

This follows earnings releases from sector heavyweights CSL Ltd (ASX: CSL), Cochlear Ltd (ASX: COH), and Pro Medicus Ltd (ASX: PME).

Reliance Worldwide Corp Ltd (ASX: RWC) shares are the fastest risers of the ASX 200 today.

The Reliance share price is up 25% to $4.50 after a takeover offer for $4.75 per share.

Meanwhile on The Bull this week, two experts share their views on three ASX 200 shares.

Let’s take a look.

REA Group Ltd (ASX: REA)

The REA share price is $179.56, up 1.2% today and down 31% over 12 months. 

Tom Fairchild from Lazarus Capital Partners has a buy rating on this ASX 200 communications share. 

He said: 

Revenue from core operations of $1.793 billion in full year 2026 was up 7 per cent on the prior corresponding period.

Net profit after tax from core operations of $650 million was up 15 per cent. Earnings per share of $4.93 was up 15 per cent.

The final fully franked dividend of $1.73 was up 25 per cent.

Investors responded positively after the full year result was released on August 6.

But we believe the company still has ample room to improve its performance from here.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is $18.46, down 1.3% today and down 14% over 12 months. 

Andrew Wielandt from DP Wealth Advisory has a hold rating on this ASX 200 financial share.

Wielandt said: 

Suncorp provides insurance products and services. Higher interest rates and bond yields can be a tail wind for the company’s investment portfolio.

Gross written premiums of $15.407 billion were up 2.7 per cent in full year 2026 when compared to the prior corresponding period. Cash earnings of $1.042 billion were down from $1.452 billion in 2025.

An on-market share buy-back of up to $250 million is planned for full year 2027.

All insurance companies are challenged by appropriately pricing risk in a rapidly evolving climate change environment.

It remains our long term concern, so we retain a hold recommendation.

Suncorp shares began trading ex-dividend yesterday.

Northern Star Resources Ltd (ASX: NST)

The Northern Star Resources share price is $22.45, down 3.2% today and up 23% over 12 months. 

Fairchild has a sell rating on this ASX 200 gold share. 

He said: 

The company announced total gold sales of 1.543 million ounces for full year 2026, which was above revised group guidance of 1.5 million ounces.

NST disappointed investors after downgrading production guidance twice in fiscal year 2026 following weaker than expected operational performance.

The shares have fallen from $31.73 on March 2 to trade at $23.28 on August 13.

The company’s final investment decision regarding the Hemi project is targeted for late fiscal year 2027. 

In our view, other gold companies appeal more at this stage of the cycle.

Northern Star will release its full-year FY26 report on Thursday.

The post Buy, hold, sell: REA, Northern Star Resources, Suncorp shares appeared first on The Motley Fool Australia.

More reading

• How to find ASX shares that Warren Buffett might buy
• 3 reasons to buy this rebounding ASX 200 dividend stock today
• Experts name 3 ASX shares to buy this week
• Experts name 3 popular ASX 200 shares to sell today
• Reporting season half-time report: 5 lessons from August so far

Motley Fool contributor Bronwyn Allen 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 and Cochlear. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended CSL, Cochlear, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.