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2 former ASX darlings are ready to buy again now: experts

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Stocks have taken a battering this year, and this has meant many ASX shares that made investors wealthy in the past have recently dragged portfolios down.

But maybe it’s time to buy some of those stocks again, to take advantage of any return to past glory.

A couple of experts this week had some ideas about which ASX shares might be ready for a revival.

‘Highly profitable’ and low PE ratio

Software maker Hansen Technologies Limited (ASX: HSN) handsomely rewarded long-term investors in the past.

The ASX stock returned more than 550% in the 10 years ending November 2021.

But unfortunately it has dropped 18% in just four months since. 

Spotee Connect analyst Chris Batchelor reckons this presents a buying opportunity for those willing to hang on for the long haul.

“Target is to grow forecast revenue from about $300 million in fiscal year 2022 to $500 million by fiscal year 2025, partially via strategic acquisitions,” he told The Bull.

“Hansen is highly profitable and was recently trading on an attractive price/earnings multiple of 17 times.”

The company, which makes billing and customer data software, is not monitored by many analysts. But those that do seem to like it.

According to CMC Markets, two of three analysts rate Hansen shares as a “strong buy”, while the third one labels it as “hold”.

The ASX share closed Monday at $5.31 each, up 1.14% on the day.

‘Attractive investment’

Fruit and vegetable producer Costa Group Holdings Ltd (ASX: CGC) has taken investors on a couple of wild rides.

Its share price quadrupled from 2015 to 2018, then doubled from end of 2019 to April last year.

Unfortunately, unfavourable guidance to the annual general meeting saw Costa shares fall 22% in one day last May.

Yikes.

But Bell Potter Securities investment advisor Chris Watt reckons it’s time to take another look at the produce wholesaler.

“Costa Group is the largest fresh produce company in Australia, with an estimated market share above 15%,” he said.

“It supplies fresh fruit and vegetables to the major Australian supermarkets.”

The current depressed stock price presents a major buying opportunity, Watt’s team has calculated.

“We view Costa Group as an attractive investment, given international berry expansion to China is running according to Costa’s original five-year plan, and appears set for significant growth,” he said.

“Further, Costa is well positioned to capitalise on high growth in emerging product categories, such as blackberries.”

Other analysts are fairly positive on the ASX stock, with nine of 13 analysts surveyed on CMC Markets rating it as either a “strong” or “moderate” buy.

Costa shares finished Monday at $2.99 apiece, a gain of 1.36% yesterday.

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