'Attractive recovery play': 2 ASX 200 shares ready to rock after a SHOCKING 2023

These stocks are cheap now but are set to have a massive 2024 with increased earnings.

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three Lendlease builders on construction site

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Although you should never try to time the market, if possible, it is rewarding to buy individual shares when they are cheap.

After all, every cent discounted is potentially a cent that contributes towards future gains.

In this spirit, Baker Young managed portfolio analyst Toby Grimm named two S&P/ASX 200 Index (ASX: XJO) shares to buy that were pummelled last year, but start 2024 with high hopes:

115% boost in earnings?

Misery is the only way to describe what long-term investors in Lendlease Group (ASX: LLC) must be feeling.

The share price has now dived more than 62% since the pre-COVID peak four years ago.

The steep rise in interest rates over the past two years has not helped the real estate development business.

Grimm, though, reckons LendLease is finally ready to turn a corner in 2024.

For one, management has sold off unprofitable assets and is refocusing the company's energies on its traditional strengths.

"This enabled the company to manage debt levels and finance new construction projects, which are key to delivering an anticipated 115% improvement in earnings per share in fiscal year 2024," Grimm told The Bull.

"An earnings recovery and potential cuts in global interest rates leave LendLease as an attractive recovery play in 2024."

According to CMC Invest, three of five analysts currently rate the ASX 200 stock as a buy.

The ASX 200 outfit regretting not making the deal

Ramsay Health Care Ltd (ASX: RHC) investors are also feeling queasy in their tummies as well.

About 18 months ago a private equity consortium made an offer to buy their shares for $88.

Now, long after the suitors departed without a deal, the Ramsay share price is languishing in the low $50s.

Yikes.

However, Grimm is optimistic for Ramsay investors from this point on.

Similar to LendLease, the analyst is bullish on the private healthcare provider's move to offload its Asian hospital business for about $2 billion.

"The Ramsay-Sime Darby Health Care sale enables RHC to reduce debt and improve firm-wide profit metrics. Also, Ramsay could explore selling other assets," said Grimm.

"With lower interest costs ahead, increasing patient demand and further progress on reducing business costs, we expect Ramsay to deliver a 35% increase in earnings per share in fiscal year 2024."

Should you invest $1,000 in Lendlease Group right now?

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Motley Fool contributor Tony Yoo 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.

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