The two ASX shares in this article have been doing it rough in recent times.
While this is disappointing, Goldman Sachs thinks that it could have created a buying opportunity for investors.
Here's why the broker thinks these are among the best ASX shares to buy before they recover:
Domino's Pizza Enterprises Ltd (ASX: DMP)
The team at Goldman Sachs believes that this beaten down pizza chain operator's shares could be in the buy zone right now.
Especially given that its half year results demonstrated that its EBIT has stabilised after recent pressures. In addition, the broker feels that its shares are cheap based on its earnings per share (EPS) growth outlook. It said:
Reflecting the above, we change our financial forecasts moderately with sales ~0.1% and EBIT +/- ~1.5%. While we agree with the Company's renewed two-pronged focus on SSSG inflection and cost optimization, it is critical for the company to further illustrate a recovery pathway for Japan/France SSSG with clear check-points and timeline to boost investor confidence. DMP is trading at FY26 PE of ~18x vs FY25-27e EPS CAGR of ~19%.
Its analysts have put a buy rating and $37.30 price target the ASX share. Based on its current share price of $28.03, this suggests that upside of 33% is possible between now and this time next year. The broker also expects an attractive 3.7% dividend yield in 2025.
WiseTech Global Ltd (ASX: WTC)
Goldman Sachs thinks that WiseTech could be an excellent ASX share to buy following recent weakness.
It is a leading global provider of software solutions to the logistics services industry. Its CargoWise One platform is a market leading solution that is used by many of the largest logistics providers in the world.
Commenting on the company, the broker said:
We are positive on WiseTech's strong competitive position which contributes to efficiency gains for LGFF's. Over the short-to-medium term we expect WiseTech's earnings profile to benefit from new product releases such as Container Transport Optimizer, as well as the company continuing to grow penetration of their core business. We expect WiseTech will continue to focus on product development over the long-term, which should underpin margin expansion and earnings growth. Hence, with the risk/reward profile skewed to the upside we are Buy rated.
Goldman has a buy rating and $128.00 price target on its shares. Based on its current share price of $93.99, this implies potential upside of 36% for investors.
