When share prices experience a sharp decline, it often signals short-term concerns rather than fundamental issues with the company. This can create an opportunity for investors who are willing to look beyond the immediate noise and focus on long-term potential.
With that in mind, here are three ASX shares that have seen a significant drop and could be worth considering if you have $10,000 to invest:
Accent Group Ltd (ASX: AX1)
Accent Group shares have been under pressure, with a 66% decline over the past 12 months. The company owns and operates a range of footwear and apparel brands, with a large store network across Australia and New Zealand. Like many retailers, it has faced softer consumer conditions following interest rate increases.
This has weighed on sentiment, but the underlying business remains active. Accent continues to expand its store footprint and build out its brand portfolio, which includes both owned and licensed labels. Retail conditions can shift quickly, and any improvement in consumer spending could support a recovery in its performance.
Cochlear Ltd (ASX: COH)
Another ASX share that has experienced a significant pullback is Cochlear. It is a global leader in hearing implant technology, with products used in multiple markets around the world. Its shares are down 65% over the past 12 months, with a good portion of this decline occurring this month following a poor update.
Cochlear recently downgraded its FY 2026 underlying net profit guidance range to $290 million to $330 million (from $435 million to $460 million). Management revealed that this was due to softer trading in developed markets, driven by hospital capacity constraints and a decline in referrals from the hearing aid channel.
While this was disappointing, it doesn’t change the longer-term picture. Demand for hearing solutions is being supported by ageing populations and increasing awareness. In addition, Cochlear continues to invest in research and development, maintaining its position at the forefront of its field.
With strong market positioning and long-term demand drivers, this could be an ASX share to buy while it is down.
Temple & Webster Group Ltd (ASX: TPW)
Temple & Webster shares are also down around 65% over the past 12 months. It operates an online furniture and homewares platform, benefiting from the gradual shift toward e-commerce in its category.
Spending on home-related items can be cyclical, influenced by housing activity and broader economic conditions. This can lead to periods of volatility in both performance and share price, especially when interest rates increase.
Despite this, the long-term trend toward online retail remains in place, and Temple & Webster is positioned to capture a larger share of the market. This could make it an ASX share to buy for patient investors.
Investing in any share requires careful consideration, especially during periods of market volatility. While the above companies show potential, it’s essential to conduct thorough research and assess your own investment goals and risk tolerance.
Some investors may find these shares appealing due to their long-term growth prospects, while others may prefer to wait for more stable opportunities. The key is to remain informed and make decisions based on a clear understanding of the market and the companies involved.
By focusing on fundamentals and long-term trends, investors can identify opportunities that may not be immediately apparent in the short term. This approach can help navigate the ups and downs of the stock market and potentially lead to more rewarding outcomes.
