Time to Buy 3 Cheap Beat Up Large Cap Stocks

Added: 2026-05-25

[00:00:00]What if I told you that some of the biggest and best stocks on the ASX are trading at dirt cheap prices right now?

[00:00:06]These stocks have shown throughout history that they won't stay cheap for long, and you've probably got at least one of them in your portfolio. But is this now the right time to pounce? Well, we'll answer that and more. Backed by Australia's leading government accredited share trading, education, and insights that are sought after by major media outlets Australiawide. I'm Janine Cox joined by senior analyst Pedro Binales and we are wealth within. Good evening.

[00:00:34]>> Good evening Janine. Great to be with you.

[00:00:36]>> Yes, great to have you on the show again Pedro. Thanks so much for joining us.

[00:00:40]All right, let's get straight into it.

[00:00:42]First up is Forscq Metals. That's one of our favorites. Um you can see there on the chart, this is one of the world's lowest cost iron or producers with strong cash flow and high dividends.

[00:00:53]Green energy investments provide long-term growth potential. Now, we can see that FMG has been setting up for weeks and now has broken out last week out of this um consolidation and short-term correction that came back in March 2026 and has moved up really nicely and strongly. We've looked at this horizontal line across here. We can see that there's some resistance there, but it looks like Fortissue's got the volatility and support behind it to push through that and head higher. Pedro, what are your thoughts and where do you think it's likely to go to?

[00:01:26]>> Yeah, I think that this is one of the the cheaper ones out of the the big cap miners. We've seen BHP and Rio really shoot off and uh really at blue sky at the moment, yet FMG has lagged. So I wanted to highlight here on the chart uh what usually happens because when I overlay uh the the price chart of BHP uh you can see that BHP is really you know like I said has taken off quite uh strongly. If I move that down it has now traded above those previous highs is in blue sky yet FMG hasn't. So when we look for for clues in the history of FMG and how they move together, you can see that they largely do move together. However, there's this period back here in 2016 where we saw BHP continue to rise yet FMG lagged it. It actually was trading down while BHP was trading up. However, eventually it caught up and it ended up trading from that low ended up trading around that 200%. So it does catch up over time uh as it's doing now. So BHP it it tracked it quite nicely. BHP has taken off. If I just take off BHP there and just focus on FMG solely, it has gone through a huge sideways consolidation. We've got those two uh levels there at around that $26 and on that lower band around that $14. It's trading up on that upper band. And I agree with you, Janine. uh the fact that it is trading a around those $23, it looks like a breakout is about to to happen. And if that does occur, we can see further upside possibly, you know, to new all-time highs, which would have it trading well above that $30. So, great opportunity here, I think, for FMG. Yeah, it's interesting because I actually thought that it was going to come back and test that low at around$1850 thereabouts and potentially take that out, but since it's gone through, it's at the moment telling us otherwise. And I'd just like to see it continue above that um this week. I'm not sure where it's at today, but it would be great to see it push through that level and keep going. But the next one we've got, this one's actually Goodman Group. Now, Goodman Group's also um one of these major stocks that people follow all the time. A global leader in logistics and data center property, benefiting from AI infrastructure and e-commerce growth, strong development pipeline and institutional um backing position. Um it positioning it well for future growth.

[00:04:05]So, that's a really good property stock or real estate stock if people want to get into that. Before I get into this one any further, first of all, I just want to say that you've got to keep an eye on this book. If you haven't picked it up yet, now's the time to do it. Now, this is Dale's book, How to Beat the Managed Funds by 20%. This has actually saved a lot of people in the last uh global financial crisis that occurred.

[00:04:29]People bought this book and for you get it free, just pay the postage. Um it actually we had people coming in and shaking Dale's hand thanking him for for the book because it actually saved the their um their their wealth from the the fall that followed that because they were buy and hold investors no more now that they've got that information. So um if we just now go back to GMG and we have a look at how it's unfolded over time. Pedro, I'll get you to chime in in a minute, but first of all, just looking at how the angle of that trajectory has changed, but this the angle of the rise is not really a concern at the moment because it has already come back quite a way. We've seen a bit of a pullback into that low there at around uh $25, which is okay. It's about 38% fall, which is not out of the question for this stock.

[00:05:19]It's typical of what it's done. the angle has increased and I'll get you to chat about that Pedro in a moment, but it's looking like that level is holding and really quite strong for GMG.

[00:05:29]>> Yeah, that that level of of rise, that gradient that uh GMG has been on since that low uh really in in 2009 has increased exponentially. So we've got that gradient of rise uh coming out of that GFC and then now we can see that it has been seen a pivot recently uh from 2020 when when co happened and now it's respecting this uh more steeper gradient of rise and look I really like FMG this is looking quite nice and that AI infrastructure and e-commerce two very strong sectors with good capitalized annual growth uh you know coming up obviously People are buying more stuff online. So there needs to be more stuff stored in in warehouses and AI infrastructure. We need to increase the amount of data centers obviously for that uh AI race. So two two uh sectors that are not going anywhere basically.

[00:06:28]So I'd like to see uh GMG bucked buck that uh that down momentum that that is happening at the moment. If you were a more conservative trader, you might want to wait for that break above that $32.

[00:06:42]Now, on the on the uh weekly chart, there is some very strong support around that $24. Not sure if it's going to come back down to that $24. You might get another chance, but if not, there might be some resistance around that $34, but again, like I was saying, it needs to break that that downward momentum. We can see that it did hit its head a couple of weeks ago around that. So, I'd be looking for an opportunity uh soon uh because we can see what happens when FMG breaks those prior down momentum. It just goes on a nice sustained run uh where you can uh you know pick up the dividends along the way as well.

[00:07:19]>> All right. Now, thank you for that, Pedro. Now, it's time for our third stock, which no surprises for this introduction. It's CBA. We talked about previously. Um looking at the way that this stock has unfolded, it looks like now given the way that it was sold off almost a 10% fall uh last week to the close I think and it's come down to it's at 159 or thereabouts. It fell all the way down to 151 or 1590 which actually shocked me as to how fast that selloff happened. It's it's not a surprise in terms of the you know the fact that AI and the big institutions and are controlling our market to the degree that they are now because in prior times it was a lot of mom and dad investors.

[00:08:04]Now people are getting exposure to these sort of stocks through ETFs which just hands over greater control to the big institutions.

[00:08:11]um people have to think about their super as well because these big stocks are obviously taking a significant position in people's super superanuation funds and and if the if it's not just CBA's um you know reporting that's done this if it's also the tax the concerns about what's going on in in our economy and the and the new budget that's been released and how that's going to impact banks going forward um we could see CBA come down to this the angle of this sort of level around that 130 mark. But, you know, I've I've um Pedro and I were talking um earlier about CBA and and I I guess the worst case scenario from a a theoretical point of view is around this 110 um for me, but I I had never envisioned CBA coming back to that sort of level. I would have thought sort of worst case scenario might be that 130 140. Nice pullback would be to that zone there before we get another opportunity to get in again. What do you think, Pedro?

[00:09:12]>> Yeah, I mean, the biggest fall in CBA's history when you know, let that sink in.

[00:09:18]Uh, when you think about how far CBA goes back and even around the GFC, which was directly correlated to banks, it was a a a banking issue over in in in America. So, I wanted to have a look at quickly what happened to CBA during this GFC. This is uh the the high in 2007 and nowhere were the the the falls as much as 10%. It was a gradual fall. There was 2% around there. Then we we had another 3%. So there was a lot of indication here uh that it was just a sustained downward momentum. And like you like you were saying before, Janine, I'm sure that reading that book mentioning momentum and trend lines, how that would have saved a lot of people from that fall. You only need to apply a bit of a momentum to see that the momentum was changing on CBA and look how much further it fell. There was a lot of sideways price action where you would have been locked in here. if you want if you thought that it was cheap around that um you know $40 well you'd be thinking again because it was going to get a lot whole lot cheaper at $26.

[00:10:32]So just you know relating that to to this period right now it's not quite the same but it just shows how volatile times times have become to have CBA drop 10% on on just something around you know they might have missed earnings just by a little bit that the market is not forgiving uh companies uh you know very um very uh well I would say so uh if it does break below that level here at around thatund 40 150 then we could see further downside like you said to around that 110. Uh but this could be a nice opportunity to pick it up if it does bounce off that 150. It could just be gone through a bit of a sideways consolidation like um like we have seen here over in 2021 where it just traded sideways uh for about couple of years.

[00:11:22]So, uh, interesting times for CVA, good, solid bank. It's, uh, the P ratio is looking nice, good dividends. Uh, could be an opportunity coming up.

[00:11:32]>> Yeah. So, watch out for CBA. Um, potentially going to get a bit cheaper for you. If you haven't bought it yet, there are probably better opportunities to come. Now, if you want more hot stock tips, make sure you check out our video Trump No Peace Deal: Three ASX War Stocks to Buy ASAP.