The ASX lost around AU$60 billion on September 14, as shares plunged across the board. Real estate and technology sectors were among the hardest-hit, with S&P/ASX 200 A-REIT [XPJ] and S&P/ASX 200 Information Technology [XIJ] falling more than 3% and 4% respectively.
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What’s behind the market plunge?
The heavy sell-off followed hotter than expected inflation data from the U.S. With inflation issues persisting, central banks across the globe are anticipated to continue raising interest rates.
Financial services group, Nomura is now expecting the Reserve Bank of Australia to raise its benchmark rate by 0.5% at its next meeting. That’s higher than the 0.25% other analysts had previously been expecting.
When interest rates rise, borrowing becomes more expensive.
As a result, fast growing technology companies can find it more difficult to access capital to fuel expansion.
Meanwhile, expensive loans can diminish sales in the real estate market, as consumers struggle to obtain mortgages.
Shares market sell-off presents good value buying
For investors with long-term goals, the stock market sell-off presents opportunities to buy the dip, especially within the real estate and technology sectors, which were hit hard during the day’s trading.
According to TipRanks insights, Goodman Group (ASX:GMG) and Megaport Ltd. (ASX:MP1) shares are worth considering now, for investors seeking exposure to ASX real estate and technology sectors, respectively.
Goodman Group’s share price forecast shows 24% upside
Sydney-headquartered Goodman is a global real estate group with a presence in Australia, New Zealand, Europe, Asia, and America. The group’s main focus is industrial and business property. Goodman has been in business since 1989, meaning the company has been through several recessions before and survived.
Goodman shares fell about 5% during the day’s trading. The stock has dropped about 30% year-to-date. According to TipRanks’ analyst rating consensus, Goodman stock is a Moderate Buy based on six Buys and four Holds. The average Goodman share price forecast of AU$23.28 implies over 24% upside potential.
Goodman stock is receiving favourable mentions from financial blogs. TipRanks data shows that financial blogger opinions are 100% Bullish on Goodman, compared to a sector average of 68%.
Megaport share price prediction suggests nearly 40% upside
Brisbane-headquartered Megaport provides software-defined networking solutions to a global customer base. The business has a footprint across Asia, Europe, America, and other regions.
Megaport shares dropped 10% during the day’s trading. The stock has declined about 60% year-to-date. However, according to TipRanks’ analyst rating consensus, Megaport stock is a Moderate Buy based on six Buys and three Holds. The average Megaport share price prediction of AU$10.87% implies over 38% upside potential.
Megaport scores a nine out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
Moreover, financial blogs are mentioning Megaport stock favourably. TipRanks data shows that financial blogger opinions are 84% Bullish on Megaport, compared to a sector average of 65%.
Final thoughts
Goodman and Megaport rank among the best ASX shares in real estate and technology respectively; and look to offer substantial upside potential following the recent sell off.
