3 ASX 200 bargain buys heading into the new year

It's been a modest year for the S&P/ASX 200 Index (ASX: XJO), rising approximately 6.3%. 

The team at The Motley Fool have been covering top performers, undervalued shares, and everything in between. 

For investors setting their sights on quality companies that could be undervalued heading into the new year, here are three ASX 200 stocks to consider. 

Aristocrat Leisure Ltd (ASX: ALL)

This ASX 200 stock is an Australian gaming technology company licensed in around 340 gaming jurisdictions in more than 100 countries.

Aristocrat offers a range of products and solutions in the gaming space including poker machines and casino management systems.

In 2025, its share price tumbled almost 16%. 

Despite this, the company has a strong market presence both in Australia and the US. 

Furthermore, it boasts healthy financials. 

In November, the gaming company reported: 

• Revenue growth of 11% (8% in constant currency), driven by market share gains across the portfolio and the inclusion of NeoGames for the full 12 month period.
• 12% growth in normalised NPATA to $1.6 billion (9% in constant currency). 
• EBITDA growth of 15.6%

It seems brokers also view this ASX 200 stock as undervalued. 

Bell Potter has a buy rating and $80.00 price target, indicating an upside of more than 38%. 

REA Group Ltd (ASX: REA)

REA Group has been hotly covered here at The Fool over the past months. 

The company behind online real estate marketplace realestate.com.au has seen its share price fall 30% since August. 

It now appears to have fallen below fair value, and could present a buy low opportunity for investors. 

The ASX 200 stock still maintains a dominant market position here in Australia. 

Earlier this month, Macquarie placed a $220.00 price target on REA Group shares, which indicates an upside of almost 20%. 

However the broker did note the risk of Australian rate hikes could present a headwind. 

That being said, I still see this ASX 200 stock as trading below fair value. 

Cochlear Ltd (ASX: COH)

It wasn't a great year for many ASX healthcare stocks, including Cochlear.

Cochlear's main products include cochlear implants, bone-anchored hearing devices, and associated sound processors.

Its stock price is down more than 11% over the year. 

However this ASX 200 stock maintains a blue-chip status as the world's leading cochlear implant device manufacturer with around half of global market share.

Its global positioning will help it benefit long term from ageing populations. 

UBS currently has a buy recommendation with a $350.00 price target, indicating an upside of more than 34%. 

The post 3 ASX 200 bargain buys heading into the new year appeared first on The Motley Fool Australia.

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear. The Motley Fool Australia has recommended Cochlear. 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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