It might seem strange but I reckon a good place to start when looking for stocks to buy is at the bottom of the performance league tables. With most attention paid to the top performers, it can take a while for investors to notice some of the hidden gems at the other end of the table.

However, by getting in early, it’s sometimes possible to bag yourself a bit of a bargain.

Over the past 12 months, Playtech (LSE:PTEC) and the London Stock Exchange Group (LSE:LSEG) have seen their share prices fall 63% and 27% respectively. So what’s going on? Have two potentially lucrative buying opportunities emerged?

Not all that it seems

Playtech provides software and technology solutions to the gambling industry. But since January 2025, its share price has been the second-worst performer on the FTSE 250. However, most of the fall occurred in May, when the stock went ex-dividend. The group returned $5.73 a share to shareholders following the sale of one of its businesses.

But that’s not the full story. There’s another issue that resulted in its share price falling 22.5%, when details emerged in October of legal action being brought by Swedish rival Evolution. The lawsuit claims that Playtech hired a firm of private investigators to discredit the group. The British company describes the allegations as “wholly untrue”.

Citi says Playtech’s shares are undervalued, even after taking into account a potential adverse outcome from the legal action. The broker has a 355p price target, around 28% higher than today’s (23 January) share price. The consensus of analysts is 418p.

Another potential issue is that the sector doesn’t appeal to everyone, meaning there’s a smaller pool of potential buyers. The Gambling Commission reckons 1.4m people in the UK have, or are close to having, an unhealthy addiction to betting.

And in the November budget, taxes for some online bets were increased significantly. The group said there would be an impact on its EBITDA (earnings before interest, tax, depreciation, and amortisation) of “high-teens millions of euro”.

As mitigation, the group explains it has customers in many international markets. Having said that, others could copy the UK government’s example.

For those comfortable with the industry, I reckon the stock’s worth considering. It has an impressive track record of growth and a geographically diverse customer base in both regulated and unregulated betting markets.

A British institution

Despite its name, the London Stock Exchange Group’s about more than running the UK stock market. It also provides financial data, analytics, and risk management solutions to around 44,000 customers in over 170 countries.

One of its strengths is its impressive gross profit margin (86.8% in 2024) reflecting the specialised nature of its services and its less price-conscious blue-chip client base.

Admittedly, its shares aren’t cheap. But if it can deliver the 2027 earnings forecast of analysts, they’re not expensive by historical standards.

Obvious threats include a cyber security attack. And fears that artificial intelligence (AI) could damage its business are probably behind its 2025 share price drop. Rivals offering similar – but cheaper – alternative services could emerge.

But the group has huge amounts of data at its fingertips, which is the one thing that AI software needs in spades.

On balance, I still think the stock’s one to consider.