3 reasons this sold-off ASX 200 share is primed for a big rebound

A leading expert believes this ASX 200 share is well placed to outperform. 3 reasons this sold-off ASX 200 share is primed for a big rebound You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources , and more. Learn More The S&P/ASX 200 Index (ASX: XJO) is up 5.2% over the past year, with this 'sold off' ASX 200 share up 48.0% in that same time. The company in question is Life360 Inc (ASX: 360), which develops family-oriented software for location sharing. In afternoon trade today, shares in the tech company are up 1.7%, changing hands for $20.84 apiece. So, if it's up 48% in a year, why do I say the ASX 200 share has been sold off? Well, that's because, like many companies, Life360 shares have suffered from the uncertainties raised by the looming trade war between the United States and China. This saw the Life360 share price crash 33.4% from $25.14 on 19 February to $16.74 a share on 7 April. Although shares have come roaring back from those recent lows, the stock remains down 17.1% since 19 February. But according to Hayden Beamish, chief investment officer at Endeavour Asset Management, the past three weeks' rebound looks to have legs (courtesy of The Australian Financial Review). ASX 200 share tipped for strong earnings growth Endeavour Asset Management has been buying sold-off ASX companies impacted by the Trump tariff campaign, which have fallen "30% to 50% but show no earnings impact". Beamish said he looks for "companies with recurring revenues, net-cash balance sheets and wide moats – such as high-quality technology and industrial names". Asked which stock his fund owns that he likes, which most people may not have heard of, he named ASX 200 share Life360. "Life360 ticks the box. It's a family tracking app that serves over 40 million paying users, yet the share price is still down 25% from its recent high," he said. As for why this stock is one to buy, Beamish said: Next year consensus [earnings before interest, taxes, depreciation and amortisation] EBITDA is forecast to grow by 40% as average revenue per user rises from US$1.50 to US$1.80 per month and churn stays below 3%. A second reason he's bullish on Life360 is the company's impressive free cash flow conversion. "Free cash flow conversion should exceed 80% of net profit and net debt is minimal," he said. And the third reason Beamish is optimistic on the outlook for Life360 shares is its favourable risk-reward ratio. According to Beamish: At about 35 times forward EV/EBITDA, the risk to reward ratio is skewed in our favour thanks to strong network effects, sticky subscriptions and limited direct competition beyond big-tech safety features. Life360 share price snapshot Taking a step back, the Life360 share price has been a very strong performer over the past five years, with the ASX 200 share up 980% since 1 May 2020.