2 ASX shares highly recommended to buy: Experts

When one expert rates a ASX share as a buy, that is something to take note of. When there are numerous analysts who rate a company as a buy, that could suggest that there’s a clear opportunity being presented by the market.

I’m going to look at two ASX shares which some of the highest number of analyst buy ratings on the ASX.

We’re not just talking about one or two positive ratings, but several, with most/all of the ratings being a buy.

Let’s get into those exciting ASX shares.

Coles Group Ltd (ASX: COL)

According to the Commsec collation of analyst ratings on the business, there are currently 15 buys.

The business recently reported its FY26 half-year result, which was pleasing to the broker UBS. The broker said that the HY26 operating profit (EBIT) and net profit (NPAT) were both in line with market expectations.

However, the trading of the first seven weeks of the second half of FY26 of growth of 3.7% was below UBS’ expectations of 4.4% growth.

UBS believes that execution and price trust favour Coles over its main competitor because of “promotional effectiveness (fewer, better), while recently delivered investments (e.g. Witron ADC (availability), Ocado CFCs (online)) provide cost leadership and confidence about CY26E sales growth.”

The broker also prefers Coles over Woolworths Group Ltd (ASX: WOW) because there is a wider-than-average price/earnings (P/E) ratio gap based on the one-year forward earnings.

UBS predicts Coles could generate a net profit of $1.25 billion in FY26, translating into a forward P/E ratio of under 23, at the time of writing.  

Universal Store Holdings Ltd (ASX: UNI)

According to the Commsec collation of analyst ratings on the business, there are currently 11 buys.

UBS describes Universal Store as a specialty youth casual fashion retailer, operating under the Universal Store, Perfect Stranger and Thrills store banners.

The broker noted that Universal Store’s operating profit (EBIT) and net profit beat analyst expectations with stronger sales and a higher gross profit margin.

UBS explained why it’s optimistic about the ASX share:

Retain buy rating given confidence in the revenue & gross margin outlook, driven by market share gains from strong execution, and leveraging the generally more resilient youth consumer.  

We remain confident in the UNI revenue outlook due to merchants that judiciously adapt product ranges & persistently strong in-store execution, which drives customer conversion & basket size expansion. These drivers support sustained market share gains in the fragmented youth apparel market.

A secondary tailwind is the youth consumer where, based on UBS Research, spending intentions are stronger than the all-age consumer and apparel & footwear categories are of greater importance (remain strong & above the all-age consumer).

Broker UBS estimates that Universal Store could generate a net profit of $43 million in FY26. That means, at the time of writing, the Universal Store share price is valued at 15x FY26’s estimated earnings.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.