ASX share prices are always changing, giving investors the chance to invest at compelling value.

The recent reporting season provided deep insights into business profitability, allowing investors to judge whether ASX shares are overvalued or undervalued.

The below two ASX shares are some of the most backed ideas by analysts right now.

PLS Group Ltd (ASX: PLS)

PLS Group is one of the world’s largest lithium miners. It owns 100% of the world’s largest independent hard-rock lithium operation, the Pilgangoora operation in Australia and the Colina lithium project in Brazil. It’s also integrated into the lithium value chain with its joint venture with POSCO in South Korea, which manufactures battery-grade lithium hydroxide.

According to Commsec, the company currently has 19 analyst ratings. Of those ratings, 10 are a buy, five are a hold, and four are a sell. While that’s a mixed bag, the majority are positive ratings.

FY26 saw the company come roaring back as the lithium price bounced back following difficulties in FY25, which then huge flow-on impacts to the financials.

The ASX share’s realised (sold) price for its lithium soared 121% to US$1,488 per tonne, which combined with a 17% rise in the volume of lithium sold to 891.6kt. This led to revenue jumping 152% to $1.9 billion.

Underlying operating profit (EBITDA) rocketed higher by 1,067% to $1.14 billion and net profit after tax (NPAT) grew 369% to $526 million. It also reported that its cash margin from operations improved 608% to $1.36 billion.

Not only is the company capitalising on the current strength of the lithium price, but the P2000 and Colina projects are progressing, which could unlock the next level of production.

Ongoing demand for lithium amid electric vehicles and other battery requirements could help drive the lithium price higher, or at least absorb the higher supply without detrimental impacts.

AMP Ltd (ASX: AMP)

AMP is another ASX-listed company with broad expert backing. The ASX financial share offers several services, including banking, investments, and superannuation. It also has increasingly important Chinese partnerships.

According to Commsec, there are currently nine analyst ratings on the business, with seven of those being buy.

The FY26 half-year result was another impressive result for a business that’s steadily turning things around after a difficult several years.

It said that in the six months to 30 June 2026, underlying net profit grew 33% to $174 million, with statutory net profit after tax (NPAT) rising 57% to $154 million.

Assets under management (AUM) increased to $167.6 billion, reflecting growth in AMP’s wealth and retirement business.

The platforms’ net cash flows increased 33% to $3.1 billion for the half, and superannuation and investments delivered its first positive half-year net cash flow result since 2017.

Perhaps most importantly, the contribution from AMP’s China partnerships more than doubled to $56 million, supported by CLPC AUM growth to approximately RMD 2.6 trillion.

With that result, the ASX financial share announced an additional $150 million share buyback and an interim dividend of 3 cents per share.

According to the projection on Commsec, the AMP share price is valued at 19x FY26’s estimated earnings.

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

More reading

• These are the 10 most shorted ASX shares
• 5 ASX 200 shares upgraded by experts this week
• AMP vs Perpetual: Which ASX financial stock is better value?
• Buy, hold, sell: Telstra, AGL, PLS shares
• GPT Group vs Dexus: Which ASX REIT is better value right now?

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a lot of ASX dividend shares for investors to choose from on the Australian share market.

To narrow things down, let’s take a look at one that could be among the best to buy as October approaches fast.

Which ASX dividend share?

The dividend share that could be a best buy is HomeCo Daily Needs REIT (ASX: HDN).

It is a REIT with a focus on large format retail, neighbourhood centres, and health and services.

The company counts Coles Group Ltd (ASX: COL), Wesfarmers Ltd (ASX: WES), and Woolworths Group Ltd (ASX: WOW) as tenants.

Upgraded

According to a note out of Bell Potter this morning, the broker has upgraded this ASX dividend share on the belief that it is significantly undervalued. It said:

As the dust settles from reporting season we revisit HDN, upgrading to a Buy recommendation on relative valuation, supported by earnings trajectory and nondiscretionary retail fundamentals. 

Valuation is oversold – HDN trades -2 std deviations below its 5-year average discount to NTA (-31.4% vs -13%) and at 12.0x P/E, a discount to the passive REIT peer average of 14.1x. The stock has fallen -13.3% since results and underperformed peers (HDN -19.1% vs XPJ -14.9%) over 3 months, a reaction we view as disproportionate to the underlying -2.2% FY27 earnings decline. Indeed, historically +2 or -2 standard deviations has been a strong indicator for externally managed REITs mean reversion and outperformance.

Bell Potter thinks now could be a good time to buy given its forecast for earnings to bottom in FY 2027. It adds:

We expect earnings to trough in FY27, with growth returning in FY28 (+2.5%) as the incremental mark-to-mkt of debt costs lessens, asset are divested accretively, and developments complete at >7% target ROIC.

It also believes longer term retail undersupply is supportive. Bell Potter said:

Retail supply completions have run well below trend (90k sqm p.a. average FY22-25 vs a 158k sqm 10-year average), driving vacancy down and rental growth up across the neighbourhood/ LFR formats HDN is exposed to, supporting ~+6% re-leasing spreads and further cap rate compression through 2029.

Big returns

The note reveals that Bell Potter has upgraded the ASX dividend share to a buy rating (from hold) with a trimmed price target of $1.20 (from $1.25).

Based on its current share price of $1.05, this implies potential upside of 14.3% for investors over the next 12 months.

The broker is also expecting dividends of 8.6 cents per share in FY 2027 and FY 2028, before an increase to 8.8 cents per share in FY 2029.  This represents dividend yields of 8.2%, 8.2%, and 8.4%, respectively.

Commenting on its upgrade, Bell Potter said:

HDN has materially underperformed and screens as oversold, trading at an 8.1% div yield and 12.0x P/E (vs 6.9% & 14.1x passive REIT sector avg), despite FY27 marking the trough in earnings. We see growth returning in FY28 (+2.5%) with stable topline growth supported by favourable retail sector supply/demand dynamics. We upgrade HDN to a Buy recommendation following its recent underperformance (- 19.1% last 3 months vs XPJ -14.9%).

The post Is this the best ASX dividend share to buy in October? appeared first on The Motley Fool Australia.

More reading

• HomeCo Daily Needs REIT announces September 2026 quarterly distribution
• How to build a $50,000 passive income from ASX shares
• Buy, hold, sell: Regal Partners, HomeCo Daily Needs REIT, APA Group shares
• How much passive income can I earn off an $800,000 superannuation balance?
• How to make $26,000 of passive income from ASX shares

Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended HomeCo Daily Needs REIT and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are down 2% over 12 months.

Yesterday, the ASX 200 dropped sharply after the Reserve Bank announced a widely anticipated 0.25% increase to the official cash rate.

Australia’s cash rate is now at a 15-year high of 4.6%.

Investors looking for opportunities in today’s weak market might like to heed the advice of experts.

Let’s check out some new ratings on three ASX 200 shares.

Premier Investments Ltd (ASX: PMV)

The Premier Investments share price is down 40% over 12 months. 

Bell Potter has a buy rating on this ASX 200 consumer discretionary share. 

Analyst Chami Ratnapala said: 

Premier Investment’s FY26 result was in line with expectations, with Premier Retail EBIT (Pre-AASB 16 ex-Peter Alexander UK and other non-recurring items) of ~$176m pre-reported in Aug.

The incremental update in the result was the early FY27 trading with global sales and gross profit $ (on a constant currency basis) for the first 7 weeks +1% on pcp.

While we expect a period of slow growth for PMV near to medium term, we view PMV’s forward multiple as attractive considering the Premier Retail division together with PMV’s equity investments, land bank and cash position while retaining a strong balance sheet supportive of M&A.

New Hope Corporation Ltd (ASX: NHC)

The New Hope Corporation share price is up 42% over 12 months. 

Michael Gable from Fairmont Equities has a hold rating on this ASX 200 coal share.

On The Bull, Gable said: 

I remain bullish about this thermal coal producer, as the war in Iran is leading other countries to lift demand for thermal coal to offset instability in gas markets.

The company generated saleable coal production of 11.5 million tonnes in full year 2026, up 7.6 per cent on the prior corresponding period.

Production was above market expectations as was the final, fully franked dividend of 30 cents a share.

The share price uptrend since early July is sustainable, in my view.

Xero Ltd (ASX: XRO)

The Xero share price is down 63% over 12 months. 

Gable has a sell rating on this ASX 200 tech share, and explained:

In my view, potentially increasing bond yields and interest rates will continue to be a headwind for technology stocks, such as XRO.

Fiscal year 2026 operating revenue increased 31 per cent on the prior corresponding period. However, net profit after tax fell 27 per cent. The gross margin declined from 89 per cent to 83.9 per cent.

From a charting perspective, selling pressure follows share price rallies, so the downtrend may not yet be over at this point.

The post Buy, hold, sell: Premier Investments, New Hope, Xero shares appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation for $1500 in weekly passive income?
• Can the Xero share price climb back to $100?
• Sell alert! Why this expert is calling time on Life360 and Xero shares
• A rare buying opportunity in 1 of Australia’s top shares?
• 3 ASX shares to sell now according to experts

Motley Fool contributor Bronwyn Allen 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 Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.