Some ASX shares are forecast to deliver significant returns within the next year, so they could be great ones to look at.

Of course, an analyst’s projection is not a guarantee of returns. But, if an expert (or experts) believes the business is severely undervalued, then the company could be a market-beater.

Let’s look at two ASX shares that may materially outperform the S&P/ASX 200 Index (ASX: XJO) in the year ahead.

Resmed CDI (ASX: RMD)

Resmed is one of the world leaders when it comes to sleep apnea and CPAP (continuous positive airway pressure) machines.

According to CMC Invest, there have been nine ratings on the business within the last three months, with eight of them being a buy.

A price target is the analyst’s way of telling investors where they think the share price will trade in a year from the time of the investment call. The average price target of those nine ratings is $41.27, suggesting a possible rise of 55% over the next 12 months.

The Resmed share price has dropped 26% during 2026 to date, making it look much better value. That decline has led to the business looking much better value, despite ongoing strength of its financials.

In the FY26 third quarter, the ASX share reported revenue growth of 11% to $1.4 billion, with the gross profit margin improving 290 basis points (2.90%) to 62.2% and operating net profit growing 17% to $499.8 million.

IDP Education Ltd (ASX: IEL)

IDP Education describes itself as a global leader in international student placement and a co-owner of the world’s most popular “high-stakes” English language test, IELTS. It partners with universities and institutions across Australia, Canada, Ireland, New Zealand, the UK and the US.

According to CMC Invest, there have been five ratings on the business within the last three months, with four of those being a buy and one being a sell. The average price target is $4.12, which implies a possible rise of 61% over the next 12 months.

With how the IDP Education share price is down 55% this year, the business looks very attractive, according to analysts.

Despite the headwinds the global industry is facing, the ASX share recently announced a pleasing update.

It said it expects the FY26 adjusted operating profit (EBIT) to be approximately $122 million, with a strong yield performance and cost reduction mitigating the impact of market conditions.

IDP Education thinks its cost base can be reduced by a net $30 million in FY26, ahead of the $25 million target that was previously announced.

The ASX share also expected an on-market share buyback program of up to $50 million, which reflects its “robust balance sheet and strong cash generation”.

According to the forecast on CMC Invest, IDP Education shares are now valued at less than 12x FY26’s estimated earnings, with earnings growth forecast to rise 7% in FY27 and 27% in FY28.

The post 2 ASX shares tipped to grow 50% or more in the next 12 months 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 positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When an ASX share is rated as a buy, it’s interesting. When there are numerous buy ratings, that suggests there could be a compelling opportunity for investors.

While having the backing of multiple analysts does not automatically mean there will be strong returns, I think it certainly suggests to take a closer look.

Let’s consider two of the most-backed ASX shares Aussies can buy right now.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre is one of Australia’s largest travel agency businesses. It also has a presence internationally, as well as a corporate travel segment.

According to CMC Invest, there have been 10 ratings on the business within the last three months. Of those 10 ratings, nine of them were buys and one was a hold.

A price target can be very informative of how undervalued analysts think a business is, it says where the expert believes the share price will be trading in 12 months from the time of the investment call.

Currently, of those 10 analyst ratings, the average price target is $14.37. At the time of writing, that implies a possible rise of more than 20% over the next year.

The company recently updated its FY26 guidance amid the conflict-driven headwinds for international leisure travel.

It now expects underlying profit before tax (PBT) to be between $275 million to $295 million, this is lower than the previous guidance of between $310 million to $345 million, though the mid-point of the guidance is approximately the same as FY25’s figure.

The ASX share also announced it was launching a $200 million share buyback, which increases the value of each remaining share, by increasing earnings per share (EPS) and other per-share statistics.

Qantas Airways Ltd (ASX: QAN)

Another ASX share that is heavily rated by analysts is the ASX transport share Qantas, Australia’s leading airline.

The Middle East conflict has also been a headwind for the business, which impacted both long haul travel and increased fuel costs.

According to CMC Invest, within the last three months, there have been 11 ratings, with all of those being a buy.

The average price target on the airline is $10.94, which suggests a possible rise of 9% over the next year from where it is at the time of writing.

The latest update came from the business in mid-April where it said that fuel costs for the second half of FY26 are estimated to be between $3.1 billion to $3.3 billion.

It also noted that it continued to see strong demand for international travel to Europe as customers sought alternative routes. Qantas said it expected unit revenue growth in the second half of around 5%, with price rises helping offset the higher costs.

With fuel seemingly starting to flow out of the Strait of Hormuz again, this could help Qantas’ earnings in the medium-term and I think it bodes well for the ASX share.

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 recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian share market remains a great hunting ground for passive income.

While bank shares often receive plenty of attention from dividend investors, there are many other options offering attractive forecast dividend yields.

Some of these shares also provide exposure to very different parts of the economy, which can be useful for investors trying to build a more diversified income stream.

Here are three ASX dividend shares that are rated as buys by brokers and forecast to yield more than 5% in FY 2027.

APA Group (ASX: APA)

The first ASX dividend share to look at is APA Group.

APA owns energy infrastructure assets, including gas pipelines and related infrastructure that help keep energy moving across Australia.

That gives the company an important role in the economy. Its assets support households, industry, power generation, and energy security, which can make its cash flows attractive to income-focused investors.

Citi is bullish on the company. It has a buy rating and $11.10 price target on APA’s shares.

As for income, the broker expects APA to pay a dividend of 59 cents per share in FY 2027. Based on the current share price of $10.31, this represents a forward dividend yield of approximately 5.7%.

Charter Hall Long WALE REIT (ASX: CLW)

Another ASX dividend share that could be attractive for income investors is the Charter Hall Long WALE REIT.

This property trust owns a portfolio of leased assets across Australia, with a focus on long weighted average lease expiry properties.

That long-lease structure is the key part of the income story. Rather than relying heavily on short-term leasing conditions, Charter Hall Long WALE REIT is built around contracted rental income from a portfolio of tenants across different sectors.

Citi also sees value here. It has a buy rating and $4.10 price target on its shares.

The broker expects Charter Hall Long WALE REIT to pay a dividend of 25.7 cents per share in FY 2027. Based on the current share price of $3.75, this equates to a forecast yield of approximately 6.9%.

Universal Store Holdings Ltd (ASX: UNI)

A third ASX dividend share to consider is Universal Store.

It is a youth-focused fashion retailer with a portfolio of brands and stores targeting younger shoppers.

Retail shares can be cyclical, but Universal Store has built a strong position in its niche. Its store network, brand mix, and understanding of youth fashion trends give it a point of difference in a competitive market.

Morgans is positive on the company. It has a buy rating and $9.50 price target on Universal Store’s shares.

With respect to income, the broker expects the company to pay a fully franked dividend of 46 cents per share in FY 2027. Based on its current share price of $7.34, this represents a forward dividend yield of approximately 6.3%.

The post 3 buy-rated ASX dividend shares forecast to yield 5%+ in FY 2027 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Apa 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.