With 2027 approaching, I’ve been looking at ASX shares that could have a particularly good year ahead.

There are a few companies where I think business developments over the next 12 months could make a meaningful difference to their prospects.

Here are three that stand out to me.

Cochlear Ltd (ASX: COH)

Cochlear is my first pick because I think 2027 could be an important year in its recovery.

The hearing implant company has had a challenging period, with weaker profitability and a slower-than-expected rollout of its latest technology affecting results.

But I still like its position in the global hearing implant market. Its Nucleus Nexa system represents an important step forward, offering new capabilities that can be updated as technology improves.

Adoption has been encouraging, with the system accounting for more than 95% of implant sales across developed markets by June.

I think the next opportunity comes from building on that product launch while improving the company’s operations. Cochlear has been reducing fixed costs and investing in programmes to help more adults with severe hearing loss access treatment. That could help expand the market over time, particularly given how many potential patients remain untreated.

Management expects underlying profit to improve modestly in FY27, so I wouldn’t expect an immediate return to the growth rates investors once enjoyed.

But if Cochlear can demonstrate stronger demand and improving margins, I think sentiment towards the shares could recover considerably.

HUB24 Ltd (ASX: HUB)

HUB24 is another ASX share I would be watching closely.

Its investment platform helps financial advisers manage client portfolios, including investments held through superannuation and other structures.

What I like is how HUB24 has been gaining market share. In FY26, its platform attracted $18.9 billion in net inflows, while total funds under administration reached $164.3 billion.

That is a substantial amount of money flowing into a business that can benefit from having more assets on its platform.

There is also an opportunity to improve profitability as it grows. HUB24 has already developed much of the technology and infrastructure required to service advisers and their clients. As more money flows onto the platform, I think earnings could grow faster than the underlying cost base.

Competition remains strong, and financial market weakness can affect funds under administration. Nevertheless, I think HUB24 has the momentum to deliver another strong year in 2027.

Lovisa Holdings Ltd (ASX: LOV)

My final pick is Lovisa, which I think still has considerable international growth potential.

The fashion jewellery retailer has been expanding rapidly, taking its relatively affordable products into more markets around the world.

I like the flexibility of its store model. Lovisa can open relatively small stores in shopping centres, giving it opportunities to expand without requiring the same investment as larger-format retailers.

In FY26, the company opened 160 new stores, taking its global network to 1,136 locations. That growth is already contributing to earnings, and I think there are plenty of markets where Lovisa could become more established.

Early FY27 trading has also been encouraging, with sales growth supported by continued store expansion and improving comparable sales.

Of course, fashion preferences can change, and rapid international expansion requires careful execution. But if this ASX share continues opening profitable stores while maintaining customer demand, I think 2027 could be another rewarding year.

Foolish takeaway

I think all three ASX shares have reasons to be optimistic about 2027.

There is still work to do, particularly at Cochlear, but I like the longer-term opportunities across these businesses.

I’d be happy buying them today with the expectation that the next year could bring some encouraging progress.

The post 3 ASX shares I think could have a brilliant 2027 appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Hub24 and Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and Lovisa. The Motley Fool Australia has recommended Cochlear, Hub24, and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Qantas Airways Ltd (ASX: QAN) shares have had a difficult few months.

The airline has been navigating a challenging environment, with higher operating costs and uncertainty surrounding international travel.

But with the share price coming under pressure, could October be a good time to invest?

Here’s what I think.

Why have Qantas shares fallen?

Qantas shares are trading around $8.32 on Monday, having fallen more than 20% since late June.

I think one of the biggest reasons for the weakness is the sharp increase in aviation fuel costs.

The conflict in the Middle East has pushed energy prices higher, leaving airlines facing a substantial increase in one of their largest operating expenses.

Qantas has already felt the impact. In FY26, underlying profit before tax declined to approximately $2.06 billion, with management reporting that the Middle East conflict had an estimated $420 million impact on operating earnings during the second half.

That is a significant amount of money, and it helps explain why investors have become more cautious.

Qantas has responded by increasing fares, adjusting capacity, and making changes to its international operations.

But there is a limit to how much additional cost airlines can pass on to passengers before demand starts to weaken.

With Australian households also facing higher living costs and interest rates, I think the next few months could remain challenging.

Why I still like the business

Despite these pressures, I think Qantas has some important strengths.

Its position in the Australian aviation market is particularly valuable. Through Qantas and Jetstar, the company serves different parts of the market, allowing it to cater to business travellers, holidaymakers, and more price-conscious customers.

I also like the contribution from its loyalty division. Qantas Loyalty generated underlying earnings of $625 million in FY26, demonstrating that the group’s profitability extends beyond selling airline tickets.

There is also the airline’s fleet renewal programme to consider.

Newer aircraft should gradually improve fuel efficiency and the customer experience, potentially helping Qantas become more competitive over time.

Of course, replacing aircraft requires substantial investment, so those benefits will take time to emerge.

Would I buy today?

I think Qantas shares are becoming increasingly interesting after their recent decline.

The business remains profitable, has strong positions in the Australian travel market, and is investing in its long-term future.

My main concern is how long elevated fuel prices could persist. If costs remain high and travellers become more cautious, the earnings recovery could take longer than investors expect.

But if fuel prices eventually moderate and travel demand remains reasonably resilient, I think Qantas could be earning considerably more in a few years.

Foolish takeaway

I would be prepared to buy Qantas shares around $8.32 with a long-term view.

I don’t expect an immediate recovery, particularly given the uncertainty surrounding fuel prices.

But I think the company’s market position and longer-term growth opportunities make the recent weakness worth considering.

The post Are Qantas shares worth buying in October? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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.

Quality ASX passive income shares could be the right investment during this uncertain time. Dividend-paying businesses could produce $700 per month of passive income.

I think it’s important that investors consider how resilient dividends could be from their ASX dividend share. If I’m relying on dividend income for my personal finances, I’d want to be confident that dividend cash will keep flowing to my bank account, even in a downturn.

With that in mind, I’ll highlight two appealing ASX passive income shares that I’d buy today (and already own because of how much I like them).

Future Generation Australia Ltd (ASX: FGX)

The listed investment company (LIC) structure is very effective at delivering regular dividends. LICs make money by investing in other shares and generating investment profits. They can ‘bank’ investment returns in good years to help pay dividends in leaner years.

Future Generation Australia has impressively grown its dividend every year since it started delivering payments to shareholders in 2015. That’s more than a decade of continuous dividend increases.

In the 2026 financial year – which ends in December 2026 – the annual dividend is guided to rise by 5.6% to 7.6 cents per share. That’s an inflation-beating rise for a dividend yield that’s already large.

The guided annual dividend translates into a forward grossed-up dividend yield, including franking credits, of 8.1% at the time of writing. That’s a big yield from the ASX passive income share.

How does the LIC actually invest? It’s invested in the funds of more than a dozen fund managers, so there’s significant diversification with numerous different shares as those managers invest with different styles.

Pleasingly, each of those fund managers works pro bono – for free – so that Future Generation can donate 1% of its net assets to youth charities. In other words, there are no management fees or performance fees involved. That’s great for the net investment return and it’s a wonderful cause.

L1 Long Short Fund Ltd (ASX: LSF)

The other ASX passive income share I want to highlight is also an LIC. The fund manager L1 Group is actually one of the fund managers that supports Future Generation Australia.

L1 Long Short Fund invests in both ASX shares and international shares, using both normal investing and short-selling to generate returns.

I like how the investment team are willing to invest with a contrarian and opportunistic mindset. Avoiding thinking like the crowd can be where the good returns are, particularly when it comes to cyclical sectors.

It noted in August how it’s investing, which I think describes well the sorts of opportunities it’s looking at:

We continue to focus on company-specific opportunities where valuation and earnings delivery can drive returns across a range of market environments. We believe the portfolio looks well placed at present, with the median long position trading on 10x P/E, supported by double-digit EPS growth and modest debt levels.

In October, the investment team wrote:

The S&P/ASX 200 Index (ASX: XJO) has been relatively flat over the past year, given a difficult Australian macro backdrop. We believe this backdrop is well suited to active stock pickers (like L1), where strong specific companies can outperform a relatively flat broader stock market. The increased global stock volatility from higher oil prices, higher bond yields and constant AI sentiment changes is providing us with a better than usual opportunity set of mispriced stocks.

Past performance is not a guarantee of future returns, but the portfolio has returned an average of 15% per year over the past five years.

Some of those returns have been used to pay a growing dividend. Since it started paying dividends in 2021, it has increased the payout every financial year.

I expect the next 12 months of dividends could come to 16.2 cents per share, which is a grossed-up dividend yield of 5.3%, including franking credits.

$700 per month of passive income

These two ASX passive income shares don’t pay monthly, so I think it’d be better to think of the goal as an annual target of $8,400.

Between the two businesses I highlighted, the average dividend yield is 6.7% (including franking credits).

With a 6.7% yield, it’d take a portfolio value of $125,374 across the two stocks to generate $8,400 (of annual income), or $700 per month on average. Along with a few other dividend names, I think the above options are great for passive income.

The post 2 ASX passive income share ideas I'd use to generate $700 a month in 2027 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, L1 Group, and L1 Long Short Fund. 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.