I believe buy and hold investing is one of the best ways to build wealth over the long term.

By investing in quality businesses and giving them time to grow, investors can benefit from compounding returns without needing to constantly buy and sell shares.

And I think ASX exchange traded funds (ETFs) can be particularly useful for this approach, providing exposure to a collection of companies through a single investment.

With that in mind, here are three ASX ETFs to consider buying and holding until 2036.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

The first ETF to look at is the Betashares Global Cash Flow Kings ETF.

When investing for the long term, it makes sense to favour businesses that consistently generate strong cash flows.

After all, profits are important, but having cash available allows companies to invest in growth, reduce debt, make acquisitions, and reward shareholders.

And companies that generate plenty of cash can be better placed to navigate difficult economic conditions.

This is essentially what the Betashares Global Cash Flow Kings ETF is looking for. It invests in 200 global companies with strong free cash flow generation, while also considering factors such as debt levels and cash flow growth.

I think this approach could be well suited to investors wanting to own financially strong businesses over the next decade.

Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE)

Another ASX ETF that could be worth buying and holding until 2036 is the Vanguard FTSE Asia ex Japan Shares Index ETF.

I think Asia could offer some excellent long-term opportunities as its economies develop and businesses become increasingly important on the global stage.

The region is already home to major technology companies, manufacturers, financial institutions, and consumer businesses. And over the next decade, I expect rising wealth, technological development, and growing demand for products and services to create further opportunities.

This fund gives investors exposure to companies across markets including China, Taiwan, South Korea, and India. This means that rather than trying to predict which country or company will perform best, investors can gain exposure to a wide selection of Asian businesses.

For investors wanting to look beyond Australia and the United States, this could be an attractive option.

Global X Artificial Intelligence ETF (ASX: GXAI)

A final ASX ETF to consider is the Global X Artificial Intelligence ETF.

Artificial intelligence has already made enormous progress, but I think we are still relatively early in seeing how widely the technology will be adopted.

Businesses are increasingly looking at ways to use AI to improve productivity, reduce costs, and develop new products. And as the technology becomes more capable, there could be opportunities for companies across many industries to benefit.

The Global X Artificial Intelligence ETF provides exposure to businesses involved in developing AI technology, supplying the hardware needed to run it, and incorporating it into products and services.

Of course, there will be plenty of competition, and not every AI investment will deliver the returns investors expect.

But with a decade-long runway, this ETF could offer exciting long-term growth potential.

The post Buy and hold these top ASX ETFs until 2036 appeared first on The Motley Fool Australia.

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• My top 3 Vanguard ETFs for October
• 10 top ASX ETFs to watch in 2027

Motley Fool contributor James Mickleboro 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.

It was another busy week for Australia’s top brokers, with a number of new research notes being released.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares could be worth buying:

Megaport Ltd (ASX: MP1)

According to a note out of Bell Potter, its analysts have retained their buy rating on this cloud infrastructure company’s shares with a slightly reduced price target of $26.00. While the broker has lowered its valuation to reflect weaker share prices across the sector, it has actually increased its earnings forecasts. Bell Potter believes it previously underestimated the contribution from Megaport’s expanding AI infrastructure business, particularly the computing power it is supplying to customers. It now expects underlying EBITDA of approximately $770 million in FY 2028, up from its previous forecast of $726 million. The broker also highlights Megaport’s strong growth prospects, fully funded expansion plans, and attractive valuation. It estimates that the shares are trading at just six times forecast FY 2028 EBITDA. The Megaport share price ended the week at $16.50.

Paladin Energy Ltd (ASX: PDN)

A note out of Morgans reveals that its analysts have upgraded this uranium producer’s shares to a buy rating with a slightly reduced price target of $13.10. This follows Paladin’s first-quarter update, which revealed uranium production of 1 million pounds at its Langer Heinrich mine. While this was below market expectations, Morgans notes that a slow start to FY 2027 was anticipated due to a planned plant shutdown and lower recovery rates. Importantly, mining performance improved during the quarter, while the average selling price of uranium increased 12% to a record US$79.40 per pound. With Paladin shares falling recently, Morgans believes the risk-reward balance has become more favourable for investors. The Paladin Energy share price was fetching $7.32 at Friday’s close.

PLS Group Ltd (ASX: PLS)

Another note out of Bell Potter reveals that its analysts have upgraded this lithium producer’s shares to a buy rating with a trimmed price target of $4.40. According to the note, the broker has lowered its near-term lithium price forecasts due to weaker market conditions and concerns about a potential supply surplus in 2027. However, Bell Potter still sees plenty of reasons to be positive about PLS Group’s outlook. It believes the company can generate substantial earnings and cash flow at current lithium prices, particularly with the restart of its Ngungaju processing plant. The broker also highlights potential production growth from future developments, supported by long-term demand for electric vehicles and battery energy storage systems. With the recent decline in its share price, Bell Potter believes investors are being offered an opportunity to gain exposure to this growth at an attractive price. The PLS Group share price ended the week at $2.98.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Why the Paladin Energy share price “doesn’t make sense”
• 3 ASX 200 mining shares to buy with 41% to 79% upside ahead: broker
• Buy, hold, sell: Paladin Energy, Fortescue, Rio Tinto shares
• 9 ASX 200 shares experts are backing for growth amid market weakness
• PLS Group to invest $650m in Pilgangoora upgrades to fuel growth

Motley Fool contributor James Mickleboro has positions in Megaport. 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.

I’ve been looking at ASX shares that I think the market may be underestimating in terms of what the business could achieve over the next few years.

Three companies stand out to me, each with an opportunity to deliver stronger earnings and potentially reward patient investors.

Here’s why I think they are worth buying.

WiseTech Global Ltd (ASX: WTC)

WiseTech has had a difficult period, but I think there is still an excellent business underneath the uncertainty.

Its CargoWise software is deeply embedded in global logistics operations, helping customers manage everything from shipments and customs documentation to complex international supply chains.

I like the company’s opportunity to generate more revenue from customers already using its technology. WiseTech is introducing a transaction-based commercial model, which could allow revenue to grow as customers process more activity through CargoWise.

The acquisition of e2open also gives it access to a much larger network of businesses across global supply chains.

Of course, management has plenty to prove. Integrating e2open, delivering the benefits of its new commercial model, and navigating changes brought by artificial intelligence will all require careful execution.

But with ASIC’s investigations into the company and key personnel recently concluded without enforcement action, one important uncertainty has been removed.

And I think the valuation leaves room for a recovery. WiseTech shares are trading on a PE ratio of approximately 26 times FY27 earnings, falling to around 16 times FY29 earnings based on consensus forecasts.

If management delivers the expected growth, I think WiseTech’s share price could be much higher than where it trades today.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store is another ASX share I think deserves more attention.

The retailer operates several youth-focused fashion brands, including Universal Store, Perfect Stranger, and Thrills.

What I like is its ability to develop brands that connect with younger consumers while continuing to expand its retail footprint.

There are opportunities to open additional stores, grow online sales, and improve profitability as the business becomes larger.

Despite consensus estimates forecasting solid earnings growth through to at least FY29, they are trading on a PE ratio of around 14 times forecast FY27 earnings.

There is also a forecast dividend yield of approximately 5.6% for FY27.

I think that is an attractive combination of income and growth for investors prepared to accept the risks of retailing.

Flight Centre Travel Group Ltd (ASX: FLT)

My final pick is Flight Centre, which I think could reward investors willing to wait for better conditions in the travel industry.

Geopolitical tensions, higher fuel prices, and more expensive airfares have created a difficult environment.

But Flight Centre has been using this period to strengthen its business. Management has materially reduced costs, while acquisitions made around the bottom of the travel cycle have expanded its offering in specialist markets.

I especially like its substantial corporate travel operations, where it has established relationships with businesses around the world.

As travel conditions improve, I think Flight Centre could benefit from stronger demand flowing through a leaner and more diversified business.

And investors are paying a relatively modest price for that potential. At current levels, Flight Centre trades on less than nine times forecast FY28 earnings, with an expected dividend yield of around 5% for that year.

The recovery could take time, but I think the potential reward makes the shares worth buying.

Foolish takeaway

I think all three ASX shares have a reasonable chance of being worth considerably more in a few years.

There is execution risk involved, particularly with WiseTech and Flight Centre, but I believe their current valuations leave room for attractive returns.

I’d be happy to buy at today’s prices and give these businesses time to deliver.

The post 3 undervalued ASX shares I would buy today appeared first on The Motley Fool Australia.

More reading

• WiseTech Global vs Netwealth: Which ASX tech stock could double from here?
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Appen, Flight Centre, and Telstra shares
• Should I buy WiseTech shares after today’s big news?
• If I invest $5,000 in Flight Centre shares, what passive income could I earn in FY27?

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 positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Flight Centre Travel Group and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.