If you are hunting some good value ASX 200 stocks to buy right now, then read on.

That’s because Bell Potter believes that one well-known company’s shares could be seriously undervalued at current levels.

Which ASX 200 stock?

The stock that Bell Potter is recommending to clients is JB Hi-Fi Ltd (ASX: JBH).

It is of course one of Australia’s leading retailers, responsible for the JB Hi-Fi, E&S, and The Good Guys brands.

Bell Potter has been looking back on the ASX 200 stock’s half-year results. It was pleased with the company’s performance during the half but acknowledges that the second half has started a touch weaker than expected. It said:

JB Hi-Fi (JBH)’s 1H26 result overall from a revenue, gross/net profit and dividends perspective saw marginal beats to Consensus/BPe. Good Guys (GG) and JBH NZ were the two key stand-out performers (vs BPe), while JBH Aus’s ability to maintain +5% comparable sales growth despite cycling a strong +8.8% in 2Q26 was resilient. The Jan-26 trading update (start of 2H26) of +2.4%, +16.7% and +2.7% in comparable sales growth for JBH Aus, NZ and GG respectively saw NZ tracking ahead of BPe, however JB Aus, GG and e&s slightly behind BPe.

In light of this, the broker has trimmed its earnings estimates slightly. It adds:

We make changes to our revenue assumptions factoring in the Jan trading update and the upcoming challenging comps in 4Q26 as JBH Aus cycles +8.2% comparable sales during the seasonal quarter driven by the Nintendo Switch 2 sales (post launch in Jun-25). We also apply some conservatism through our medium-term forecasts to see our revised revenue estimates growing by 4-5% in FY27/28 and some market share related investments in margins to see largely flat GM/EBIT margins (GM ~22% for JBH Aus, ~23% for GG, ~17% for JBH NZ and ~29% for e&s). […] The net result sees our NPAT forecasts -1%/-4%/-8% for FY26/27/28e.

Could be worth $90 per share

According to the note, Bell Potter has retained its buy rating on JB Hi-Fi’s shares with a lowered price target of $90.00.

Based on its current share price of $71.70, this implies potential upside of over 25% for investors over the next 12 months.

In addition, it is expecting a 4.7% dividend yield in FY 2026, boosting the total potential return to approximately 30%.

Commenting on its buy recommendation, the broker said:

Our PT decreases by 24% to $90.00 (prev. $119.00). Along with our earnings revisions, we also reduce our target P/E multiple by 30% to ~19x (prev. 27x) on a blended FY26/27e basis (skewed to FY27e). Our target multiple is driven by a ~12% premium applied to the current trading multiple. We see some defensiveness in the name with the semi-discretionary characteristics as stretched consumer wallets take a larger share in technology products, to retain our view of JBH as one of the key preferences within our sector coverage.

The stock continues to trade at an 18-month low on a ~17x FY26e P/E (BPe), and we see valuation support considering the relative defensiveness and margin levers in the business model.

The post Guess which ASX 200 stock could be worth $90 a share appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• JB Hi-Fi vs. Harvey Norman: Which is the better retail buy?
• A once-in-a-decade chance to earn a supersized passive income from ASX shares?
• 3 top ASX dividend share buys for passive income in March
• JB Hi-Fi vs. Wesfarmers: Which retail stock deserves a place in your portfolio?

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’s been a painful year for investors in leading ASX tech stocks WiseTech Global Ltd (ASX: WTC) and Xero Ltd (ASX: XRO).

Both ASX tech stocks have fallen around 50% over the past 12 months and are down well over 30% so far in 2026. That’s a sharp contrast to the broader market, with the S&P/ASX 200 Index (ASX: XJO) down just 3% year to date.

Despite the heavy sell-off, broker sentiment remains strikingly bullish. In fact, many analysts see upside of 90% or more for the two ASX tech stocks.

So, are these beaten-down tech leaders on the verge of staging a massive comeback?

WiseTech Global: Global scale, but execution concerns

WiseTech Global has built a dominant position in logistics software through its CargoWise platform, which is used by many of the world’s largest freight forwarders.

The company’s strength lies in its global reach, high-margin recurring revenue, and mission-critical software. Once embedded, its platform is difficult for customers to replace, creating strong pricing power and long-term growth potential.

Recent earnings have continued to show solid revenue growth, supported by customer wins and product expansion. Management has also maintained a positive outlook, with expectations of continued growth as global trade digitisation accelerates.

However, the ASX tech stock hasn’t been immune to pressure. Concerns around valuation, growth sustainability, and execution have weighed on sentiment. Any slowdown in customer growth or margin expansion could see further volatility.

Even so, analysts remain highly optimistic. WiseTech has an average price target of $84.93, implying upside of around 99% from current levels. That suggests the market may be underestimating the long-term growth potential of the $14 billion ASX tech stock.

Xero: Profitable growth back in focus

Xero, a leader in cloud accounting software for small and medium businesses, has also seen its share price halve over the past year.

The company’s core strength is its sticky subscription model, with millions of subscribers globally and strong retention rates. As more businesses shift to cloud-based accounting, Xero remains well placed to capture long-term growth.

In its latest results, Xero reported solid subscriber growth and improving profitability, reflecting a stronger focus on cost discipline. The company has also guided for continued margin expansion, signalling a shift towards more sustainable earnings growth.

That said, risks remain. The ASX tech stock is exposed to economic conditions, particularly the health of small businesses. Slower customer growth or increased competition could impact its trajectory.

Nevertheless, broker confidence remains high. Xero carries an average price target of $150.99, pointing to potential upside of around 95%.

Foolish Takeaway

WiseTech and Xero have both been hit hard, but their underlying businesses remain strong.

With high-quality software platforms, recurring revenue models, and large global markets, both companies still have significant long-term growth potential. The key question is whether they can deliver on expectations and rebuild investor confidence.

If they do, the current share price weakness could mark the setup for a powerful rebound — and potentially the kind of comeback long-term investors look for.

The post Down 50%: Could these 2 leading ASX tech stocks rebound big? appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I’d buy today and not check for a year
• Top brokers name 3 ASX shares to buy next week
• The best ASX shares to invest $1,000 in right now
• Why buying ASX shares in March could supercharge your wealth
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Marc Van Dinther 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 and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It may not have been a smooth ride, but DroneShield Ltd (ASX: DRO) shares have risen very strongly over the past 12 months.

During this time, the counter drone technology company’s shares have climbed almost 300%.

Does this make it too late to invest? Let’s see what one leading broker is saying about the high-flyer.

What is the broker saying?

According to a recent note out of Bell Potter, its analysts think there’s still an opportunity for investors to buy DroneShield shares.

It was pleased with its performance in FY 2025 even if it did slightly underperform with its earnings due to softer margins. The broker said:

DRO reported +276% YoY revenue growth to $216.5m in line with BPe. Gross margin (excluding inventory impairment) came in at 64.8% (BPe 67.9%). Opex was $125.3m (BPe $127.8m) led by headcount growth and higher share-based payments. Stripping out share-based payments ($23.5m) which was unusually elevated during the year, Underlying EBITDA was $36.5m an improvement on the CY24 loss of -$4.0m and driven by strong revenue growth. Statutory NPAT was $3.5m. The miss to uEBITDA was driven by weaker than expected gross margin in 2H26e, although it was in line with company guidance.

While DroneShield was forced to record some asset impairments in FY 2025, Bell Potter believes this will improve in the future with the introduction of a new Enterprise Resource Planning (ERP) system. It said:

DRO recorded $8.5m finished goods and $1.8m raw materials inventory impairments relating to earlier model DroneGuns with customer demand moving to the latest version of the DroneGun Mk4. New ERP implementation aims to reduce wastage in future.

Decent upside remains

Despite almost quadrupling over the past 12 months, Bell Potter still sees value in DroneShield shares.

The note reveals that the broker has a buy rating and $4.85 price target on them. Based on its current share price of $4.15, this implies potential upside of 17% for investors over the next 12 months.

Bell Potter’s bullish view on the stock is supported by its belief that DroneShield’s market-leading products leave it well-positioned to benefit from increasing demand. It explains:

We believe DRO has a market leading RF detect/defeat C-UAS offering and a strengthening competitive advantage owing to its years of battlefield experience and large and focused R&D team. We expect 2026 will be an inflection point for the global C-UAS industry with countries poised to unleash a wave of spending on RF detect and defeat solutions.

Consequently, we believe DRO should see material contracts flowing from its $2.3b potential sales pipeline over the next 3-6 months as defence budgets roll over to FY26e. At 35x CY26e EV / EBITDA, DRO trades at a discount to the global drone peer group. Further, we see upside risk to our revenue forecasts in CY26/27e, given the opportunities observed in the C-UAS industry.

The post Are DroneShield shares good value? Yes or no appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Electro Optic Systems just had its DroneShield moment. Here’s what investors should know
• 2 ASX growth stocks down 40% to 60% to buy now
• Here’s why the Droneshield share price just jumped               
• 3 high risk, high reward ASX shares to buy ASAP

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 positions in and has recommended DroneShield and is short shares of DroneShield. 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.

The Fortescue Ltd (ASX: FMG) share price could be one to watch over the next year, according to experts.

Oil and LNG prices are getting all of the attention right now, but the iron ore price is also making interesting moves. According to Trading Economics, the iron ore price reached US$106 per tonne at the end last week, which certainly gives the company room to make good profits.

Fortescue is one of the lowest-cost iron ore miners in the world, so any increase of the iron ore price largely adds to net profit (after paying more to the government).

In my view, the rising iron ore price is a key reason why the Fortescue share price has gone up around 20% in the last year, as the chart below shows.

Let’s see where experts think the Fortescue share price will go in the next 12 months.

Price target

A price target tells us where analysts believe the valuation will be in a year from the time of the investment call.

According to CMC Invest, there are a mixture of ratings on the business right now – there’s one buy rating, six hold ratings and three sell ratings. Despite that, the price target still implies positive returns for investors.

The average price target from those ten ratings is $20.40, which currently suggests potential capital growth of at least 7%, plus the possible dividends that the business could pay.

Here’s why the Fortescue share price could rise

The latest note from broker UBS has a neutral rating on the ASX mining share, with a price target of $20.

Considering the current issues that are facing the world with diesel, Fortescue’s efforts to roll out batteries, solar, wind and electric-powered vehicles is well-time because of reduction of reliance on external fuel (and decarbonisation).

UBS said that it “remains confident in FMG’s approach to decarb spend”. The broker noted that Fortescue is estimating that taking the diesel and gas costs out of C1 (production costs) to the tune of between US$2 per tonne to US$4 per tonne by 2030.

The broker’s latest estimate for the iron ore price was US$96 per tonne in 2026 and US$90 per tonne in 2027 because of the ramp-up of Simandou.

It will be interesting to see if the big increase of the diesel price and reduced availability of the fuel leads to less iron ore supply globally, which could naturally lead to a higher iron ore price.

UBS currently estimates that Fortescue could make net profit of $3.8 billion in FY26, funding a possible dividend per share of A$1.22.

The post How much could the Fortescue share price rise in the next year? appeared first on The Motley Fool Australia.

More reading

• Are Fortescue shares a top buy in March?
• Should you buy the dip on ASX mining shares?
• How many Fortescue shares do I need to buy for $10,000 a year in passive income?
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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.

I think most investors check their portfolios too often.

It’s easy to get caught up in daily moves, headlines, and short-term noise. But in many cases, the best returns come from buying strong businesses and giving them time to execute.

If I wanted to keep things simple, these are three ASX shares I’d feel comfortable buying today and largely ignoring for the next 12 months.

Xero Ltd (ASX: XRO)

Xero is one of those businesses where the day-to-day share price doesn’t tell you much.

What matters is how many subscribers it’s adding, how well it retains them, and how its margins evolve over time.

The company continues to build a global accounting platform that small and medium-sized businesses rely on. Once embedded, it becomes difficult to replace, which supports annual recurring revenue.

There’s still a long runway for growth internationally, and I think the business could look meaningfully larger in a few years’ time.

Short-term volatility wouldn’t surprise me in the current environment, but over a year or more, I’d back the underlying momentum.

Coles Group Ltd (ASX: COL)

Coles is a very different type of investment.

It’s not about rapid growth or big upside surprises. It’s about consistency.

Supermarkets generate steady cash flow because people need groceries regardless of economic conditions. That reliability can be especially valuable when markets are uncertain.

Coles also has opportunities to improve margins through efficiency and supply chain investments, which could support gradual earnings growth.

It’s the kind of business I’d feel comfortable owning without needing to check in constantly.

Goodman Group (ASX: GMG)

Goodman sits at the centre of a powerful trend.

It develops and manages logistics and industrial property, which underpins ecommerce, data infrastructure, and global supply chains.

As demand for warehouse space and data centres continues to grow, Goodman is well positioned to benefit.

What I like here is the combination of development upside and recurring income from its property portfolio.

It won’t be immune to market movements, especially given its exposure to property cycles. But over time, I think its strategic positioning gives it a strong foundation for growth.

Foolish takeaway

If I were building a portfolio I didn’t want to constantly monitor, I’d focus on businesses with clear roles.

Xero offers growth, Coles provides stability, and Goodman adds exposure to long-term infrastructure trends.

They’re not the only options out there, but together they represent the kind of balance I’d be comfortable leaving alone and letting time do the heavy lifting.

The post 3 ASX shares I’d buy today and not check for a year appeared first on The Motley Fool Australia.

More reading

• How to survive an ASX share market crash
• Top brokers name 3 ASX shares to buy next week
• 3 dependable ASX shares to add to a superannuation fund in 2026
• The best ASX shares to invest $1,000 in right now
• How to build $100,000 a year in passive income from ASX shares

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

Market crashes never feel good.

Even if you know they’re a normal part of investing, seeing your ASX share portfolio fall can be uncomfortable. It can make you question your strategy and tempt you to act at exactly the wrong time.

But the way you respond during a downturn often matters more than anything you do when markets are rising.

Here’s how I think about getting through it.

Accept that volatility is part of the process

The first step is understanding that market declines aren’t unusual. They happen regularly, even in strong long-term bull markets. Corrections, bear markets, and sudden selloffs are all part of the journey.

Trying to avoid them completely usually leads to worse outcomes, because it often means sitting on the sidelines when markets recover.

For me, accepting volatility upfront makes it easier to stay calm when it inevitably arrives.

Focus on the businesses, not the share prices

When markets fall, prices move quickly. But businesses don’t change nearly as fast.

Instead of asking “Why is the share price down?”, I would ask “Has anything actually changed about the business?”

If the answer is no, then the investment case may still be intact.

Avoid the urge to sell in panic

One of the biggest mistakes investors make during a crash is selling out of fear.

It’s understandable. Losses feel real, and the instinct is to protect what’s left. But history shows that some of the best returns come after the worst declines.

Selling during a downturn can lock in losses and make it harder to benefit from the eventual recovery.

That doesn’t mean you should never sell ASX shares. But decisions should be based on fundamentals, not emotion.

Keep investing if you can

If you’re in a position to do so, continuing to invest in quality ASX shares, such as Goodman Group (ASX: GMG) and CSL Ltd (ASX: CSL), during a downturn can be powerful.

When prices fall, your money buys more shares. Over time, that can improve your overall returns.

This approach is often called dollar-cost averaging.

You just continue to invest through different market conditions, rather than trying to time the perfect entry point.

Make sure your strategy fits your risk tolerance

A market crash can also be a reality check. If a downturn makes you want to sell everything, it might be a sign that your ASX share portfolio is too aggressive for your comfort level.

There’s nothing wrong with adjusting your approach.

That could mean holding more diversified investments, adding defensive businesses, or keeping some cash on hand.

The goal is to build a portfolio you can stick with, even when markets are volatile.

Think in years, not weeks

It’s easy to get caught up in short-term movements.

But long-term investing is exactly that, long term.

Over decades, markets have historically trended higher, even though the path is never smooth.

When I zoom out and think in terms of years rather than weeks, it becomes much easier to stay focused on the bigger picture.

Foolish takeaway

Market crashes are uncomfortable, but they’re also unavoidable.

For me, surviving them comes down to staying calm, focusing on quality, and sticking to a long-term plan.

If you can do that, you not only get through the downturn, but you also put yourself in a position to benefit when the recovery eventually comes.

The post How to survive an ASX share market crash appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I’d buy today and not check for a year
• CSL shares look primed to take off — Here’s why
• How to build $100,000 a year in passive income from ASX shares
• Pulse check: How are the top 10 ASX 200 shares performing amid a new war?
• Down 20% in 2026, is now the time to buy CSL shares?

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

The ASX share market is awash with opportunities and there are plenty of cheap shares to consider buying, in my opinion. One business I really want to highlight is Bailador Technology Investments Ltd (ASX: BTI).

Bailador describes itself as a growth technology company that’s focused on the IT sector.

Some of the areas that it’s looking at include software as a service (SaaS) and other subscription-based internet businesses, online marketplaces, software, e-commerce, high-value data, online education and tech-enabled services.

It has 11 different investments like Updoc, DASH, Access Telehealth, Expedition Software, Siteminder Ltd (ASX: SDR), PropHero, Rosterfy, Hapana, MOSH and Nosto.

Those businesses operate in areas like digital healthcare, hotel channel management and distribution solutions for online accommodation bookings, a booking software platform for tours and activities, property investment, volunteer management, fitness and wellness sector software and so on.

Strong growth

Bailador isn’t just a tech company for the sake of it – these underlying businesses are growing at a strong rate.

In the FY26 half-year result, Bailador reported that 85% of its portfolio revenue is in high-quality recurring revenue, which shows the defensiveness and quality of the revenue generated by these businesses.

Excitingly, Bailador reported that its portfolio reported combined revenue of $673 million, with (portfolio-weighted) revenue growth of 42% over the last 12 months.

With its investments growing revenue by that much, the underlying businesses are rapidly increasing their underlying value and also helping improve their underlying margins because of the operating leverage of software (with typically high gross profit margins and relatively low variable costs).

Why this looks like a cheap ASX share

The business regularly tells investors how much it is worth with its net tangible assets (NTA).

At the end of February 2026, it had pre-tax NTA of $1.81 and post-tax NTA of $1.66. At the time of writing, Bailador’s share price is valued at a 46% discount to the pre-tax NTA last month and a 41% discount to the post-tax NTA.

That’s a big discount, though the underlying NTA has probably reduced in the last few weeks, but the discount is still probably in the 30s percentage range. This seems like a great time to buy considering how rapidly the businesses are growing.

Even if the Bailador share price doesn’t recover to reflect its underlying value, it can provide investors with a very good level of dividend income for ‘real’ returns. Bailador noted in its recent February 2026 update that its grossed-up dividend yield was 9.2%, including franking credits.

I think this is a great time to invest in this cheap share for the long-term.

The post Here’s one of my favourite cheap shares to consider buying today appeared first on The Motley Fool Australia.

More reading

• Are DroneShield shares good value? Yes or no
• How much could the Fortescue share price rise in the next year?
• 3 ASX shares I’d buy today and not check for a year
• How to survive an ASX share market crash
• Where to invest $2,000 in ASX dividend shares this week

Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments and SiteMinder. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments and SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Bailador Technology Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I had $2,000 to invest in ASX dividend shares right now, my goal would be to build a small but reliable income stream, with businesses that can keep paying and ideally growing their dividends over time.

It’s not actually about finding the highest dividend yield today. It’s about owning companies that can still be paying you years from now.

Here’s where I’d be looking this week.

Telstra Group Ltd (ASX: TLS)

Telstra is one of the first names that comes to mind for income.

It generates steady cash flow from its telecommunications network, which underpins a large part of Australia’s connectivity.

What I like is that the business has become more focused in recent years. It has simplified operations, improved efficiency, and is now executing on its long-term strategy.

That has helped support a more stable dividend profile, which is exactly what I’d want from a core income holding.

Transurban Group (ASX: TCL)

Transurban offers something a little different.

It owns and operates toll roads, which generate long-term, predictable cash flow. Traffic volumes tend to grow over time, and many of its assets include inflation-linked pricing.

That gives it a level of earnings visibility that’s hard to find elsewhere.

For me, this is the kind of business that can add stability to an income portfolio, especially when markets are uncertain.

BHP Group Ltd (ASX: BHP)

BHP brings a different dynamic.

As a major miner, its dividends can be more variable, depending on commodity prices. But when conditions are favourable, it can generate significant cash flow and return a large portion of that to shareholders.

It also offers exposure to commodities like copper, which are expected to play an important role in global electrification and infrastructure.

I’d see this as a complement to more stable income stocks, adding potential for higher payouts over time.

How I’d think about the $2,000

With a smaller amount like $2,000, I’d focus on getting started rather than trying to perfectly allocate every dollar.

That could mean splitting it across a few positions or starting with one or two and building over time.

The key is to begin building that income base and then continue adding to it consistently.

Foolish takeaway

If I were investing $2,000 in ASX dividend shares this week, I’d focus on a mix of reliability and opportunity.

Telstra offers steady income, Transurban adds stability, and BHP provides exposure to stronger payouts when conditions are right.

It’s not about building the perfect portfolio in one go. It’s about starting with quality and letting it grow from there.

The post Where to invest $2,000 in ASX dividend shares this week appeared first on The Motley Fool Australia.

More reading

• The stress-free ASX ETF portfolio built to weather market crashes
• Top brokers name 3 ASX shares to buy next week
• 3 blue-chip ASX shares to boost your retirement income
• 3 dependable ASX shares to add to a superannuation fund in 2026
• Own BHP shares? Here’s an expert’s view on the new CEO

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

Income investors have a lot of options to choose from on the Australian share market.

To narrow things down, let’s take a look at two ASX dividend shares that Bell Potter is bullish on and believes could rise 20% to 30% from current levels.

Here’s what the broker is recommending to clients:

Rural Funds Group (ASX: RFF)

Bell Potter thinks this agricultural property company’s shares are undervalued at current levels.

However, the broker sees opportunities to unlock value, which could cause a re-rating of its shares. It explains:

The ~35% discount to market NAV is well above the historical average 5% premium since listing. Counterparty profitability indicators have been improving and farm asset values have been resilient, which would suggest that the underearning on unleased assets is the largest performance drain.

Exiting or leasing these assets (combined value ~$387m) would result in reasonable AFFO accretion (14-18% on FY26e PF AFFO) with the scope to also reduce gearing, with this likely to be the greatest share price catalyst. We would expect execution against asset sales to emerge in CY26e.

Bell Potter has a buy rating and $2.50 price target on its shares. This implies potential upside of 20% for investors from current levels.

The broker also expects a 5.65% dividend yield from Rural Funds in FY 2026.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that the broker is bullish on is Universal Store.

It is the youth fashion retailer behind the Universal Store, Perfect Stranger, and Thrills brands.

The broker thinks that the company’s shares are undervalued based on its positive growth outlook. This is expected to be underpinned by an expansion in its private label product penetration and its leading position in youth fashion. It explains:

At ~18x FY26e P/E (BPe), we see UNI trading at a discount to the ASX300 peer group and see the multiple justified by the distinctive growth traits supporting consistent outperformance in a challenging broader category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution. We continue to see the youth customer prioritising on-trend streetwear and expect UNI to benefit with their leading position.

Bell Potter has a buy rating and $10.50 price target on its shares. This implies potential upside of approximately 30% for investors.

In addition, a fully franked 4.5% dividend yield is expected by the broker in FY 2026.

The post These cheap ASX dividend shares could rise 20% to 30% appeared first on The Motley Fool Australia.

More reading

• Why buying ASX shares in March could supercharge your wealth
• 2 Australian dividend stars that still offer a good price
• 71% chance of RBA hike? These ASX dividend shares still beat rising interest rates
• Why this ASX REIT is a retiree’s dream
• A once-in-a-decade chance to earn a supersized passive income from ASX shares?

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 Rural Funds 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.

A new report from Global X has laid out the case for timely exposure to global commodities.

Research from the ASX ETF provider indicates that commodities could outperform other asset classes over the next 12-24 months.

One way to gain exposure to this future performance is through the Global X Bloomberg Commodity Complex ETF (ASX: BCOM). 

Here’s three reasons why the BCOM ASX ETF could be an ideal fund for investors looking for global commodity exposure. 

Commodities undervalued 

According to Global X, commodities have long been an under-loved corner of the investment universe.

Investors often favouring cashflow-generating assets such as equities and fixed income, citing their higher “predictability” and “fundamentals-driven” nature. 

While this perspective is understandable, it is also important to recognise that real assets like commodities, not financial instruments, ultimately power the economy, enable productivity, and sit at the centre of even the most future-facing technologies. In that sense, demand for commodities is itself highly fundamental and persistently anchored in real economic activity.

Global X reported this gap is now beginning to narrow as investors reprice the value of real assets and technology buildouts increase demand for raw materials.

Set for outperformance

According to Global X, commodities remain roughly 20% below their pre-GFC peaks.

The report said they may now be in the process of repricing, triggered by the disruption of the 2020 pandemic, and further reinforced by renewed focus on structural megatrends such as electrification, the transition to clean energy.

Global X said it appears that the outperformance of equities over commodities may be due for a reversal. 

Over the past 35 years, an E2C reading of 3.0 or above has reliably signalled a changing of the guard, with commodities often going on to outperform equities sharply over the following 12 to 24 months.

Hedging against conflict 

The report also considered past periods of commodity outperformance in inflation regimes, with two themes standing out. 

The first is inflationary shocks driven by geopolitical disruption, such as the 2022 Russia Ukraine war. 

The second is structural demand booms, most notably in the early 2000s when China’s industrialisation, alongside rapid housing and infrastructure construction, drove a powerful surge in global commodity demand.

Today’s environment appears to combine elements of both. The war in Iran has the potential to push energy prices higher and, if sustained, could contribute to a hotter for longer inflation environment. At the same time, structural demand drivers are building through the rapid expansion of artificial intelligence, electrification, and other large-scale industrial megatrends.

According to the report, these catalysts are emerging at a time when commodities have anomalously underperformed equities despite a high inflation backdrop, potentially laying the groundwork for a more pronounced catch-up rally and even the emergence of a new commodity “super-cycle.”

Commodities ASX ETFs

For investors seeking pure, yet broad-based exposure to commodities, the Global X Bloomberg Commodity Complex ETF may be a compelling option. 

It provides direct exposure to a marquee commodity basket through futures contracts. 

The fund also aims to maintain exposure to contracts which expire ~3 months in the future, helping minimise negative roll yield by investing further up the curve.

What this means is it gives you diversified exposure to real commodity prices by investing in futures contracts rather than physical goods.

Other commodity focussed ASX ETFs that investors may consider include: 

• Global X Physical Precious Metals (ASX: ETPMPM)
• BetaShares Crude Oil Index ETF – Currency Hedged (Synthetic) (ASX: OOO). 

The post 3 reasons this commodities ASX ETF could be an ideal buy in the current environment appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.