The All Ordinaries Index (ASX: XAO) closed around 1% lower on Tuesday afternoon. The index is also now down 2% for the year-to-date. Now many have their eye focused on which ASX shares could climb even higher over the next 12 months. Here are three ASX shares that brokers think could return up to 122% over the next year.

Meteoric Resources Ltd (ASX: MEI)

Meteoric Resources released its highly anticipated Definitive Feasibility Study (DFS) for its Caldeira Rare Earths project in July. The study included confirmation of a 151 million tonne (Mt) ore reserve grading 3,524ppm TREO and an impressive life of mine (LOM) post-tax NPV of US$847 million at spot prices.

The project has already secured a Preliminary Environmental Licence, with the construction permit (LI) expected by the end of 2026. Meteoric has signed non-binding offtake agreements with major players in South Korea, Canada, and North America and is in advanced funding talks with several government credit agencies.

The company’s next steps involve obtaining the Installation Licence and finalising project funding to move toward a final investment decision and project construction. 

Last month, Meteoric also announced that its shares will begin trading on the US OTCQB Venture Market under the ticker METOF, broadening access for North American investors and supporting future growth.

Experts seem confident the business could boom over the next 12 months. Market Index data shows that all brokers have a strong buy rating on the ASX rare earths shares. The 38 cent target price implies a potential 122% upside at the time of writing.

Generation Development Group Ltd (ASX: GDG)

Generation Development Group is a diversified financial services company focused on investment and retirement products.

The company’s shares have consistently tumbled lower over the past 12 months after spiking to an all-time high in October last year.

It looks like the share price decline through 2026 is part of a reset after the shares rocketed around 107% through the first three quarters of the 2025 calendar year. Many investors took profits after the shares rallied strongly over a short period.

But the company’s FY26 results were strong operationally. Generation Development Group posted record funds under management last month, up 37% to $46.5 billion. 

Meanwhile its underlying NPAT increased 21% to $40.7 million for FY26. Group revenue also increased 23% to $178.7 million.

Going forward, the group said it is well-placed to benefit from strong structural tailwinds across superannuation, retirement, and managed account markets in FY27. Management expects continued FUM growth, supported by adviser adoption and stable product revenue margins.

Brokers are bullish too. Market Index data shows that all brokers agree on a strong buy rating on the ASX shares. The $5.62 average target price implies about 90% upside at the time of writing.

Judo Capital Holdings Ltd (ASX: JDO)

Judo was one of the strongest-performing bank shares on the ASX earlier this year. However, the ASX bank shares crashed 43% in late June after it downgraded its profit guidance for FY26. Since then, it has struggled to recover. 

Even a stronger-than-expected FY26 result in mid-August hasn’t been enough to renew investor confidence. 

Judo reported a 29% increase in NPAT and a 34% increase in profit before tax, at the top end of its revised guidance range. 

The company also expects FY27 profit before tax to be between $210 million and $220 million, driven by growth and operating leverage. That would translate to a 30% increase.

The sell-off earlier this year seems overdone to me, and the bank appears to be performing better than the market expected.

Market Index data shows the majority of brokers have a strong buy rating on the ASX shares. The $1.51 average target price implies a potential upside of around 50%, at the time of writing.

The post Brokers tip these 3 ASX shares to climb between 50% and 122% in the next 12 months appeared first on The Motley Fool Australia.

More reading

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• Buy, hold, sell: Generation Development, Fletcher Building, Saluda Medical shares
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• Brokers rate these 5 ASX shares as a strong buy, and tip upsides of 28% to 62%
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Samantha Menzies 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 Generation Development Group. The Motley Fool has a “https://www.fool.com.au/fool-com-au-disclosure-policy/”>disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX consumer discretionary shares have suffered a tough 12 months. 

The sector has faced several headwinds over the past year. 

Why are consumer discretionary shares struggling?

Some of the major contributors have been high interest rates, weaker consumer confidence, pressure on household budgets, and growing evidence that retail earnings are softening.

Consumer discretionary shares rely on consumer confidence because they sell non-essential products that consumers can easily delay or cut back on when they feel uncertain about their finances. 

Lower interest rates can reduce mortgage and debt repayments, giving consumers more disposable income to spend on clothing, dining, and entertainment. 

As a result, falling rates, stronger employment and improving consumer confidence can increase discretionary spending and support retailers‘ sales and earnings, while the opposite can hurt them.

One such consumer discretionary stock affected by these pressures is Lovisa Holdings Ltd (ASX: LOV). 

The fashion jewellery and accessories retailer has seen its share price fall 42% in the last 12 months. 

However, a new report suggests it could be a rebound candidate. 

Bell Potter optimistic

Overall, Bell Potter believes this option stands out amongst the retail sector because of its global expansion potential, attractive gross margins and low-price-point proposition. 

The broker said the key attraction is Lovisa’s international growth opportunity, particularly in the US and UK. Bell Potter sees significant room to expand beyond the current ~250 US stores, while the UK could benefit from the exit of a major competitor. 

They also expect relatively easier comparable-sales conditions in the coming months, which could help Lovisa maintain its strong start to FY27.

We continue to see further prospects arising from changes in the US/UK/South African competitor environment with the exit of the key competitor, offsetting risks in the Australian market with a fast growing competitor. 

While we remain cautious on the current weak consumer landscape and investments into market share & store refits to mitigate competitive pressures in key markets, we see a higher tolerance re accessibility from a low price point perspective together with a strong gross margin. LOV stands out in our coverage as a global retailer scaling its presence from ~50 regions with strong US/UK performance with better efficiencies within the US store network.

Healthy upside 

At the time of writing, Lovisa shares are trading at approximately $22.87.

However, the broker has a buy rating and $27.00 price target on the consumer discretionary stock. 

This indicates a healthy upside of 18%. 

The post Is this the best value stock amongst the ASX consumer discretionary sector? appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $6,500 monthly passive income?
• What sort of upside is UBS predicting for Lovisa shares?
• Here are the top 10 ASX 200 shares today
• 33 ASX shares going ex-dividend next week
• How much is needed in superannuation to target a $70,000 annual passive income?

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

DroneShield Ltd (ASX: DRO) shares are in freefall, and investors are starting to ask an uncomfortable question.

The counter-drone technology company closed at $1.60 on Monday, a fresh 52-week low, leaving the share price a staggering 76% below its previous high of $6.70, reached at the end of October last year.

When a stock falls that hard, the temptation to call a bottom gets stronger. But is the risk-reward actually tempting enough to buy? Or is this a falling knife dressed up as a bargain?

The demand story hasn’t gone anywhere

The numbers tell a grim story. DroneShield shares are down 20% over the past month and 49% over the past year. For a stock that was once one of the ASX’s hottest momentum plays, this is a stunning reversal of fortune.

Here’s the twist, though. While the share price has collapsed, the underlying business case hasn’t. Drones are not going away. If anything, they’re becoming more central to modern warfare, border security and the protection of critical infrastructure. That means governments and defence customers still need systems that can detect, track and stop them.

DroneShield is actually converting that demand into hard revenue. Its latest update showed FY26 committed revenue had reached $251 million, with a further $46 million already committed for FY27 and beyond. First-half revenue surged 74% to $125.8 million, while recurring revenue rocketed 229% to $11.5 million — a sign the business is shifting from one-off sales toward something stickier.

The company also landed its first order for its new RfRecon product from an existing Western European military customer. It’s not financially material yet, but it’s early validation for another product in an expanding range.

The catch: this is still a loss-making bet

None of that changes the fact that DroneShield is bleeding cash. First-half underlying EBITDA was $12.4 million in the red, and the statutory loss came in at $32.2 million.

DroneShield shares remain one of the highest-risk stocks on the ASX. Defence contracts don’t arrive on a neat schedule, so revenue can be lumpy and unpredictable.

The company is scaling fast, but investors still need proof that bigger revenue eventually turns into sustainable profit, not just bigger losses. And as governments pour more money into counter-drone systems, larger, better-funded defence contractors could pile into the same opportunity, squeezing DroneShield’s edge.

What are the brokers saying?

TradingView data shows just four analysts cover the stock — split evenly, with two buys and two sells.

The average 12-month price target for DroneShield shares sits at $1.99, roughly 24% above the current share price. Bell Potter is the most bullish at $2.40, with Canaccord Genuity close behind at $2.60.

Foolish takeaway

DroneShield isn’t a stock for the faint-hearted. The growth numbers are genuinely exciting, but the losses, volatility and competitive threats are just as real.

For risk-tolerant investors who believe in the counter-drone thematic, this pullback might be the entry point they’ve been waiting for. For everyone else, this is one to watch from the sidelines.

The post DroneShield shares just hit a new low. Is the only way up from here? appeared first on The Motley Fool Australia.

More reading

• DroneShield shares have crashed 51% in a year. Here’s why I’d buy them today
• Are DroneShield shares a buy at their 52-week low?
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• $10,000 invested in DroneShield and Core Lithium shares 3 years ago is now worth…
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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 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.