Westpac Banking Corp (ASX: WBC) shares have delivered strong returns for shareholders in recent years.

The bank still offers an attractive dividend and remains one of the largest financial institutions in Australia.

But if I were investing fresh money today, I think there are two ASX shares with better prospects for long-term total returns.

Why I am cautious on Westpac

My issue with Westpac is not the quality of the bank. It is the amount of growth I can see from here.

Consensus forecasts point to only modest earnings per share growth over the next couple of years, while the dividend is expected to remain broadly flat.

At the same time, Westpac operates in a highly competitive mortgage and deposit market. Winning more home loans does not necessarily translate into strong profit growth if margins are being squeezed in the process.

That leaves me wondering where a substantial increase in shareholder returns would come from.

Macquarie Group Ltd (ASX: MQG)

Macquarie would be one of my alternatives to Westpac shares. Its opportunity is much broader than traditional Australian banking.

Macquarie operates across asset management, commodities, infrastructure, energy, financial markets, and banking. That gives the group exposure to investment trends happening around the world.

I particularly like its ability to deploy capital into areas such as infrastructure, renewable energy, and transport when attractive opportunities appear.

Earnings can be uneven from year to year, and Macquarie will always be influenced by market conditions.

But over a longer timeframe, I think the company has more ways to grow than Westpac.

If Macquarie continues expanding its global businesses and finding attractive places to invest, I can see earnings becoming considerably larger over the next decade.

ResMed Inc. (ASX: RMD)

ResMed is the other ASX share I would choose ahead of Westpac.

The company develops devices, masks, and software for sleep apnoea and respiratory care.

What I like is how much of the potential market remains untreated.

More than one billion people globally are estimated to have sleep apnoea, yet diagnosis and treatment rates remain relatively low. That leaves ResMed with a substantial pool of potential patients still to reach.

The business also benefits after a patient starts treatment. Masks and other accessories need replacing over time, giving ResMed recurring revenue alongside sales to new patients.

Its recent decision to sell the MatrixCare software business should also allow management to concentrate more closely on its core sleep and respiratory operations.

I think that combination of a large underserved market, recurring demand, and continued innovation gives ResMed a long runway.

Foolish takeaway

Westpac shares could still be a sensible choice for investors prioritising dividends.

But I think its future returns are likely to rely more heavily on income and modest earnings growth.

Macquarie and ResMed give me clearer opportunities for the underlying businesses to become substantially larger over time.

For that reason, I would back both to deliver stronger total returns than Westpac over the long term.

The post 2 ASX shares I think could return more than Westpac 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 positions in and has recommended Macquarie Group and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The All Ordinaries Index (ASX: XAO) has fallen lower in early morning trade on Thursday as investor confidence in ASX shares continues to take a hit.

At the time of writing, the All Ords Index is down around 1% for the day, and is now roughly 0.5% lower for the year-to-date.

But there are some ASX shares that brokers expect will outperform the index going forward. Here are two of them, and they’re tipped to have upsides of up to 90%.

SiteMinder Ltd (ASX: SDR)

SiteMinder is a technology business that provides an e-commerce platform for hotels and other accommodation businesses. The company touts its product as helping hotels to sell, market, manage, and grow their businesses from one platform. 

The company posted a strong FY26 result last month, including a 22% increase in revenue and a 96.5% increase in EBITDA. Its net loss also improved to $11.3 million, down from a net loss of $24.5 million in FY25. And these results came amid headwinds from a strong Australian dollar and ongoing global travel challenges. 

Looking ahead, SiteMinder said it expects its adjusted EBITDA margin to keep expanding in FY27 and reach the mid-20% range by FY30. ARR is targeted to continue growing in the 20% range (CAGR) over the next four years. 

But it looks like investors were disappointed with the company’s outlook and slower-than-expected growth projection. At $2.80 a piece, the share price has crashed around 27% since the results announcement and is down around 54% for the year-to-date.

But I think the latest sell-off was overdone. The current share price looks like a rare buying opportunity to buy shares cheaply. 

Market Index shows that the majority of brokers have a buy rating on the ASX shares. And the $5.40 average target price implies an upside of around 90% at the time of writing.

Catalyst Metals Ltd (ASX: CYL)

It’s been a choppy 2026 so far for the ASX gold producer’s shares.

The share price spiked to an all-time high in January when it announced a significant new high-grade discovery at its Plutonic Gold Belt. But then the ASX shares shed around 52% of their value to an annual low in early June. The crash followed headwinds from a weaker gold price, higher mining costs and an investor rotation away from gold shares.

But now it looks like the headwinds from earlier this year are finally turning into tailwinds. Catalyst shares have now rebounded around 41% since June and are trading at $6.57 at the time of writing. For the year-to-date, the shares are roughly 11% lower.

In late-July the gold miner announced a record quarterly gold production of 31,886 ounces at an all-in sustaining cost (AISC) of A$2,666 per ounce, and built cash reserves by A$54 million in the June 2026 quarter.

And earlier this week, the company announced its FY26 results. It posted record metrics across the board, supported by a buoyant gold price. Revenue climbed 39%, EBITDA was up 57%, and NPAT was 43% higher.

Management expects growth to continue in coming years as it develops and ramps up production at its Trident underground, Old Highway and Cinnamon sites.

Market Index data shows that brokers are very bullish about the outlook for the ASX shares. All brokers have a strong buy rating on the ASX shares. The average target price of $10.94 implies a potential 66% upside at the time of writing.

The post 2 ASX shares tipped by brokers to return 66% and 90% appeared first on The Motley Fool Australia.

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

Westpac Banking Corp (ASX: WBC) shares have endured a difficult year, falling around 9% over the past 12 months. At $34.39, the $117 billion banking giant is trading near its 52-week low.

That decline has made Westpac’s valuation look more tempting. But with several challenges weighing on the banking sector, is the weakness an opportunity to buy — or a warning sign?

Let’s see what the market experts think.

Why Westpac shares are under pressure

August was another challenging month for ASX bank shares as renewed concerns about inflation and interest rates weighed on investor sentiment.

Westpac shares are also facing several company-specific headwinds. Mortgage demand is softening, competition for borrowers remains intense, the housing market is facing uncertainty and pressure on lending margins could weigh on profitability.

That doesn’t make Westpac a bad bank, however. The lender has millions of customers, a substantial deposit base and one of Australia’s largest mortgage businesses. It is also investing in technology and expanding its capabilities in areas such as business banking.

Its latest quarterly result was reasonably encouraging. Westpac delivered $1.8 billion in net profit excluding notable items, representing a 2% increase compared with the average quarterly profit in the first half. Its net interest margin also remained steady at 1.89%.

Mortgage competition puts pressure on margins

However, there were some less encouraging developments beneath the headline numbers.

Mortgage application volumes declined as competition intensified and borrowers remained cautious amid interest-rate uncertainty. Westpac has also warned that margins could come under further pressure in the near term.

For a major bank whose earnings are closely tied to lending margins, that’s an important risk for investors in Westpac shares to consider.

What do brokers think?

The broker consensus doesn’t exactly suggest Westpac shares are a screaming buy.

According to TradingView data, nine of 16 brokers rate the stock a sell or strong sell. Six have a hold recommendation, while just one has a strong buy rating.

The average price target is $33.38, below the current share price of $34.39.

There is still a wide range of views. The most bullish forecast is $45, implying potential upside of around 31%, while the most pessimistic target suggests the shares could fall another 17% over the next 12 months.

Foolish takeaway

The lower valuation of Westpac shares, compared to Commonwealth Bank of Australia (ASX: CBA) and dividend appeal could make the shares worth considering for income-focused investors willing to accept some near-term uncertainty.

But a cheaper share price doesn’t automatically make a stock a bargain.

With mortgage competition intensifying and margins facing further pressure, the case for buying the dip in Westpac shares isn’t quite as compelling as the recent weakness might suggest.

The post Is the pullback in Westpac shares a buying opportunity? appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares I think could return more than Westpac
• How much superannuation do I need to earn $100 a day in passive income?
• How much do I need to invest in CBA shares for $10,000 of passive income?
• $10,000 invested in Westpac and NAB shares 3 years ago is now worth…
• How much passive income can I earn off a $550,000 superannuation balance?

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 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.