Zip Co Ltd (ASX: ZIP) shares have endured a bruising year, but brokers remain confident the sell-off may have gone too far.

After trading between $1.38 and $4.93 over the past 12 months, the ASX buy now, pay later stock faces several potential catalysts, including continued growth in its lucrative US market.

A broader technology sell-off, concerns about competition and slowing growth, geopolitical uncertainty and higher-for-longer interest rates have all weighed on investor sentiment.

But with Zip’s underlying financial performance strengthening, brokers remain remarkably bullish.

Brokers see big upside for Zip shares

TradingView data shows all 12 analysts covering Zip shares currently have either a buy or strong buy rating. The average broker price target of $4.56 implies potential upside of around 95% from the current share price of $2.35 at the time of writing.

The most bullish forecast is even more eye-catching, with one broker tipping Zip shares to reach $6.03. This points to a potential 157% return over the next 12 months.

UBS recently reiterated its buy rating and $4.70 price target, implying roughly 100% upside from the current share price. The broker said Zip’s current-year outlook was better than expected, providing greater confidence in the defensive qualities of its BNPL model during weaker economic conditions.

Why could Zip shares rebound?

Zip’s recent financial performance provides some substance behind the bullish broker forecasts for Zip shares. Its latest FY26 results showed cash EBTDA jumping 57.9%, while revenue rose 24.7% and NPAT increased 45.7%.

Management expects that momentum to continue, forecasting cash EBTDA growth of around 26% in FY27 as the business benefits from further growth and scale.

Perhaps the most important part of the story is where that growth is coming from. Zip has spent the past few years reshaping the business around product development, profitability and international expansion, with the US now firmly at the centre of its strategy.

The US accounted for roughly two-thirds of Zip’s revenue in FY26. Revenue from the market climbed 37.3% in Australian dollar terms and 44.3% in US dollar terms, comfortably ahead of the 4.6% growth recorded across ANZ.

Customer numbers tell a similar story. Active US customers increased 9.3% to 4.65 million, while ANZ customers declined 8% to 1.88 million. Zip expects US total transaction value to grow by more than 30% in FY27.

That makes the US expansion arguably the biggest potential driver of Zip’s earnings and valuation from here.

Could a Nasdaq listing provide another catalyst?

Zip is also pursuing a dual listing on the Nasdaq. A US listing could increase the company’s visibility among American investors and potentially support its ambitions in the world’s largest BNPL market.

For investors in Zip shares, that creates an intriguing setup: a share price that has fallen sharply, accelerating earnings growth, strong broker support and a potentially significant US opportunity.

Of course, the risks haven’t disappeared. Zip remains exposed to consumer spending, competition, regulation and interest rates, while its aggressive US expansion will need to keep delivering.

The post Experts tip battered Zip shares to deliver over 90% returns appeared first on The Motley Fool Australia.

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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 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.

Superannuation has now delivered four consecutive years of strong returns.

To what extent, you ask? Well, the median growth fund returned 9.5% in FY26.

Add the three years before it, and the total comes to roughly 44%.

That is a very good run by any standard.

So can these returns last for much longer?

What four years of superannuation gains added up to

The numbers are consistent across the board.

Chant West puts the median growth fund, holding 61% to 80% in growth assets, at 9.5% for FY26.

SuperRatings measures a slightly different option and arrives at 9.4%.

The three financial years before that came in at 9.2%, 9.1%, and 10.4%.

Four consecutive years above 9% is unusual.

Australians now hold $4.8 trillion in superannuation, according to APRA’s June statistics, up 9.5% over the year.

Contributions reached $236.3 billion across the same period, up 12.8%.

The system is both larger and better funded than it has ever been.

Where the returns came from

Keen investors might want to keep an eye out for this metric.

International shares returned 25.5% in hedged terms during FY26, and they carry roughly a 31% weighting in a typical growth fund.

Australian shares returned just 6.2%.

Australian-listed property was the only negative asset class at -1.8%, while Australian bonds managed 1.5%.

So the run was not broad at all. Instead, it was built on offshore equities, and within those, on a fairly narrow group of companies.

Chant West’s Mano Mohankumar was explicit about this trend:

Generally speaking, the better performing funds were those that had higher allocations to international shares, particularly where a larger proportion of that exposure was currency hedged.

What to expect from your superannuation instead

The real benchmark is the funds’ own objective.

Most growth options target inflation plus 3.5% a year, which currently works out at roughly 6%.

Chant West notes that funds have met that objective in 73% of rolling ten-year periods since 1992, and its assessment of FY26 was blunt, warning that this level of return “should not be treated as the new normal”.

The Australian portion of your balance is the part investors can most easily see for themselves.

By holding funds like the Vanguard Australian Shares Index ETF (ASX: VAS), which tracks the S&P/ASX 300 Index (ASX: XKO), charges 0.07% a year, holds $26.2 billion, and has a distribution yield near 3.1%, investors can potentially replicate these returns themselves.

Foolish takeaway

Four straight years above 9% is an impressive run.

FY27 has started steadily, with growth funds up about 1.3% through the first seven weeks.

I would plan around 6% a year rather than 9%, and treat anything above that as a bonus.

The post Superannuation just had a fourth straight year of gains. Can it continue? appeared first on The Motley Fool Australia.

More reading

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• Experts tip battered Zip shares to deliver over 90% returns
• 2 ASX shares tipped to return 19% to 47%
• Xero and Megaport: 2 ASX tech shares the market can’t agree on

Motley Fool contributor Mark Verhoeven 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 broker recommendations can be interesting when a share price has fallen but the underlying business is still moving in the right direction.

Morgans currently sees that opportunity in two ASX shares.

Both have been given buy ratings, with the broker arguing that recent weakness has created a better entry point.

Jumbo Interactive Ltd (ASX: JIN)

Jumbo Interactive shares are trading around $6.69 on Tuesday.

The lottery technology company recently reported underlying EBITDA of $85.2 million, up 25%, while underlying NPATA increased 20% to $50.6 million. That came despite another unusually weak year for large Australian lottery jackpots.

Morgans believes the result was stronger than the share price reaction suggested.

The broker noted that Jumbo’s international operations are becoming much more meaningful, with Managed Services and Prize Draws contributing $30.3 million compared with just $7 million a year earlier.

That growth helped offset a 10% decline in Australia as large jackpot activity remained soft.

There are still some uncertainties. Morgans pointed to questions around Brightstar and FY27 guidance that came in below parts of the market’s expectations.

Even so, the broker described that guidance as conservative and continues to expect Jumbo’s financial position to strengthen, forecasting a return to net cash by FY29.

Morgans has retained its buy recommendation and reduced its price target slightly from $10.25 to $9.81.

From the current share price, that implies potential upside of roughly 47%.

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare is another ASX share Morgans thinks has been treated too harshly by investors.

The shares are currently trading around $2.69 after falling following the company’s FY26 result.

Sigma delivered EBIT growth of more than 20%, while like-for-like Chemist Warehouse sales increased 13.4% in Australia and 12.2% internationally.

Australian growth slowed somewhat during the second half, but Morgans attributed this partly to a later start to the cold and flu season and a particularly strong comparison period.

Importantly, Sigma is targeting double-digit revenue and earnings growth in FY27.

The broker did trim its forecasts by around 3.5%, but it still believes the market reaction has gone too far.

Morgans said the post-result decline, which was also influenced by the possibility of some founders selling shares, had created an opportunity. As a result, the broker upgraded Sigma from accumulate to buy.

Its price target now sits at $3.19, down slightly from $3.30 previously.

That represents potential upside of around 19% from the current share price.

Foolish takeaway

Morgans sees upside in both ASX shares, although the investment cases are quite different.

Jumbo’s opportunity rests on international growth becoming a larger part of the business while Australian jackpot conditions eventually normalise.

Sigma, meanwhile, is still delivering strong growth following the Chemist Warehouse combination, and Morgans believes the recent sell-off has been overdone.

Based on the broker’s latest price targets, both ASX shares could have meaningful upside from here.

The post 2 ASX shares tipped to return 19% to 47% appeared first on The Motley Fool Australia.

More reading

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• Where I’d invest $20,000 in ASX shares this spring
• Top brokers name 3 ASX shares to buy next week
• 4 ASX shares scoring upgrades in the final week of earnings season

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