Finding ASX shares capable of producing market-beating returns isn’t easy, particularly when valuations remain elevated. But some brokers see significant upside in these two growth companies over the next year.

Both Mesoblast Ltd (ASX: MSB) and Zip Co Ltd (ASX: ZIP) have faced different challenges, but analysts believe their growth prospects could translate into substantial share price gains.

Mesoblast: strong sales growth and a well-funded outlook

The clinical-stage biotech has had a sluggish start to 2026. Mesoblast shares currently trade at $2.34, down 14% year to date but still 10% higher than they were 12 months ago.

The weakness appears to reflect greater investor caution around clinical timelines, alongside some profit-taking following last year’s strong rally.

Mesoblast develops and commercialises allogeneic cellular medicines for complex diseases. Some of its products are already in use, while other cell therapies are progressing through late-stage clinical trials.

Its Ryoncil product is gaining traction, while the company remains well funded. Brokers are also optimistic that sales can continue growing strongly in FY27.

TradingView data shows all five analysts covering the ASX shares rate them a strong buy. Their average price target of $4.08 implies potential upside of approximately 75%.

Bell Potter recently said Mesoblast’s latest results were broadly in line with expectations. The broker sees continued double-digit growth from Ryoncil, alongside major potential catalysts from Rexlemestrocel in heart failure and chronic lower back pain.

Bell Potter has a buy rating and a $4.45 price target, implying around 90% potential upside.

Zip: US as main attraction

Zip is a fintech providing buy now, pay later and digital payment services to consumers and merchants. Its rapidly expanding US business is the key attraction.

The US accounted for around two-thirds of Zip’s revenue in FY26, with total revenue increasing 24.7%. US revenue surged 37.3% in Australian dollar terms and 44.3% in US dollar terms, compared with just 4.6% growth in ANZ.

The US is also driving customer growth. Active US customers rose 9.3% to 4.65 million, while ANZ customers fell 8% to 1.88 million. For FY27, Zip expects US total transaction value to increase by more than 30%.

Importantly, profitability is growing faster than revenue. Cash gross profit increased 26.2% to $642.3 million, while cash operating profit jumped 57.9% to $268.9 million.

Analysts are particularly bullish. TradingView data shows all 13 analysts rate Zip a buy or strong buy. The average $4.52 price target suggests around 72% upside, while the most bullish target of $6.03 implies potential gains of roughly 130%.

UBS recently maintained its buy rating and $4.70 target, implying around 79% upside. Macquarie also has a buy rating, although its $3.50 target is considerably more conservative.

For investors hunting for ASX growth shares, both companies have significant potential, but that potential comes with materially higher risk than established blue-chip stocks.

The post Experts tip these $3 billion ASX shares to deliver over 75% returns appeared first on The Motley Fool Australia.

More reading

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• Is it time to get greedy with Zip shares?
• Short sellers are targeting these ASX shares. Should you worry?
• These are the 10 most shorted ASX shares
• Why now is the time to buy low on these ASX healthcare shares with up to 84% upside

Motley Fool contributor Marc Van Dinther has positions in Mesoblast. 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.

Home values have now fallen for five months in a row, and the ASX is already feeling the impact.

Cotality’s national index dropped 0.9% in August, which leaves values 3.6% below their March peak.

REA Group Ltd (ASX: REA) shares fell 4.21% on Monday as the data landed, whereas Stockland Corp Ltd (ASX: SGP) climbed 2.29% on the same day.

Understanding that divergence will be key in determining how ASX investors should position themselves.

Why falling home values matter for ASX investors

The downturn has stopped being a Sydney story.

Ninety-three per cent of capital city suburbs recorded a decline over winter, and every capital except Darwin went backwards across the three months.

Sydney led the falls with a 1.4% drop in August and now lies 7.1% below its February peak.

Melbourne and Canberra each fell 1.1%, while Adelaide and Perth were down 0.8%.

Sales volumes are tracking 15.5% below the same period last year.

Cotality research director Tim Lawless summed up the change:

What started as a more concentrated easing across higher-value segments has now become a much more generalised softening, with the vast majority of capital city suburbs recording some level of decline.

For investors, the core question is whether a company earns its money from prices, from volumes, or from the loans behind them.

REA Group has the most direct exposure

REA Group is paid by agents to list properties.

When sales volumes fall 15.5%, that quickly becomes a revenue problems.

REA shares closed Monday at $169.78 and are down 30.19% over the past twelve months.

FY26 was still a strong year for the business.

Revenue rose 7% to $1,793 million and net profit after tax climbed 15% to $650 million, with the operating EBITDA margin expanding three percentage points to 61%.

The company lifted its dividend 20% to $2.97 per share.

The catch is the outlook, where management expects national buy listings to be flat to down low single digits in FY27.

Stockland is building into weaker home values

Stockland sells new houses and land, which is a different business entirely.

The company’s FY26 result delivered funds from operations of $892 million, up 10.4%, with FFO per security rising 9.1% to 36.9 cents.

Masterplanned community settlements jumped 30% to 8,902 lots and land lease settlements rose 48% to 777 homes.

Gearing improved to 22.7% from 25.2%.

FY27 guidance is for FFO per security of 38.0 to 39.0 cents.

At around $4.46 the shares trade on a price-to-earnings ratio of 10.51 and yield 5.85%, having fallen 28.64% across the year.

Affordability improves as prices fall, which is precisely why a residential developer can rally on a weak housing print.

Commonwealth Bank owns the mortgages

Commonwealth Bank of Australia (ASX: CBA) is the largest mortgage lender in the country.

The company’s FY26 result produced cash net profit after tax of $10,982 million, up 7%, on a net interest margin of 2.05%.

Home loan arrears at 90 days or more were at 0.73%, and the loan impairment expense rose 9% to $788 million.

Chief executive Matt Comyn noted that housing activity had softened from a high base while application volumes appeared to have stabilised in recent weeks.

Falling home values do not create losses on their own. But they matter when borrowers cannot pay and the security is worth less than the loan.

Arrears of 0.73% are elevated and alarming, yet CBA still managed to return $5.05 per share fully franked to shareholders.

Foolish takeaway

The three companies are at very different points of the same cycle.

REA Group looks the most exposed, because listing volumes are already falling and the multiple still assumes growth.

Stockland arguably benefits, since cheaper land and better affordability feed straight into its development pipeline.

CBA sits somewhere in between, with a slower loan book but no real credit problem yet.

If home values keep sliding through spring, I would expect the gap between the three stocks to widen.

The post Home values just fell for a fifth straight month. Which ASX shares are most exposed? appeared first on The Motley Fool Australia.

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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.

WiseTech shares delivered their best month in more than a year in August, with the stock closing Monday at $40.38.

That capped an 11% monthly gain.

It also leaves WiseTech Global Ltd (ASX: WTC) down 41% for the calendar year and 60% over twelve months.

A rebound of that size, after a fall of that size, deserves a careful look.

What actually happened to WiseTech shares in August

The month came in two distinct halves.

Across the first three weeks the shares surged 25%, reaching $45.47 on 25 August.

Then the FY26 result landed, and the rally lost its momentum, with the stock giving back around 11%.

Standing behind all of this was the Australian Competition and Consumer Commission executing a search warrant on the company on 19 August, which knocked roughly 10% off the shares in a single session.

The FY26 result was not the problem

The numbers themselves were quite good.

Total revenue rose 79% to US$1,395.9 million, helped enormously by the e2open acquisition, which contributed US$541.2 million on its own.

Underlying EBITDA climbed 56% to US$644.5 million and underlying net profit after tax rose 29% to US$313.5 million.

Free cash flow increased 43% to US$410.7 million, and the final fully franked dividend rose 14% to 8.8 US cents per share.

Reported EBITDA of US$558.4 million landed inside guidance but slightly below the US$569.5 million consensus, which is the immediate reason the shares fell.

Chief Executive Zubin Appoo framed the year around WiseTech’s ongoing transformation:

This was a transformational year for WiseTech. We acquired e2open to expand our offerings into adjacent markets, launched our new commercial model with more than 95% of CargoWise customers now on CargoWise Value Packs, and adopted AI across our own operations.

FY27 guidance is for revenue growth of 6% to 10%, reaching US$1.48 billion to US$1.54 billion.

Underlying EBITDA is forecast to grow 12% to 21%, with margins improving to between 49% and 51%.

That is a sharp deceleration from 79% revenue growth, and it is the reason the market hesitated.

What the brokers make of WiseTech shares

The spread of price targets is extraordinary.

Morgan Stanley has a buy rating and a $70 target, implying 73% upside from Monday’s close.

Morgans retained buy with $62.50, Bell Potter cut its target to $65, UBS trimmed to $56 while keeping a buy, and Citi lifted to $58.75.

Macquarie sits at $48.20, also with a buy.

At the other end, Jefferies downgraded to hold with a $45 target and JPMorgan has a hold rating with a $40 target.

The bull case and the bear case

The bull case is straightforward enough.

CargoWise remains the operating system for global freight forwarding and is used by the world’s largest forwarders, including Toll and DHL.

Cost programs delivered around US$115 million in annualised savings, and margins are guided higher again in FY27.

The bear case is equally clear.

An active ACCC investigation has no defined end date, the company has cycled through leadership and board changes, and the shares have fallen 60% in a year.

Foolish takeaway

WiseTech shares look cheap against almost every analyst target.

However, one good month does not resolve a regulatory investigation and all the ongoing risks surrounding the company.

I would want the ACCC matter clarified, or two consecutive results that meet guidance, before calling this a true turnaround.

Investors who already hold have a reasonable argument in the FY26 numbers to stay put.

For everyone else, the August rebound in WiseTech shares should be treated with a bit more caution.

The post WiseTech shares had their best month in a year. Is this a buying opportunity? appeared first on The Motley Fool Australia.

More reading

• 5 things reporting season taught ASX investors about FY27
• WiseTech shares enjoy best month in over a year. More to come?
• 5 ASX 200 shares with 33% to 61% upside post-results: experts
• Morgans names 3 ASX tech stocks to buy
• Why I think Xero and WiseTech shares are strong buys

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