Over the long term, the share market has delivered investors a return of around 10% per annum.
While this is a great return, you don't necessarily have to settle for that. Not when there are shares out there that could be market-beaters.
For example, the two ASX shares listed below have been named as buys and tipped to rise between 20% and 40% from current levels.
Here's what you need to know about them:
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Light & Wonder Inc. (ASX: LNW)
Goldman Sachs thinks Light & Wonder could be an ASX share to buy. It is a cross-platform global games company that provides gambling products and services.
Earlier this month, the broker put a buy rating and $190.00 price target on its shares. This suggests that they could rise 21% over the next 12 months.
Goldman is positive because it believes Light & Wonder is positioned to win market share in Australia and North America and drive strong profit growth. It explains:
LNW is well-placed to continue winning market share in ANZ and North America gaming operations, driving earnings growth of +12% (2-year CAGR) to achieve its FY25 AEBITDA target of US$1.4bn, which we believe has not been factored into market expectations (GSe +3% above VA consensus). Additionally, we believe SciPlay is out indexing the social casino segment driven by higher monetisation rates and modest user growth, despite headwinds in the broader social gaming industry.
Lynas Rare Earths Ltd (ASX: LYC)
Bell Potter continues to believe that this rare earths producer's shares are undervalued by the market.
In response to its quarterly update last week, the broker has put a buy rating and $8.50 price target on the ASX share. This implies potential upside of almost 40% for investors over the next 12 months.
The broker is positive on the outlook for rare earths and believes that Lynas is a great way to gain exposure to the elements. It recently said:
We continue to see prices painstakingly grind higher from current levels through to the end of the year. China domestic supply may continue to keep a lid on rapid price revisions, however not at current levels. Reports of activity over March highlighted a reduction in NdPr oxide imports into China and a reluctance of domestic miners to sell material to downstream magnet makers whose stockpiles were bottoming out. Combine this with a rapid rise in EV production globally and you have a more positive outlook for NdPr.
