Experts assess a wide array of ASX shares all the time to try to find the best opportunities available. There are few that truly stand out as the best ASX shares.
Businesses with strong profit margins and global growth intentions have the capability to grow their profits significantly, unlocking major shareholder returns.
The two businesses I'm going to cover in this article have already delivered enormous returns for investors up until now, with more growth is projected.
Below are two of the strongest and most promising businesses on the ASX rated as buys by experts.
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CAR Group Ltd (ASX: CAR)
UBS rates CAR Group as a buy and describes the company as the leading Australian provider of online automotive classifieds. It has a flagship site, carsales.co.au, as well as sites about selling motorcycles and marine vehicles. The business also has investments in South Korea (Encar), the United States (Trader Interactive) and Chile (Chileautos) in addition to being a majority shareholder of Webmotors in Brazil.
The broker currently has a price target of $46.50 on the business. A price target is where the broker thinks the share price will be in 12 months from the time of the investment call. Therefore, UBS is suggesting the CAR Group share price could rise by 21% over the next year.
UBS has been impressed how CAR Group has managed to deliver credible results despite tough operating conditions, with key positives being a resilient US performance and strong momentum in Latin America. The broker also saw momentum going into FY26 with Trader Interactive.
The broker is "positive on the story" and believes FY26 investments could drive medium-to-long-term returns.
UBS is forecasting the ASX share could deliver net profit of $420 million in FY26 and reach $674 million by FY30.
TechnologyOne Ltd (ASX: TNE)
Another ASX share that UBS currently rates as a buy is TechnologyOne, an enterprise software solutions provider. The broker describes it as a business that offers an integrated suite of software solutions across a variety of industries including local, state and federal governments, financial services, education, utilities, health and community services. It has operations in Australia, New Zealand, the UK, Asia and the South Pacific.
TechnologyOne consistently delivers strong growth year after year. UBS notes that in the FY25 half-year result, the business delivered annual recurring revenue (ARR) year-over-year growth of 21% and profit before tax (PBT) growth of 33%. UBS expects the company's FY25 profit before tax to grow by 18%.
Following that, UBS estimates the ASX share's PBT will rise by another 19% in FY26 and 20% in FY27.
The broker is expecting TechnologyOne's net revenue retention (NRR) to help drive the company's financials. NRR describes how much revenue it generated in the period from existing clients, so anything above 100% shows growth from last year. Can TechnologyOne deliver NRR of 115% in the medium-term? UBS said:
Yes, based on strong traction with new product initiatives like the DXP and SaaS+, with runway ahead as the legacy 'Ci' product is transitioned to the 4th gen 'CiA' product. We forecast 116% pa NRR over FY25-26 and 115% FY27, at the lower end of its 115-120% pa target range (but still impressive).
The broker also expects the company's PBT margin to hit 35% by FY28. It said:
Yes, supported by strong top-line growth driving some operating leverage over time, offsetting the initial margin impact from the transition to SaaS+. We expect TNE to achieve its targeted 35% PBT margins by FY28, which incorporates R&D investment in the 20-25% of sales indicative range over this period.
UBS has a buy rating on TechnologyOne shares, with a price target of $42.20. That implies a possible rise of around 7.5% for the ASX share in the next year.
