There are a number of very attractive ASX shares that are growing revenue and earnings at a strong pace. We're going to look at three names that are predicted to deliver double-digit returns.
I like to look at smaller businesses as potential opportunities because of how much earlier on in their growth journeys they are compared to a name like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).
Let's take a look at two of the most promising ASX share for 2026.
Judo Capital Holdings Ltd (ASX: JDO)
Broker UBS describes Judo as a fast-growing challenger that focuses exclusively on servicing small and medium enterprises (SMEs). It offers business loans, lines of credit, asset finance, bank guarantees and SME home loans, funded by a combination of term deposits and wholesale funding.
After seeing the company's trading update at the AGM, UBS was optimistic with a buy recommendation and a price target of $2.20. That implies a possible rise of 26% over the next year, at the time of writing.
UBS said that Judo's net interest margin (NIM – how much profit it makes on lending in percentage terms including the cost of funding) – guidance of more than 3% is helped by deposits, competition and funding mix improvements.
Judo is offering more term deposit durations, such as five, seven and eight-month terms that provide more stability and maturity opportunities.
UBS said new business origination "looks strong" and Judo is expected to have a strong end to 2025, which are usually seasonally-strong months. Agri and regional lending is "doing a lot of the heavy lifting" in terms of where growth is coming from.
The ASX share had an overall lending pipeline of around $1.9 billion at the time of the AGM, with Judo expecting between 80% to 90% of that to convert in the subsequent months.
UBS projects the company could generate $131 million of net profit in FY26 and reach $270 million of net profit by FY30.
Zip Co Ltd (ASX: ZIP)
Zip is one of the world's larger buy now, pay later businesses with a presence in ANZ and the US.
UBS was very impressed by Zip's FY26 first quarter update, with a buy recommendation and a price target of $5.40. That implies a possible rise of 75% over the next year, if that comes true.
The broker noted that US growth has accelerated in FY26, with first-quarter growth of 47% in US dollar total transaction value (TTV) terms.
UBS said Zip said is now expecting US TTV to grow by more than 40% in FY26.
The broker believes the progress in the first quarter of FY26 sets it up well for the important sector quarter, with "continued proof of engagement growth (spend per customer, higher AOV [average order value] and frequency)", according to UBS.
While the ASX share is seeing strong US growth, it's also seeing a trending-higher US loss rate, though this "makes sense given greater growth from new customers…and is still at a comfortable level balancing growth and profitability."
The ANZ metrics are "strong", though receivables growth "continues to lag stronger TTV growth" and the broker is forecasting a catch-up from here onwards.
UBS predicts that Zip could generate net profit of $86 million in FY26 and reach $385 million by FY30.
