If you want good returns, you need to find ASX shares destined for continued long-term growth. After all, owning a slow or even mediocre-growing stock over a few years doesn't guarantee returns. Here are three ASX shares I'd buy and hold this year.
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IperionX Ltd (ASX: IPX)
Titanium metal and critical materials company, IperionX, recently said it plans to ramp up production with the goal of becoming America's largest and lowest-cost titanium powder producer.
The company recently received a prototype purchase order valued at US$300,000 from American Rheinmetall. The order is for the production of 700 lightweight titanium components destined for US Army heavy ground combat systems.
IperionX also recently received the final US$4.6 million tranche of funding under a previously announced US government award. The funding comes through the US Department of War's Industrial Base Analysis and Sustainment program, which aims to strengthen domestic supply chains for critical materials.
Analysts are bullish on the company's shares, with a strong buy consensus rating for IperionX. The maximum target price is $11.03, which implies a potential 84.69% upside at the time of writing.
South32 Ltd (ASX: S32)
The prices of copper, silver and gold have reached all-time highs this year, and the momentum has driven South32's shares toward a multi-year high earlier this month. The miner has also posted strong financial results over the past six months and solid production figures.
Last month, the miner announced that it had exceeded expectations for first-half production. Overall, the results were ahead of consensus, and investors were thrilled.
I don't think the good news will stop there either. In fact, I think South32 could outpace mining giant BHP this year.
South32 shares are tipped to rise up to 11.83% from the current share price, to $5.22 a piece.
Xero Ltd (ASX: XRO)
Xero's "sticky" subscription-based model, high retention rate and active product expansion make it a great contender for growth this year.
The ASX business is still early in its global expansion, too. If it can crack the US market and become more dominant while maintaining its position and revenue in other markets, its earnings could surge as well.
Despite the company's operating revenue, net profit and cash flow continuing to rise, its share price has dived recently as investor confidence struggles to pick back up. Concerns about AI and the company's US Melio acquisition dented sentiment last year. But I think the latest share price decline is a fantastic opportunity for investors to buy the stock cheaply.
In fact, I'm quietly confident that Xero shares could double in value in 2026, or go even higher. Analysts are mostly bullish on the shares and expect an upside of up to 200.55% this year, at the time of writing, to $233.73.
