Reporting season is in full swing, and I'm seeing a lot of opportunities as share prices shift across the ASX share market.
When businesses are growing quickly, but they're undervalued, there's room for very good returns, in my eyes.
I think the two ASX shares below can outperform the S&P/ASX 200 Index (ASX: XJO) over the next few years.
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Pro Medicus Ltd (ASX: PME)
The medical imaging software business has suffered a massive sell-off despite the ongoing financial success of the business. In the last month, it's down more than 40% and the past six months show a decline of around 60%, as the chart below shows.
That's an incredible decline for a business that has been one of the most impressive ASX share performers over the long term.
The FY26 half-year result was very solid. Revenue rose 28.4% to $124.8 million, and underlying profit before tax grew 29.7% to $90.7 million.
Incredibly, the underlying operating profit (EBIT) margin continues to improve – it rose to 73%, up from 72%. I don't know how high it can rise, but the company's bottom line looks like it has a very promising outlook.
It continues winning new, large contracts in the US, and this is helping drive the company's financials higher. Also, it's selling more modules to existing clients and winning cardiology contracts.
I don't think AI will hurt Pro Medicus as much as some investors expect. It could help Pro Medicus in some ways if it leads to better/faster software development, or better features.
The company said its pipeline remains "very strong". According to the forecast on CMC Invest, it's currently valued at just 80x FY26's estimated earnings, which is significantly smaller than it was before.
Centuria Industrial REIT (ASX: CIP)
The other ASX share I want to highlight is this real estate investment trust (REIT), which focuses on owning industrial properties across Australia in urban areas where demand is strong and supply is limited.
The industrial REIT reported that in the six months to 31 December 2025, it delivered 5.1% like-for-like net operating income growth. Rental income is being driven by increasing demand from population growth, e-commerce adoption, refrigerated space requirements (for food and medicine), and data centres.
With the result, the fund manager of the REIT, Grant Nichols, said:
CIP maintains significant earnings upside due to its strong, anticipated medium-term income growth resulting from material under-renting across the portfolio, expected improved portfolio occupancy, prudent completed capital management and the expected market rental growth stemming from Australia's favourable industrial market conditions. Improving tenant demand and constrained supply is expected to drive the national vacancy to less than 2.0% by 2030, providing a pathway to continued strong market rental growth.
It reported its net tangible assets (NTA) per unit grew slightly to $3.95 during the six-month period, suggesting it's trading at a discount of 19% at the time of writing.
