When you're looking at ASX stocks under $1, things can get a bit more speculative. But you can also come across those that have real potential for growth. Here are my top picks at the bargain end of the market this week.
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Hipages Group Holdings Ltd (ASX: HPG)
The share price of trade sales lead generator, Hipages, has dropped almost 20% over the last year to $0.84 at market close on Tuesday. Its primary service is connecting customers to tradespeople, a business that can be sensitive to interest rate hikes and weakened consumer spending. This might be driving some of the subdued investor sentiment. Also, it does not have a strong defensive moat with some investors concerned that it may be swamped by AI or generalist marketplaces.
But this is a business with strong underlying fundamentals. Even though revenue growth slowed in the first half of 2026, it has expanded its EBITDA margin, showing good operating leverage and discipline. A strong balance sheet with significant cash holdings further de-risks the investment.
Despite potential consumer spending concerns, Australians spent some $53.8 billion on renovations in FY25, the highest spend since 2022, suggesting the market for trades remains strong. Ongoing trade shortages may also fuel consumer demand for some time to come. The key for Hipages will be ensuring that it can continue to attract quality tradespeople in this climate.
For me, at current prices, Hipages is a real contender. It's a quality business with a good balance sheet in a market where demand continues to grow.
OFX Group Ltd (ASX: OFX)
Australian international payments provider, OFX, has seen share price falls of more than 50% over the last year, closing at $0.58 on Tuesday. Investors had high expectations of this business a few years ago and although its results have been relatively solid, it seems investors have been wanting more. Weakening sentiment across the broader tech sector may also be driving the drop.
OFX is a profitable business with low debt and a global customer network, spanning APAC, North America, Europe and the Middle East. In its last full year results, it reported a 5.5% decline in net operating income and its growth has slowed of late, but its scalable business model remains attractive.
In early February 2026, it announced a strategic review, which could include a potential sale, with management reiterating it believes the business to be undervalued at the current share price.
And I tend to agree. Despite some decline in recent results, OFX has been performing in the longer term and has several potential avenues for growth. It's clearly at a crossroads and the outcome of the strategic review will be interesting, but I think now is the time to move for investors seeking a bargain.
Adore Beauty Group Ltd (ASX: ABY)
Specialty beauty e-commerce and retailer, Adore Beauty has had a tough ride on the share market, dropping some 50% in the last 12 months to $0.42 at market close on Tuesday. However, it continues to deliver positive, if small, revenue growth. That said, net profit has declined sharply (69.9%), which is likely why investor sentiment continues to weaken.
However, at current prices, I think it's worth considering because its revenue is rising, its brand equity is intact, and there are some positive indicators amongst the challenges:
- It has an established brand that has shown it can ride out challenging market conditions
- It's underlying EBITDA for HY26 was up 14.5% on the prior corresponding period, meaning it can generate operating leverage
- Customer growth remains solid
- It appears to be demonstrating disciplined inventory management, critical in such a fast-moving category
It's also worth noting that its profitability decline is likely largely driven by the step up in its omni-channel rollout, with the group opening 10 new stores since July.
This one might be a little more speculative and it's certainly a turnaround play — it will need to recover its margins. But if you are looking for something with hidden potential at the bargain end of the market, Adore Beauty is one to consider.
