2 ASX shares highly recommended to buy: Experts

These businesses have a lot going for them…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's interesting when one expert rates an ASX share as a buy. But, it's very intriguing when multiple analysts have a buy rating on that business.

A lot has happened in the last few weeks as a result of the Middle East events, one of which is ASX share market valuations taking a hit.

When share prices fall, it's a good idea to look for opportunities that could deliver market-beating returns over the long-term. With that in mind, let's look at two of the most well-liked ASX shares by analysts.

Buy and sell written on a white cube.

Image source: Getty Images

Life360 Inc (ASX: 360)

Life360 describes itself as a family connection and safety company, keeping people close to people, pets and things they care about most, with a range of services, including location sharing, safe driver reports, and crash detection with emergency dispatch.

Impressively, the business serves approximately 95.8 million monthly active users (MAU) across more than 180 countries.

According to CMC Invest, there are currently seven buy ratings on the ASX share, with an average price target of $32.80. That implies a possible rise of around 70% over the next year.

The company is growing at a very pleasing pace – compounding is a powerful financial force.

Life360 reported that in the fourth quarter of 2025, revenue increased 26% year-over-year to $146 million, while annualised monthly revenue (AMR) rose 30% to $478 million.

Those excellent levels of growth were partly driven by the fact that total MAU grew 20% year-over-year, with global paying circles increasing 26% to 2.8 million.

The paying circle growth is being driven by both the US (with 23% growth to 2 million) and internationally (with 32% growth to 0.8 million).

The company is also increasing prices, which is helping drive the average revenue per paying circle (ARPPC) – this increased by 6% year-over-year to $139.54.

Most importantly, the revenue growth is turning into rising profit, which is the key driver of increasing the intrinsic value of a business. In the 2025 fourth quarter, adjusted operating profit (EBITDA) grew 53% to $32.4 million.

Sigma Healthcare Ltd (ASX: SIG)

The company has multiple brands – Chemist Warehouse, Amcal and Discount Drug Stores. It supports Australia's largest retail network of franchised pharmacies, with more than 880 franchised pharmacies.

According to CMC Invest, there are currently six buy ratings on the business. The average price target on the ASX share is $3.25, suggesting a possible rise of 24% over the next year.

Going forward, Chemist Warehouse will be the key earnings driver of the business due to its scale and growth plans.

In the FY26 half-year result, the company's revenue grew by 14.9% to $5.5 billion, normalised operating profit (EBIT) grew 18.7% to $582.9 million and normalised net profit jumped 19.2% to $392 million.

Those numbers were largely driven by Australian Chemist Warehouse-branded stores, with sales growth of 17.2%.

In the first half of FY26, it reached 550 Australian Chemist Warehouse stores and 97 international Chemist Warehouse stores, this represented an increase from 537 Australian locations and 86 international locations at the end of FY25. Currently, international growth is focused in New Zealand and Ireland.

Through a combination of strong comparable store sales, ongoing store network expansion in Australia and overseas, and rising profit margins, it seems the ASX share is on track for a very compelling future.

According to the forecast on CMC Invest, the Sigma Healthcare share price is valued at 29x FY28's estimated earnings.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

A panel of four judges hold up cards all showing the perfect score of ten out of ten
Growth Shares

10 excellent ASX shares to buy in May

Here is a selection of high-quality shares that could be in the buy zone this month.

Read more »

Man with a rocket strapped to his back on a tiny bicycle ready to take off.
Growth Shares

2 ASX shares tipped to grow 90% or more in the next 12 months!

These stocks have the potential to deliver major returns!

Read more »

Young businesswoman sitting in kitchen and working on laptop.
Growth Shares

Down 67%, is this ASX 300 share a bargain buy?

A sharp share price decline has reset expectations, but the underlying growth story and market opportunity have not changed.

Read more »

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their shares on a laptop.
Growth Shares

2 high-quality ASX 200 shares experts rate as buys

These stocks are top-rated by some of Australia’s top brokers.

Read more »

Person holding Australian dollar notes, symbolising dividends.
Growth Shares

3 amazing ASX 200 shares to buy with $5,000 in May

Analysts are recommending these ASX 200 shares as buys.

Read more »

woman accessing her smart home from her phone
Growth Shares

This beaten-down ASX 200 growth stock could be one to watch

Demand for data centres is accelerating, but earnings are yet to catch up. That gap could define the opportunity from…

Read more »

A kid stretches up to reach the top of the ruler drawn on the wall behind.
Growth Shares

2 top ASX shares to buy and hold for the next decade

I really like these investments for the long term.

Read more »

A woman hangs from a cliff with raging waters below.
Growth Shares

The ASX's hottest shares just stumbled — warning sign?

Are expectations starting to outpace fundamentals?

Read more »