2 little-known ASX shares that could make big returns

Experts are bullish about the potential of these stocks.

We all want to make good returns with our ASX share portfolios, but it's not necessarily going to be the most well-known businesses that deliver the strongest results.

Sometimes it's the under-researched, smaller businesses that can outperform large ASX blue-chip shares over the long-term because they have a stronger growth runway, yet they're not priced for that level of success.

The two businesses I'm going to talk about are ones that the investment team in charge of the listed investment company (LIC), WAM Capital Ltd (ASX: WAM), likes.

That LIC is looking to find the most compelling undervalued growth opportunities in the Australian market. Let's look at those the WAM team recently highlighted in a monthly update. 

Red buy button on an Apple keyboard with a finger on it.

Image source: Getty Images

Cobram Estate Olives Ltd (ASX: CBO)

The Wilson Asset Management (WAM) investment team describes Cobram Estate Olives as a leading Australian food and agribusiness company that specialises in olive farming, the production and marketing of premium-quality extra virgin olive oil.

The Cobram Estate Olives share price rose in March after completing the acquisition of California Olive Ranch, expanding its US footprint, and increasing exposure to a large, growing premium olive oil market. The deal was recently given US anti-trust approval, which had been an overhang on the deal.

This acquisition is expected to more than double the ASX share's Californian footprint, broaden its customer base, and deliver "meaningful operational synergies and earnings growth over time".

WAM said the Cobram Estate Olives share price rose during March because of reduced execution risk, improved visibility on transaction completion, and confidence in the long-term growth profile of the enlarged US-focused business.

According to the forecast on CMC Invest, the business is valued at 24x FY27's estimated earnings.

GemLife Communities Group (ASX: GLF)

Another business that WAM likes – and it was a top 20 position in the WAM Capital portfolio at the end of March 2026 – is GemLife Communities.

This ASX share is a developer, builder, owner, and operator in Australia's land lease community (LLC) sector. It provides resort-style communities for homeowners aged 50 and over.

During March, the GemLife Communities share price fell 17%, partly because the business released its FY25 results after a period of strong performance following its listing on the ASX in July 2025.

WAM believes the pullback reflected a combination of investor profit-taking and broader market weakness in interest rate-sensitive real estate stocks amid ongoing interest rate uncertainty.

Despite the pullback, the fund manager remains "positive" on the group's outlook, supported by a strong development pipeline, favourable demographic tailwinds, and an integrated operating model that "underpins recurring revenue and margin expansion".

Solid sales momentum and disciplined capital management further support WAM's view that the ASX share can deliver long-term earnings growth.

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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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