The S&P/ASX 200 Index (ASX: XJO) has tumbled again in early morning trade on Wednesday as inflation fears, interest rate hike concerns, and surging oil prices continue to put pressure on Australian stocks across several sectors.
During periods of market weakness, it's important to look for stocks with the strongest outlooks. Here are four ASX stocks that brokers rate as strong buys, with potential upside of over 50%.
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Seek Ltd (ASX: SEK)
Seek shares have tumbled another 0.6% in Wednesday morning trade, to $13.97 a piece. There is no price-sensitive news from the company this week, so the downward share price pressure is likely a mix of broad economic fears about slowing economic growth and a higher cost of living, combined with concerns about a weakening job market. Seek reported robust double-digit revenue growth for the first half of FY26, although investors were underwhelmed by the result. But it looks like analysts consider the shares well below fair value. Hiring activity is expected to slowly improve this year, and as a company so closely linked to the employment market, this is great news for Seek. Market Index data shows brokers are tipping a 58% upside to $21.94 at the time of writing.
Telix Pharmaceuticals Ltd (ASX: TLX)
Telix shares have rebounded sharply from a multi-year low in mid-February. In Wednesday morning trade, the ASX 200 biopharmaceutical stock is climbing higher again, up 0.2% to $14.77 a piece. The rebound comes off the back of a series of good-news announcements out of the company over the past couple of months. In late February, the company confirmed that it had filed a key regulatory approval in Europe. Later in March, Telix posted several announcements about its growth and development plans. Earlier this month, Telix announced that the FDA had accepted its NDA for TLX101-Px (Pixclara®) and also announced a major collaboration with US-based Regeneron Pharmaceuticals. It has also announced a 56% increase in revenue and issued FY26 guidance in the range of US$950 million to US$970 million. Brokers seem to think there is plenty more room for the stock to run too. They tip a 54% upside to $22.63 a piece, at the time of writing.
Westgold Resources Ltd (ASX: WGX)
Westgold shares are tumbling this morning, down 1.23% to $6.02 a piece, after posting a $285 million quarterly cash build ahead of the market open. The miner maintained its FY26 gold production guidance of 345,000 to 385,000 ounces despite slightly lower quarterly grades and volumes. A softening gold price has also contributed to downward pressure on many ASX gold stocks this week. But Westgold said it expects production rates to ramp up in Q4 FY26, with ventilation upgrades at Beta Hunt and Big Bell now complete and no major shutdowns planned. Its Higginsville Expansion Plan is also underway, with plans to increase processing capacity and reduce unit costs from mid FY28. Brokers tip a 55% upside to $9.31 per share over the next 12 months, at the time of writing.
Zip Co Ltd (ASX: ZIP)
Zip shares are in focus this month after rebounding from an annual low in late March. The shares have rocketed 64% higher over the past month, and the gains keep on coming. The ASX 200 stock is up another 1.24% at the time of writing to $2.44 a piece. The BNPL provider posted its Q3 FY26 results ahead of the ASX earlier this month, including a 41.5% year-on-year EBITDA increase. The company also updated FY26 guidance figures ahead of the back of the results. It looks like investor sentiment has finally turned a corner, and many are buying back into the tech company's shares. Brokers tip a 56% upside to $3.76 over the next 12 months.
