The S&P/ASX 200 Index (ASX: XJO) is climbing higher in Thursday lunchtime trade. At the time of writing, the index is up 1.28%, reversing its 1.3% loss on Wednesday.
The index has been supported by a positive night on Wall Street. A drop in oil prices has dragged down the energy index today, but elsewhere, most ASX sectors are gaining ground.
Here are two ASX 200 shares I think can drive the ASX 200 Index higher this year, with potential upside of over 100%. They look super cheap to me right now.
Image source: Getty Images
Cochlear Ltd (ASX: COH)
Cochlear shares are climbing higher on Thursday. At the time of writing, the shares are up 1.02% to $95.74 a piece. It's a relief for investors after the medical device company suffered two brutal sell-offs in February and April this year.
The ASX healthcare company's latest crash in April followed downgraded FY26 guidance. Cochlear cited weaker conditions across developed markets and softer demand.
The guidance downgrade followed the ASX 200 company's softer-than-expected half-year result earlier this year, and a sector-wide rotation away from ASX healthcare shares.
But I think the shares are now oversold, and that there is potential for the company to rebound.
Analysts seem to agree. Market Index data shows that brokers rate the stock as a buy and are tipping a potential 104% upside to $196.95, at the time of writing.
Resolute Mining Ltd (ASX: RSG)
Resolute Mining shares are jumping higher on Thursday. At the time of writing, the shares are up 3.11% to $1.23 a piece. The shares are now down just 1.5% year to date, but are 97% higher than this time last year.
As an ASX 200 gold stock, Resolute's shares have benefited from an uptick in gold over the past year.
And today's uptick is likely for the same reason. Gold is trading above US$4,500 an ounce at the time of writing, after rising more than 1% in the previous session.
According to Trading Economics, the increase is supported by growing optimism around an imminent peace agreement between the US and Iran. A deal could help to ease inflationary pressures and reduce concerns about further interest rate hikes.
The miner also announced that it recently reached several impressive feasibility milestones and posted a significant increase in its gold production figures.
The miner expects production to keep climbing this year, too, to around 250,000 to 275,000 ounces at an all-in sustaining cost of $2,000 to $2,200.
Brokers are very bullish on the shares and have a strong buy rating. They tip a potential 102% upside to $2.46 a piece, at the time of writing.
