S&P/ASX 200 Index (ASX: XJO) shares are rising strongly on hopes that the US and Iran will shortly announce a deal.
The ASX 200 is up 1.5% to 8,721.7 points at the time of writing.
Reported expectations are that the ceasefire will be extended by 60 days and the Strait of Hormuz may be reopened.
Despite today's recovery, ASX 200 shares remain in the red for 2026.
However, the experts have flagged five ASX shares that they believe will outperform over the next 12 months.
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Champion Iron Ltd (ASX: CIA)
The Champion Iron share price is $4.51, down 5.7% today.
This ASX mining share is down 27% in the calendar year to date (YTD).
RBC Capital has a buy rating on Champion Iron shares with an $8.11 target.
This indicates a potential 80% upside ahead.
Kogan.com Ltd (ASX: KGN)
The Kogan share price is $4.17, up 1.5% today.
This ASX consumer discretionary share has increased 12.4% YTD.
Canaccord Genuity has a buy rating with a $7.50 target.
This implies potential capital gains of 80% ahead.
Kingsgate Consolidated Ltd (ASX: KCN)
The Kingsgate share price is $6.10, up 4.1% today.
This ASX gold mining share is up 5.7% YTD.
Canaccord Genuity has a buy rating with a $10.30 target.
This implies a potential near-70% upside ahead.
Guzman Y Gomez Ltd (ASX: GYG)
The Guzman y Gomez share price is $19.50, up 0.6% today.
This ASX 200 consumer discretionary share has fallen 9.6% in 2026.
After Guzman upgraded its earnings guidance and announced its US exit, Morgans renewed its buy rating.
The broker also raised its 12-month price target from $26.70 to $29.40.
This suggests capital growth of 51% over the next 12 months.
The broker said:
The exit removes a loss sooner than consensus anticipated and simplifies the story while the Australian operations are performing well and in line with expectations.
Stripping out the US losses results in material upgrades to our EBITDA and NPAT forecasts.
We maintain our BUY rating and upgrade our price target to A$29.40.
Australian Agricultural Company Ltd (ASX: AAC)
The Australian Agricultural Company share price is $1.31, up 0.5% today.
This ASX agriculture share is down 9.8% YTD.
Bell Potter has a buy rating with a $1.85 price target.
This implies a potential 41% capital gain over the next 12 months.
The broker said:
AAC delivered a record operating performance that was understated, due to the inclusion of $9m in flood related costs.
While costs are currently experiencing inflationary pressure (grain and oil), continued strong pricing in core offshore markets, uplifts in grainfed cattle capacity (FY27-28e sales program) and a larger herd are reason for optimism in future periods.
