The S&P/ASX 200 Index (ASX: XJO) has fallen again in early morning trade on Tuesday as interest rate hike concerns, weaker commodity prices, and ongoing tension in the Middle East continue to put pressure on Australian stocks across several sectors.
But during periods of volatility, it's important to look for investment opportunities that have strong outlooks.
Here are four ASX 200 shares that brokers rate as strong buys, with potential upside of up to 51%.
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Life360 Inc (ASX: 360)
The ASX 200 tech stock is trending higher so far in June, after falling just over 4% in May off the back of the latest tech-sector-wide sell-off. At the time of writing on Tuesday morning, Life360 shares are up around 10% and are changing hands for $22.35 a piece, and I think they can keep on climbing. The company reported a 38% increase in total revenue in its latest quarterly results, released in mid-May. This was primarily driven by a 32% increase in subscription revenue and 36% increase in core subscription revenue. Life360 also upgraded FY26 guidance for its revenue and adjusted EBITDA. Market Index data shows brokers rate the shares as a strong buy. They tip a 51% upside to $33.73, at the time of writing.
Alkane Resources Ltd (ASX: ALK)
The gold exploration and production company's shares have fallen around 4% in Tuesday morning trade, to $1.47 a piece at the time of writing. The shares have rallied strongly over the past 12 months, however, and are currently trading around 88% higher than in early June last year. The miner's diversity (it offers multimine gold and antimony exposure across three jurisdictions), strong balance sheet, and growth-focused operating platform are expected to drive the share price even higher. Brokers are bullish on the company's outlook and rate the ASX 200 shares as a strong buy. They tip a 46% upside to $2.17 over the next 12 months.
Sigma Healthcare Ltd (ASX: SIG)
The ASX 200 healthcare shares are down around 2% in Tuesday morning trade to $2.86. It's been a volatile start to the year for the company, with lower investor sentiment causing the shares to swing anywhere between a low of $2.60 and a high of $3.16. The outlook for the business looks good, though. The Chemist Warehouse owner posted a strong market update early last month, revealing a good operational performance and market momentum for the financial year through to 30 April 2026. The company also revealed plans to expand into the UK market. Brokers rate the shares as a strong buy and tip a 12% upside to $3.21 over the next 12 months.
Flight Centre Travel Group Ltd (ASX: FLT)
Flight Centre shares are also in the red this morning, down around 2% at the time of writing to $10.70 each. The dip means that the share price has now collapsed by around 35% from an annual high in February this year. But the company reported a strong third-quarter update in early May, despite ongoing travel disruptions and fuel supply challenges. Flight Centre also confirmed that its costs are now well below pre-pandemic levels, productivity is up across the business, and the company is on track to reach its full-year UPBT target of $315 million to $350 million. Brokers rate the ASX 200 shares as a strong buy and tip the stock to climb 47% to $15.61, at the time of writing.
