Some ASX shares are forecast to deliver significant returns within the next year, so they could be great ones to look at.
Of course, an analyst's projection is not a guarantee of returns. But, if an expert (or experts) believes the business is severely undervalued, then the company could be a market-beater.
Let's look at two ASX shares that may materially outperform the S&P/ASX 200 Index (ASX: XJO) in the year ahead.
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Resmed CDI (ASX: RMD)
Resmed is one of the world leaders when it comes to sleep apnea and CPAP (continuous positive airway pressure) machines.
According to CMC Invest, there have been nine ratings on the business within the last three months, with eight of them being a buy.
A price target is the analyst's way of telling investors where they think the share price will trade in a year from the time of the investment call. The average price target of those nine ratings is $41.27, suggesting a possible rise of 55% over the next 12 months.
The Resmed share price has dropped 26% during 2026 to date, making it look much better value. That decline has led to the business looking much better value, despite ongoing strength of its financials.
In the FY26 third quarter, the ASX share reported revenue growth of 11% to $1.4 billion, with the gross profit margin improving 290 basis points (2.90%) to 62.2% and operating net profit growing 17% to $499.8 million.
IDP Education Ltd (ASX: IEL)
IDP Education describes itself as a global leader in international student placement and a co-owner of the world's most popular "high-stakes" English language test, IELTS. It partners with universities and institutions across Australia, Canada, Ireland, New Zealand, the UK and the US.
According to CMC Invest, there have been five ratings on the business within the last three months, with four of those being a buy and one being a sell. The average price target is $4.12, which implies a possible rise of 61% over the next 12 months.
With how the IDP Education share price is down 55% this year, the business looks very attractive, according to analysts.
Despite the headwinds the global industry is facing, the ASX share recently announced a pleasing update.
It said it expects the FY26 adjusted operating profit (EBIT) to be approximately $122 million, with a strong yield performance and cost reduction mitigating the impact of market conditions.
IDP Education thinks its cost base can be reduced by a net $30 million in FY26, ahead of the $25 million target that was previously announced.
The ASX share also expected an on-market share buyback program of up to $50 million, which reflects its "robust balance sheet and strong cash generation".
According to the forecast on CMC Invest, IDP Education shares are now valued at less than 12x FY26's estimated earnings, with earnings growth forecast to rise 7% in FY27 and 27% in FY28.
