2 ASX shares highly recommended to buy: Experts

These growing businesses could be significantly undervalued!

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The ASX share market offers plenty of opportunities for investors willing to consider smaller, faster-growing businesses. There are a few stocks with numerous positive analyst ratings.

When one expert thinks an ASX share is attractive, that's interesting. When multiple analysts think a stock is a buy, that could suggest there's a clear, potentially market-beating opportunity.

Red buy button on an Apple keyboard with a finger on it.

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Guzman Y Gomez Ltd (ASX: GYG)

GYG is an Australian-founded Mexican food business with a presence in Japan and Singapore.

The company provides consumers with nutritious, healthy food, prepared more quickly than most of its fast-food rivals.

It has proven effective at extending sales throughout the day, with a good value breakfast range, and at extending its opening hours for late-night customers too (with some restaurants now 24h).

The business is growing its network sales at a rapid pace, with both strong like-for-like (LFL) sales growth at existing locations and an expanding network in both Australia and Asia.

In the third quarter of FY26, GYG reported Australian network sales growth of 19.7% to $320.4 million and Asian network sales growth 15% to $21.5 million. As the company gets larger, GYG expects its profit margins will rise, giving it further earnings growth potential.

According to CMC Invest, there have been 10 ratings on the ASX share within the last three months, with eight of those being a buy, one being a hold and one being a sell. The average price target on GYG shares is $24.24, suggesting a possible rise of 11% within the next 12 months.

Judo Capital Holdings Ltd (ASX: JDO)

Another ASX share that is highly rated by analysts after its plunge is Judo, a bank focused on lending to small and medium enterprises. It also offers term deposits to individuals, SMSFs and businesses to help fund the loans.

The Judo share price fell 40% after giving an update that three of its loans were facing difficulties and therefore it will face a hit to profitability this year.

Even so, it said it's still expecting profit to rise 30% year over year in FY26. The company also gave guidance that it expects profit to rise another 30% in FY27 to a range of between $210 million and $220 million.

According to CMC Invest, within the last three months, there has been 10 ratings on the business, of which eight were buys and two were a hold.

Of those 10 analysts, the average price target is $1.69. That implies those analysts think the Judo share price could rise by 83% within the next 12 months.

Of course, these aren't the only two ASX shares that analysts like right now.

Motley Fool contributor Tristan Harrison has positions in Guzman Y Gomez. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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