There are a number of ASX shares that could be excellent buys right now based on their valuations and potential growth.
When the valuation makes sense, businesses that are growing earnings rapidly could be very attractive buys.
When one analyst rates a business as a buy, that's interesting. When numerous experts rate a stock as a buy, it could be a compelling opportunity. Let's look at two ASX shares with significant backing.
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TechnologyOne Ltd (ASX: TNE)
TechnologyOne is one of the ASX leading tech companies. It provides enterprise resource planning (ERP) software to various customers such as government entities, local councils, companies, universities and so on.
According to the Commsec collation of analyst opinions, there are currently 13 buy ratings on the business, as well as one hold rating and two sell ratings.
The company is delivering impressive growth year over year. It has a net revenue retention (NRR) goal of 115%, which means it's aiming to grow its revenue from its existing client base by 15% each year. At that pace, revenue would double in size over five years.
The ASX share is winning more clients in different markets, across both geographies and sectors. It's growing in the UK, which is a large target market and has similar institutions to Australia, so its software offerings could resonate with potential customers.
I like how the company invests significantly in research and development, which helps it provide the best offering for clients. Additionally, AI tools could help the business lower its costs/speed up its development.
According to the projection on Commsec, the TechnologyOne share price is valued at 51x FY27's estimated earnings.
Zip Co Ltd (ASX: ZIP)
Zip is one of the leading buy now, pay later businesses in Australia and New Zealand.
According to the Commsec collation of analyst opinions, there are currently 12 buy ratings on the business, with no other ratings.
The ASX share is experiencing ongoing solid growth in the US, which is now the company's core growth market and it's seeing rising profit generation.
In the FY26 third quarter, Zip reported total income growth of 20.2% to $335.2 million and operating profit (cash EBTDA) growth of 41.5%. Revenue is growing at a strong pace and profit margins are increasing, which is a great sign for the company's future net profit.
The company has seen an increase in net bad debts, so that's something to keep an eye on. But, it's a lot cheaper than it was in October 2025 – it's down more than third since then.
According to the projection on Commsec, the Zip share price is valued at 33x FY26's estimated earnings.
