2 ASX shares tipped by brokers to return 25% and 42%

There is plenty of potential for growth ahead.

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The All Ordinaries Index (ASX: XAO) has slid lower over the past month as ASX shares are hit by falling investor confidence, concerns about inflation, and interest rate hike fears.

At the time of writing, the All Ords Index is down around 3%.

But at times when confidence is sliding, it's important to pinpoint shares which could outperform going forward. 

Here are two ASX shares that brokers are tipping to outperform the index over the next 12 months. And they're forecast to grow by up to 42%.

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Image source: Getty Images

Superloop Ltd (ASX: SLC)

Superloop is an Australian-based fixed-line internet service provider. It provides broadband services to consumers and businesses across the Asia Pacific region, and wholesale solutions to other downstream internet services entities. 

Its services include Wi-Fi management, mobile services, and National Broadband Network products. The company owns an extensive fiber network and is also a part-owner of the Indigo subsea cable. 

The telco has rapidly expanded in recent years with several large acquisitions. These include Lightning Broadband (an internet service provider) in May 2026, Uecomm (a fiber infrastructure) in 2024, and Exetel (an internet retailer) in 2021.

The company also posted an impressive FY26 earnings result last month. It reported a 21.6% increase in reported revenue, a 33.1% increase in underlying EBITDA, and NPAT of $17.5 million.

At the time of writing, Superloop shares are up around 0.5% for the day to $2.75. For the year-to-date the shares have increased around 8%, but the stock is about 12% lower than 12 months ago. 

Going forward, analysts are very bullish about Superloop's potential for growth in FY27. Market Index data shows all brokers have a strong buy rating on the ASX telco shares. And the $3.90 average target price implies an upside of around 42%, at the time of writing.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store is an Australian retailer specialising in trend-led and casual men's and women's fashion, shoes, accessories, lifestyle, and gifting. 

The company owns a portfolio of popular premium fashion brands like Champion, Perfect Stranger, Tommy Jeans, Kiss Chacey, Thrills, Barney Cools, and others.

The ASX consumer discretionary shares crashed to a two year low in May after a deterioration in trading conditions saw investors quickly sell up their shares. 

The update followed a broad decline in discretionary shares, as geopolitical uncertainty and inflation concerns prompted an investor rotation towards more defensive sectors.

At the time of writing, Universal Store shares are down around 2% and changing hands at $7.62 each. For the year-to-date, the shares are down around 6% and 13% lower than 12 months ago.

But the experts appear to be confident that we'll see a turnaround in the coming months. Market Index data shows all brokers have a strong buy rating on the shares, and the $9.67 average target price implies a potential 25% upside at the time of writing.

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. 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 recommended Universal Store. 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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