The share market has traditionally generated average annual returns of around 9% to 10% over the long term.
But I think some ASX shares have the potential to do even better from here.
These three would be on my buy list.
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Breville Group Ltd (ASX: BRG)
Breville is one company I think the market may be underestimating.
The business has spent years building premium appliance brands that can be sold into households around the world. Coffee machines remain very important, but the opportunity extends across a much wider range of kitchen products.
What I like is the repeatability of that model. Breville can enter new markets, expand distribution, launch new products, and encourage existing customers who already know the brand to buy something else.
That gives the ASX share several ways to grow without needing one breakthrough product to carry the business.
So, with Breville shares now trading around $30.43, down almost 15% from their 52-week high, I think a combination of earnings growth and improving investor sentiment could comfortably support a return of more than 10%.
Hub24 Ltd (ASX: HUB)
Hub24 has also had a substantial fall from its highs, but I remain positive about the business.
The company operates investment platforms used by financial advisers to manage client wealth.
I like the position Hub24 has built because more advisers are choosing modern platforms that can make portfolio administration easier while giving them access to a wider range of investment options and technology.
Once an adviser begins moving client assets onto a platform, those funds can remain there for years. New clients and additional contributions can then increase the amount administered without Hub24 having to start from scratch each time.
The company has continued gaining market share and attracting strong net inflows, while its growing scale can support higher profits as more assets move onto the platform.
At around $70, Hub24 is now trading more than 40% below its 52-week high. I think this has created an attractive entry point for long-term investors.
Cochlear Ltd (ASX: COH)
Cochlear shares have fallen heavily from their previous highs as weaker growth and a reduced earnings outlook have tested investor confidence.
There are genuine reasons for caution. But I do not think the long-term need for Cochlear's products has changed.
Severe hearing loss remains significantly undertreated around the world, leaving a large population of people who could potentially benefit from cochlear implants.
Cochlear is also continuing to improve its technology. The newer Nucleus Nexa platform gives the company an opportunity to strengthen its offering, while future innovations could make implants more capable and easier for patients to live with.
The business does not need to return anywhere near its previous share price for investors buying today to earn 10%.
If sales growth improves and confidence in the earnings outlook begins to rebuild, I think there is plenty of room for the shares to move higher.
Foolish takeaway
I think all three ASX shares have more going for them than their recent share price performances suggest.
Breville still has international room to expand, Hub24 continues to benefit from more wealth moving onto its platform, and Cochlear is addressing a large healthcare need that is not going away.
None is guaranteed to deliver a double-digit return, but I would be comfortable backing each from current levels.
