I've been looking at ASX shares that I think the market may be underestimating in terms of what the business could achieve over the next few years.
Three companies stand out to me, each with an opportunity to deliver stronger earnings and potentially reward patient investors.
Here's why I think they are worth buying.
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WiseTech Global Ltd (ASX: WTC)
WiseTech has had a difficult period, but I think there is still an excellent business underneath the uncertainty.
Its CargoWise software is deeply embedded in global logistics operations, helping customers manage everything from shipments and customs documentation to complex international supply chains.
I like the company's opportunity to generate more revenue from customers already using its technology. WiseTech is introducing a transaction-based commercial model, which could allow revenue to grow as customers process more activity through CargoWise.
The acquisition of e2open also gives it access to a much larger network of businesses across global supply chains.
Of course, management has plenty to prove. Integrating e2open, delivering the benefits of its new commercial model, and navigating changes brought by artificial intelligence will all require careful execution.
But with ASIC's investigations into the company and key personnel recently concluded without enforcement action, one important uncertainty has been removed.
And I think the valuation leaves room for a recovery. WiseTech shares are trading on a PE ratio of approximately 26 times FY27 earnings, falling to around 16 times FY29 earnings based on consensus forecasts.
If management delivers the expected growth, I think WiseTech's share price could be much higher than where it trades today.
Universal Store Holdings Ltd (ASX: UNI)
Universal Store is another ASX share I think deserves more attention.
The retailer operates several youth-focused fashion brands, including Universal Store, Perfect Stranger, and Thrills.
What I like is its ability to develop brands that connect with younger consumers while continuing to expand its retail footprint.
There are opportunities to open additional stores, grow online sales, and improve profitability as the business becomes larger.
Despite consensus estimates forecasting solid earnings growth through to at least FY29, they are trading on a PE ratio of around 14 times forecast FY27 earnings.
There is also a forecast dividend yield of approximately 5.6% for FY27.
I think that is an attractive combination of income and growth for investors prepared to accept the risks of retailing.
Flight Centre Travel Group Ltd (ASX: FLT)
My final pick is Flight Centre, which I think could reward investors willing to wait for better conditions in the travel industry.
Geopolitical tensions, higher fuel prices, and more expensive airfares have created a difficult environment.
But Flight Centre has been using this period to strengthen its business. Management has materially reduced costs, while acquisitions made around the bottom of the travel cycle have expanded its offering in specialist markets.
I especially like its substantial corporate travel operations, where it has established relationships with businesses around the world.
As travel conditions improve, I think Flight Centre could benefit from stronger demand flowing through a leaner and more diversified business.
And investors are paying a relatively modest price for that potential. At current levels, Flight Centre trades on less than nine times forecast FY28 earnings, with an expected dividend yield of around 5% for that year.
The recovery could take time, but I think the potential reward makes the shares worth buying.
Foolish takeaway
I think all three ASX shares have a reasonable chance of being worth considerably more in a few years.
There is execution risk involved, particularly with WiseTech and Flight Centre, but I believe their current valuations leave room for attractive returns.
I'd be happy to buy at today's prices and give these businesses time to deliver.
