2 ASX Stocks We Highly Recommend Right Now — Here’s Why

Top two ASX stocks to watch out for, supported by strong result performance, upside momentum and a stable outlook.

Qantas Airways Limited (ASX: QAN)

One of the highly recommended ASX stocks with a market capitalisation of $14.25B and a current annual fully franked dividend yield of 4.20%.

QAN had announced on 27 August 2026 its FY26 results for the period ended on June 2026. QAN reported a revenue of $25.5B. RASK grew by 4.6% YoY to 11.56c/ASK, and TRASK was up 3.6% YoY to 16.15c/ASK. Segment wise, Qantas contributes $17.9B, Jetstar contributes $6B, and Qantas loyalty revenue is $2.9B.

QAN has delivered strong operational KPIs, but due to rising crude oil prices and middle east conflict, the company's earnings dropped. QAN reported an operating margin of 9.2%, underlying profit of $2B and underlying EPS of 95.7 cents per share.

Qantas Airways reported a net operating cash flow of $3.9B and a net capital expenditure of $4B. This makes the cash balance reach $3.63B and total liquidity $13.3B. QAN reported a net debt of $6.2B and $700M as a return to shareholders, with a fully franked base dividend of 19.8 cents per share, making the total dividend for FY26 reach 39.6 cents per share.

QAN expects that its overall TRASK will grow by 8-10% for 1H27. Qantas loyalty is expected to continue the same momentum, with underlying EBIT expected to grow by 5-7% in FY27. The segment remains on target to meet its underlying EBIT target of $800 million to $1.0 billion in 2030.

QAN has a strong relative valuation, with most of the valuation ratios in line with or below the industry median, with a trailing 12 months EV/EBITDA of 4.57x compared to the industry median of 5.57x, making it significantly undervalued compared to its peers. This provides an ideal opportunity to invest for massive future price appreciation.

Generation Development Group Limited (ASX: GDG)

One of the highly recommended ASX stocks with a market capitalisation of $1.27B.

GDG had announced, on 27 August 2026, its FY26 results for the period ended on June 2026. The group FUM increased by 37% YoY to $46.5B, group net inflow grew by 19% YoY to $9.7B, and total revenue increased by 23% YoY to $178.7M. The group's underlying EBITDA grew by $59.2M, and underlying NPAT is up 21% YoY to $40.7M.

The statutory NPAT stood at $31.9M, making an underlying EPS of 10.2 cents, and announced a fully franked dividend of 2 cents per share. GDG has maintained a solid balance sheet with disciplined capital allocation and a cash balance of $115B.

In the Generation life segment, investment bond FUM increased by 35% YoY to $5.95B, and revenue increased by 34% YoY to $73.9M. The segment reported underlying EBITDA of $23.3M, a massive increase of 57% YoY.

In the Evidentia segment, managed accounts' FUM increased by 37% YoY to $40.5B, with revenue up 26% YoY to $58.8M. The Evidentia segment reported an increase of 22% YoY to $25.1M.

In the Lonsec segment, product research increased by 9% YoY to 2001, with revenue reaching $45.8M (+7% YoY). The segment reported underlying EBITDA of $22.8M, an increase of 15% YoY.

GDG is focusing on building trust and brand value in Lonsec to expand services and growth opportunities. Increase the governance offering to support adviser oversight and compliance. GDG also focuses on cross sell opportunities within the existing client base and generates deeper insights, accelerates product innovation and enhances efficiency.

Conclusion

These tops are the recommended stock with huge upside potential supported by recent results and long term stable outlook.

(Source: Company Announcements)