2 ASX Stocks with Significant Upside Potential in the Next 12 Months

The following two ASX stocks have significant upside potential over the next 12 months supported by attractive valuations and catalysts that could trigger a rally.

WiseTech Global Limited (ASX: WTC)

WiseTech Global Limited (ASX: WTC) reported a strong result in the first half of FY26 as total revenue rose 76% year-over-year to US$672 million while CargoWise revenue increased 12% to US$372.4 million.

The company also generated US$153.6 million in free cash flow which was up 24% from the previous corresponding period while underlying NPAT increased 2% to US$114.5 million which is a reflection of its lucrative business model.

Management also believes artificial intelligence is making WiseTech's competitive moat stronger rather than weaker because it improves automation and speeds up product development along with creating major internal cost efficiencies.

WiseTech over multiple decades has built a large logistics ecosystem that serves customers across 193 countries and connects more than 500000 enterprises. It has spent more than US$1 billion of investment in research and development over the past five years which has created a platform that would be extremely difficult for competitors to replicate.

WiseTech at the time of writing has a market capitalisation of $11.73 billion but the stock is still down almost 70% over the past 12 months despite its strong operating performance which means market is underestimating the company's long-term earnings potential.

If the market starts to recognise that AI is improving WiseTech's competitive advantage instead of disrupting it then investors could make a lucrative return over the next 12 months because its strong competitive position and business fundamentals remain intact.

Coronado Global Resources Inc. (ASX: CRN)

Coronado Global Resources Inc. (ASX: CRN) is a leading international producer of high-quality metallurgical coal which is an essential raw material used in steel production.

The company in the first quarter of 2026 generated US$467.2 million in revenue and metallurgical coal contributed more than US$408 million which highlights the strength of its core business despite weaker coal prices and difficult market conditions.

The investment case has become more attractive after Coronado decided to sell its 100% interest in the Logan Mining Complex to Phoenix Coal Holdings. This transaction is expected to improve free cash flow because it reduces ongoing care and maintenance costs and allows management to focus capital on its core metallurgical coal operations.

This portfolio optimisation shows a disciplined approach to capital allocation and it also reflects management's focus on simplifying the business while concentrating on assets that can produce stronger long-term shareholder returns.

The company has faced short-term headwinds which has hurt profitability because of weak metallurgical coal prices and weather-related disruptions but management believes it has enough liquidity and cash resources to fund operations.

Coronado at the time of writing has a market capitalisation of approximately US$272.4 million and the stock has fallen almost 50% year-to-date which is why an opportunity exists.

If operating conditions improve further and investors recognise the benefits of the Logan divestment together with a recovery in metallurgical coal markets then Coronado Global Resources could be well positioned for a significant upside rally over the next 12 months.

(Source: Company Announcements)