Best 5 ASX-Listed Cheap Shares to Watch in 2026

The following ASX-listed companies may be small caps but their growth opportunities are promising which makes them key stocks for investors to watch out in 2026.

Peregrine Gold Limited (ASX: PGD)

on 11 December 2025 announced that it had entered into an agreement to acquire a highly prospective tenement application adjacent to its Rocklea Gold Project in the Pilbara which expands its exploration footprint.

The company has made strong exploration progress across its Pilbara portfolio as recent work identified high-grade and large- scale Channel Iron Deposit targets at the Coopers and Peninsula prospects within the Newman Gold and Iron Ore Project which strengthens the overall project pipeline.

Expanding gold anomalous footprints at the Tin Can and Epithermal prospects have driven immediate follow up aircore drilling with results pending which could unlock new gold discoveries across the portfolio.

Peregrine’s share price has doubled over the past 12 months and current market capitalisation is $26.68 million while the company strengthened its financial position with a $3.0 million placement and ended the September 2025 quarter with $4.3 million in cash.

New Murchison Gold Limited (ASX: NMG)

on 21 January 2026 announced the completion of its first full quarter of production which involved the sale of 184,746 dry tonnes of crushed ore at an agreed grade of 4.0 g/t Au and an agreed recovery of 95.9% which resulted in 22,766 ounces of gold delivered to Westgold Resources Limited (ASX: WGX).

The company has a market capitalisation of $735.91 million and finished the quarter with a strong cash balance of $92 million while the share price has surged by over 600% over the past 12 months.

High grade drilling results were reported both at depth below the existing pit and across the broader Abbotts Belt which supports the potential for underground development and near mine resource growth.

With production now established, strong exploration momentum underway and recent inclusion in the S&P ASX All Ordinaries Index, the outlook is positive as NMG enters its next growth phase as a Western Australian gold producer.

SportsHero Limited (ASX: SHO)

delivered a record quarter in 2QFY26 as cash receipts reached $539,000 which was the highest level since the company listed in 2017.

This milestone included the receipt of $527,000 following the rollout of the iGV.Com platform in the Philippines with recurring monthly payments expected to continue through to September 2026.

HeroPlay subscriber growth accelerated strongly with average daily signups rose to around 880 per day and peak daily signups reached 1,710 which indicates strong early product traction and user engagement.
Cash at the end of the quarter stood at $500,000 and with a current market capitalisation of $49 million, the stock has already quadrupled over the past 12 months.

First Lithium Limited (ASX: FL1)

has advanced its lithium exploration strategy in Mali with steady progress towards a maiden Mineral Resource Estimate which is expected to be announced in the near-term and this development led to the stock surging 34% on Wednesday.

The Mali Government has confirmed that the renewal process for the Faraba and Gouna exploration licences is underway which removes a key regulatory overhang and allows technical and field work to continue without disruption.

During the September 2025 quarter, the company secured an extended funding facility of $800,000 which provides near-term liquidity to support ongoing corporate requirements and technical activities.

First Lithium has a market capitalisation of $25.54 million and its share price has surged 164% over the past 12 months which reflects high investor confidence ahead of upcoming operational milestones.

Alfabs Australia Limited (ASX: AAL)

has a vertically integrated business model which enables the delivery of end-to-end solutions and maintains cost control, quality and scalability across large projects.

The company is a diversified industrial services and equipment provider supporting Australia’s mining and infrastructure sectors and in FY25 it delivered EBITDA of $27.6 million which represents year-on-year growth of 39%.

The company has a market capitalisation of $60.5 million and Net profit after tax increased to $12.2 million which is up 76% and reflects strong operating leverage as revenue scaled across both the mining and engineering divisions.

The current annual yield is 7% and Alfabs has outlined a $31 million capital investment program for FY26 which is focused on acquiring and refurbishing underground mining equipment to expand its fleet.

(Source: Company Reports)