Best Cheap Shares to Buy ASX: 3 Stocks to Watch

Looking for the best cheap shares to buy on the ASX? Universal Store, Emerald Resources and Lovisa have reported business growth, expansion plans and financial developments worth researching. Their latest results offer insights into their performance, cash positions and potential growth opportunities.

3 ASX Shares to Research for Growth Potential

1. Universal Store Holdings Limited (ASX: UNI)

Universal Store Holdings Limited (ASX: UNI) reported sales growth of 12.9% to $376.1 million in its FY26 results announced on 20 August 2026. Underlying net profit increased 16.3% to $40.5 million, driven mainly by demand for its Universal Store and Perfect Stranger brands.

Universal Store sales increased 11.5%, while Perfect Stranger recorded stronger growth of 40.8%. However, CTC sales declined amid ongoing challenges in wholesale trading. The group had 123 physical stores and net cash of $23.3 million at the end of June 2026.

Gross profit margin also improved, reflecting better management of product costs and pricing.

UNI announced a final dividend of 17 cents per share, taking its full-year dividend to 43 cents per share. For FY27, the company plans to open 16–20 new stores while continuing to invest in its brands, staff and technology.

Its sales growth, net cash position and store expansion plans make Universal Store worth researching when comparing cheap ASX shares with potential for business growth.

2. Emerald Resources NL (ASX: EMR)

Emerald Resources NL (ASX: EMR) released its September 2026 quarterly production report on 7 October 2026, providing an update on operations at its Okvau Gold Mine.

During the quarter, the mine produced 20,280 ounces of gold and poured 23,003 ounces. Emerald sold 23,832 ounces at an average price of US$4,255 per ounce, with all-in sustaining costs expected to be around US$1,200 per ounce.

As of 30 September 2026, Emerald's cash position stood at A$540.9 million, comprising cash, bullion and listed investments. The position increased by approximately A$60 million during the quarter, after spending around A$16 million on the Memot and Dingo Range gold projects.

The company maintained its FY27 production guidance of 100,000–115,000 ounces.

Emerald plans to expand Okvau and develop its Memot project in Cambodia and Dingo Range in Australia. These projects aim to support its longer-term goal of producing more than 300,000 ounces of gold annually. A US$200 million corporate acquisition facility, expandable to US$400 million, is also intended to support its longer-term growth plans.

Its production outlook, cash position and development pipeline make Emerald Resources worth researching among ASX gold shares, although gold prices, project execution and development costs remain important factors.

3. Lovisa Holdings Limited (ASX: LOV)

Lovisa Holdings Limited (ASX: LOV) reported revenue growth of 17.6% to $938.8 million in its FY26 results announced on 26 August 2026. Net profit increased 10.7% to $95.6 million, while gross margin improved to 82.6%.

The company also reported sales growth across Europe and the Americas.

During FY26, Lovisa opened 160 new stores, taking its global store count to 1,136 across more than 50 countries. Europe added 76 stores, while the Americas added 44.

Lovisa generated $294.5 million in operating cash flow, up 21% from the previous year. This helped fund new stores and improvements to existing locations.

The company announced a final dividend of 33 cents per share, taking its full-year dividend to 86 cents per share.

Trading also started positively in FY27, with total sales increasing 16.4% and comparable store sales rising 3.0% during the first eight weeks.

Lovisa's international expansion, revenue growth and cash generation make it a company to research when comparing ASX shares for long-term growth potential.

Source: Company reports.

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