Top 5 Undervalued ASX Stocks Investors are Watching

These 5 undervalued stocks are showing positive development with new launches, price recovery and strong financial performance across sectors, making them stocks to watch

Catapult Sports Ltd (ASX: CAT)

Catapult Sports Ltd (ASX: CAT) has become one of the closely watched ASX companies because it is one of the world’s leading providers of athlete performance and video analysis software.

The company has reported a 19% YoY increase in revenue reaching US$140.7M for FY26 and ACV increased by 28% to US$133.8M, with management EBITDA of US$24.7M representing management EBITDA margins of 18%. The result also highlights that the company has ACV retention of 96% and ACV per pro team up +10%.

Recently on 23 July 2026, CAT announced a new tool called IMPECT video scouting to help professional teams to evaluate players performance more quickly and accurately by combining videos with advanced performance data.

For FY27 outlook, management expects ACV growth to remain strong, supported by improving cost margins, resulting in higher free cash flow as the business scales.

Cochlear Limited (ASX: COH)

Cochlear Limited (ASX: COH) is one of the undervalued stocks at ASX that investors are watching because the stock price increase by 25% from the recent lows, with a current market capitalisation of $7.37B and a partially freaked dividend yield of 3.82%.

The company is a global leader in implantable hearing solutions for over 40 years, providing a range of implants and sound processor upgrades that helps people achieving better hearing outcome throughout their lifetime.

The company in the first half of FY26 reported revenue growth of 1% to $1,176M. The company maintains a strong balance sheet with net cash of $173M and an interim dividend of $2.15 per share.

The management expects second half cochlear implants sales growth by 2-6% (CC) and net profit guidance for FY26 to be $290M-$330M due to the anticipated impact of the ongoing middle East conflict.

WiseTech Global Limited (ASX: WTC)

WiseTech Global Limited (ASX: WTC) is one of the undervalued stocks at ASX that investors are watching because the stock prices increase by 6% from its 52-week lows, with the current market capitalisation of $10.16B.

The company is a dominant player providing cloud platform for logistics, global trade and supply chain industry globally. The company develops, sells and implements software solutions that improve logistics services.

The company half-yearly revenue is up 76% to $672M and reported EBITDA up 31% reaching to $252M with the EBITDA margins of 38%. The company has reported an underlying NPAT of $114.5M, operating cash flow up 14% to $231.7M and free cash flow up 24% to $153.6M.

For FY26, management has guided that revenue will grow by 79-85%, EBITDA to grow by 44-53% and EBITDA margins to be around 40-41%

Xero Limited (ASX: XRO)

Xero Limited (ASX: XRO) is one of the undervalued stocks at ASX that investors are watching because despite the stock underperforming the company is still able to deliver strong revenue growth, expanding and maintaining the profitability.

XRO operates a global platform for small businesses, offering SaaS services in accounting, payroll and payment on a unified system, also helps the business with automating routine task, providing timely insights etc.

XRO during FY26 reported an operating revenue of $2,753M up 31%v YoY with ARPC of $55.44 up 23% YoY headline. The company has reported an adjusted EBITDA of $757M up 18% YoY headline.

For FY27, management has guided that revenue will be in the range of $3,630-$3,730M, with adjusted EBITDA in the range of $860-$920M.

IPH Limited (ASX: IPH)

IPH Limited (ASX: IPH) is one of the undervalued stocks that investors are closely watching because the stock has gained 13.64% from 2026 YTD with a market capitalisation of $1B and a partially franked dividend yield of 9.63%.

The company operates in international intellectual property services, working with a network of 26 IP jurisdictions, with clients in more than 25 countries.

The company half yearly revenue for FY26 is up 6.5% YoY reaching to $363.9M with underlying EBITDA of $107.1M up 6.6% YoY. IPH also reported underlying NPATA of $62.6M and interim dividend of 19 cents per share up 11.8% YoY.

For FY26, the management priorities are to focus on optimising its network of member firms targeting organic growth supported by cost and operational efficiencies.

Source - Company announcement