ASX Undervalued Stocks for 2026

Some of the best investment outcomes come from spotting undervalued opportunities early. When solid companies are overlooked despite improving financials or major developments ahead, they can sometimes even turn into multi-baggers once the market catches on. With the outlook improving and interest rates expected to fall in 2026, the following ASX stocks stand out as undervalued candidates that could be set for a rally in 2026.

James Hardie Industries plc (ASX: JHX)

in Q1 of FY26 announced that revenue increased to $2.19 billion which is a 12% rise from last year mainly because of the AZEK acquisition but profitability declined which the company plans to tackle in the upcoming quarters.

The Siding and Trim division performed well and posted a 10% increase in quarterly revenue which was supported by stronger pricing and early operational benefits from combining product lines across the expanded group.

The company has increased its full-year outlook and now expects total adjusted EBITDA of $1.20–$1.25 billion.

Even though earnings declined for the quarter due to higher acquisition costs, the business now operates with greater scale, stronger product depth and improving efficiencies which positions it favourably if construction markets stabilise with rate cuts.

Woodside Energy Group Limited (ASX: WDS)

had an impressive September quarter as total production reached 50.8 million barrels of oil equivalent which is a small improvement from the previous quarter.

Sangomar continued to perform well with production averaging 99 thousand barrels per day at 98.2% reliability which generated arou$477 million in revenue for the quarter.

The Scarborough Energy Project has reached 91% completion while the Beaumont Ammonia Project moved to 97% completion and remains on schedule for first production in late 2025 which will support the expansion into low-carbon energy markets.

Woodside has maintained its 192–197 MMboe full-year production guidance and expects ongoing project execution, long-term LNG contracts and pricing exposure linked to global markets to help support earnings growth which can result in potential rally in 2026.

Resimac Group Limited (ASX: RMC)

had a decent FY25 as loan settlements grew 14% to $4.9 billion and assets under management reached $13.4 billion.
The acquisition of the $1.5 billion Westpac Auto loan portfolio added around 100,000 new customers and contributed $4.5 million to operating profit.

The normalised operating profit increased to $78.6 million which is a 13% improvement from last year and the company paid total dividends of 19 cents per share in FY25 which were fully franked.

Resimac expects margins to improve with the help of rate cuts in 2026 and that could help the share price recover.

Ramelius Resources Limited (ASX: RMS)

had a phenomenal September quarter as gold production reached 55,013 ounces at an AISC of $1,836 per ounce which was mainly supported by output from the Mt Magnet operation.

Cash generation was solid as operating cash flow came in at $159.1 million and underlying free cash flow was $129 million which shows strong margins and disciplined cost control while the balance sheet strengthened further with $827.7 million in cash and gold.

The company released a significant resource update as total mineral resources increased to 12Moz and ore reserves doubled to 2.4Moz.

With rising reserves and a solid balance sheet, Ramelius is a good option for value focused who are investors seeking a profitable gold producer with long-term growth potential.

(Source: Company Reports)