Top 5 Undervalued ASX growth shares

The following are the top 5 undervalued ASX growth stocks that have regained momentum on Thursday and have massive potential upside ahead.

Undervalued ASX growth stocks

Lovisa Holdings Limited (ASX: LOV)

WiseTech Global Limited (ASX: WTC) 

Temple & Webster Group Limited (ASX: TPW) 

Life360, Inc. (ASX: 360) 

Zip Co Limited (ASX: ZIP) 

Lovisa Holdings Limited (ASX: LOV)

has a market capitalisation of $2.55 billion and is a solid undervalued ASX growth stock as recent updates show faster global expansion with 85 new stores added in 1H26 which takes the total to 1,095 stores across more than 50 markets.

The company in HY26 reported strong financial results as total sales rose 23.3% year-on-year while underlying revenue grew 22.7% which came from expansion of the store network and comparable sales growth of 2.2%.

Profitability stands out as underlying EBIT increased 20.4% year-on-year to $109.1 million and underlying NPAT rose 21.5% to $69.6 million helped by operating leverage and tight cost control.
Margins also improved as gross margin reached 82.9% which is up 50 basis points and sales momentum was solid at 21.5% in the first seven weeks of the second half.

WiseTech Global Limited (ASX: WTC) 

has a current market capitalisation of $14.42 billion and is among the most undervalued ASX growth stocks as it trades nearly 49% below its highs even after a recent 7.35% surge on 16 April at the time of writing.

The company in 1H26 reported strong revenue growth which saw total revenue rise 76% year-on-year to US$672.0 million because of the e2open acquisition and continued CargoWise expansion while organic growth remained at 7%.

Profitability trends were mixed as underlying NPAT increased 2% to US$114.5 million but statutory NPAT fell 36% which was due to acquisition-related costs and higher financing expenses.

Cash generation remained strong which drove free cash flow up 24% to US$153.6 million because of its scalable SaaS model while Management has reaffirmed FY26 guidance with expected revenue of $1.39–$1.44 billion.

Temple & Webster Group Limited (ASX: TPW) 

has a current market capitalisation of $834.71 million and has become one of the top undervalued ASX growth stocks, especially after a 58.5% decline over the past 12 months while it recently regained momentum with a 6.44% rise on 16 April at the time of writing.

The company in H1 FY26 reported strong revenue growth of 20% year-on-year which took total revenue to $376 million because of higher active customers, more repeat orders and an increase in average order values.

EBITDA stood at $13.5 million while the balance sheet remains strong with more than $160 million in cash and no debt which allows flexibility for growth.

Management is confident about the outlook as it maintains FY26 EBITDA margin guidance of 3–5% while it aims to reach over $1 billion in revenue in the medium-term because of strong market tailwinds, wider product categories and opportunities in international markets.

Life360, Inc. (ASX: 360) 

has a market capitalisation of $5.01 billion which places it among the best undervalued ASX growth stocks especially as the stock declined around 38% year-to-date but recently showed renewed momentum with a 9.87% surge on 16 April at the time of writing.

The company in FY25 reported strong financial performance which saw revenue rise 32% year-on-year to US$489.5 million while adjusted EBITDA reached US$93.2 million with a 19% margin which reflects improving profitability.

Subscription revenue remained the main driver which grew over 30% because of higher conversions and better retention while new revenue streams such as advertising and partnerships have started to contribute meaningfully to overall growth.

Recent developments such as integration with Uber and expansion into pet tracking and advertising platforms strengthen the ecosystem which creates multiple long-term monetisation opportunities.

Zip Co Limited (ASX: ZIP) 

has a current market capitalisation of $2.5 billion and is a solid undervalued ASX growth stock because it has declined around 39.5% year-to-date while it recently regained momentum with an 8.15% surge on 16 April at the time of writing.

The company in 1H FY26 delivered a strong turnaround where total transaction volume rose 34.1% year-on-year to $8.4 billion and total income increased 29.2% to $664 million.

A sharp improvement in profitability was seen as cash EBTDA rose 85.6% to $124.3 million while operating margin expanded to 18.7% which indicates strong operating leverage and disciplined cost management.

The company is well positioned for future growth because US expansion is strong and AI integration is increasing while margins are improving which together support a scalable and capital-light business model that can deliver sustained long-term value.

(Source: Company Reports)