These 3 ASX shares are on my watchlist for 2027

As the end of the year looms, it's an appropriate time to consider which stocks might be jostling for a place in my ideal portfolio for the next year.

I've cast my eye over various sectors and come up with three ideas in resources, technology, and biotechnology that I think are worth keeping an eye on.

The AI trade is far from over

The first of these three companies I think could have a strong year in 2027 is Megaport Ltd (ASX: MP1) which I already own.

The company's share price has been all over the place over the past 12 months, ranging from $6.18 right up to $23.20, and has now settled back to $16.47.

That retracement is what I find so interesting.

Megaport shares were trading north of $20 after its announcement of a strong trading update on 29 September, but have slid back since.

Considering the company has not released any news since, I put the share price slide down to the general sell off in data centre companies following the collapse of the Firmus float, and Nextdc Ltd's (ASX: NXT) energy woes at its Melbourne site.

Megaport's distributed AI inference model seems to be a strong suit in my opinion, and the forecast increased EBITDA margin of 42%-44%, up from 38%-40% in the recent update was encouraging for future earnings.

Bell Potter, in a research note dated 1 October following the new contract announcement has a $27 price target on Megaport, which offers plenty of potential upside.

Gold in focus

Swinging over to the mining sector and I'm interested to see how Ramelius Resources Ltd (ASX: RMS) fares next year.

The company's shares have traded sideways over the past 12 months, but Ramelius has big plans to almost triple gold production to 600,000 ounces per year by FY30.

Interestingly The Australian is reporting that Ramelius could be looking to buy Northern Star Ltd's (ASX: NST) Carosue Dam gold mine for up to $800 million, which could add another 240,000 ounces per year immediately.

The theory is that the Carosue mine fits well with Ramelius's other assets in the region east of Kalgoorlie.

UBS has a $5.80 price target on Ramelius compared with $3.35 currently.

Is this one a sleeper hit?

The final company I'll be keeping an eye on is sleep apnoea technology company SomnoMed Ltd (ASX: SOM).

The company's shares are 60% down over a 12-month period and the full year results released on 28 August were nothing to crow about, with revenue up just 3%.

SomnoMed said at the time it had restructured with a growth focus, and is targeting revenue growth in the high single digits.

One of the reasons this company is of particular interest to me is that there is a theory that the increased use of GLP-1 weight loss drugs encourages more people to see the doctor, which then leads them to be prescribed sleep aids such as sleep apnoea devices.

I find that argument compelling.

Broker Morgans has a speculative buy recommendation on SomnoMed with a 76 cent price target compared with 30 cents currently.

The post These 3 ASX shares are on my watchlist for 2027 appeared first on The Motley Fool Australia.

Motley Fool contributor Cameron England has positions in Megaport and Nextdc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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