Sonic Healthcare Ltd (ASX: SHL) shares have lagged the broader market over the past year due to concerns around growth, cost control, and execution.

However, Bell Potter believes the ASX 200 share still offers meaningful upside from current levels, alongside an attractive dividend yield.

Here is what the broker is saying.

What is the broker saying?

Bell Potter expects the diagnostics giant to deliver solid earnings growth when it reports its first half results this month, driven largely by acquisitions and steady demand across its core divisions. Though, it concedes that its estimates are below what the consensus is expecting. The broker said:

SHL is expected to report its 1H26 result on 19th February. We have not made changes to our forecasts but summarise our key estimates. We expect a c.10.6% YoY increase in revenue and a c.15.6% YoY increase in EBITDA in reported terms.

We are c.3.1% below consensus on revenue and now c.0.2% above consensus on EBITDA. At the FY25 result, we were c.$10m below consensus, but VA consensus has gradually reduced to meet our estimate. Our EBITDA estimate of c.$1.96b is at the low end of guidance range of c.$1.94b to c.$2.02b.

Looking ahead, Bell Potter believes acquisitions will remain the key growth driver in FY 2026, particularly in pathology. It adds:

The primary growth driver of performance should be the acquired growth in the Pathology business of c.11.7% due to the impact of the LADR acquisition which will have a full-year impact in FY26. The Radiology business should perform around industry trend at c.5.5% growth, while the SCS division is expected to generate c.3.5% growth.

Key issues for investors

While Bell Potter remains positive overall, it highlights several areas investors will be watching closely at the upcoming result. The broker explains:

Key issues for investors to consider include 1) progress on integrating the LADR acquisition and realising synergies, 2) evaluating efforts to control costs overall, 3) assessing the performance of the US business which lags the two leading players, and 4) assessing the agenda of the new CEO Dr Jim Newcombe.

Major upside potential

According to the note, the broker has retained its buy rating on the ASX 200 share with a reduced price target of $28.50. Based on its current share price of $21.98, this implies potential upside of 30% for investors over the next 12 months.

In addition, the broker is forecasting a partially franked 5% dividend yield in both FY 2026 and FY 2027.

Commenting on its buy recommendation, the broker said:

While SHL has outperformed the XHJ, it has materially underperformed the broader market, reflecting concerns with growth and cost control. If the new CEO can impress investors with financial performance and strategy, we believe upside remains in SHL.

The post This ASX 200 share could rise 30% and pay a 5% dividend yield appeared first on The Motley Fool Australia.

More reading

• 3 quality ASX dividend shares to buy for passive income in 2026
• Forget term deposits and buy these ASX dividend shares
• These excellent ASX dividend shares offer 4% to 6.7% yields
• 3 high-yield ASX dividend shares that smash term deposits
• My 3 best ASX dividend-focused stocks to buy in February

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Do you have room in your income portfolio for some new holdings in February?

If you do, then it could be worth considering the three ASX dividend shares in this article that brokers rate as buys.

Here’s what they are recommending to clients:

Cedar Woods Properties Limited (ASX: CWP)

The team at Bell Potter thinks that Cedar Woods could be an ASX dividend share to buy this month.

It is one of Australia’s leading property companies, owning a high-quality portfolio that is diversified by geography, price point, and product type. The broker believes that this leaves it well-positioned to be a big winner from Australia’s chronic housing shortage.

Bell Potter expects this to support dividends per share of 35 cents in FY 2026 and then 39 cents in FY 2027. Based on its current share price of $7.61, this equates to 4.6% and 5.1% dividend yields, respectively.

The broker has a buy rating and $10.00 price target on its shares.

Charter Hall Retail REIT (ASX: CQR)

Another ASX dividend share that could be a buy this month is the Charter Hall Retail REIT.

It is a property trust that owns a diversified portfolio of convenience-based retail centres anchored by supermarkets, service stations, and essential services.

These types of assets tend to be highly defensive, as shoppers continue to spend on groceries and everyday necessities regardless of economic conditions. Combined with long lease terms and high-quality tenants, Charter Hall Retail has good visibility over rental income, which supports consistent distributions to unitholders.

Citi is a fan of the company and is expecting some big dividend yields in the near term. The broker is forecasting dividends per share of 25.5 cents in FY 2026 and then 26 cents in FY 2027. Based on its current share price of $3.92, this would mean dividend yields of 6.5% and 6.6%, respectively.

Citi has a buy rating and $4.50 price target on its shares.

Harvey Norman Holdings Ltd (ASX: HVN)

A third ASX dividend share that could be a buy according to brokers is Harvey Norman.

It is a retail giant with a unique franchise model that generates robust cash flows and provides flexibility during challenging retail environments.

In addition to its core electronics and furniture operations, Harvey Norman owns a substantial property portfolio. That adds another layer of income stability and has supported generous dividend payments over time.

Bell Potter remains positive on the retailer. It believes the company is positioned to pay fully franked dividends per share of 30.9 cents in FY 2026 and 35.3 cents in FY 2027. Based on its current share price of $6.48, this represents dividend yields of 4.8% and 5.4%, respectively.

The broker has a buy rating and $8.30 price target on its shares.

The post Brokers name 3 ASX dividend shares for income investors to buy appeared first on The Motley Fool Australia.

More reading

• Charter Hall Retail REIT posts higher earnings and distributions in 1H FY26
• Forget term deposits and buy these ASX dividend shares
• Why these ASX dividend shares could be top picks for income investors in February
• Are these ASX REITs a buy, hold or sell this earnings season?
• 3 ASX dividend shares that still beat bank interest rates

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 positions in and has recommended Charter Hall Retail REIT and Harvey Norman. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you looking for some new investment ideas? If you are, then it could be worth checking out the three ASX 200 shares listed below.

Analysts have recently given their verdict on these shares following results release. Are they buys, holds, or sells? Let’s find out:

CAR Group Limited (ASX: CAR)

This auto listings company’s shares could be in the buy zone according to analysts at Bell Potter. In response to its half-year result, the broker has retained its buy rating with a trimmed price target of $39.80.

It is a fan of the company’s business model and believes it is well-placed to deal with the AI threat. It said:

CAR’s global network of auto and non-auto classifieds platforms has scaled the ability to generate cash flows supporting growth investment and shareholder returns simultaneously. CAR is proactively implementing AI solutions across its platforms and geographies on top of a technical eco-system integrated into Dealer management workflows, network effect and unique data sets. Retain Buy.

Life360 Inc. (ASX: 360)

Bell Potter thinks that this location technology company’s shares are a buy following its quarterly update. The broker has retained its buy rating with a trimmed price target of $41.50.

It thinks that the recent software selloff has unnecessarily dragged Life360 shares materially lower. The broker explains:

Life360 is an app rather than software company so faces little risk of AI displacement given the ecosystem it has developed over >15 years. […] Life360 is now trading on 2026 and 2027 EV/Adjusted EBITDA multiples of c.31x and c.21x which looks value for forecast growth of c.45% in both periods.

REA Group Ltd (ASX: REA)

Morgans was pleased with this property listings company’s half-year results and feels recent share price weakness has created a buying opportunity for investors. The broker has upgraded REA shares to a buy rating with a $230.00 price target.

It highlights the resilience of its business as a reason to buy. It said:

REA’s 1H26 result was broadly in line with expectations (being only ~1% under Visible Alpha consensus across most line items). Whilst the negative share price reaction on result day was arguably due to a variety of factors (e.g. cost outcomes in the first half, volume guidance being lowered for the full year), the result itself highlighted the resilience of the franchise in a tougher volume environment, with strong yield growth (+14%) offsetting a 6% decline in listings.

The post Buy, hold, sell: CAR, REA, and Life360 shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares worth buying after February’s sell-off
• Up 10%: Everything you need to know about the new Car Group dividend
• 5 reasons to buy Life360 shares this week

Motley Fool contributor James Mickleboro has positions in Life360 and REA Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended CAR Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Periods of market volatility often feel uncomfortable. 

Entire sectors can fall out of favour, sentiment can turn quickly, and even high-quality ASX shares can be swept up in the sell-off. 

That has certainly been the case for many software businesses over recent months, as concerns around valuation and the disruptive potential of artificial intelligence have weighed heavily on the sector.

Against that backdrop, some well-regarded names are now trading close to their 52-week lows. Two that stand out are TechnologyOne Ltd (ASX: TNE) and Pro Medicus Ltd (ASX: PME). Both have seen their share prices fall sharply from last year’s highs, despite continuing to report solid underlying business performance.

Technology One

Technology One is a long-established Australian software company that provides enterprise resource planning (ERP) solutions to government, education, and large corporate customers. Its software helps organisations manage core functions such as finance, human resources, and asset management, with a growing focus on cloud-based delivery.

The company has spent more than a decade transitioning customers from on-premise software to its proprietary cloud platform. This shift has driven more predictable, recurring revenue and has improved long-term visibility over cash flows. Technology One has also built a reputation for disciplined execution, consistently delivering revenue growth and strong margins.

Despite these strengths, the Technology One share price is down more than 30% from its peak and remains close to recent 52-week lows. Like many software businesses, it has not been immune to a broader de-rating of the sector. Investors have become more cautious about growth stocks, particularly those trading on higher earnings multiples, even when fundamentals remain intact.

For long-term investors, the key question is whether this pullback reflects a deterioration in the business, a reset in valuation expectations across the market or a great buying opportunity.

Pro Medicus 

Pro Medicus operates in a very different niche, but has faced similar share price pressure. The company develops high-end medical imaging software used by hospitals and healthcare providers around the world. Its flagship Visage platform enables radiologists to view and analyse large imaging files quickly and efficiently, supporting better clinical decision-making.

Over recent years, Pro Medicus has delivered exceptional growth, driven by major contract wins in the United States and ongoing global expansion. The business is capital-light, highly profitable, and benefits from long-term customer contracts that create sticky, recurring revenue streams.

Even so, Pro Medicus shares are down more than 40% from last year’s highs and are hovering near 52-week lows. Part of this reflects the company’s premium valuation following a long period of outperformance. Broader concerns around healthcare spending cycles and the sustainability of high growth rates have also weighed on sentiment.

As with Technology One, the market is questioning how much investors should be willing to pay for quality growth, even when long-term drivers remain in place.

A classic quality-versus-sentiment test

History shows that some of the best long-term opportunities can emerge when high-quality businesses are caught in sector-wide sell-offs. At the same time, not every falling share price represents value. Sometimes lower prices signal that expectations were too optimistic, or that competitive and structural challenges are emerging.

For investors watching Technology One and Pro Medicus, the task is to separate short-term noise from long-term reality. Are these share prices reflecting temporary pessimism toward software stocks, or a more permanent shift in how the market views growth and valuation?

Either way, periods like this can be a useful reminder. When entire sectors get pummelled, it is often wise to revisit proven businesses, reassess the fundamentals, and decide whether today’s prices are offering opportunity — or a warning worth heeding.

The post 2 quality ASX shares near 52-week lows worth watching appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares worth buying after February’s sell-off
• What is happening to these ASX software shares?
• Why are ASX 200 tech shares like WiseTech and NextDC going gangbusters on Monday
• These beaten down ASX growth shares could rise 50% to 75%
• Why I’m planning to act this week and buy ASX shares

Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a big gain. The benchmark index rose 1.85% to 8,870.1 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 to rise again

The Australian share market looks set to rise again on Tuesday following a decent start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 33 points or 0.35% higher. In late trade in the United States, the Dow Jones is up 0.1%, the S&P 500 is up 0.65%, and the Nasdaq is up 1.15%.

Oil prices rise

It could be a good session for ASX 200 energy shares Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 1.4% to US$64.43 a barrel and the Brent crude oil price is up 1.6% to US$69.12 a barrel. Traders were buying oil in response to rising US-Iran tensions.

Buy CAR Group shares

The team at Bell Potter thinks that CAR Group Limited (ASX: CAR) shares are undervalued. In response to its half-year results, the broker has retained its buy rating on the auto listings company’s shares with a trimmed price target of $39.80. It said: “CAR’s global network of auto and non-auto classifieds platforms has scaled the ability to generate cash flows supporting growth investment and shareholder returns simultaneously. CAR is proactively implementing AI solutions across its platforms and geographies on top of a technical eco-system integrated into Dealer management workflows, network effect and unique data sets. Retain Buy.”

Gold price storms higher

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have another good session on Tuesday after the gold price stormed higher overnight. According to CNBC, the gold futures price is up 2.3% to US$5,094.2 an ounce. The precious metal was boosted by a weaker US dollar.

Sims update

Sims Ltd (ASX: SGM) shares will be on watch on Tuesday after the scrap metal company made an announcement after the market close on Monday. Sims revealed that it has entered into an agreement to purchase assets of TCT Trading for US$66.5 million. It advised that this is seen as a key component to consolidating its Houston operations and significantly reducing its operating cost base. The company has also entered into an agreement to sell its nearby Mayo Shell property in Houston.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

More reading

• Sims consolidates Houston operations with Tri Coastal Trading acquisition
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares worth buying after February’s sell-off
• Up 10%: Everything you need to know about the new Car Group dividend
• UBS raises gold price target to US$6,200 per ounce for this quarter

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 recommended CAR Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Putting small amounts of money to work regularly is one of the simplest ways to build a diversified portfolio over time. If I had $1,500 to invest right now, I’d be very comfortable splitting it evenly across three ASX exchange-traded funds (ETFs) that give exposure to different regions and styles.

This isn’t about picking a single winner. It’s about spreading bets across global growth engines and letting time do the heavy lifting.

Here’s where I’d put $500 each.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

The Vanguard FTSE Asia Ex-Japan Shares Index ETF gives exposure to one of the most important long-term growth regions in the world.

This ETF invests across Asia excluding Japan, with meaningful weightings to China, Taiwan, India, South Korea, and Hong Kong. These markets are home to globally significant companies and industries, including semiconductors, financial services, ecommerce, and infrastructure.

What I like about allocating a modest amount here is diversification. Asian economies don’t always move in sync with Australia or the US, and long-term growth rates in parts of the region remain structurally higher. It can be volatile at times, but as a long-term allocation, I think Asia deserves a seat at the table.

Putting $500 into the VAE ETF feels like a sensible way to tap into that growth without taking on single-country risk.

Vanguard FTSE Europe Shares ETF (ASX: VEQ)

The Vanguard FTSE Europe Shares ETF is a region many investors overlook, but I think it’s worth considering.

European equities tend to trade at more conservative valuations than US markets and offer exposure to world-class global businesses across healthcare, consumer goods, industrials, and financials. These are companies that generate revenue globally, not just within Europe.

The VEQ ETF provides broad exposure across developed European markets, which helps smooth out country-specific risks. It’s not the fastest-growing region in the world, but it does offer diversification and a different return profile to US-heavy portfolios.

For me, allocating $500 here would be about balance. It reduces reliance on a single market and adds exposure to high-quality global operators at reasonable valuations.

iShares Global 100 AUD ETF (ASX: IOO)

The iShares Global 100 AUD ETF is the ETF I’d choose for simple, concentrated exposure to the world’s largest and most influential companies.

The IOO ETF tracks the S&P Global 100 Index, which includes 100 multinational blue-chip businesses that dominate their industries. Its top holdings read like a who’s who of global corporate powerhouses, including NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, JPMorgan Chase, Eli Lilly, and Exxon Mobil.

What appeals to me here is clarity. You know exactly what you’re getting. These are companies with scale, pricing power, and global reach. They’re not early-stage growth stories, but they’ve proven their ability to generate cash flow and compound earnings over time.

As a long-term holding, the IOO ETF provides instant access to global leaders across technology, healthcare, energy, and financials, all in a single trade.

Foolish takeaway

If I were investing $1,500 today, I’d be very comfortable spreading $500 each across the Vanguard FTSE Asia Ex-Japan Shares Index ETF, the Vanguard FTSE Europe Shares ETF, and the iShares Global 100 AUD ETF.

Together, they offer exposure to emerging growth in Asia, established global businesses in Europe, and the world’s largest blue-chip companies. It’s not about perfection. It’s about sensible diversification, global reach, and staying invested for the long term.

The post Why I would invest $500 in each of these ASX ETFs appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs to target with exposure outside the US and Australia
• Want to invest in the best stocks in the world? Try these ASX ETFs
• 3 super ASX ETFs to add to your SMSF
• 3 excellent Vanguard ETFs for ASX investors to buy in February
• Microsoft shares slump as investors are split on the AI capex boom

JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, JPMorgan Chase, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom. The Motley Fool Australia has recommended Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) had a strong day on Monday, rising almost 2%. 

The S&P 500 Index (SP: .INX) is off to a good start to the week as well. 

Both of these important benchmark indexes are tracking close to all-time highs. 

With these valuations looking full, it can be a good time for investors to look elsewhere for opportunities. 

One great way to do this is to invest in global ASX ETFs. 

Many Australian portfolios will already include large exposure to Australian and US shares. 

With that in mind, here are 3 proven ASX ETFs which provide exposure to companies not based in either country. 

Betashares Global Shares Ex Us ETF (ASX: EXUS)

This ASX ETF is one of the newest funds to be listed. 

It aims to track the performance of an index (before fees and expenses) that provides exposure to 900+ large and mid-cap companies from 22 developed markets excluding the US and Australia.

With the US historically representing the majority of developed markets, adding exposure outside the US provides both geographic and sector diversification. 

According to Betashares, compared to US focused exposures, EXUS ETF has a higher weighting to sectors such as financials and industrials, and a lower weighting to technology.

At the time of writing, no single holding makes up more than 2.2% of the fund. 

Its largest exposure geographically is to: 

• Japan (22.9%)
• Britain (13.2%)
• Canada (12.8%)

Betashares Capital Ltd – Asia Technology Tigers Etf (ASX: ASIA)

This has been one of the top performing ASX ETFs over the last 12 months. 

It has risen 42% in that span thanks to outperformance from leading technology stocks across Asia. 

It provides exposure to the 50 largest Asian technology companies not in Japan. 

These are largely based in South Korea, Taiwan and China. 

Within the sector, it has a large exposure to high growth industries such as: 

• Semiconductors (32.5%)
• Tech. Hardware, Storage & Peripherals (21.6%)
• Interactive Media & Services (11.8%)

Vanguard Ftse Europe Shares ETF (ASX: VEQ)

Looking elsewhere, this ASX ETF provides exposure to more than 1,200 companies listed in major European markets. 

Geographically, its largest exposure is to: 

• United Kingdom (23.1%)
• Switzerland (14.2%)
• France (14.1%). 

The underlying holdings focus on large and mid-cap companies across financials, industrials, and healthcare.

The European market overall has been a winner in the last 12 months, with this fund rising 16.47% in that span. 

The post 3 ASX ETFs to target with exposure outside the US and Australia appeared first on The Motley Fool Australia.

More reading

• Why I would invest $500 in each of these ASX ETFs
• 3 ASX ETFs to buy after the brutal tech selloff
• 3 exciting ASX ETFs with strong long-term growth potential
• 5 exciting ASX ETFs to buy this month
• 3 amazing ASX ETFs to buy before it’s too late

Motley Fool contributor Aaron Bell has positions in Betashares Capital – Asia Technology Tigers Etf. 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.

Last week, a report from VanEck laid out the case for ASX REITs to resurge in 2026. 

The report said office and retail REITs currently offer compelling value. 

REIT markets have been under pressure since COVID. However conditions are improving as supply pipelines thin, vacancies stabilise and demand normalises. 

With supportive economic conditions, potentially easing long-term yields and valuations still at discounts, the medium-term outlook for REITs is positive, albeit requiring selective positioning.

One such REIT that could be set to grow this year is Dexus Convenience Retail REIT (ASX: DXC).

It is an externally-managed REIT with 91 wholly owned service stations and convenience retail assets. These are largely positioned alongside major roads on the Eastern Australian seaboard. 

Its share price is down roughly 3% over the last 12 months. 

A new report from Bell Potter has indicated it could be undervalued right now. 

Here is what the broker had to say. 

Stability and a strong yield

Bell Potter said the REIT’s 1H26 result was broadly in line with expectations, delivering funds from operation(FFO) per share of 10.5c. 

Full-year FY26 guidance was reaffirmed at 20.9c FFO and 20.9c DPS.

Net tangible assets increased 4.4% over the half, along with solid rental growth. Portfolio fundamentals remained strong at 99.9% occupancy.

The broker also noted that Dexus Convenience Retail has identified two new undisclosed acquisitions for $35m combined spanning one metro and highway site. Settlement is likely to be towards the end of CY26. 

It also said the REIT is differentiated from competitors by the high-quality and long-term tenants that it leases these assets to including Chevron, 7-Eleven, United, Mobil and Ampol.

Buy recommendation in tact 

Based on this guidance from Bell Potter, it retained a buy recommendation on this ASX REIT. 

However the broker did reduce its price target to $3.25 (previously A$3.45). 

The broker still sees upside in tact for this company.

It reinforced that the company delivered a solid result with valuations up 4.4% half-on-half, supported by the commercial service station cycle and expansion into metro/highway assets and fund-through developments, which are improving portfolio quality. 

Rising debt costs make new acquisitions less attractive than six months ago, but the stock still trades at a 27% discount to Net Tangible Assets (NTA), indicating attractive relative value.

It closed trading yesterday at $2.80. 

Based on the price target of $3.25 from Bell Potter, the broker sees an upside of 16.07%. 

The post Broker tips 16% upside for this ASX REIT appeared first on The Motley Fool Australia.

More reading

• Forget term deposits and buy these ASX dividend shares

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. 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.

When share prices fall 20% to 50% in a year, it’s easy to assume something is fundamentally broken. Sometimes that’s true. But other times, the market overshoots, pricing in far more bad news than actually eventuates.

Right now, I think there are a few ASX shares sitting firmly in that second camp. They’ve been hit by a mix of cyclical headwinds, short-term disappointments, and weak sentiment, but their long-term investment cases remain intact.

These are three cheap ASX shares I think are strong buys this month.

Cochlear Ltd (ASX: COH)

Cochlear is not a stock that often looks cheap, which is why its share price decline over the past year stands out.

The weakness has been driven by slower-than-expected growth in its core hearing implant business, cost pressures, and cautious sentiment around margins. None of that is ideal, but it’s also not structural.

Cochlear remains the global leader in implantable hearing solutions, operating in a market with high barriers to entry and long product lifecycles. Its installed base continues to grow, supporting recurring revenue from upgrades, accessories, and services over time.

Demand for hearing solutions is also supported by powerful demographic tailwinds. Ageing populations don’t disappear just because growth is softer for a year or two. With expectations now far lower than they were previously, I think the risk-reward has become much more attractive.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine Estates has been one of the hardest-hit large-cap consumer names on the ASX, with its share price down sharply over the past 12 months.

The reasons are well understood. Softer demand for premium wine, cost-of-living pressures, and challenges across key markets have weighed heavily on earnings and sentiment. On top of that, the company has been working through portfolio changes and operational resets, which has created near-term uncertainty.

What interests me now is how much pessimism is already reflected in the share price. Treasury Wine still owns a portfolio of globally recognised brands, generates solid cash flow through the cycle, and is expected to see dividends recover as conditions normalise.

This looks like a classic case of a quality consumer business being priced for prolonged weakness. If demand stabilises even modestly, the upside with this ASX share could surprise.

James Hardie Industries Plc (ASX: JHX)

James Hardie Industries is another example of a high-quality ASX share caught in a cyclical downturn.

The housing slowdown in the US and other key markets has pressured volumes and margins, which has flowed directly into the share price. As a result, the stock is now trading well below where it sat a year ago.

However, James Hardie’s competitive position has not changed. It remains the market leader in fibre cement products, with strong brand recognition, pricing power, and exposure to long-term renovation and repair demand, not just new builds.

Housing cycles turn. When they do, businesses with scale and strong distribution networks tend to recover faster and more profitably than smaller competitors. That’s why I see current weakness as an opportunity rather than a reason to stay away.

Foolish takeaway

Cheap doesn’t always mean attractive, but when quality businesses fall 20% to 50% in a year, it’s worth paying attention.

Cochlear, Treasury Wine Estates, and James Hardie have all been hit by short-term headwinds and negative sentiment. In my view, the market has become too focused on what’s gone wrong recently and not focused enough on what these businesses can earn over the long run.

For investors willing to look beyond the next quarter or two, I think these cheap ASX shares offer compelling opportunities this month.

The post I think these cheap ASX shares are strong buys this month appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• How low can this ASX 200 share go after losing 53%?
• Earnings preview: How do experts rate these blue-chip ASX stocks reporting this week?
• Why these battered ASX shares deserve a second look
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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Orica Ltd (ASX: ORI) has been one of the many ASX materials stocks charging higher in the last 12 months. 

The company is a leading global manufacturer and supplier of explosives and blasting systems, primarily to the mining industry. 

It is the world’s number one supplier of commercial explosives with operations across more than 100 countries and an approximate market share of around 28%.

Its share price has risen by 50% in the last 12 months. 

This helped it qualify as one of the 10 best ASX 200 large-cap shares of 2025. 

For context, the S&P/ASX 200 Index (ASX: XJO) is up 4.5% in that same period. 

It seems there could be more growth ahead for this ASX materials stock. 

A new report from Bell Potter released yesterday included a price target increase, along with an unchanged buy recommendation. 

Here is what the broker had to say. 

Market dynamics still favourable 

According to yesterday’s report, mining activity across the company’s two largest Blasting Solutions geographies (Australia Pacific & Asia and North America) continue to exhibit positive momentum in FY26TD.

Bell Potter said in Australia, the iron ore majors delivered record production in the Dec’ 25 quarter. 

In addition, the rapid appreciation of spodumene concentrate prices has prompted producers to assess plans to reactivate idled production capacity. 

Looking ahead, the Australian government projects iron ore and gold production CAGR of 3% and 12% over FY25-27, respectively.

Based on estimates, mining-related activity in North America was about 5% higher in Oct – Nov 2025 compared to Oct – Nov 2024.

In Canada, production of copper concentrate, gold and coal grew 13%, 8% and 1% YoY in Oct-Nov’25.

In summary, Bell Potter believes this ASX materials stock is benefiting from strong momentum across global mining and exploration.

This is being driven by rising production, higher commodity prices, and surging exploration funding – supporting confidence in higher activity levels and making the upgraded mid-teens Digital Solutions EBIT growth target achievable.

Target price rises for the ASX materials stock

Based on this guidance, Bell Potter lifted its price target to $28.50 from $26.00, while EPS forecasts remain unchanged.

The broker retained its buy recommendation. 

From yesterday’s closing price of $26.03, this indicates an approximate upside of 9.49%. 

The broker said EBIT growth is expected to continue on the back of strong mining and exploration conditions, solid operations and product mix. 

We expect EBIT growth momentum to be sustained in the short-to-medium term underpinned by cyclical tailwinds in mining and exploration markets. EBIT growth is expected to be supported by further premium product uptake, robust facility performance across AN and sodium cyanide supply networks and commercial discipline.

The post Is this ASX materials stock still a buy after rising 50% in the last year? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. 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.