When I think about building long-term wealth, I believe it comes down to owning the right businesses and then simply holding them.

Not trading in and out. Not trying to time the market. Just identifying high-quality Australian stocks with competitive advantages and letting them compound over time.

If I were putting fresh money to work today with a 10-year mindset, these are three ASX 200 names I would be very comfortable buying and holding for the long haul.

Goodman Group (ASX: GMG)

I think Goodman Group is one of the best ways to gain exposure to some of the most powerful structural trends in the global economy.

At its core, Goodman is a property and infrastructure business. But I believe it is much more than a traditional REIT. It is increasingly a developer and owner of critical infrastructure for the digital economy.

What really stands out to me is its growing exposure to data centres. These assets are becoming essential as cloud computing, artificial intelligence (AI), and data usage continue to surge globally. Goodman is already committing significant capital to this space, with data centres making up a large portion of its development pipeline and a global “power bank” that gives it a strategic advantage in securing future projects.

I also like that it is operating in supply-constrained, high-quality urban locations. That tends to support pricing power and long-term asset values.

Importantly, its balance sheet is very strong, which I think gives management the flexibility to keep investing through cycles.

For me, this is not just a property play. I see it as a long-term infrastructure compounder tied to the growth of e-commerce, logistics, and digital infrastructure.

Netwealth Group Ltd (ASX: NWL)

Netwealth is an Australian stock that I believe is one of the clearest beneficiaries of the long-term shift toward platform-based investing and adviser-led wealth management.

What I really like is how consistently the financial services technology company has been taking market share. Funds under administration have been growing strongly, supported by steady inflows and increasing adoption by financial advisers.

To me, that speaks to the strength of its platform and the value it provides to clients.

But what makes Netwealth particularly compelling, in my view, is its technology edge.

The company continues to invest heavily in its platform, data capabilities, and increasingly in AI. I think this matters more than ever in financial services, where efficiency, personalisation, and integration are becoming key differentiators.

There is also a powerful network effect at play. As more advisers and clients join the platform, it becomes more valuable, which can help drive further growth.

Breville Group Ltd (ASX: BRG)

Appliance manufacturer Breville is another Australian stock I rate highly.

What I like most is that Breville is not competing on price. It is competing on quality, design, and innovation. That shows up in its ability to generate consistent revenue growth, driven by new product development, premium positioning, and expansion into new markets.

I also think its global growth opportunity is still underappreciated.

The brand is well established in markets like Australia and the US, but it is still gaining traction in newer regions. The company has been expanding into places like China, the Middle East, and other international markets, and early signs have been encouraging.

Another thing I find interesting is how management is leaning into technology and even AI across the business. That tells me this is not a company standing still. It is actively trying to improve operations, marketing, and product development.

Of course, consumer discretionary businesses can be cyclical. But Breville’s focus on the coffee market, premium products, and brand strength seems to provide some resilience, even in tougher environments.

Over a decade, I think that combination of brand, innovation, and global expansion could deliver very attractive returns.

Foolish Takeaway

If I am buying Australian stocks to hold for a decade, I want businesses with clear competitive advantages, strong management teams, and long growth runways.

For me, these stocks tick these boxes. Goodman Group offers exposure to the digital infrastructure boom, Netwealth provides a high-quality platform business benefiting from structural industry shifts, and Breville brings a premium global consumer brand with plenty of expansion potential.

The post 3 high-quality Australian stocks I would buy and hold for a decade appeared first on The Motley Fool Australia.

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• Ord Minnett says this ASX 200 stock can rise 40%
• Buy, hold, sell: Breville, Collins Foods, and MA Financial shares
• Where to invest $10,000 in ASX shares right now
• Top brokers name 3 ASX shares to buy today
• Buy, hold, sell: Breville, Goodman, and Wesfarmers shares

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 Goodman Group and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Markets feel messy right now. But here’s the truth: chaos isn’t new. And people who have been there before and know how to invest don’t panic. They adjust.

Between artificial intelligence disruption, escalating tensions in the Middle East, and higher interest rates, investors are being hit from all angles. The result? Volatility — and plenty of it.

So here’s how to invest when the ASX seems to be spinning out of control?

Lean into defensives

When uncertainty rises, defensive stocks tend to shine.

These are businesses that deliver essential services. Demand doesn’t disappear when the economy slows.

Take Telstra Group Ltd (ASX: TLS). People still need mobile and internet access, no matter what markets are doing. That gives Telstra steady earnings and reliable dividends.

Then there’s Transurban Group (ASX: TCL). It owns major toll roads across Australia and the US. Traffic may fluctuate slightly, but these are critical infrastructure assets with long-term contracts.

Defensive shares won’t always shoot the lights out. But they can help stabilise your portfolio when things get shaky.

Back quality businesses

Volatility is also a great filter. Lower-quality companies tend to struggle when conditions tighten. Strong businesses, on the other hand, prove their worth.

Look for companies with clear competitive advantages. Think strong brands, dominant market positions, or unique assets. Healthcare giant CSL Ltd (ASX: CSL) is an example of a quality ASX stock.

Balance sheets matter too. Companies with low debt and solid cash flow have more flexibility. They can keep investing — even when times are tough.

And don’t forget earnings reliability. Consistent profits give investors confidence and reduce downside risk.

In uncertain markets, quality tends to outperform.

Use ETFs to smooth the ride

If picking individual stocks feels too risky right now, an exchange-traded fund (ETF) can help.

They offer instant diversification. That reduces the impact of any single company or sector.

Income-focused ETFs can provide a steady cash flow. Dividend strategies, in particular, tend to favour more mature, stable businesses. Vanguard Australian Shares High Yield ETF (ASX: VHY) is heavily weighted towards banks, miners, and energy giants like Woodside Energy Group Ltd (ASX: WDS)

Bond ETFs are another option. They typically behave differently to equities and can help cushion market swings. iShares Core Composite Bond ETF (ASX: IAF) has broad exposure to Australian government and corporate bonds and provides investors with quarterly income.

Blending equities with income and fixed income exposure can make a portfolio far more resilient.

Keep investing, just pace it

Timing the market during volatile periods is incredibly difficult.

That’s where dollar-cost averaging comes in.

Instead of investing a lump sum, you spread your investments over time. You buy more when prices are low and less when they’re high, without trying to predict the perfect entry point.

It’s a simple way to invest through turmoil. And it works.

More importantly, it keeps you in the market. Sitting on the sidelines often means missing the recovery.

Foolish Takeaway

Yes, markets are volatile. There’s a lot going on and plenty of reasons for uncertainty.

But that doesn’t mean investors should freeze.

Focus on defensives. Prioritise quality. Use ETFs to diversify. And keep investing steadily.

Because in the long run, staying calm is often the biggest advantage of all.

The post ASX chaos? Here’s how to invest smart, stay calm and win appeared first on The Motley Fool Australia.

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• Woodside shares slip as WA cyclone disrupts gas operations
• Which ASX ETFs have Aussies traded most since the Iran war began?
• Brokers name 3 ASX shares to buy right now

Motley Fool contributor Marc Van Dinther 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 CSL and Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra Group and Transurban Group. The Motley Fool Australia has recommended CSL and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

You hear about it all the time. I talk about it all the time.

Sometimes it’s referred to as ‘The market’. Or ‘The stock market’. Or ‘The ASX’.

As in, ‘the market was up 2%’ on Wednesday. Or ‘the ASX was down 0.2% yesterday’.

And it’s 100% true, accurate and important. These indices tell us about the value increase or decrease, in total, of the companies listed on the ASX.

The S&P/ASX 200 Index (ASX: XJO)? That’s the largest ~200 companies listed on the Australian Securities Exchange.

The ‘All Ordinaries’, otherwise known as the S&P/ASX All Ordinaries Index (ASX: XAO)? The biggest ~500 or so.

You can also find quotes for the S&P/ASX 20 Index (XTL), the S&P/ASX 50 Index (ASX: XFL), the S&P/ASX 300 Index (ASX: XKO), and the ‘Small Ordinaries’, among many others.

They’re really useful, as snapshots of what’s going on, in total, and as a pretty good approximation of the increase or decrease in wealth of their owners.

(Each index covers a slightly different group, of course. Here at The Motley Fool, we’ve long preferred the older, but more comprehensive, All Ords over the newer and more widely used ASX 200, because the former includes more companies and is therefore more representative of the market as a whole.)

But averages and aggregates can hide a lot of detail.

(And a quick note: none of the numbers that follow include dividends, unless stated.)

For example?

Did you know that the difference between the best performing ASX sector and the worst performing one, over the last 12 months, is a whopping 72 percentage points.

No, that’s not a typo. Seventy-two percentage points. Over a single year.

Now, for context, the All Ords is up 6.6% over the last twelve months. The ASX 200 has gained 7.0%

The best performing sector has gained 39.1%. The worst performing lost 33.6%

Not only that, but check this out, too: The gap between the second best and the second worst is… 62 percentage points. Again, not a typo: sixty-two!

So, the ASX has 11 sectors, and 4 of them have moved by more than 30% – 2 each in each direction, while the average has gained between 6.5% and 7%.

The sector that’s closest to that average? A gain of 7.3%.

Everything else is more than 6 percentage points higher or lower than the market average (13.4% and 0.7% are the next closest).

So, compared to the average, only 1 of the 11 sectors is even remotely close!

At this point, I probably should say that these are observations only. I’m not complaining. Or celebrating. It’s not good, bad, right or wrong. No-one is messing with us. It’s… just the way things go, sometimes.

And yes, it reminds me of the old joke about the economist with one hand in the oven and the other in the freezer who says that, on average, things feel about right!

Why am I telling you all this?

Two very different reasons.

First, this is the beauty of index-investing, if that’s your thing. Two down 30%, two up 30%, but you don’t need to care, because you’ve got your 6.5% or 7%, plus dividends, and haven’t even noticed the very different fortunes of different parts of the market.

But second, if you’re a stock-picker, it’s a reminder not to get carried away with euphoria or despair.

Let’s peel back the curtain a bit, too:

The two high-performing sectors? Energy (yep, oil… surprise!), and Resources.

The two worst? IT and Healthcare.

(The average one is consumer staples, if you’re wondering!)

If you own resources shares, you’ve had a very good 12 months. But was it luck or good management? Remember… a rising tide lifts all boats.

If you’re a technology investor, you’ve probably had an absolute shocker. But was it poor stock-picking, or did you just get whacked by a market-wide change in sentiment? Remember, in the short run, the market is a voting machine, not a weighing machine.

Me? I own (a small number of) shares in a single resources company. And no ASX-listed technology companies. So I have a very, very tiny dog in this fight – but that’s not really the point here.

And I’m not giving an investment view on either sector. Just making the case that, compared to ‘the market’, resources investors feel like kings, and tech investors feel like paupers.

But what I am saying is that you shouldn’t take either feeling to heart.

Because… sentiment tends to move, and sometimes quickly.

Using year-end data, here’s what I can say by year (I’m excluding 2025, because most of that data is already in the ‘last 12 months’ data I used above):

2024: IT was up 49.5% while Energy lost 18.8%.

2023: IT was up 30.4%, and Energy fell 3.8%.

2022: IT fell 34.2%, but Energy gained 39.7%.

2021: Both had unusually flat years, down 2.8% and 2.0%, respectively.

Now, imagine how you felt, in each of those years.

Joyous sometimes, miserable at others.

Self-congratulatory, and self-flagellating.

Like a genius… and a dunce.

But what was really happening?

Prices were just… moving. Sentiment was shifting. Popularity contests were being won and lost.

Most importantly, comparing those results to any of the stock market indices would have made you feel like a massive winner, or a huge loser.

For a while. A short while.

Now, I’m the last person to say you shouldn’t keep score in investing. You absolutely should – if only to work out if all of the time, effort and energy you put into your investing is worth it, or whether you should just buy a low-cost, passive, index-based ETF and go fishing instead!

But the timeframe over which you keep score absolutely matters.

As does allowing for volatility.

And even long periods can be pernicious.

How so? Well, the ASX Energy sector is up 32.0% over the past 5 years.

But all of that gain – and more – has come from just the last three months of that 60 month period.

Between March 2021 and December 2025, the Energy index was actually down 2.8%. It’s only the gain of 36% since the middle of December that’s allowed the sector to deliver that 5 year gain.

Similarly, Information Technology is down 20% over the past 5 years, but was up 50% between March 2021 and October of last year, before falling.

Am I cherry-picking? Not really.

The point is that if I’d written this article 6 months ago, the numbers and examples would have been incredibly different – even for 5-year periods.

But if you hadn’t read that article, and looked only at the numbers, you’d have felt very different about those different sectors.

You might have even formed different conclusions about your investing decisions – and abilities – too.

Conclusions that might be different to the ones that you’d reach today, on the same basis, but with very different data which might lead to very different outcomes.

What’s really important is that we don’t use only share price outcomes, even over multi-year periods, to assess our investing performance.

Yes, over longer terms, the share price (and any dividends!) are all that matter – you can’t buy a loaf of bread with the competitive advantages of your favourite company; only with the proceeds of dividends or the sale of its shares.

But in the meantime? The question for every investor – at the time of purchase and for as long as you own a company’s shares – is a simple one: Is today’s price attractive, based on the future I see for this business?

And keep two quotes in mind:

“Markets can remain irrational longer than you can remain solvent.”

– John Maynard Keynes

and

“If the business does well, the stock eventually follows.”

– Warren Buffett

No, it’s not always easy. Yes, five years feels like forever, especially when share prices are down.

But that’s the best way I know of to put the investing odds in your favour.

Fool on!

The post What’s really going on, on the ASX? appeared first on The Motley Fool Australia.

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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.

The market feels like it has been a sea of red recently.

While that is disappointing for our portfolios, the short term pain could have created some compelling buying opportunities.

But which ASX 200 shares are buys? Let’s take a look at five that Wilsons thinks have been oversold.

Wilsons says these ASX 200 shares have been oversold

Wilsons highlights that ASX growth shares and those linked to financial markets have undertaken a major de-rating.

This includes hearing solutions company Cochlear Ltd (ASX: COH), investment platform provider Hub24 Ltd (ASX: HUB), and investment management company Pinnacle Investment Management Group Ltd (ASX: PNI).

Wilsons points out that these ASX 200 shares are now trading on lower than average PE ratios despite having positive outlooks. It explains:

Growth stocks and companies with earnings leverage to financial markets have de-rated as bond yields have risen and risk assets weakened, creating selective opportunities on a medium-term view. Pinnacle (PNI) and HUB24 (HUB) trade below five-year average P/E multiples while retaining strong structural growth and offering meaningful leverage to an eventual equity market recovery. Cochlear (COH) trades at a decade-low P/E, with its Nexa product cycle supporting medium-term earnings acceleration.

What else?

Also catching the eye of Wilsons is Amcor (ASX: AMC). Its shares are trading close to 52-week lows despite having defensive qualities and being well-placed for growth from just the synergies of the Berry acquisition. It adds:

Cyclicals outside mining have also weakened on global and domestic growth concerns. We remain cautious on domestic cyclicals given a soft backdrop and RBA tightening but see more compelling opportunities offshore. Amcor (AMC), while arguably a defensive given its consumer staples end-market exposure, has been impacted by cyclical packaging demand concerns. However, it remains well positioned to deliver double-digit EPS growth from Berry synergies alone. On this basis, its single-digit P/E appears attractive.

Finally, Wilsons thinks copper miner Sandfire Resources Ltd (ASX: SFR) is an ASX 200 share that offers an attractive risk/reward following recent weakness in the mining sector. It commented:

The broader mining sector has sold off on cyclical growth concerns. While uncertainty remains elevated, miners appear well placed to rebound if the conflict de-escalates over the next few weeks. Within the sector, Sandfire Resources (SFR) offers an attractive risk/reward, supported by tight copper fundamentals, structural demand tailwinds, and valuation upside.

The post 5 oversold ASX 200 shares to buy according to Wilsons appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Cochlear. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear, Hub24, and Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Amcor Plc and Pinnacle Investment Management Group. The Motley Fool Australia has recommended Cochlear and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was a sour end to what has otherwise been a sweet week for ASX investors this Friday. After remaining in red territory all session today, the S&P/ASX 200 Index (ASX: XJO) finished the week with a slight 0.11% loss.

As such, we head into the weekend with the ASX 200 at 8,516.3 points.

This disappointing conclusion to the week’s trading for Australian investors was preceded by an even more downbeat morning on the American markets.

The Dow Jones Industrial Average Index (DJX: .DJI) gave up an early lead to finish at a significant 1.01% loss.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was hit even harder, falling by 2.38%.

But let’s return to the local markets now and dive a little deeper into how the various ASX sectors fared amid today’s tough trading conditions.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals, Treasury Wine Estates, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are looking for outsized returns, then EBR Systems Inc (ASX: EBR) shares could be worth a look.

That’s the view of analysts at Morgans, who believe this ASX stock could be dirt cheap following recent weakness.

What is this ASX stock?

EBR Systems is a Silicon Valley-based medical device company focused on the treatment of cardiac rhythm disease through wireless cardiac pacing.

The ASX stock’s patented proprietary Wireless Stimulation Endocardially (WiSE) technology was developed to eliminate the need for cardiac pacing leads.

This is a big deal as historically cardiac pacing leads have been a major source of complications, effectiveness, and reliability issues in cardiac rhythm disease management.

Its initial product is designed to eliminate the need for coronary sinus leads to stimulate the left ventricle in heart failure patients requiring Cardiac Resynchronisation Therapy (CRT). Future products will potentially address wireless endocardial stimulation for bradycardia and other non-cardiac indications.

What is Morgans saying?

Morgans was pleased with the company’s progress in 2025, highlighting that the year saw a “pivotal transition to commercialisation.”

It was also pleased to see that strong early momentum has continued into 2026. This is being supported by favourable reimbursement and growing physician engagement.

Commenting on the company, the broker said:

CY25 marked a pivotal transition to commercialisation, with first US implants and strong early momentum continuing into CY26, supported by favourable reimbursement and growing physician engagement. Early KPIs remain encouraging, with implant volumes accelerating (18 in 4Q; 25 in Jan–Feb CY26), 28 hospital agreements signed, and 46 physicians trained, indicating a solid foundation for scale.

Salesforce capacity and reimbursement complexity, not demand, act as governors, with strong patient pipelines and high physician enthusiasm. With cash of cUS$54m, B/S is a near-term focus, placing increased importance on execution through CY26 to support future funding at improved terms.

Big potential returns

According to the note, the broker sees potential for some mouth-watering returns over the next 12 months.

In response to its recent update, Morgans has retained its buy rating on the ASX stock with a trimmed price target of $2.47 (from $2.95).

Based on its current share price of 64 cents, this implies potential upside of approximately 285% for investors between now and this time next year.

To put that into context, a $2,000 investment would turn into approximately $7,700 if Morgans is on the money with its recommendation.

The post Guess which ASX stock could more than triple in value according to Morgans! appeared first on The Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) has had a rough few weeks, to be sure. Since 2 March, the index has fallen by a rather nasty 7.6%, which is about the same as its average annual gain. That drop has, of course, dragged down the value of many ASX shares. It’s a pretty significant drop, given that the ASX 200 is, at today’s 8,500 points, back at a level it first hit in early 2025.

Now, no one knows what’s next in store for the index. Saying that, I would be willing to wager that the direction the Australian markets take over the coming few months will largely be dictated by what happens in the US-Iran war. I wouldn’t be surprised either way: the ASX 200 could rally by 10% by the middle of 2026, or fall by another 10%.

If the latter scenario happens, I’ve already got my ASX stock watchlist ready to go. After all, market downturns have always been great opportunities to pick up shares of quality companies at bargain prices.

With that in mind, here are two ASX 200 shares that I’ll be thinking about buying if we see the ASX 200 give up another 10% in the months ahead.

Two ASX 200 shares I’d buy if the market fell another 10%

First up, we have Telstra Group Ltd (ASX: TLS). I was a Telstra shareholder for many years, but sold out of my position when the company went well over $5 a share. At $5.30 at the time of writing, I don’t think I’ll be buying back Telstra any time soon. That said, I think this ASX share is one of the most dominant businesses on the market, with a powerful brand, a superior network, and formidable pricing power. It also tends to pay a large and reliable dividend.

I would consider adding Telstra back to my ASX share portfolio if the telco suffered a significant correction, which could well occur if the ASX 200 drops by 10% or more.

Next, let’s talk TechnologyOne Ltd (ASX: TNE). This ASX tech stock was a former market darling before suffering a significant pullback over the back half of 2025 and in the first two months of 2026. TechnologyOne delivers incredible numbers every six months. Back in November, investors learned that this company recorded revenue growth of 18% to $554.6 million, as well as a 19% surge in profits before tax to $181.5 million.

Unfortunately, I missed out on the chance to pick up shares of this impressive tech stock when it hit a new 52-week low of just above $20 per share in February. If the market drops another 10% and TechnologyOne returns to that kind of pricing, I won’t make the same mistake again.

The post 2 ASX shares I’d buy if the market fell another 10% appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The CAR Group Ltd (ASX: CAR) share price is once again in the red on Friday.

At the time of writing, shares are down 1.92% to $22.51, after falling as low as $22.19 earlier in the session. That marks a multi-year low, with the stock now trading at levels last seen in April 2023.

The latest move adds to a rapid decline this year, with CAR Group shares now down around 27% since January.

Here’s what’s driving the continued weakness.

Strong results but share price still falling

CAR Group operates a global online automotive marketplace, with established platforms across Australia and international markets.

Recent results point to continued growth, with double-digit increases in both revenue and EBITDA in its latest half-year update. This was supported by pricing gains and product improvements across its platforms.

However, this has not been reflected in the share price.

Recent broker commentary indicates the stock has been caught in broader tech sector selling, with concerns around artificial intelligence (AI) disruption weighing on valuations. This trend has also affected similar digital platform companies, particularly those relying on listings and advertising.

In addition, the company was previously trading at a premium, which has left it more exposed to a de-rating as sentiment has weakened.

Technical picture shows sustained downtrend

The share price has moved steadily lower since peaking near $40 in 2025, with lower highs and lower lows forming throughout the period.

Bollinger bands indicate the stock is trading near the lower band, and the relative strength index (RSI) is sitting around the mid-30s.

There is also limited nearby support, with the recent low around $22.19 acting as the first key level. A break below this could open the door to further downside, while resistance appears to be forming closer to the $24 to $25 range.

What the market is pricing in

The current share price suggests the market is reassessing expectations around the company’s growth and valuation.

While the business continues to expand globally and deliver earnings growth, sentiment toward technology-linked names has softened.

This has led to a pullback in valuations across the sector, even where CAR Group’s underlying earnings remain solid.

Foolish Takeaway

CAR Group shares are now trading at multi-year lows after a sharp decline in 2026.

The business itself continues to deliver growth, but the share price reflects changing sentiment toward valuation and sector-wide pressures.

With the stock trending lower and technical indicators still weak, near-term performance is likely to depend on market conditions and investor confidence in the company’s growth outlook.

The post This ASX 200 stock just hit a multi-year low. Here’s what’s behind the slide appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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.

UBS sees a “compelling risk-reward” in ASX lithium shares, with the top broker predicting the war in Iran will drive higher demand for electric vehicles (EVs) in the future.

Oil prices have skyrocketed since Israel and the US attacked Iran one month ago.

Over the past 30 days, the Brent crude oil price has jumped 38% while US West Texas Intermediate (WTI) has risen 31%.

UBS analysts see “the potential for another upcycle” in lithium prices, which began rebounding from a two-year rout in mid-2025.

Last year’s rebound was driven by greater global demand for batteries, EVs, and power infrastructure due to the green energy transition.

Lithium spodumene prices rose from less than US$600 per tonne in June last year to over US$1,400 per tonne by December.

Today, lithium spodumene is fetching US$2,230 per tonne, according to Shanghai Metals Market.

UBS sees potential for the spodumene price to reach US$4,000 per tonne by the end of the year. 

The lithium carbonate price rose to a two-year high of about US$26,200 per tonne in January, before paring back to US$22,650 today.

Let’s take a look at the changes UBS has made to its ratings and 12-month price targets for ASX lithium shares.

ASX lithium shares re-rated

UBS has upgraded IGO Ltd (ASX: IGO) shares from a neutral to buy rating with a slightly improved 12-month price target of $8.55.

On Friday, the IGO share price is $7.94, up 4.1% today, down 7.8% since the war in Iran began, and up 90% over 12 months.

UBS reiterated its buy rating on Liontown Resources Ltd (ASX: LTR) and raised its target by 4.8% to $2.20.

The Liontown share price is $1.72, up 0.7% on Friday, 0.7% higher over the month, and up 161% over the past year.

The broker downgraded the market’s largest lithium pure-play miner, PLS Group Ltd (ASX: PLS), from a buy rating to neutral.

UBS put a price target of $4.95 on PLS shares.

On Friday, the PLS Group share price is $5.06, up 1.8% today and down 2.5% since the war began.

PLS shares have ripped 174% over the past year and reached a two-and-a-half-year high of $5.32 last month.

Trading Economics analysts say there are “signs of a momentary pullback in battery demand” as the war in Iran drags on.

On Friday, the analysts said:

Electric vehicle sales by top Chinese manufacturer BYD tanked 40% annually in February, a reversal from the growing trend in the previous months to raise concerns that the Chinese EV market may be slowing.

The data magnifies worries that higher energy costs due to war in the Middle East could hamper large manufacturers from building input goods inventories, driving industrial metals to pull back.

Still, Chinese supply was also expected to remain muted due to Beijing’s anti-involution campaign.

Last year, data showed increasing sales of EVs in China, with EVs outselling traditional cars for the first time in October.

Trading Economics reported that EV sales in China grew 20.6% annually to a record of 1.823 million units in November.

The post ASX lithium shares ‘compelling’ as top broker adjusts ratings appeared first on The Motley Fool Australia.

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• 3 reasons to buy this high flying ASX lithium stock for the long term
• Are Liontown shares a buy, hold, or sell?
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• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bronwyn Allen 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.

I think Sigma Healthcare Ltd (ASX: SIG) has quietly become one of the more interesting names on the S&P/ASX 200 Index (ASX: XJO).

After completing its merger with Chemist Warehouse last year, the business now represents a scaled, integrated, healthcare and retail pharmacy powerhouse.

And yet, despite that transformation, the share price has pulled back sharply. At around $2.58, Sigma is sitting at a 52-week low and down more than 20% from its recent highs.

That raises an obvious question for investors. Is this a buying opportunity?

A stronger business than before

The first thing to understand is that Sigma today is not the same business it was a few years ago.

The Chemist Warehouse merger has materially changed the earnings profile. The combined group is now benefiting from strong retail sales growth, expanding store networks, and increasing scale advantages across its supply chain.

Its latest half-year result highlighted this clearly. Revenue rose 14.9% to $5.5 billion, while normalised net profit after tax increased 19.2%.

Importantly, this growth is not being driven by one-off factors. Chemist Warehouse has a long track record of strong same-store sales growth, supported by its value proposition and brand strength. That momentum appears to be continuing, with double-digit growth across both domestic and international markets.

At the same time, Sigma is progressing integration and synergy benefits, with a target of $100 million per annum in synergies by FY29.

In other words, the business is getting bigger, more efficient, and more profitable.

A defensive growth profile

One of the reasons Sigma stands out to me is its mix of defensiveness and growth.

Healthcare spending tends to be relatively resilient, even during economic slowdowns. People still need prescriptions, essential health products, and everyday pharmacy items regardless of the economic backdrop.

That provides a level of earnings stability that many other retail-exposed businesses lack.

But Sigma is not just defensive. It also has multiple growth levers. These include store network expansion, private label product growth, international rollout, and ongoing efficiency gains from scale.

I think this combination is powerful. It means investors are not just buying stability, but also a long runway for earnings growth.

Valuation is not cheap, but may be justified

Of course, there is a catch with this ASX 200 stock

Sigma is not what most investors would describe as cheap.

According to CommSec, the company is expected to generate earnings per share of 6.2 cents in FY26 and 7.1 cents in FY27. That places the stock on a relatively high price-to-earnings (P/E) multiple of approximately 42x and 36x, even after the recent share price decline.

But quality businesses often trade at a premium for a reason.

Sigma’s scale, brand exposure through Chemist Warehouse, defensive earnings profile, and synergy potential arguably justify a higher valuation than a typical distributor or retailer.

I think the recent pullback may simply reflect broader market conditions or profit-taking after a strong run, rather than any deterioration in fundamentals.

Does the fall make it a no-brainer buy?

For me, the key question is whether the long-term story has changed.

Right now, there is little evidence to suggest it has. The business continues to deliver strong growth, integration is on track, and the underlying industry dynamics remain favourable.

Yes, the valuation still requires some belief in future growth. But with multiple tailwinds and a proven retail model, that belief does not seem misplaced.

Foolish Takeaway

Sigma Healthcare’s share price weakness is likely to grab attention, but the fundamentals tell a different story.

This is now a scaled, defensive healthcare business with strong growth drivers, a powerful retail brand, and meaningful synergies yet to be realised. While it is not conventionally cheap, high-quality companies rarely are.

For investors willing to look beyond short-term share price movements, I think the recent pullback could be an attractive opportunity to buy a business that is stronger and has long-term potential.

The post Does this ASX 200 stock’s fall make it a no-brainer buy? appeared first on The Motley Fool Australia.

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• 3 ASX shares to buy for magnificent long-term growth!
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• 2 top ASX shares I’d buy today amid falling prices
• Why buying ASX shares in March could supercharge your wealth

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 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.