A new financial year is on the horizon, so what better time to look at making some new investments.
But which ASX 200 shares could be top picks for FY 2027 and beyond? Let’s take a close look at two that I think could be worth considering:
CSL Ltd (ASX: CSL)
The first ASX 200 share to look at is CSL.
There is no point pretending the past couple of years have been easy. CSL has disappointed investors, downgraded expectations, faced pressure in parts of its portfolio, and seen confidence in the stock fall sharply.
This means that CSL shares are no longer priced like an untouchable market darling. The biotech company is being valued like one with problems to solve. Some of that caution is fair, but the share price may now be offering a more compelling risk/reward balance than it has for some time.
The core business still has major strengths. CSL remains a global leader in plasma therapies, vaccines, and specialty medicines. Demand for many of its products is tied to healthcare needs rather than short-term consumer spending.
If management can stabilise expectations, rebuild margins, and show that earnings growth is returning, the recovery potential could be significant.
This is not the low-risk blue chip it once appeared to be. But for investors willing to look through the bad news, CSL could be one of the more interesting turnaround opportunities on the ASX 200.
Xero Ltd (ASX: XRO)
Another ASX 200 share that could be worth buying in FY 2027 is Xero.
Xero has already become an important platform for small businesses, accountants, and bookkeepers. But the bigger opportunity is not just accounting software.
The company is building deeper connections into the financial lives of small businesses. Invoicing, payroll, payments, bank feeds, reporting, compliance, and adviser tools all sit inside the same ecosystem.
That can make Xero increasingly difficult to replace once a business is fully embedded on the platform.
The next stage of growth may come from expanding the value of each customer relationship. Automation, artificial intelligence, payments, lending connections, and workflow tools could all help Xero become more useful over time.
The stock will not be cheap if judged only by near-term earnings multiples. But high-quality software companies rarely look cheap when they are executing well.
For investors with a long-term view, Xero remains one of the ASX 200’s strongest technology growth stories.
The post Where to invest $50,000 in ASX 200 shares in FY27 appeared first on The Motley Fool Australia.
Should you invest $1,000 in CSL right now?
Before you buy CSL shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CSL wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 20 Feb 2026
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More reading
- Here are the top 10 ASX 200 shares today
- 8 ASX 200 shares with renewed buy ratings this week
- 2 ASX tech shares I’d buy that aren’t Xero or WiseTech
- How much does UBS think CSL will bounce back?
- Here’s what brokers tip for WiseTech shares over the next 12 months
Motley Fool contributor James Mickleboro has positions in CSL and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.