3 of the best Australian stocks to buy after the market selloff

The market has taken a beating this month as volatility surged, interest rate uncertainty spooked investors, and tech valuations came under pressure. While that kind of pullback can feel unsettling, it often creates some of the best opportunities long-term investors will see all year.

Several high-quality Australian stocks have been dragged down with the broader market. And for patient investors, that combination of temporary weakness can be a gift.

With that in mind, here are three outstanding Australian stocks that analysts think look compelling after the recent selloff.

CSL Ltd (ASX: CSL)

CSL was for a long time one of the most reliable long-term compounders on the Australian share market. However, its shares have been hit hard over the past year due to concerns around margin recovery, restructuring costs, and uncertainty surrounding the planned Seqirus demerger.

But zoom out, and the long-term investment case remains extremely strong. CSL’s core plasma business is benefiting from growing collections, improving efficiencies, and rising global demand for critical therapies. The biotech company continues to invest heavily in its pipeline, with new treatments and market expansions expected to support earnings over the decade ahead.

Importantly, CSL’s valuation has become materially more attractive. For example, Macquarie Group Ltd (ASX: MQG) currently has an outperform rating and $275.20 price target on its shares. This implies potential upside of more than 50% from current levels.

NextDC Ltd (ASX: NXT)

Another Australian stock that has fallen heavily from its highs is NextDC.

It has been caught up in the tech-led market pullback, despite its exceptional underlying momentum. The company continues to expand aggressively to meet soaring demand for data storage, cloud services, and high-performance computing. These are structural trends that remain in their early innings.

With hyperscale customers scaling up AI workloads and enterprises shifting more operations into the cloud, NextDC is positioned squarely at the centre of one of the most powerful megatrends of the next decade. Its pipeline of new facilities, long-term contracted revenue, and high customer stickiness give the business a remarkable degree of predictability.

Macquarie also recently put an outperform rating on this stock with a $20.90 price target. This suggests that upside of over 50% is possible over the next 12 months.

TechnologyOne Ltd (ASX: TNE)

Finally, TechnologyOne’s share price crash this week has come despite the company delivering another year of record profit, record ARR, and strong cashflow. The market’s reaction appears more about valuation resets and profit-taking than any deterioration in fundamentals.

The core business remains in excellent shape. TechnologyOne continues to win new customers across government, education, and corporate markets, while its SaaS+ model is transforming the speed and efficiency of ERP deployments. ARR is growing strongly, its UK expansion is accelerating, and the company has deepened its product moat through heavy investment in R&D and AI-driven enhancements.

Shaw and Partners thinks that investors should be buying the dip. This morning, the broker upgraded this Australian stock to a buy rating with a $37.30 price target. This implies potential upside of almost 30% from current levels.

The post 3 of the best Australian stocks to buy after the market selloff appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL, Nextdc, and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, and Technology One. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended CSL and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.