Telix Pharmaceuticals Ltd (ASX: TLX) shares closed 1.3% lower on Tuesday afternoon, at $15.78 a piece.

The decline means the shares have now fallen just over 9% over the past week, sparking concerns that the rebound is now over for Telix shares.

The biopharmaceutical stock tumbled to a multi-year low of $8.63 in mid-February, before recovering over 100% in early July.

The shares are now up around 39% for the year-to-date.

But they’re still roughly 33% lower than trading levels seen 12 months ago, and 48% lower than an all-time high recorded in early 2025.

What caused the rebound?

Telix shares turned a corner in February this year after a series of good-news announcements out of the biotech company. 

In late February, the company confirmed that it had filed for a key regulatory approval in Europe. 

Later in March, Telix posted several announcements about its growth and development plans. 

In early April, Telix announced that the FDA had accepted its NDA for TLX101-Px (Pixclara®) and also announced a major collaboration with US-based biotech company Regeneron Pharmaceuticals. 

It also announced a 56% increase in revenue and issued FY26 guidance in the range of US$950 million to US$970 million.

Then in early July, the company confirmed it has reached an agreement with the FDA to move ahead with the next part of its ProstACT Global Phase 3 study in the US, developed to target prostate cancer.

Why have Telix shares now started tumbling again?

It’s not clear why Telix shares have been tumbling over the past week. There has been no price-sensitive news out of the company to explain the latest sell off. 

It’s most likely a combination of investors taking gains off the table after a strong rally, and a shift in sentiment for ASX healthcare shares overall.

Reignition of conflict in the Middle East has caused a fresh wave of uncertainty across markets, with investors again rotating into more defensive sectors.

Is there any upside left for Telix shares?

According to the experts, there should be a lot more to come from Telix shares over the next 12 months.

TradingView data shows that 15 out of 16 analysts have a buy or strong buy rating on the shares. One more has a hold rating. They all agree we’ll see some upside ahead too.

The average $25.01 target price implies a potential 59% upside at the time of writing. But the more bullish of the bunch forecast the shares to rocket another 101% to $31.65 over the next 12 months.

Morgans has a $24.33 price target on the healthcare stock and said that industry consolidation could spark more interest in Telix shares.

The broker said that recent news flow on its convertible note refinancing, solid sales figures, and collaboration with Regeneron suggests there is plenty happening at Telix. 

There are also several potential milestones ahead for the company this year, including FDA clearance for its Zircalix kidney cancer imaging production and Pixclara for brain cancer imaging.

The post Down 9%: Is the rebound over for Telix shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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 Telix Pharmaceuticals. 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.

Guzman Y Gomez (ASX: GYG) shares could be one of Australia’s top shares to consider right now. It could offer the right mix of revenue growth and rising profit margins to unlock great returns for investors.

In the future, it may be rare for GYG shares to trade at around $20, given how quickly the underlying business is growing. I also think the business is unlikely to fall more than 20% within 12 months, as it has done.

The Mexican food business looks like a good buy and one of Australia’s top shares for the following reasons.

Strong sales growth

I believe every great business needs to be able to deliver strong compounding. In other words, the company can justify excellent, sustainable share price returns because it’s increasing its intrinsic value at a good pace as revenue and earnings climb.

A company growing earnings at 2% per year is not going to cut it if we’re trying to outperform the market over the long-term.

GYG makes revenue from both its owned restaurants and the franchise ones. One of the best signs of the company’s financial progress is its growing total network sales, which is partly driven by its expanding network of restaurants across Australia and Asia.

We continued to see how quickly the business is growing in the FY26 third quarter.

Australian network sales grew by 19.7% year-over-year to $320.4 million, while Asian network sales grew by 18.7% to $21.5 million. Across Australia and Asia, its comparable sales growth was 6.6%, a strong rate of organic growth for existing restaurants.

That quarterly update also showed the total number of Australian restaurants grew by 14.7% year-over-year to 242, Singaporean restaurants grew by 15% to 23, and Japanese restaurants increased 25% to five.

In the ultra-long term, the company aims to reach 1,000 Australian locations over the next 20 years. It is expected to open 32 Australian restaurants in FY26, showing it’s making solid progress towards that long-term goal.

If its overall network sales can continue growing in the teens in percentage terms for the foreseeable future, it’ll very likely translate into rising profit, making it one of Australia’s top shares, in my view.

Growing profitability

Investors usually value a business based on how much profit it’s generating and could make in the future.

We’ve already seen that the company’s network sales are growing quickly and its profit is growing even faster. Operating leverage is a very powerful force for a great company.

In the FY26 half-year result, network sales grew 18% to $681.8 million, segment underlying operating profit (EBITDA) grew 23.3% to $33 million, profit before tax (PBT) grew 26.2% to $19.2 million and net profit grew 44.9% to $10.6 million.

That HY26 result saw the segment underlying operating profit (EBITDA) as a percentage of network sales improve by 0.6 percentage points to 6.1%. In the long-term, the company thinks this operating profit margin could improve to 10%, which would be a significant improvement over time and implies the bottom line can continue its fast growth.

Significant improvement of profit margins adds to my belief that this business is one of Australia’s top shares.

Valuation

According to Commsec’s projection, the company is valued at 32x FY28’s estimated earnings.

I think this is a great time to invest. But, it’s not the only ASX share with a very compelling future.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Guzman Y Gomez. 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.

There are a number of ASX shares that could be excellent buys right now based on their valuations and potential growth.

When the valuation makes sense, businesses that are growing earnings rapidly could be very attractive buys.

When one analyst rates a business as a buy, that’s interesting. When numerous experts rate a stock as a buy, it could be a compelling opportunity. Let’s look at two ASX shares with significant backing.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of the ASX leading tech companies. It provides enterprise resource planning (ERP) software to various customers such as government entities, local councils, companies, universities and so on.

According to the Commsec collation of analyst opinions, there are currently 13 buy ratings on the business, as well as one hold rating and two sell ratings.

The company is delivering impressive growth year over year. It has a net revenue retention (NRR) goal of 115%, which means it’s aiming to grow its revenue from its existing client base by 15% each year. At that pace, revenue would double in size over five years.

The ASX share is winning more clients in different markets, across both geographies and sectors. It’s growing in the UK, which is a large target market and has similar institutions to Australia, so its software offerings could resonate with potential customers.

I like how the company invests significantly in research and development, which helps it provide the best offering for clients. Additionally, AI tools could help the business lower its costs/speed up its development.

According to the projection on Commsec, the TechnologyOne share price is valued at 51x FY27’s estimated earnings.

Zip Co Ltd (ASX: ZIP)

Zip is one of the leading buy now, pay later businesses in Australia and New Zealand.

According to the Commsec collation of analyst opinions, there are currently 12 buy ratings on the business, with no other ratings.

The ASX share is experiencing ongoing solid growth in the US, which is now the company’s core growth market and it’s seeing rising profit generation.

In the FY26 third quarter, Zip reported total income growth of 20.2% to $335.2 million and operating profit (cash EBTDA) growth of 41.5%. Revenue is growing at a strong pace and profit margins are increasing, which is a great sign for the company’s future net profit.

The company has seen an increase in net bad debts, so that’s something to keep an eye on. But, it’s a lot cheaper than it was in October 2025 – it’s down more than third since then.

According to the projection on Commsec, the Zip share price is valued at 33x FY26’s estimated earnings.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One. 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.