Nobody knows when the next serious market sell-off will arrive.

But I think it is worth owning ASX shares that I would still feel comfortable holding if share prices suddenly fell 20% or 30%.

For me, that means looking for strong competitive positions, dependable demand, and businesses that can keep moving forward even when the economic backdrop becomes less friendly.

These are three ASX shares that fit that description.

Cochlear Ltd (ASX: COH)

Cochlear would be one of my first choices. It is a global leader in implantable hearing solutions, operating in a healthcare market where the underlying need does not disappear because economic conditions weaken.

That gives Cochlear a degree of resilience I like.

There is also a long-term growth story behind the defensive qualities. Ageing populations and greater awareness of hearing loss should continue expanding the number of people who could benefit from treatment.

Cochlear also has a strong record of product development, which helps it keep improving the technology available to patients and healthcare professionals.

A market sell-off could still drag Cochlear shares lower. But I would be comfortable looking through that volatility and sticking with the long-term investment case.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is an ASX share that gives me a different kind of confidence.

This conglomerate’s portfolio includes businesses such as Bunnings, Kmart, Target, Silk Laser, Priceline, and Officeworks, giving the company exposure to categories that remain important to Australian consumers through different parts of the economic cycle.

I particularly like the strength of Bunnings. Its scale, brand recognition, and position in home improvement make it difficult to replicate, while Kmart has built a strong value proposition that can remain relevant when household budgets are under pressure.

Wesfarmers also has a long history of allocating capital across different businesses and industries. That flexibility is valuable during weaker markets. A strong balance sheet and patient management can create opportunities when other companies are forced to pull back.

For me, that makes Wesfarmers the sort of business I would be happy to keep holding even if sentiment towards the broader market turned sharply negative.

Woolworths Group Ltd (ASX: WOW)

Woolworths would be my third ASX share pick.

Grocery spending is one of the more defensive parts of the economy because households still need food and everyday essentials regardless of what markets are doing.

That gives Woolworths a steady demand base through periods when consumers may be cutting back elsewhere.

Its scale also works in its favour. Woolworths operates one of the country’s largest supermarket networks, with the purchasing power, distribution infrastructure, and customer reach that come with that position.

The business still needs to execute well, particularly around pricing, costs, and competition. But if the share market were falling because investors were worried about the economic outlook, Woolworths is the sort of company I would be comfortable continuing to own.

Foolish takeaway

A market downturn would probably send all three share prices lower. That would not automatically make me want to sell them.

What I care about is whether the businesses themselves can keep strengthening while the market works through the turbulence.

Cochlear, Wesfarmers, and Woolworths all give me reasons to believe they could. That is why I would be comfortable owning them before, during, and after the next sell-off.

The post 3 defensive ASX shares I’d buy in a market sell-off appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Goodman, Wesfarmers, BHP shares
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Motley Fool contributor Grace Alvino has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and Wesfarmers. The Motley Fool Australia has recommended Cochlear and Wesfarmers. 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 to bring your portfolio to life, then it could be worth considering the ASX healthcare stock in this article.

That’s because if Bell Potter is on the money with its recommendation, it could double in value between now and this time next year.

Which ASX stock?

The stock that has caught the eye of Bell Potter is Aroa Biosurgery Ltd (ASX: ARX).

It is a commercial stage medical device company that operates within the wound care and soft tissue reconstruction sector. 

Bell Potter highlights that the company has reported positive peer-reviewed results from its published Symphony randomised controlled trial in diabetic foot ulcers (DFUs). It said:

Symphony plus standard of care (SOC) increased complete wound closure at 12 weeks to 45.6% versus 23.6% with SOC alone, a 22pp benefit (p=0.008). The benefit importantly remained significant after adjustment for baseline wound area and ulcer recurrence, with consistent per-protocol findings. Estimated mean time to closure was also 7.8 days shorter at 67.4 days. These results establish substantive clinical evidence expected to support Symphony’s outpatient adoption in both chronic and complex wounds.

The broker believes these results and economics reshape the opportunity. It adds:

The results arrive as reimbursement reform increases scrutiny of both clinical evidence and treatment economics. Provider uncertainty and wastage restrictions are disrupting the market, creating opportunities in the institutional channels that ARX is targeting. 

Symphony’s competitive pricing, shelf-stable format and range of SKUs support its positioning as provider margins, logistics and wound-matched sizing become increasingly important to product selection.

Big potential returns

According to the note, the broker has retained its buy rating and $1.09 price target on the ASX stock. 

Based on its current share price of 50.5 cents, this implies potential upside of approximately 115% for investors over the next 12 months.

Commenting on its investment thesis and valuation, Bell Potter said:

Myriad remains the established near term growth driver, while Symphony provides access to a significant outpatient opportunity supported by a stronger clinical evidence base. Against an estimated US$1bn addressable market, our Symphony revenue forecasts remain modest at NZ$1.5m in FY27 and NZ$2.0m thereafter, leaving meaningful upside as adoption gains traction. 

ARX continues to screen attractively on 1.6x consensus CY26 EV/revenue, a ~40% discount to the broader peer average and ~61% to domestic peers. We see scope for this gap to narrow through continued direct sales growth, with the November H1 result the next catalyst in assessing commercial progress. We maintain our Buy rating and $1.09 target price.

The post Top broker says this ASX stock could rise 115% appeared first on The Motley Fool Australia.

More reading

• Morgans says these ASX shares could return 48% to 95%
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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 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.

Some share price falls make me nervous. Others make me want to look much more closely at what has actually changed inside the business.

One ASX growth share has fallen more than 60% over the past 12 months, yet I think its long-term opportunity may be getting stronger.

That share is cloud accounting platform provider Xero Ltd (ASX: XRO).

Beaten-down ASX growth share

Xero shares are now trading around $57 after a brutal year for shareholders.

Part of the concern has centred on artificial intelligence (AI) and what increasingly capable software could mean for traditional accounting platforms. Growth stocks have also faced pressure from higher interest rates and weaker market sentiment.

I can understand why investors are asking harder questions. But I think the market may be overlooking how Xero itself is changing.

Becoming more than accounting software

For years, the Xero investment case largely revolved around convincing more small businesses to move their accounting into the cloud.

That opportunity still exists, but the company now has broader ambitions.

Its acquisition of Melio has pushed Xero further into payments, particularly in the United States, while the company has also launched integrated payroll through Gusto. That means this ASX growth share can increasingly sit across accounting, payments, and payroll rather than solving only one part of a small business owner’s financial life.

I think that could make the platform more valuable to customers and give Xero more ways to grow revenue from the businesses already using it.

The US is particularly important here. It remains a much less mature market for Xero than Australia or New Zealand, so successfully bringing these services together could significantly expand the company’s opportunity.

What about AI?

AI is often presented as a threat to accounting software because it could automate tasks that users currently rely on platforms like Xero to perform.

But Xero is investing heavily in the same technology. Its Just Ask Xero (JAX) platform is designed to automate financial workflows and provide insights to small businesses and accountants, while Xero has also integrated with tools such as Anthropic’s Claude.

For me, AI could ultimately make financial software stronger if it allows customers to do more with the information already sitting inside the platform.

Xero now serves around 5 million customers globally, giving it an enormous base from which to introduce those capabilities.

Is the business still growing?

Importantly, the share price decline has not been accompanied by a collapse in the underlying business.

FY26 operating revenue increased 31% on a headline basis and 21% organically, while adjusted EBITDA increased 18%, or 30% organically, despite the investment associated with Melio.

That does not mean the risks have disappeared.

Xero still needs to integrate Melio successfully, prove it can gain ground in the US, and show that AI strengthens rather than undermines its competitive position.

But those are very different concerns from a business whose growth story has simply run out.

Foolish takeaway

After such a steep fall, I think this ASX growth share deserves another look.

The share price is telling a much more pessimistic story than it was a year ago, while the company is expanding the role it can play for small businesses.

If Xero can turn payments, payroll, and AI into meaningful new growth engines, I think today’s price could look surprisingly cheap several years from now.

Because of this, I would be willing to buy and give that strategy time to develop.

The post Down 60%, is this ASX growth share now too cheap to ignore? appeared first on The Motley Fool Australia.

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• Codan vs Xero: Which ASX tech stock is the better buy in October?

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