While many international technology companies have enjoyed big gains in 2026 on the back of the AI buildout, ASX technology shares have struggled. 

Year-to-date, the S&P ASX All Technology Index (ASX: XTX) has fallen almost 20%. 

There have been a couple major headwinds that have put pressure on the sector. 

Higher interest rates and bond yields have impacted sentiment on future growth, while concerns about AI disrupting traditional software business models have also hit valuations. 

The sell-off has been amplified because many Australian tech stocks entered 2026 on relatively high valuations, so even companies reporting solid earnings growth have experienced sharp share-price declines.

However these factors have now created an enticing value opportunity for several ASX technology shares. 

Here are three worth considering. 

WiseTech Global Ltd (ASX: WTC)

WiseTech shares are currently trading near 52-week lows at around $31 per share. 

The company provides logistics software that aims to improve the world’s supply chains. WiseTech’s software solutions, including its flagship CargoWise One solution, are now used by the top 25 global freight forwarders, including Toll and DHL.

The share price is down a significant 68% in the last 12 months. 

However, there is reason to be optimistic. 

The bull case for a WiseTech bounceback is that the market may be underestimating the durability and profitability of CargoWise. 

Morgans currently has a price target of $62.50. 

That would be a 100% rise from current levels for the ASX technology stock. 

Xero Ltd (ASX: XRO)

Xero is another ASX technology stock that may have been oversold.

It offers cloud-based, accounting software for small to medium businesses. It is a subscription-based service offering monthly plans at various price points.

After being hit hard by AI replacement fears, it now sits at around $60 per share, down 60% from a year ago. 

Brokers targets are hovering around an average price of $111 per share. 

If this ASX technology stock were to reach this figure, it would be a rise of 85%. 

Betashares S&P ASX Australian Technology ETF (ASX: ATEC)

Another option for investors aiming to buy low on the Australian technology sector is this ASX ETF. 

It has fallen by 36% in the last 12 months.

The ETF provides exposure to leading ASX-listed companies across tech-related market segments such as information technology, consumer electronics, online retail, and medical technology.

It offers a more diversified option for investors looking to buy low, without having to pick individual bounce-back candidates. 

The post Do these ASX technology shares have too much upside to ignore? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Coles Group Ltd (ASX: COL) shares have a lengthy track record of paying two fully franked dividends a year.

But is the S&P/ASX 200 Index (ASX: XJO) supermarket giant a good buy for passive income today?

We’ll look at Catapult Wealth’s Dylan Evans recommendation below (courtesy of The Bull).

But first, a little background.

Atop the passive income on offer, Coles stock has outperformed in 2026.

On Monday, shares were changing hands for $23.07 each, up 8.1% year to date. That compares to the 0.1% loss posted by the ASX 200 this calendar year.

As for the latest round of passive income, when Coles released its FY 2026 results on 25 August, the company declared a fully franked final dividend of 37 cents per share. That’s an increase of 15.6% from the FY 2025 final Coles dividend.

If you held the stock at market close on 2 September, you can expect to see that income hit your bank account tomorrow, on 22 September.

Adding in the 41 cent per share interim dividend, paid on 30 March, and at the recent share price, Coles shares trade on a fully franked trailing dividend yield of 3.4%.

Which brings us back to…

Are Coles shares are good passive income buy?

“The supermarket industry structure remains favourable, with Coles and competitor Woolworths dominating market share,” Catapult Wealth’s Evans said.

Commenting on Coles FY 2026 results, he noted:

Coles posted group sales revenue of $45.580 billion in full year 2026, up 2.8 per cent on the prior corresponding period. Excluding significant items, group earnings before interest and tax of $2.322 billion was up 9.9 per cent. Supermarket eCommerce sales was a highlight, growing 26.4 per cent.

Summarising his buy recommendation on Coles shares, Evans concluded, “Coles offers a reliable dividend yield, backed by defensive earnings. Catalysts for growth include online expansion, population growth and supply chain automation.”

Bonus ASX 200 stock tip

Atop his buy recommendation on Coles shares, in part for the company’s reliable passive income payouts, Evans also issued a buy recommendation for Netwealth Group Ltd (ASX: NWL).

“Netwealth operates a leading investment management platform used by financial advisers in Australia,” he said.

As for his bullish outlook on the ASX 200 finance stock, Evans noted:

The company’s full year 2026 results continued to deliver strong growth, with the platform’s funds under administration increasing 20.3 per cent to $135.7 billion and earnings per share growing 16 per cent to 55.2 cents.

Despite these strong results, the share price has fallen significantly, most likely and partially in response to a compensation payout of about $101 million to members in the collapsed First Guardian Master Fund.

Share price weakness presents an opportunity, as Netwealth still holds a net cash position and is poised to generate strong revenue growth moving forward.

I’ll add that Netwealth also provides some passive income, with the ASX 200 stock trading on a 2.2% fully franked trailing dividend yield.

The post Should I buy Coles shares for passive income? appeared first on The Motley Fool Australia.

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

Treasury Wine Estates Ltd (ASX: TWE) investors have been strapped into quite the roller coaster. And the ride isn’t over yet.

After a brutal plunge over the past year, Treasury Wine shares have staged a sharp comeback. The ASX wine stock kicked off the new week around 4% higher at $5.36, pushing its six-month gain to roughly 50%.

Impressive stuff, until you zoom out. Over the past 12 months, Treasury Wine shares are still down about 28%.

So which is it: genuine turnaround, or a rebound that’s got ahead of itself?

A radical reset or a radical gamble?

The company’s June strategy reset is doing a lot of heavy lifting here. Treasury Wine is ripping up its old playbook, slashing its brand count from 76 down to fewer than 30 over five years and throwing its weight behind flagship label Penfolds.

The troubled Americas business is under review, and management is chasing roughly $100 million in annualised cost savings by FY29.

The stated goal: fatter margins, a simpler business, and capital funneled toward the brands that can actually move the needle. Treasury Wine is now targeting a long-term EBITS margin above 25%.

The market went wild for it, shares have jumped more than 25% since the day the reset strategy dropped. But strip away the enthusiasm, and there’s a much less comfortable story underneath.

Not so fast, this isn’t a turnaround yet

A share-price rally doesn’t magically erase the problems that caused the crash in the first place. Treasury Wine has already booked a further $558.4 million post-tax non-cash impairment on its US assets — a brutal reminder of just how badly the Americas business has gone off the rails.

FY27 is shaping up as a transition year for Treasury Wine shares, not a victory lap. The entire bull case hinges on management nailing a portfolio overhaul, fixing bloated inventory, actually banking those promised cost savings, and keeping Penfolds growing through it all.

That’s a lot of moving parts, and a lot can still go wrong. The uncomfortable read is that the recent rebound might just be the market getting ahead of itself, pricing in a turnaround before any of those benefits have actually shown up in the numbers.

What do the brokers think?

Analysts are warming up to Treasury Wine shares, but nobody’s fully sold. Morgans has a buy rating and a $7.30 target, recently lifted from $5.95. That suggests a 36% upside from current price levels.

Citi is bullish too, with a buy rating and $6.95 target. UBS sits more cautiously at hold with $6.50, and JPMorgan mirrors that with a $6.00 hold.

Across 16 analysts, the average target lands around $6.25, 17% above Treasury Wine’s current $5.36 price. On paper, that’s real upside if the transformation actually delivers.

Foolish takeaway

After one of the wildest years in Treasury Wine’s history, a 50% six-month rally isn’t proof of anything. It’s a promissory note. Brokers see potential for Treasury Wine shares, but potential and delivery are two very different things.

Until the wine company actually executes on cost cuts, inventory discipline and Penfolds growth, calling this a turnaround might be jumping the gun. Investors watching from the sidelines are right to want to see results before believing the story.

The post Treasury Wine shares: turnaround or trap? appeared first on The Motley Fool Australia.

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JPMorgan Chase is an advertising partner of Motley Fool Money. 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 JPMorgan Chase and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.