Westpac Banking Corp (ASX: WBC) shares have climbed into the green in Tuesday lunchtime trade.

At the time of writing, the ASX banking giant’s share price is up around 0.5% and changing hands at $35.36 a piece.

The increase is good news for investors after the ASX bank stock hit a 10-month low of $34.50 nearly two weeks ago.

But there is still a long way to go before Westpac shares recover losses shed over the past couple of months. Even after today’s uptick, the shares are still down around 9% for the year to date and are 17% lower than an all-time high recorded in early April.

For context, the S&P/ASX 200 Index (ASX: XJO) is down around 0.1% at the time of writing, but is around 1% higher for the year to date.

What has happened to Westpac shares recently?

Westpac posted a solid first-half result in early May. Westpac’s statutory net profit was 3% higher year on year but 5% lower compared to the second half of FY25. Its total lending and deposit growth also climbed 7% year on year.

There was a brief share price uptick after the result was announced, but then investor sentiment reversed, and the sell-off resumed. 

Confidence about the outlook for Westpac remains low, and broad bank-sector weakness has also helped pull its share price lower. 

The bank’s shares came under even more selling pressure last month after a court ruling weighed on sentiment. The ruling related to ongoing compliance risk at the bank. 

The good news is that the Reserve Bank’s latest interest rate hold decision has alleviated some pressure for Westpac this month. Westpac is the most mortgage-exposed of the big four bank shares, with approximately 69% of its loan book in residential mortgages. 

But, it looks like the reprieve is only temporary. The bank’s own economists do expect the cash rate to begin rising again in late 2026.

The question now is, if you own Westpac shares, what should you do with them?

Should you sell up ahead before the share price falls again? Hold tight and wait it out? Or buy more in the dip?

Here’s what the experts think.

Are Westpac shares a buy, sell, or hold?

It’s clear that, even after the latest declines, the market still considers Westpac shares as overpriced and above fair value.

Market Index data shows that the majority of brokers have a strong sell rating on the banking giant’s shares. The $32.96 average target price implies a potential 7% downside at the time of writing.

TradingView data also shows that the majority (nine out of 16) have a sell or strong sell rating on the shares. The average $33.48 target price implies a potential 6% downside at the time of writing. However, some expect Westpac’s shares to fall up to 17% to $29.41 over the next 12 months.

Christopher Watt from Bell Potter Securities is one broker with a sell rating on this ASX bank share. 

He said that while the business is improving on the metrics that matter, the operating backdrop is weakening. He added that mortgage applications are down, and proposed tax and negative gearing changes have soured sentiment. With the stock trading near the top of its range, Watt sees more downside than upside ahead for Westpac shares.

My view of Westpac shares

I think that continued competition in the mortgage market, the uncertain outlook for cash rate movements, and dwindling analysts’ confidence point to more downside ahead.

I’m not sure I’d sell up just yet, but I certainly wouldn’t be adding more Westpac shares to my portfolio without some visibility of a potential turnaround ahead.

The post Down 17%: What should I do with my Westpac shares now? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: JB Hi-Fi, Westpac, Santos shares
• Why CSL, Westpac, and this big-name ASX 200 share could be sells
• Invested in ASX 200 bank shares for dividends? This fundie prefers other stocks
• If I invest $8,000 in Westpac shares, how much passive income will I receive in 2027?
• Why has the ASX 200 given up its early rebound today?

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 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 big name ASX shares have been under significant pressure over the past 12 months.

While this is disappointing for shareholders, it could have created a buying opportunity for others.

Let’s now look at three cheap ASX shares that could be hiding in plain sight:

CSL Ltd (ASX: CSL)

CSL is one of the most interesting cheap ASX blue-chip ideas on the market.

The biotech giant has had a difficult period, with investors losing confidence in its earnings outlook and growth profile.

That has left the share price trading at levels that would have seemed hard to imagine a few years ago.

But I think CSL remains interesting because its business has been built on foundations that competitors cannot quickly copy.

Its plasma operations require collection centres, specialist manufacturing, strict regulatory approvals, and deep relationships with healthcare systems. Those foundations take years to develop and give the company a level of scale that remains difficult to replicate.

If execution improves and confidence returns, the selloff could eventually look like an attractive entry point into a business with genuine global scale.

Treasury Wine Estates Ltd (ASX: TWE)

Another cheap ASX share that could be worth watching is Treasury Wine Estates.

The wine company has been through a rough period as investors have questioned demand, margins, inventory levels, and its growth outlook.

That pressure has weighed heavily on sentiment. However, Treasury Wine still owns a portfolio of wine brands with value in key markets. Its investment case is tied to brand strength, distribution, pricing power, and the ability to capture demand for premium wine over time.

This is a business where confidence can change meaningfully if trading conditions stabilise.

There are risks, especially around consumer demand and execution. But when investors turn against a branded consumer company, the share price can sometimes fall further than the long-term fundamentals justify.

If Treasury Wine can show that its premium portfolio still has earnings power, the current weakness could prove to be a compelling opportunity.

WiseTech Global Ltd (ASX: WTC)

A third cheap ASX share to consider is WiseTech.

The logistics software company has fallen heavily from its highs, leaving it trading at a fraction of the valuation the market was once willing to pay. In fact, its shares hit a multi-year low of $29.48 on Tuesday.

A good portion of this decline comes from concerns over allegations relating to its founder Richard White.

But if you look beyond the leadership uncertainty, WiseTech is a high-quality business with a strong offering.

Its CargoWise platform helps freight forwarders and logistics operators manage the complexity of global trade.

That includes customs, documentation, compliance, shipment management, invoicing, and cross-border workflows.

The business solves a difficult problem in a large global industry. Logistics is complex, fragmented, and full of manual processes, which gives software a meaningful role to play.

If WiseTech can rebuild confidence and move on from its founder concerns, its share price could have significant recovery potential.

The post 3 cheap ASX shares that could be hiding in plain sight appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, Calix, CSL, and Ioneer shares are charging higher today
• Down 53%, is it time to throw in the towel on CSL shares?
• WiseTech shares rebound 5%, responds to media reports: Is it time for investors to buy back in?
• Should I buy CSL and ResMed shares right now?
• WiseTech shares just crashed. Can investors look past the company’s governance issues?

Motley Fool contributor James Mickleboro has positions in CSL, Treasury Wine Estates, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Treasury Wine Estates, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates and WiseTech Global. 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.

Xero Ltd (ASX: XRO) shares are having another tough session on Tuesday as selling pressure continues to build on the ASX 200 tech stock.

At the time of writing, the Xero share price is down 3.19% to $66.43. By comparison, the S&P/ASX All Technology Index (ASX: XTX) is 1.14% lower to 2,891 points.

Earlier in the session, Xero shares fell as low as $66.30. That puts the stock around levels last seen during the early stages of the COVID market sell-off in March 2020.

It has been a brutal run for shareholders. Xero shares are now down more than 40% since the start of 2026 and around 65% lower than this time last year.

Why Xero shares are being sold off

There hasn’t been any new price-sensitive announcement from Xero today.

Instead, the latest fall looks to be part of the wider sell-off in tech shares, with growth stocks still out of favour.

Xero is still one of the biggest software names on the ASX, but the market is clearly not willing to pay the same price it once did.

That comes as investors focus more closely on earnings, margins, and how much companies are spending to grow.

Xero’s latest result showed another year of strong revenue growth. However, lower statutory profit, acquisition costs, and the Melio deal have given the market more to think about.

The business is still growing

Keep in mind, the sell-off doesn’t mean Xero has stopped growing.

In its FY26 result, Xero reported operating revenue of NZ$2.8 billion, up 31% on the prior year. Excluding Melio, organic revenue growth was 21%.

Its customer base also increased 11% to 4.92 million, with the company adding 506,000 net customers during the year.

Adjusted EBITDA rose 18% to NZ$757.4 million, while free cash flow came in at NZ$554 million.

Xero is also putting more focus on artificial intelligence (AI) and automation. This includes adding AI features to its platform and partnering with Anthropic to bring Claude into Xero.

Can the Xero share price recover from here?

The biggest question now is whether the share price fall has gone too far.

Xero is still growing revenue, adding customers, and producing free cash flow. The company has also guided to adjusted EBITDA of NZ$860 million to NZ$920 million in FY27.

However, the market still has a few reasons to be cautious.

The Melio deal still needs time, and the market may not be ready to pay up for software stocks just yet.

The post Xero shares just crashed to COVID-era lows. Is this ASX 200 tech stock broken? appeared first on The Motley Fool Australia.

More reading

• The ASX investing strategy that could quietly make you rich
• Down but not out: 3 ASX tech shares ripe for a rebound
• How to build an ASX share portfolio that can survive a market selloff
• Forget CBA: 3 ASX shares with better growth prospects
• If the ASX 200 rallies in the back half of the year these sectors could be portfolio winners

Motley Fool contributor Aaron Teboneras 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.