Just when it looked like Xero shares might finally find some support, the selling has continued on Friday.

Xero Ltd (ASX: XRO) shares are currently down 3.21% to $57.125, having fallen as low as $56.22 earlier in the session.

That leaves the stock trading around 64% below its value 12 months ago and almost 50% lower in 2026.

And yet, I’m becoming increasingly bullish.

While the share price suggests something has gone terribly wrong, Xero’s underlying business continues to deliver impressive growth.

At these levels, I think investors could be looking at an excellent long-term buying opportunity.

Here’s why.

Xero’s business is still growing

Looking at Xero’s latest financial results, you’d be forgiven for wondering why its shares have fallen so far.

According to its FY26 results, operating revenue increased 31% to NZ$2.75 billion, while adjusted EBITDA climbed 18% to NZ$757.4 million.

The company also added 506,000 customers, taking its global customer base to 4.92 million.

Annualised monthly recurring revenue jumped 37% to NZ$3.27 billion, while free cash flow reached NZ$554 million.

Those are impressive numbers, particularly when you consider what’s happened to the share price.

Admittedly, net profit declined 27% to NZ$167.4 million, with acquisition-related costs weighing on earnings.

But I’m far more interested in where the business is heading over the next few years.

Management expects FY27 revenue of NZ$3.62 billion to NZ$3.73 billion, alongside adjusted EBITDA of NZ$860 million to NZ$920 million.

That’s another substantial increase in revenue, and a good indication that Xero’s growth story is far from over.

Why I’m bullish on Xero shares

I think investors are overlooking just how much growth Xero still has ahead of it.

The company has previously estimated its addressable market at approximately 100 million small and medium-sized businesses worldwide.

With fewer than 5 million customers today, there’s still an enormous opportunity to expand.

And it’s not just about attracting more subscribers.

Its acquisition of Melio gives Xero a stronger position in the US payments market, opening up another opportunity to grow revenue beyond accounting subscriptions.

I also think AI could make Xero’s platform more valuable over time by automating more of the financial tasks involved in running a small business.

The company already has an established platform, millions of customers, and access to valuable financial data.

With revenue expected to grow by around 30% in FY27, I think the market is seriously underestimating Xero’s long-term potential.

All in all, I see an excellent opportunity to buy a high-quality growth business at attractive levels.

The post Xero shares have crashed 64%. Here’s why I’m buying appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares have lost 49%+ in 2026. Are any now bargains?
• Xero vs Life360: Which ASX tech share has more upside?
• Down 5% today to a 7-year low: What is going on with Xero shares?
• Should I invest $5,000 into WiseTech and Xero shares?
• How to build a $50,000 passive income from ASX shares

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.

Woolworths Group Ltd (ASX: WOW) shares have stormed higher through the first nine months of 2026.

At the time of writing on Friday afternoon, the shares are trading in the green, up around 1% to $38.51. 

The latest increase means the shares are now up an impressive 31% for the year to date, and they’re 44% higher than 12 months ago.

The increase has been pretty stable and consistent, too.

The supermarket giant’s stock has mostly trended upwards (with the exception of a dip in late April and a recovery a month later).

It looks like the growing share price is mostly driven by investor confidence that the company’s turnaround story is coming to fruition, after a difficult period in 2025.

The supermarket’s most recent price-sensitive news was the announcement of its impressive FY26 results in late August. It posted a 3.6% year-on-year increase in sales and a 6.7% increase in EBITDA (before significant items). On the bottom line, Woolworths achieved a 15.4% increase in its NPAT (before significant items) for the year.

As part of its FY26 results announcement, management declared a 52-cent per share dividend, up 15.6% from FY25.

It’s been tailwind after tailwind for Woolworths shares this year. Now the question is, is there any more upside left? Or has the ASX consumer staples stock finally reached a ceiling?

Buy, hold, or sell? Here’s what brokers forecast for Woolworths shares

The experts are divided.

Market Index data shows that brokers are split equally between a hold and a sell rating. The $37.57 average target price implies a potential 2% downside ahead.

On TradingView, the majority of analysts (nine out of 17) have a hold rating on the shares. Another six rate Woolworths shares are a sell/strong sell and two rate them as a buy.

The $39.67 average target price implies a potential 3% upside ahead. Although the range between the maximum and minimum is quite wide. Some tip the shares to fall 8% to $35.40, and others think they would increase 13% to $43.50, at the time of writing.

Shaw and Partners has a sell rating on Woolworths shares. The broker warns that the shares could struggle to outperform over coming months. It adds that the supermarket has experienced a strong recovery in the past year, and now much of the recent improvement is reflected in the share price.

Elsewhere, Bell Potter is more positive. The broker has a hold rating on Woolworths shares and a $42.35 target price. It was impressed with the company’s latest FY26 results but doesn’t think potential growth is high enough to warrant a buy rating.

Morgans has an accumulate rating and $43.50 target price. Following the supermarket’s results, the broker is more confident that its sales growth can be sustained.

The post Woolworths shares jump 31% in 2026. Is there any upside left? appeared first on The Motley Fool Australia.

More reading

• Here are the most popular ASX share superannuation investments in SMSFs
• Is the Woolworths share price a buy in September?
• How to build a $50,000 passive income from ASX shares
• Why these ASX dividend shares could be buys for passive income
• 5 ASX shares I’d recommend to beginners

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.

S&P/ASX 200 Index (ASX: XJO) gold stocks are getting ready to turn the calendar page on a tough month.

Indeed, while the ASX 200 has slumped 5.6% since market close on 25 August, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller miners outside of ASX 200 gold stocks – is down as steeper 8.3%.

Although most gold stocks have still strongly outperformed over the past full year, with the All Ords Gold Index still up 22.1% in 12 months, compared to the 1.4% one-year losses posted by the ASX 200.

As for the three big Aussie gold miners I’d buy today, Newmont Corp (ASX: NEM) shares are down 8% in a month and up 45.3% in a year, while Evolution Mining Ltd (ASX: EVN) shares are down 13.9% in a month and up 33.2% in a year.

It’s a bit of a different picture for Northern Star Resources Ltd (ASX: NST) shares, which are down 9.5% in a month and also down 2% in a year.

As you may know, Northern Star has faced some difficulties on and below the ground this year. Those include lower grades at some of its mines as well as lower overall gold production for FY 2026.

But I believe the miner’s recent capex spend is set to pay off in FY 2027 and 2028, which should see a notable improvement in the share price performance.

What’s been pressuring the ASX 200 gold stocks?

The common headwind pressuring Northern Star, Newmont, and Evolution Mining shares over the past month has been a sharp retrace in the gold price.

Trading for US$4,294 per ounce today, the gold price is down 7.7% since 25 August.

The gold price is now also down around 21% from its record highs, posted on 28 January.

A lot of that fall can be pinned on the outbreak of the Iran war. The conflict has sent global energy prices surging, stoking inflation and pushing central banks, including the US Federal Reserve and the RBA, to increase interest rates. And gold, which pays no yield itself, tends to perform better in low or falling rate environments.

But the case for higher gold prices remains very much in play, which could usher in a big rebound for the recently beaten-down ASX 200 gold stocks.

What are the experts saying?

Hedge fund manager Raphael Lamm, who manages a long-short gold fund, expects that the falling gold price is likely to be short-lived.

Among the reasons Lamm expects a rebound in the price of bullion, which would also support ASX 200 gold stocks, is the “unsustainability of fiscal situations in key markets,” with the United States government debt recently topping US$40 trillion.

According to Lamm (quoted by Bloomberg):

While there’s been some headwinds to gold markets and the gold price since the Iran war, we think they’re very temporary in nature. Most of the key drivers of demand for gold are going to remain intact or even strengthen over the medium term…

We started to increase our long positions relatively aggressively when the gold price got below $4,000, and now we’re keeping it where it is, which is in the low- to mid-60% net long.

The post Why I’d buy the dip in top ASX 200 gold stocks like Newmont, Northern Star and Evolution Mining shares today appeared first on The Motley Fool Australia.

More reading

• 5 ASX 200 shares upgraded by experts this week
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• $10,000 invested in Evolution Mining and Northern Star shares 3 years ago is now worth…

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 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.