The Aussie share market is having a strong session on Wednesday.

The S&P/ASX 200 Index (ASX: XJO) is currently up 0.96% to around 8,792 points after climbing as high as 8,797 points earlier today.

That puts the benchmark at its highest level in around 3 weeks and has it knocking on the door of 8,800 points again.

There’s plenty of buying across the market as well.

At the latest check, 149 shares were trading higher, compared with just 44 in the red and 7 unchanged.

But what I find interesting is where the rally has come from.

Wall Street didn’t give the local market much to work with overnight, with the Dow Jones Industrial Average Index (DJX: .DJI), S&P 500 Index (SP: .INX), and Nasdaq Composite Index (NASDAQ: .IXIC) all finishing slightly lower.

Instead, it appears investors have found something to like much closer to home.

Inflation comes in below expectations

The big move higher came shortly after the latest inflation figures landed at 11:30am AEST.

The Australian Bureau of Statistics (ABS) revealed that the Consumer Price Index (CPI) rose 4% over the 12 months to August.

That’s up from 3.5% in July and is the highest annual inflation rate since May 2024.

But there was some better news in the numbers.

Economists had been expecting headline inflation to come in at 4.1%, while prices rose 0.4% during August.

That compares with the 0.5% increase economists had predicted.

Underlying inflation was also slightly softer.

The trimmed mean CPI rose 0.2% for the month, below forecasts for a 0.3% increase, while the annual rate remained at 3.6%.

And that was enough to get investors buying.

Bond yields moved lower following the release.

Traders also scaled back expectations for another interest rate hike in November.

That comes just one day after the Reserve Bank of Australia (RBA) lifted the cash rate by 25 basis points to 4.6%.

ASX shares rally

The shift in interest rate expectations has helped lift shares across much of the market.

Northern Star Resources Ltd (ASX: NST) is leading the way, with its shares up 6.74% to $24.86.

The gold miner is rallying amid reports that Gold Fields could return with an improved takeover offer after its initial proposal was rejected.

REA Group Ltd (ASX: REA) shares are also having a good day, climbing 4.55% to $155.57 after receiving a broker upgrade from Bell Potter.

Elsewhere, Goodman Group (ASX: GMG) shares are up 2.92% to $26.94, while Wesfarmers Ltd (ASX: WES) shares have gained 2.82% to $76.45.

The big miners are also helping push the index higher.

BHP Group Ltd (ASX: BHP) shares are up 0.9% to $61.18, while Rio Tinto Ltd (ASX: RIO) shares have added 0.95% to $165.93.

The post Why has the ASX 200 jumped to its highest level in 3 weeks? appeared first on The Motley Fool Australia.

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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 Goodman Group and Wesfarmers. The Motley Fool Australia has recommended BHP Group, Goodman Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There aren’t many S&P/ASX 200 Index (ASX: XJO) shares that have been hit harder than WiseTech Global Ltd (ASX: WTC).

The WiseTech share price is currently trading around $33 a pop, leaving it down almost 20% over the past month.

Zoom out further, and things look much worse, with the logistics software company’s shares losing more than 60% over the past 12 months.

But at these levels, I think the market has gone too far.

In fact, I believe WiseTech is now one of the most undervalued growth stocks on the ASX 200.

And I’m becoming increasingly bullish on where its shares could go from here.

Look beyond the share price

It’s easy to look at WiseTech’s chart and assume something has gone seriously wrong with the business.

But its FY26 numbers tell a very different story.

Revenue jumped 79% to US$1.396 billion, while underlying EBITDA increased 56% to US$644.5 million.

CargoWise remains the part of the business that excites me most.

Revenue from the platform increased 11% to US$756.9 million in FY26, while customer attrition remains extremely low.

WiseTech also has more large global freight forwarders moving onto CargoWise, giving the company another long runway for growth.

That makes the current valuation much more interesting to me than it was when the shares were trading above $100.

The next chapter could be much bigger

But I don’t think investors should value WiseTech purely on what it earned last year.

The acquisition of e2open has dramatically increased the company’s size and created another major opportunity to improve margins.

WiseTech has already been cutting costs across the combined business, while its growing use of AI could drive further efficiencies.

The company is targeting FY27 revenue of US$1.48 billion to US$1.54 billion and underlying EBITDA of US$725 million to US$780 million.

That implies underlying EBITDA growth of roughly 12% to 21%, with margins expected to reach 49% to 51%.

Meanwhile, leverage is expected to fall to around 2.2 times by the end of FY27 and below 2 times in FY28.

Put those pieces together, and I think WiseTech could emerge from this period as a considerably larger and more profitable business.

Would I buy WiseTech shares?

Absolutely.

The market is currently treating WiseTech like its best days are behind it.

I think the opposite could prove true.

CargoWise remains an outstanding global software platform, and margins have plenty of room to improve.

Yes, there are risks, particularly around integrating e2open and delivering its FY27 targets.

But with WiseTech shares around $33, I’m more interested in the potential reward.

I think this sell-off has created one of the most attractive growth opportunities on the ASX 200.

The post Is WiseTech the most undervalued growth stock on the ASX 200? appeared first on The Motley Fool Australia.

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• Should I invest $5,000 into WiseTech and Xero 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 WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL vs Pro Medicus shares: Which ASX healthcare stock should you buy in October?

When Aussie investors think “healthcare blue-chip”, CSL Ltd (ASX: CSL) probably springs to mind. But rapid-growing tech player Pro Medicus Ltd (ASX: PME) is making waves of its own. Both operate in the fast-evolving healthcare sector, but their businesses, fundamentals and shares shape up very differently. With October upon us, here’s how CSL and Pro Medicus compare for investment appeal right now.

The case for CSL

CSL is a long-established giant in global biotherapy and vaccine development, with more than a century under its belt. Its core business sprawls from treating rare diseases and producing vaccines, through to iron deficiency and kidney health, with operations in over 40 countries. CSL’s key divisions include CSL Behring (plasma therapies), Seqirus (vaccines), and Vifor (nephrology), making it a highly diversified healthcare operator.

Looking at the numbers, CSL boasts a massive $87.3 billion market cap, cementing its blue-chip status on the ASX. Its price/earnings (P/E) ratio sits at 18.12, considerably lower than many growth-focused healthcare peers. A dividend yield of 2.29% and a payout of $4.05 per share will appeal to income-minded investors, though notably, its dividends are currently unfranked. For 2026 to date, the shares have delivered a positive return of 4.8%.

Interestingly, CSL’s reported earnings per share (EPS) in this snapshot is negative (-5.35), which doesn’t mathematically square with a positive P/E ratio. Note: CSL’s reported P/E ratio may be based on a different earnings measure (e.g. underlying or forward earnings) than the EPS figure shown, which is why they may appear inconsistent.

The case for Pro Medicus

Pro Medicus is a healthcare technology company specialising in medical imaging software used by radiology clinics and hospitals. Its main products — advanced Radiology Information Systems (RIS) and Picture Archiving and Communication Systems (PACS) — help streamline image management and reporting for some of the world’s top medical centres, especially in the US. The company also offers workflow optimisation, network design, and training.

While much younger and nimbler than CSL, Pro Medicus has grown into a $16.94 billion company as of the latest data snapshot. Its valuation is rich: a P/E ratio of 63.49 reflects the high growth investors expect from healthcare tech disruptors. For dividend hunters, Pro Medicus pays out a much smaller (but fully franked) yield of 0.43%, with a dividend of $0.69 per share.

Notably, Pro Medicus has posted positive EPS (2.536), but its shares have struggled this year, dropping -26.8% year to date. That underperformance stands in sharp contrast to CSL’s modest gains.

Valuation comparison

Here’s how CSL and Pro Medicus compare on fundamentals, using the latest available numbers:

Metric	CSL	Pro Medicus
Market Cap	$87.30 billion	$16.94 billion
P/E Ratio	18.12	63.49
Dividend Yield	2.29% (Unfranked)	0.43% (100% Franked)
Dividend per Share	$4.05	$0.69
Year To Date Return	4.8%	-26.8%
Earnings per Share	-5.350	2.536

Note: CSL’s positive P/E and negative EPS figures may seem inconsistent; this could be because underlying or forward earnings have been used for the P/E.

Recent share price performance

Comparing recent share price action up to 28 September, here’s how their shares moved heading into October:

• As of 28 Sep 2026, CSL shares closed at $181.91, gaining 2.8% on the day and advancing 4.8% year to date.
• As of 28 Sep 2026, Pro Medicus shares ended at $162.15, rising 0.7% for the day but down sharply, by -26.8% year to date.

So while CSL has trended higher in 2026 so far, Pro Medicus has seen a notable pullback despite its earlier strong run.

Which is the better buy?

If I had to choose just one ASX healthcare share for October, my pick would be CSL. Here’s why: Despite a challenging couple of years, CSL offers the steadiness of a global leader with a long track record, a mid-range (for healthcare) P/E ratio, and a solid dividend yield — all with demonstrated year-to-date gains. Its scale, diversification, and staying power make it hard to look past, even allowing for some confusion around current reported earnings.

Pro Medicus is an exciting disruptor with unique tech and exposure to US healthcare, but its lofty valuation (P/E above 60) and steep share price slide this year make it tougher for me to justify at current prices. While Pro Medicus’ 100% franking is a perk, its yield is modest and its short-term momentum is firmly negative.

For a mix of quality, income and market resilience in the current environment, I think CSL stands out as the better buy for October.

The post CSL vs Pro Medicus: Which ASX healthcare share is better? appeared first on The Motley Fool Australia.

More reading

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• Experts name 3 popular ASX 200 shares to buy this week

Motley Fool contributor Laura Stewart 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 CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended CSL and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.