ASX 200 healthcare shares are up 23% in just over a month as value investors plough funds into beaten-down stocks like CSL Ltd (ASX: CSL) and Pro Medicus Ltd (ASX: PME).

The healthcare sector appeared to turn on 3 June when the S&P/ASX 200 Health Care Index (ASX: XHJ) hit a 9-year low following a 39% fall over 12 months. 

Many headwinds were at play for the healthcare sector in FY26.

They included the weaker US dollar; cost of living pressures; higher shipping and labour costs, and US regulatory uncertainty for the biotechs. 

Several major players in the healthcare sector lost significant market valuation in FY26.

They included Cochlear Ltd (ASX: COH) shares, down 59%, and CSL shares, down 52%

Resmed CDI (ASX: RMD) shares also fell 27%, and the Sonic Healthcare Ltd (ASX: SHL) share price dropped 22%. 

However, things seemed to have changed on 3 June.

ASX 200 healthcare shares have ripped 23% since then in a rapid rebound that has caught many investors by surprise.

Here are two ASX 200 healthcare shares that Bell Potter has speculative buy ratings on for FY27. 

4DMedical Ltd (ASX: 4DX)

This 4DMedical share price was in a league of its own in FY26, and the best performer of the entire ASX 200 for capital growth.

The ASX 200 healthcare share skyrocketed 1,786% in FY26 to close out the year at $4.53. Since the healthcare sector turned on 3 June, 4DMedical shares have gained 15%. 

The respiratory imaging technology company gained US Food and Drug Administration (FDA) approval for its CT:VQ product in September 2025. 

CT:VQ is the world’s first non‑contrast post‑processing technology that transforms routine chest CTs into quantitative, lobar ventilation (V) and perfusion (Q) maps.

Since approval, the technology has been deployed at several renowned academic hospitals and clinics.

Bell Potter has a speculative buy rating on 4DMedical shares.

Last week, the broker raised its 12-month target price from $4.50 to $6. This suggests more than 35% upside ahead. 

In a note, the broker discussed 4DMedical’s launch of CLEAR (Contrast-free Lung Evaluation for Acute Risk in pulmonary embolism (P/E)).

CLEAR is a clinical evidence program designed to fast-track CT:VQ into the US$2.5 billion acute PE market in the US.

Pulmonary embolism is a major acute cardiovascular condition.

The broker said:

The CLEAR study is essential to accelerate adoption of CTVQ in front line emergency departments and for inpatient use.

The broker added:

4D Medical is not required to seek further FDA approval or a label expansion to the current 510K approval, however, the clinical data from the CLEAR study will provide the necessary evidence to further support broad adoption for diagnosis of PE.

Mesoblast Ltd (ASX: MSB) 

The Mesoblast share price rose by a very respectable 18% in FY26 to finish at $1.96 on 30 June. 

Bell Potter reiterated its speculative buy rating last week with an unchanged target of $4.45. 

This implies the Mesoblast share price could more than double over the next 12 months. 

The broker said: 

The key overhang on the stock remains clinical trial risk with three massive valuation events over the next 18 months being adult GvHD, back pain and the BLA approval for the first indication in HF.

None of these are priced in.

Looking ahead, the broker said:

The recent clinical trial fail by Cynata and its MSC in adult GvHD highlights yet again the risks involved in drug development.

MSB will shortly enrol the first of 180 patients in its randomised, controlled, double blind label expansion study for Ryoncil, also in adult GvHD, albeit with risk of failure mitigated by numerous factors.

These factors include a tried and tested potency assay, more aggressive dose (up to 300% higher than the Cynata product) and a 2nd line patient population that has progressed following steroid therapy.

The post 2 ASX 200 healthcare shares to buy after sector rebounds 23% in a month appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Healthcare shares lead the ASX 200 again as sector rotation gathers pace
• ASX shares vs. property in FY26: Which investment outperformed?
• Top ASX 200 share of each market sector in FY26
• 5 best-performing ASX 200 shares of FY26

Motley Fool contributor Bronwyn Allen 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 and Cochlear. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended CSL, Cochlear, Pro Medicus, and Sonic Healthcare. 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 enjoyed a strong year of outperformance in 2026.

On Monday afternoon, shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant were swapping hands for $39.16 apiece. That sees the share price up an impressive 33.1% year to date, smashing the 1.1% gains delivered by the benchmark index over this same time.

Atop those capital gains, Woolies stock is also popular with passive income investors for the company’s fully franked dividend payouts.

If you owned Woolworths shares at market close on 24 February, you would have received the fully franked 45 cents per share interim dividend on 16 April. (The stock traded ex-dividend on 25 February.)

But with the ASX 200 stock having surged since plumbing multi-year closing lows in October, is it still a good buy for passive income today?

Should I buy Woolworths shares for passive income?

Shaw and Partners’ James Bills recently ran his slide rule over Woolies stock (courtesy of The Bull). And he expressed concerns over rising costs and competition in the sector.

“Woolworths is facing increasing competitive pressure in the supermarket sector, along with possible margin compression driven by higher operating and supply chain costs,” he said.

“While the share price has made a notable recovery since October 2025, the outlook is challenging given increasing cost of living pressures among price sensitive shoppers,” Bills added.

And following on the strong share price gains, Bills didn’t sound particularly enthusiastic about the stock’s passive income status, with Woolies now trading on a 2.3% fully franked trailing dividend yield.

Summarising his sell recommendation on Woolworths shares, he concluded, “With a relatively modest dividend yield and limited short-term catalysts, it may be prudent to reduce exposure and redeploy capital into opportunities with stronger growth prospects.”

And he offered another ASX passive income share investors may wish to consider instead.

This ASX passive income share has a 6.2% dividend yield

While recommending selling Woolworths shares, Bills issued a buy recommendation on listed investment company (LIC) Hearts and Minds Investments Ltd (ASX: HM1).

“HM1 offers investors access to a concentrated portfolio of high conviction global equity ideas sourced from leading fund managers across the world,” he said.

With the LIC not charging investment fees and instead donating to Australian medical research organisations, Bills added, “The unique structure, combined with its philanthropic component, has attracted some of the industry’s top investors, enhancing the quality of stock selection.”

On the passive income front, he said, “The portfolio is tilted towards innovative, growth-oriented companies with long-term upside potential. It also pays a fully franked dividend.”

At Monday’s intraday share price of $3.01, Hearts and Minds shares trade on a 6.2% fully franked trailing dividend yield.

Summarising his buy recommendation on the ASX dividend share, Bills concluded:

HM1 was recently trading at a discount to net tangible assets. In our view, the company provides an appealing entry point for investors seeking exposure to global growth themes with strong management backing.

The post Up 33%, are Woolworths shares still a good buy for passive income? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Pro Medicus, BHP, Woolworths shares
• Top ASX 200 share of each market sector in FY26
• What type of shares should I buy for a self-managed superannuation fund?
• 2 ASX shares with dividend yields above 10%
• Three perfect retirement dividend shares offering 5% yields or higher 

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.

Investors buy ASX 200 stocks for their reliable track record and long-term potential. Sometimes they are perceived as having lower returns and lower volatility.

However, that isn’t always the case. 

Occasionally, after heavy sell-offs, these quality companies can present significant upside. 

Right now, two that fit that criteria are PEXA Group Ltd (ASX: PXA) and Netwealth Group Ltd (ASX: NWL). 

Both ASX 200 stocks have fallen significantly over the last 12 months and are now drawing very positive ratings from brokers. 

Experts are tipping these ASX 200 shares to rebound more than 100% in the next year. 

Here’s what brokers are saying. 

PEXA Group Ltd (ASX: PXA)

PEXA provides a digital conveyancing platform for real estate settlements in Australia. The company touts itself as offering world-first technology that facilitates near real-time tracking of settlements and faster clearance of funds.

The company derives its revenue by charging fees to conduct property transactions over its network. Its digital process is recognised in the industry as speeding settlements, reducing the risk of manual errors, and alleviating settlement delays.

Over the past 12 months, its share price has fallen almost 32%. 

It closed trading yesterday at approximately $8.73 per share. 

However a new note out of the team at Macquarie indicates now could be the time for savvy investors to buy in at a bargain price. 

The broker said property settlements in New South Wales rose 3.1% in June from the corresponding period a year earlier, rebounding after a soft May.

Macquarie lifted its price target on the company to $19.30 from $19.05. 

From yesterday’s closing price, this indicates an upside potential of 121%. 

Netwealth Group Ltd (ASX: NWL)

Netwealth Group is another ASX 200 stock investors should be monitoring. It is a financial services and technology company that provides a wide range of products and services to the Australian financial investment industry, including cloud-based investment administration software-as-a-service (SaaS), a retail superannuation fund, and an administration business.

In the last 12 months, this ASX 200 stock has fallen 34%. 

It closed trading yesterday at $22.89 per share. 

However, the team at Bell Potter is optimistic this will rise in the next 12 months. 

The broker has retained its buy rating and $30.00 price target on Netwealth’s shares. 

This indicates 31% upside potential for this ASX 200 stock. 

Bell Potter said this ASX 200 stock is well positioned ahead of its 16 July trading update, with the June quarter’s strong rebound in global equity markets expected to drive a material uplift in funds under administration through positive market movements. 

The broker said Netwealth offers the strongest and most direct leverage to rising markets among the platform providers it covers, reinforcing its positive view on the stock.

 

The post 2 ASX 200 stocks that could rise 31% and 121% appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 10 of the best ASX shares to buy in FY 2027
• Three ASX 200 companies Macquarie says are a buy right now
• PEXA Group responds to IPART draft service fee review
• Why this ASX 200 share could deliver a 40% return

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