Shares in junior technology company Stakk Ltd (ASX: SKK) rocketed almost 40% in early trade after it announced that the US Federal Bureau of Investigation would be using its signature verification technology.

Recent deal already paying dividends

Stakk recently merged with US company Parascript, which pushed its valuation past the $100 million mark,

The company said in a statement to the ASX on Tuesday that Parascript had been engaged to provide signature verification capabilities for the FBI.

The company added:

Stakk’s technology supports the assessment of physical signatures where authenticity or potential fraud is in question. The first phase of the FBI deployment is fully live. Work is now under way on a second phase that will add capabilities to locate and prepare reference signatures for the verification process.

Stakk said the commercial terms of the agreement were confidential, but it was expected to contribute meaningfully to the company’s FY27 revenue target, which is now expected to surpass $55 million.

The initial agreement runs until December 2027 and may auto-renew for subsequent 12-month terms thereafter.

The company said the agreement was a strong endorsement of its technology.

The engagement also establishes a live Law Enforcement deployment of Stakk’s technology. It demonstrates the relevance of the Group’s capabilities in a sector where the authenticity of signatures and documents can be critical and provides a foundation for Stakk to pursue further Law Enforcement opportunities. The need to establish authenticity extends across financial services, healthcare, insurance, telecommunications, and government. As AI-powered fraud grows more sophisticated, Stakk expects demand for these capabilities to increase. The Company sees opportunities with state and federal Law Enforcement agencies across the United States, as well as with agencies internationally.

Stakk Director Arthur Lo said the Parascript acquisition was already proving its worth, with the company providing services that were in demand across financial services, healthcare, government, law enforcement, and other regulated sectors.

He added:

As fraud grows more sophisticated, we see a substantial opportunity to bring these solutions to agencies in the United States and internationally. This engagement is a powerful example of why we recently brought the two businesses together.

Share price taking off

Stakk shares traded as high as 2.5 cents before settling back to be changing hands for 2.4 cents, up 33.3%.

The company was valued at $114.8 million at the close of trade on Monday.

Stakk said late last month that its $55 million revenue target for FY27 was already secured through recurring revenue under existing contracts.

The post Which ASX tech stock is up more than 30% after revealing a deal with the FBI? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has positions in Stakk. 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.

Ramsay Health Care Ltd (ASX: RHC) shares are edging lower today.

Shares in the S&P/ASX 200 Index (ASX: XJO) healthcare stock closed yesterday trading for $55.56. In morning trade on Tuesday, shares are changing hands for $55.49 apiece, down 0.1%.

For some context, the ASX 200 is up 0.2% at this same time.

Taking a step back, Ramsay Health Care shares have surged 75.9% since this time last year, smashing the 12-month 1.9% losses posted by the benchmark index.

And that’s not including the two fully-franked dividends, totalling 91 cents a share that the ASX 200 healthcare stock paid out over the full year. At the current share price, Ramsay Healthcare trades on a fully-franked trailing dividend yield of 1.6%.

Despite that strong outperformance, Merlon Capital Partners co-portfolio manager Joey Mui believes the stock is still undervalued (courtesy of the Australian Financial Review).

Here’s why.

ASX 200 healthcare stock with further upside

Asked which stock his fund owns that’s most undervalued by the market, Mui pointed to private healthcare provider Ramsay Health Care.

“We believe Ramsay is still significantly undervalued,” he said.

Explaining his bullish outlook on the resurgent ASX 200 healthcare stock, Mui said:

The market has been cautious about its ability to offset inflation, but we see a strong opportunity to lift margins – through higher theatre utilisation, a better mix of specialities, and cost indexation from insurers. The new management team under Natalie Davis is executing on these strategies well.

What’s the latest from Ramsay Health Care?

Ramsay Health Care shares closed up a blistering 13.7% on 27 August, following the release of the company’s full-year FY 2026 results.

For the 12 months to 30 June, the ASX 200 healthcare stock reported underlying earnings before tax (EBIT) of $1.16 billion, up 11.5% year on year.

And on the bottom line, Ramsay achieved an underlying net profit after tax (NPAT) of $364 million, up 19.3% from FY 2025.

Commenting on the strong results, Ramsay Health Care CEO and managing director Natalie Davis said, “FY26 was a year of continued improvement and delivery for Ramsay, with group underlying NPAT up 23% (in constant currency) year-on-year, all regions delivering EBIT growth, high patient NPS and clinical excellence across the group.”

Looking to what’s ahead for the company in FY 2027, Davis added:

We will continue to build on Ramsay’s clinical excellence in Australia for the benefit of our patients, by investing in clinical innovation and connecting hospital and healthcare services in our priority therapeutic areas – cardiology, orthopaedics and cancer care, to be Australia’s most trusted leading healthcare provider and to grow long-term shareholder value.

The post Expert names ‘undervalued’ ASX 200 healthcare stock to buy today 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 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.

October is almost here, and National Australia Bank Ltd (ASX: NAB) is one ASX bank share I would be happy to buy.

With NAB shares trading around $39.13, I think there is a solid case for adding them to a portfolio next month. Here is why.

A solid earnings outlook

I would not expect explosive growth from NAB. Consensus forecasts point to earnings per share (EPS) of $2.38 in FY26, rising to $2.54 in FY27.

At today’s share price, that values NAB on a PE ratio of around 16 times FY26 earnings and just over 15 times FY27 earnings.

I think that is a reasonable price for one of Australia’s largest banks, particularly given NAB’s strong position in business banking.

That part of the company is one of the main reasons I like it. Australian businesses need banking services across lending, payments, deposits, and other areas, giving NAB another avenue for earnings beyond the highly competitive mortgage market.

What could higher interest rates mean?

The prospect of further Reserve Bank of Australia interest rate rises complicates the outlook somewhat.

Higher rates can be positive for banks if they allow lending rates to rise in a way that supports net interest margins, which measure the difference between what a bank earns on loans and pays for its funding.

But there is another side to that equation.

Higher borrowing costs put more pressure on households and businesses. If rates climb too far, credit growth could slow, customers may become more cautious about taking on debt, and bad debts could eventually increase.

Competition also plays a role. Banks cannot simply assume that every increase in the cash rate will translate into better margins when they are competing for both borrowers and deposits.

For me, that means another RBA rate rise would not automatically strengthen the NAB investment case.

I would instead focus on how the bank manages margins, credit quality, and lending growth through the changing rate environment.

The dividend adds to the case

Passive income is another reason investors may be interested in NAB shares.

Consensus forecasts point to fully franked dividends of $1.70 per share in FY26 and $1.72 in FY27.

At $39.13, the FY26 forecast represents a dividend yield of around 4.3%, before including the benefit of franking credits.

The expected increase in FY27 is small, but the important point for me is that analysts currently expect the dividend to remain well supported with manageable payout ratios of around 71% and 68%.

Foolish takeaway

NAB is not the sort of share I would buy expecting spectacular growth over the next 12 months.

What I see instead is a major bank with a strong business banking franchise, a reasonable forward valuation, and a fully franked dividend that could provide an attractive income stream.

Interest rates could make the next year a little more complicated, particularly if borrowers come under greater pressure. But at around $39, I think there is enough in NAB’s favour for me to be comfortable adding the shares in October and holding them for the long term.

The post Why I’d buy NAB shares in October appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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.