NextDC Ltd (ASX: NXT), Generation Development Group Ltd (ASX: GDG), and Fortescue Ltd (ASX: FMG) shares closed at fresh 52-week lows on Wednesday afternoon.

Here’s what has happened to the ASX shares, and what brokers expect next.

NextDC shares

NextDC shares dropped around 2% on Wednesday and closed the day at just $10.23 a piece. That’s the lowest close price the data centre operator’s shares have traded at since March 2023.

At one point in the late afternoon, the ASX shares even fell as low as $10.17 each. They’ve now crashed around 20% over the past month, and are down 17% for the year to date.

There hasn’t been any price-sensitive news out of the business to explain the latest sell-off. It’s likely that investors are still digesting the company’s disappointing FY26 results announcement in late August.

A higher interest rate environment and climbing inflation are also likely spooking investors and causing many to rotate towards more defensive assets. 

The good news is that NextDC’s offerings – being physical data centres, including cooling, power, and security – are expected to benefit from stronger demand as data usage increases.

NextDC may have tumbled to a new multi-year low, but if analyst forecasts are anything to go by, it could be an opportune time for investors to buy in the dip.

Market Index data shows all brokers have a strong buy rating on the shares. The average $20.79 target price implies an upside of around 103% at the time of writing.

Generation Development Group shares

Generation Development Group shares closed around 1% lower on Wednesday afternoon, at a two-year low of $2.65 a piece. The diversified financial services company’s shares have now fallen roughly 21% over the past month, and are down a huge 55% so far in 2026.

Like NextDC, there hasn’t been any price-sensitive news out of the company to explain the latest decline. Generation Development Group’s latest market update was its FY26 financial results in late August. 

The company posted a record 37% year-on-year increase in funds under management, and a 21% rise in underlying NPAT. Group revenue also climbed 23%. 

The sell-off is most likely the result of a broad-based rotation away from financial shares over the past month, amid a higher interest rate environment and sky-high bond yields.

But Generation Development Group thinks it is well-placed to benefit from strong structural tailwinds across superannuation, retirement, and managed account markets in FY27. 

Again, the experts are optimistic that the ASX shares can rebound from the latest slump. Market Index data shows that all brokers have a strong buy rating on the shares. The $5.62 average target price implies an upside of around 112% at the time of writing.

Fortescue shares

Fortescue shares also tumbled around 2.5% on Wednesday, closing at $16.01 a piece. That’s the lowest trading price the ASX iron ore stock has seen since June 2025. The shares have also fallen 10% over the past month and are down 28% year to date.

The shares have mostly been hit by headwinds from falling iron ore prices. The company generates substantial cash flow from its large iron ore operations, so rising iron ore prices are a tailwind and falling prices are a headwind for the miner. 

At the time of writing, iron ore is trading at around US$91 per tonne, according to Trading Economics data. That’s the lowest price the metal has experienced since November 2022.

It looks like the experts are concerned that there is room for the shares to stage a turnaround over the next 12 months. Unless there is a sharp turnaround in the price of iron ore, Fortescue shares may continue to be under pressure.

Market Index data shows that the majority of brokers have a hold rating on the shares. But after the latest slump, the $17.88 average target price still implies a potential 12% upside ahead.

The post NextDC, Generation Development, Fortescue shares hit 52-week low. Can they rebound? appeared first on The Motley Fool Australia.

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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 recommended Generation Development Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Some of the best long-term investments are businesses that can keep growing without having to reinvent themselves every few years.

They usually have strong competitive positions, plenty of room to grow, and the ability to reinvest profits at attractive returns.

With that in mind, here are three ASX shares that I think have many of the ingredients needed to compound shareholder wealth over time.

Life360 Inc (ASX: 360)

The first share is Life360. Its family safety app has become a big part of everyday life for millions of families, offering location sharing, driving reports, crash detection, emergency features, and a growing range of other services.

What I like about Life360 is how much more it could potentially get from the audience it has already built.

Most users access the platform for free, which gives the company a huge pool of people that could eventually move onto paid memberships. At the same time, Life360 can keep adding reasons for families to spend more through new services and higher-value subscriptions.

There is also a significant international opportunity. The US is its most developed market today, but there is no obvious reason why its overseas business couldn’t eventually become much larger.

If Life360 can keep growing its audience while getting better at monetising it, I think the company could be considerably bigger in a decade.

Pro Medicus Ltd (ASX: PME)

Another ASX share I think has excellent long-term prospects is Pro Medicus.

Its Visage imaging platform is used by major hospitals and healthcare groups, particularly in the United States, to manage and interpret huge volumes of medical images.

And those volumes aren’t standing still. Healthcare systems are performing more scans, while radiologists are being asked to deal with increasingly heavy workloads. Software that allows them to work faster and more efficiently is therefore becoming increasingly valuable.

This has helped Pro Medicus win a string of major contracts in the US, and I think there is plenty more market share available to take.

I also like the economics of the business. Once another customer comes onto Visage, Pro Medicus doesn’t need to build factories or hire thousands of employees to support the extra revenue.

That scalability means continued market share gains could translate into very strong profit growth over the long term.

WiseTech Global Ltd (ASX: WTC)

A final ASX share with the potential to compound for many years is WiseTech Global.

Its CargoWise platform helps freight forwarders and logistics companies manage everything from customs and warehousing to shipping, documentation, and compliance.

Global logistics is complicated, which works in WiseTech’s favour. Large customers can build CargoWise deep into their operations, and once that happens, replacing it isn’t necessarily a simple exercise. This gives WiseTech an opportunity to grow alongside its customers and gradually provide them with more functionality through the same platform.

The company has also spent heavily on expanding what CargoWise can do, both through internal development and acquisitions.

Governance concerns are worth highlighting, because poor governance can ultimately undermine even a very good business.

But if WiseTech can put those issues behind it and CargoWise continues becoming an increasingly important part of global logistics, I think the company could have a lot more growth ahead of it.

The post These 3 ASX shares have the ingredients of long-term compounders appeared first on The Motley Fool Australia.

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• Why I just invested $1,500 into this top ASX growth share

Motley Fool contributor James Mickleboro has positions in Life360, Pro Medicus, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360 and WiseTech Global. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Lottery Corporation vs Aristocrat Leisure shares

Many Aussie investors might find themselves weighing up The Lottery Corporation Ltd (ASX: TLC) and Aristocrat Leisure Ltd (ASX: ALL) when looking for exposure to the broader gaming and leisure sector. Both companies have strong brand recognition and play prominent roles in gaming, but with very different business models and financial profiles. Whether you’re seeking steady income or growth prospects, let’s take a closer look at how The Lottery Corporation and Aristocrat compare.

The case for The Lottery Corporation

The Lottery Corporation is Australia’s biggest provider of lotteries, including well-known games like Powerball, Oz Lotto and TattsLotto, plus instant scratch-its and Keno. As of its company profile, The Lottery Corporation holds long-dated or exclusive licences in every state and territory outside WA, distributing its products through a wide retail network (including newsagents and service stations) as well as digitally. Since its 2022 demerger from Tabcorp Ltd (ASX: TAH), the business is now a pure-play lottery operator.

Some stand-out fundamentals:

• The Lottery Corporation boasts a 100% franked dividend yield of 3.40%, appealing for investors seeking steady, fully franked income.
• The P/E ratio sits at 37.97, making it pricier (by this metric) than Aristocrat Leisure.
• Year to date, The Lottery Corporation shares are down 2.6%, suggesting recent investor caution.

This is a classic “income and stability” pick, with defensive appeal thanks to its regulated monopoly-like position in lotteries. The fully franked dividends are consistent and attractive, and the business typically holds up well in mixed economic conditions.

The case for Aristocrat Leisure

Aristocrat Leisure is one of the world’s leading gaming technology providers. Famous for its poker machines, casino management systems, and rapidly growing digital and interactive divisions, Aristocrat generates revenue all over the world—especially in North America. Its products span physical pokies, real-money online gaming, and free-to-play mobile games via its Product Madness subsidiary.

Key points from the data:

• Aristocrat’s P/E ratio is 25.17, notably lower than The Lottery Corporation’s, which could make it look more attractive for value-conscious buyers.
• Its year-to-date return is positive at 3.6% as of early October 2026, outpacing TLC.
• The dividend yield is lower, at 1.66%, and recent dividends have not been fully franked.

Aristocrat is geared for growth, with technology and overseas expansion driving its outlook. Its lower dividend yield and franking may deter income investors, but those after capital growth might appreciate its global ambitions and strengthening digital business.

Valuation comparison

With both companies operating in the broader gaming space, it’s worth comparing their key numbers, though their business models and risk profiles differ.

Metric	The Lottery Corporation	Aristocrat Leisure
Market Cap	$10.62 billion	$35.19 billion
P/E Ratio	37.97	25.17
Dividend Yield	3.40% (100% franked)	1.66% (mostly unfranked recently)
Dividend per share	$0.17	$0.99
Earnings per share	0.128	2.374
YTD Return	-2.62%	3.58%

Aristocrat is the much larger company by market cap and boasts higher reported earnings per share. The Lottery Corporation trades on a notably higher P/E even though its EPS is lower, which could reflect investors’ preference for its reliable income stream. The trade-off shows up clearly in the higher dividend yield (plus franking credits) from The Lottery Corporation, compared to Aristocrat’s more modest, largely unfranked payouts.

Recent share price momentum

To keep things apples-to-apples, I’ve compared both shares as of 2 October 2026, the most recent date available in both datasets.

• The Lottery Corporation closed at $4.77, having dipped 1.85% that day. Its 2026 year-to-date return is down 2.6%.
• Aristocrat Leisure closed at $59.76, up 1.5% for the session and up 3.6% for 2026 year-to-date.

The difference in short-term momentum is clear: Aristocrat shares have outperformed so far this year, while The Lottery Corporation has edged lower.

Which is the better buy?

Looking at the numbers, my pick would be Aristocrat Leisure for Australian investors chasing growth. With its lower P/E ratio (25.17), stronger year-to-date share price gains, and global footprint, it feels better positioned for capital appreciation—even if the unfranked and lower dividend yield is less attractive for income hunters.

That’s not to say The Lottery Corporation should be ignored. If dividend income and franking credits are your main priority, The Lottery Corporation’s near 3.4% fully franked yield with defensive characteristics is compelling. But at a significantly higher P/E and given its recent underperformance, I think Aristocrat offers the more appealing risk/reward mix right now. The difference in franking could matter for some, but I’d lean toward Aristocrat’s growth story, scalable technology, and international reach.

The post The Lottery Corporation vs Aristocrat Leisure: ASX shares compared appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Aristocrat, Liontown, and Navigator Global shares
• Tabcorp vs The Lottery Corporation: Which ASX gaming share comes out on top?
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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 The Lottery Corporation. The Motley Fool Australia has recommended The Lottery Corporation. 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.