CSL Ltd (ASX: CSL) shares have staged a remarkable recovery over the past few months.

After a difficult period for the healthcare giant, the share price has rebounded strongly as investors have become more optimistic about its future.

But with much of that recovery already behind us, is CSL still worth buying?

Here’s how I see it.

Why I still like CSL

One of the biggest reasons I remain positive on CSL is the strength of its underlying business.

The company is a global leader in plasma-derived medicines, including immunoglobulin therapies used to treat patients with immune deficiencies and other serious medical conditions.

Demand for these treatments has been growing, and I think there is considerable scope for that to continue as diagnosis rates improve and more patients gain access to treatment.

CSL is also particularly well positioned to meet this demand.

Building a global plasma collection network and the manufacturing facilities required to produce these medicines takes enormous investment, specialist knowledge, and regulatory approval.

That gives CSL a competitive position that would be difficult for another company to replicate.

What I would like to see over the next few years is the company making better use of those advantages.

Plasma collection and processing costs have weighed on profitability, and improving efficiency across the network should help CSL generate stronger returns from growing demand.

Encouragingly, management is continuing to address this.

Last week, CSL announced an expanded relationship with Haemonetics, with plans to roll out its latest plasma collection technology across the company’s US collection centres by the end of 2027.

This is one of several initiatives aimed at improving collection efficiency, and I think these incremental improvements could add up over time.

Alongside the development and commercialisation of newer medicines, they give CSL several ways to strengthen earnings through to 2030.

What does the earnings outlook suggest?

I think the next few years should see CSL steadily rebuild its earnings.

Consensus forecasts point to earnings per share (EPS) of $8.96 in FY27, increasing to $9.50 in FY28 and $10.03 in FY29.

That represents annual earnings growth of approximately 6% between FY27 and FY29.

It is a relatively modest pace, but I think it provides a reasonable foundation for a business of CSL’s size.

There is also potential for stronger growth if plasma collection efficiency improves faster than expected, margins recover, or newer products deliver better results.

Of course, none of that is guaranteed. CSL still needs to execute its recovery plans, manage costs, and navigate the challenges that come with developing and commercialising medicines.

But I think the direction of the business looks positive.

Are CSL shares still good value?

This is where I think investors need to adjust their expectations.

CSL shares are trading around $184.65 on Monday, more than double their 52-week low of $90.

That is a substantial recovery, although the shares remain below their 52-week high of $222.47.

At today’s price, CSL trades on a P/E ratio of approximately 21 times forecast FY27 earnings, falling to around 18 times FY29 earnings.

I would no longer describe that as a bargain valuation.

The market is already pricing in some improvement, and I think investors should expect a more gradual recovery in the share price from here.

Nevertheless, I am comfortable paying that sort of multiple for a global healthcare leader with established competitive advantages and a reasonable outlook for earnings growth.

If CSL continues to improve profitability and grow earnings into 2030, I think shareholders could still enjoy good returns over the next few years.

Foolish takeaway

CSL is a buy for me, although the opportunity looks quite different from when the shares were trading closer to $90.

I think the business has plenty of room to improve, particularly as its plasma operations become more efficient and demand for its medicines continues growing.

At around $185, I would be happy to buy CSL shares and give the company time to deliver on that potential through to 2030.

The post CSL shares: Buy, hold, or sell? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Zip Co Ltd (ASX: ZIP) shares have fallen more than 50% over the past year, but according to the analyst team at UBS, it could be time to buy the dip.

UBS has a buy rating on Zip shares and a very bullish share price target, which I’ll get to shortly.

First, let’s have a look at their most recent trading results to see how they’re doing.

Share falls depsite record trading results

Zip in mid-August reported total income of $1.35 billion, up 24.6% on FY25, and record cash EBTDA of $268.9 million, up 57.9%.

The company’s total transaction volume (TTV) increased 27.2% to $16.7 billion, while the volume in the US market grew 42.5%.

Net bad debts increased from 1.52% to 1.77% in line with management’s expectations.

Zip Chief Executive Officer Cynthia Scott said it was a strong result.

She added:

Consistent execution has built the platform to deliver our next phase of growth and innovation. In FY26, we exceeded our targets with record cash earnings of $268.9m, up 57.9%, underpinned by material cash earnings growth in both markets. We maintained strong unit economics, expanded operating leverage and reinforced the value of our differentiated business model. Our focus on exceptional customer experiences is translating into stronger engagement. In the US, we achieved more than 40% growth in both TTV and revenue for a second consecutive year while adding new customers at scale. In ANZ, we returned to revenue and Australian receivables growth, led by the continued success of our Zip Plus product.

Ms Scott said the company was targeting cash earnings of $340 million in FY27, which would be a 26% increase.

Importantly, in the US market, the company said that the majority of TTV “continued to be derived from predominantly non-discretionary expenditure, with health, education, auto and transport the fastest growing categories”.

Broker sees Zip shares as cheap

UBS said this was a key strength of the company.

As they said:

Whilst we are watching macro risk, we see these concerns overplayed given Zip’s exposure to non-discretionary spend in the US, and slowing macro potentially catalysing growth in the buy now pay later space as consumers consider non-traditional cash flow management tools over traditional credit.

UBS said they had made minimal adjustments to their outlook for the company, outside of a 1% reduction in expected cash earnings due to another likely interest rate increase in both Australia and the US.

The broker said Zip was trading on a forward price-to-earnings (P/E) ratio of 15 times, which set it up well to achieve a compound annual growth rate in the high teens.

UBS has a price target of $4.40 on Zip shares, compared with the current $2.24.

The post Down more than 50%, are Zip shares too cheap to ignore? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.

Tuas Ltd vs Temple & Webster Group shares

If you’re weighing up Tuas Ltd (ASX: TUA) against Temple & Webster Group Ltd (ASX: TPW), you’re probably searching for deep value – after all, both shares have crashed over 65% year to date. While they live in entirely different industries (telecommunications for Tuas and online retail for Temple & Webster), this level of sell-off could have left one or both looking like bargains. Let’s compare their business models, recent results, and what stands out before I give my verdict on which might be the better value buy.

The case for Tuas

Tuas operates a mobile telecommunications network and provides mobile services, focusing on the Singaporean market. Headquartered in Sydney and founded in 2020, it’s a newer player, targeting SIM-only value plans in a highly competitive sector. Its lean operating footprint helps keep costs low.

Notably, Tuas:

• Has a market capitalisation of $907.60 million, the larger of the two companies in this comparison.
• Trades on a P/E ratio of 30.99 with earnings per share of $0.048.
• Has a 0% dividend yield, so you won’t get any income return at current prices.

The company appears growth-focused and is not aimed at income investors just yet.

The case for Temple & Webster

Temple & Webster is an online-only retailer specialising in furniture and homewares. Its huge web-based offering, including office furniture, lighting, and home décor, sets it apart from physical retailers. According to its most recent public description, the company offers a wide product range (over 200,000 items) and a strong online subscriber base, building scale since its 2011 founding.

For Temple & Webster:

• Market cap sits at $517.47 million – notably less than Tuas.
• Its shares command a hefty P/E ratio of 127.95, and earnings per share sit at $0.035.
• Like Tuas, Temple & Webster doesn’t currently pay a dividend.

Valuation comparison

Here’s how the fundamentals stack up side by side:

Metric	Tuas	Temple & Webster
Market Cap	$907.60 million	$517.47 million
P/E Ratio	30.99	127.95
Earnings per Share (EPS)	$0.048	$0.035
Dividend Yield	0.00%	0.00%
Year To Date Return	-76.59%	-67.54%

It stands out to me that Tuas now trades on a much lower P/E ratio than Temple & Webster – 30.99 vs 127.95. This suggests investors demand far more growth from Temple & Webster and are willing to pay up for its potential, despite both companies posting profits. Neither pays a dividend at present.

Recent share price momentum

Comparing recent share price performance up to 9 October 2026:

• Tuas closed at $1.66, essentially flat over its last two trading sessions, and down sharply over the year (YTD return: -76.6%).
• Temple & Webster closed at $4.44, having gained 4.5% on the day, but still deep in the red for 2026 (YTD return: -67.5%).

Which is the better buy?

If I’ve got to pick between two shares smashed more than 65% this year, my pick would be Tuas. There are a few reasons for this call. While both still look risky and could have question marks about their future growth, Tuas trades at a far lower P/E multiple than Temple & Webster. That means, for every dollar of earnings, you’re paying a lot less for Tuas than for Temple & Webster – and both have posted profits in the latest data. Neither stock is paying a dividend, so income-seekers won’t find a winner here.

Temple & Webster has that classic high-growth online retailer story, and sometimes those stories come with extreme valuations. Right now, that shows up as a P/E of nearly 128, versus about 31 for Tuas. Unless Temple & Webster can accelerate earnings growth sharply from here, I’m wary of buying at that kind of multiple after a big fall.

Both shares carry risk, but on valuation grounds, Tuas looks like better value right now. If I had to choose where to hunt for a deep-value rebound, I’d lean toward Tuas.

The post Tuas vs Temple & Webster: Which beaten-down ASX share offers better value? appeared first on The Motley Fool Australia.

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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 Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. 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.