Share price falls can create better entry points when the underlying business still has a long runway.

That is how I see Zip Co Ltd (ASX: ZIP) and WiseTech Global Ltd (ASX: WTC).

Both shares have fallen heavily from their highs, both remain volatile, and both still need to keep proving themselves.

Even so, I think they are worth buying today.

Zip shares

Zip shares are down around 35% from their high, despite a strong recent recovery.

The share price has climbed around 25% over the past month, which shows that investors are starting to warm to the story again. But I do not think the opportunity has disappeared.

The reason I like Zip is that the company has moved beyond the old growth at any cost story.

A few years ago, many investors viewed buy now, pay later (BNPL) companies with scepticism, and fairly so. The sector was highly competitive, funding costs mattered, and profitability was not always clear. Zip now looks like a much more disciplined business.

It is the US opportunity that interests me most. Zip is targeting a very large market where many consumers still want flexible payment options and may not be well served by traditional credit products.

If Zip can keep growing transaction volumes while managing credit quality and improving profitability, the upside could be material.

The company will not have a smooth ride. Payments and consumer finance can be sensitive to economic conditions, regulation, and investor sentiment.

But I think the market may still be underestimating what a better-run Zip could become.

WiseTech shares

WiseTech shares have had an even tougher run, falling almost 70% over the past 12 months.

Clearly, sentiment is weak and confidence may take time to rebuild, especially for a company that was once priced for a lot of growth.

But I think WiseTech remains one of the highest-quality software businesses on the ASX.

The company’s CargoWise platform helps logistics companies manage the messy work behind global trade. Freight forwarding, customs, compliance, documentation, tracking, tariffs, shipping data, and warehouse coordination all involve enormous complexity. That is where software can become valuable.

I like businesses that solve problems customers deal with every day. WiseTech is trying to become core infrastructure for companies that move goods around the world.

That can create sticky customer relationships if the software keeps improving.

The risks are clear. WiseTech needs to maintain growth, execute on acquisitions, manage governance concerns, and rebuild market trust. A recovery in the share price may not happen quickly.

But I think the long-term opportunity remains very attractive. Global trade is unlikely to become less complex, and logistics companies should keep looking for better digital tools.

Foolish takeaway

I think Zip and WiseTech are both buys, but neither is the kind of share investors should expect to behave calmly.

That is part of the opportunity. The market has already taken a much more cautious view of both companies, even though the long-term growth stories still look alive to me.

Zip needs to keep proving that its recovery is built on better discipline, not just improving sentiment. WiseTech needs to rebuild confidence and show that its software platform can keep growing into a much larger global opportunity.

That makes both shares higher-risk buys, but I think the potential reward is now interesting enough to justify a closer look.

The post Down 35%+, should you buy Zip and WiseTech shares? appeared first on The Motley Fool Australia.

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• Zip shares: 3 reasons to buy and 3 reasons to sell

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 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.

Some ASX 200 shares earn a place in a portfolio because they look cheap.

Others earn a place because the quality of the business is hard to ignore.

That is the way I see the two shares below. They are rarely available at bargain prices, but I think both have the kind of long-term strengths that can make them valuable holdings for patient investors.

Commonwealth Bank of Australia (ASX: CBA)

CBA is not usually the cheapest bank on the ASX, and I would not expect that to change.

But I still think it is one of the highest-quality blue-chip shares on the market.

The reason is quality. CBA has a leading retail banking franchise, a huge customer base, a strong deposit position, and one of the best digital banking platforms in the country. Those advantages can be easy to underappreciate when investors are focused only on valuation.

Banking is never risk-free. Bad debts, housing market weakness, competition, and regulation can all affect earnings.

Even so, I think CBA remains the strongest bank in Australia. It has scale, brand strength, customer trust, and a long record of navigating different economic conditions.

For investors wanting exposure to the banking sector, I would rather own the business I think is best positioned than simply chase the cheapest option.

That is why I would want CBA in my portfolio.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is another ASX 200 share I would want to own for the long term.

The company provides enterprise software to customers such as councils, government departments, universities, and large organisations. These customers need reliable systems to run important operations, from finance and payroll to property, student administration, and compliance.

That gives TechnologyOne a useful kind of resilience. Its customers are not buying software for fun. They are using systems that help them operate properly. Once those systems are embedded, they can be difficult and disruptive to replace.

I also like the long-term shift toward cloud-based software. If TechnologyOne can keep improving its platform and expanding in markets such as the UK, I think it has room to grow annual recurring revenue (ARR) at a strong clip for years to come.

The shares can trade at a premium, so valuation is important. But I think world-class businesses are often worth considering even when they are not obviously cheap.

For me, TechnologyOne has the product quality, customer relevance, and growth runway to be a long-term winner.

Foolish takeaway

I think CBA and TechnologyOne are two ASX 200 shares I would be happy to own in my portfolio.

What I like about both is that their strengths are not built on short-term excitement. They come from scale, trust, customer relationships, and products or services that are deeply woven into daily activity.

Both companies can look expensive at times, and neither is without risk. But I think the best portfolios should include businesses with durable advantages, long-term relevance, and the ability to keep compounding value.

That is why these two world-class ASX 200 shares stand out to me.

The post 2 world-class ASX 200 shares I want in my portfolio appeared first on The Motley Fool Australia.

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

The oil price has taken a hit, but some ASX energy shares are moving higher on Monday.

During early afternoon trade, Woodside Energy Group Ltd (ASX: WDS) shares are up 1.15% to $28.19. That leaves the Woodside share price up around 20% in 2026.

Santos Ltd (ASX: STO) is also having a stronger session. Its shares are up 2.25% to $7.26, taking its gain for the year to around 17%.

Beach Energy Ltd (ASX: BPT) is climbing 1.49% to 85.3 cents, while Origin Energy Ltd (ASX: ORG) is moving the other way, down 0.77% to $10.28.

The move comes as investors look past weaker oil prices and focus on a more positive view from brokers.

Let’s take a closer look.

Oil prices have cooled quickly

The oil market has lost a lot of heat over the past month.

Based on Trading Economics, Brent crude is trading at around US$72 a barrel today, while West Texas Intermediate (WTI) is sitting near US$69 a barrel.

The pullback follows another move from OPEC+ to lift supply. The group has agreed to raise output by 188,000 barrels per day from August, extending its run of monthly increases.

At the same time, energy flows through the Strait of Hormuz are recovering. That has eased some of the supply worries that were pushing oil higher just a few weeks ago.

The market has gone from worrying about Middle East supply risks to focusing again on extra production and softer prices.

Brokers find value after the selloff

The weaker oil price has not stopped Morgan Stanley from turning more positive on parts of the ASX energy sector.

According to the broker update, analyst Rob Koh has upgraded Santos to ‘overweight’ and lifted the price target to $7.67, up from $7.50.

Woodside and Beach Energy were also upgraded to ‘equal-weight’ from ‘underweight’.

Morgan Stanley pointed to better valuations, free cash flow yields, and a more favourable risk-reward setup across parts of the sector.

It also noted that the ASX 200 energy index has fallen around 15% over the past 2 months, while earnings estimates have been dragged down as much as 28%.

Origin misses out

Origin Energy did not get the same treatment.

Morgan Stanley cut its price target on Origin to $10.35, down from $11.00, and kept it as its least preferred pick in the group.

The broker is concerned that lower east coast domestic gas prices could flow through to weaker electricity prices and put pressure on earnings.

It also flagged the proposed 2027 domestic gas reservation policy as another uncertainty hanging over the sector.

Foolish takeaway

The upgrades should give Woodside, Santos, and Beach Energy some support after a rough stretch for oil.

However, I wouldn’t read too much into it just yet.

This looks more like a valuation call after a tough couple of months for the sector.

Woodside and Santos have already climbed strongly in 2026, so investors are not exactly buying them at a big discount.

From here, the oil price needs to settle down. If crude keeps sliding, broker upgrades alone probably won’t be enough to keep these ASX 200 energy shares moving higher.

 

The post Oil price crash sparks broker upgrades for ASX energy shares appeared first on The Motley Fool Australia.

More reading

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• Woodside shares soared, then stumbled. What’s next for investors?
• Origin Energy sell-off continues, shares hit fresh 52-week low: Buy, sell or hold?
• Buy, hold, sell: BHP, Woodside, PLS Group shares
• 5 things to watch on the ASX 200 on Monday