The Pro Medicus Ltd (ASX: PME) share price has been an incredible performer over the last five years, rising by 230%. The Australian stock’s return would have been much stronger if the end date of this measure had been July 2025, as it was above $330 at that stage.

As the above chart shows, it’s actually down 40% since that July 2025 peak. So, after significant volatility over the past year, is it good value or overvalued?

Let’s take a look at what analysts think of the business at its current valuation.

Expert views on Pro Medicus shares

According to CMC Invest, there have been 10 analyst ratings on the business. Of those ratings, nine were buys, and one was a hold.

Clearly, investors are feeling very positive about the business right now, though it has already regained some of its lost ground after rising more than 40% over the last month.

Experts still think the Pro Medicus share price could rise from here. The average price target of those 10 ratings is $203.15. That suggests it could rise more than 7% in the next year.

The most optimistic price target is $245.13, suggesting it could rise another 30% from where it is at the time of writing.

Why is the Australian stock still attractive?

The business has continued to deliver excellent financials for shareholders, which is the only thing Pro Medicus can truly control.

Its operating profit (EBIT) remains one of the highest on the ASX. This means much of the new revenue it’s winning is turning directly into usable EBIT that can help grow the bottom line, pay larger dividends, and/or strengthen the balance sheet.

The company continues to win new and renew existing contracts from valuable clients, giving it tailwinds for shareholder returns.

Additionally, Pro Medicus continues to strive to offer the best service, which is why it recently announced it’s exploring a partnership with EchoIQ Ltd (ASX: EIQ) to provide Pro Medicus customers with AI-powered cardiovascular diagnostic technology. Cardiology could be a great growth avenue for Pro Medicus.

The company’s earnings per share (EPS) is expected to continue rising at a strong pace. According to Commsec’s forecast, the business is projected to grow EPS by around 30% in FY27 and by another 25% in FY28.

Can any other very profitable S&P/ASX 200 Index (ASX: XJO) share grow EPS as much in percentage terms between FY26 and FY28? Time will tell, but I think the Australian stock has a very promising future.

The post Up 230% in 5 years! Is this still a top Australian stock to buy? appeared first on The Motley Fool Australia.

More reading

• How to invest $500, $5,000, and $50,000 on the ASX
• Is this exciting ASX tech stock a buy after its massive news?
• Pro Medicus just struck a revolutionary AI cardiology deal. Here’s why that matters
• Why is everyone talking about Mineral Resources, A2 Milk and Pro Medicus shares on Thursday?
• Why A2 Milk, EchoIQ, Lendlease, and Qantas shares are racing higher today

Motley Fool contributor Tristan Harrison has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. 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.

I believe investors are much more likely to see good returns by owning ASX shares over the long term.

But, there aren’t many investments I’d commit to owning for 10 years, let alone 60 or 70 years.

There are a few names I expect to own for a very long time. I’ve already owned the two below ASX share for many years and I expect they’ll be in my portfolio for decades to come.

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust (REIT) that owns farmland across Australia.

Farms have been an essential part of life for many centuries, and I think that will continue to be the case for a very long time to come.

Rural Funds is invested across a variety of farming sectors. I like the diversification strategy of the business because it lowers the risk of being too exposed to one type of farm and allows it to find the best opportunities it can for a combination of rental income and growth.

The business has long-term rental agreements signed with high-quality agricultural producers. The weighted average lease expiry (WALE) is currently over a decade, indicating compelling rental visibility and security.

Its rental income is steadily growing thanks to contracted increases, either linked to inflation or fixed annual increases, plus market reviews.

One of the main reasons this seems like such a good time to invest is that the business is trading at a significant discount to its net asset value (NAV) – the underlying value of the business, including property values, loans, and so on.

At 31 December 2025, it had an adjusted NAV of $3.10. At the time of writing, it’s trading at a discount of around 33%.

As a final bonus, it offers good passive income – it currently has a distribution yield of 5.6%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is another ASX share I expect to deliver excellent longevity. It has already been listed for 120 years, and I think it’ll excel for decades to come.

The investment house has a very diversified portfolio of assets and businesses. Having a flexible investment mandate allows the company to steadily change its asset base over the years, giving the business the ability to future-proof itself.

In 20 years, its main investments could be extremely different, but the business will still have the same level of attraction to me. Management is always looking for ideas that can generate defensive cash flow and deliver long-term capital growth.

Currently, some of its biggest investments include energy, sources, property, swimming schools, agriculture, electrification, credit and plenty more.

Soul Patts has outperformed the S&P/ASX 200 Index (ASX: XJO) over the long-term, and I expect that to continue as the business further adjusts its portfolio.

One of the main reasons I like it so much as an investment is its excellent track record of dividend growth. It has increased its regular payout every year since 1998. That’s the most consistent dividend growth record on the ASX.

The post 2 ASX shares I plan to own until I’m 100 appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I’d buy and hold for my kids
• Where should I invest inside SMSFs instead of property?
• How to invest $500, $5,000, and $50,000 on the ASX
• Want a pay rise? These ASX dividend shares keep delivering
• 3 ASX dividend favourites are hitting 52-week highs today. Are investors getting defensive?

Motley Fool contributor Tristan Harrison has positions in Rural Funds Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Rural Funds Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owning Wesfarmers Ltd (ASX: WES) shares has been an excellent choice for passive income over the past decade, and I expect it will continue for the foreseeable future.

Shareholders can largely thank Bunnings and Kmart for enabling the company to pay stable and growing dividends this decade. On more than one occasion, those two leading businesses have helped households during high inflation.

Even if national retail spending were to fall, Kmart and Bunnings have shown the ability to grow sales, a great sign that they are increasing their market share. Bigger scale can also help with improving profit margins.

With the business set to report dividend growth in FY26, we’re going to look at what the business could deliver in FY27.

Wesfarmers dividend projection for FY27

According to Commsec’s forecast, the business is projected to pay an annual dividend per share of $2.19 in FY26. That translates into a dividend yield of 2.4%, or 3.5% including the franking credits.

I wanted to give context of where the Wesfarmers dividend is expected to be in FY26 before seeing what could happen in FY27.

According to Commsec’s forecast, the business is projected to grow its annual dividend per share by 8% year-over-year in FY27 to $2.33 per Wesfarmers share.

At the time of writing, that potential payout translates into a dividend yield of 2.6%, or 3.7% including the franking credits.

What would be needed for $1,000 of passive income?

The prospects look good for shareholders to get bigger payouts in FY27, though that’s not guaranteed, of course.

If an investor wants $1,000 of passive income from the Kmart and Bunnings owner, they’d need 430 Wesfarmers shares. At the time of writing, this would cost approximately $38,300.  

If we include franking credits in the income goal, an investor would only need 301 Wesfarmers shares to generate $1,000 in annual dividends. At the time of writing, this would cost approximately $26,800.

Is this a good time to invest in Wesfarmers shares?

I think Wesfarmers is one of the best ASX blue-chip shares around. However, at the time of writing, it has risen approximately 15% in the past month. It’s not as good value as it was.

According to CMC Invest, the average price target from nine recent analyst ratings on the business is $76.34. That suggests those analysts collectively believe the stock could drop by more than 14% over the next year, so there could be even better opportunities at more attractive valuations.

The post How much must I invest in Wesfarmers shares to earn a $1,000 passive income in 2027? appeared first on The Motley Fool Australia.

More reading

• How to build passive income for life from the ASX share market
• Why Wesfarmers shares still look like a top buy to me
• Chasing early retirement at 55? These ASX shares and ETFs could help
• ASX 200 retail shares outperform on growing hopes interest rates have peaked
• Where should I invest inside SMSFs instead of property?

Motley Fool contributor Tristan Harrison 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 Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.