Not every well-known ASX share looks equally attractive to me right now.

Some have a clear path to stronger earnings over the coming years, while others face a more challenging environment.

With that in mind, here is how I would rate three popular ASX shares today.

BHP Group Ltd (ASX: BHP)

BHP is a buy for me, largely because of how I expect its business to develop over the next decade.

The mining giant already has an enormous copper business, and I think that commodity could become an increasingly important source of earnings.

Demand for copper is expected to grow as countries invest in electricity networks, renewable energy, electric vehicles, and the infrastructure needed to support artificial intelligence (AI).

BHP is positioning itself for that demand through its existing operations and a pipeline of projects across several countries.

I also like that its iron ore business provides substantial cash flow to help fund those ambitions.

Iron ore prices will inevitably fluctuate, particularly given China’s importance to the global steel market. But BHP’s scale and low-cost operations put it in a strong position to navigate those cycles.

The development of its Jansen potash project in Canada should also provide another earnings stream as production ramps up.

For me, BHP offers an attractive combination of established operations, long-term growth opportunities, and the potential for healthy dividends.

Westpac Banking Corp (ASX: WBC)

Westpac is a hold in my view.

There is plenty to like about the bank. It has an established position in Australian mortgages and deposits, a large customer base, and the ability to generate substantial profits through different economic conditions.

It also remains an important dividend payer, which makes it a reasonable option for investors seeking income.

My hesitation comes from the outlook for growth. Higher interest rates can support banking margins, but they also place greater pressure on borrowers and reduce demand for new loans.

With Australia’s housing market facing a more difficult period, I think Westpac could find it challenging to deliver particularly strong earnings growth.

There is also competition to consider. Banks are constantly competing for mortgage customers and deposits, which can limit how much benefit they receive from higher rates.

None of this makes Westpac a poor business. If I already owned the shares, I would be comfortable continuing to collect the dividends and giving management time to deliver.

But for fresh investment, I think there are more compelling opportunities elsewhere on the ASX.

Zip Co Ltd (ASX: ZIP)

Zip is my second buy, although it comes with considerably more risk than BHP shares.

The buy now, pay later company has spent recent years improving its financial position and building a platform for more profitable growth.

I think the opportunity in the United States is particularly exciting. There is still room for Zip to expand its merchant relationships, attract more customers, and capture a larger share of consumer spending.

As transaction volumes increase, the company has an opportunity to spread its operating costs across a larger business. I think that could translate into strong earnings growth over the coming years.

But I would be watching credit quality closely. Zip needs to demonstrate that it can continue to grow without taking on excessive lending risk, particularly as higher interest rates put pressure on household finances.

If management continues balancing growth with disciplined lending, I think the company could become substantially more profitable by the end of the decade.

And with the shares still trading well below their previous highs, I believe there could be significant upside if that happens.

Foolish takeaway

BHP and Zip would both be on my buy list today, although for quite different reasons.

BHP offers exposure to long-term commodity demand, while Zip has the potential to deliver much faster earnings growth.

Westpac remains a solid business, but I would be happy holding rather than buying at this stage.

The post Buy, hold, sell: BHP, Westpac, and Zip shares 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telix Pharmaceuticals vs Clinuvel Pharmaceuticals shares

If you’re thinking about putting $1,000 into an ASX healthcare stock, Telix Pharmaceuticals Ltd (ASX: TLX) and Clinuvel Pharmaceuticals Ltd (ASX: CUV) are likely on your radar. Both are pioneering companies in Australian biotech with global ambitions, but they have some stark differences. Let’s weigh up Telix Pharmaceuticals vs Clinuvel Pharmaceuticals shares to see which one might suit an investor chasing growth, value, or something in between.

The case for Telix Pharmaceuticals

Telix Pharmaceuticals is a commercial-stage biopharma player focused on developing and selling theranostic (both diagnostic and therapeutic) products using targeted radiation. Its key product, Illuccix, is approved for prostate cancer imaging in Australia, the US, and Canada, and the company is pushing for approvals in Europe and the UK. Beyond this, it’s running over 20 clinical trials globally across major cancer types including prostate, kidney, brain, and bone marrow conditions. Telix is headquartered in Australia but operates on several continents.

Three stand-out points about Telix from the data:

• It’s much larger than Clinuvel, with a market cap of $5.40 billion.
• Year to date, its shares are up an impressive 37.6%.
• The company sports a very high price-to-earnings (P/E) ratio of 108.53, reflecting high investor hopes for future growth rather than current earnings.

It’s worth noting that Telix does not pay a dividend, so investors here are backing future growth rather than income.

The case for Clinuvel Pharmaceuticals

Clinuvel Pharmaceuticals is best known for its drug SCENESSE, which helps people with rare genetic disorders causing extreme intolerance to sunlight. Clinuvel focuses on innovative treatments for both genetic and vascular skin disorders, and earns most of its revenue from the US and Europe. Like Telix, it’s an Australian company with an international outlook.

Highlights for Clinuvel from the figures:

• It is much smaller in scale than Telix, with a market cap of $413.5 million.
• The company’s P/E ratio stands at 12.17, considerably lower than Telix’s, indicating the shares are valued far closer to current earnings.
• Dividend-wise, Clinuvel pays a fully franked yield of 0.62%, recently delivering annual dividends of 5 cents per share, all fully franked, which is a rare treat among Aussie biotechs.

However, Clinuvel shares have dropped 34.4% year to date, reflecting a tough patch for the business or perhaps shifts in investor expectations.

Valuation comparison

Here’s how the two stack up on main valuation and yield measures:

Metric	Telix Pharmaceuticals	Clinuvel Pharmaceuticals
Market Cap	$5.40 billion	$413.51 million
P/E Ratio	108.53	12.17
Earnings per Share (EPS)	$0.099	$0.668
Dividend Yield	0.00%	0.62% (fully franked)
Dividend per Share	N/A	$0.05

Note: Clinuvel’s reported P/E and EPS are consistent, while Telix’s very high P/E reflects its current tiny but positive earnings. Telix does not pay dividends, whereas Clinuvel does, with a fully franked yield.

Recent share price momentum

Comparing recent share price performance up to 7 October 2026:

• Telix Pharmaceuticals closed at $15.87 on 7 October 2026, with a year-to-date return of 37.6%.
• Clinuvel Pharmaceuticals closed at $8.20 on 7 October 2026, with a year-to-date return of -34.4%.
• Over the previous trading week, Telix shares jumped 2.99% on the most recent day, and showed strong overall momentum despite some volatile days.
• Clinuvel shares, in contrast, edged up 0.86% on the same day, but have been trending down for most of the year.

Which is the better buy?

If I was picking between Telix Pharmaceuticals and Clinuvel Pharmaceuticals to invest $1,000 right now, I’d lean toward Telix. The company is much larger, more diversified across major cancer indications, and has clear momentum both in its operational progress and in the share price this year. While Telix is definitely priced for optimism with a sky-high P/E multiple (108.53), its strong pipeline and global approvals for Illuccix are impressive.

Clinuvel does stand out for paying a fully franked dividend—very rare among Australian biotechs—and the shares trade at a far lower P/E ratio (12.17), which could appeal to value-seekers. Yet, the steep year-to-date drop in the share price raises questions. Unless I was after income above all else or felt confident in a turnaround, I’d be more comfortable backing Telix’s proven momentum and future-facing pipeline in the current landscape.

The post Telix vs Clinuvel Pharmaceuticals: Which ASX healthcare share deserves your next $1,000 of investment capital? 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 Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. 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.

The DroneShield Ltd (ASX: DRO) share price has been on a real journey over the past year.

After reaching a 52-week high of $6.70, the counter-drone technology company’s shares are now trading around $1.67 on Friday.

Despite this, I think there are still reasons to be positive about the company’s future.

So, could the DroneShield share price climb back above $2.00 in 2027?

The growth opportunity remains substantial

One reason I remain interested in DroneShield is the growing importance of counter-drone technology.

The use of drones in modern warfare has demonstrated how relatively inexpensive equipment can threaten military vehicles, critical infrastructure, and personnel.

Governments are responding by investing in systems capable of detecting, tracking, and defeating these threats.

DroneShield has positioned itself in this market with a range of products designed for military, government, and security customers. And I think the company’s recent progress in the United States is particularly encouraging.

In September, DroneShield secured a place on a US$500 million procurement contract covering counter-drone technology for American homeland defence requirements.

This isn’t a guaranteed US$500 million in revenue, but it provides another avenue for the company to win business in one of the world’s largest defence markets.

If DroneShield can build on that momentum and secure further contracts during 2027, I think investors could become considerably more confident about its growth prospects.

Profitable growth will be important

Winning contracts is one thing, but I would also want to see DroneShield turn that demand into sustainable profits.

The company has been investing in manufacturing capacity, product development, and its international operations to prepare for a much larger business. Those investments could pay off handsomely if sales continue increasing.

I am also interested in its growing software and support offering. DroneShield recently launched Mission Ready Services, which brings software updates, technical support, and training together under a subscription model.

With thousands of software-enabled devices already deployed, there is an opportunity to generate additional revenue from customers after the initial equipment sale.

That could gradually improve the consistency of earnings in an industry where major defence orders can be irregular.

For me, demonstrating that it can grow revenue while improving profitability would be one of the strongest reasons for investors to reassess the DroneShield share price.

What could hold the DroneShield share price back?

There are still some significant issues to consider. Short sellers have taken a substantial interest in DroneShield, with reported short positions representing around 15.2% of shares on issue in early October.

That suggests a considerable number of market participants are positioning for further share price weakness.

The ongoing Australian Securities and Investments Commission (ASIC) investigation is another source of uncertainty.

The investigation relates to company announcements and information provided to the ASX in November 2025, alongside trading in DroneShield shares during that period.

There is no certainty about what action, if any, will result, but I think investors will want to see the matter resolved before confidence can fully recover.

These issues could continue weighing on the shares even if the business performs well.

Foolish takeaway

At $1.67, the DroneShield share price would need to rise around 20% to reach $2.00.

Considering the shares traded as high as $6.70 during the past year, I do not think that is an unreasonable target, although the previous high is certainly no guarantee of a recovery.

If DroneShield keeps winning contracts, grows profitably, and makes progress towards resolving its governance uncertainties, I think there is every chance the shares could move beyond $2.00 in 2027.

I would expect plenty of volatility along the way, but I remain positive on the company’s long-term growth opportunity.

The post Could the DroneShield share price reach $2 in 2027? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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.