Author: openjargon

Austal Ltd (ASX: ASB) shares are heading north on Monday after the defence shipbuilder released its FY26 results.

At the time of writing, the Austal share price is up 3.42% to $4.24.

That is despite the company reporting a statutory net loss of $53.6 million, compared with an $89.7 million profit a year earlier.

So, why are investors buying up the shares?

Revenue tops $2 billion

Austal reported FY26 revenue of $2.03 billion, up 11% from $1.82 billion last year.

However, earnings were hit hard by problems within its US business.

Group EBIT swung from a $113.4 million profit in FY25 to a $125.2 million loss, largely due to provisions linked to several loss-making US contracts.

Operating cash flow also dropped to $62.5 million from $406.3 million, while net cash finished the year at $186.3 million.

The company did not declare a dividend as it continues investing heavily in new production capacity.

Australasia is doing the heavy lifting

Austal’s Australasian business delivered revenue of $650.7 million, up 49% from the previous year.

EBIT climbed 137% to a record $85.3 million, with the EBIT margin increasing to 13.1%.

That growth was helped by higher shipbuilding activity and the ramp-up of major Australian defence programs.

Austal’s Australasian defence order book has also jumped to around $5.6 billion, compared with just $700 million a year earlier.

That includes work under the strategic shipbuilding agreement, along with the landing craft medium and landing craft heavy programs.

Austal Chief Executive Paddy Gregg said the existing and expected contract pipeline gives the company a path to potentially double Australasian revenue over the next 5 years.

A huge order book could be supporting the shares

Another number that stands out is Austal’s overall order book.

The company finished FY26 with around $16.5 billion of work, including options, across its Australian and US operations.

Its US order backlog alone is around $10.9 billion, while Austal continues expanding its submarine module manufacturing capacity.

Management is also targeting around $500 million of support and sustainment revenue in FY27.

The company said it expects to return to profitability in FY27 as it works through the issues affecting its US contracts.

What happens next?

Investors will also be watching the proposed sale of Austal USA.

South Korea’s Hanwha Defence has submitted an indicative offer valuing the US business at between US$1.05 billion and US$1.2 billion.

Hanwha has been granted due diligence, although there’s no guarantee a deal will go ahead.

Nonetheless, a sale at that level would leave Austal with a much stronger balance sheet.

The post Austal shares jump despite a $54 million loss. Here’s why investors are buying appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 3 ASX 200 stocks leaping higher in this week’s slumping market on big news
• Are Austal shares a buy, hold or sell after soaring 17% yesterday?
• Here are the top 10 ASX 200 shares today
• Austal posts FY26 loss, receives offer for US business

Motley Fool contributor Aaron Teboneras 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.

S&P/ASX 200 Index (ASX: XJO) shares are up 0.03% at 9,095.2 points on the final day of reporting season.

Hundreds of companies have revealed their earnings this season.

Brokers have reviewed the reports and updated their ratings and 12-month price targets accordingly.

Here are five buy-rated ASX 200 shares with significant upside potential ahead, according to the experts.

NextDC Ltd (ASX: NXT)

The NextDC share price is $13.63, down 1.7% today and down 17% over 12 months.

UBS renewed its buy rating on NextDC shares, with a $22.55 target after reviewing the company’s FY26 earnings.

This implies potential capital growth of 61% over the next year.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is $41.39, up 1.9% today and down 58% over 12 months.

Morgans reiterated its buy rating on this ASX 200 tech share after the company’s FY26 results.

The broker reduced its 12-month price target from $67 to $62.50.

However, this still implies a healthy potential upside of 52%.

Droneshield Ltd (ASX: DRO)

The Droneshield share price is $1.74, down 0.7% today and down 46% over 12 months.

Bell Potter renewed its buy rating on this ASX 200 industrials share after its 1H FY26 results.

The broker trimmed its 12-month price target from $2.50 to $2.40.

This suggests a potential 35% upside ahead.

Qantas Airways Ltd (ASX: QAN)

The Qantas share price is $9.56, down 0.3% today and down 17% over 12 months. 

Morgan Stanley kept its buy call in place on Qantas shares following the airline’s FY26 results.

The broker raised its target on the ASX 200 industrials share from $12.50 to $12.80.

This suggests a potential 33% upside ahead.

Objective Corporation Ltd (ASX: OCL)

The Objective Corporation share price is $6.40, down 5.9% today and down 69% over 12 months. 

Morgans maintained its buy recommendation on this ASX 200 tech share after the company’s FY26 results.

The broker has a revised 12-month price target of $8.50, implying a potential 33% upside ahead.

OCL’s FY26 result was largely in line with expectations. The result came however with more sticker shock in the form of another legacy contract loss leading to a further $3.2m ARR reduction.

OCL enters FY27 with ARR of $114.1m. Despite this softening & FX headwinds during the year, OCL continued to see strong underlying SaaS growth momentum and progress of a number of strategic milestones (including the launch of Build Australia), which is key to ARR momentum and FY27+ outlook.

Rebasing our forecasts for OCL’s revised FY27 ARR and guidance sees our NPAT estimates reduce by ~18-21% in FY27-28F.

Following these revisions OCL is trading on FY27F P/E of 24x, with a share price near 5 years lows.

The post 5 ASX 200 shares with 33% to 61% upside post-results: experts appeared first on The Motley Fool Australia.

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• Why I think Xero and WiseTech shares are strong buys
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• 3 ASX growth shares to buy in September

Motley Fool contributor Bronwyn Allen 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 DroneShield, Objective, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Objective and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX healthcare share Sonic Healthcare Ltd (ASX: SHL) could be one of the best picks within the S&P/ASX 200 Index (ASX: XJO) for retirees wanting dividends.

Sonic Healthcare describes itself as one of the world’s leading medical diagnostic companies. It operates in nine countries, including Australia, the UK, Germany, the US, and Switzerland, with 330 laboratories and 47,000 employees. Impressively, it’s the number one player in six countries.

For multiple reasons, I think it’s a great option for retirees.

Defensive earnings

Healthcare is a defensive sector because of the nature of the types of services it provides.

People don’t choose when to become sick or injured – healthcare demand doesn’t change like discretionary spending does. I’d imagine most people (and governments) would prioritise spending on health over most other categories.

Sonic Healthcare provides an essential service in the healthcare process, so I think its earnings are very defensive.

The ASX healthcare share reported an impressive set of numbers in FY26, considering the economic uncertainty.

Revenue grew 13% to $10.9 billion, underlying operating earnings (EBITDA) climbed 11% to $1.9 billion, and underlying earnings per share (EPS) grew 14% to $1.256.

Profit growth is key for a business to deliver a stable and rising dividend because profit pays for passive income. Therefore, even retiree passive income investors need to look at the earnings outlook.

Good dividend credentials

The ASX healthcare share has paid dividends since 1994. It has increased its dividend almost every year since 1994, except in 2011 and 2012, when it maintained it.

There are very few ASX businesses out there that have increased their payout as consistently over the last 25 years.

I expect the business will be able to continue growing its payout for the foreseeable future.

In the 2026 financial year, Sonic Healthcare continued its progressive dividend policy, hiking the payout by 1 cent per share to $1.08. That translates into a dividend yield of 5.4% excluding franking credits and around 7% including franking credits.  

That’s a really attractive starting yield for retirees, in my opinion.

The ASX healthcare share has earnings tailwinds

I expect the business will be able to increase its payout in the coming years because its earnings could grow materially.

Demand for its services could grow for the foreseeable future, driven by the ageing and growing population in the company’s core markets.

Another way that the company can grow its earnings is by making the occasional acquisition. Its focus in recent times has been Europe. This tactic gives the business a much stronger scale in that market, boosting profit margins.

Over time, I think this business can continue to grow its profits and dividends, making it a compelling pick for investors.

The post Why this ASX healthcare share is a retiree’s dream for FY27 appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Super Retail, APA, Sonic Healthcare shares

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) biotech giant closed on Friday trading for $172.32. In late morning trade on Monday, shares are changing hands for $173.38 apiece, up 0.6%.

For some context, the ASX 200 is up 0.3% at this same time.

Today’s outperformance is par for the course for stockholders since CSL shares closed at a multi-year low of $92.24 on 3 June.

Indeed, with today’s intraday moves factored in, the share price is up a whopping 88.0% since plumbing that low water mark less than three months ago.

Atop those capital gains, investors who hold the stock at market close next Tuesday, 8 September, will receive the final unfranked CSL dividend of $2.277 a share. CSL will pay that dividend on 2 October.

CSL stock trades on a 2.4% unfranked dividend yield (partly trailing partly pending).

Why did the ASX 200 biotech stock plunge to multi-year lows in June?

Despite the remarkable turnaround since 3 June, CSL shares remain down 39% since January 2025.

The company has faced a number of headwinds that saw investors reaching for their sell buttons.

Among these, was the management’s announcement of their intent to spin off the CSL Seqirus segment, its influenza vaccine business, into a separate ASX-listed company.

The company has also been hit by lower than forecast plasma demand, which were partly to blame for CSL’s repeated earnings downgrades.

And investors were taken off guard by former CSL CEO Paul McKenzie’s unexpected exit in February this year.

But, judging by the surging share price these last three months, CSL’s FY 2026 ‘reset’ looks to be paying off handsomely.

And looking to ahead, Morgans’ Damien Nguyen believes the ASX 200 biotech stock remains an appealing opportunity (courtesy of The Bull).

Here’s why.

Should I buy CSL shares today?

“CSL is a global healthcare leader with strong competitive advantages across plasma therapies, vaccines and specialty medicines,” Nguyen said. “Demand for its products remain largely independent of economic conditions.”

Summarising his buy recommendation on CSL shares, Nguyen concluded:

In our view, the latest full year result in 2026 is generating confidence that repeated earnings downgrades are behind CSL.

With defensive earnings, global market leadership and attractive long term growth prospects, we view CSL as an appealing investment opportunity.

What did CSL report for FY 2026?

CSL announced its FY 2026 results on 18 August.

While the company reported a 1% year-on-year decline in revenue to US$15.8 billion, that came in well ahead of its revised guidance (issued in May) of US$15.2 billion.

Management also painted a more positive outlook for FY 2027.

“FY26 has been a year of reset. We have taken decisive action and created a clear path to return to sustainable growth,” CSL interim CEO Gordon Naylor said.

CSL expects steady revenue in FY 2027, while underlying net profit after tax (NPAT) is forecast to grow by around 5%.

CSL shares closed up 17.3% on the day the results were released.

The post Up 88%! Why CSL shares remain an ‘appealing’ buy today appeared first on The Motley Fool Australia.

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• Buy, hold, sell: CSL, BHP, Westpac shares

Motley Fool contributor Bernd Struben 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 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.

Endeavour Group Ltd (ASX: EDV) shares are edging higher on Monday after a difficult end to reporting season.

At the time of writing, the Endeavour share price is up 0.96% to $3.14.

That follows a rough week for shareholders, with the stock falling around 12% and briefly touching a 3-month low of $3.08.

However, a new ASX filing released after market open has given investors something else to think about.

So, has the recent sell-off gone too far?

CEO loads up

According to the latest ASX filing, chief executive Jayne Hrdlicka bought 323,468 Endeavour shares across 25, 26, and 27 August.

The purchases were made at prices between $3.06 and $3.106 per share and totalled just under $1 million.

That lifted her indirect holding from 4,196 shares to 327,664 shares.

This is a pretty sizeable purchase, especially after the shares were hit hard following last week’s FY26 result.

Endeavour shares are now down around 18% over the past 12 months and are trading well below their 52-week high of $4.12.

Why have Endeavour shares been falling?

The latest result showed why investors have been nervous.

Endeavour reported FY26 sales of $12.2 billion, up 1.3%, but underlying group earnings fell.

Underlying EBIT dropped 8.7% to $845 million, while underlying net profit after tax (NPAT) came in at $363 million, down 14.8%.

Retail was the biggest drag, with sales rising just 0.7% to $10 billion and underlying EBIT falling to $464 million.

Hotels held up better, with sales increasing 4.2% to $2.2 billion and underlying EBIT rising to $462 million.

Statutory profit was much weaker at $52 million after the group booked $372 million of pre-tax restructuring costs and asset write-downs.

The final dividend was also cut, with Endeavour declaring 12 cents per share for FY26.

The next test for Endeavour

Hrdlicka is now pushing ahead with a major restructure aimed at simplifying the business and improving returns.

That includes selling winery assets, cutting grape production, and reviewing weaker parts of the retail and hotel portfolio.

There have at least been some better signs early in FY27. In the first 7 weeks, retail sales were up 4.6%, while hotel sales increased 2.2%.

Brokers are still cautious, though. Recent price targets range from $2.50 at Macquarie to $3.10 at Bell Potter, putting most below the current share price.

The next test will be whether that early sales growth can continue through the rest of the first half.

Keep an eye out for Endeavour’s AGM, which will be held on 30 October.

The post Endeavour shares fell 12% last week. Is the CEO calling the bottom? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Winton Land Ltd (ASX: WTN) has been suspended from quotation on both the ASX and NZX, after recent board changes resulted in non-compliance with governance rules.

What did Winton Land report?

• Winton Land Limited shares suspended from the ASX under Listing Rule 17.2, following a request by the company.
• Suspension also enacted on the NZX upon the advice of NZ RegCo.
• Three directors, including two independent directors, resigned effective 31 August 2026.
• The board now has only one independent director, breaching NZX Listing Rule 2.13.2 for board and audit committee composition.
• Suspension to remain until governance requirements are met and the NZX lifts its suspension.

What else do investors need to know?

The core issue prompting this suspension is the sudden reduction in independent directors on the Winton board, leaving the company in breach of key NZX Listing Rules around board independence and audit committee composition. These rules are designed to ensure robust governance and investor confidence.

Winton Land Limited states that it expects to address these issues by appointing at least one new independent director and restructuring its audit committee. Once these steps are taken and Winton complies with the relevant governance requirements, the company anticipates both the ASX and NZX suspensions will be lifted.

What’s next for Winton Land?

Looking ahead, the immediate priority for Winton is to restore compliance with the NZX governance requirements. This will involve making new independent director appointments and ensuring the audit committee is properly composed.

Until the necessary changes are confirmed and approved by NZX, the Winton Land share price will remain suspended. Investors will be updated as soon as the company meets the listing requirements and trading resumes.

Winton Land share price snapshot

Over the past 12 months, Winton Land shares have declined 50%, significantly trailing the All Ordinaries Index (ASX: XAO).

View Original Announcement

The post Winton Land shares suspended following board resignations appeared first on The Motley Fool Australia.

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• Why this ASX healthcare share is a retiree’s dream for FY27
• Up 88%! Why CSL shares remain an ‘appealing’ buy today
• Endeavour shares fell 12% last week. Is the CEO calling the bottom?
• Cobre secures majority control of Sierra Atacama Copper Project
• Why I think the VAS ETF is a top pick for beginners and experienced investors

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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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 Cobre Ltd (ASX: CBE) share price is in focus after the company secured majority ownership of the Sierra Atacama Copper Project, taking a decisive step in expanding its copper production platform.

What did Cobre report?

• Became majority owner (62.86% stake) in the Sierra Atacama and Bergbau copper projects in Chile
• Completed USD $12 million capital raise via pro rata entitlement of new convertible non-voting shares
• Secured option to acquire 100% ownership of the Project Companies through the Final Option mechanism
• Sierra Atacama Copper Project moving towards increased copper cathode production into 2027

What else do investors need to know?

The conversion of preference shares and exercise of control options positions Cobre to take the reins at one of Chile’s major copper developments. The pathway remains open for Cobre to consolidate full ownership in the Sierra Atacama and Bergbau projects, subject to the Final Option as previously disclosed.

Cobre’s strategic timing aims to capitalise on rising long-term global copper demand, with supply constraints giving producers a potential advantage. The company’s broader exploration portfolio could also uncover further resources and extend operational life.

What did Cobre management say?

Executive Chairman Martin Holland said:

Today marks a defining moment in Cobre’s evolution. Securing majority ownership of the world-class Sierra Atacama Copper Mine positions Cobre at the heart of one of the most compelling long-term copper opportunities globally.

We are increasing our ownership to majority owner at precisely the right time. Global copper demand is entering an unprecedented period of structural growth, while supply is becoming increasingly constrained. Against this backdrop, Cobre is building a meaningful and growing copper production platform.

With Sierra Atacama ramping up our annual production of copper cathode into 2027, majority ownership provides Cobre with greater exposure to the significant operating and cash-flow upside from this growth.

At the same time, our exploration portfolio provides substantial additional upside, including the potential to unlock further resources and extend the scale and life of our operations.

We believe Cobre is entering a new phase — transitioning from an emerging copper producer into a substantial, growth-focused copper company. For our shareholders, this is a pivotal moment and one that we believe has the potential to create significant long-term value.

What’s next for Cobre?

Cobre is now poised to ramp up copper production from the Sierra Atacama project into 2027. Management highlighted that majority control will help unlock both operational and cash-flow upside, as well as provide scope to pursue further growth and resource expansion.

Looking ahead, Cobre’s focus is on strengthening its production platform, consolidating further ownership, and advancing exploration to grow its resource base and extend mine life. The company’s strategy is to transition from a junior producer to a significant force in the copper industry.

Cobre share price snapshot

Over the past 12 months, Cobre shares have soared more than 700%, strongly outperforming the All Ordinaries Index (ASX: XAO).

View Original Announcement

The post Cobre secures majority control of Sierra Atacama Copper Project appeared first on The Motley Fool Australia.

More reading

• Why this ASX healthcare share is a retiree’s dream for FY27
• Up 88%! Why CSL shares remain an ‘appealing’ buy today
• Endeavour shares fell 12% last week. Is the CEO calling the bottom?
• Winton Land shares suspended following board resignations
• Why I think the VAS ETF is a top pick for beginners and experienced investors

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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.

Some investments make sense whether someone is buying their first shares or has been investing for decades.

I think the Vanguard Australian Shares Index ETF (ASX: VAS) falls into that category.

This exchange-traded fund (ETF) provides a simple way to own a large part of the Australian share market through a single investment.

The VAS ETF is a straightforward place to begin

For someone new to investing, choosing individual shares can feel daunting.

The VAS ETF removes much of that pressure by tracking the S&P/ASX 300 Index (ASX: XKO). Instead of deciding which Australian shares will perform best, investors gain exposure to hundreds of businesses.

That includes major banks like Commonwealth Bank of Australia (ASX: CBA) and miners like BHP Group Ltd (ASX: BHP), as well as healthcare companies, retailers, industrial businesses, and technology shares.

I think this can help beginners avoid putting too much money behind one early stock pick while they are still learning how the market works.

It also keeps the strategy easy to follow. An investor can regularly add money to the fund, reinvest dividends if they choose, and give the underlying businesses time to grow.

Experienced investors can still find plenty to like

Having more investing experience does not mean every part of a portfolio needs to become more complicated.

An experienced stock picker might own a collection of companies where they have particularly strong convictions, while using this Vanguard ETF to maintain exposure to the wider Australian market.

That means they do not need to personally identify every company that could perform well.

If a business becomes increasingly valuable, its influence within the market can grow. If another company loses ground, its importance can decline.

I like the idea of having part of a portfolio automatically track the Australian share market while leaving individual stock picking to areas where I believe I have a stronger view.

There is an income component to the VAS ETF

Australian shares have traditionally returned a meaningful amount of cash to shareholders through dividends.

Because the VAS ETF owns hundreds of those companies, investors receive payouts generated from the underlying portfolio. Franking credits can also form part of those distributions.

I would still view the ETF primarily as a long-term investment rather than simply chasing income. But receiving distributions while retaining exposure to potential capital growth gives investors more than one way to benefit over time.

Simplicity has value at every stage

I think investors sometimes assume they should make their portfolios more sophisticated as they gain experience.

I am not convinced that is necessary. Keeping part of a portfolio simple can reduce the number of decisions that need to be made and make it easier to stay invested through periods of volatility.

The VAS ETF will still fall when the Australian market struggles, so diversification does not remove risk. But it avoids having the outcome depend on a small number of companies.

Foolish takeaway

The reason I like the VAS ETF is that investors do not need to outgrow it.

It can provide a simple starting point for someone making their first investment and remain a strong portfolio holding years later.

For investors wanting broad Australian exposure without constantly choosing individual winners, I think the ETF deserves serious consideration.

The post Why I think the VAS ETF is a top pick for beginners and experienced investors appeared first on The Motley Fool Australia.

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• How I’d make investing easy with Vanguard ETFs

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Vanguard Australian Shares Index ETF. 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.

The August reporting season is now basically done, and investors have had a lot to take in.

Some companies delivered stronger-than-expected numbers, others disappointed, and plenty of share prices saw big moves along the way.

But once you get past the individual results, a few key points start to stand out.

The Australian recently rounded up some of the biggest takeaways from reporting season, including Morgan Stanley’s latest views.

With that in mind, here are 5 things I think investors have learned over the past month.

1. The economy is starting to slow

The first is that softer economic conditions are beginning to show up in company results.

Morgan Stanley strategist Chris Nicol pointed to weaker credit growth and softer consumer spending as signs the slowdown is starting to bite.

That is something I’d keep an eye on, particularly across banks, housing-related companies, and consumer stocks.

A number of businesses were still able to protect earnings through cost control, but that will get harder if revenue growth continues to slow.

2. Healthcare has bounced back quickly

Healthcare has been one of the stronger areas of the market recently, with Morgan Stanley noting the sector has climbed almost 20% in 2 months.

That comes after a pretty rough period earlier in the year.

The next question is whether earnings can keep improving enough to support the rally.

After such a quick move, investors will probably want to see more than just better sentiment from here.

3. AI is becoming more about costs

Artificial intelligence was mentioned plenty during the reporting season, but one thing caught my attention.

It is becoming less about the excitement around AI and more about what it can actually do for company costs.

Businesses are increasingly looking to AI to improve productivity and reduce labour costs as skills shortages persist.

4. Gold miners are in a much stronger position

Gold stocks have had a huge month, with Morgan Stanley pointing to a 34% rise across the sector in August.

The gold price has also been trading around US$4,500 an ounce, giving producers plenty of breathing room.

That means the conversation is starting to move beyond the gold price itself.

Investors are now paying closer attention to cash flow, balance sheets, and dividends, which could become more important if gold stays around these levels.

5. Takeover activity is starting to pick up

The last thing worth mentioning was the pickup in mergers and acquisitions.

August included several takeover approaches and proposed deals, putting corporate activity back on the radar.

Nicol believes a stronger deal-making cycle could become a bigger driver of market returns if earnings growth slows.

Foolish takeaway

Reporting season was mixed, but it did show a market becoming more selective.

At the same time, inflation remains a problem, and Morgan Stanley now expects the RBA to raise interest rates in September.

That leaves investors with plenty to watch as the market moves into the final 4 months of 2026.

The post Reporting season is over. Here are 5 big lessons ASX investors should take away appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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.

Want some exposure to the tech sector? If you’ve answered yes, then it could be worth checking out the three ASX tech stocks in this article.

That’s because they have recently been named as buys by the team at Morgans. Here’s what it is recommending to clients:

Megaport Ltd (ASX: MP1)

Morgans was pleased with Megaport’s performance in FY 2026 and guidance for the year ahead. It notes that this is being driven by record performances from both its Network and Compute businesses.

In light of this and its very positive earnings growth outlook, the broker has put a buy rating and $25.00 price target on the ASX tech stock. It said:

MP1’s FY26 underlying EBITDA and FY27 EBITDA guidance were above market expectations. Both Network and Compute delivered record growth. At first glance, simple maths suggests MP1’s funding position looks tight. However, there is nearly $500m of additional funding that got lost in translation. We think MP1 ends FY27 with nearly $600m of surplus liquidity (assuming no new deals get signed). Our maths is explained in detail overleaf. Deals already contracted deliver $620m of annualised contracted EBITDA which means after EBITDA lifts 3x YoY in FY27, it will more than double into FY28, based on deals already signed. We upgrade to a Buy recommendation and $25 target price.

Objective Corporation Ltd (ASX: OCL)

Another ASX tech stock that has been given the thumbs up by Morgans is software provider Objective Corporation.

While it was disappointed with a legacy contract loss, it expects annual recurring revenue (ARR) momentum to continue in FY 2027 and beyond.

So, with its shares down near multi-year lows, the broker has retained its buy rating with an $8.50 price target. It said:

OCL’s FY26 result was largely in line with expectations. The result came however with more sticker shock in the form of another legacy contract loss leading to a further $3.2m ARR reduction. OCL enters FY27 with ARR of $114.1m. Despite this softening & FX headwinds during the year, OCL continued to see strong underlying SaaS growth momentum and progress of a number of strategic milestones (including the launch of Build Australia), which is key to ARR momentum and FY27+ outlook. Rebasing our forecasts for OCL’s revised FY27 ARR and guidance sees our NPAT estimates reduce by ~18-21% in FY27-28F. Following these revisions OCL is trading on FY27F P/E of 24x, with a share price near 5 years lows. We therefore reiterate our BUY rating with a revised PT of $8.50/sh.

WiseTech Global Ltd (ASX: WTC)

Finally, Morgans remains positive on this logistics software company and believes it is an ASX tech stock to buy now.

After delivering a result that was largely in line with expectations, Morgans retained its buy rating on WiseTech shares with a $62.50 price target. It said:

WTC’s FY26 result was largely in line with Morgans forecasts (MorgansF), with FY26 revenue of US$1,396m and EBITDA of US$558m coming in towards the lower end of its initial FY26 guidance range. While CargoWise revenue growth of +11% was softer than expected, WTC delivered annualised run-rate savings of ~US$115m in FY26, supporting further margin expansion into FY27. FY27 guidance will see revenue growth 2H-weighted, reflecting the timing of growth initiatives, while Underlying EBITDA guidance of US$725-780m implies EBITDA margins tracking back towards 49-51%. Our Underlying EBITDA forecasts are revised by +3%/-2% in FY27-FY28F and we retain our BUY rating with a price target of A$62.50ps (previously A$67.00ps).

The post Morgans names 3 ASX tech stocks to buy appeared first on The Motley Fool Australia.

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