Author: openjargon

I’m always on the lookout for ASX shares that could deliver big returns. Recently, analysts have highlighted some that could be significantly undervalued.

The ultra-long-term return of the ASX share market has been approximately 10% per year, so anything capable of outperforming that benchmark could be very attractive.

Brokers have highlighted two businesses that released promising updates this year, and could therefore could deliver significant returns in the year ahead. Let’s look at those ideas.

Megaport Ltd (ASX: MP1)

Megaport said it’s changing how businesses manage their infrastructure, with one smart and simple platform. The company says it brings “network and compute together seamlessly and deploy[s] secure, scalable infrastructure closer to users, data and clouds.”

It noted that it’s trusted by leading companies across the world, partnering with service providers, data centres and system integrators.

The ASX share continues to win sizeable contracts – it recently announced a major new customer contract for compute and storage. That customer signed a 36-month contract with a total value of approximately US$25.1 million, or A$35.4 million. That adds US$8.4 million (A$11.8 million) in annualised recuring revenue (ARR).

The company said that its subsidiary Latitude.sh is in an ideal position as a critical infrastructure platform to continues to capture the “unprecedented AI-driven demand for CPU, GPU and storage.”

Megaport’s network ARR continues to grow strongly, with the figure reaching A$272 million as at 31 March 2026, representing 23% year-over-year growth on a constant currency basis. Excluding India, network ARR increased 20% on a constant currency basis.

According to CMC Invest, there have been nine recent analyst ratings on the business, with eight of those being a buy and one being a hold. The average price target of those ratings is $15.39, implying a possible rise of around 70% from where it is, at the time of writing.

Austal Ltd (ASX: ASB)

Austal is another ASX share that experts have tipped to deliver potentially large returns.

It’s a global shipbuilder and defence contractor that designs, constructs and maintains some of the world’s most advanced commercial and defence vessels. The business is Australia’s largest defence exporter.

Austal has shipyards in Australia, the USA, the Philippines and Vietnam, with service centres across the world.

Some of its major clients include the US Department of Defense, the US Coast Guard, the Australian Department of Defence and the Australian Department of Home Affairs.

Its FY26 half-year result was impressive, with revenue growth of 34% to $1.1 billion operating profit (EBIT) growth of 41% to $60.4 million and net profit after tax (NPAT) growth of 21% to $30.5 million.

There are a number of positives for the business, including its Australian order book being at record levels, providing “years of growth”. Additionally, it’s expanding its Alabama shipyard which will help its US earnings and capabilities.

Its HY26 order book reached $17.7 billion, suggesting plenty of future revenue and earnings are locked in.

According to CMC Invest, of three recent ratings on the business, the average price target is $6.94. That implies a possible rise of around 65% from where it is, at the time of writing.

The post 2 ASX shares tipped to grow 50% or more in the next 12 months appeared first on The Motley Fool Australia.

More reading

• Austal issues correction for Border Force contract price
• Austal wins extra $136m patrol boat contract, lifts order book above $17.7bn
• Top brokers name 3 ASX shares to buy next week
• The five best ASX 200 stocks to buy and hold in April revealed
• 3 ASX shares benefiting from the rise of digital infrastructure

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 Megaport. 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.

Self-managed superannuation funds (SMSFs) are a wonderful way to invest for high dividend yields because of how they are offer lower tax rates (perhaps 0% in retirement) for Australians.

But, in my view, I don’t think every high-yield ASX share is a buy just because it offers a large near-term (or historic) yield. There are other aspects I want to see from an investment that may look appealing on the income side of things.

Passive income stability

For me, it’s very important that investors can rely on the passive income that they expect to receive.

I don’t think there’s much appeal to owning a business for dividends if that payout disappears when an economic downturn comes.

High yields are only attractive if those payments continue to flow, not just at certain times of the economic cycle.

For example, if I relied on dividend income to pay for my life expenditure, I wouldn’t expect Fortescue Ltd (ASX: FMG) or Rio Tinto Ltd (ASX: RIO) dividends to remain as strong as they are now given how volatile mining earnings can be.

Underlying business and payout growth

Ideally, I only want to invest in businesses with attractive, long-term futures. Therefore, I only want to choose investments that I foresee delivering long-term capital growth due to profit growth and/or balance sheet growth.

The longer an SMSF (or anyone) holds an investment, the more time it has to deliver pleasing compounding.

If a business isn’t improving its underlying value, then it may become harder for that business to maintain/grow its payout.

Owning businesses with rising payouts allows us to feel progressively wealthier as larger dividends arrive at our bank accounts.

ASX shares I’d buy in a SMSF with a dividend yield of more than 7%

There are not too many businesses on the ASX that tick the boxes of what I’m suggesting would suit well for an SMSF.

I’ll highlight a few names that really stand out to me.

WCM Global Growth Ltd (ASX: WQG) is a listed investment company (LIC) that invests in a global portfolio of appealing businesses with growing economic moats and a company culture that helps improve the competitive advantages. Its forward grossed-up dividend yield is expected to be 7.25%, including franking credits. It has grown its annual payout each year since 2019.

Future Generation Australia Ltd (ASX: FGX) is another LIC, which donates 1% of its net assets to youth charities as fund managers work for free to enable that donation. Future Generation Australia’s 2025 annual dividend translates into a grossed-up dividend yield of 7.8%, including franking credits. It has hiked its payout every year since 2016.

Charter Hall Long WALE REIT (ASX: CLW) is a diversified property owner which leases various types of properties on long-term leases, providing significant rental security. It’s expecting to grow its FY26 distribution by 2% in FY26, translating into a forward distribution yield of 7.2%. At the current valuations, I think each of the above ideas can be a strong SMSF pick for a high dividend yield.

The post How I’d aim for a 7% dividend yield in a SMSF appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia and Wcm Global Growth. 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.

I think Xero Ltd (ASX: XRO) is one of the most interesting ASX growth shares to look at right now.

The share price has been hit hard and is down 50% since this time last year, with investors worrying about valuation, slowing growth, and the potential impact of artificial intelligence (AI) on accounting software.

Those concerns are worth taking seriously. But I also think the sell-off has created a much more attractive setup for long-term investors.

At lower prices, Xero starts to look less like an expensive technology stock and more like a high-quality global business going through a reset in expectations.

A stronger business than the share price suggests

Xero has built one of the best software platforms on the ASX, in my opinion.

Its accounting software is used by small businesses, accountants, and bookkeepers across a number of markets, including Australia, New Zealand, the UK, and North America.

That gives it a large addressable market.

The important point for me is that Xero is not just a nice-to-have tool. For many small businesses, accounting software sits at the centre of invoicing, payroll, tax, reporting, and cash flow management.

Once a business and its accountant are using the platform, moving away can be inconvenient and disruptive. That gives Xero a level of stickiness that I think is very valuable over time.

AI could be a help, not just a threat

The big fear around Xero is that AI could disrupt accounting software.

I understand why investors are asking the question. AI is changing software quickly, and it could automate parts of bookkeeping and reporting over time.

But I think there is another way to look at it.

Xero already has the customer relationships, workflow data, integrations, and trusted position inside small businesses. That gives it a strong base to add AI features of its own.

If AI makes the platform easier to use, faster, and more useful, then it could actually increase the value Xero provides to customers.

In my opinion, the winners in software will not necessarily be the companies with the flashiest AI tools. They will be the companies that can embed AI into real workflows where customers already spend time.

That is where Xero has a genuine opportunity.

Profit growth can change the conversation

For years, Xero was mostly valued on revenue growth.

That made sense while the company was investing heavily for scale. But the next stage of the story could be more about profitability.

As Xero grows larger, it should be able to benefit from operating leverage. This essetially means that revenue can rise without costs needing to grow at the same rate.

That is one of the most attractive parts of the software model.

If Xero can keep adding subscribers, lift average revenue per user, and control costs, earnings could grow much faster than revenue over the long term.

This is where I think the market may be too focused on near-term uncertainty.

Foolish takeaway

Xero is unlikely to deliver a straight-line recovery. Sentiment toward tech shares remains fragile, and AI fears may continue to weigh on the share price.

But I think the business itself still has a long runway. It has a sticky product, a global market opportunity, and the potential to use AI to strengthen its platform rather than weaken it.

For patient investors, I think this pullback could be one of the better chances to buy a high-quality ASX growth share at a much more reasonable price.

The post Down 50%, why Xero shares look like a rare ASX opportunity to me appeared first on The Motley Fool Australia.

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• Leading brokers name 3 ASX shares to buy today
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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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Yesterday evening, Austal Ltd (ASX: ASB) updated the contract value for its latest Australian Border Force order to $150.3 million, increasing from the $136 million previously reported.

What did Austal report?

• Correction: Contract price for two Evolved Cape-class Patrol Boats updated to approximately $150.3 million (up from $136 million)
• Contract is for the Australian Border Force
• Austal continues to expand its defence vessel contracts globally

What else do investors need to know?

This correction ensures investors have the accurate contract value for Austal’s recent deal with the Australian Border Force. The contract further strengthens Austal’s position as a leading defence exporter and strategic shipbuilder for the Australian government.

Austal has a major presence both in Australia and overseas, supplying advanced vessels to defence and commercial customers in over 59 countries. The company has now contracted more than 360 vessels globally during its nearly 40-year history.

What’s next for Austal?

Austal will continue delivering on its contract for the two Evolved Cape-class Patrol Boats, with the updated value reflecting the scope of work. The company remains focused on its major defence programs and leveraging its role as the Commonwealth’s Strategic Shipbuilder in Western Australia.

With multi-national shipyards and a sustained pipeline of defence projects, Austal expects to maintain its industry-leading position supplying vessels to governments and agencies worldwide.

Austal share price snapshot

Over the past 12 months, Austal shares have declined 18%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Austal issues correction for Border Force contract price 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 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.

I view Lovisa Holdings Ltd (ASX: LOV) as one of Australia’s top shares because of its existing qualities and how much growth it could deliver in the coming years.

The business is best-known as an affordable jewellery retailer across its global Lovisa store network. It also has a start-up business in the UK called Jewells.

I think it’s one of the leading retail businesses to watch over the next five years because of how much it could expand its reach.

Global growth aspirations

The business has dramatically expanded over the past decade, with its Lovisa network reaching 1,089 locations as reported in its FY26 half-year result.

Its store new work grew 15.4% on the prior year and 6.3% compared to the previous equivalent half.

Over the 12 months to December 2025, it added at least one store to the following markets: Australia, New Zealand, China, Vietnam, South Africa, Botswana, Zambia, the UK, Ireland, Spain, France, Germany, Belgium, the Netherlands, Poland, Italy, Hungary, UAE, USA, Canada, Mexico and its Middle East and Africa franchise.

Those regions offer the company a huge addressable market and a very long growth runway, making it one of Australia’s most compelling shares.

If an ASX share can continue growing at a good pace for a very long time, it can generate great shareholder returns thanks to compounding.

Strong profit growth rate

Lovisa is aiming to grow its earnings over the long-term with its store network expansion, and that’s coming through in the numbers.

Excluding the Jewells business, Lovisa reported that in HY26, its revenue soared 22.7% to $498.1 million (with 2.2% comparable store growth) and net profit after tax (NPAT) climbed by 21.5% to $69.6 million.

I think most businesses on the ASX would be delighted to grow underlying net profit by more than 20%. The profit growth rate is a key reason for my view that it’s one of Australia’s top shares.

Its increasing scale is helping some of its profit margins rise (despite the significant investing in expanding its store network). The core Lovisa business saw gross profit increase by 23.4% and operating profit (EBITDA) rose 24.4%.

According to the forecast on Commsec, the business is valued at 27x FY26’s estimated earnings, with expectations that the company’s earnings per share (EPS) could increase by 23.8% in FY27.

It looks much better value after falling 44% since August 2025, as the chart below shows.

Dividend cash payments

Shareholders consistently benefit from owning the business due to its growing dividend payments, which is another factor which makes this one of Australia’s top shares, in my view.

I think it’s good to see that the business is rewarding shareholders because investors aren’t purely relying on capital growth to see improvements in their financials.

In the HY26 result, Lovisa decided to hike its payout by 6% to 53 cents per share.

The projection on Commsec suggests the business could increase its payout to approximately 99 cents per share in FY27 and then $1.13 per share in FY28.

At the current Lovisa share price, it offers a potential dividend yield of 5.7%, including franking credits, at the time of writing.

These are some powerful factors combining together that could lead to solid returns in the coming years.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

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

Some exchange traded funds (ETFs) are built to track the market broadly. Others are designed to give investors sharper exposure to specific areas of long-term growth.

For investors who already have a foundation in place, these types of funds can add exposure to themes that are reshaping the global economy.

Here are three ASX ETFs that could help supercharge returns over the coming years.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

The first ASX ETF that offers powerful growth exposure is the BetaShares Nasdaq 100 ETF.

This fund gives investors access to many of the companies setting the pace in the US economy. These are businesses shaping how people search, stream, shop, work, advertise, and build digital infrastructure.

Its holdings include companies such as Microsoft (NASDAQ: MSFT), Netflix (NASDAQ: NFLX), Apple (NASDAQ: AAPL), and Broadcom (NASDAQ: AVGO).

Broadcom is a useful example of the depth inside the fund. While some Nasdaq names are consumer-facing, Broadcom sits closer to the infrastructure layer, supplying semiconductors and software used across networking, data centres, and enterprise technology.

That mix of platform companies, software leaders, and infrastructure providers gives the BetaShares Nasdaq 100 ETF exposure to several engines of digital growth in one trade.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

Another ASX ETF that could add growth exposure is the BetaShares Asia Technology Tigers ETF.

It focuses on technology companies across Asia, where digital adoption is still developing in ways that look different from the US market.

Its holdings include companies such as Tencent Holdings (SEHK: 700), PDD Holdings (NASDAQ: PDD), and Taiwan Semiconductor Manufacturing Company (NYSE: TSM).

PDD Holdings shows how quickly new models can scale in the region. Its platforms have gained traction by focusing on value, mobile commerce, and cross-border retail, tapping into large consumer markets both inside and outside China.

This gives the BetaShares Asia Technology Tigers ETF exposure to a mix of ecommerce, semiconductors, online services, and digital platforms across some of the world’s most important growth markets.

BetaShares Global Cybersecurity ETF (ASX: HACK)

A third ASX ETF that could appeal to growth-focused investors is the BetaShares Global Cybersecurity ETF.

Cybersecurity spending is no longer optional for companies. As more activity moves into cloud systems, remote networks, and digital payments, protecting data and identity has become a core business function.

This fund provides exposure to companies operating across this expanding security ecosystem.

Its holdings include companies such as Cloudflare (NYSE: NET), CrowdStrike (NASDAQ: CRWD), and Fortinet (NASDAQ: FTNT).

Cloudflare highlights how cybersecurity is blending with broader internet infrastructure. Its network helps businesses improve security, performance, and reliability across web applications and online services.

So, with demand for cybersecurity services expected to grow materially over the next decade, the companies held by the BetaShares Global Cybersecurity ETF stand to benefit greatly.

The post 3 incredible ASX ETFs to buy to supercharge your portfolio appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, Broadcom, Cloudflare, CrowdStrike, Fortinet, Microsoft, Netflix, Taiwan Semiconductor Manufacturing, and Tencent. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, CrowdStrike, Microsoft, and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telstra Group Ltd (ASX: TLS) shares have had a strong 12 months, rising around 18% to $5.36.

Based on CommSec consensus estimates, Telstra is expected to generate earnings per share of 19.8 cents in FY26 and 20 cents in FY27. That puts the shares on a fairly full-looking price-to-earnings ratio of 27.

Even so, I think there are still good reasons to consider buying Telstra shares in May, particularly for investors focused on income, reliability, and steady long-term returns.

A dividend story that still looks attractive

The first reason I like Telstra is the dividend.

According to CommSec, the market expects dividends of 21 cents per share in FY26 and 21.5 cents per share in FY27. At the current share price, that implies forward dividend yields of around 3.9% and 4.0%.

That is not the highest yield on the ASX, but I think the quality of the income stream is important.

Telstra’s most recent results showed the board declared a 10.5 cents per share interim dividend, up from 9.5 cents a year earlier, with the dividend 90.5% franked. Management said the dividend was supported by strong cash earnings and its aim remains to deliver a sustainable and growing dividend.

For income investors, I think that combination of yield, franking, and dividend growth potential is appealing.

The mobile business is still performing well

The second reason is the strength of Telstra’s mobile business.

In the first half of FY26, Telstra said mobile EBITDA grew by $93 million, supported by higher average revenue per user and more customers choosing its network. Mobile services revenue increased 5.6%.

That is exactly the kind of performance I want to see from Telstra.

The mobile network is the heart of the investment case, in my opinion. Telstra has a strong brand, leading network coverage, and a customer base that appears willing to pay for quality and reliability.

This is not a business that needs explosive growth to work as an investment. If it can keep lifting mobile earnings, controlling costs, and supporting dividends, I think shareholders can do well over time.

Cost discipline and capital management

The third reason is the way Telstra is managing the business.

Its half-year results showed positive operating leverage of 3.1 percentage points, helped by cost discipline and efficiency gains. Telstra reduced underlying operating expenses by $179 million, or 2.4%, which more than offset pressure from rising costs.

That is a useful sign. In a mature business like Telstra, cost control can have a meaningful impact on earnings and cash flow. Small improvements can add up because the company operates at such scale.

Telstra also increased its on-market share buyback from up to $1 billion to up to $1.25 billion. Management said the buyback is expected to support earnings and dividend per share growth.

I like that because it suggests the company is using its balance sheet to create additional shareholder value.

Foolish takeaway

Telstra shares are no longer obviously cheap after their strong run. But I still think they could be worth buying in May.

The dividend profile looks solid, the mobile business continues to perform well, and management is showing good cost discipline while returning capital to shareholders.

For investors seeking a relatively defensive ASX income share with steady earnings potential, I think Telstra still deserves a place on the watchlist.

The post 3 reasons to buy Telstra shares in May appeared first on The Motley Fool Australia.

More reading

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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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Domino’s Pizza Enterprises Ltd (ASX: DMP) shares started the week with another loss. The ASX consumer stock has slipped 1.5% to $16.14 at the time of writing.

That adds to an already painful stretch for investors. Domino’s shares are now down about 23% in 2026 and roughly 36% over the past 12 months. In contrast, the S&P/ASX 200 Index has risen around 7% over the same period.

So, what’s driving the weakness and is there any sign of a turnaround?

US Domino’s weakness rattles outlook

The latest pressure appears to stem from offshore. An update from Domino’s Pizza Inc (NASDAQ: DPZ) unsettled investors after the US giant reported same-store sales growth of just 0.9%, well below expectations of 2.3%. It also downgraded its full-year outlook, pointing to softer demand in a challenging consumer environment.

That matters more than it might seem. While Domino’s Pizza Enterprises operates across Australia, Europe, and Asia, sentiment toward the broader brand is heavily influenced by US performance. If the world’s largest Domino’s operator is struggling to drive growth, investors worry similar pressures could be affecting other regions.

Cost-of-living pressures and weaker discretionary spending are key concerns. Pizza may be relatively affordable, but it is still discretionary, and consumers are increasingly tightening their budgets. That raises questions about order volumes, pricing power, and overall earnings growth across the network.

Time to buy Domino’s shares?

After such a steep sell-off, Domino’s shares are now trading at a significantly lower valuation multiple than in recent years. On the surface, that might suggest a buying opportunity. However, some analysts argue the lower price simply reflects a weaker growth outlook.

Bell Potter recently initiated coverage with a hold rating and an $18 price target. While acknowledging the more attractive valuation, the broker believes it is justified given expectations for only modest earnings growth in the near term.

Across the market, views remain divided. Data from TradingView shows that most analysts sit on the fence, with 10 out of 18 rating the stock as a hold. Five are more optimistic with buy ratings, while three recommend selling.

The average price target is about $20.07, implying potential upside of roughly 25% from current levels. But the range of forecasts is wide, stretching from bullish scenarios of around 77% upside to bearish calls suggesting a further 20% downside to about $13.00.

That spread highlights the uncertainty facing the business right now.

Foolish Takeaway

Domino’s shares have been under sustained pressure, and the latest US update has only added to concerns about slowing demand. While the stock now looks cheaper, the key issue is whether the company can stabilise earnings and return to consistent growth.

Until that becomes clearer, Domino’s may continue to sit in an uncomfortable middle ground — not quite cheap enough to be a clear bargain, but not strong enough to restore investor confidence.

The post What on earth’s going on with Domino’s shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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 Domino’s Pizza and Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX tech stock Catapult Sports Ltd (ASX: CAT) jumped 5.3% to $3.37 at the start of the week, offering a welcome lift for investors after months of heavy selling.

It’s a step in the right direction. But the bigger picture still tells a tougher story. The ASX tech stock is down 19% year to date, has fallen 48% over the past six months, and has shed more than half its value since peaking at an all-time high in late October.

So, is this the start of a turnaround for Catapult shares or just a temporary bounce?

Strong foothold in elite sport

Catapult operates in the fast-growing sports technology space, providing performance analytics and wearable tracking systems to elite teams around the world. Its technology is used across a wide range of sports, including football, rugby, cricket, basketball, and American football.

The company works with more than 4,000 teams globally, including organisations in major leagues such as the NFL, NBA, and English Premier League. Its products help teams track athlete performance, manage injury risk, and optimise training through real-time data insights.

This positioning gives Catapult shares a strong foothold in elite sport, where marginal performance gains can translate into significant competitive advantages.

Market set to double by 2030

The broader market opportunity is also expanding rapidly.

The global professional sports technology market is valued at around US$36 billion in 2025 and is forecast to grow to US$72 billion by 2030. That growth is being driven by increasing demand for data-driven decision-making, athlete monitoring, and fan engagement tools.

Catapult’s established customer base and recurring revenue model put it in a solid position to benefit from these tailwinds.

Fierce competition

However, the company is not without risks. Despite strong revenue growth in recent years, profitability has been a key concern for investors. Like many tech companies, Catapult has had to balance expansion with cost control and any missteps on margins can weigh heavily on sentiment.

There is also competitive pressure. The sports analytics space is becoming increasingly crowded, with new entrants and in-house solutions from teams themselves posing potential challenges over time.

Execution will be critical. Investors will want to see consistent earnings growth, improved margins, and evidence that the business can scale sustainably.

What next for Catapult shares?

On the outlook front, analysts remain optimistic. According to broker consensus, Catapult shares carry a strong buy rating. Analysts have set an average price target of $5.44, implying potential upside of around 61% over the next 12 months. The most bullish forecast sits at $7.63 with a 125% upside.

Bell Potter is also positive, maintaining its buy rating with a $4.75 price target. This points to a potential gain of roughly 40%.

Foolish Takeaway

The bottom line is that ASX tech stock Catapult operates in an attractive, high-growth industry with a strong global footprint. But after such a steep sell-off, the market is looking for proof that the company can translate that opportunity into consistent financial performance.

This week’s rebound is encouraging, but whether it marks a true turning point for Catapult shares will depend on what comes next.

The post After declining nearly 50% in 6 months, has this ASX tech stock finally turned the corner? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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 Catapult Sports. The Motley Fool Australia has positions in and has recommended Catapult Sports. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Monday, the S&P/ASX 200 Index (ASX: XJO) was out of form and ended the day lower. The benchmark index fell 0.35% to 8,697.1 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to drop again

The Australian share market looks set to drop again on Tuesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 66 points or 0.75% lower. In the United States, the Dow Jones tumbled 1.1%, the S&P 500 dropped 0.4%, and the Nasdaq fell 0.2%.

Oil prices jump

It looks like ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices stormed higher overnight. According to Bloomberg, the WTI crude oil price is up 3.3% to US$105.30 a barrel and the Brent crude oil price is up 5.45% to US$114.05 a barrel. This follows news that Iran has attacked UAE for the first time since the ceasefire.

Westpac half-year results

All eyes will be on Westpac Banking Corp (ASX: WBC) shares on Tuesday when the big four bank releases its eagerly anticipated half-year results. The team at Citi is expecting Australia’s oldest bank to report a first-half cash profit of $3.6 billion. This is a touch below consensus estimates due to Citi’s belief that credit provisions will be higher than expected.

Gold price sinks

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a difficult session on Tuesday after the gold price tumbled overnight. According to CNBC, the gold futures price is down 2.6% to US$4,524.4 an ounce. A stronger US dollar and inflation fears weighed on the precious metal.

Coles shares downgraded

Coles Group Ltd (ASX: COL) shares have been hit with a broker downgrade from Bell Potter this morning. According to the note, the broker has downgraded the supermarket giant’s shares to a hold rating (from buy) but with an improved price target of $22.80 (from $22.35). It said: “Trading a discount to WOW, there is a relative value argument to be made, particularly given the more limited exposure to discretionary channels in the near term, however we see more compelling GARP opportunities elsewhere in the consumer staples space at this juncture.”

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro 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.