Author: openjargon

The market has taken a beating this month as volatility surged, interest rate uncertainty spooked investors, and tech valuations came under pressure. While that kind of pullback can feel unsettling, it often creates some of the best opportunities long-term investors will see all year.

Several high-quality Australian stocks have been dragged down with the broader market. And for patient investors, that combination of temporary weakness can be a gift.

With that in mind, here are three outstanding Australian stocks that analysts think look compelling after the recent selloff.

CSL Ltd (ASX: CSL)

CSL was for a long time one of the most reliable long-term compounders on the Australian share market. However, its shares have been hit hard over the past year due to concerns around margin recovery, restructuring costs, and uncertainty surrounding the planned Seqirus demerger.

But zoom out, and the long-term investment case remains extremely strong. CSL’s core plasma business is benefiting from growing collections, improving efficiencies, and rising global demand for critical therapies. The biotech company continues to invest heavily in its pipeline, with new treatments and market expansions expected to support earnings over the decade ahead.

Importantly, CSL’s valuation has become materially more attractive. For example, Macquarie Group Ltd (ASX: MQG) currently has an outperform rating and $275.20 price target on its shares. This implies potential upside of more than 50% from current levels.

NextDC Ltd (ASX: NXT)

Another Australian stock that has fallen heavily from its highs is NextDC.

It has been caught up in the tech-led market pullback, despite its exceptional underlying momentum. The company continues to expand aggressively to meet soaring demand for data storage, cloud services, and high-performance computing. These are structural trends that remain in their early innings.

With hyperscale customers scaling up AI workloads and enterprises shifting more operations into the cloud, NextDC is positioned squarely at the centre of one of the most powerful megatrends of the next decade. Its pipeline of new facilities, long-term contracted revenue, and high customer stickiness give the business a remarkable degree of predictability.

Macquarie also recently put an outperform rating on this stock with a $20.90 price target. This suggests that upside of over 50% is possible over the next 12 months.

TechnologyOne Ltd (ASX: TNE)

Finally, TechnologyOne’s share price crash this week has come despite the company delivering another year of record profit, record ARR, and strong cashflow. The market’s reaction appears more about valuation resets and profit-taking than any deterioration in fundamentals.

The core business remains in excellent shape. TechnologyOne continues to win new customers across government, education, and corporate markets, while its SaaS+ model is transforming the speed and efficiency of ERP deployments. ARR is growing strongly, its UK expansion is accelerating, and the company has deepened its product moat through heavy investment in R&D and AI-driven enhancements.

Shaw and Partners thinks that investors should be buying the dip. This morning, the broker upgraded this Australian stock to a buy rating with a $37.30 price target. This implies potential upside of almost 30% from current levels.

The post 3 of the best Australian stocks to buy after the market selloff appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL, Nextdc, and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, and Technology One. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended CSL and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Light & Wonder Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has recommended Gqg Partners, Light & Wonder Inc, and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a lot of ASX shares to choose from on the Australian market.

To narrow things down, let’s take a look at three that Ord Minnett is bullish on right now.

Here’s what it is recommending:

Brazilian Rare Earths Ltd (ASX: BRE)

If you are looking for rare earths exposure, Ord Minnett thinks that Brazilian Rare Earths could be the way to do it. Though, only if you have a high tolerance for risk. The broker has put a speculative buy rating and $6.30 price target on its shares.

It believes the company is well-placed to monetise its rare earth discoveries and bauxite resources. It said:

Its shares have climbed 145% since 20 August but we expect there is much more to come as it progresses plans to monetise its rare earth discoveries and bauxite resources. Carester are the French REO experts also assisting Iluka Resources (ILU) with technical advice for its Eneabba refinery. Carester is also building the France–Japan Caremag refinery in France using feedstock of recycled magnets and rare earth oxide (REO) concentrates, which is due to start in late 2026. ‍ Brazil Rare Earths’ provincial-scale tenements in Brazil include multiple rare earth deposits and 568 million tonnes(Mt) of bauxite, including 98Mt of direct shipping ore (DSO).

Siteminder Ltd (ASX: SDR)

Another ASX share that has caught the eye of Ord Minnett is travel technology company Siteminder. It has put a buy rating and $7.97 price target on its shares.

The broker feels that the market is seriously undervaluing its shares at current levels. It explains:

The SiteMinder investor day led Ord Minnett to reiterate its view that the current share price reflects a ‘ground zero’ view of the future. In other words, the market is attributing little or no value to the potential upside from the Channels Plus (C+) and Dynamic Revenue Plus (DRP) products. We consider this approach unwise given the weight of industry feedback we have received over the last 18 months.

Universal Store Holdings Ltd (ASX: UNI)

A third ASX share that has been given the thumbs up by its analysts is Universal Store. Ord Minnett has an accumulate rating and $9.60 price target on its shares.

It feels its shares are good value given its positive growth outlook. The broker said:

Ord Minnett cut its EPS forecasts for FY26–28 by 4–6% to reflect management’s guidance that sales comparisons will become more challenging in the remainder of FY26, and that Universal will continue to reinvest in the business, prioritising long-term growth over short-term profits. The company’s price-to-earnings ratio is in line with the average listed ASX retailer. ‍With a $17 million net cash position, expected 10% per annum EPS growth over two years, and further market share opportunities as competitors exit, we retain a Accumulate rating on Universal. Our price target falls to $9.60 from $9.80 to reflect the EPS downgrades.

The post Why Ord Minnett is bullish on these ASX shares appeared first on The Motley Fool Australia.

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

Back in November of 2021, it seemed Woolworths Group Ltd (ASX: WOW) shares could do no wrong.

The company had emerged relatively unscathed from the worst of the COVID-19 pandemic. Profits were healthy, the dividends were flowing and, just a few months prior, the ‘Fresh Food People’s stock had hit a new record high of over $42 a share.

What a difference four years can make.

Today, Woolworths investors are at the tail end of the worst two years the company has faced since the Masters hardware debacle ended a decade ago.

As it currently stands, Woolworths shares are languishing at just $27.85 each (at the time of writing) after hitting a new 52-week (and seven-year) low of $25.51 last month.

Nothing seems to have gone right for this veteran supermarket operator of late. Last year’s CEO transition was less than seamless for one. For another, the company has continued to be outshone by its arch-rival Coles Group Ltd (ASX: COL). The market found the latest set of full-year results, released back in late August, particularly disturbing. The company’s shares were down almost 15% on the day they came out.

Long-term Woolworths investors’ pain has been exacerbated by the valuation premium Woolworths shares used to enjoy. This gave the company a higher ledge to fall off when sentiment turned. It used to be common for Woolworths shares to trade on a price-to-earnings (P/E) ratio of over 35. Today, its unadjusted earnings multiple is under 24.

How much have Woolworths shares lost over the past four years?

But time to put some numbers to Woolworths’ pain. If you picked up Woolworths shares exactly four years ago, you would have been able to buy them for $40.22 (the closing share price on 19 November 2021).

If an investor had bought $5,000 worth of Woolworths shares back then, that parcel would be worth just $3,462.20 today. That’s not factoring in brokerage or other costs.

That’s a loss worth 30.76%. Ouch.

Of course, Woolworth shares have also paid out dividends over those past four years though, which do mitigate these losses somewhat. Those dividends amounted to a collective $4.24 per share, meaning our $5,000 would have attracted approximately $527.10 in dividends. Thus, we are left with a final figure of $3,989.30 from our original $5,000. A loss of 20.21%.

So I can conclude by saying that ‘thank goodness I didn’t buy Woolworths shares four years ago’. Hopefully, the next four years will be kinder to this ASX 200 veteran.

The post Thank goodness I didn’t invest $5,000 in Woolworths shares 4 years ago appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

TechnologyOne Ltd (ASX: TNE) shares have been under significant pressure this week.

The enterprise software provider’s shares sank 17% on Tuesday despite releasing a record result for FY 2025.

Has this created a buying opportunity? Let’s see what analysts are saying about the tech stock.

Should you buy TechnologyOne shares?

According to a note out of Bell Potter, its analysts have retained their hold rating on the company’s shares with a reduced price target of $33.00.

Commenting on the result, the broker said:

FY25 PBT of $181.5m was close to in line with our forecast of $182.4m and VA consensus of $181.8m. The result was still ahead of guidance, however, which was PBT growth of 13-17% and the result was 19% growth.

Bell Potter advised that it has trimmed its valuation to reflect a re-rating in the tech sector this month. It adds:

We have reduced the multiples we apply in the PE ratio and EV/EBITDA valuations from 80x and 42.5x to 65x and 35x due to the recent de-rating in the tech sector and the multiples being applied. We have also increased the WACC we apply in the DCF from 7.9% to 8.1% for the same reason.

The net result is a 13% decrease in our PT to $33.50 which is <15% premium to the share price so we maintain our HOLD recommendation. We note the outlook is little changed and we still forecast strong double digit growth over the medium term but the current FY26 PE ratio of c.60x is still demanding in our view and equates to a PEG ratio of around 3x.

Over at Macquarie Group Ltd (ASX: MQG), its analysts are also sitting on the fence with TechnologyOne shares. This morning, they have retained their neutral rating with a $28.20 price target.

Macquarie is concerned that it may get worse before it gets better for the company. The broker commented:

Long-term story remains attractive, but it may get worse before it gets better. Valuation rebased post-result, but slowing growth, higher costs, and a lack of clear positive catalysts in the near-term while still trading at ~62x NTM PER suggests there may be further downside risk. Retain Neutral.

Broker upgrade

Finally, the team at Morgans doesn’t agree. Its analysts have upgraded TechnologyOne’s shares to an accumulate rating with a $34.50 price target. They said:

TNE’s FY25 result was largely in line with our expectations with the group delivering, PBT growth of +19% to $181.5m ahead of its 13-17% guidance range, and in line with consensus. The negative share price reaction appears to have been driven by softer than expected ARR/NRR print, which saw a 2% miss to ARR growth expectations vs consensus, despite this, the group continues to deliver, with ARR of $554.6m (+18% YoY), which along with its NRR growth of 115% continues to see TNE Ontrack to achieve its long-term ARR growth aspirations. We modestly pare our EPS forecasts by 1-3% in FY26-28F. and move to an ACCUMULATE rating, with our target price $34.50 now reflecting a TSR of +19% following TNE’s post result share price movement.

The post Should you buy TechnologyOne shares after they crashed 17%? appeared first on The Motley Fool Australia.

More reading

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