Author: openjargon

Yesterday was mostly a stellar day for the S&P/ASX 200 Index (ASX: XJO). 

Australia’s benchmark index rose a strong 1.66%.

However two ASX 200 stocks that didn’t share the success yesterday were Computershare Ltd (ASX: CPU) and ResMed Inc (ASX: RMD). 

These ASX 200 shares fell 3.3% and 4.7% respectively. 

Following this sell-off, it could be an opportunity for investors to enter at a more attractive price. 

Here’s what experts are saying. 

Computershare Ltd (ASX: CPU)

Computershare suffered a 3.3% fall yesterday following the company’s 1H FY26 Results.

It is an Australian financial administration company offering global services in corporate trusts, stock transfers, and employee share plans.

The company reported:

• Management revenue up 3.9% compared to 1H FY25
• Management EPS rose 3.9% to 72.2 US cents
• ROIC exceeded 36%
• Margin income of $372.9 million, down 5.4%
• Interim dividend lifted to 55 AU cents per share (30% franked), up 22% on last year

Overall, this appeared to be a strong result. 

Even more positive, is the balance sheet strength and upgraded FY26 guidance from the ASX 200 company. 

However investors were apparently expecting more. 

Following yesterday’s drop, it now sits close to its 52-week low at $31.29 per share. 

It is down roughly 25% from this time last year. 

The ASX 200 stock now appears to be undervalued. 

Analysts at Citi placed a buy rating on this battling industrials stock in January. 

This came with a price target of $39.60. 

From yesterday’s closing price, that indicates an upside of approximately 26.5%. 

ResMed Inc (ASX: RMD)

ResMed shares also struggled yesterday, falling 4.7%. 

The company develops, manufactures, and distributes medical devices – such as flow generators, CPAP masks, and accessories – and cloud-based software applications that diagnose, treat, and manage a range of respiratory disorders including sleep apnea, chronic obstructive pulmonary disease (COPD), and neuromuscular disease.

It closed yesterday at $36.79, which is well below recent targets from brokers. 

Ord Minnett currently has a buy rating and $43.70 price target on ResMed shares.

Elsewhere, Morgans has a buy rating and price target of $47.73 thanks to the company’s second-quarter FY2026 results, which beat expectations across the board. 

ResMed delivered double-digit growth in revenue and earnings, expanded its gross margins, and generated strong cash flow.

Due to improved operating leverage, Morgans has slightly increased its earnings forecasts and valuation for the company. 

From yesterday’s closing price, the updated target from Morgans indicates an upside potential of almost 30%. 

The post Bargain buys! – Scoop up these ASX 200 stocks after yesterday’s crash appeared first on The Motley Fool Australia.

More reading

• My 10 best ASX shares to buy in February
• Why Computershare shares are wobbling despite a solid half
• How to go from zero to $50,000 with ASX shares
• Computershare lifts outlook and dividend after solid 1H26 earnings
• 5 amazing ASX shares that could build serious wealth for investors

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

The tech sector has been a difficult place to invest in 2026.

Due to concerns over artificial intelligence (AI) disruption, ASX software shares have been sold off.

Bell Potter has been looking at the sector and has given its take on recent selling.

What is the broker saying about AI and ASX tech shares?

Commenting on what has caused the selling, the broker said:

The recent market retreat was partly driven by Anthropic’s release of various specialised plug-ins for its agentic AI platform. By introducing tools for legal, sales, finance, and analytics applications, Anthropic has heightened fears that AI-native models will fundamentally disrupt or replace incumbent software providers.

But don’t worry, because it isn’t the end of ASX tech shares. Far from it, according to Bell Potter. It adds:

The recent software sell off was indiscriminate, but we see this as overblown and do not believe AI will displace every company. Instead, we see an ‘AI-augmented’ future for many software companies. By being selective, investors can now find high-quality companies trading at attractive valuations.

Which shares should you buy?

While the broker’s top pick globally is Microsoft (NASDAQ: MSFT), it has named its preference on the ASX boards. That tech share is WiseTech Global Ltd (ASX: WTC).

Rather than replacing the logistics solutions technology company, Bell Potter believes AI could enhance its platform. It said:

On the ASX, WiseTech (WTC.AX) remains our analysts’ top pick. Trading at a 12-month forward P/E of 37x, the stock appears undervalued relative to its 30% earnings growth and 10-year historical average of 75x. While AI disruption remains a risk, WTC possesses many of the defensive attributes identified above; in fact, we believe AI could actually enhance the power of WTC’s software rather than displace it.

Bell Potter currently has a buy rating and $87.50 price target on WiseTech’s shares.

Based on its current share price of $50.94, this implies potential upside of 72% for investors over the next 12 months.

Anything else?

It is also worth noting that in a separate note, the broker has named another ASX tech share as a buy.

This morning, Bell Potter has retained its buy rating on Catapult Sports Ltd (ASX: CAT) shares with a trimmed price target of $5.50. This implies potential upside of 55% for investors from current levels. It said:

Catapult has a March year end so will not report its next result till May and we do not expect much if any news flow between now and then. There is some potential for Catapult to be removed from the S&P/ASX 200 Index at the next rebalance in March – given the recent price fall and despite the equity raising in November – after only being included in September last year.

This potential removal has perhaps also contributed to the fall in the share price. In its favour, however, Catapult is still one of the few good quality tech stocks in the mid cap space – even if it gets removed from the 200 but stays in the 300 – and so any rebound in the sector will likely see Catapult move in tandem.

The post Buy this ASX tech share after the AI software selloff appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• 3 of my high-conviction ASX 200 share picks for February
• 5 things to watch on the ASX 200 on Wednesday
• Did you know WiseTech shares are trading at their biggest discount in their history?
• How undervalued are Wisetech shares? Two brokers have their say

ASX industrials stock SGH Ltd (ASX: SGH) is in focus after the company delivered half-year results yesterday. 

Following earnings results, the company saw its share price climb 3.5% higher. 

For those unfamiliar, SGH is a leading Australian diversified operating and investment group with market leading businesses and investments in industrial services, energy and media sectors.

What did the company report?

In yesterday’s results this ASX industrials stock reported:

• Revenue of $5.4 billion, down 2% from 1HY25
• EBIT of $844 million, flat year-on-year, up 22% on 2H FY25
• NPAT of $518 million, up 2% on the prior corresponding period
• EBITDA of $1.1 billion, up 1%
• Operating cash flow of $1.1 billion, up 32%
• Interim fully franked dividend of 32 cents per share, up 7%

Investors were seemingly pleased with the results, as the stock price climbed more than 3%. 

It is now up an impressive 8.7% already in 2026. 

For context, the S&P/ASX 200 Industrials (ASX: XNJ) index is up just 0.21% since the start of the year. 

What is Bell Potter’s updated outlook?

Following the results, the team at Bell Potter provided updated guidance on this ASX industrials stock. 

Bell Potter said SGH’s first-half FY26 result was slightly better than expected. 

This was mainly due to stronger profits from its investments rather than its core businesses. 

The company reported underlying EBIT (uEBIT) of $820 million, which was broadly in line with expectations. 

The overall 4% “beat” came from higher-than-expected profits from equity-accounted investments, particularly Beach Energy Ltd (ASX: BPT) and Seven West Media Ltd (ASX: SWM)

Together these contributed $24 million more than forecast. Excluding this boost, the core result was largely as expected.

Other individual businesses under the SGH umbrella largely performed in line with expectations. 

The company also declared a fully franked interim dividend of 32 cents per share, which was in line with expectations.

Price target increase

Based on this guidance, Bell Potter increased its price target to $56.00 (previously $51.80). 

The broker also maintained its buy recommendation. 

From yesterday’s closing price of $50.91, this indicates an upside of 10%. 

Our Target Price lifts to $56.00/sh (up from $51.80/sh) due to model roll-forward and a more optimistic medium-term outlook for Boral sales. We believe operating conditions are set to improve for Boral and Coates from cycle-lows in Infrastructure and residential construction markets. 

With net leverage currently at multi-year lows, SGH has even greater financial flexibility to deliver accretive M&A, a major re-rate catalyst.

The post What is Bell Potter’s view on this ASX industrials stock that jumped 3% on earnings results? appeared first on The Motley Fool Australia.

More reading

• SGH delivers strong first-half FY26 earnings with higher dividend

Motley Fool contributor Aaron Bell 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.

I’ve been looking at the market this month and have identified a number of ASX shares that I think could be buys. 

These are businesses I understand, believe in, and would be happy to hold through ups and downs. Some are market leaders, some are in recovery mode, and others are still proving their growth stories. 

Together, they give me a mix of quality, growth, income, and optional upside.

Commonwealth Bank of Australia (ASX: CBA)

CBA remains the benchmark for Australian banking in my view. Its scale, pricing power, and customer stickiness are incredibly hard to replicate. Yes, it trades at a premium, but I believe that premium reflects reliability and execution rather than excess optimism.

Xero Ltd (ASX: XRO)

Xero has been sold off alongside global software peers, but I don’t think the business itself has missed a beat. Subscriber growth is holding up, margins are improving, and its ecosystem advantage remains intact. Long term, I still see this as a business that can quietly compound value.

BHP Group Ltd (ASX: BHP)

BHP offers a combination I really like. That is copper exposure, strong free cash flow, and a balance sheet that’s built to handle cycles. Even with the share price near highs, I’m comfortable owning it for income today and long-term demand driven by electrification.

Hub24 Ltd (ASX: HUB)

Hub24 is an ASX share that continues to impress me with its ability to take market share. Adviser trust, product depth, and consistently strong net inflows give me confidence in the growth runway. I still think this investment and superannuation platform is a structural growth story that has a long way to run.

Megaport Ltd (ASX: MP1)

Megaport is definitely the higher-risk name on this list, but I think the upside is material. Demand for its flexible, software-defined networking is growing strongly. If execution continues, I believe sentiment could shift faster than many expect.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of the most consistent software shares on the ASX, in my opinion. Recurring revenue keeps rising, churn remains low, and margins are strong. It’s not flashy, but I really like the way it compounds steadily over time.

Wesfarmers Ltd (ASX: WES)

Wesfarmers gives me exposure to high-quality retail cash flows backed by disciplined capital allocation. Bunnings alone justifies long-term ownership in my eyes, with additional optional upside from the rest of the portfolio.

Qantas Airways Ltd (ASX: QAN)

Qantas looks like a very different ASX share to the one we saw a few years ago. Capacity discipline, a newer fleet, and improving dividends make this more than just a cyclical airline play in my view.

Zip Co Ltd (ASX: ZIP)

Zip has clearly moved past survival mode. With tighter credit settings and a leaner footprint, I don’t think the buy now, pay later company needs explosive growth to deliver decent returns. If it simply keeps executing, I think the upside could surprise.

ResMed Inc. (ASX: RMD)

ResMed continues to deliver robust revenue and earnings growth, supported by global demand for sleep and respiratory care. For a healthcare leader with genuine global reach, I’m happy to add on weakness and hold long term.

Foolish takeaway

This isn’t about finding the perfect entry point. It’s about owning businesses I genuinely believe can grow, adapt, and return capital over time. For me, these 10 ASX shares fit that bill and are names I’d be comfortable backing from here with a long-term mindset.

The post My 10 best ASX shares to buy in February appeared first on The Motley Fool Australia.

More reading

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• I would skip Northern Star shares and buy these ASX stocks
• Here’s the outlook for CBA shares in 2026
• CBA share price jumps 8% on strong half-year results
• Why AGL, CBA, Domino’s, and James Hardie shares are jumping today

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia, Hub24, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24, Megaport, ResMed, Technology One, Wesfarmers, and Xero. The Motley Fool Australia has positions in and has recommended ResMed and Xero. The Motley Fool Australia has recommended BHP Group, Hub24, Technology One, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With earnings season in full swing, the team at Morgans has provided fresh analysis on ASX shares Dexus Convenience Retail REIT (ASX: DXC) and Beach Energy Ltd (ASX: BPT). 

Both companies released HY26 results over the last week. 

What did the companies report?

Dexus Convenience Retail REIT wholly owns a portfolio of service station and convenience retail assets.

It released its earnings results for the six months to 31 December 2025 this week. 

The company confirmed an interim distribution of 10.45 cents per security and confirmed its previously provided FY26 guidance.

Highlights included a high occupancy of 99.9% maintained, and a portfolio valuation uplift of $19.8 million, supporting a 4.4% increase in Net Tangible Assets (NTA) per security to $3.80. 

Meanwhile, oil and natural gas producer Beach Energy released FY26 half year earnings results last week. 

The company reported 1H FY26 underlying EBITDA of $558m and underlying NPAT of $219m. 

Both of these came in ahead of expectations.

An interim fully franked dividend of 1cps was also declared. 

What is Morgans’ take on these ASX shares?

The team at Morgans said Dexus Convenience REIT delivered a solid 1H26 operating result. 

It noted that the company has agreed to acquire two fund-through developments (~$35m combined), consistent with its ongoing portfolio repositioning toward metro and highway locations. 

Portfolio fundamentals remain sound, supported by long-dated leases, high occupancy and a tenant base weighted toward national operators, while gearing sits at the lower end of the target range, providing balance sheet capacity to fund the development pipeline.

The broker sees this ASX REIT as trading at a 26% discount to NAV.

It has placed an accumulate rating on these ASX shares along with a $2.90 target price.

Dexus Convenience REIT closed trading yesterday at $2.83. 

For Beach Energy shares, Morgans said the noisy 1H26 result was hard to analyse. 

Pushing its accounting treatments harder than its operations leaves us concerned around BPT’s forward FCF profile. Gradually declining reserves could suppress BPT’s valuation until it makes an acquisition, a difficult position to be in.

Based on this guidance, Morgans has downgraded its rating to trim (from hold), with an updated $1.09 target price.

Beach Energy shares closed yesterday at $1.13 each. 

Foolish takeaway 

Based on the guidance out of Morgans yesterday, it seems both of these ASX shares are close to fairly valued. 

However elsewhere, Bell Potter is more optimistic on Dexus Convenience REIT shares. 

The broker has a $3.25 price target along with a buy recommendation.

This indicates an upside of almost 15%. 

The post What’s Morgans’ view on these ASX shares following earnings results? appeared first on The Motley Fool Australia.

More reading

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• Broker names 3 ASX shares to buy this week
• 5 things to watch on the ASX 200 on Wednesday
• Guess which ASX energy share is rocketing 14% today on a JV deal with Beach Energy
• Broker tips 16% upside for this ASX REIT

Motley Fool contributor Aaron Bell 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.

There aren’t too many Australian stocks on our market that I would be generous enough to call a ‘forever hold’. After all, the future is usually only obvious in hindsight. And forever is an awfully long time.

For a company to be called a ‘forever hold’, we must have absolute confidence that it produces a good or service that is highly likely to remain in demand in decades’ time, for one. But it must also, arguably, have a strong track record of moving with the times and always keeping its shareholders at the forefront of its priorities.

I believe Washington H. Soul Pattinson and Co Ltd (ASX: SOL) is one of those rare Australian stocks.

Washington H. Soul Pattinson, or Soul Patts for short, is a diversified investment house that invests in an underlying, diversified portfolio of assets it manages on behalf of its investors. This portfolio is huge in scope and scale, holding assets that range from other blue chip ASX shares to private credit, venture capital and unlisted assets.

Australians are almost certainly going to be looking for a reputable investing manager to look after and build their wealth for time immemorial. So that’s the first box of our ‘forever hold’ criteria ticked.

Why this Australian stock could be a forever hold

But what of our other requirements? Well, I think Soul Patts has these covered, too. And covered well.

This is a company that has been moving with the times for more than a century. Yep, Soul Patts first listed on the ASX way back in 1903, but has actually been around in some form or another for longer than the ASX (or its predecessor, the Sydney Stock Exchange) itself.

The past 25 years have arguably seen more global economic disruption than any other period in Soul Patts’ life, given the rise of the internet and the seismic changes it has unleashed worldwide. Yet, this Australian stock has managed to ride the wave without missing a beat.

In September last year, the company gave the markets an update, noting that Soul Patts investors had enjoyed a total return (share price growth plus dividend returns) of 13.7% per annum over the 25 years to 23 September 2025. That’s a whopping 5.7% per annum more than the broader market. Soul Patts also outperformed over the three-, five-, and ten-year periods to that date.

Past performance is never a guarantee of future success, of course. But it’s certainly worth more than nothing.

Not only that, but Soul Patts also possesses the best dividend track record on the ASX. This Australian stock’s shareholders have enjoyed an annual dividend increase every single year since 1998. That’s quite a feather in this company’s hat.

So I think Soul Patts is an Australian stock that ticks all of the boxes for a ‘forever hold’ investment. And right now, at just over $38 a share, Soul Patts shares are down by more than 15% from the 52-week high of $15.14 that we saw in September last year. Take that how you will.

The post This Australian stock is 15% cheaper today, but it’s a “forever” hold appeared first on The Motley Fool Australia.

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• Is this the right time to invest in ASX defensive shares?
• ASX 200 financials flew but tech and mining shares faltered last week
• Passive income: How much do you need to invest to make $500 per month?
• 3 of the best ASX dividend shares to buy for income

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

The Neuren Pharmaceuticals Ltd (ASX: NEU) share price is in focus today after the company announced a new on-market share buy-back program of up to 5% of its shares, supported by a strong cash position from its DAYBUE® franchise.

What did Neuren Pharmaceuticals report?

• Announced a new 12-month on-market buy-back for up to 5% of shares on issue
• Buy-back to be conducted under section 65 of the NZ Companies Act 1993
• Strong cash position backed by growing DAYBUE® cash flows
• Buy-back discretionary, can be varied, suspended or terminated any time
• Development programs for NNZ-2591 well funded alongside buy-back

What else do investors need to know?

The buy-back will not occur during designated blackout periods – importantly, this includes the period before full-year results are announced. The 2025 full-year results are scheduled for release on 27 February 2026.

Shares purchased will be cancelled on acquisition, reducing total shares on issue and potentially boosting per-share value for remaining shareholders. The buy-back is within regulatory limits and will not require shareholder approval.

Neuren continues to advance its promising drug pipeline, including NNZ-2591 development for rare neurodevelopmental disorders, and holds orphan drug status for several programs in the US and EU.

What did Neuren Pharmaceuticals management say?

Neuren Chair Patrick Davies commented:

The Board views the current share price as materially undervaluing Neuren’s assets, relative to internal analyses and the range of recently published analyst valuations. Neuren has a very strong cash position, supported by growing cash flows from the DAYBUE® franchise. Neuren’s NNZ-2591 development programs for Phelan-McDermid syndrome, Pitt Hopkins syndrome and HIE all are, and will remain, well funded alongside the buy-back.

What’s next for Neuren Pharmaceuticals?

Neuren plans to monitor market conditions and its operational performance to guide the pace and timing of its buy-back over the next 12 months. The company intends to keep investors updated on shares bought and prices paid.

Ongoing product development and expansion of its neurodevelopmental drug portfolio, including the progression of NNZ-2591 through major clinical milestones, remain in focus, backed by healthy cash flow.

Neuren Pharmaceuticals share price snapshot

Over the past 12 months, Neuren Pharmaceuticals shares have risen 1%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Neuren Pharmaceuticals unveils on-market buy-back supported by strong cash flows 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.

ASX investors like shares and exchange-traded funds (ETFs) that pay out dividends on a monthly basis. Here on the ASX, it is the norm to pay out just two dividends per year. That is rather unusual by international standards, where quarterly dividend payments are far more common.

As a result, the vast majority of ASX dividend shares follow that biannual schedule when it comes to their dividend payments to shareholders. A small minority opt for quarterly dividends. An even smaller number still pay 12 dividends per year. Yet, monthly dividend payers are very popular on the ASX. Given that frequency of income distributions, it’s not hard to understand why.

We’ve covered a number of the ASX’s monthly dividend payers, both stocks and ETFs, here at The Motley Fool Australia over the past 12 months. These include Plato Income Maximiser Ltd (ASX: PL8), Metrics Master Income Trust (ASX: MXT), and the BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD).

But this week, we have a new monthly dividend ETF to welcome to the Australian share market.

It is none other than the VanEck Cash Plus Active ETF (ASX: MONY).

A new ASX ETF that will pay a monthly dividend

This new ASX exchange-traded fund from VanEck, unlike most ETFs on the share market, does not invest in an underlying portfolio of other stocks. Instead, it, according to the provider, targets “yield opportunities across different cash, cash-like instruments and short duration credit, issuers and individual securities”.

In simpler terms, this ETF invests in a portfolio of fixed-interest investments like bonds to generate reliable income for its investors. These investments average a credit rating of ‘A+’, and are sourced from respectable financial institutions. These include the Royal Bank of Canada, Spain’s Banco Santander. Our own ASX banks also feature heavily, including Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), and Bendigo and Adelaide Bank Ltd (ASX: BEN). The income that the VanEck Cash Plus ETF, as we’ve already noted, is planned to be distributed to investors on a monthly basis.

The MONY ETF is fresh off the line, having only debuted on the ASX boards last Wednesday, 4 February. As such, it has yet to declare its maiden dividend distribution. However, the provider tells us that the average yield to maturity of its portfolio is sitting at 4.4%.

We will anticipate the first monthly dividend distribution from the VanEck Cash Plus Active ETF with relish. Until that is revealed, investors should keep in mind that this ASX ETF charges a management fee of 0.15% per annum.

The post The ASX just got a new ETF that pays monthly dividends appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Plato Income Maximiser. 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 Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woolworths Group Ltd (ASX: WOW) shares closed 0.19% higher on Wednesday afternoon, at $31.75 a piece. 

Today’s marginal gain follows a continued upward trend for the supermarket giant in 2026 so far. Woolworths shares are 7.88% higher for the year-to-date and 5.59% higher for the year.

Most impressively, the current share price represents a 22.5% recovery from an all-time low of $25.91 in October last year.

The ASX supermarket’s shares crashed nearly 20% in August last year after it posted a disappointing FY25 result. The stock dropped to its all-time low in mid-October. It was saved from any further decline after the company posted a more positive first-quarter sales update. 

There hasn’t been any price-sensitive news out of the company in 2026, but the business is expected to post its half-year FY26 results later this month on Wednesday, the 25th of February.

It looks like investor confidence has continued returning. And even the latest Reserve Bank interest rate hike has done nothing to dent sentiment.

Are Woolworths shares a buy, sell or hold this year?

Analysts are divided about Woolworths’ shares right now. TradingView data shows that 4 out of 14 analysts have a buy or strong buy rating on the stock. The other 10 analysts have a hold rating.

The average target price is $30.97 per share, implying a 2.45% downside at the time of writing. The maximum target price is $37 per share, which implies a potential 16.5% increase for investors this year.

Hallihan has a hold rating on the supermarket giant. The broker noted that the supermarket giant is slowly recovering after its first-quarter results late last year. The team added that while Woolworths acknowledged that first-quarter sales were below expectations, group sales were up 2.7% and food sales were up 2.1% versus the prior period. 

“Competitive pricing and cost pressures limit near term upside, but scale advantages remain intact… The company’s defensive characteristics appeal in an economy of higher interest rates.”

But there’s another reason that Woolworths shares are still worth buying

Supermarkets are inherently defensive ASX stocks. Confidence and customer sentiment might fall, and people might have less money in their pockets if inflation keeps rising, but they still need to buy groceries. 

The benefit of Woolworths is its scale. This gives the company strong buying power, an extensive supply chain, and the ability to invest in efficiency over time.

The shares are still a good buy for passive income. In FY25, the supermarket business handed out a total of 85 cents per share, fully franked. Bell Potter expects the ASX retail stock to pay a boosted fully-franked dividend of 91 cents per share in FY26 and then 100 cents per share in FY27. 

The post Woolworths shares recover 22% from all-time low: Buy, sell or hold? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.

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 positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband and CSL. The Motley Fool Australia has recommended Aussie Broadband and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.