Author: openjargon

If you are looking for small-cap ASX shares to buy, then read on.

Listed below are two that experts are tipping as buys and one that they believe investors should be selling, courtesy of The Bull.

Here’s what they are recommending:

4DMedical Ltd (ASX: 4DX)

The team at Ord Minnett thinks that respiratory imaging technology company 4DMedical is a small-cap ASX share to sell now.

However, this isn’t due to a lack of quality. The recommendation is based on valuation grounds after a very strong rise over the past 12 months. It explains:

4DX enjoyed a positive start to calendar year 2026 after the company announced UC San Diego Health had adopted its CT:VQ product. Also, the company completed a $150 million institutional placement to primarily accelerate the commercialisation of CT:VQ. The share price has risen from 32 cents on June 2, 2025 to trade at $3.16 on February 5, 2026. In our view, there’s a growing disconnect between 4DX’s valuation and the uncertainty around near term CT:VQ revenue generation. While we remain positive on 4DX’s technology, we pull back to a sell recommendation on valuation grounds.

Legacy Minerals Holdings Ltd (ASX: LGM)

Over at Alto Capital, analysts think this mineral exploration company is a buy.

It notes that the company is due to release its scoping study for Mt Carrington in the coming months, which could be a positive catalyst for its shares. Alto Capital said:

This exploration company focuses on gold, silver and base metals targets in New South Wales, with its flagship Mt Carrington project located in the Lachlan Fold Belt. Recent funding has strengthened the balance sheet and supports ongoing drilling across priority targets. The company is also expected to release a revised scoping study for Mt Carrington in March, providing a key near term catalyst. While early stage exploration carries inherent geological risk, any success at Mt Carrington would be significant given LGM’s modest market capitalisation.

Praemium Ltd (ASX: PPS)

This investment platform provider’s shares could be a buy according to analysts at Ord Minnett.

It has been pleased with its performance in FY 2026 and believes the trend can continue thanks to its improving outlook. Ord Minnett explains:

PPS provides an investment platform to enable financial advisers to manage client accounts. The company’s second quarter update in fiscal year 2026 revealed some encouraging trends, even if progress was uneven across its products. Improving inflows to the Powerwrap platform was a highlight, while Praemium SMA was impacted by a client transition. Overall, net inflows were solid and platform funds under administration of $32.5 billion were up 8 per cent and in line with expectations. We still see an improving outlook for PPS.

The post Experts name 2 small-cap ASX shares to buy and one to sell appeared first on The Motley Fool Australia.

More reading

• Up 542% in a year, is it too late to buy 4DMedical shares today?
• Two booming ASX healthcare stocks investors should be buying the dip on
• These were the 10 most traded Australian shares last week
• Why this incredible ASX tech stock could be ‘set to conquer’
• Why 4DMedical, DroneShield, New Hope, and Zip shares are pushing higher today

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 positions in and has recommended Praemium. 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.

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

More reading

• 3 ASX 200 shares worth buying after February’s sell-off
• Up 10%: Everything you need to know about the new Car Group dividend
• Why Bravura, CAR Group, Pepper Money, and Web Travel shares are storming higher
• This beaten down ASX tech stock just jumped 10%. Here’s why
• Why is the Web Travel share price rocketing 19% on Monday?

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

Argo Investments Ltd (ASX: ARG) is one of the most popular listed investment companies (LICs) on the ASX. It is also one of the oldest, having first offered Argo shares to the public in 1946.

Ever since, Argo has painstakingly built up a reputation as a conservative steward of investor capital, investing its shareholders’ money in blue-chip ASX investments.

With many shareholders across the country entrusting Argo with their capital, there would have been more than a few eyes on this LIC’s latest financial results, unveiled this morning.

As we covered at the time, Argo had some decent numbers to show off for its half year ending 31 December 2025.

The company brought in a profit of $130.8 million, up 7.9% from the $121.2 million recorded for the same period in 2024. In some good news for investors, this enabled Argo to reduce its management expense ratio from 0.15% per annum to 0.14%.

Investors are reacting positively this session, with the Argo share price currently up a healthy 1.44% to $9.15 (at the time of writing).

But let’s talk about dividends.

Argo shares unveil record interim dividend

One of the most exciting bits of news in today’s earnings was undoubtedly the new dividend that was revealed. Argo has elected to fund an interim dividend worth 18.5 cents per share for the first half of FY2026. As is Argo’s habit, this dividend will come with full franking credits attached.

This 18.5-cent payout will be the largest interim dividend Argo has ever paid, exceeding last year’s 17 cents per share interim dividend by 8.8%.

Together with last September’s final dividend, worth 20 cents per share, this will take Argo’s 12-month dividend total to 38.5 cents per share.

This latest interim dividend from Argo will be sent to shareholders on 20 March next month. For investors who don’t yet own Argo shares but might wish to get a slice of this action, the ex-dividend date for this payout has been set for this Friday, 13 February. That means investors will need to have bought shares by market close on Thursday if they wish to bag a payment.

Argo is also offering a dividend reinvestment plan (DRP). If shareholders so choose, they can opt to receive this dividend as additional Argo shares rather than cash. The cutoff to nominate for the DRP is 17 February next week.

Argo shares currently trade on a trailing dividend yield of 4.04%. However, this new dividend will give the company a forward dividend yield of 4.21%.

The post Own Argo shares? A record dividend has just been announced! appeared first on The Motley Fool Australia.

More reading

• Argo Investments reports record profit and dividend
• ASX 200 financials flew but tech and mining shares faltered last week
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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 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.

February delivered a sharp reality check for ASX investors. A renewed tech-led sell-off dragged several high-quality growth names down toward their 52-week lows, despite little change to their long-term outlooks.

These pullbacks can present rare buying opportunities for the long term.

Here are 3 ASX 200 shares that look increasingly attractive at current levels.

CAR Group Ltd (ASX: CAR)

CAR Group shares are bouncing today, up 7.23% to $26.25. Despite the rebound, the stock remains around 5% lower over the past week following heavy selling earlier this month.

That pullback has pushed CAR Group back toward its 52-week lows, despite a strong first-half performance. As outlined in the company’s FY26 half-year result, CAR Group delivered solid revenue and earnings growth, with management reaffirming its full-year guidance.

From a technical perspective, the chart shows CAR Group recently dipped toward the lower Bollinger Band, a level that often signals short-term exhaustion selling. The relative strength index (RSI) also moved into oversold territory during the wider market sell-off, pointing to market-driven weakness rather than company-specific issues.

CAR Group continues to hold dominant positions across carsales, Trader Interactive, and its global classifieds network. With strong cash generation and clear pricing power, the recent pullback may be giving long-term investors a chance to buy a high-quality business at a more reasonable price.

Xero Ltd (ASX: XRO)

Xero shares have been hit hard in recent sessions. The stock is up 1.17% today to $82.72, but remains almost 12% lower than this time last week.

That decline has taken Xero to levels not seen since early 2023, despite management recently highlighting long-term growth opportunities in artificial intelligence, automation, and the US market.

Technically, Xero looks deeply oversold. The RSI has dropped into the low 20s, historically an area associated with capitulation selling. The price is also hugging the lower Bollinger Band, reinforcing the view that selling pressure may be peaking.

Xero remains a high-quality, recurring revenue software business with strong customer retention. If sentiment stabilises, the current price could prove attractive for long-term investors willing to ride out volatility.

Pro Medicus Ltd (ASX: PME)

Pro Medicus shares are up 1.63% today to $160.20, but the stock is still down about 13% over the past week, putting it near its 52-week low.

This is notable given that Pro Medicus continues to execute exceptionally well operationally. Demand for its Visage imaging platform remains strong, particularly in the US, where contract wins continue to drive long-term earnings visibility.

The recent sell-off appears sentiment-driven, reflecting broader weakness in the technology sector rather than any change to the company’s outlook. The RSI recently slipped into oversold territory, and the price touched the lower end of its trading range, both signals that selling pressure may be easing.

Despite the market correction, Pro Medicus remains one of the highest quality healthcare software businesses on the ASX.

Foolish Takeaway

February’s sell-off has pushed several elite ASX growth stocks back to levels that look appealing.

CAR Group, Xero, and Pro Medicus all retain strong competitive positions and long-term growth drivers. While volatility may persist in the short term, these pullbacks could offer attractive entry points for investors focused on long-term value.

The post 3 ASX 200 shares worth buying after February’s sell-off appeared first on The Motley Fool Australia.

More reading

• Up 10%: Everything you need to know about the new Car Group dividend
• What is happening to these ASX software shares?
• Why Bravura, CAR Group, Pepper Money, and Web Travel shares are storming higher
• This beaten down ASX tech stock just jumped 10%. Here’s why
• Why are ASX 200 tech shares like WiseTech and NextDC going gangbusters on Monday

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 Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended CAR Group Ltd and Pro Medicus. 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 are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed on Friday trading for $31.45. In afternoon trade on Monday, shares are changing hands for $31.69 apiece, up 0.8%.

For some context, the ASX 200 is up 2% at this same time.

Taking a step back, Woolworths shares have gained 5.7% over the past 12 months, modestly outpacing the 4.8% one-year gains posted by the benchmark index.

And that’s not including the two fully-franked dividends the ASX 200 supermarket paid out over this period. Woolworths stock currently trades on a fully-franked trailing dividend yield of 2.7%.

It’s also worth noting that Woolies shares have gained 2.6% since market close on 2 February, or more than twice the 1.2% gains delivered by the ASX 200.

I bring that up because, as you’re likely aware, at its first meeting of 2026 on 3 February, the RBA announced a 0.25% boost in the official interest rate to 3.85%.

“The board judged that inflation is likely to remain above target for some time and it was appropriate to increase the cash rate target,” the central bank said in making its decision.

So, with Woolies revenue linked to a large number of items consumers simply have to have regardless of inflationary or interest rate pressures, is the ASX 200 stock a good buy today?

Should you buy Woolworths shares today?

Family Financial Solutions’ Jabin Hallihan recently analysed the outlook for the Aussie supermarket giant (courtesy of The Bull).

“The share price of this supermarket giant is slowly recovering after releasing its first quarter sales results in fiscal year 2026 to the market on October 29, 2025,” Hallihan said.

Indeed, Woolworths shares have now gained 17.7% since market close on 28 October.

Investors’ response to those first-quarter sales results marked a pleasing change from the big sell-down that followed the release of the company’s full-year FY 2025 results on 27 August.

Woolworths shares plunged 14.7% on 27 August and continued to slide from there until plumbing multi-year closing lows on 14 October.

Investors sent the stock tumbling 14.7% on the day of the FY 2025 results release after Woolworths reported a 12.6% year-on-year fall in earnings before interest and tax (EBIT) to $2.75 billion. On the bottom line, FY 2025 net profit after tax (NPAT) of $1.39 billion was down 17.1%.

As for those more pleasing Q1 FY 2026 results, Hallihan said:

While Woolworths acknowledged first quarter sales were below aspirations, group sales of $18.5 billion were up 2.7% on the prior corresponding period. Australian food sales were up 2.1%.

Still, despite the appeal of higher interest rates, Hallihan isn’t ready to pull the trigger on Woolworths shares yet, issuing a hold recommendation.

He concluded, “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.”

The post Are Woolworths shares a good buy today amid rising interest rates? appeared first on The Motley Fool Australia.

More reading

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• 3 fantastic ASX 200 blue chip shares to buy with $5,000
• The best Australian dividend stocks to buy and hold forever

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 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.

Bank shares have been fantastic wealth creators over the long run, and I’m not anti-banks by any stretch. But at this point in the cycle, I’m finding it hard to get excited about ANZ Group Holdings Ltd (ASX: ANZ) shares.

Its valuation looks full, growth is likely to be modest, and a lot of good news already appears to be priced in. If I were a bank-focused investor looking to deploy new money today, I’d be avoiding ANZ and looking at some ASX exchange-traded funds (ETFs) instead that offer income, diversification, and less reliance on one institution getting everything right.

Here are the ASX ETFs I’d choose instead.

Vanguard Australian Shares Index ETF (ASX: VAS)

The Vanguard Australian Shares Index ETF is where I’d start if my goal was to reduce single-bank risk while still benefiting from the Australian financial system.

The VAS ETF gives broad exposure to the ASX 300, which means banks still play a meaningful role, but they are no longer the whole story. You get exposure to resources, healthcare, infrastructure, consumer stocks, and industrials alongside the banks.

Importantly, this spreads risk. If bank earnings growth slows or margins compress, other sectors can pick up the slack. For investors who like the income profile of banks but don’t want to bet heavily on ANZ shares alone, this feels like a much more balanced option.

Betashares Australian Quality ETF (ASX: AQLT)

The Betashares Australian Quality ETF appeals to me as a smarter way to own financials.

Instead of weighting companies purely by size, the AQLT ETF focuses on quality metrics like return on equity, balance sheet strength, and earnings stability. That naturally favours better-run businesses and reduces exposure to weaker operators.

Banks still feature in the portfolio, but only where they meet those quality criteria. The result is a portfolio that tends to look more defensive and resilient across cycles, which I think matters when valuations are already elevated.

If I’m worried about paying too much for bank earnings today, I’d rather let a quality filter do some of the heavy lifting for me.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF would be my pick for investors whose main attraction to ANZ shares is income.

The VHY ETF provides exposure to Australian shares with higher forecast dividends, while capping concentration at both the company and sector level. Banks remain important contributors to income, but they are not allowed to dominate the portfolio entirely.

That makes the income stream feel more sustainable to me. You’re still tapping into the dividend power of the big banks, but you’re also collecting income from other sectors that generate reliable cash flow.

For income-focused investors, this strikes a better balance between yield and risk than owning a single bank stock at a full valuation.

Foolish takeaway

ANZ Bank shares have had a strong run, but at current prices, I think the easy money has already been made. Earnings growth looks modest, competition is intense, and valuation support isn’t as compelling as it once was.

If I were investing fresh capital today, I’d rather own ASX ETFs that still benefit from the strength of Australian banks, while also providing diversification, quality filters, and multiple income streams.

The post I would forget ANZ Bank shares and buy these ASX ETFs appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• With global valuations stretched here are 3 great income ASX ETFs
• 3 Vanguard ETFs I think deserve a spot in most portfolios
• ASX 200 financials flew but tech and mining shares faltered last week
• 3 excellent ASX ETFs for Aussie investors to buy in February and beyond

Motley Fool contributor Grace Alvino has positions in 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 Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are looking for investment ideas, then it could pay to listen to what Bell Potter is saying.

That’s because the broker has just released its latest top Australian picks from the smaller side of the market. These are its panel of favoured small cap Australian shares that it believes offer attractive returns over the long term.

Two that make the list in February are named below. Here’s why it is bullish on them:

Adveritas Ltd (ASX: AV1)

The first Australian share that Bell Potter is recommending to clients is Adveritas.

It is a technology company that develops software solutions for enterprise customers which help maximise the return on digital ad spend.

Bell Potter notes that its key product is TrafficGuard, which is a SaaS platform that detects and intercepts fraudulent traffic (bots etc) in real time. This enables advertisers to reduce wasted ad spend and optimise their budgets.

The broker believes that the company is well-placed to benefit from growing demand for ad fraud software. Commenting on the company, its analysts said:

The market for ad fraud software like TrafficGuard is relatively nascent but is growing rapidly and Adveritas is already a leading global player. The TrafficGuard platform is scaling rapidly, with AV1 having established a dominant position in the online sports betting vertical and a growing presence across adjacent sectors such as eCommerce.

Catapult Sports Ltd (ASX: CAT)

Another Australian share that gets the thumbs up from Bell Potter is Catapult Sports.

It is a leading global provider of elite sport wearable tracking solutions and analytics for athletes.

Bell Potter highlights that Catapult is a market leader in a sizeable market that could double in size by 2030 to be worth US$72 billion a year.

Another positive is that the broker believes this Australian share is entering a phase of strong cash generation and sees plenty of upside for investors. It explains:

The key target market of Catapult is elite sporting teams and organisations and the acquisition of SBG also now gives the company a presence in motorsports. The pro sports technology market is currently valued at US$36bn in 2025 and is forecast to double to US$72bn by 2030. We view CAT as a market leader entering a stronger phase of cash generation and operating leverage, with an underpenetrated global customer base and expanding analytics suite providing a long runway for subscription growth and valuation upside.

The post Bell Potter names the best ASX shares to buy in February appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why I’m bullish on these buy-rated ASX shares in February
• 2 ASX small-caps with big upside to target in February
• Where I would invest $2,000 in ASX shares in February
• Buy local: 3 Australian innovations to add to your watch list

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 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.

One of the first ASX 200 shares to report its latest financials this earnings season is automotive classifieds stock Car Group Ltd (ASX: CAR).

The owner of carsales.com.au delivered its numbers for the first half of FY2026 this morning. As we covered at the time, these numbers were quite pleasing. Revenues came in at $626 million for the six months to 31 December 2025, up 8% over the prior corresponding period in 2024.

Reported earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $324 million, up 11%, while reported net profits after tax (NPAT) hit $143 million, a rise of 16%.

Investors seem delighted with these numbers, as Car Group shares are currently up an exciting 8.74% to $26.62 each at the time of writing. Saying that, the company remains down by a painful 30.76% over the past 12 months and has lost nearly 14% of its value in 2026 to date.

But let’s talk about something that often gets overlooked with this stock: Car Group’s latest dividend.

Car Group shares rise as interim dividend surges 10%

Car Group has one of the best dividend track records on the ASX. Investors have enjoyed more than a decade of uninterrupted annual dividend increases. That includes over COVID-ravaged 2020 and 2021.

This impressive track record continues in 2026. This morning, Car Group revealed that its next interim dividend will be 42.5 cents per share.

That represents a 10.4% rise over the interim dividend of 38.5 cents per share that investors saw last year. As well as a 2.4% rise over 2025’s final dividend of 41.5 cents per share.

This dividend will come partially franked at 30%. It is scheduled to hit investors’ bank accounts on 13 April later this year. However, if investors wish to secure payment of this dividend, they will need to own Car Group shares before the company trades ex-dividend on 13 March next month.

Investors can also choose to receive additional Car Group shares instead of a traditional cash payment by participating in the optional dividend reinvestment plan (DRP). Shareholders can elect to participate in the company’s DRP by 17 March. There will be no discount for doing so, though.

At current pricing, Car Group shares are trading on a trailing dividend yield of 3%. However, with today’s dividend announcement, the stock now has a forward dividend yield of 3.16%.

The post Up 10%: Everything you need to know about the new Car Group dividend appeared first on The Motley Fool Australia.

More reading

• Why Bravura, CAR Group, Pepper Money, and Web Travel shares are storming higher
• This beaten down ASX tech stock just jumped 10%. Here’s why
• CAR Group delivers strong H1 FY26 earnings and reaffirms outlook
• What the stronger Australian dollar means for your shares
• In a hot market, the undervalued Australian shares to buy now

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 recommended CAR Group Ltd. 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 ripping on Monday, up 2% to 8,885.5 points as earnings season continues.

On The Bull today, Jabin Hallihan from Family Financial Solutions reveals his ratings on three of the biggest names on the ASX 200.

One is a buy, one is a hold, and one is a sell.

Let’s take a look.

CSL Ltd (ASX: CSL)

CSL shares are $180.87 apiece, up 0.2% on Monday and down 31% over the past six months.

The CSL share price plunged after the company released its FY25 report last August.

So, it will be interesting to see what happens when CSL releases its next significant earnings report on Wednesday.

Meantime, Hallihan has a buy rating on the ASX 200 healthcare sector’s largest company.

Hallihan says:

The share price has fallen from $271.32 on August 18, 2025 to trade at $181.48 on February 5, 2026.

Our fair value is $295 a share.

Short term earnings noise obscures a high quality plasma franchise with structural demand growth.

In a bull market, valuation normalisation and quality should deliver strong upside moving forward. 

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is $86.28, up 1.5% today and down 2.6% over the past six months.

Wesfarmers is the consumer discretionary sector’s largest stock by market capitalisation.

It owns Bunnings, Kmart, Officeworks, Priceline Pharmacy, Soul Pattinson Chemist, and others.

Hallihan rates the ASX 200 retail conglomerate a sell.

… in our view, the stock remains significantly overvalued, with optimism already priced in.

The stock was recently trading on a lofty price/earnings ratio above 32 times, so it’s exposed to a correction on signs of any weakness.

We would be inclined to trim holdings and re-invest the proceeds in stocks offering better value.

Wesfarmers will release its 1H FY26 results next Thursday, 19 February.

Woolworths Group Ltd (ASX: WOW)

Woolworths shares are $31.73 apiece, up 0.9% on Monday and down 0.8% over the past six months.

Hallihan has a hold rating on the ASX 200 consumer staples sector’s largest company.

He comments:

The share price of this supermarket giant is slowly recovering after releasing its first quarter sales results in fiscal year 2026 to the market on October 29, 2025.

While Woolworths acknowledged first quarter sales were below aspirations, group sales of $18.5 billion were up 2.7 per cent on the prior corresponding period. 

Australian food sales were up 2.1 per cent.

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. 

Woolworths will reveal its 1H FY26 results on Wednesday, 25 February.

The post Buy, hold, sell: Wesfarmers, Woolworths, CSL shares appeared first on The Motley Fool Australia.

More reading

• Are Woolworths shares a good buy today amid rising interest rates?
• Where I would invest $10,000 in ASX 200 shares in February
• Argo Investments reports record profit and dividend
• Is this the right time to invest in ASX defensive shares?
• Experts name NAB and these ASX 200 shares as sells

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

ASX tech shares have had a rough run. Valuations have reset, sentiment has cooled, and headlines around artificial intelligence (AI) disruption have spooked plenty of investors. But stepping back from the noise, I still see compelling reasons to stay constructive on quality ASX tech shares in 2026.

Valuations have normalised without the businesses breaking

One of the biggest changes over the past year has been valuation, not fundamentals.

Many leading ASX tech shares are now trading 40% to 60% below their highs, despite continuing to grow revenue, expand customer bases, and generate strong cash flow. That disconnect matters.

In prior years, investors were paying for perfection. Today, expectations are far more conservative. For long-term investors, that shift lowers the bar for future returns. A company does not need to surprise massively on growth to deliver a solid outcome. It simply needs to execute.

This is why I’m far more comfortable adding exposure now than when optimism was stretched, and multiples left no room for error.

The best ASX tech shares are deeply embedded

A lot of the fear around tech in 2026 centres on disruption, particularly from AI. I think that risk is being overstated for the highest-quality platforms.

Companies like Xero Ltd (ASX: XRO), WiseTech Global Ltd (ASX: WTC), and REA Group Ltd (ASX: REA) are not just tools. They are infrastructure.

They sit at the centre of workflows, compliance, data, and decision-making. Replacing them would be costly, risky, and operationally painful for customers. That creates strong switching costs and lasting competitive positions.

I think AI will enhance these platforms over time, rather than make them redundant. In many cases, it strengthens their value proposition by making the data they already control more useful.

Long-term growth drivers are still firmly in place

It’s easy to forget that the structural tailwinds for tech have not disappeared.

Businesses are still digitising operations. Data volumes are still growing. Software penetration is still increasing across industries like accounting, logistics, real estate, travel, and healthcare.

Australian tech shares may operate in niche markets, but many of them serve global customers and address very large total addressable markets. When you combine that with recurring revenue, high margins, and operating leverage, you get businesses that can compound earnings for many years if execution remains solid.

Short-term volatility does not change that equation. In fact, it often creates the best entry points.

Foolish Takeaway

I’m not buying ASX tech shares because I think sentiment will improve next month or because valuations have hit rock bottom.

I’m buying because many of these businesses still have long runways for growth, strong competitive positions, and far more reasonable expectations priced in than they did a few years ago. In 2026, I think patience, selectivity, and a focus on quality will matter more than ever.

The post 3 reasons I would continue to buy ASX tech shares in 2026 appeared first on The Motley Fool Australia.

More reading

• Are Woolworths shares a good buy today amid rising interest rates?
• I would forget ANZ Bank shares and buy these ASX ETFs
• Bell Potter names the best ASX shares to buy in February
• Up 10%: Everything you need to know about the new Car Group dividend
• Buy, hold, sell: Wesfarmers, Woolworths, CSL shares

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