Author: openjargon

CSL Ltd (ASX: CSL) shares have climbed higher into the green in Tuesday lunchtime trade.

At the time of writing, the ASX biotech stock is up around 1% and is trading for $178.34 a piece.

Today’s increase means CSL shares have now jumped 93% from a 10-year low, recorded in June. The shares have also recouped losses shed this year, and are now up around 4% for the year to date. CSL shares are currently trading 13% lower than this time last year.

What drove the CSL share price rebound?

It looks like a combination of factors drove a renewal of investor confidence.

The company has faced several strong headwinds over the past 18 months, including a general investor rotation away from ASX healthcare shares, a full-year guidance downgrade earlier in the year, and news that the company expects an additional non-cash pre-tax impairment of around $5 million in FY26 and FY27.

But it looks like investors realised that the sell-off was way overdone, and by June the shares were trading significantly below fair value.

CSL’s final FY26 result in mid-August helped drive confidence higher again. The company reported total revenue of US$15.8 billion and NPAT of US$2.6 billion, which came in way ahead of guidance. 

Management described FY26 as a ‘reset year’, and said that in FY27 it expects a return to growth.

And all this has happened while the Australian healthcare sector stages a significant recovery, with investors becoming interested in the sector once again.

And why are the shares climbing higher again today?

Just yesterday, the company announced it has entered into an exclusive deal with Alentis Therapeutics for lixudebart, a treatment targeting rare kidney and liver conditions.

The company plans to expand clinical trials to cover other rare diseases such as focal segmental glomerulosclerosis (FSGS) and primary sclerosing cholangitis (PSC), supporting the growth of CSL’s nephrology portfolio.

CSL is expected to make an initial upfront payment of US$355 million to Alentis Therapeutics. It will also make additional commercial milestone payments of up to US$1.2 billion depending on commercial success.

The agreement is valued at up to US$1.6 billion in total.

Is the ASX biotech stock a buy, sell, or hold for October?

It looks like the company is well positioned for future growth. And the experts are bullish that CSL shares can keep climbing higher, too.

Market Index data shows that the majority of brokers have a buy rating on CSL shares. But after the strong rebound over the past couple of months, the average $159.86 target price now implies a downside of around 10% from the current trading level.

Analysts on TradingView are also bullish. Again the majority (11 out of 19) have a buy or strong buy rating on the shares. The average $185.96 target price implies a potential 4% upside, at the time of writing. Some think the shares have the potential to jump another 22% to $218.30 within the next 12 months.

If analyst forecasts are correct, now could be a great time to buy the shares, ahead of the next rally.

The post CSL shares jump 93%: Is the ASX biotech stock a buy, sell or hold for October? appeared first on The Motley Fool Australia.

More reading

• Are CSL shares a buy after its big news?
• CSL unveils exclusive Alentis deal to advance rare disease treatments
• Top ASX shares to buy in October 2026
• CSL vs Pro Medicus: Which ASX healthcare share is better?
• Expert names Woodside and CSL shares as top buys today

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

S&P/ASX 200 Index (ASX: XJO) shares are up 0.4% to 8,719.6 points on Tuesday.

Let’s check out some new ratings on these three ASX 200 shares (courtesy The Bull).  

NextDC Ltd (ASX: NXT)

NextDC shares are $10.62 apiece, down 0.2% today.

Arthur Garipoli from Dolphin Partners has a buy rating on this ASX 200 tech share. 

Garipoli said: 

This data centre operator delivered total revenue of $496.5 million in fiscal year 2026, up 16 per cent on the prior corresponding period.

Underlying EBITDA of $248.8 million was up 15 per cent.

Underlying EBITDA is expected to range between $385 million and $410 million in fiscal year 2027.

NXT has invested heavily in infrastructure during the past three years.

The recent share price decline enables longer term investors to gain entry into a growth stock with structural tailwinds.

Cleanaway Waste Management Ltd (ASX: CWY)

Cleanaway Waste Management shares are $2.65, down 0.6% on Tuesday.

Steven Springford from Catapult Wealth has a hold rating on this ASX 200 industrials share. 

He said: 

This waste management company received a conditional, non-binding indicative proposal from EQT Infrastructure at $3.13 cash a share less the cash amount of any dividends. The proposal values Cleanaway at about $9.4 billion.

There’s no certainty the proposal will proceed… In our view, investors should continue holding and potentially receive the proceeds, which may also include a special fully franked dividend.

Cleanaway released an update yesterday saying that EQT had confirmed nothing had arisen during its due diligence that would prevent it from going ahead with the purchase, and it does not intend to vary any terms of its proposal.

Cleanaway received EQT’s conditional, non-binding indicative offer to buy 100% of its shares on 13 August.

Yesterday, Cleanaway said: “EQT is continuing to progress its confirmatory due diligence and the parties are working towards the negotiation and execution of an implementation deed.”

New Hope Corporation Ltd (ASX: NHC)

The New Hope Corporation share price is $5.78, down 0.7% today.

Garipoli gives this ASX 200 coal share a sell recommendation.

He explained: 

New Hope is a thermal coal producer.

Underlying EBITDA of $514.3 million in full year 2026 was down 32.8 per cent on the prior corresponding period.

Net profit after tax of $161 million fell 63.4 per cent. The profit result was below broker estimates.

Heightened costs contributed to the fall in profit.

The shares have performed well in calendar year 2026, so investors may want to consider pocketing some gains.

The post Buy, hold, sell: New Hope, Cleanaway Waste Management, NextDC shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Tech shares shine while ASX 200 plunges to 4-month low
• Top ASX shares to buy in October 2026
• 5 leading ASX shares I’d buy and hold until 2040
• Buy, hold, sell: Premier Investments, New Hope, Xero shares

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 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.

Nobody knows when the next serious market sell-off will arrive.

But I think it is worth owning ASX shares that I would still feel comfortable holding if share prices suddenly fell 20% or 30%.

For me, that means looking for strong competitive positions, dependable demand, and businesses that can keep moving forward even when the economic backdrop becomes less friendly.

These are three ASX shares that fit that description.

Cochlear Ltd (ASX: COH)

Cochlear would be one of my first choices. It is a global leader in implantable hearing solutions, operating in a healthcare market where the underlying need does not disappear because economic conditions weaken.

That gives Cochlear a degree of resilience I like.

There is also a long-term growth story behind the defensive qualities. Ageing populations and greater awareness of hearing loss should continue expanding the number of people who could benefit from treatment.

Cochlear also has a strong record of product development, which helps it keep improving the technology available to patients and healthcare professionals.

A market sell-off could still drag Cochlear shares lower. But I would be comfortable looking through that volatility and sticking with the long-term investment case.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is an ASX share that gives me a different kind of confidence.

This conglomerate’s portfolio includes businesses such as Bunnings, Kmart, Target, Silk Laser, Priceline, and Officeworks, giving the company exposure to categories that remain important to Australian consumers through different parts of the economic cycle.

I particularly like the strength of Bunnings. Its scale, brand recognition, and position in home improvement make it difficult to replicate, while Kmart has built a strong value proposition that can remain relevant when household budgets are under pressure.

Wesfarmers also has a long history of allocating capital across different businesses and industries. That flexibility is valuable during weaker markets. A strong balance sheet and patient management can create opportunities when other companies are forced to pull back.

For me, that makes Wesfarmers the sort of business I would be happy to keep holding even if sentiment towards the broader market turned sharply negative.

Woolworths Group Ltd (ASX: WOW)

Woolworths would be my third ASX share pick.

Grocery spending is one of the more defensive parts of the economy because households still need food and everyday essentials regardless of what markets are doing.

That gives Woolworths a steady demand base through periods when consumers may be cutting back elsewhere.

Its scale also works in its favour. Woolworths operates one of the country’s largest supermarket networks, with the purchasing power, distribution infrastructure, and customer reach that come with that position.

The business still needs to execute well, particularly around pricing, costs, and competition. But if the share market were falling because investors were worried about the economic outlook, Woolworths is the sort of company I would be comfortable continuing to own.

Foolish takeaway

A market downturn would probably send all three share prices lower. That would not automatically make me want to sell them.

What I care about is whether the businesses themselves can keep strengthening while the market works through the turbulence.

Cochlear, Wesfarmers, and Woolworths all give me reasons to believe they could. That is why I would be comfortable owning them before, during, and after the next sell-off.

The post 3 defensive ASX shares I’d buy in a market sell-off appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Goodman, Wesfarmers, BHP shares
• Buy, hold, sell: Megaport, Northern Star, Woolworths shares
• A leading fund just bought these top ASX 200 shares
• Wesfarmers vs Woolworths: Which ASX dividend share looks better this month?
• How to build a $52,000 passive income with ASX shares

Motley Fool contributor Grace Alvino has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and Wesfarmers. The Motley Fool Australia has recommended Cochlear and Wesfarmers. 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 to bring your portfolio to life, then it could be worth considering the ASX healthcare stock in this article.

That’s because if Bell Potter is on the money with its recommendation, it could double in value between now and this time next year.

Which ASX stock?

The stock that has caught the eye of Bell Potter is Aroa Biosurgery Ltd (ASX: ARX).

It is a commercial stage medical device company that operates within the wound care and soft tissue reconstruction sector. 

Bell Potter highlights that the company has reported positive peer-reviewed results from its published Symphony randomised controlled trial in diabetic foot ulcers (DFUs). It said:

Symphony plus standard of care (SOC) increased complete wound closure at 12 weeks to 45.6% versus 23.6% with SOC alone, a 22pp benefit (p=0.008). The benefit importantly remained significant after adjustment for baseline wound area and ulcer recurrence, with consistent per-protocol findings. Estimated mean time to closure was also 7.8 days shorter at 67.4 days. These results establish substantive clinical evidence expected to support Symphony’s outpatient adoption in both chronic and complex wounds.

The broker believes these results and economics reshape the opportunity. It adds:

The results arrive as reimbursement reform increases scrutiny of both clinical evidence and treatment economics. Provider uncertainty and wastage restrictions are disrupting the market, creating opportunities in the institutional channels that ARX is targeting. 

Symphony’s competitive pricing, shelf-stable format and range of SKUs support its positioning as provider margins, logistics and wound-matched sizing become increasingly important to product selection.

Big potential returns

According to the note, the broker has retained its buy rating and $1.09 price target on the ASX stock. 

Based on its current share price of 50.5 cents, this implies potential upside of approximately 115% for investors over the next 12 months.

Commenting on its investment thesis and valuation, Bell Potter said:

Myriad remains the established near term growth driver, while Symphony provides access to a significant outpatient opportunity supported by a stronger clinical evidence base. Against an estimated US$1bn addressable market, our Symphony revenue forecasts remain modest at NZ$1.5m in FY27 and NZ$2.0m thereafter, leaving meaningful upside as adoption gains traction. 

ARX continues to screen attractively on 1.6x consensus CY26 EV/revenue, a ~40% discount to the broader peer average and ~61% to domestic peers. We see scope for this gap to narrow through continued direct sales growth, with the November H1 result the next catalyst in assessing commercial progress. We maintain our Buy rating and $1.09 target price.

The post Top broker says this ASX stock could rise 115% appeared first on The Motley Fool Australia.

More reading

• Morgans says these ASX shares could return 48% to 95%
• 7 ASX healthcare stock picks from Bell Potter

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.

Some share price falls make me nervous. Others make me want to look much more closely at what has actually changed inside the business.

One ASX growth share has fallen more than 60% over the past 12 months, yet I think its long-term opportunity may be getting stronger.

That share is cloud accounting platform provider Xero Ltd (ASX: XRO).

Beaten-down ASX growth share

Xero shares are now trading around $57 after a brutal year for shareholders.

Part of the concern has centred on artificial intelligence (AI) and what increasingly capable software could mean for traditional accounting platforms. Growth stocks have also faced pressure from higher interest rates and weaker market sentiment.

I can understand why investors are asking harder questions. But I think the market may be overlooking how Xero itself is changing.

Becoming more than accounting software

For years, the Xero investment case largely revolved around convincing more small businesses to move their accounting into the cloud.

That opportunity still exists, but the company now has broader ambitions.

Its acquisition of Melio has pushed Xero further into payments, particularly in the United States, while the company has also launched integrated payroll through Gusto. That means this ASX growth share can increasingly sit across accounting, payments, and payroll rather than solving only one part of a small business owner’s financial life.

I think that could make the platform more valuable to customers and give Xero more ways to grow revenue from the businesses already using it.

The US is particularly important here. It remains a much less mature market for Xero than Australia or New Zealand, so successfully bringing these services together could significantly expand the company’s opportunity.

What about AI?

AI is often presented as a threat to accounting software because it could automate tasks that users currently rely on platforms like Xero to perform.

But Xero is investing heavily in the same technology. Its Just Ask Xero (JAX) platform is designed to automate financial workflows and provide insights to small businesses and accountants, while Xero has also integrated with tools such as Anthropic’s Claude.

For me, AI could ultimately make financial software stronger if it allows customers to do more with the information already sitting inside the platform.

Xero now serves around 5 million customers globally, giving it an enormous base from which to introduce those capabilities.

Is the business still growing?

Importantly, the share price decline has not been accompanied by a collapse in the underlying business.

FY26 operating revenue increased 31% on a headline basis and 21% organically, while adjusted EBITDA increased 18%, or 30% organically, despite the investment associated with Melio.

That does not mean the risks have disappeared.

Xero still needs to integrate Melio successfully, prove it can gain ground in the US, and show that AI strengthens rather than undermines its competitive position.

But those are very different concerns from a business whose growth story has simply run out.

Foolish takeaway

After such a steep fall, I think this ASX growth share deserves another look.

The share price is telling a much more pessimistic story than it was a year ago, while the company is expanding the role it can play for small businesses.

If Xero can turn payments, payroll, and AI into meaningful new growth engines, I think today’s price could look surprisingly cheap several years from now.

Because of this, I would be willing to buy and give that strategy time to develop.

The post Down 60%, is this ASX growth share now too cheap to ignore? appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares tipped to grow 62% or more in the next 12 months
• Tech shares shine while ASX 200 plunges to 4-month low
• Here are the top 10 ASX 200 shares today
• By October 2027, $5,000 invested in Xero shares could turn into…
• Codan vs Xero: Which ASX tech stock is the better buy in October?

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.

S&P/ASX 200 Index (ASX: XJO) shares are up 0.36% to 8,717.5 points on Tuesday.

Let’s check out some new ratings from Steven Springford at Catapult Wealth (courtesy The Bull).  

Goodman Group (ASX: GMG)

The Goodman share price is $26.52, up 0.84% today and down 22% over 12 months. 

Springford has a buy rating on this ASX 200 property share.

He said: 

Goodman provides exposure to construction and management of warehouses and data centres in major cities across the world.

Operating earnings per security of $1.299 in full year 2026 were up 10.1 per cent on the prior corresponding period.

The company is targeting operating earnings per share growth of 9 per cent in full year 2027.

GMG recently signed a 20 year lease on its data centre in Tokyo. The facility is under construction and due to be operational in 2028.

Data centres recently drove work in progress to $19.7 billion.

The shares offer value at these levels, as we believe the stock is trading at a discount.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is $76.06, up 0.78% today and down 17% over 12 months. 

Springford has a hold rating on this ASX 200 consumer discretionary share. 

He commented: 

Wesfarmers owns retail giants Bunnings, Kmart and Officeworks among other businesses.

Group revenue rose 3.4 per cent in 2026 when compared to the prior corresponding period.

Basic earnings per share, excluding significant items, were up 8.3 per cent.

Growth is steady rather than exciting, so WES can be held for reliable earnings and dividends over the long term.

Increasing interest rates and weaker household spending are the main risks.

BHP Group Ltd (ASX: BHP)

BHP shares are $62.17 apiece, up 0.45% today and up 48% over 12 months. 

Springford has a sell rating on this ASX 200 mining share. 

He explained: 

The global miner delivered a strong result in full year 2026.

Attributable profit of $US9.8 billion was up 9 per cent on the prior corresponding period. Revenue of $US58.8 billion was up 15 per cent. Copper generates more than half the company’s earnings.

Our issue is price rather than quality.

The shares have risen from $42.53 on September 30, 2025 to trade at $61.17 on September 30, 2026.

Continuing strong profits depend on commodity prices remaining elevated.

BHP is a great company, but taking some profit is a reasonable way to lock in gains, while keeping some resources exposure.

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

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• Woodside Energy vs Rio Tinto: Which ASX 200 stock is better value?
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• How much superannuation do I need to earn $56,000 per year in passive income?
• BHP vs Codan: Which ASX 200 share is the stronger buy today?
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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 Goodman Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended BHP Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

VanEck has announced the next round of distributions (dividends) for its ASX exchange-traded funds (ETFs).

VanEck has provided a targeted payment date of Friday, 16 October.

Let’s check out these upcoming payments.

VanEck announces dividends

VanEck 1-5 Year Australian Government Bond ETF (ASX: 1GOV) will pay 11.5 cents per unit.

The VanEck 5-10 Year Australian Government Bond ETF (ASX: 5GOV) will pay 13 cents per unit.

VanEck Emerging Income Opportunities Active ETF (ASX: EBND) will pay 5.5 cents per unit.

VanEck Australian Floating Rate ETF (ASX: FLOT) will pay 10.5 cents per unit.

The VanEck Australian Fixed Rate Subordinated Debt ETF (ASX: FSUB) will pay 12 cents per unit.

VanEck Bentham Global Capital Securities Active ETF (ASX: GCAP) will pay 4.5 cents per unit.

VanEck FTSE Global Infrastructure (AUD Hedged) ETF (ASX: IFRA) will pay 19 cents per unit.

The VanEck Global Listed Private Credit (AUD Hedged) ETF (ASX: LEND) will pay 14 cents per unit.

VanEck Cash Plus Active ETF (ASX: MONY) will pay 20 cents per unit.

VanEck Australian Corporate Bond Plus ETF (ASX: PLUS) will pay 7 cents per unit.

The VanEck FTSE International Property (AUD Hedged) ETF (ASX: REIT) will pay 19 cents per unit.

VanEck Australian RMBS ETF (ASX: RMBS) will pay 10.5 cents per unit.

VanEck Australian Subordinated Debt ETF (ASX: SUBD) will pay 12 cents per unit.

The VanEck 1-3 Month US Treasury Bond ETF (ASX: TBIL) will pay 15 cents per unit.

VanEck 10+ Year Australian Government Bond ETF (ASX: XGOV) will pay 18 cents per unit.

What about other ASX ETFs?

BlackRock has announced distributions for iShares S&P 500 ETF (ASX: IVV) and other ETFs in its group.

BlackRock will pay its ETF investors this Friday.

Vanguard has also announced its next dividends for Vanguard Australian Shares Index ETF (ASX: VAS), Vanguard Diversified High Growth Index ETF (ASX: VDHG), Vanguard Australian Property Securities Index ETF (ASX: VAP), and others in its stable.

Vanguard will pay investors on 16 October.

Betashares has announced its distributions for Betashares Australia 200 ETF (ASX: A200), Betashares Diversified All Growth ETF (ASX: DHHF), Betashares Diversified High Growth ETF (ASX: DVHG), and others.

Investors will receive their dividends on 16 October.

Global X has also announced its next dividend payments for Global X Australia 300 ETF (ASX: A300), Global X Australia ex Financial & Resources ETF (ASX: OZXX), and others.

Global X will pay investors on 19 October.

The post Own VanEck ASX ETFs? Here’s your next dividend appeared first on The Motley Fool Australia.

More reading

• Top broker says this ASX stock could rise 115%
• Down 60%, is this ASX growth share now too cheap to ignore?
• Buy, hold, sell: Goodman, Wesfarmers, BHP shares
• Should I invest $1,000 into DroneShield shares?
• IDP Education vs G8 Education: Which battered ASX stock could rebound?

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 BlackRock and iShares S&P 500 ETF. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DroneShield Ltd (ASX: DRO) has become one of the ASX’s most closely watched defence technology companies.

Demand for counter-drone systems is growing, while the company continues to make progress with major customers in markets such as the United States.

So, if I had $1,000 available for a higher-growth investment, would DroneShield make the cut?

A growing defence opportunity

Drones are playing an increasingly important role in modern warfare and security, creating demand for technology capable of detecting, tracking, and defeating them.

DroneShield has developed products across portable counter-drone systems, vehicle-mounted technology, sensors, electronic countermeasures, and command-and-control software.

That gives the company several ways to participate as governments and defence organisations increase spending in this area.

And importantly, DroneShield is starting to turn that opportunity into meaningful customer relationships.

Progress in the United States

One recent example came at the end of September. DroneShield secured an Indefinite Delivery, Indefinite Quantity contract supporting the US Joint Interagency Task Force 401 Domestic Shield initiative.

The procurement vehicle has a maximum value of US$500 million over three years and provides a streamlined way for US authorities to purchase DroneShield technology.

That does not mean US$500 million of revenue is guaranteed. Individual orders still need to be placed under the agreement.

Even so, I think it strengthens DroneShield’s position in a market that could become increasingly important to the business.

The company had already installed DroneSentry-X systems on US military vehicles under the same program, showing that its technology is moving beyond trials and into operational use.

Building more than a hardware business

There is another part of the story I think could become increasingly important.

DroneShield has launched Mission Ready Services, an annual renewable offering covering areas such as software updates, training, and support.

With thousands of software-enabled devices already deployed, that creates an opportunity to generate additional revenue after the initial hardware sale.

Over time, a larger contribution from software and services could make the business less dependent on the timing of individual equipment orders.

That would be an important development as DroneShield grows.

What are the risks?

There is still plenty that could go wrong.

Defence contracts can be large but irregular, and procurement programs do not guarantee that orders will arrive when investors expect.

DroneShield is also expanding rapidly, which means it needs to keep investing in manufacturing capacity, research and development, and its international operations while maintaining execution.

The share price could therefore remain volatile, particularly if contract announcements slow or market expectations run ahead of what the business delivers.

That is the sort of risk I would want to be comfortable with before investing.

Foolish takeaway

I would be prepared to invest $1,000 in DroneShield shares.

The company is addressing a defence problem that appears to be becoming more urgent, while its progress in the US suggests its technology is gaining credibility with major customers.

There will almost certainly be sharp swings along the way. But for a long-term investor comfortable with higher risk, I think DroneShield has a genuine opportunity to become a much larger defence technology business.

The post Should I invest $1,000 into DroneShield shares? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Droneshield vs Zip Co: Which tech share is the better ASX growth pick?
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Should I buy DroneShield shares after its big US news?

Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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.

IDP Education vs G8 Education shares: Which beaten-down stock could rebound?

Both IDP Education Ltd (ASX: IEL) and G8 Education Ltd (ASX: GEM) have suffered severe share price declines lately, making them prime hunting ground for bargain seekers. If you’re weighing up IDP Education vs G8 Education shares, you’re comparing two education-focused businesses – but with very different operations, risk profiles, and upside potential. Let’s dive into what makes each one standout.

The case for IDP Education

IDP Education is a global player offering English language testing and international student placement services. It’s best known for co-owning IELTS – one of the world’s most prominent English testing systems, widely accepted by governments, universities, and accreditation bodies. Alongside English language assessments, IDP offers international student placement, operates teaching schools in Southeast Asia, hosts education events, and provides consulting services, with offices in more than 50 countries.

Looking at the numbers, IDP Education clocks in with a market cap of $553.89 million and a P/E ratio of 46.22. The trailing dividend yield stands at 4.46%, and year to date, the share price has slumped by 63.5%. According to the latest data, earnings per share sit at $0.044 and dividends per share at $0.09. Franking percentages on dividends have declined recently, with the most recent dividend unfranked – a change from higher franking rates in previous years.

The case for G8 Education

G8 Education operates early childhood education and care centres across Australia, focusing on childcare and early learning. The group’s scale makes it a well-known name in the local sector, emphasising quality and developmental care from infancy through preschool.

Fundamentals show G8 Education with a far smaller market cap at $72.53 million and a P/E ratio of 5.26. The last reported dividend yield is a staggering 20.62% (with 100% franking), and dividends per share stand at $0.06. Notably, the company’s reported earnings per share is negative at –$0.472. Year to date, G8 Education’s shares have tumbled 85.9%, making it one of the market’s hardest hit. Its dividends have consistently been fully franked, offering an added tax benefit for eligible investors.

Valuation comparison

There are some sharp contrasts between IDP Education and G8 Education on core metrics:

Metric	IDP Education	G8 Education
Market Cap	$553.89 million	$72.53 million
P/E Ratio	46.22	5.26
Dividend Yield	4.46%	20.62%
Dividend Franking (latest)	0% (recent, previously higher)	100%
Earnings per Share	0.044	-0.472

Note: G8 Education’s reported P/E ratio does not align with its negative EPS, which suggests the P/E could be based on a different earnings measure (such as underlying or forecast earnings).

IDP Education trades at a much higher multiple, while G8 Education, on paper, looks extremely “cheap” on these numbers – although the underlying business challenges must not be ignored, given the negative EPS.

Recent share price momentum

Comparing recent share price performance up to 30 September 2026:

• As of 30 September 2026, IDP Education closed at $2.02, having gained 3.6% that day, but still down 63.5% year to date.
• On the same date, G8 Education closed at $0.10, unchanged for several days but having fallen 85.9% over the year to date.

Both companies have endured significant value destruction over 2026 so far, but G8’s drop has been notably steeper.

Which is the better buy?

When I weigh these two, I’m looking for not just the biggest discount, but the highest probability of sustainable upside. G8 Education’s 20%-plus dividend yield, with full franking, leaps off the page – but the fact that earnings per share is negative (and the share price has been absolutely smashed) really worries me. A dividend that high against a negative EPS suggests a major risk that payouts could be cut or stopped, and the business model might be under significant stress.

By contrast, IDP Education’s P/E ratio is lofty compared to G8, and the yield is more moderate. However, IDP’s core English language testing and international education business has global scale and is closely tied to long-term student mobility and international migration trends – giving it growth levers that are less cyclical than local childcare. While its dividend franking has recently dropped to zero, prior years had partially franked payments, so this may not be a permanent change.

Both stocks are deeply beaten down, but I’m more comfortable backing a recovery in IDP Education. The worldwide demand for English language proficiency and overseas education isn’t going away, and a market cap of over $500 million suggests the company has financial strength to weather downturns. G8, on the other hand, may offer a monster yield – but with such a steep share price fall and negative earnings, I fear the apparent bargain could be a value trap. My pick for future upside is IDP Education.

The post IDP Education vs G8 Education: Which battered ASX stock could rebound? 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 draft. 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.

CSL Ltd (ASX: CSL) has given investors another reason to take a closer look at the healthcare giant.

This week, the biotech company announced a new drug development partnership, adding another potential growth opportunity to its pipeline.

With CSL shares trading around $177 on Tuesday, would I buy? Let’s dig deeper into things.

What is the big news?

CSL has entered an exclusive global partnership with Alentis Therapeutics to develop and commercialise lixudebart.

The investigational treatment targets claudin-1 and is currently in a Phase 2 trial for a rare autoimmune disease that can cause rapid and irreversible kidney damage. CSL and Alentis also plan to explore its potential in other kidney and liver diseases.

CSL stated that it will pay Alentis US$355 million upfront and fund the planned development program. If the treatment eventually reaches the market, CSL would receive 55% of global profits, with Alentis receiving the remaining 45%.

There is clearly a long way to go. Lixudebart still needs to progress through clinical trials, so I would not attach too much value to it today.

But I like what the deal says about CSL’s ambitions. The company already has a presence in nephrology through CSL Vifor, and this agreement gives it another potential treatment that could strengthen that part of the portfolio if development is successful.

Another reason to like CSL

Importantly, this partnership is not the main reason I would buy CSL shares.

I am much more interested in the recovery potential across the existing business.

Underlying demand for immunoglobulin therapies remains healthy, and CSL expects that market to continue supporting long-term growth. The company is also working to improve plasma collection productivity and increase the amount of finished product it can produce from each litre of plasma.

Those improvements could help CSL rebuild margins while meeting rising demand.

There are also newer products such as Andembry and Hemgenix that can contribute more over time, giving the company additional growth avenues alongside its established plasma therapies.

For me, the Alentis Therapeutics deal simply adds another potential future winner to that mix.

What about the valuation?

At around $177, I think CSL shares are reasonably priced for the recovery I expect.

Consensus forecasts point to earnings per share of $8.99 in FY27, $9.48 in FY28, and $10.08 in FY29. That means the shares are trading on a PE ratio of less than 20 times forecast FY27 earnings, falling to around 17.5 times the FY29 estimate.

If immunoglobulin demand remains strong, plasma economics improve, and newer products continue gaining traction, I think CSL can deliver on the market’s expectations.

The new partnership adds some longer-term upside, but I would regard any eventual success from lixudebart as a bonus rather than something today’s investment case depends on.

Foolish takeaway

The Alentis Therapeutics agreement gives me another reason to feel positive about CSL, particularly as the company builds out its nephrology pipeline.

But my buy case still comes back to the existing business and its ability to recover.

At around $177, I think investors are getting CSL’s established global healthcare operations at a reasonable valuation, with opportunities such as lixudebart adding something extra for the years ahead.

The post Are CSL shares a buy after its big news? appeared first on The Motley Fool Australia.

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• What would it take for CSL shares to return to $250?

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