Author: openjargon

ASX tech stock Hub24 Ltd (ASX: HUB) started the week in the red, slipping 1% to $79.66.

That leaves the ASX tech stock down around 17% in 2026.

But while the sell-off may look ugly on the surface, the recent weakness appears driven more by macro fears and sector sentiment than company-specific problems.

And for long-term investors, that could create an interesting opportunity.

Caught in a sector sell-off

The broader technology sector has been under pressure as investors reassess valuations and try to understand how artificial intelligence (AI) could reshape competitive dynamics.

Growth shares have been hit particularly hard. That is not unusual during periods of uncertainty. Markets often sell first and ask questions later. Even high-quality ASX stocks can get caught in broad-based de-rating cycles.

Importantly, Hub24’s operational performance still looks strong. The ASX tech stock continues to benefit from structural growth as more financial advisers adopt its platform.

In its latest quarterly update, Hub24 reported net inflows of $4 billion. Total funds under administration climbed to $151.7 billion, up 22% year-on-year. Those are not the numbers of a business losing momentum.

Platform monogamy

The platform also continues to gain traction across the advice industry. More than 5,200 advisers now use Hub24, and industry trends appear to be working in its favour.

One of the biggest is platform consolidation. More advisers are moving toward “platform monogamy,” where they consolidate client assets onto a single provider rather than spreading them across multiple systems.

That trend could become a major tailwind for the ASX tech stock as advisers prioritise efficiency, integration, and scale.

Strong operational leverage

And there may be another powerful growth driver hiding beneath the surface. Platform businesses often benefit from strong operating leverage.

In simple terms, once fixed costs are covered, additional funds flowing onto the platform can generate higher incremental margins. That creates the potential for earnings growth to outpace revenue growth over time. That is one of the more interesting parts of the investment case right now.

The market may be focusing heavily on short-term sentiment, valuation concerns, and AI disruption fears. But internally, Hub24 could still be building a much stronger earnings engine as it scales.

AI uncertainty

The AI debate also deserves some perspective. Technology is evolving rapidly, and AI will almost certainly change parts of the financial services industry over time.

But Hub24 is not simply a basic software product. The ASX tech stock operates a deeply integrated ecosystem connecting advisers, clients, compliance, reporting, and investment administration.

Those ecosystems tend to be sticky. In fact, AI could potentially strengthen platforms like Hub24 rather than disrupt them. Automation and smarter tools may improve efficiency and client servicing without replacing the underlying platform infrastructure.

That distinction matters.

What do the experts think?

Analysts also appear increasingly optimistic despite the recent share price weakness.

According to TradingView data, most brokers currently rate Hub24 shares as a buy.

The average broker price target sits at $105.96, implying potential upside of roughly 33% from current levels. The most bullish target stands at $132.10, while the lowest target is $66.20.

Jarden is among the more positive brokers on the ASX fintech stock. It currently has a buy rating and a $115.30 price target on Hub24 shares.

The post Why this struggling ASX tech stock could surprise investors appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Some ASX tech stocks have been hit hard over the past year.

In some cases, I think the sell-off has gone too far.

The two shares in this article are down almost 30% and almost 70% from their highs. Those are significant declines, and they show just how much sentiment has shifted.

But I do not think the long-term growth stories have disappeared.

For patient investors, this kind of share price weakness can create the chance to buy high-quality technology businesses at far more attractive prices than before.

Block Inc (ASX: XYZ)

Block is a much broader business than many investors may realise.

This ASX tech stock owns Cash App, Square, Afterpay, and a number of financial tools that connect consumers, sellers, payments, lending, and commerce.

I like Block because it sits on both sides of the transaction.

Cash App gives it a large consumer finance platform. Square gives it relationships with sellers. Afterpay gives it exposure to buy now, pay later and consumer lending. Put together, Block has the chance to build a more connected financial ecosystem than a traditional payments company.

The company is also leaning heavily into artificial intelligence (AI).

Block is using AI internally to improve engineering speed and product development, while also adding smarter tools into Cash App and Square. Its Moneybot and Managerbot products are designed to help customers and sellers identify useful actions, such as managing spending, spotting business cost changes, or improving financial habits.

That is where I think the long-term opportunity becomes interesting.

Block is not just trying to process payments. It is trying to make its platforms more useful, proactive, and embedded in daily financial decisions.

There are risks, of course. Lending growth needs to be managed carefully, competition is intense, and regulation is always worth watching in financial services.

But if Block keeps improving Cash App, Square, Afterpay, and its AI tools, I think the company could be far more valuable in the future.

The Block share price is down almost 30% from its high.

WiseTech Global Ltd (ASX: WTC)

WiseTech is another beaten-down ASX tech stock I would be happy to buy for the long term.

The company is building software for one of the most complicated parts of the global economy: trade and logistics.

That may not sound as exciting as consumer apps or artificial intelligence, but global trade is filled with complexity. Goods need to move across countries, ports, warehouses, customs systems, transport networks, and compliance regimes.

That complexity creates demand for specialist software.

WiseTech’s CargoWise platform already plays a key role for freight forwarders and logistics companies. The company serves more than 22,000 logistics companies and industry participants across 193 countries, including many of the world’s largest freight forwarders and third-party logistics providers.

I think that gives WiseTech a powerful starting point.

The company is also expanding beyond logistics through areas such as trade, supply chain, customs, trade finance, and verified identity and data. That could turn WiseTech into a much broader operating system for global trade.

AI could make that opportunity larger. Logistics involves a lot of manual data entry, document checking, compliance work, and exception management. If WiseTech can use AI to automate more of those tasks, its software could become even more valuable to customers.

The stock is not without risk. WiseTech has faced questions around valuation, acquisitions, leadership, and execution. But the market it serves is enormous, and its software is deeply tied to customer workflows.

The WiseTech share price is down almost 70% from its high.

Foolish Takeaway

Block and WiseTech face different questions, but both still have market positions that could become more valuable over time. 

One is building deeper financial relationships with consumers and sellers. The other is becoming more embedded in the systems that keep global trade moving.

Share price weakness does not remove the risks. But when quality tech businesses fall this far, I think long-term investors should at least be asking whether the market has become too pessimistic.

The post Why these ASX tech stocks could be no-brainer buys appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Whitehaven Coal Ltd (ASX: WHC) share price has been one of the better performers within the S&P/ASX 200 Index (ASX: XJO) in the last 12 months.

It’s understandable that ASX coal shares have not been popular investments in the last few years because of environmental concerns.

But, it’s hard to ignore the fact that coal has been an excellent investment in the past year.

In the past year, the Whitehaven Coal share price has risen around 50%, meaning $10,000 is now worth approximately $15,000, at the time of writing.

A company’s latest result usually has the most material impact on its valuation. But, for a mining business, the commodity price can also be crucial.

Let’s look at what has helped the Whitehaven Coal Ltd (ASX: WHC) share price in recent times.

Stronger commodity price

The business reported that in the three months to 31 March 2026, it saw both metallurgical and thermal coal prices improve, with the prices up 18% and 11% respectively, quarter-on-quarter.

The price of the commodity is particularly important for a miner because of the operating leverage that the business has. Operating costs don’t typically change much month to month, so any increase in the resource price that boosts revenue dollars largely falls straight to the bottom line, aside from paying more to the government.

Whitehaven explained what’s driving the coal prices in the short-term:

The PLV HCC Index strengthened through the quarter reflecting tighter supply due to wet-season disruptions in Queensland, highlighting the current finely balanced market conditions for metallurgical coal.

The gC NEWC Index also appreciated in the quarter reflecting geopolitical developments in the Middle East from late February. Tightening LNG supply and the potential of gas‑to‑coal switching by end users underpinned the March increase in the gC NEWC Index. Energy markets remain volatile during this period of uncertainty. Whitehaven’s NSW thermal portfolio is well positioned to benefit from upward movements in the gC NEWC index.

It also gave some thoughts on the longer-term outlook too:

The expected structural shortfall in global metallurgical coal production, particularly the long-term depletion of HCC from Australian producers combined with increased seaborne demand from India, is anticipated to drive higher metallurgical coal prices over the long-term. Whitehaven’s metallurgical coal portfolio is expected to benefit from these supply constrained market dynamics.

Long-term demand for seaborne high CV thermal coal, together with a structural supply shortfall from underinvestment in new mines and depletion of existing supply, remains a driver for longer-term price support for high CV thermal coal. In developing economies, thermal coal continues to play a critical role in delivering affordable and reliable access to electricity. This focus on energy security is expected to further support long-term demand for high-quality thermal coal. Disruptions are likely to continue to impact supply across the global energy complex for a period following cessation of Middle East tensions.

I’d also suggest that if energy demand by data centres continues to grow, a certain portion of it may end up being fulfilled by coal.

Higher production

It’s also worth noting that the company’s production of coal is increasing compared to the previous financial year.

In the financial year to March 2026, managed saleable coal production was up 9% year-over-year. Equity saleable coal production was also up 9%.

Higher production combined with higher coal prices is a powerful combination.

But, seeing as the coal price has already risen, there may be better opportunities out there.

The post $10,000 invested in Whitehaven shares 12 months ago is now worth… appeared first on The Motley Fool Australia.

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• ASX 200 energy shares lead and market finally cracks 8-day losing streak
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• Here are the top 10 ASX 200 shares today
• Should you buy Coronado Global and Whitehaven Coal shares?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Shares in Codan Ltd (ASX: CDA) have been absolutely unstoppable.

The ASX tech stock is now up 42% in 2026 alone and an eye-watering 137% over the past 12 months at the time of writing.

That kind of rally naturally raises one big question for investors: is it finally time to lock in profits, or could the stock still have further to run?

Multiple growth drivers

Codan is not your typical ASX tech company.

The business develops electronic solutions for government, military, corporate, and consumer markets globally, with operations spanning two key divisions: communications and metal detection.

Right now, both businesses are firing. The communications division is benefiting from rising geopolitical tensions and growing defence spending globally.

In uncertain times, governments and military organisations tend to prioritise mission-critical communication systems early, and the $7 billion ASX tech stock appears well-positioned to benefit from that trend.

Demand has reportedly remained strong across areas linked to unmanned systems and software-defined radios, which are becoming increasingly important in modern defence and public safety applications. The company anticipates net profit after tax at around $170 million, up over 60% year on year.

Margins are also moving in the right direction. Codan now expects communications margins to hit 30% in FY26, earlier than previously forecast. That is a meaningful jump from around 26% in FY25.

And when margins expand in technology businesses, earnings can accelerate very quickly.

The gold boom is helping too

The company’s Minelab metal detection business is also delivering strong momentum.

As gold prices surge globally, interest in gold prospecting has exploded, particularly across parts of Africa where small-scale mining activity remains widespread. That has created strong demand for Codan’s gold detection products.

Importantly, the business is not relying solely on gold miners. The ASX tech stock also continues seeing healthy demand from recreational metal detector users globally, adding another layer of diversification to earnings.

Thanks to these combined tailwinds, Codan now expects FY26 revenue growth to land at the top end of its previously guided 15% to 20% range. That is an impressive result for a company that has already experienced such a massive share price rally.

So, should investors cash out?

Broker sentiment appears a little more cautious after the ASX tech stock’s enormous run.

According to TradingView data, analyst views are mixed. Five out of nine brokers currently rate Codan shares as either a buy or strong buy, while three sit at a hold, and one has a sell recommendation.

The average 12-month price target sits roughly 10% above current levels, suggesting analysts still see some upside ahead, but perhaps not another explosive rally like the past year.

Bell Potter is among the more cautious brokers. It recently retained a hold rating and lifted its price target to $41.30, still below the recent share price near $43.

Meanwhile, Macquarie remains more bullish, highlighting Codan’s growing exposure to the booming unmanned aerial vehicle (drone) market.

The broker upgraded the stock to outperform and lifted its price target to $44.20. That points to a 10% upside from current price levels.

The post This ASX tech stock has exploded 137%, time to cash out? appeared first on The Motley Fool Australia.

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• How high does Macquarie think Codan shares will go?
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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) shares have had a brutal year.

The biotechnology giant is down around 60% over the past 12 months, which is an extraordinary fall for a company of its stature.

That kind of decline can make investors hesitate. It can also create opportunity.

If I had $10,000 to invest in one ASX 200 healthcare share today, I would be willing to put it into CSL. But I would only do so with realistic expectations.

This is not a stock I would buy expecting a quick rebound.

Why CSL shares have become interesting

CSL is facing a difficult period.

The market has lost confidence in the company after disappointing updates, guidance pressure, and concerns about whether the business can return to the quality of growth investors once expected.

Those concerns are fair.

CSL needs to rebuild trust. It needs to show that its plasma collection network, cost base, product portfolio, and Vifor business can deliver better returns over time.

But I do not think the long-term investment case has disappeared.

CSL still owns valuable healthcare assets across plasma therapies, vaccines, and specialist medicines. These are linked to real medical needs, global healthcare demand, and long-term patient treatment.

That is why I think the CSL share price fall could be overdone.

The business has disappointed, but I do not believe the core opportunity has been permanently destroyed.

Being paid to wait

One part of the CSL story that looks more appealing after the selloff is the dividend.

CSL has not traditionally been viewed as a high-yield income stock. Investors usually bought it for growth, with the dividend as a smaller part of the overall return.

But after a 60% share price fall, the dividend yield has become more attractive.

That can make a difference for long-term investors.

If the recovery takes time, investors may still receive income while waiting for sentiment to improve. And if CSL can eventually find its form again and grow its dividend over time, today’s buyers could end up with a much better yield on cost down the track.

That is not guaranteed, of course. Dividends depend on earnings, cash flow, and management decisions.

But I think the income component now adds something useful to the investment case.

How I would invest the $10,000

I would not assume CSL has already hit the bottom.

The shares could remain volatile. Investor confidence is weak, and the company still needs to prove itself.

For that reason, I would consider investing gradually.

An investor could put part of the $10,000 into CSL now and keep the rest available in case the shares fall further or more evidence of a recovery appears.

That approach gives some exposure today without relying on perfect timing.

Foolish takeaway

I think CSL shares are worth buying after such a large fall, but this is no longer the simple set-and-forget quality story it may have seemed in the past.

The company has work to do.

That said, the share price now reflects a lot of disappointment. CSL still has global healthcare assets, long-term demand drivers, and a dividend yield that gives investors something to collect while they wait.

If I were investing $10,000 today, I would be comfortable buying CSL shares. I would just be prepared to be patient, because the recovery may be measured in years rather than weeks.

The post Should I invest $10,000 in CSL shares before the end of May? appeared first on The Motley Fool Australia.

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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.

Thankfully for income investors, the Australian share market is home to a wide range of dividend-paying ASX shares.

But which ones could be top buys in May?

Listed below are three ASX dividend shares that could be worth buying this month. Here’s what you need to know about them:

Amcor plc (ASX: AMC)

The first ASX dividend share to look at is Amcor.

Amcor is a global packaging company that supplies flexible and rigid packaging products to customers across food, beverage, healthcare, personal care, and other consumer markets.

This gives the business exposure to everyday demand. Packaged food, medicine, and household goods continue moving through supply chains regardless of short-term market sentiment.

It is thanks to this that some analysts are expecting Amcor shares to offer dividend yields of more than 7% in both FY 2026 and FY 2027.

Rural Funds Group (ASX: RFF)

Another ASX dividend share worth looking at is Rural Funds Group.

It owns agricultural properties across Australia and leases them to operators in sectors such as cattle, cropping, almonds, macadamias, and vineyards.

The appeal here is the nature of the company’s assets. Farmland is a real asset tied to long-term demand for food and agricultural production. Rental income can also provide a clearer earnings stream than direct exposure to farm operating conditions.

Rural Funds still faces risks from interest rates, weather conditions, and tenant performance. But its portfolio gives income investors access to a part of the property market that looks very different from offices, shopping centres, or warehouses.

Its shares are expected to offer dividend yields of around 6% in FY 2026 and FY 2027.

Lottery Corporation Ltd (ASX: TLC)

A third ASX dividend share that could appeal is Lottery Corporation.

The company operates lottery and keno licences across much of Australia. These licences provide exposure to a large, regulated market with strong brand recognition and recurring customer activity.

Lottery earnings can be influenced by jackpot cycles, but the business has a cash-generative model and limited capital intensity compared with many other industries.

This can support dividends over time, particularly when trading conditions are favourable.

For income investors seeking exposure outside the usual sectors, Lottery Corporation offers a dividend stream backed by a defensive and highly cash-generative business model.

It is expected to offer dividend yields of 3.2% in FY 2026 and then 3.7% in FY 2027.

The post 3 excellent ASX dividend shares for income investors to buy in May appeared first on The Motley Fool Australia.

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• Should investors buy low on these ASX shares hitting 52-week lows?
• Hunting passive income? Here are three ASX dividend shares to buy
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• Should you buy Amcor shares for the 7% dividend yield?
• Is this the best ASX dividend stock to buy for passive income?

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 The Lottery Corporation. The Motley Fool Australia has positions in and has recommended Amcor Plc and Rural Funds Group. The Motley Fool Australia has recommended The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Brambles Ltd (ASX: BXB) shares were smashed on Monday after the pallet pooling giant cut its FY26 profit guidance.

At market close on Monday, the Brambles share price finished down 20.23% to $17.63.

That fall put Brambles on track for its worst trading day in more than two decades.

The sell-off has added to a painful year for shareholders. Brambles shares are now down 23% in 2026 and 19% over the past year.

The damage comes after the company warned that short-term service issues in the US and supply chain inefficiencies in Europe would weigh on sales and profit.

So, what went wrong?

Profit guidance takes a hit

In its update, Brambles said it now expects FY26 underlying profit growth of between 3% and 5% at constant currency rates.

That is well below its previous guidance range of 8% to 11%.

The downgrade is mainly tied to problems in parts of the company’s US subcontractor service centre network.

Repair capacity constraints in some locations are making it harder to fully service stronger-than-expected customer demand.

Those issues are also pushing up short-term costs, with Brambles expecting a US$60 million earnings impact from the repair capacity constraints.

The pressure is also flowing through to the top line as well. Sales revenue growth is now expected to be 2% to 3%, compared with the previous range of 3% to 4%.

On the upside, Brambles said free cash flow before dividends is now expected to land at the upper end of its previous range. It is now pointing to US$1 billion to US$1.1 billion, compared with US$950 million to US$1.1 billion previously.

US network is the main problem

Brambles said it is already taking steps to improve service levels and restore pallet availability across the affected parts of its US network.

This includes moving more pallets between locations, adding repair capacity, and buying new pallets to help meet customer demand.

The company expects to buy around 2 million pallets in the fourth quarter of FY26, with further purchases planned in the first half of FY27.

Management expects the service issues to be resolved by the first half of FY27.

Furthermore, Europe is adding some pressure, with Brambles pointing to supply chain inefficiencies in the region. However, it expects part of this impact to be offset by overhead cost savings.

Buyback fails to calm investors

Brambles also announced a US$400 million on-market share buyback, but that hasn’t been enough to settle investors today.

The buyback is expected to start after the current program is completed. It will then run through the remainder of FY26 and across FY27.

A buyback of that size would usually give the share price some support, especially from a business with strong cash flow.

Instead, the market is looking straight past the capital return and focusing on the earnings downgrade.

Foolish Takeaway

This is a tough update from Brambles, and the market reaction shows investors were caught off guard.

The buyback and cash flow outlook offer some support, but the profit downgrade did most of the damage yesterday.

A one-day fall of more than 20% is rare for a company of this size, especially one with a defensive reputation.

The stock may attract bargain hunters, but investors will want proof that the US service issues are being fixed first.

The post Brambles shares crash 20% in worst fall in more than two decades appeared first on The Motley Fool Australia.

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• Why are Brambles shares crashing more than 15% to a new 12-month low today?
• Brambles revises FY26 outlook, announces new US$400m buy-back

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 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.

ResMed Inc. (ASX: RMD) shares have not had an easy run lately.

The ASX 200 blue chip healthcare stock has fallen heavily from its highs, leaving investors to ask whether this is a warning sign or a buying opportunity.

I think it could be the latter.

ResMed remains one of the strongest global healthcare businesses on the ASX, and I believe its long-term opportunity is still attractive despite what the recent share price weakness might suggest.

A global leader in sleep health

ResMed is best known for its products that treat sleep apnoea and other breathing-related conditions.

Its devices, masks, software, and connected care tools help patients manage their therapy and allow healthcare providers to support treatment more effectively.

The market opportunity is large.

Sleep apnoea remains underdiagnosed and undertreated around the world. Many people who could benefit from treatment still have not been diagnosed, while others may not yet have started therapy.

That gives ResMed a long runway.

As awareness improves and more people enter the treatment pathway, I think ResMed can keep growing across devices, masks, accessories, and software.

Why I like the business model

One of the things I like most about ResMed is its razor-and-blades style business model.

The device is important, but the ongoing revenue stream is just as valuable. Patients often need masks, cushions, tubing, filters, and other accessories over time.

That creates repeat demand.

This can make ResMed a higher-quality business than a company relying only on one-off product sales. Once a patient is using therapy, there can be an ongoing relationship between the patient, provider, and ResMed’s ecosystem.

I also like the margin profile.

Healthcare technology companies with strong brands, specialised products, and global distribution can generate attractive margins when they execute well. ResMed has spent years building trust in a market where reliability and comfort are critical.

What about drug competition?

One concern hanging over the stock is the potential for a drug treatment for obstructive sleep apnoea.

Apnimed has been trialling AD109, and the data has created debate about whether a pill could reduce the need for traditional sleep apnoea devices in some patients.

I think investors should pay attention to this, but I do not think it destroys the ResMed investment case.

A drug treatment may be useful for some people, particularly those who cannot tolerate CPAP therapy or refuse to use it. But sleep apnoea is a broad condition with different levels of severity and different patient needs.

For many patients, devices and masks are likely to remain an important part of treatment.

There is also a practical point. A new drug would still need to prove itself over time across safety, durability, cost, access, and real-world use. Healthcare adoption does not always move as quickly as share prices suggest.

So, while the risk is real, I see it as a manageable threat rather than a reason to dismiss ResMed.

A strong buy?

The share price fall has made ResMed look much more interesting to me.

This is still a global leader in a large healthcare market, with a high-margin recurring revenue model and a long history of innovation.

The company will need to keep improving its products, defending its market position, and proving that new competition will not derail growth.

But I think the market may be underestimating the durability of the business.

Foolish takeaway

I think the current weakness could be giving patient investors a chance to buy a high-quality healthcare business at a more appealing price.

Sleep health remains a large, underpenetrated market, and ResMed still has the brand, product ecosystem, and recurring revenue base to remain a major player for many years.

For long-term investors, I think this fallen ASX 200 blue chip could be a strong buy.

The post Why this fallen ASX 200 blue chip could be a strong buy appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares that could bounce back in the second half of 2026
• Buy, hold, sell: ResMed, Sigma, and TechnologyOne shares
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• Why are Resmed shares lagging if the business keeps compounding?

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 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.

Cochlear Ltd (ASX: COH) has had a horrid start to 2026.

The stock hit $319.56 at its 52-week high and trades near $94 today.

That is approximately a 70% decline in less than a year.

Most of the damage was done in a single week in April following one of the worst earnings downgrades in the company’s listed history.

None of that is pretty.

But for long-term investors who can separate the near-term noise from the long-term story, the current price may be worth a much closer look.

What went wrong

The catalyst for the collapse was a trading update released on 22 April 2026, which cut Cochlear’s FY2026 underlying net profit guidance from $435-460 million to $290-330 million.

That is a reduction of approximately 30% at the midpoint, and it stunned a market accustomed to Cochlear’s premium valuation and consistent execution.

The drivers of the downgrade were a combination of factors.

Hospital capacity constraints and reduced referral activity from the hearing aid channel weighed on surgical volumes in developed markets, particularly in the US.

Consumer sentiment in the US reached historic lows, which appears to have pushed some patients to delay what they perceive as a discretionary healthcare decision.

On top of that, disruptions in the Middle East has created uncertainty around order cancellations and receivables, and a stronger Australian dollar added a further $25 million headwind after tax.

The market responded swiftly, sending the shares down almost 40% in a single session.

Does the long-term investment case remain intact?

Strip away the short-term headwinds and the underlying demand picture tells a different story.

Cochlear holds approximately 50% global market share in cochlear implants, a position it has built over four decades of research and development investment.

The company reinvests approximately 13% of revenue into R&D each year, ensuring its technology lead remains difficult for competitors to close.

Furthermore, demand for its products is not cyclical in the traditional sense.

The adult and seniors segment, which has historically grown at approximately 10% per annum over many years, represents an addressable market of over six million customers in developed markets alone, and current penetration sits at just 3%.

 CEO Dig Howitt stated in the April ASX announcement:

The clinical need for cochlear implants continues to grow, particularly for the adult and seniors segment. For people with severe to profound hearing loss, cochlear implants are more effective than hearing aids for indicated patients, with 95% of recipients reporting significantly higher satisfaction after switching to a bimodal hearing solution. Cochlear implants are also associated with a lower incidence of dementia, with dementia rates lower than in hearing aid users and comparable to those with normal hearing.

In other words, the company still views its products as filling an essential need.

What the brokers think

The broker community remains divided on how quickly Cochlear recovers but broadly constructive on the longer-term outlook.

Jarden carries a price target of $169, implying almost 80% upside from current levels.

Wilsons Advisory has initiated a buy recommendation, describing the current valuation as a compelling entry point ahead of earnings acceleration.

Macquarie and Morgans are more cautious in the near term, having slashed their targets sharply in response to the guidance cut.

The divergence in views reflects uncertainty about whether the developed market softness is cyclical or something more structural.

However, the fact that several brokers still see meaningful upside at current levels suggests the market may have overshot to the downside.

Foolish takeaway

Cochlear is perhaps not a stock for investors seeking a quick recovery.

Near-term earnings visibility is limited, the FY2026 result will be weak, and sentiment remains negative.

However, for investors with a multi-year time horizon, this is a business with a dominant competitive position, a deeply structural demand tailwind, and a valuation that is materially cheaper than it has been at any point in over a decade.

The post Why Cochlear’s brutal 2026 selloff could be creating a once-in-a-decade opportunity appeared first on The Motley Fool Australia.

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

The Commonwealth Bank of Australia (ASX: CBA) dividend yield has seen a significant jump after the CBA share price declined significantly following its FY26 third-quarter update and the Australian Federal budget.

As the above chart shows, at the time of writing, it’s down more than 10% since 7 May. As a result, the dividend yield has also been boosted by more than 10%.

Let’s take a look at what has happened to the potential CBA dividend yield.  

Forecast CBA dividend yield for FY26

The ASX bank share has provided investors with steady dividend growth since the negative effects of COVID-19 in 2020.

Experts expect the business to increase its annual dividend per share in FY26.

CMC Invest suggests the bank could pay an annual dividend per share of $5.05 in the 2026 financial year – this would be growth of 4% year-over-year. At the current CBA share price, that implies a possible grossed-up dividend yield of 4.5%, including franking credits.

Is dividend growth likely in FY26?

The ASX bank share is doing many of the right things to grow its earnings.

In the FY26 third-quarter update, Commonwealth Bank reported quarterly cash net profit of approximately $2.7 billion, representing year-over-year growth of 4%. That earnings growth rate essentially matches what analysts expect the FY26 annual dividend growth to be.

Within that quarterly update, business lending increased 12.5%, household deposits rose 9.1% and home lending grew 7.1%. But, a key negative was that the ASX bank share’s loan impairment expense was $316 million, with higher collective provisions reflecting heightened uncertainty. However, underlying portfolio credit quality remained “sound”.

What about FY27?

Analysts expect further dividend growth for owners of Commonwealth Bank shares in the subsequent financial year.

In FY27, the ASX bank share is forecast to see the annual dividend per share rise to $5.20 per share. That would represent year-over-year growth of 3%, if the prediction on CMC Invest comes true.

At the current CBA share price, that translates into a potential FY27 grossed-up dividend yield of 4.7%, including franking credits, at the time of writing.

So, while the CBA dividend yield has certainly increased in recent times, the ASX bank share still does not offer the same size dividend yield as some of its peers like National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).

CBA is not one of the first shares I’d buy for dividends.

The post Is the CBA share price a buy for its 4.5% dividend yield? appeared first on The Motley Fool Australia.

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• How low could CBA shares go? 4 brokers have their say

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.