Author: openjargon

ASX consumer discretionary shares have suffered a tough 12 months. 

The sector has faced several headwinds over the past year. 

Why are consumer discretionary shares struggling?

Some of the major contributors have been high interest rates, weaker consumer confidence, pressure on household budgets, and growing evidence that retail earnings are softening.

Consumer discretionary shares rely on consumer confidence because they sell non-essential products that consumers can easily delay or cut back on when they feel uncertain about their finances. 

Lower interest rates can reduce mortgage and debt repayments, giving consumers more disposable income to spend on clothing, dining, and entertainment. 

As a result, falling rates, stronger employment and improving consumer confidence can increase discretionary spending and support retailers‘ sales and earnings, while the opposite can hurt them.

One such consumer discretionary stock affected by these pressures is Lovisa Holdings Ltd (ASX: LOV). 

The fashion jewellery and accessories retailer has seen its share price fall 42% in the last 12 months. 

However, a new report suggests it could be a rebound candidate. 

Bell Potter optimistic

Overall, Bell Potter believes this option stands out amongst the retail sector because of its global expansion potential, attractive gross margins and low-price-point proposition. 

The broker said the key attraction is Lovisa’s international growth opportunity, particularly in the US and UK. Bell Potter sees significant room to expand beyond the current ~250 US stores, while the UK could benefit from the exit of a major competitor. 

They also expect relatively easier comparable-sales conditions in the coming months, which could help Lovisa maintain its strong start to FY27.

We continue to see further prospects arising from changes in the US/UK/South African competitor environment with the exit of the key competitor, offsetting risks in the Australian market with a fast growing competitor. 

While we remain cautious on the current weak consumer landscape and investments into market share & store refits to mitigate competitive pressures in key markets, we see a higher tolerance re accessibility from a low price point perspective together with a strong gross margin. LOV stands out in our coverage as a global retailer scaling its presence from ~50 regions with strong US/UK performance with better efficiencies within the US store network.

Healthy upside 

At the time of writing, Lovisa shares are trading at approximately $22.87.

However, the broker has a buy rating and $27.00 price target on the consumer discretionary stock. 

This indicates a healthy upside of 18%. 

The post Is this the best value stock amongst the ASX consumer discretionary sector? appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $6,500 monthly passive income?
• What sort of upside is UBS predicting for Lovisa shares?
• Here are the top 10 ASX 200 shares today
• 33 ASX shares going ex-dividend next week
• How much is needed in superannuation to target a $70,000 annual passive income?

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa. 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) shares are in freefall, and investors are starting to ask an uncomfortable question.

The counter-drone technology company closed at $1.60 on Monday, a fresh 52-week low, leaving the share price a staggering 76% below its previous high of $6.70, reached at the end of October last year.

When a stock falls that hard, the temptation to call a bottom gets stronger. But is the risk-reward actually tempting enough to buy? Or is this a falling knife dressed up as a bargain?

The demand story hasn’t gone anywhere

The numbers tell a grim story. DroneShield shares are down 20% over the past month and 49% over the past year. For a stock that was once one of the ASX’s hottest momentum plays, this is a stunning reversal of fortune.

Here’s the twist, though. While the share price has collapsed, the underlying business case hasn’t. Drones are not going away. If anything, they’re becoming more central to modern warfare, border security and the protection of critical infrastructure. That means governments and defence customers still need systems that can detect, track and stop them.

DroneShield is actually converting that demand into hard revenue. Its latest update showed FY26 committed revenue had reached $251 million, with a further $46 million already committed for FY27 and beyond. First-half revenue surged 74% to $125.8 million, while recurring revenue rocketed 229% to $11.5 million — a sign the business is shifting from one-off sales toward something stickier.

The company also landed its first order for its new RfRecon product from an existing Western European military customer. It’s not financially material yet, but it’s early validation for another product in an expanding range.

The catch: this is still a loss-making bet

None of that changes the fact that DroneShield is bleeding cash. First-half underlying EBITDA was $12.4 million in the red, and the statutory loss came in at $32.2 million.

DroneShield shares remain one of the highest-risk stocks on the ASX. Defence contracts don’t arrive on a neat schedule, so revenue can be lumpy and unpredictable.

The company is scaling fast, but investors still need proof that bigger revenue eventually turns into sustainable profit, not just bigger losses. And as governments pour more money into counter-drone systems, larger, better-funded defence contractors could pile into the same opportunity, squeezing DroneShield’s edge.

What are the brokers saying?

TradingView data shows just four analysts cover the stock — split evenly, with two buys and two sells.

The average 12-month price target for DroneShield shares sits at $1.99, roughly 24% above the current share price. Bell Potter is the most bullish at $2.40, with Canaccord Genuity close behind at $2.60.

Foolish takeaway

DroneShield isn’t a stock for the faint-hearted. The growth numbers are genuinely exciting, but the losses, volatility and competitive threats are just as real.

For risk-tolerant investors who believe in the counter-drone thematic, this pullback might be the entry point they’ve been waiting for. For everyone else, this is one to watch from the sidelines.

The post DroneShield shares just hit a new low. Is the only way up from here? appeared first on The Motley Fool Australia.

More reading

• DroneShield shares have crashed 51% in a year. Here’s why I’d buy them today
• Are DroneShield shares a buy at their 52-week low?
• These are the 10 most shorted ASX shares
• $10,000 invested in DroneShield and Core Lithium shares 3 years ago is now worth…
• DroneShield shares are down 75%. Could this huge short bet backfire?

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 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.

Shares in water technology company Vysarn Ltd (ASX: VYS) are up more than 25% over the past 12 months, but according to the team at Morgans there is plenty left in the tank.

Deal failure leads to downgrade

This prediction comes despite the recent announcement that Vysarn had abandoned its proposed acquisition of NewGround, which it had announced in June.

Vysarn was to buy out NewGround for 33 million shares and $25 million in cash, with the deal expected to be 25% earnings per share accretive to Vysarn shareholders.

Morgans said the failure of the deal led them to downgrade their pre-tax profit expectations for Vysarn by 14% in FY27 and 19% in FY28, which would be the first full year of ownership.

But the broker added that Vysarn was now cashed up.

As they said:

Unwinding the cash consideration and noting the recent $65m raise – which included ~$15m for growth initiatives and working capital – the company has significant balance sheet optionality.

Morgans reduced its price target on Vysarn shares from $1.40 to $1.20, compared to 78 cents currently, but said it was still a solid business.

The broker said:

VYS is transforming into a multi-jurisdictional, vertically integrated water business. The company is continuously deploying cash into engineering, facilities management and consulting businesses, which is a sound strategy that should see the company continue to improve in quality. Moreover, the prospects of owning and selling water … continue to strengthen.

Solid growth in earnings

Vysarn’s FY26 operational revenue grew by 31% to $140 million, while net profit was up 41% to $15.1 million.

The company said of the result:

In FY2026, Vysarn continued to develop and execute its strategy to be a leading vertically integrated water services and infrastructure provider across multiple geographies and sectors in Australia. The Company maintained its trend of material year on year earnings growth delivered by the performance of its diversified water services across consultancy, hydrogeological drilling, test pumping, managed aquifer recharge (MAR) and wastewater treatment. While Vysarn’s growth to date has been underpinned by the iron ore sector in Western Australia (WA), the Company’s targeted pursuit of various diversified growth opportunities across other sectors and geographies is starting to bear fruit. The Company anticipates that meaningful organic growth in future periods will start to be driven by sectors and regions other than resources and WA.

The company said it would remain on the lookout for more acquisitions, and was also intending to invest heavily in senior management.

Vysarn is valued at $496.5 million.

The post This ASX water technology stock could jump 45% Morgans says appeared first on The Motley Fool Australia.

More reading

• Vysarn FY26 earnings: Revenue and profit surge

Motley Fool contributor Cameron England 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 Vysarn. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A comfortable retirement means something different to everyone, but having a target in mind for your retirement income brings peace of mind.

There are calculators online, such as the federal government’s Moneysmart calculator, which can show you how much in today’s dollars you are likely to have at retirement, depending on your current circumstances.

This is extremely useful as it allows you to adjust your superannuation contributions if you feel you’ll be falling short of what you need.

But how do you figure out what you need in the first place?

What is a comfortable retirement?

According to the Association of Superannuation Funds of Australia’s (ASFA) retirement standard, singles need $56,166 in income per year to have a comfortable retirement, while couples need $78,998.

Their definition of a comfortable retirement involves the ability to afford top-level private health cover, to own and maintain a reasonable car, to travel occasionally and to afford social activities.

Keep in mind, though, that ASFA’s standard assumes you own your own home and also draw a part pension once you hit the age of 67.

How much superannuation do I need to earn $70,000 per year in passive income?

Today we’re assuming you’re aiming for an income stream of $70,000 per year.

I will calculate this on the basis of dividends alone, with no drawdown of capital.

If you were able to earn a very high dividend yield of 10%, you’d need just $700,000 in retirement savings.

I’d suggest this level of earnings is unsustainable.

If you earned just 5% you’d need double this, at $1.4 million.

But I’d argue that with the benefit of franking credits, this is aiming too low.

So let’s assume you could earn 7.5%. In this case, you’d need $933,333 in superannuation savings.

Franking credits are crucial to this equation. If you invest in fully franked dividends, you get back all the tax the company has already paid.

This is because retirees are not taxed on their superannuation earnings.

In practical terms, this means a share paying a 5% dividend yield actually pays 7.14% once franking credits are included.

So what shares might help hit this target?

Real estate investment trusts can be solid investments.

Digico Infrastructure REIT (ASX: DGT) pays a 4.65% dividend, albeit unfranked, GPT Group (ASX: GPT) pays 5.38%, and Centuria Office REIT (ASX: COF) pays 11.36%.

Infrastructure stocks such as APA Group Ltd (ASX: APA) and toll roads operator Atlas Arteria Ltd (ASX: ALX) pay healthy dividends of 5.33% and 8.98%, respectively.

Among the utilities, Origin Energy Ltd (ASX: ORG) is paying 5.14% fully franked, AGL Energy Ltd is paying 5.9%, and Telstra Ltd (ASX: TLS) is paying 4.34%, 90% franked.

In the financial services sector, Regal Partners Ltd (ASX: RPL) is paying 11.53%, Bank of Queensland Ltd (ASX: BOQ) is paying 6.08%, and Westpac Banking Corporation (ASX: WBC) is paying 4.45%.

How to give your super a boost

If you want to top up your superannuation, it’s also worth reading up on concessional contributions, which are contributions you can make to your superannuation each year up to a cap of $32,500, which are only taxed at 15%.

Keep in mind that the $32,500 cap includes any employer contributions and salary sacrifice contributions.

The post How much superannuation do I need to earn $70,000 per year in passive income? appeared first on The Motley Fool Australia.

More reading

• Are Telstra shares a good buy for passive income?
• Westpac, ANZ, NAB or CBA shares? Which ASX bank stock should I buy for $5,000 a year in passive income?
• Worried about a recession? These ASX shares would be just fine
• How much is needed in superannuation to target a $6,500 monthly passive income?
• How much superannuation is needed to target $5,500 per month in passive income?

Motley Fool contributor Cameron England 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 Apa Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Well, that didn’t last long. After yesterday’s tentatively positive start to the trading week, many investors may have hoped we had turned a corner on last week’s disastrous performance of the S&P/ASX 200 Index (ASX: JO). Alas, it was not to be.

The ASX 200 started in red territory this morning and only got worse over the session. By the time trading ended, the index had lost 0.88% of its value and had settled at 8,672.5 points.

This rather terrible Tuesday for Australian investors came after a similarly downbeat night on Wall Street overnight to kick off the American trading week.

The Dow Jones Industrial Average Index (DJX: .DJI) did start strong, but ended up recording a 0.29% loss.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared even worse, dropping 0.56%.

But let’s get back to the local markets now and take stock of how the various ASX sectors handled today’s difficult trading conditions.

Winners and losers

Despite today’s pessimism, we still saw a few sectors make hay.

But first, it was gold shares that copped the worst of it. The All Ordinaries Gold Index (ASX: XGD) ended up crashing 3.08%.

Broader mining stocks had a rough one as well, with the S&P/ASX 200 Materials Index (ASX: XMJ) cratering 2.21%.

Continuing with the commodities theme, energy shares also had a shocker. The S&P/ASX 200 Energy Index (ASX: XEJ) tanked 1.62% this session.

Financial stocks had a day to forget as well, illustrated by the S&P/ASX 200 Financials Index (ASX: XFJ)’s 1.08% plunge.

Real estate investment trusts (REITs) fared a little better. The S&P/ASX 200 A-REIT Index (ASX: XPJ) still lost 0.59%, though.

Industrial shares were right behind that, with the S&P/ASX 200 Industrials Index (ASX: XNJ) sliding 0.43%.

Our last losers this Tuesday were utilities stocks. The S&P/ASX 200 Utilities Index (ASX: XUJ) ended up slipping down 0.12%.

Let’s turn to the green sectors now. Leading the winners were healthcare shares, as you can see from the S&P/ASX 200 Healthcare Index (ASX: XHJ)’s 1.5% surge.

Consumer staples stocks held their value, too. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) jumped 0.88% this session.

Its consumer discretionary counterpart was just behind that, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) leaping 0.87%.

Communications stocks were spared as well. The S&P/ASX 200 Communication Services Index (ASX: XTJ) advanced 0.32%.

Finally, tech shares managed to stay on the right side of the line, evident by the S&P/ASX 200 Information Technology Index (ASX: XIJ)’s 0.29% bump.

Top 10 ASX 200 shares countdown

Healthcare stock 4DMedical Ltd (ASX: 4DX) was our chart-topper this Tuesday. 4DMedical shares roared 8.72% higher this session to close at $3.74 each.

This came despite no fresh news or announcements from the company today.

Here’s how the other top stocks landed their planes:

ASX-listed company	Share price	Price change
4DMedical Ltd (ASX: 4DX)	$3.74	8.72%
Telix Pharmaceuticals Ltd (ASX: TLX)	$17.75	8.63%
Life360 Inc (ASX: 360)	$20.52	5.02%
Perpetual Ltd (ASX: PPT)	$18.70	3.54%
News Corporation (ASX: NWS)	$47.21	3.19%
AUB Group Ltd (ASX: AUB)	$28.91	3.18%
New Hope Corporation Ltd (ASX: NHC)	$6.47	3.03%
ResMed Inc (ASX: RMD)	$31.37	2.85%
JB Hi-Fi Ltd (ASX: JBH)	$67.19	2.85%
Megaport Ltd (ASX: MP1)	$16.79	2.69%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

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

More reading

• Buy, hold, sell: Domino’s Pizza, Telix Pharmaceuticals, Westfarmers shares
• ASX 200 drops again as selling continues
• $10,000 invested in Zip and New Hope shares 3 years ago is now worth…
• New Hope shares near 52-week high. Here’s what stood out in the result
• 3 ASX 200 shares tipped by experts to jump 30% to 62%

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 Life360, Megaport, ResMed, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended Life360 and ResMed. The Motley Fool Australia has recommended Aub Group and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) is a powerful ASX dividend share with an impressive market share and a proud record of paying pleasing passive income to shareholders.

However, CBA is not one of the businesses I’d buy for dividends, as impressive as the ASX bank share has been.

FY26 saw the business hike its annual dividend per share by 4% to $5.05. At the time of writing, that translates into a grossed-up dividend yield of 4.7%, including franking credits.

For me, there are other ASX dividend shares that offer a more compelling dividend yield and/or significantly more dividend growth potential. The following two stocks are much more appealing to me.

L1 Long Short Fund Ltd (ASX: LSF)

This business is a listed investment company (LIC), which means it invests in other shares/assets on behalf of shareholders. Having that diversification within a single investment is appealing compared to CBA, which is just one business and has a significant focus on providing home loans in Australia (an area of slow growth at best, right now).

L1 generally likes to look at industries and specific businesses that don’t get as much investor attention and don’t trade on high price/earnings (P/E) ratios. The investment team have delivered significant success in industries like materials, industrials and communication services.

Buying (and selling) materials shares at the right times can be very effective as investments because of how cyclical they can be.

At the end of August 2026, the ASX dividend share’s portfolio registered an average net return of 17.1% per year over the prior five years, which is strong enough to deliver both capital growth and good dividends.

In FY26, the LIC grew its annual payout by 14.5% – a much stronger growth rate than CBA.

I expect the next four quarterly dividends from L1 Long Short Fund will come to at least 16.2 cents per share, which would be a grossed-up dividend yield of 4.8%, including franking credits.

WCM Quality Global Growth Fund – Active ETF (ASX: WCMQ)

The other ASX dividend share I want to highlight is this exchange-traded fund (ETF) offering from WCM.

WCM is a fund manager based in Laguna Beach, California. That’s a deliberate choice to be so far away from the noise of Wall Street in New York.

There are two key criteria for WCM to consider a company for this portfolio. It must have a growing competitive advantage (expanding economic moat) and a corporate culture that supports the expansion of the economic moat.

The fund manager believes that the direction of the economic moat is more important than the absolute width or size. Therefore, seeing a rising return on invested capital (ROIC) – one of the main ways it measures that improvement – is more important than a large but static or declining economic moat.

Additionally, WCM has team members solely dedicated to analysing the corporate culture of a business.

Since the WCMQ ETF’s inception in August 2018, its portfolio has returned an average of 14.9% (net), compared to a 12.8% return per year for the global share market.

The ASX dividend share aims to provide a minimum annualised cash dividend yield of 5%. That’s a stronger starting yield than CBA shares and I expect the distribution can grow at a faster pace over the long-term by focusing on high-quality shares.

The post Forget CBA shares! Buy these ASX dividend shares instead for passive income appeared first on The Motley Fool Australia.

More reading

• ASX 200 drops again as selling continues
• Down 12%: Are CBA shares a buy, sell or hold now?
• Westpac, ANZ, NAB or CBA shares? Which ASX bank stock should I buy for $5,000 a year in passive income?
• How much is needed in superannuation to target a $6,500 monthly passive income?
• Vanguard ETFs vs. Betashares ETFs: Who’s coming out on top?

Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund and Wcm Quality Global Growth Fund. 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.

The S&P/ASX 200 Index (ASX: XJO) has fallen further this week as investor sentiment continues to deteriorate.

Ongoing conflict between the US and Iran is driving fresh concerns about restricted oil supply and inflation, and the renewed fears about further interest rate hikes are spooking investors.

Let’s find out how the shift in sentiment is affecting major ASX 200 shares like Domino’s Pizza Enterprises Ltd (ASX: DMP), Telix Pharmaceuticals Ltd (ASX: TLX), and Wesfarmers Ltd (ASX: WES), and what brokers tip next.

Buy Telix Pharmaceuticals shares

Telix shares have rocketed over 10% higher in Tuesday afternoon trade to $17.99 apiece. Today’s increase means the shares are now up 58% year to date.

Today’s increase comes on the back of yesterday’s news that its brain cancer imaging drug, Pixclara, has received approval from the US FDA. This makes it the first FET-PET imaging drug cleared for use in glioma and expands Telix’s precision medicine portfolio.

Telix says Pixclara is already the subject of a Phase 3 trial for diagnosis in additional brain conditions, with potential expansion to brain metastases. 

The company said it plans to target market leadership in both imaging and treatment for several high-need cancers.

Telix’s broader pipeline includes late-stage assets in prostate, kidney, and glioblastoma cancers, with a focus on bringing further precision medicine products to both existing and new markets worldwide.

Investors were clearly thrilled with the news, and many are rushing to snap up the shares.

Analysts are very bullish on the outlook for the stock, too. Market Index data shows the majority of brokers have a buy rating on the shares, and even after today’s share price spike, the $24.68 average target price implies there is potential for about 37% upside ahead.

Hold Domino’s Pizza shares

Domino’s Pizza shares have climbed higher on Tuesday afternoon, up around 1% to $19.14 a piece at the time of writing. The shares are still down 12% year to date.

It’s been a volatile month for the pizza operator. Its share price fell around 6% after the food operator announced its FY26 results, including a 11.2% decrease in revenue, and a statutory NPAT loss of $134.2 million. It also announced $255.7 million in non-cash write-downs and impairments.

Domino’s underlying NPAT was up 4% for the 12-month period, and in line with guidance, but EBITDA fell 6.1%. The company also cut its total FY26 dividend by 25.3% to 57.5 cents.

Going forward, Domino’s said it is planning to return to profitable growth in FY27 after a period of resetting its store network and business model. 

But it looks like the experts are on the fence about whether this growth can come to fruition. Market Index data shows the majority of brokers have a hold rating on the ASX shares. The $20.10 average target price implies an upside of around 5% at the time of writing.

Sell Wesfarmers shares

Wesfarmers shares are in the red at the time of writing, down around 0.5% to $72.42 each. The shares have crashed by around 22% since late July and are now down 11% for the year to date.

The shares were pushed lower in August amid broad pressure on consumer and retail stocks, as well as concerns about inflation and interest rate increases.

The sell-off also picked up pace after the conglomerate posted its FY26 results in late August.

The company reported a 3.4% increase in revenue to $47.3 million and a 7.3% increase in EBIT. But statutory NPAT fell 1.8% to $2.8 million, including significant items, or was up 8.3% excluding them. 

Going forward, Wesfarmers said it expects higher capital expenditure in FY27, of $1.3 billion to $1.5 billion. 

But investors were spooked, potentially because, although the result was robust, it raises questions about how the business can continue to grow in a weakening market.

Brokers are concerned, too. Market Index data shows the majority now have a strong sell rating on Wesfarmers shares. After the latest price crash, the $77 average target price implies around a 6% upside at the time of writing.

The post Buy, hold, sell: Domino’s Pizza, Telix Pharmaceuticals, Westfarmers shares appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $6,500 monthly passive income?
• Here are the top 10 ASX 200 shares today
• Why are Telix Pharmaceuticals shares charging higher today?
• Telix Pharmaceuticals shares: FDA approves Pixclara brain cancer drug
• By September 2027, Wesfarmers shares could turn $10,000 into…

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 Domino’s Pizza Enterprises, Telix Pharmaceuticals, and Wesfarmers. The Motley Fool Australia has recommended Domino’s Pizza Enterprises, Telix Pharmaceuticals, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

SpaceX has been one of the highest-profile listings of 2026.

But excitement and a good entry price are not always the same thing.

Space Exploration Technologies Corp (NASDAQ: SPCX) shares closed at US$148.15 on Monday.

That’s above the US$135 IPO price, although the stock has already been on a wild ride since listing in June.

It briefly traded as high as US$225.64 just days after its debut.

Investors who chased the early surge are already sitting on a sizeable loss.

And while the 34% pullback makes SpaceX look cheaper, that doesn’t necessarily mean it’s good value.

Yes, I would love to own SpaceX shares at some point.

I just wouldn’t buy them around current levels.

Why I want to own SpaceX

There is a lot I like about the business.

SpaceX has built a position that would be extremely difficult for another company to copy.

Its launch business is already enormous, and Starlink continues to add customers.

Starship could also dramatically reduce the cost of putting satellites and other payloads into orbit if the program works as planned.

The growth numbers are pretty impressive, too.

Second-quarter revenue jumped 92% to US$7.8 billion, while adjusted EBITDA rose 191% to US$3.5 billion.

Starlink now has around 12 million subscribers, and SpaceX is also spending heavily on AI infrastructure alongside its space and connectivity businesses.

Evidently, this will give the company several ways to grow over the next decade.

So what’s stopping me?

The price.

At around US$148 per share, SpaceX has a market cap at roughly US$2 trillion.

That’s a huge valuation, especially for a company that still reported a US$541 million net loss in the second quarter.

It’s spending heavily as well.

Capital expenditure reached US$18.4 billion during the quarter, with US$15.8 billion going towards AI infrastructure.

Of course, SpaceX could eventually grow into that valuation.

Interestingly, Wall Street thinks there’s more upside, with the average analyst price target sitting around US$227.

But at the current price, I think investors are already paying for a lot of future growth.

Where would I buy?

For me, things would get much more interesting below US$90.

That would mean a fall of roughly 39% from yesterday’s closing price and put the shares well below their US$135 IPO price.

Would SpaceX suddenly be cheap at US$90? Probably not.

But I’d be much more comfortable starting a position around that level.

At that price, I’d have a lot more room for things to go wrong.

SpaceX is a company I genuinely want in my portfolio.

I’m just happy to miss some upside if the alternative is paying too much.

The post SpaceX shares are flying. Here’s the price I’d wait for appeared first on The Motley Fool Australia.

More reading

• Forget CBA shares! Buy these ASX dividend shares instead for passive income
• Buy, hold, sell: Domino’s Pizza, Telix Pharmaceuticals, Westfarmers shares
• WiseTech Global vs Xero: Which fallen ASX tech share is the better buy today?
• 2 ASX 200 shares tipped by brokers to return 73% and 83%
• This ASX ETF could help protect your portfolio

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.

WiseTech Global vs Xero shares: Which fallen tech giant bounces back first?

If you’re juggling between WiseTech Global Ltd (ASX: WTC) and Xero Ltd (ASX: XRO) shares, you’re not alone. These two tech heavyweights have led Australia and New Zealand’s software scene, but both have seen major declines from recent market highs. Let’s break down their fundamentals and find out which might be the buy after the fall.

The case for WiseTech Global

WiseTech Global builds logistics software that powers the world’s largest freight companies. Its flagship CargoWise One platform is used by top 25 global freight forwarders—think names like DHL and Toll. Founded in 1994 and based in Sydney, WiseTech has expanded its reach worldwide, helping streamline complex supply chains across every continent.

What stands out for WiseTech is its proven global customer base, consistent profitability, and a small—but steadily rising—fully franked dividend. As of the latest data, WiseTech trades on a price-to-earnings (P/E) ratio of 44.37 with a market cap of $10.91 billion. Its dividend yield is just 0.67%, but those payouts have grown impressively over the years and are 100% franked. Year to date, the share price has dropped a hefty 51.93%. That’s a big pullback for any investor.

The case for Xero

New Zealand’s Xero is a cloud-based accounting software business that’s become a leader for small to medium enterprises. Running a classic SaaS (Software as a Service) model, Xero offers monthly subscriptions at varied price points, making life easier for businesses needing streamlined accounts. Founded in 2006, it’s quickly carved a global name in cloud accounting.

Xero is actually the larger company by market capitalisation ($11.54 billion) but lacks WiseTech’s dividend appeal—payouts are currently zero. The latest P/E ratio stands at 49.87, significantly higher than most traditional businesses, and crucially, Xero posted negative earnings per share (-$0.158), meaning it’s not currently profitable. Franking is not applicable. Still, despite the lack of profits or dividends, Xero’s recurring revenue base is sticky, and its growth aspirations are ambitious. Yet the share price is down 41.19% over the year to date, tracking a major fall from its earlier highs.

Valuation comparison

There’s plenty to weigh up between these two. Here’s a head-to-head of the key numbers:

Metric	WiseTech Global	Xero
Market Cap	$10.91 billion	$11.54 billion
P/E Ratio	44.37	49.87
Earnings per Share	$0.485	-$0.158
Dividend Yield	0.67% (100% franked)	0.00%
Year-to-date Return	-51.93%	-41.19%

Xero commands a slight premium on size and valuation, but WiseTech is more profitable and offers a (modest) dividend. Both have seen huge share price declines, with WiseTech falling further in percentage terms.

Recent share price performance

Neither stock has been immune from the market’s tech re-rate. According to closing prices from 14 September 2026, WiseTech Global finished at $32.44—down from recent highs near $46 in late August, with a year-to-date loss of nearly 52%. Xero, meanwhile, closed at $67.63, having traded above $89 as recently as late August and is now down 41% for the year.

The data shows both stocks have tumbled heavily from recent peaks, but WiseTech’s slump is steeper: from $45.47 on 25 August to $32.44 on 14 September, a loss of about 29% in less than three weeks. Xero’s decline in the same window was from $88.95 to $67.63, about 24%. These are not live prices and only reflect the last reported period.

Which is the better buy?

Both WiseTech and Xero have suffered hard falls from grace, and I reckon this creates opportunity—but also real risk. If I had to pick one, my choice would be WiseTech Global. Here’s why: it’s still generating profits, pays a growing (if small) 100% franked dividend, and offers fundamental exposure to trade and global supply chains that should recover with the economic cycle. Xero’s negative earnings, lack of dividends, and a higher valuation ratio tilt the risk/reward less in its favour for now, despite its sticky SaaS model and global ambitions.

That said, both companies remain high-growth, high-multiple tech stocks that have come back to earth hard. I see WiseTech’s collapse as the harsher overreaction, with the safety net of actual profits and cash returns—even if modest—being enough to give it my nod over Xero right now.

The post WiseTech Global vs Xero: Which fallen ASX tech share is the better buy today? appeared first on The Motley Fool Australia.

More reading

• WiseTech shares have been smashed in 2026. Here’s why I wouldn’t bet against them
• WiseTech shares are down 65%. Have brokers finally spotted a bargain?
• 3 ASX 200 shares I’d buy if I couldn’t sell for 10 years
• Down 63%, I think WiseTech shares could be heading for a huge comeback
• Down 13% in a week: Is the Xero share price finally cheap enough to buy?

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 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. 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.

The S&P/ASX 200 Index (ASX: XJO) has fallen lower in Tuesday afternoon trade off the back of surging oil prices and investor concerns about potential interest rate increases.

At the time of writing, the ASX 200 is down around 1% for the day, and is now roughly 2% lower than 12 months ago.

But brokers have pinpointed some ASX 200 shares which could drag the index higher over the next year. Here are two of them, and they’re forecast to return up to 83% to investors.

NextDC Ltd (ASX: NXT)

NextDC operates data centres in Australia, New Zealand and Southeast Asia. The company builds and operates secure facilities where businesses can house their servers and IT equipment. 

It has physical centres, cooling, power, and security services and project support. And as data usage explodes, demand for secure, high-quality infrastructure is likely to grow alongside it.

The company is heavily investing in expanding its business too, including plans to accelerate the development of new facilities and expand existing sites, including its Sydney projects. 

Just last week the company confirmed it had secured a $1.1 billion funding boost to support its growth plans.

The company will also be added to the S&P/ASX 50 Index as part of a quarterly rebalance, effective from the 21st of September.

Late last month the company also reported a record FY26 result, including a 16% increase in total revenue, a 16% increase in net revenue, and a 15% increase in underlying EBITDA. Net revenue and underlying EBITDA figures came in above guidance.

For FY27, NextDC has guided for net revenue between $615 million and $640 million and underlying EBITDA of $385 million to $410 million, representing expected growth of over 50%.

Brokers are very bullish about the outlook for the ASX 200 shares over the next 12 months. Market Index data shows all brokers have a strong buy rating on the stock and the $20.79 average target price implies a potential upside of 83% at the time of writing.

Mesoblast Ltd (ASX: MSB)

The clinical-stage ASX biotech company has had a slow start to 2026 but leapt higher in mid-July. The shares have slumped again over the past month, seemingly off the back of an increase in investor caution around clinical timelines and profit-taking after the mid-year rally.

Late last month the company reported a sharp increase in revenue to US$120.3 million for FY26 (up from US$17.2 million in FY25) and a 44% reduction in net loss to US$57.5 million.

But there are opportunities for robust growth going forward. Mesoblast develops and commercialises allogeneic cellular medicines to treat complex diseases. Some products are already in use, and other cell therapies are in the late stages of clinical trials. 

Some of its products, particularly Mesoblast’s Ryoncil product, are gaining traction and the business is well-funded. 

Looking ahead, Mesoblast said it plans to expand its Ryoncil label to adults with severe SR-aGvHD and further advance development for chronic low back pain using rexlemestrocel-L. 

The company is also planning to develop next-generation cell therapies through new CAR-MSC and oncolytic virus technologies, broadening its pipeline for inflammatory and immunological diseases.

Brokers are also bullish that business growth and sales can continue growing strongly in FY27. Market Index data shows all brokers agree on a strong buy rating for the ASX 200 shares. The $3.60 target price implies a potential 73% upside, at the time of writing. 

The post 2 ASX 200 shares tipped by brokers to return 73% and 83% appeared first on The Motley Fool Australia.

More reading

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• Experts name 3 top ASX shares to buy this week
• 5 things to watch on the ASX 200 on Monday
• Buy, hold, sell: NextDC, South32, CBA shares
• 2 ASX shares I’d buy before they return to their 52-week highs

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