Author: openjargon

It hasn’t been a great year for investors in CSL Ltd (ASX: CSL) shares.

The biotech giant — long considered a market darling — has seen its shares slide roughly 20% in 2026 so far. A softer-than-expected half-year result rattled confidence, and growing competition hasn’t helped sentiment.

But while CSL works through its challenges, investors might want to look elsewhere in the healthcare space.

One name stands out: Pro Medicus Ltd (ASX: PME). It hasn’t been immune to selling pressure either, with shares down around 46% this year. Yet brokers are tipping explosive upside from here.

Here’s why.

A high-quality healthcare disruptor

Pro Medicus is the third-largest healthcare stock on the ASX, sitting behind ResMed (ASX: RMD) and CSL shares.

The company develops advanced imaging software used by hospitals and radiology providers globally. Its flagship Visage platform is widely regarded as one of the most sophisticated radiology imaging systems on the market.

That reputation is translating into real wins.

Just two weeks ago, Pro Medicus secured two major five-year contracts with a combined minimum value of $40 million. These kinds of long-term deals provide strong revenue visibility and reinforce its position in the US healthcare market.

Strengths that stand out

One of Pro Medicus’ biggest advantages is its business model. This is a highly scalable software company, not a capital-heavy operator. As a result, it delivers extremely strong margins.

It has also locked in long-term contracts with large hospital networks, particularly in the US. That creates sticky, recurring revenue streams — something investors love.

Then there’s the balance sheet. Pro Medicus has historically carried little to no debt while continuing to grow earnings at an impressive rate. That financial strength gives it flexibility and resilience.

Risks to watch

Of course, no growth stock comes without risks.

There’s contract concentration risk. A handful of large deals can drive performance, so any delays or losses could impact growth expectations.

And while expansion in the US has been a major tailwind, it also exposes the company to competitive and regulatory pressures in a complex market.

What next for Pro Medicus and CSL shares?

Despite the risks, brokers are clearly bullish.

Bell Potter has a buy rating and a $240.00 price target on Pro Medicus shares. That suggests around 100% upside over the next 12 months.

Meanwhile, Morgans is even more optimistic. It has a buy rating and a $275.00 price target. Based on the current share price of $121.91, that implies potential upside of more than 125%.

CSL shares still have upside, but it’s more modest. The average 12-month price target sits at $209.50, pointing to roughly 50% gains. Even the more cautious forecasts, around $175, suggest a 26% rise.

Foolish takeaway

CSL remains a global healthcare powerhouse. But right now, its growth story looks a little more uncertain.

Pro Medicus, on the other hand, is a smaller, faster-growing player with strong momentum in a niche market.

If brokers are right, this under-pressure healthcare stock could be gearing up for a powerful rebound — and potentially even a doubling in value (or more).

The post Forget CSL shares, this ASX healthcare stock could double in value appeared first on The Motley Fool Australia.

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• 2 fantastic ASX 200 shares to buy and hold for the next five years
• Why I’d buy these high-quality ASX 200 shares this week
• How to survive an ASX share market crash
• CSL shares look primed to take off — Here’s why

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

Amplia Therapeutics Ltd (ASX: ATX) shares certainly had a day to remember on Monday.

When many ASX shares were tumbling with the market, this small-cap stock doubled in value to 23.5 cents.

The catalyst for this was the release of updated data from the single-arm Phase 1b/2 ACCENT trial evaluating narmafotinib plus chemotherapy in 64 metastatic pancreatic cancer patients.

Is it too late to buy this small-cap ASX stock?

Despite its incredible rise on Monday, Bell Potter believes there is still potential for the pharmaceutical company’s shares to rise materially from current levels.

In response to yesterday’s big announcement from Amplia Therapeutics, the broker said:

The new data was from pre-planned analysis by independent central reviewers, as opposed to analysis by the site investigators which had been reported up until today. The clear highlight was the classification of four new confirmed complete responders. This takes the total to five confirmed complete responders deemed to have disappearance of all measurable lesions for at least two months. The five confirmed complete responders – i.e. 8% of treated patients (n=5/64) – is a remarkable outcome when comparing to the three historical Phase 3 trials with the same chemo backbone where complete responses were seen in only 1 in ~500 subjects (well below 1%).

Additionally, when comparing to other novel drugs in active development, none we are tracking have reported more than 1-2 complete responders. While caveats related to single-arm, mid-size studies remain relevant, the outcomes reported today provide further compelling evidence that narmafotinib’s anti-fibrotic mechanism is allowing chemo to exert greater effect and penetrate tumour tissue more effectively.

Big potential returns remain

According to the note, the broker has retained its speculative buy rating and 42 cents price target on the small-cap ASX stock.

Based on its current share price, this implies potential upside of almost 80% for investors over the next 12 months.

However, given its speculative nature, this would only be suitable for investors with a high tolerance for risk.

Commenting on the small-cap ASX stock, the broker said:

No material changes to our forecasts or valuation following this update. We maintain our BUY (speculative) recommendation. Upcoming catalysts include (1) early updates from the AMPLICITY Phase 1b study in 2H CY26; (2) announcements related to any new clinical studies in combination with kRas inhibitors or in ovarian cancer patients, albeit timing is speculative; and (3) updates on the Phase 2b/3 trial preparations.

The post Why this promising small-cap ASX stock could rise almost 80% appeared first on The Motley Fool Australia.

More reading

• Forget CSL shares, this ASX healthcare stock could double in value
• 3 ASX shares now trading at crazy cheap prices!
• Guess which ASX copper share could surge almost 150%
• A rare buying opportunity in 1 of the ASX’s top shares?
• Can these red hot ASX energy shares keep charging higher?

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.

The ASX share market has seen plenty of volatility this decade, and 2026 is turning into a tough year for investors. Given the size of the declines we’ve seen over the last few weeks (and months), this could be a great time to look at good-value businesses with excellent long-term potential.

A decline in the share price doesn’t automatically mean the business is great value. But, given where the earnings of the following shares are likely to go, I think the three ASX shares below are strong buys.

Siteminder Ltd (ASX: SDR)

Siteminder is a software provider for 53,000 hotels around the world, and it’s growing at a quick pace. During the first half of FY26, it added 2,900 hotel properties to its customer base.

The ASX share has a goal of growing its annual recurring revenue (ARR) by 30% annually, which would be a tremendous rate of improvement. In the FY26 half-year result, ARR increased 29.7% to $280.3 million, while revenue grew 25.5% to $131.1 million.

As a software business, its costs aren’t likely to climb at the same rate as its revenue because it’s so low-cost to sell one more software subscription to a new hotel. That’s partly why we saw adjusted operating profit (EBITDA) more than double to $12.3 million.

The ASX share is rolling out new modules to help its clients generate stronger revenue from its hotels throughout the year, which is also helping increase Siteminder’s average revenue per user (ARPU).

Using the profit forecast on CMC Invest, the Siteminder share price is valued at 24x FY28’s estimated earnings. That looks really good value if Siteminder’s revenue grows faster than 20% per year in the next few years.

Centuria Industrial REIT (ASX: CIP)

This is a real estate investment trust (REIT) that owns a national portfolio of industrial properties across Australia. It’s properties like these that are the backbone of the supply chains, distribution networks, data centres, and food/medicine.

The rental potential of the ASX share’s portfolio is increasing thanks to tailwinds like a growing population, increasing adoption of online shopping, data centre demand, and so on. The REIT says that its portfolio is 20% under-rented, so its rental income has significant growth potential over the next several years as rental contracts are renewed.

Centuria Industrial REIT reported that in the first six months of FY26, its net operating income (NOI) grew by 5.1%, and it is guiding that its funds from operations (FFO) could grow up to 6% in FY26.

Centuria Industrial REIT looks cheap to me because its reported net tangible assets (NTA) was $3.95 at 31 December 2025, so it’s at a discount of around 25%.

Aeris Resources Ltd (ASX: AIS)

This ASX mining share describes itself as a mid-tier base and precious metals producer.

Its key focus is copper, while also having a pipeline of “organic growth projects and an aggressive exploration program and continues to investigate strategic merger and acquisition opportunities”, according to Aeris Resources.

The longer-term rise of the copper price has really helped the ASX share’s profit outlook. In HY26, its revenue rose by 4.6% to $306.3 million, while cost of sales reduced 9% to $212.8 million.

Its operating cash flow jumped 67% to $97.3 million, while net profit after tax (NPAT) grew 62% to $47.9 million.

I think there is plenty of room for growth in the ASX share through both increased production and potentially higher resource prices over time.

Using the forecast on CMC Invest, the Aeris Resources share price is valued at 2x FY26’s estimated earnings.

The post 3 ASX shares now trading at crazy cheap prices! appeared first on The Motley Fool Australia.

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

If you are wanting some exposure to copper for your investment portfolio, then it could be worth checking out the ASX share in this article.

That’s because analysts at Bell Potter believe it could more than double in value over the next 12 months.

Which ASX copper share?

The share that Bell Potter is bullish on is Austral Resources Australia Ltd (ASX: AR1).

It is a Queensland based copper production and development company with assets centred around the Mt Isa and Cloncurry regions.

Bell Potter believes there is a lot to like about this ASX copper share. It said:

AR1’s primary asset is the operating Mt Kelly Heap Leach facility and Solvent-Extraction-Electro-Winning (SX-EW) plant for oxide ore processing, with nameplate capacity of 30ktpa copper. The recently acquired Rocklands Project, with its 3.0Mtpa processing plant, is the subject of a refurbishment and optimisation program, targeting production in CY27.

These assets will underpin two strategic processing hubs, with ore to be sourced from multiple historic producing mines, several expansion / restart projects and numerous exploration targets and mineralised prospects across a tenement package covering ~2,200km2 of Australia’s most active copper exploration and production province.

In addition, the broker highlights that Austral Resources is close to completing a major recapitalisation, which will leave it well-placed for the future. It adds:

AR1 is nearing the completion of a comprehensive recapitalisation process which will leave it with ~$103m cash, no corporate debt and a strategic asset base targeting 50ktpa of copper production.

Big potential returns

According to the note, Bell Potter has initiated coverage on the ASX copper share with a speculative buy rating and 17 cents price target.

Based on its current share price of 6.9 cents, this implies potential upside of almost 150% over the next 12 months.

Commenting on its initiation, the broker said:

AR1 has the objective of leveraging its strategic asset base to target sustainable production of 50ktpa of copper metal over 20 years. It is implementing a unique dual processing strategy over a large-scale regional footprint to unlock the value in its own asset portfolio and otherwise stranded third party projects.

AR1’s refreshed management team and Board has a strong track record of operational management. It presents as one of just a handful of pure copper exposure companies on the ASX and is positioned for a period of aggressive production growth over the next three years. We initiate coverage with a Valuation of $0.17/sh and Speculative Buy recommendation.

The post Guess which ASX copper share could surge almost 150% appeared first on The Motley Fool Australia.

More reading

• This ASX copper producer could more than quadruple in value: broker

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.

I’d call Xero Ltd (ASX: XRO) one of the ASX’s top shares, partly because of its lower valuation and partly because it’s delivering excellent growth in its financials. I’ll look at both factors below.

Xero is one of the world’s largest accounting software providers. It has subscribers in numerous countries including New Zealand, Australia, the UK, the US, Canada, South Africa and Singapore.

The company has suffered from the sell-off related to the fallout of the Middle East conflict. Before that, it declined due to market fears of future AI competition.

As you can see, the market has punished Xero’s share price heavily for potential future negative effects.

I think there are two key reasons why Xero is a leading opportunity and one of the ASX’s top shares.

Much more appealing Xero share price valuation

As shown on the chart below, the Xero share price is down 53% in the past six months and it has fallen 32% in 2026 to date.

Not many S&P/ASX 300 Index (ASX: XKO) shares have fallen that much, and Xero is definitely one of the highest-quality. I’ll explain why in a moment.

But first, it’s important to see just how much Xero cheaper is now trading.

Broker UBS thinks Xero could generate net profit of NZ$225 million in FY26 and NZ$411 million by FY28. At the current valuation and exchange rates, that means the Xero share price is valued at 70x FY26’s estimated earnings and 38x FY28’s estimated earnings.

Why it’s one of the ASX’s top shares

There are very few businesses on the ASX that have grown strongly over the past 20 years, with potential to continue growing, in my view.

The company has won millions of subscribers worldwide, attracted by the efficiencies and value Xero’s offering.

There are certain statistics that show the business is appreciated by subscribers.

In the FY26 half-year result, its subscribers increased 10% year-over-year to 4.6 million. Its subscriber retention rate is around 99% each year, which is extremely high for a software as a service (SaaS) business. This shows that almost all new subscribers are additions to revenue, rather than some being needed to replace lost subscribers each year.

Additionally, as the length of time that each subscriber has been subscribed increases, that improves the long-term value of each subscriber.

In the HY26 result, Xero reported its total lifetime value (LTV) of subscribers increased 15% year over year to NZ$19.6 billion.

That high level of subscriber loyalty and appreciation has enabled Xero to regularly increase prices while still maintaining the retention rate. In HY26, the average revenue per user (ARPU) grew by 15% to NZ$49.63.

Most importantly, the company’s profitability continues to rise. In HY26, net profit grew by 42% to NZ$134.8 million and free cash flow surged 54% to NZ$321 million. This shows that the business’ actions are clearly playing out positively for profit.

I also think its global subscriber base can continue to grow, as business owners look to run their businesses better and unlock more time for themselves. I think Xero’s economic moat is stronger than the market is giving it credit for.

It’s still one of the top ASX shares in my eyes despite the worries, and the lower valuation more than makes up for the uncertainties.

The post A rare buying opportunity in 1 of the ASX’s top shares? appeared first on The Motley Fool Australia.

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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 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.

While much of the broader market has suffered from recent global conflict in the Middle East, ASX energy shares have charged higher.

The S&P/ASX 200 Energy Index (ASX: XEJ) rose 1.2% yesterday while many other sectors fell. 

This index is now up 33% year to date, while the S&P/ASX 200 Index (ASX: XJO) is down just over 4%. 

Some ASX energy shares that have enjoyed strong returns lately include: 

• Yancoal Australia Ltd (ASX: YAL) is up 72% year to date
• Karoon Energy Ltd (ASX: KAR) is up 32%
• Ampol Ltd (ASX: ALD) has risen 15% in March 
• NexGen Energy Ltd (ASX: NXG) is up nearly 9% year to date. 

Why are energy shares rising?

ASX energy shares are rising mainly because oil and gas prices have surged, driven by geopolitical tensions (especially in the Middle East) and supply disruptions, which tighten global energy supply.

Higher energy prices also increase inflation expectations, making energy stocks more attractive compared to other sectors like tech.

At the same time, investors are rotating into commodities and defensive sectors, pushing more money into energy shares.

Investors may be concerned about whether this rally can continue. Here are some recent outlooks for these high performing ASX energy shares. 

Yancoal Australia Ltd (ASX: YAL)

Yancoal Australia is sitting at a 52-week high at the time of writing, after it climbed nearly 4% yesterday. 

Yancoal has a diversified mix of metallurgical and thermal coal mines, with primary geographical markets Japan, Singapore, China, South Korea, Taiwan, and Thailand. 

It closed yesterday trading at $8.63. 

After hitting record highs, analysts now view the stock as overvalued. 

According to five analysts offering forecasts via TradingView, Yancoal has an average one year price target of $7.66. 

This target is 11% lower than yesterday’s closing price. 

Ampol Ltd (ASX: ALD)

Ampol shares rose another 1% during yesterday’s trade. 

It is the largest, and only Australian-listed, petroleum refiner and distributor. 

After rising 15% in March, analysts now see the stock as fully valued. 

10 analysts have an average one year price target of $33.68 according to TradingView, right around yesterday’s closing price of $33.44. 

Karoon Energy Ltd (ASX: KAR)

Karoon Energy is another energy stock hovering close to its 52-week high. 

It rose a healthy 4.5% yesterday to close trading at $2.06. 

The company is an oil and gas explorer and producer with assets in Brazil.

It is also now fully valued based on targets from analysts. 

9 analyst ratings via TradingView have a one year forecast of $2.04, suggesting there is little future upside. 

NexGen Energy Ltd (ASX: NXG)

NexGen Energy an exploration and development stage entity engaged in the acquisition, exploration, evaluation, and development of uranium properties in Canada.

This ASX energy stock has almost doubled in the last year. 

However unlike the previous three stocks, it appears experts believe this company can continue to rise in 2026. 

UBS recently put a 12 month share price target of $21. 

From yesterday’s closing price of $15.51, that’s suggests almost 35% upside. 

19 analysts’ forecasts via TradingView paint a similar picture, with an average price target of $21.18. 

The post Can these red hot ASX energy shares keep charging higher? appeared first on The Motley Fool Australia.

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

There are a few ASX dividend stocks that I think could be excellent to buy in virtually any situation. One of those appealing options, in my view, is APA Group (ASX: APA).

I’ve written for years about how important I view the business for Australia, and recent events make the business even more essential.

APA has a wide range of assets, including electricity transmission, wind farms, solar farms, gas storage, gas processing, and gas-powered energy generation. Its key asset is its network of gas pipelines which transports half of the country’s usage, taking gas from sources of supply to where it’s needed.

Aside from my general point that the business provides important energy, I think there are a couple of great reasons to like this ASX dividend stock.

Excellent passive income stability

APA has one of the most pleasing records when it comes to stable and growing payouts. APA has increased its annual payout every year for the past 20 years, which has been good for investors who want reliable income.

The business is planning to increase its annual payout by 1 cent per security in FY26 to 58 cents. At the time of writing, that translates into a forward distribution yield of 6.1%, excluding any potential franking credits.

In my view, any ASX dividend stock with a starting yield of more than 6%, and a high likelihood of ongoing payout growth, seems very attractive to me.

The ASX dividend stock has growth potential

APA has steadily grown its portfolio of assets over the years, including renewable energy, electricity transmission and more pipelines.

It has organic revenue growth built in, with a large majority of its revenue linked to inflation. This could mean revenue growth accelerates in FY27, depending on how the events in the Middle East play out.

In February, the business announced that it planned to progress stage 3 of its east coast gas grid expansion plan, which is expected to add approximately 30% of additional capacity and address projected southern market gas shortfalls from 2028.

APA will invest close to $500 million for this capacity expansion.

The ASX dividend stock’s calculations suggest that domestic gas delivered from northern supply markets can be delivered into southern markets at a cost, including transport, materially below the cost of imported LNG.

            APA CEO and Managing Director Adam Watson said:

The notion that Australia, as one of the three largest LNG exporters in the world, would need to resort to importing LNG when lower cost, lower emissions domestic gas is readily available, simply doesn’t make sense and would represent a massive failure of government policy. The current Federal Government Gas Market Review provides the opportunity to avoid that failure for the long-term.

Incremental investment in existing pipeline infrastructure is a logical, proven and timely solution to meet domestic gas needs. AEMO’s 2025 Gas Statement of Opportunities clearly states that expansion of existing pipelines, along with unlocking northern supply, would meet forecast gas needs well out into the 2030s without an LNG import terminal.

When you look at the data, when compared to LNG imports, it’s clear APA’s expansion projects are the most reliable, cost-efficient and lower emissions solution to get Australian gas to where it’s needed.

I think this ASX dividend stock will be an important part of the Australian economy for decades to come, making it a compelling long-term buy.

The post I’d buy this ASX dividend stock in any market appeared first on The Motley Fool Australia.

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

For investors looking to generate reliable income, ASX dividend shares remain an important part of the market.

While interest rates are rising, a number of shares continue to offer attractive dividend yields supported by stable cash flows and long-term contracts.

Here are three ASX dividend shares that could be worth considering.

APA Group (ASX: APA)

The first ASX dividend share that could appeal to income investors is APA Group.

It owns and operates a vast portfolio of energy infrastructure assets, including gas pipelines, storage facilities, and electricity transmission networks. These assets play a critical role in Australia’s energy system.

A key strength of APA is its contracted revenue model. Much of its income is generated through long-term agreements with customers, which provides strong visibility over future cash flows.

This stability supports consistent dividend payments and has helped the company build a reputation as a reliable income stock.

With a yield above the market average and exposure to essential infrastructure, APA Group could be a solid option for income-focused investors.

Lottery Corporation Ltd (ASX: TLC)

Another ASX dividend share to consider is The Lottery Corporation.

It operates some of Australia’s most recognisable lottery brands and generates revenue through ticket sales across its network.

What makes this business attractive is the defensive nature of its earnings. Lottery sales tend to be relatively stable across economic cycles, supported by consistent customer demand and strong brand recognition.

The company also benefits from high margins and a capital-light model, which allows it to generate strong cash flow.

This supports its ability to pay dividends, making it an appealing option for investors seeking income from a business with resilient earnings.

Transurban Group (ASX: TCL)

A final ASX dividend share that could be worth a look is Transurban Group.

It owns and operates toll roads across Australia and North America, generating revenue from millions of daily trips.

Its assets are underpinned by long-term agreements, often lasting decades, which provide strong visibility over future income.

In addition, toll prices typically increase annually, often linked to inflation. This can support steady revenue growth and underpin growing dividend payments over time.

With a dividend yield comfortably above the current cash rate and a portfolio of high-quality infrastructure assets, Transurban could be a top option for income investors.

The post 3 of the best ASX dividend shares for income investors to buy appeared first on The Motley Fool Australia.

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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 and Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group and Transurban 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.

Ongoing conflict has rattled global markets. The S&P/ASX 200 Index (ASX: XJO) is now down 9% since the beginning of March. 

With such volatility, investors may be reviewing their strategies to understand what can help provide relief in the current environment. 

A new report from VanEck has shed light on the interesting pendulum of growth and value investing. 

Over the long term, the relative returns of value and growth companies are negatively correlated. In other words, in the past, when value has outperformed, it probably has coincided with a period in which growth underperformed and vice versa.

According to MSCI, individual factors have been shown to outperform during different macroeconomic environments. Value is “pro-cyclical”, meaning that this type of strategy historically outperforms during rising market conditions.

What’s the difference between growth and value investing?

There are many different strategies investors use to grow their wealth. 

Two common strategies investors use are growth and value investing. 

Growth investors focus on companies expected to deliver above-average earnings or revenue expansion, often prioritising future potential over current valuation metrics. 

It is commonly associated with sectors where companies can scale quickly, innovate, and expand revenues at above-average rates. 

The Technology sector is the classic example, like companies focussed on software, semiconductors, or artificial intelligence. 

These businesses can grow rapidly with relatively low marginal costs. 

The healthcare sector – especially biotech and pharmaceuticals – is also prominent, as breakthroughs can lead to explosive earnings growth.

In contrast, value investors seek stocks that appear undervalued relative to their intrinsic worth, often identified through low valuation multiples or temporarily depressed prices, with the belief that the market will eventually correct its mispricing. 

While growth investing emphasises momentum, innovation, and scalability, value investing relies on patience, margin of safety, and mean reversion. 

How to target these strategies with ASX ETFs

There are several ASX ETFs to consider for those targeting growth or value shares. 

For growth, ETFs to consider include: 

• Vanguard Diversified High Growth Index ETF (ASX: VDHG)
• ETFs Fang+ ETF (ASX: FANG)
• Munro Asset Management – Munro Global Growth Fund (ASX: MAET). 

For value investing: 

• Vanguard Global Value Equity Active ETF (Managed Fund) (ASX: VVLU)
• VanEck Msci International Value ETF (ASX: VLUE). 

In terms of performance, these growth funds are down between 5% and 15% year to date. 

While the value funds have perhaps weathered the storm slightly better, falling between 2% and 5%. 

It’s important to remember this small snapshot is not representative of long term opportunity. 

However, according to VanEck, current conditions may favour a value focus. 

In the past twelve months, however, changes in macroeconomic indicators potentially bode well for a value rotation, and inflation, being driven by supply shocks from the crisis in the Gulf, could propel value’s recent relative outperformance further.

Inflationary expectations have risen sharply since the US-Iran conflict commenced. A higher inflation environment supports value company valuations, and we think the current upward pressure on long-dated bond yields is likely to remain if the market remains uncertain about growth and inflation. Value typically outperforms in such an environment.

The post Should investors be targeting growth or value ASX ETFs right now? appeared first on The Motley Fool Australia.

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

It’s never easy watching a high-quality ASX growth stock fall heavily.

WiseTech Global Ltd (ASX: WTC) shares hit a multi-year low of $40.31 on Monday, taking their decline over the past year to just over 50%.

The key question is whether the business has deteriorated to match it.

From what I can see, the answer is no.

This ASX growth stock is still moving forward

When I look past the share price underperformance, I still see a company with strong momentum.

WiseTech continues to grow, expand its platform, and deepen its position in global logistics software. Its CargoWise platform is used by major freight forwarders and logistics providers around the world, and once embedded, it becomes very difficult to replace.

The company is also scaling rapidly.

Its latest half-year update showed total revenue up 76% and EBITDA up 31%, supported by both organic growth and the integration of e2open.

This isn’t a business that has stalled. It’s still expanding.

AI is a risk, but also a major opportunity

A big part of the recent selloff appears to be tied to concerns around artificial intelligence (AI).

The fear is that AI could disrupt software companies by reducing the need for traditional platforms.

But in WiseTech’s case, I actually think AI strengthens the investment case.

Management has been very clear that AI is being embedded into the platform to increase automation, improve customer outcomes, and drive efficiency.

In fact, the company has stated that AI is creating “a step change in customer value proposition” and enabling significantly more automation across its software.

Rather than replacing WiseTech, AI could make its platform more valuable and more deeply integrated into customer workflows.

The moat is bigger than just software

Another point that I think is often overlooked is what actually makes WiseTech hard to compete with.

It’s not just the software itself.

The company has built a global network across the logistics ecosystem, connecting thousands of participants and embedding itself into real-time workflows.

That network effect is difficult to replicate.

According to its recent update, WiseTech now connects over 500,000 enterprises across manufacturing, logistics, and distribution, reinforcing its position as a central platform in global trade.

That kind of scale creates a moat that goes well beyond code.

A signal from management

One detail that caught my attention recently was insider buying.

WiseTech’s CEO, Zubin Appoo, purchased around $1 million worth of shares on market following the latest results.

That doesn’t guarantee anything, but it does suggest confidence from someone with the best visibility into the business.

In my experience, that’s usually worth noting.

Why I think this could be an opportunity

A 50% share price decline often reflects a combination of concerns.

In this case, it looks like a mix of tech sector weakness, AI disruption fears, and uncertainty around integration and execution.

But when I step back, I still see a business with strong annual recurring revenue, a deeply embedded global platform, expanding scale and capability, and a clear strategy around AI.

The share price has fallen sharply, but the long-term story appears largely intact.

That’s usually where I start to get interested.

Foolish takeaway

This ASX growth stock has been hit hard by market sentiment, pushing it down more than 50% and to multi-year lows.

But the business itself continues to grow, evolve, and strengthen its position in global logistics.

AI may be creating uncertainty in the short term, but I think it has the potential to enhance, not disrupt, WiseTech’s platform over time.

For patient investors, this looks like the kind of setup that could be worth buying and holding for the long term.

The post One ASX growth stock down over 50% to buy and hold 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 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.