Author: openjargon

CSL Ltd (ASX: CSL) shares slipped 2% to $171.21 on Wednesday, but that hardly dents their remarkable recovery. The ASX biotech stock has surged 30% over the past month and is now up about 90% from its 11-year low of $90 in June.

By comparison, the S&P/ASX 200 Index (ASX: XJO) has lost 4% in the past month.

After such a dramatic rebound, investors are asking a simple question: how much further can CSL shares go?

Why have CSL shares soared?

The catalyst was CSL’s FY26 result. On the surface, it looked ugly, with the $80 billion biotech reporting a US$2.6 billion net loss after tax.

Investors, however, quickly looked beyond the headline figure. The loss included US$7.1 billion of pre-tax impairments and US$799 million in restructuring costs, much of which was non-cash. Most impairments related to CSL Vifor intangibles and under-utilised property, plant and equipment.

Investors had already received a warning in May, when CSL flagged around US$5 billion of impairments and cut its FY26 guidance.

Excluding exceptional items, underlying NPATA fell just 2% to US$3.1 billion. Revenue declined 1% to US$15.8 billion, but still beat analyst expectations.

The result effectively gave investors what they wanted: a reset year, a cleaner balance sheet and an outlook that wasn’t as bad as feared.

Could FY27 send CSL shares higher?

The bull case now centres on FY27.

CSL expects underlying NPAT to grow approximately 5%, ahead of consensus expectations of around 2% growth. Behring is expected to deliver mid-single-digit growth, with immunoglobulins forecast to increase at a mid-to-high single-digit rate.

The biggest challenge remains Vifor, where revenue is expected to plunge about 25% as iron generics enter the market.

Consensus estimates suggest CSL could generate earnings per share of roughly $9.00 in FY27, rising to $9.50 in FY28 and $10.10 in FY29.

At $171.21, CSL shares are valued at around 19 times forecast FY27 earnings. That’s not cheap, but it arguably looks reasonable for a global healthcare leader returning to earnings growth.

By FY29, the valuation falls to roughly 17 times forecast earnings if those estimates are achieved.

What do brokers think?

Brokers aren’t uniformly convinced the recovery has further to run. Of 19 analysts tracked by TradingView, 10 rate CSL shares a hold, while nine have a buy or strong-buy rating.

The average 12-month price target is $173.04, barely above the current share price.

There’s a huge spread between individual forecasts. The most bullish target is $206.76, implying another 21% upside. The lowest sits at $131.49, suggesting roughly 23% downside.

Macquarie is among the most cautious, with a neutral rating and target of just over $133. UBS is more optimistic at $181, while Morgan Stanley has a $172 target.

Foolish takeaway

CSL has staged an extraordinary recovery, but the easy gains may already have been made.

The business is emerging from a difficult period with a cleaner balance sheet and expectations for improving earnings. However, the broker targets suggest the market remains divided over how quickly that recovery will translate into shareholder returns.

At around 19 times FY27 earnings, CSL shares aren’t screamingly cheap. Investors buying today are effectively betting that the company’s earnings recovery will beat expectations.

If it does, there’s potentially more upside. If growth disappoints, the recent 90% rebound leaves plenty of room for the shares to fall.

The post CSL shares are up 90%. How much higher can they go? appeared first on The Motley Fool Australia.

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• 2 ASX shares with dividend yields above 8%

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. 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.

Superannuation has become a highly effective tool for investors to generate returns at a lower tax rate. It can be a very effective way for investors wanting passive income.

Pleasingly, superannuation has a lower tax rate than many companies, trusts and individuals. The way superannuation works also means it’s very easy to invest for the long term.

In my view, receiving passive income is one of the top benefits of owning shares. It’s really rewarding to receive passive income from owning ASX shares.

Getting paid money each year for no ongoing effort seems like a compelling arrangement to me.

One of the best benefits about superannuation is that Australians lose less of their passive income return to tax. I think it’s important to remember that it’s the after-tax passive income that investors can use.

If an Australian working full-time receives passive income in their name, they could lose a third (or more) of that dividend income to income tax, which makes the passive income return less appealing.

Following proposed taxation changes earlier this year, superannuation could be the best place to invest for passive income because of the lower tax rate in the accumulation phase of wealth building, compared to an individual owning income-paying assets as a full-time earner.

In retirement, an Australian’s superannuation tax rate could be as low as 0%. We can’t get a lower tax rate than that!

Of course, every household’s taxation situation may be different, so I’ll just look at targeting a particular dividend goal and ignore tax rates for the rest of the article.

How much is needed in superannuation for $70,000 of annual passive income?

Receiving $70,000 of annual passive income sounds great to me. I’d like to get there one day, though I’m a long way off the goal.

Australian superannuation investors should think about what sort of investments they want to own and the scale of the dividend yield of that asset.

In my opinion, ASX shares are the best choice for passive income, partly because of the great franking credits that are attached to dividends.

Based on all of the above, we can see that the required superannuation balance to earn $70,000 each year depends on the dividend yield of the portfolio.

For example, if a portfolio has a 5% dividend yield, it’d require $1.4 million, a 4% dividend yield would require $1.75 million and a 7% dividend yield would require a $1 million portfolio.

It depends on which ASX shares investors choose.

The types of ASX dividend shares I’d buy

There are lots of appealing ideas on the ASX that can deliver good dividend yields.

For example, we can choose wonderful operating companies, fantastic listed investment companies (LICs) and impressive yet discounted real estate investment trusts (REITs).

Some of the names I’d consider with low-to-medium dividend yields but with good growth and/or payout stability include L1 Long Short Fund Ltd (ASX: LSF), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES), Lovisa Holdings Ltd (ASX: LOV) and APA Group (ASX: APA).

Some of the businesses with larger dividend yields include Future Generation Australia Ltd (ASX: FGX), Hearts and Minds Investments Ltd (ASX: HM1), Dexus Industria REIT (ASX: DXI), Telstra Group Ltd (ASX: TLS), Charter Hall Long WALE REIT (ASX: CLW), Rural Funds Group (ASX: RFF), Centuria Industrial REIT (ASX: CIP), MFF Capital Investments Ltd (ASX: MFF) and WCM Global Growth Ltd (ASX: WQG).

The post How much is needed in superannuation to target a $70,000 annual passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Hearts And Minds Investments, L1 Long Short Fund, Mff Capital Investments, Rural Funds Group, Washington H. Soul Pattinson and Company Limited, and Wcm Global Growth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Mff Capital Investments, Rural Funds Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Lovisa and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The NEXTDC Ltd (ASX: NXT) share price is in focus today after the company announced a major A$1.1 billion subordinated convertible notes offering, designed to further strengthen its liquidity and fund its Australian data centre development pipeline.

What did NEXTDC report?

• Launched A$1.1bn fixed coupon subordinated convertible notes due 2031
• Notes carry an indicative cash coupon of 1.25%–1.75% per annum, below current senior debt levels
• Initial conversion price to be set 32.5%–37.5% above reference share price, with additional capped call option up to 70% premium
• Pro forma liquidity at 30 June 2026 would have been approximately A$9.8bn post-offer
• Proceeds intended for development pipeline, capped call options, and general corporate purposes

What else do investors need to know?

NEXTDC’s new convertible notes offer more flexibility and carry a lower cash interest rate than the company’s existing senior debt. This lets NEXTDC fund major infrastructure projects while preserving balance sheet strength and headroom for further growth.

The notes are expected to be listed on the Vienna Multilateral Trading Facility and target institutional investors, rather than retail or ASX listing. A “Delta Placement” of up to A$330 million in existing shares will support initial hedging by note investors and sets the reference price for conversion.

NEXTDC’s pro forma liquidity position rises to nearly A$9.8 billion, helping its ambitions to continue expanding its pipeline of data centres across Australia and maintaining operational resilience.

What did NEXTDC management say?

Craig Scroggie, CEO and Managing Director, said:

We are proactively enhancing balance sheet flexibility with efficient capital and continuing to deliver on our capital strategy. The convertible structure funds the next phase of our development pipeline at a lower cash coupon than senior debt and the capped call transactions effectively raise the conversion price and therefore reduce the economic cost of dilution that would otherwise occur. The Offering preserves our senior debt capacity and our balance sheet flexibility to meet the continued growth in customer demand for the capacity NEXTDC is building.

What’s next for NEXTDC?

NEXTDC intends to use the new capital to deliver on its Australian development pipeline, cover transaction costs, and maintain corporate flexibility. The company says the convertible note structure and capped call options will help manage dilution risks while keeping funding costs down.

By continuing to diversify its funding sources and enhance its liquidity, NEXTDC aims to support strong customer-led growth and maintain a robust balance sheet—positioning the business well for further expansion both in Australia and internationally.

NEXTDC Limited share price snapshot

Over the past 12 months, NEXTDC shares have declined 23%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 1% over the same period.

View Original Announcement

The post NEXTDC launches $1.1bn convertible notes to fund data centre growth appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.

It was another red day for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this hump day. After yesterday’s decisive plunge, investors came back this morning with a spring in their steps, allowing the market to open in positive territory. But that didn’t last long, with investors quickly getting cold feet and pulling the ASX 200 into the red soon after.

By the time trading closed, the index had dropped 0.11% to close at 8,911.4 points.

This miserly session for the local markets came after a horrid return to trading for the US markets following the American long weekend.

The Dow Jones Industrial Average Index (DJX: .DJI) clearly didn’t get a proper holiday, dropping 1.18% last night.

Meanwhile, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) did better, but still lost 0.32%.

But let’s get back to ASX shares now and examine how today’s tough trading conditions affected the various ASX sectors.

Winners and losers

Most of the ASX’s sectors were dragged lower this Wednesday. But there were a few exceptions.

First though, it was, somewhat ironically, healthcare shares that had the unhealthiest day. The S&P/ASX 200 Healthcare Index (ASX: XHJ) had tanked 1.5% by the close of trading.

Consumer discretionary stocks also had a shocker, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) plunging 1.14%.

Gold shares were no safe haven either. The All Ordinaries Gold Index (ASX: XGD) cratered 1.06% today.

Communications stocks suffered a steep drop too, as you can see from the S&P/ASX 200 Communication Services Index (ASX: XTJ)’s 1.04% dive.

Financial shares were right in front of communications. The S&P/ASX 200 Financials Index (ASX: XFJ) sank 1.02%.

Next came consumer staples stocks, with the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) retreating 0.9%.

Tech shares had a day to forget as well. The S&P/ASX 200 Information Technology Index (ASX: XIJ) saw its value cut by 0.71%.

Real estate investment trusts (REITs) weren’t granted an exception either, evidenced by the S&P/ASX 200 A-REIT Index (ASX: XPJ)’s 0.57% dip.

But that’s it for the red sectors, so let’s get to the winners.

Leading said winners were energy stocks. The S&P/ASX 200 Energy Index (ASX: XEJ) roared higher today, surging 1.73%.

Mining shares also ran hot, with the S&P/ASX 200 Materials Index (ASX: XMJ) soaring 1.51%.

Utilities stocks were in demand as well. The S&P/ASX 200 Utilities Index (ASX: XUJ) lifted 1.01% today.

Finally, industrial shares got out unscathed, illustrated by the S&P/ASX 200 Industrials Index (ASX: XNJ)’s 0.06% bounce.

Top 10 ASX 200 shares countdown

Gold stock Minerals 260 Ltd (ASX: MI6) was our chart-topper this hump day. Minerals 260 shares exploded 10.37% higher this session to finish at 90.5 cents apiece.

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

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

ASX-listed company	Share price	Price change
Minerals 260 Ltd (ASX: MI6)	$0.905	10.37%
Austal Ltd (ASX: ASB)	$4.66	7.13%
Capstone Copper Corp (ASX: CSC)	$16.00	5.47%
FireFly Metals Ltd (ASX: FFM)	$1.90	4.12%
PDI Gold Ltd (ASX: PDI)	$4.88	4.05%
SRG Global Ltd (ASX: SRG)	$3.95	3.40%
4DMedical Ltd (ASX: 4DX)	$3.46	3.28%
BHP Group Ltd (ASX: BHP)	$64.58	3.25%
Elevra Lithium Ltd (ASX: ELV)	$8.00	3.23%
Dyno Nobel Ltd (ASX: DNL)	$4.01	3.08%

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.

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

A big dividend yield can be hard to ignore.

When an ASX share is offering 7%, 8%, or even more, the potential income can look much more attractive than a company yielding 3% or 4%.

But if I were building a passive income portfolio for the long term, the starting yield would only be part of the decision.

I want the income to grow

A lower yield can become much more valuable if the dividend keeps increasing.

Imagine buying a company yielding 4% today. If its earnings continue growing and management steadily lifts the dividend, the cash received from that original investment could be considerably higher several years from now.

That is particularly important for investors who do not need the income immediately.

Inflation means a fixed dividend becomes less valuable over time. An income stream that can rise with earnings has a much better chance of maintaining its purchasing power.

Woolworths Group Ltd (ASX: WOW) is the type of business I would consider from that perspective.

Supermarket spending is relatively resilient, and Woolworths has opportunities to grow earnings through population growth, online retail, and continued improvements across its operations.

Its yield may not grab as much attention as some higher-yielding ASX shares, but I would be interested in what the dividend could look like years from now.

A huge yield can sometimes be a warning

Dividend yields rise when share prices fall.

That means an unusually high yield can sometimes appear because investors believe the company’s earnings or dividend are under pressure.

If a share offers a 9% yield and subsequently cuts its dividend in half, the original headline number becomes fairly meaningless.

This is why I would spend more time understanding the business than comparing dividend percentages.

Can earnings comfortably support the payment? Does the company need substantial capital to keep operating? Is debt manageable? Does management have room to increase the dividend if profits grow?

Those questions tell me much more about the quality of the income.

Infrastructure can provide another route

Transurban Group (ASX: TCL) is another business I think can make sense for long-term income investors.

Its toll-road network benefits as traffic grows over time, while toll increases can provide another source of revenue growth.

That creates the potential for distributions to increase as the underlying business expands.

Infrastructure also brings something different to a portfolio dominated by banks and traditional dividend shares.

I would still pay close attention to debt and valuation, particularly because infrastructure businesses can be sensitive to interest rates.

But the ability to generate growing cash flows over a long period is what would interest me most.

Income and growth can work together

I do not think passive income investing needs to mean sacrificing capital growth.

A strong business that reinvests part of its profits effectively can grow earnings, increase its dividend, and become more valuable at the same time.

That combination is what I would ideally want.

It may produce less cash in the first year than simply buying the highest-yielding shares available, but I think the long-term result can be far more attractive.

Foolish takeaway

If I were building an ASX passive income portfolio, I would not rank shares by dividend yield and start buying from the top.

I would look for businesses that can support their payments and have a reasonable chance of increasing them over time.

For me, a 4% yield that keeps growing could prove far more valuable than an 8% yield that eventually disappears.

The post Why I’d rather buy growing dividends than chase the highest ASX yields appeared first on The Motley Fool Australia.

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

It has been a horrible year for WiseTech Global Ltd (ASX: WTC) shareholders.

The logistics software stock is down another 1.39% to $34.76 on Wednesday, taking its 12-month decline to around 63%.

WiseTech shares are also down almost 50% in 2026 and miles below their 52-week high of $99.53.

But at $34.76, I think the sell-off has gone way too far.

Yes, WiseTech still has plenty to prove, but the business is growing, generating cash, and remains a global logistics leader.

If management delivers on its FY27 targets, I think WiseTech shares could have plenty of room to recover from here.

Here’s why.

The business is still growing

You wouldn’t know it from the share price, but WiseTech is still putting up some very strong numbers.

FY26 revenue jumped 79% to US$1.4 billion following the e2open acquisition, while underlying net profit increased 29% to US$313.5 million.

What really catches my attention is the cash flow.

Underlying free cash flow climbed 67% to US$489.6 million, giving WiseTech plenty of firepower to invest in growth, reduce debt, and keep improving the business.

The e2open deal is also starting to show some early benefits.

Management delivered around US$115 million of annualised cost savings during FY26, including US$64 million from e2open.

To me, that’s a pretty encouraging start.

If WiseTech can keep pulling costs out while growing the combined business, I think earnings and cash flow could move much higher over the next few years.

Margins could be heading higher

WiseTech is expecting FY27 revenue of US$1.48 billion to US$1.54 billion, which would represent growth of 6% to 10%.

But I think the earnings outlook is where things get much more interesting.

Underlying EBITDA is forecast to rise between 12% and 21% to US$725 million to US$780 million, with margins expected to improve to between 49% and 51%.

There’s also plenty happening underneath those numbers.

WiseTech currently has 12 large global freight forwarder rollouts underway, while more than 95% of customers have moved onto CargoWise Value Packs.

SME signings have also increased around 55% since the new pricing model was introduced.

That gives me plenty of confidence heading into FY27.

Brokers see huge upside

I am not the only one who is bullish on WiseTech at these levels.

According to TipRanks, there are 9 buy ratings and just 1 hold among 10 ranked analysts, with an average price target of $58.12.

That’s around 67% above the current share price.

Morgans has a $62.50 target, Bell Potter is at $65, while Morgan Stanley is even more bullish with a $70 target.

If Morgan Stanley is right, WiseTech shares could more than double from here.

At $34.76, I think the market has already priced in plenty of bad news, while the upside could be significant if earnings keep growing.

The post Down 63%, I think WiseTech shares could be heading for a huge comeback appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.

ASX shares have slumped this week as investors digest renewed conflict in the Middle East, oil prices and supply concerns, climbing inflation, and the potential for further interest rate hikes.

But here are five S&P/ASX 200 Index (ASX: XJO) shares that could turn the index around over the next 12 months. And they’re all rated a strong buy by brokers, with upsides of up to 62%.

Let’s take a look.

Life360 Inc (ASX: 360)

Life360 posted a strong second-quarter FY26 update in mid-August, including a 38% increase in revenue, and a 53% increase in adjusted EBITDA. And the company expects FY26 revenue growth to accelerate 33% to 40% year on year. But investors weren’t impressed, likely because they were expecting another upward revision to FY26 revenue guidance. But it looks like brokers now view the shares as below fair value. Market Index shows all brokers have a strong buy rating on the ASX shares and the $31.72 target price implies a potential 60% upside, at the time of writing.

Mesoblast Ltd (ASX: MSB)

The clinical-stage ASX biotech company has gained some attention since it posted its FY26 results last month. The company, which develops and commercialises allogeneic cellular medicines to treat complex diseases, posted a sharp increase in revenue to US$120.3 million for FY26, and a 44% reduction in net loss. And there’s plenty of potential for more growth ahead. Its products, particularly Ryoncil, are gaining traction and the business is well-funded. Brokers are also bullish that sales can continue growing strongly in FY27. Market Index data shows all brokers have a strong buy rating for the ASX shares. The $3.60 target price implies a potential 62% upside, at the time of writing. 

Megaport Ltd (ASX: MP1)

The ASX tech shares flew higher in late-May but slumped around 20% in August after the company posted its FY26 results. Megaport reported a 37% increase in full-year revenue, and EBITDA was up 24%. But, on the bottom line, its statutory net loss climbed to $39 million, up from $300,000 in FY25. Investors weren’t impressed and many quickly sold up their shares, sending the share price tumbling. But the company is continuing to grow and it has confirmed several new contracts since late-April. Brokers are bullish that we’ll see a share price correction ahead. Market Index data show that all brokers have a strong buy rating for Megaport shares. The $24.80 average target price implies a potential 39% upside, at the time of writing.

Nick Scali Ltd (ASX: NCK)

Shares of household furniture importer and retailer Nick Scali have plunged in 2026 as high interest rates and cost-of-living pressures continue to delay shoppers from buying big-ticket discretionary items like furniture. But the company’s latest FY26 results announcement shows the business is still operating well with a strong gross margin improvement. Last month, Nick Scali announced a 4% increase in revenue and a 22% increase in NPAT. Many experts still view Nick Scali as a high quality retailer with growth potential ahead. Market Index data shows the majority have a strong buy rating on the ASX shares. The $18.50 average target price implies around a 28% upside ahead, at the time of writing.

Judo Capital Holdings Ltd (ASX: JDO)

Judo was one of the strongest-performing bank shares on the ASX earlier this year. But the stock crashed 43% in late-June after it downgraded its profit guidance for FY26, and it has struggled to recover. Even a stronger-than-expected FY26 result wasn’t enough to reignite investor confidence. Judo’s NPAT increased 29% and profit before tax increased 34%, the top end of Judo’s revised guidance range. It’s clear that the sell-off was way overdone and that the bank’s latest results show it is growing stronger than many anticipated. Market Index data shows the majority of brokers have a strong buy rating on the shares. The $1.51 average target price implies a potential upside of around 50%, at the time of writing.

The post Brokers rate these 5 ASX shares as a strong buy, and tip upsides of 28% to 62% appeared first on The Motley Fool Australia.

More reading

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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 Life360 and Megaport. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Corporate Travel Management Ltd (ASX: CTD) shares have delivered one of the ASX’s most eye-catching returns — for all the wrong reasons.

The stock only returned to the ASX last Thursday after more than a year suspended from trading. Investors wasted little time selling, sending Corporate Travel shares crashing 86% on their first day back to close at $2.32.

After briefly stabilising, the selling resumed on Wednesday. The shares fell another 9% to $2.03 during afternoon trading.

And shareholders have another headache to contend with.

Potential class action adds to investor concerns

Law firm Phi Finney McDonald is investigating a potential class action against Corporate Travel Management and its former auditor, PwC Australia.

According to the law firm’s website, the investigation concerns alleged financial misreporting over several years. The potential class action would allege Corporate Travel misled investors in its annual financial reports between 2020 and 2024, potentially contravening its continuous disclosure obligations under the Corporations Act.

PwC Australia is also alleged to have engaged in misleading or deceptive conduct and made false statements regarding its auditing of Corporate Travel’s financial reports in accordance with applicable standards.

The proposed action would allege that this conduct caused Corporate Travel shares to trade at an inflated price, resulting in losses for investors who bought shares during the relevant period.

Roop Sandhu, Principal Lawyer at Phi Finney McDonald, notes:

Investors have a right to expect that financial statements from their listed investments are a true and fair reflection of the company’s performance. They are rightfully concerned about their investments in Corporate Travel due to its long term suspension. Likewise, investors have a right to assume that an auditor’s standards meet the relevant legislation and regulatory requirements.

No class action has been filed at this stage. Nevertheless, it’s another issue shareholders could probably have done without.

Some signs of progress

Corporate Travel shares were suspended in August 2025 after accounting problems emerged around customer charge rates in its UK operations.

Since then, the company has been working through a significant customer remediation program. Corporate Travel has agreed or is close to finalising around 78% of refunds, leaving roughly $55 million still to resolve.

There are, however, some encouraging signs in the underlying business.

Corporate Travel’s FY26 result showed revenue and other income increasing 4% to $669.9 million. Underlying EBITDA jumped 36% to $113.6 million.

The company also returned to profitability, reporting net profit after tax (NPAT) of $17.7 million, compared with a $348.5 million loss a year earlier.

Foolish takeaway

Corporate Travel’s underlying business appears to be making progress. However, investors are being asked to look beyond an extraordinary amount of uncertainty.

The remediation program still has work to do, while the potential class action adds another layer of risk. Most importantly, the return of Corporate Travel shares to trading has demonstrated just how quickly investor confidence can evaporate when a company’s financial reporting comes under scrutiny.

For prospective investors, the question may not simply be whether Corporate Travel shares look cheap after their spectacular collapse. It’s whether the market has enough information yet to confidently say the worst is over.

The post Corporate Travel shares plunge another 9%: Is the worst yet to come? appeared first on The Motley Fool Australia.

More reading

• Where does it end? Corporate Travel hit with another blow after crashing 85%
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• Corporate Travel Management shares crashed 80% on their first day back. What happened?
• Why I’m still smiling after losing 85%
• Warning: Corporate Travel shares have crashed 80%. What on earth just happened?

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

Less than a month ago, the S&P/ASX 200 Index (ASX: XJO) was trading as high as 9,282 points.

Today, it is sitting at 8,901 points.

That is a fall of more than 380 points from its August peak, with the index now down around 1.8% over the past week and almost 4% over the past month.

Wednesday has added a little more pressure, with the ASX 200 down 0.22% at the time of writing after briefly falling to 8,888 points earlier in the session.

The move comes after Tuesday’s 1% slide, which pushed the market to its lowest closing level in 6 weeks.

A 4% pullback is hardly a crash, but the benchmark index has clearly lost some momentum.

So, is this becoming a more serious sell-off?

Interest rates are back in focus

One of the biggest concerns is interest rates, with investors facing the possibility that the RBA may not be finished hiking just yet.

The Reserve Bank lifted the cash rate to 4.35% in August, its third increase of 2026, and comments from senior officials this week have kept another move on the table.

Deputy Governor Andrew Hauser said on Tuesday that inflation remains “too high” and questioned whether the rate increases delivered so far would be enough.

Assistant Governor Sarah Hunter also said the board may need to lift rates again if inflation turns out to be stronger than expected.

That could weigh on companies that are more sensitive to interest rates and changes in consumer spending.

Oil prices are another issue, with Brent crude recently pushing towards US$100 a barrel as the conflict in the Middle East continues.

The selling is fairly widespread

It is not just a handful of large companies pulling the market lower either.

At the time of writing, around 120 ASX 200 shares are in the red, compared with 72 trading higher and 8 unchanged.

The major banks are among the biggest drags. Commonwealth Bank of Australia (ASX: CBA) shares are down 2.35% to $154.96, while National Australia Bank Ltd (ASX: NAB) shares have fallen 1.79% to $38.18.

Meanwhile, Westpac Banking Corp (ASX: WBC) shares are down 1.26% to $34.15 and ANZ Group Holdings Ltd (ASX: ANZ) shares are 0.43% lower at $36.78.

There is some support coming from the resources sector, with higher commodity prices helping several of the market’s biggest miners.

BHP Group Ltd (ASX: BHP) shares are up 2.29% to $63.98, while Rio Tinto Ltd (ASX: RIO) shares have climbed 2.03% to $179.58.

Is the sell-off serious?

At this stage, I wouldn’t call a 4% fall a serious correction.

The ASX 200 is still up around 2% in 2026, and some of today’s weakness comes from several large companies trading ex-dividend.

Those dividends are taking around 8.4 points off the index today, so not all of the decline reflects actual selling.

The post The ASX 200 is down nearly 4% in a month. Is the sell-off getting serious? appeared first on The Motley Fool Australia.

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

A little over a week ago, Xero Ltd (ASX: XRO) shares were trading above $89.

Today, investors can pick them up for $72.32.

The cloud accounting stock is down another 2.60% on Tuesday, extending its weekly fall to around 13% and wiping out most of its August rebound.

Xero shares have now fallen roughly 37% in 2026 and almost 55% over the past 12 months, having traded as high as $166 over the past year.

That’s a huge change in what investors are being asked to pay for the same business.

And while a falling share price doesn’t automatically make a stock cheap, Xero is getting to a level where I think it deserves another look.

So, has one of the ASX’s best-known growth stocks finally fallen far enough?

Let’s take a closer look.

Why are Xero shares falling again?

The strange part is that there hasn’t been a new earnings downgrade or major company announcement behind this week’s fall.

Xero’s latest updates have mainly been substantial shareholder notices, while its FY26 result was actually pretty solid.

Revenue rose 31% to NZ$2.75 billion, annualised monthly recurring revenue climbed 37% to NZ$3.27 billion, and subscribers increased 11% to 4.92 million.

The problem is that investors are looking past those numbers and focusing on the risks.

Melio integration costs helped push net profit down 27% to NZ$167.4 million, while gross margin fell from 89% to 83.9%.

There are also questions around what AI could mean for software businesses and whether higher interest rates will keep pressure on growth stocks.

So, I don’t think this week’s decline is about one bad piece of news.

It just looks more like investors are still asking how much they should be willing to pay for Xero’s future growth.

Would I buy Xero shares?

At $72.32, I think Xero’s valuation is starting to look a lot more reasonable.

Morningstar’s quantitative valuation puts fair value at $102.60 per share, which is around 42% above the current price.

Of course, a valuation estimate is not a guarantee. Investors still need to watch Melio integration costs, margins, and whether AI changes the competitive landscape faster than expected.

But Xero still has nearly 5 million customers and plenty of room to grow internationally.

I would expect the share price to remain volatile in the short term.

But if I was investing with a 3-to-5-year view, I think Xero is starting to look like good value again.

The post Down 13% in a week: Is the Xero share price finally cheap enough to buy? appeared first on The Motley Fool Australia.

More reading

• Down 54% in a year, are Xero shares now a buy, hold, or sell?
• Top 3 ASX 200 shares to buy in September
• Xero and Megaport: 2 ASX tech shares the market can’t agree on
• Buy, hold, sell: Megaport, Xero, AMP shares
• These ASX 50 shares have lost up to 60%. Is the sell-off overdone?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia 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.