Author: openjargon

On Monday, the S&P/ASX 200 Index (ASX: XJO) was out of form and ended the day lower again. The benchmark index fell 0.5% to 8,701.8 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to edge higher

The Australian share market looks set to rise slightly on Tuesday following a relatively positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 13 points or 0.15% higher. In the United States, the Dow Jones rose 0.2%, the S&P 500 climbed 0.2%, and the Nasdaq edged 0.1% higher.

Oil prices jump

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 3.3% to US$98.58 a barrel and the Brent crude oil price is up 3.2% to US$104.54 a barrel. This follows comments from Donald Trump suggesting that the US and Iran ceasefire is on thin ice.

Life360 quarterly results

All eyes will be on Life360 Inc. (ASX: 360) shares on Tuesday when the family safety technology company releases its quarterly update. Commenting on expectations, Bell Potter said: “Our key forecasts for Q1 are global MAUs of 98.4m (equates to a q-o-q increase of 2.6m or y-o-y growth of 17.6%), total paying circles of 2.93m (q-o-q increase of 99k), revenue of US$137.5m (y-o-y growth of 33%) and adjusted EBITDA of US$14.5m (equates to a margin of 10.5%). Our view is that our Q1 forecasts are consistent with or slightly below the market so importantly both we and the market are at a level where there is probably now more upside than downside risk to the result.”

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a decent session on Tuesday after the gold price edged higher overnight. According to CNBC, the gold futures price is up 0.3% to US$4,744.2 an ounce. Gold ticked up as the market worked through US-Iran updates and awaits US inflation data.

CSL shares given hold rating

CSL Ltd (ASX: CSL) shares started the week with a hugely disappointing 16% decline after another guidance downgrade. In response, this morning Bell Potter has retained its hold rating with a reduced price target of $100.00 (from $155.00). It said: “We think a discount is warranted for CSL considering the declining underlying earnings outlook across FY26-27, the lack of stable management, and series of credibility hits following several disappointing results/trading updates. CSL is trading on ~12x our forecast NPATA for FY27.”

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

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• What are experts saying about these shares hitting 52-week lows 
• Here are the top 10 ASX 200 shares today
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• Why the ASX 200 is being smashed today

Motley Fool contributor James Mickleboro has positions in CSL and Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Life360. The Motley Fool Australia has positions in and has recommended Life360. 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.

Global conflict, rising interest rates and inflation have all contributed to a volatile year for the S&P/ASX 200 Index (ASX: XJO). 

Australia’s benchmark index dipped again yesterday to start the week in the red. 

It is now down 2.5% over the last month. 

History tells us that we can expect annual returns of between 7% and 9% for the ASX 200 on an average year. 

However it’s important to understand this isn’t a consistent, year to year return. 

Some years the ASX 200 has rocketed almost 20%, like back in 2019. 

Meanwhile, other years it will drop over a 12 month period. 

This is why it’s important for investors to geographically diversify their portfolio by also investing in equities outside Australia.

While certain Australian equities lag, companies in other countries are performing well. 

One way to do this is through ASX listed ETFs. 

Here are three funds that have raced past the ASX 200 this year

Global X Semiconductor ETF (ASX: SEMI)

This ASX ETF enjoyed a 5% gain yesterday, taking its year to date rise to 60%. 

The fund invests in companies that stand to potentially benefit from the broader adoption of tech-enabled devices that require semiconductors. This includes the development and manufacturing of semiconductors.

Semiconductors, essential for AI, are strategic assets due to their ability to control electricity and power modern electronics, likened to “brains and nerves” of devices.

Geographically, the companies that make up the fund are mostly from: 

• United States (66.55%)
• Taiwan (11.38%)
• Netherlands (8.30%). 

Betashares Capital – Asia Technology Tigers Etf (ASX: ASIA)

This ASX ETF tracks the performance of an index (before fees and expenses) comprising the 50 largest technology and online retail stocks in Asia (ex-Japan). 

ASIA ETF provides diversified exposure to a high-growth sector that is under-represented in the Australian sharemarket, and a complement to investors with U.S. technology exposure.

This fund is up an impressive 38% year to date. 

It is up more than 90% over the last 12 months.

iShares Msci Emerging Markets Ex China ETF (ASX: EMXC)

This ASX ETF aims to provide investors with the performance of the MSCI Emerging Markets ex China Index, before fees and expenses. 

The index is designed to measure the equity market performance in global emerging markets, excluding China.

It includes a large exposure to information technology and financials shares. 

Its top geographic exposure is to: 

• Taiwan (32.6%)
• South Korea (23.9%)
• India (15.4%). 

Since the start of 2026, the fund has risen more than 21%. 

The post 3 ASX ETFs that have raced ahead this year appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in Betashares Capital – Asia Technology Tigers Etf. 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.

When investors think about ASX financial shares, the big four banks usually get most of the attention.

That is understandable. They are large, profitable, and familiar to most Australian investors.

But if I were choosing one ASX financial stock to buy for the long term, I would be looking very closely at Macquarie Group Ltd (ASX: MQG).

It is not the cheapest financial stock on the market. It is not the simplest either. But I think it may be one of the highest quality.

More than a bank

The first thing I like about Macquarie is that it is much broader than a traditional bank.

Yes, it has a fast-growing retail banking operation. But it also has major businesses in asset management, commodities, global markets, investment banking, private credit, infrastructure, and specialist investing.

That gives Macquarie a very different earnings profile to the major banks.

A traditional bank is heavily exposed to mortgages, deposits, net interest margins, credit growth, and bad debts. Macquarie has exposure to those things through Banking and Financial Services, but it also has several other engines that can contribute in different market environments.

For me, that is the main attraction.

Macquarie is a financial stock with genuine global reach and multiple ways to grow.

The latest result supports the quality case

I would not buy Macquarie purely because of one result, but its recent FY26 numbers do support the long-term thesis.

The group reported a net profit of $4.85 billion for FY26, up 30% on FY25. Its second-half profit of $3.19 billion was a record half-year result.

That shows the business still has plenty of earnings power.

What I find particularly attractive is the spread of contributions across the group. Macquarie Asset Management, Banking and Financial Services, Commodities and Global Markets, and Macquarie Capital all delivered higher net profit contributions in FY26.

That does not mean every year will be smooth. Macquarie’s earnings can move around, especially in its market-facing businesses. But I would rather own a company with several growth engines than one relying on a single source of profit.

Structural growth themes

Another reason I like Macquarie is its exposure to long-term trends.

The company is active in areas such as private markets, infrastructure, energy, commodities, digital banking, private credit, and specialist financing.

These are not small themes.

Infrastructure investment remains important globally. Energy markets are becoming more complex. Private capital continues to grow. Digital banking is taking share from older models. Companies still need specialist advice, capital, risk management, and financing solutions.

Macquarie is positioned across many of these areas.

That gives it a chance to keep finding opportunities over the long term, even as conditions change.

The balance sheet matters

Financial stocks can look attractive when markets are strong, but balance sheet strength is what matters when conditions become more difficult.

This is another area where Macquarie stands out to me.

At the end of FY26, the group reported a Bank Group CET1 ratio of 12.8%, a liquidity coverage ratio of 173%, and a net stable funding ratio of 116%. It also reported total deposits of $221.5 billion, up 25% over the year.

I think that conservative positioning is important.

It gives Macquarie flexibility to support growth, manage volatility, and move when attractive opportunities appear.

Is it the best ASX financial stock to buy?

I think Macquarie has a strong claim.

Commonwealth Bank of Australia (ASX: CBA) is arguably the highest-quality traditional bank on the ASX. But Macquarie offers something different.

It gives investors exposure to a global financial platform, not just an Australian banking franchise.

The trade-off is that Macquarie can be harder to value, and its earnings may be less predictable from year to year. The shares also rarely look obviously cheap when investors are confident in the business. But quality doesn’t usually come at a bargain price.

The post Could Macquarie shares be the best ASX financial stock to buy? appeared first on The Motley Fool Australia.

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

With the ASX 200 experiencing significant volatility this year, investors may be shifting their attention away from growth, towards more reliable returns. 

One such strategy to consider is dividend investing. 

According to S&P Global, Australia has historically been one of the highest-yielding equity markets in the world. 

However, this has shifted in the last few years. 

Data shows the trailing 12-month dividend yield of the S&P/ASX 300 Index (ASX: XKO) sits at approximately 3.5%.

This still outpaced other markets in Europe, Canada and the US. 

However it’s significantly lower than its long-term average of approximately 4.5%.

Why turn to dividend shares now?

Even though dividends are shrinking, dividend shares can be particularly attractive during periods of market volatility because they provide investors with a steady stream of income even when share prices fluctuate. 

Companies that consistently pay dividends are often well-established, financially stable businesses with reliable cash flow, which can make them more resilient during economic uncertainty. 

Regular dividend income can help offset capital losses during market downturns and provide investors with greater confidence to hold their investments long term. 

In addition, reinvesting dividends during weaker markets allows investors to purchase more shares at lower prices, potentially enhancing long-term returns once market conditions improve.

With that in mind, here are several ASX dividend shares with comparably high yields. 

IVE Group Ltd (ASX: IGL)

IVE Group provides communication solutions. Its services includes creative services, personalised communications, print production, retail display, promotional merchandising, third party sourcing, logistics and fulfilment and managed solutions.

Recently, Bell Potter released updated guidance. 

The broker is expecting the company to pay fully franked dividends of 18 cents per share in FY 2026 followed by 20 cents per share in FY 2027. 

Based on its current share price, this would equate to yields of 6.8% and 7.6%, respectively, well above the ASX benchmark of 3.5%.

Australian Foundation Investment Company (ASX: AFI)

Another ASX dividend stock offering market beating yields is Australian Foundation Investment Company. 

The self-managed investment company is currently offering a grossed-up dividend yield of approximately 5.8%. 

Furthermore, it has a strong track record of bumping up its yield over the last decade. 

Plato Income Maximiser (ASX: PL8)

Plato Income Maximiser provides investors with the opportunity to benefit from an indirect investment in actively managed well-diversified Australian listed equities portfolio that aims to generate both income and a total return in excess of the benchmark. 

It also aims to make regular monthly dividends once it has sufficient profit reserves.

In some ways, this is similar to an ASX ETF. 

It holds an underlying portfolio of investments that it manages on behalf of its shareholders. 

This dividend stock currently offers a yield of roughly 4.85%.

Betashares Australian Dividend Harvester Fund (ASX: HVST)

For investors looking to diversify beyond individual dividend shares, this ASX ETF could be another option. 

The fund’s share portfolio is generally selected from the largest 100 Australian shares on the ASX, and screened for high dividend and franking outcomes based upon expected future gross dividend payments.

It currently offers a 12 month gross distribution yield of 7.4%. 

The post Is now the time to turn to high yield dividend shares? 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.

Shares in Meeka Metals Ltd (ASX: MEK) have more than halved in recent months, with the analyst team at Morgans convinced this represents an attractive buying opportunity.

Weak production disappoints

Meeka released its quarterly report late last month and revealed that gold production had fallen sharply, down from 9174 ounces in the previous quarter to 6083 ounces.

The company reported mine operating cash flow of $25.8 million and net mine cash flow of $10 million, “after significant non-recurring growth capital investment ($15.8M) in new mines and expanded infrastructure”.

The company’s cash on hand increased from $37.3 million in the December quarter to $50.1 million, with the company unhedged and holding no debt.

Meeka Managing Director Tim Davidson said regarding the quarterly:

It was a frustrating quarter from a production perspective but we did see significant improvement in process plant throughput. We expect this to continue as the mill feed transitions to increasingly fresh ore from underground over the coming quarters, which will also deliver an increase in head grade. To this end our investment in new mines, including our next underground mine at Turnberry, will further increase head grade through the plant with more targeted underground mining and less reliance on open pit ore and stockpiles. Pleasingly our cash build continued even after significant, non-recurring, capital expenditure on growth projects.

Part of the company’s production issues stemmed from significant rainfall, which impacted operations at its open pit mines, reducing access to higher grade ores.

This in turn disrupted the company’s plans to stream grades together, “resulting in an increased reliance on processing lower grade stockpiles accumulated over the preceding 12 months since mining commenced”.

Shares still looking cheap

Morgans said the quarterly also missed expectations on the cost front.

The analysts added:

We maintain our buy rating, but view the next two quarters as critical as Meeka needs to demonstrate clear grade improvements to remain on track for the anticipated step-change in free cash flow into FY27. Following a tough third quarter, the next 6 months represent a key inflection point for Meeka, where delivery of key operational milestones will determine balance sheet strength. The commencement of underground stoping in the latter part of the quarter is expected to lift grades, drive throughput efficiencies and underpin stronger cashflow into FY27.

Morgans said in addition to the current operations, they expected further high grade exploration success and resource conversion.

Morgans has a price target of 35 cents on Meeka shares compared with the current price of 13.25 cents.

Meeka is valued at $412.4 million.

The post Morgans says this sold down ASX gold company could more than double in value appeared first on The Motley Fool Australia.

More reading

• What are experts saying about these shares hitting 52-week lows 
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• Could Macquarie shares be the best ASX financial stock to buy?
• Is now the time to turn to high yield dividend shares?

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 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 team at Bell Potter have been covering ASX small-cap EMvision Medical Devices Ltd (ASX: EMV) for some time. 

Over that period, it has drawn positive ratings from the broker.

Like many ASX small-cap healthcare stocks, a large part of its valuation and future success depends on whether its clinical trials produce strong results.

Company overview 

EMvision was established in 2017 and listed on the ASX in 2018. It aims to change the Stroke Care paradigm to positively impact the lives of millions globally.

The lead product in development is a portable, cost-effective, non-ionising and safe brain scanner. The scanner is capable of rapidly determining the presence of suspected stroke and stroke type to provide game-changing insights for clinicians. 

The lead product is a hospital and cart-based device that can be wheeled around and used by Stroke Centres, Intensive Care Units and Emergency Departments, called emu. 

A new report from Bell Potter has updated its view following a key clinical trial update for the ASX small-cap. 

Fresh clinical trial update

According to the report, EMvision is expanding its main clinical trial so its brain scanner can detect:

• bleeding strokes (haemorrhagic), and now also
• blocked-vessel strokes (ischaemic).

That matters because only about 13% of strokes are bleeding strokes, while about 87% are ischaemic strokes.

In short, EMvision is trying to make its device useful for almost all stroke patients, not just a small subset.

While correctly identifying c.13% of strokes is valuable, having a further indication that covers detecting ischaemic strokes (c.87%), would enhance clinical utility and commercial value. 

Adding the additional indication is expected to add a relatively modest amount of time to the Pivotal trial’s timelines, with enrolment now expected to be completed in late CY26 / early CY27.

The broker said at present 125 patients have been enrolled across multiple sites with a target of 300 patients. 

Including the ischaemia detection endpoint in the current Pivotal Trial leverages the same patient cohorts, infrastructure, and regulatory pathway to generate expanded indications, potentially saves up to two years and several million dollars in trial costs compared to funding and enrolling a standalone trial later.

Steady progress

Following the update, Bell Potter has retained its buy recommendation on this ASX small-cap. 

It also has retained its price target of $3.15. 

From yesterday’s closing price of $1.89, this indicates an upside potential of approximately 67%. 

EMV continues to make steady progress in its Pivotal Trial and other studies. Despite extending the trial timeline, adding in ischaemia as a primary endpoint, seems wise from a cost, timeline and commercial value perspective. 

One can infer a timeline for the readout at 3QFY27, followed by an FDA decision on the De Novo application in 1H28.

The post What is Bell Potter’s view on this ASX small-cap following a clinical trial update? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in EMVision Medical Devices. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended EMVision Medical Devices. 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.

Broker recommendations should never be followed blindly.

Analysts can be wrong, price targets can change, and even high-quality companies can disappoint.

But I still think broker views can be useful when they highlight businesses where the market may be focusing too heavily on short-term uncertainty and not enough on long-term value.

Three ASX 200 shares currently attracting buy ratings are named in this article.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle Investment Management is one ASX share that Morgans remains positive on.

The investment house recently reviewed Pinnacle’s third-quarter update and kept its buy rating on the stock. It also lifted its target price to $24.70 from $23.21.

The key point from Morgans was that Pinnacle’s flows were stronger than expected during the quarter, despite a volatile market environment. I think that is important.

Fund managers can be very sensitive to market conditions. When sentiment weakens, investors may pull money out, delay allocations, or shift into more defensive options. So, when a funds management business is still attracting flows in a difficult backdrop, it can say something useful about the strength of its affiliates, investment performance, and client relationships.

Morgans also noted Pinnacle’s additional 6.8% investment in Metrics, describing it as a further vote of confidence in the business.

This is the part I like about Pinnacle. It is not a traditional single-manager funds business. It backs a range of specialist investment managers, which gives it exposure to multiple strategies and growth opportunities.

That does not remove risk. Markets still matter, performance fees can move around, and investor flows can be cyclical. But if Pinnacle keeps supporting quality affiliates and growing funds under management over time, I think it remains an attractive long-term financial stock.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre is a much more contrarian idea. Morgans has a buy rating and a $14.55 target price on the travel company, even though it has concerns about near-term trading.

The broker noted that Flight Centre surprisingly maintained its FY26 earnings guidance, despite the Middle East conflict creating uncertainty and temporarily disrupting international travel patterns. It also pointed out that the impact has been more significant in leisure travel, with April profit down around $10 million on the prior corresponding period.

That clearly shows there is risk here. Travel shares can be vulnerable to geopolitical shocks, consumer weakness, fuel prices, airline capacity, and currency movements.

But I can see why Morgans is still looking through the current disruption.

Its view is that Flight Centre would have had a great year without the conflict, given its results for the first nine months were strong. Morgans also believes the company is worth materially more than the current share price after the earnings downgrade. That is the opportunity.

Travel demand has shown many times that it can rebound after downturns. If the current disruption proves temporary, Flight Centre could eventually benefit from normalising conditions, corporate travel recovery, and pent-up demand from consumers who still want to travel.

It is not a low-risk buy, but I think it is an interesting recovery stock for investors willing to be patient.

ARB Corporation Ltd (ASX: ARB)

ARB Corporation is another ASX share with broker support, with Ord Minnett maintaining a buy rating with a $31.00 target price.

The company is best known for its four-wheel drive accessories, including bull bars, suspension, canopies, recovery equipment, and camping-related products.

Ord Minnett acknowledged near-term headwinds. New vehicle sales have been affected by inconsistent manufacturer supply, and elevated fuel prices may weigh on demand for ARB’s Australian aftermarket operations.

But the longer-term outlook appears more appealing.

The broker highlighted robust demand for ARB’s products, a healthy order book, and new vehicles and products being released globally. It also expects earnings growth to be supported by new and refurbished stores, offshore expansion, and strategic partnerships with original equipment manufacturers.

I think that is the right way to view ARB.

Short-term demand can move with the economy, fuel prices, and vehicle sales. But ARB has built a strong brand in a niche where quality and trust matter. For many customers, four-wheel drive accessories are not just about looks. They are about safety, capability, and reliability.

That gives ARB a durable position if it keeps executing well.

Foolish takeaway

These three broker-backed ASX 200 shares offer very different investment cases.

Pinnacle is a funds management growth story. Flight Centre is a recovery opportunity. ARB is a quality brand with offshore expansion potential.

None is risk-free, and broker ratings are only one input. But I think all three have enough long-term appeal to be worth a closer look for investors searching for opportunities in the current market.

The post 3 ASX 200 shares that brokers are recommending as buys in May 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 ARB Corporation and Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has recommended ARB Corporation and Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Inflation is back in the headlines in 2026. 

Australia’s annual headline inflation rate rose to 4.6% in the 12 months to March, up from 3.7% in February, with fuel a major driver of the increase.

For investors, this creates a simple problem. Cash sitting in the bank needs to work harder just to maintain purchasing power.

That is why I think these ASX income stocks with forecast dividend yields above 8% could be worth considering.

GQG Partners Inc (ASX: GQG)

The first ASX income stock I would look at is GQG Partners.

GQG is a global investment manager, which makes it very different from a typical ASX dividend share.

Its earnings are tied to funds under management, investment performance, market conditions, and client flows. That means the dividend is not risk-free. A weak period for markets or fund flows could put pressure on profits and payouts.

But I think GQG has a few qualities that make it appealing for income investors.

It has a capital-light model, global reach, and exposure to institutional and wholesale investors around the world. If markets remain supportive and the company continues to attract or retain client money, it has the potential to generate strong cash flows.

According to CommSec, consensus estimates show that GQG is forecast to offer a dividend yield of around 12% in both FY26 and FY27.

That puts it well ahead of the current inflation rate and gives investors a potentially attractive income stream while they wait for long-term growth.

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman is another ASX income stock I think could help investors fight inflation.

The retailer has been out of favour at times because discretionary spending can be sensitive to interest rates, housing turnover, and consumer confidence.

But I think Harvey Norman is more interesting than a simple retail story.

It has a well-known brand, a large store network, offshore operations, and a significant property-backed element to the business. That property exposure gives it a different feel from many other retailers.

There are risks. If households remain under pressure from rising fuel costs, higher mortgage repayments, and cost-of-living concerns, spending on furniture, electronics, and appliances could be uneven.

But for investors focused on income, the valuation and yield are the attraction.

Consensus estimates point to Harvey Norman offering a dividend yield of around 8.5% in both FY26 and FY27.

While no dividend forecast is ever guaranteed, this is a business that has been through plenty of cycles before and continued to reward shareholders.

Foolish takeaway

Inflation at 4.6% changes the income conversation.

A 4% yield may no longer feel like enough for investors trying to protect their purchasing power.

That is why I think GQG Partners and Harvey Norman are worth a closer look. Both offer forecast yields above 8% in FY26 and FY27, based on consensus estimates.

Combined, I think they could help income investors fight inflation.

The post I’d buy these ASX income stocks to beat inflation appeared first on The Motley Fool Australia.

More reading

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• How to build a $1,000 a month passive income from the ASX
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• The Aussie dollar just hit a 4-year high. Which ASX shares will benefit?
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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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX 200 is not packed with technology shares like the Nasdaq, but I think there are still some high-quality options for investors willing to take a long-term view.

The key, in my opinion, is focusing on businesses that solve important problems, have strong customer relationships, and can keep scaling over time.

Two ASX 200 tech shares I think could beat the market over the next decade are named in this article.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of the quieter compounders on the ASX.

The enterprise software company serves customers in areas such as government, education, and large organisations. These customers often need dependable software for essential functions, which can make revenue relatively sticky.

I think the attraction is the repeatability of the model.

TechnologyOne has spent years moving toward software-as-a-service, which can provide more predictable revenue and better scalability over time. It is also expanding in the UK, giving the company another potential growth engine.

That overseas opportunity is important.

Australia has already been a strong market for TechnologyOne, but the UK gives it a chance to prove that its software model can travel. If it can keep winning customers there, the company may have a much larger growth runway than investors assume.

This is the kind of business that may not always grab headlines, but it can be very useful in a long-term portfolio.

NextDC Ltd (ASX: NXT)

NextDC is a very different ASX 200 tech share.

It does not sell software. It develops and operates data centres, which are becoming increasingly important infrastructure for the digital economy.

I think this makes NextDC one of the more interesting tech shares for the next decade.

The world is using more data every year. Cloud computing, artificial intelligence, streaming, cybersecurity, online platforms, and enterprise software all require secure, reliable, high-performance data centre capacity.

NextDC is positioned right in the middle of that demand. The company has been investing heavily to expand its footprint across Australia and into Asia. That can weigh on short-term earnings because data centres require significant upfront capital. But I think the long-term prize could be substantial if demand keeps growing.

What I like about NextDC is that it gives investors exposure to technology infrastructure rather than trying to pick the winning software application.

If more businesses shift workloads to the cloud, if AI adoption increases, and if data intensity keeps rising, high-quality data centre capacity should remain valuable.

Foolish takeaway

Beating the market over 10 years is never guaranteed.

But I think TechnologyOne and NextDC both have qualities that give them a real chance.

TechnologyOne has a repeatable software model, a strong track record, and an overseas growth opportunity. NextDC has exposure to the rising demand for data centre capacity as the digital economy expands.

For investors looking for ASX 200 tech shares to buy and hold, I think both deserve a close look.

The post Why these ASX 200 tech shares could beat the market over the next decade appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: TechnologyOne, Telstra, and Woodside shares
• Top brokers name 3 ASX shares to buy next week
• 3 super ASX tech stocks I’d buy in May with $3,000
• $10,000 invested in these ASX 200 shares 10 years ago is worth…
• Here are the top 10 ASX 200 shares today

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

Two of the ASX’s former market darlings have been brutally sold off over the past year.

Pro Medicus Ltd (ASX: PME) and Xero Ltd (ASX: XRO) have both fallen a long way from their highs, as investors have moved away from expensive growth shares.

But after such large declines, I think both stocks are starting to look very interesting again.

At the time of writing, the Pro Medicus share price is down $128.25. That leaves the medical imaging technology stock down almost 50% over the past year.

Xero shares are trading at $83.43 at the time of writing. The accounting software company has now fallen by around 52% over the past 12 months.

Those steep declines would normally cause investors to panic. But I think this may have created two very attractive buying opportunities in May.

Pro Medicus still has high-quality growth

Pro Medicus has been one of the ASX’s best healthcare technology businesses for years.

The company provides medical imaging software to hospitals, radiology groups, and healthcare networks. Its Visage platform helps manage large volumes of medical imaging data, making it a critical tool within large healthcare systems.

The sell-off has been driven partly by valuation concerns. Pro Medicus was priced for near-perfect growth when the share price was above $300 last year. However, after such a large fall, investors are now getting a much better price for a business that is still delivering strong numbers.

In its HY26 result, Pro Medicus delivered revenue of $124.8 million, up 28.4% year on year. Underlying profit before tax rose 29.7% to $90.7 million, helped by a very high EBIT margin of 73%.

The company has also kept winning major contracts. Recent deals include a 5-year $23 million contract with the University of Maryland Medical System and a 5-year $37 million contract renewal with Northwestern Medicine.

Broker views also remain positive. Recent data shows Morgan Stanley has a $210 price target, while Bell Potter has a $226 target. Based on the current share price, that points to potential upside of about 64% and 76%, respectively.

Xero’s sell-off looks overdone

Xero has had an even rougher year on the share market.

Investors have been worried about slowing software growth, valuation, and whether artificial intelligence (AI) could disrupt accounting platforms.

And that is a fair concern. But Xero is not some fringe software product that can be easily replaced.

Its platform is used for accounting, payroll, payments, tax, invoicing, and cash flow tools. Once a business and accountant are both using Xero, switching can be a hassle.

The latest half-year result showed subscribers up 10% to 4.6 million. Operating revenue rose 20% to NZ$1.19 billion, while net profit after tax (NPAT) jumped 42% to NZ$135 million.

That tells me the business is still growing well, even as the share price says otherwise.

CMC data also points to upside. The average target across recent analyst ratings is $121.78, implying a possible rise of around 46% from the current share price.

The post Down 50%, these 2 ASX growth shares look too cheap to ignore appeared first on The Motley Fool Australia.

More reading

• Are these the 3 most undervalued ASX 200 shares right now?
• Down 40% but not out: Is Pro Medicus the buy of the decade right now?
• Why the ASX 200 is being smashed today
• 3 ASX healthcare shares to buy while they’re on sale
• How much could the Xero share price rise in the next year?

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