Author: openjargon

The CSL Ltd (ASX: CSL) share price is in focus today after the company delivered a 90-day interim CEO review and financial update, revealing revised, lower FY26 earnings guidance and plans for around $5 billion in additional asset impairments.

What did CSL report?

• FY26 revenue expected to be around $15.2 billion (constant currency).
• FY26 NPATA (excluding restructuring costs and impairments) forecast at approximately $3.1 billion.
• Additional non-cash, pre-tax asset impairments of around $5 billion expected across FY26 and FY27, mostly relating to CSL Vifor intangibles and under-used assets.
• US Immunoglobulin revenue to take a $300 million impact due to inventory normalisation.
• Albumin in China revenue down by $200 million from market value decline, despite increases in volume and market share.
• Other headwinds, including Middle East conflict and product competition, expected to weigh by about $150 million.

What else do investors need to know?

CSL says its core business in plasma collection and influenza vaccines remains strong, with ongoing demand growth in key markets. The transformation and efficiency program continues, targeting $500–$550 million in annual savings by FY28 as the business works to simplify operations and focus capital on value-adding growth.

While US Immunoglobulin and Albumin product segments are both seeing stable or rising demand, short-term revenue has been impacted by price pressure and changes in market dynamics. CSL Seqirus is tracking moderately ahead of earlier forecasts for the year.

Leadership changes are also underway, with a global search for a permanent CEO progressing and commercial leadership transitioning to Diego Sacristan from 1 July 2026.

What did CSL management say?

Interim Chief Executive Officer and Managing Director Gordon Naylor said:

Our growth initiatives are working, but the financial benefits will take longer than previously anticipated to materialise. As a result, we have now revised down our 2026 financial year guidance. CSL’s culture and people continue to be first class, the industry is stable and growing and the company has evident strengths in plasma collections and influenza vaccines. I am confident that the company can be returned to profitable growth and my work is to position the business and the next CEO for success.

What’s next for CSL?

CSL expects to see revenue growth in its CSL Behring division in the second half of FY26, underpinned by commercial execution and its cost transformation initiatives. Seqirus is also anticipated to outperform previous forecasts.

Management is focused on driving sustainable value through portfolio growth, operational efficiencies, and disciplined capital allocation. The company is streamlining the organisation and accelerating its transformation program. A further update will be provided with CSL’s full-year results in August 2026.

CSL share price snapshot

Over the past 12 months, CSL shares have declined 49%, trailing the S&P/ASX 200 Index (ASX: XJO) which had risen 6% over the same period.

View Original Announcement

The post CSL cuts FY26 guidance, flags $5bn in impairments appeared first on The Motley Fool Australia.

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

ASX healthcare shares have endured a brutal run in 2026, making the sector one of the market’s weakest performers this year.

At the time of writing, shares in ResMed Inc (ASX: RMD) are down 21% this year, while Mesoblast Ltd (ASX: MSB) has fallen 26%. Meanwhile, Pro Medicus Ltd (ASX: PME) has slumped an even steeper 41%.

The sector is facing several major headwinds. Currency pressures, rising labour costs, and uncertainty around potential US tariffs have all weighed on investor sentiment, particularly for companies with large offshore operations.

The weakness has become so widespread that the S&P/ASX 200 Health Care Index (ASX: XHJ) is at an 8-year low, with many ASX healthcare shares trading near 52-week lows.

But while sentiment remains fragile, some brokers believe the sector-wide sell-off has created compelling buying opportunities for long-term investors.

ResMed: Steady earnings growth

ResMed remains one of the ASX’s largest and most established healthcare companies, specialising in sleep apnoea treatment and respiratory care devices.

The company benefits from strong recurring revenue streams, global market leadership, and growing long-term demand driven by ageing populations and increasing awareness of sleep disorders.

However, ResMed still faces challenges. Currency movements can impact earnings translation, while ongoing cost pressures and uncertainty around US healthcare policy remain key risks.

Despite this, analysts still see meaningful upside ahead. Morgans currently has an add rating and a $41.72 price target on the ASX healthcare share. That implies potential upside of around 46% from current levels.

If ResMed can continue delivering steady earnings growth while healthcare sentiment improves, the recent share price weakness could prove temporary.

Mesoblast: Elevated risks

Mesoblast is one of the ASX’s most speculative healthcare shares, but it also offers potentially enormous upside if its cell therapy treatments continue progressing commercially.

Investor interest in Mesoblast has largely centred around its regenerative medicine pipeline and opportunities in inflammatory disease treatment.

Biotech investing always carries elevated risks, particularly around regulatory approvals, commercial execution, and funding requirements. Share price volatility can also be extreme.

Even so, some brokers remain highly optimistic. Bell Potter recently reaffirmed its speculative buy rating on Mesoblast shares and maintained a $4.45 price target on the company. That target suggests the stock could more than double over the next year if momentum improves and clinical progress continues.

For investors comfortable with higher risk, Mesoblast may offer significant upside leverage to positive developments.

Pro Medicus: Valuation concerns

Pro Medicus has long been considered one of the ASX’s premier healthcare technology companies thanks to its globally respected medical imaging software platform.

The company has built a strong reputation for securing major hospital contracts in the US and delivering high-margin recurring revenue growth.

However, the Pro Medicus share price has deteriorated sharply in recent months as broader healthcare weakness and valuation concerns hit investor confidence.

Despite the sell-off, some analysts still remain bullish on the company’s long-term outlook. Morgan Stanley currently maintains a buy rating on Pro Medicus shares with a 12-month price target of $200. That valuation implies potential upside of roughly 55% from current levels.

For investors seeking exposure to healthcare technology and long-term structural growth, Pro Medicus may now look far more attractive after its substantial decline.

The post 3 ASX healthcare shares to buy while they’re on sale appeared first on The Motley Fool Australia.

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

The Xero Ltd (ASX: XRO) share price has been one of the hardest hit on the ASX within the past year. It’s down 57% from 24 June 2025, as the chart below shows.

Xero is one of the largest cloud accounting software businesses in the world, with a sizeable market position in a number of countries including Australia, New Zealand, the UK, South Africa, the USA, Singapore and plenty more.

The ASX tech share has suffered due to market concern about what impact AI could have on software companies. But, some experts believe the Xero share price could be ready to recover significant ground in the months ahead. Let’s take a look at the predictions.

Expert projections about the Xero share price

According to CMC Invest, there are multiple analysts that currently think the ASX tech share is an attractive buy.

Of the analysts that CMC Invest tracks, there have been six buy ratings and one hold rating in the last three months.

The average price target across those seven ratings is $121.78, which implies a possible rise of around 45% in the year ahead.

The most optimistic price target on the Xero share price is $165. If that happened over the next year, it’d be a rise of 97%. However, the most pessimistic price target is $86.80, suggesting a small rise over the next year.

Price targets are not guarantees of what’s going to happen, of course.

The main thing that could help justify a higher Xero share price is delivering ongoing earnings growth.

Strong earnings growth

The latest result from the business was the FY26 half-year result.

Subscribers increased by 10% to 4.6 million, showing the ongoing global success of attracting more customers who want its efficiency and time-saving tools. The company also achieved a 15% increase in the average revenue per user (ARPU) to $49.63, which was significantly assisted by price increases.

The above factors helped the business achieve 20% operating revenue growth to NZ$1.19 billion, operating profit (EBITDA) rose 21% to NZ$378 million, net profit after tax (NPAT) jumped 42% to NZ$135 million and free cash flow soared 54% to NZ$321 million.

We can’t know for sure what Xero’s FY27 profit growth will be, but if it continues growing at a strong double-digit rate, then it will help give investors confidence that it will be unaffected in this AI era.

The post How much could the Xero share price rise in the next year? 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.

If you have a high tolerance for risk, then it could be worth checking out the speculative ASX share in this article.

It has been recommended by analysts at Bell Potter, who believe it has the potential to rocket 80% from current levels.

Which ASX share?

The small cap share that Bell Potter is bullish on is ImpediMed Ltd (ASX: IPD).

It manufactures and sells a medical device employing a technology known as bioimpedance spectroscopy (BIS). This is used in a non-invasive clinical assessment and monitoring of fluid status and tissue composition of patients.

Bell Potter notes that ImpediMed has undertaken a major capital raising and announced a cost reduction plan. The broker feels the cost reductions are credible and leaves the ASX share positioned for break-even if revenue picks up. It said:

As part of the capital raising, IPD advise it is implementing a $5m cost out programme, which reflects a combination of headcount, relocating some roles from the US to Australia, and general cost reductions. While encouraging, the gap to breakeven remains with the revenue side of the ledger. IPD requires c.$12m in additional annual revenue, c.80% of which is expected to be sourced from BCRL [breast cancer-related lymphoedema] in the US, implying that Heart Failure and Body Composition require a longer gestation period. Approx. 40% of the BCRL 350-unit target is expected to come from existing customers.

The BCRL target infers a simple average of 50 units / qtr over the next seven quarters, although IPD is more likely to escalate sales volume from the current 30 units incrementally and one would expect IPD to achieving more than 50 units / qtr by 2Q28. Given IPD’s current sales profile and investment in building SOZO’s value proposition, the assumptions seem credible, but execution is the risk, given past performance.

Big potential returns

If everything goes to plan, Bell Potter believes this ASX share could deliver very big returns.

According to the note, the broker has retained its speculative buy rating with a reduced price target of 1.5 cents. Based on its current share price, this implies potential upside of 87% for investors.

Commenting on the speculative stock, Bell Potter said:

Assuming all options are exercised, the dilution to the share count is material with a potential tripling of the SOI to c.6.6b. This swamps any benefit from the cost reductions, and results in our DCF valuation halving to $0.015/sh. Our WACC is a conservative 17%. Should IPD achieve breakeven and the current risk profile unwinds, a lower and normalised WACC of c.10.5% could be justified which would provide upside potential to $0.045/sh fully diluted.

The post This speculative ASX share is being tipped to rocket 80% 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 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.

At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Domino’s Pizza Enterprises Ltd (ASX: DMP) has become the most shorted ASX share again after its short interest rose to 15.9%. A poor update from the Domino’s US business has cast further doubt on this pizza chain operator’s turnaround.
• Telix Pharmaceuticals Ltd (ASX: TLX) has seen its short interest ease to 15.6%. Short sellers have been targeting this radiopharmaceuticals company this year amid US FDA approval challenges.
• Lotus Resources Ltd (ASX: LOT) has short interest of 15.1%, which is up sharply week on week. Short sellers have been loading up on this uranium producer’s shares following a disastrous March quarter which saw weak production and a sizeable cash burn. This has many in the market expecting another capital raising later this year.
• Polynovo Ltd (ASX: PNV) has 14.3% of its shares held short, which is flat week on week. It is possible that short sellers think this medical device company’s shares are overvalued due to their premium valuation.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 14%, which is up week on week. Short sellers appear to be targeting the quick service restaurant operator due to the underperformance of its US operations.
• Boss Energy Ltd (ASX: BOE) has short interest of 13.3%, which is up since last week. The market is concerned about this uranium miner’s production outlook beyond 2026.
• Treasury Wine Estates Ltd (ASX: TWE) has 12.5% of its shares held short, which is down week on week. Short sellers have been closing positions after the struggling wine giant released an encouraging trading update.
• Zip Co Ltd (ASX: ZIP) has 11.9% of its shares held short. This is up slightly since last week. This is despite the buy now pay later provider delivering both a strong quarterly update last month and an equally strong trading update last week.
• DroneShield Ltd (ASX: DRO) has 10.8% of its shares held short, which is down since last week. This may be due to valuation concerns.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.7%, which is down week on week. A stronger than expected trading update from the travel agent appears to have discouraged short sellers.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, DroneShield, PolyNovo, Telix Pharmaceuticals, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Domino’s Pizza Enterprises, Flight Centre Travel Group, PolyNovo, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian Foundation Investment Co Ltd (ASX: AFI) is a leading ASX dividend stock that I’d call a leading opportunity right now because it’s down around 25% from its peak in 2022 and down around 15% from July 2025, as the below chart shows.

It’s the largest and one of the oldest listed investment companies (LICs) around, but it’s the dividend record and valuation that I’m particularly attracted to, rather than its size or age.

In terms of a good time to buy AFIC, this is arguably close to the best time to invest in the business.

Great valuation

I’ve already highlighted that the business has fallen materially from its 52-week high and all-time high.

But, even more importantly (in my view), is where the AFIC share price is sitting compared to its underlying value – the net tangible assets (NTA). That’s how much the company’s portfolio (and other assets and liabilities) is worth.

At 30 April 2026, it had pre-tax NTA of $7.69. The AFIC share price is trading at close to a 15% discount to that valuation. That’s around the biggest discount it’s traded at for the last decade, which makes this great to buy today.

Compelling payouts from the ASX dividend stock

The business aims to provide shareholders with attractive investment returns through access to a “growing stream of fully franked dividends and enhancement of capital invested over the medium to long term”.

Excluding special dividends, the last two half-year ordinary dividends have amounted to 26.5 cents per share. At the current valuation (at the time of writing), the ASX dividend has a grossed-up dividend yield of 5.8%, including franking credits.

Its regular dividend (excluding special dividends) has been extremely reliable this century, and it has been regularly increasing its payout this decade. For many investors, consistency is a very powerful tool.

Diversified portfolio

Unlike many ASX dividend stocks, instead of relying on one business for dividends, AFIC owns a portfolio of resilient ASX blue-chip shares.

It owns dozens of holdings spread across a number of sectors, including BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Macquarie Group Ltd (ASX: MQG), Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB).

I think this business looks attractively priced for an investment today, offering a combination of dividends, resilience and great value.  

The post 1 ASX dividend stock down 25% I’d buy right now 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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.

If you have $10,000 ready to invest this week, ASX exchange traded funds (ETFs) could be worth considering.

But which ones could be top picks for investors focused on growth?

Here are three ASX ETFs that could be worth looking at this week.

Betashares Global Cybersecurity ETF (ASX: HACK)

The first ASX ETF to look at is the Betashares Global Cybersecurity ETF.

Cybersecurity has become a permanent spending priority for businesses, governments, and critical infrastructure providers. As more operations shift into cloud systems and digital platforms, the cost of a breach can be significant.

This fund gives investors exposure to global companies involved in cybersecurity hardware, software, and services. Its holdings include names such as Palo Alto Networks (NASDAQ: PANW), CrowdStrike (NASDAQ: CRWD), and Fortinet (NASDAQ: FTNT).

Cybersecurity demand is not tied to one product cycle. It is being driven by the ongoing need to protect data, identities, networks, and applications. This bodes well for the long-term outlook of the Betashares Global Cybersecurity ETF.

Betashares Crypto Innovators ETF (ASX: CRYP)

Another ASX ETF that could be a top pick for growth investors is the Betashares Crypto Innovators ETF.

This fund provides exposure to companies connected to the cryptocurrency and blockchain ecosystem.

Rather than holding cryptocurrencies directly, the Betashares Crypto Innovators ETF invests in businesses that support or benefit from activity in digital assets. These can include crypto exchanges, miners, blockchain infrastructure companies, and firms with meaningful exposure to the sector.

Its holdings include Coinbase Global (NASDAQ: COIN), MicroStrategy (NASDAQ: MSTR), and Marathon Digital (NASDAQ: MARA).

This is a higher-risk ETF. Its performance can move sharply with crypto prices, regulation, and investor sentiment toward digital assets. But for investors comfortable with volatility, it provides a simple ASX-listed way to gain exposure to one of the market’s more speculative growth themes.

Global X Fang+ ETF (ASX: FANG)

A third ASX ETF worth considering is the Global X Fang+ ETF.

This fund targets a concentrated group of major global technology and growth companies.

Rather than spreading exposure across hundreds of shares, it focuses on a smaller basket of companies that have been central to the digital economy. These businesses operate across areas such as cloud computing, artificial intelligence, social media, electric vehicles, ecommerce, and digital advertising.

Its holdings include NVIDIA (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), and Palantir (NASDAQ: PLTR).

This concentration can be powerful when large technology leaders are performing well, but it also means the ETF can be more volatile than broader global share funds.

For investors looking to add focused exposure to some of the world’s most influential growth companies, the Global X Fang+ ETF could be an ETF to watch this week. It was recently recommended by analysts at Global X.

The post 3 ASX ETFs to buy with $10,000 this week 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 BetaShares Global Cybersecurity ETF, CrowdStrike, Fortinet, Meta Platforms, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Coinbase Global and Palo Alto Networks. The Motley Fool Australia has recommended CrowdStrike, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

REA Group Ltd (ASX: REA) shares could be good value after pulling back by 33% from their high.

That’s the view of analysts at Bell Potter, who are recommending the ASX 200 share as a buy to clients.

What is the broker saying about this ASX 200 share?

Bell Potter was pleased with REA Group’s quarterly update, highlighting that the realestate.com.au operator delivered a resilient result despite rising interest rates. It said:

REA reported a resilient Q3 update in a rising interest rate environment, with 1% growth in listings driven by strong Melbourne (+7%) and Sydney (+4%) performance. Residential Buy yield of +14% for the quarter was ahead of BPe FY26 (12%) and was supplemented by the Mel/Syd volume outperformance. Commercial and Financial Services segments grew revenues double digits, while a focus on core Housing.com revenue in India helped reduce Group opex on a like-for-like basis to 5% growth offset by 9% growth in Aus; Group margin increased by 221bps YoY to 55.3% for the quarter.

Another positive is that the broker believes that REA Group’s outlook is improved despite a deterioration in market conditions. It adds:

REA guided to an 8% average price increase for FY27e, which is well ahead of Domain’s 4% increase aimed at undercutting REA on price to take market share; our read-through is that REA remains confident in proving value against price leveraging its superior audience with REA attracting and engaging the buyer for 9 out of 10 homes listed on-platform and go on to sell, according to independently reviewed and validated data provided to end-users.

Recent acquisition iGuide is expected to assist against the CoStar integration of Matterport into Domain. REA see’s the market entering a balanced phase following a period of demand exceeding supply; our forecast for -2% listings decline in FY27e is unchanged.

Market-beating potential returns

According to the note, the broker has retained its buy rating on the ASX 200 share with an improved price target of $217.00 (from $211.00).

Based on its current share price of $176.89, this implies potential upside of almost 23% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

While we recognise the potential for disruption in a rapidly evolving environment, we currently see the multiple compression as overdone considering that REA’s moat lies in decades of property, customer and buyer intent data and inherent network effect via established and highly engaged audience. Therefore, REA’s shareholder value sits below the user interface level which is difficult to replicate. Retain Buy.

The post Bell Potter says this dominant blue-chip ASX 200 share is a buy appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in REA Group. 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.

A brutal sell-off in one of the ASX 200’s biggest tech names has opened up a very attractive buying opportunity.

After a rough start to 2026, WiseTech Global Ltd (ASX: WTC) shares are trading at a large discount to where they were less than a year ago.

The logistics software company finished Friday down 4.63% to $42.27. That followed a weaker session for the S&P/ASX 200 Index (ASX: XJO) as investors reacted to naval skirmishes between the US and Iran in the Strait of Hormuz.

WiseTech shares are now down almost 40% in 2026. They are also trading a long way below their July 2025 high of $121.31.

Let’s take a closer look at why the stock could be worth buying at these levels.

A global software business at a very cheap price

WiseTech is best known for CargoWise, its software platform used across the global logistics industry.

Its customers include freight forwarders, customs brokers, logistics providers, and other companies that need to manage complex cross-border supply chains.

This isn’t a simple app that customers can easily replace. CargoWise sits deep inside day-to-day logistics workflows, covering areas such as freight forwarding, customs, compliance, routing, and documentation.

Once embedded, CargoWise can become difficult and costly to replace.

And WiseTech also has a large global opportunity.

In its latest Macquarie Australia Conference presentation, the company said CargoWise is targeting an $11 trillion-plus global logistics market. It also pointed to TradeWise, trade finance, customs and border agencies, and verified identity as additional long-term markets.

Guidance still looks strong

The key point to note is that the company’s numbers still point to a strong year ahead.

WiseTech has maintained its FY26 guidance. It expects revenue of US$1.39 billion to US$1.44 billion and EBITDAof US$550 million to US$585 million.

That implies an EBITDA margin of around 40% to 41%.

WiseTech has also pointed to underlying EBITDA of US$598.5 million to US$637.5 million.

The company is also pushing harder into artificial intelligence (AI). Management sees AI as a way to improve productivity, reduce labour intensity, and make its platform more useful for customers.

But there are risks. WiseTech is still not cheap on traditional valuation measures, and investors have been worried about acquisitions, AI disruption, and global trade uncertainty.

Nonetheless, at $42.27, the risk-reward looks far more interesting than it did near $121.

Foolish takeaway

Despite the above, I would not call WiseTech completely risk-free.

The US-Iran conflict and pressure around the Strait of Hormuz have added uncertainty to global trade and shipping. But those issues will not last forever.

Once shipping lanes normalise and the market starts looking past the geopolitical noise, I think WiseTech could re-rate quickly.

This is still a high-margin global software business with recurring revenue, deep customer relationships, and a large market opportunity.

With FY26 guidance maintained and the stock more than 60% below last year’s high, WiseTech looks like an absolute bargain.

The post Is this the best ASX 200 stock to buy in May? 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.

The ASX 200 has been strong over the past year, but CSL Ltd (ASX: CSL) has missed the party completely.

On Friday, CSL shares hit a 52-week low of $119.61. That means the healthcare giant is now down around 49% over 12 months.

I think that is an extraordinary fall for one of Australia’s highest-quality global businesses. And while CSL clearly has challenges to work through, I believe the sell-off has created a buying opportunity for patient investors.

This is not just any fallen stock

I would never buy a share simply because it has fallen heavily.

Sometimes a falling share price is the market correctly adjusting to a weaker business. But I think CSL deserves a closer look because of what it still owns.

This is a global healthcare company with leading positions in plasma therapies, vaccines, and specialist medicines. Its products are used to treat serious medical conditions, which gives the business a very different demand profile from a retailer, miner, or airline.

That does not make CSL immune from problems. Plasma collection costs, margin pressure, trial failures, weak demand for albumin in China, and investor disappointment around earnings growth have all weighed on sentiment.

But I do not think those issues destroy the long-term value of the business.

For me, the key question is whether CSL can gradually rebuild confidence. If it can, today’s share price could look very cheap in hindsight.

The market has reset expectations

What makes CSL interesting today is how far expectations have moved.

A few years ago, investors treated CSL as one of the safest growth shares on the ASX. It often traded at a premium valuation because the market believed in its long-term earnings power.

Today, the mood is very different.

Investors are questioning the pace of recovery, margins, balance sheet flexibility, and whether management can return the business to the type of growth profile it once delivered.

I think that caution is understandable. But I also think the share price now reflects a lot of disappointment.

That is where the opportunity may be.

If CSL only needs to show steady progress, rather than perfection, the risk-reward looks much more appealing to me at a 52-week low than it did when the market was pricing in near-flawless execution.

The recovery could be powerful

CSL does not need to become a new business to create value from here.

It needs to execute better, restore margins over time, manage costs, keep reducing investor concerns, and show that its core plasma business still has attractive long-term growth ahead.

I believe it can do that.

Healthcare demand is not going away. Plasma therapies remain difficult to replicate at scale. CSL has global infrastructure, scientific expertise, regulatory experience, and deep relationships across healthcare markets.

Those strengths can be easy to overlook when sentiment is poor.

But for long-term investors, I think they still matter.

There is also something important about buying quality when it feels uncomfortable. The best entry points rarely arrive when every headline is positive. They often appear when investors are tired of waiting and the market has stopped giving a company the benefit of the doubt.

That feels close to where CSL is today.

Foolish takeaway

CSL shares are deeply out of favour, and I can understand why some investors have lost patience.

But I think the market may now be focusing too much on the pain of the past year and not enough on the quality that still sits inside the business.

At a 52-week low, I would be willing to buy CSL shares and give the company time to recover.

It may not happen quickly. But if CSL can regain even part of its former market confidence, I think patient investors could be well rewarded from here.

The post Why I’d buy CSL shares at their 52-week low appeared first on The Motley Fool Australia.

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