Category: Stock Market

DroneShield Ltd (ASX: DRO) is one of the more exciting growth shares on the ASX.

The company operates in a market that barely existed as a major investment theme a decade ago, but the world has changed quickly.

Drones are becoming more accessible, more capable, and more widely used across defence, security, and critical infrastructure. That creates a growing need for technology that can detect, track, and respond to drone threats.

For investors willing to accept volatility, I think DroneShield shares could be worth buying and holding for the next 10 years.

A company solving a growing problem

The strongest investment ideas often begin with a simple question: what problem is becoming harder to ignore?

For DroneShield, that problem is protecting people, assets, and infrastructure from increasingly sophisticated drone activity.

The company develops counter-drone technology designed to identify and respond to threats across fixed locations, mobile operations, and defence environments.

What interests me is that this is not a consumer trend that could disappear when attention moves elsewhere. Defence forces, governments, airports, energy infrastructure operators, and other organisations have a genuine need to improve security.

As drone technology continues to develop, counter-drone technology may become a more important part of modern security systems.

I think that creates a long-term opportunity.

Why I think the next decade could be exciting

DroneShield is still a relatively young growth company, which means the investment case is very different from owning an established blue-chip business.

The company needs to keep winning contracts, scaling production, improving its technology, and turning demand into sustainable earnings.

But I think the opportunity comes from the size of the market it is entering. Defence technology has historically been dominated by large companies with decades of experience. DroneShield represents a different type of opportunity, where software, artificial intelligence, sensors, and electronic systems are becoming increasingly important.

Modern defence is changing. The companies that can provide practical solutions quickly may have significant opportunities as governments and organisations adapt to new threats.

The path will not be smooth

A 10-year investment in DroneShield would require patience.

Growth companies can experience sharp share price movements. Investor expectations can move quickly, contract timing can change, and the market may regularly question whether future opportunities are already reflected in the valuation.

Execution will be critical. DroneShield needs to continue proving that it can move from promising technology to a large, profitable global business.

That process will likely include setbacks. However, I think long-term investors should focus on the company’s ability to build a valuable position in an expanding market.

Foolish takeaway

The reason I find DroneShield shares interesting is that the company is targeting a problem with increasing importance.

It does not need every possible defence opportunity to succeed. It needs to become a trusted provider in a market where demand is likely to grow over many years.

If DroneShield can continue improving its technology, expanding its customer base, and executing well, I think the company has the potential to become a much larger defence technology business over the next 10 years.

The post Should I buy and hold DroneShield shares for 10 years? appeared first on The Motley Fool Australia.

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• Why did DroneShield shares crash 29% in June?
• Here are the top 10 ASX 200 shares today

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

Listed investment companies (LICs) trade on the ASX just like ordinary shares.

LICs typically invest in a diversified portfolio of assets, including shares, bonds, property, and other securities.

ASX LICs are run by professional managers who make judgment calls on what assets to invest in, and when to buy and sell them.

Their investment strategy may focus on a particular market sector, or type of stock, like ASX growth shares or value shares.

The market’s largest LIC is Australian Foundation Investment Co Ltd (ASX: AFI).

AFIC’s investment style is to buy shares and hold them for the medium to long term.

Argo Investments Ltd (ASX: ARG) is Australia’s oldest LIC and invests in a diversified group of ASX shares.

Argo describes itself as a “value-style investor with a bottom-up approach to investment analysis”. 

On The Bull, James Bills from Shaw and Partners explains his buy rating on two other ASX LICs today.

Let’s take a look.

L1 Long Short Fund Ltd (ASX: LSF)

The L1 Long Short Fund share price is $4.66 as of market close on Tuesday and is up 57% over 12 months.

Bills says:

LSF provides exposure to global long and short strategies managed by a well regarded investment team with a strong long term track record.

The fund’s flexible approach enables it to capitalise on rising and falling markets, which is particularly effective in volatile macroeconomic conditions.

Management’s meaningful co-investment aligns interests with investors, while the portfolio’s global positioning offers diversification beyond Australian financial markets.

Recent performance has demonstrated resilience, with the fund continuing to offer an attractive blend of growth potential and income generation within a diversified portfolio.

Hearts and Minds Investments Ltd (ASX: HM1)

The Hearts and Minds Investments share price is $2.99 as of market close on Tuesday and is down 7% over 12 months.

Bills comments:

HM1 offers investors access to a concentrated portfolio of high conviction global equity ideas sourced from leading fund managers across the world.

The unique structure, combined with its philanthropic component, has attracted some of the industry’s top investors, enhancing the quality of stock selection.

The portfolio is tilted towards innovative, growth oriented companies with long term upside potential. It also pays a fully franked dividend. HM1 was recently trading at a discount to net tangible assets.

In our view, the company provides an appealing entry point for investors seeking exposure to global growth themes with strong management backing.

The post 2 ASX LICs to buy now: expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 ResMed Inc (ASX: RMD) share price is in focus as the company announces the $490 million sale of its MatrixCare business and plans to return capital to shareholders.

What did ResMed report?

• Entered into a definitive agreement to sell MatrixCare business for US$490 million in cash
• MatrixCare contributed approximately US$220 million in revenue and US$55 million in non-GAAP operating profit for FY26
• Proceeds to be used for an accelerated share repurchase program and general corporate purposes
• ResMed reaffirmed its guidance for FY26 margins, spending ratios, and planned share buybacks
• Recent Noctrix acquisition expected to add US$30 million in revenue but dilute FY27 EPS by around US$0.20

What else do investors need to know?

The sale is aligned with ResMed’s strategy to sharpen its focus on high-growth sleep, breathing, and connected care markets. The MatrixCare business, which serves over 15,000 care providers, will be acquired by Frazier Healthcare Partners, a healthcare-focused private equity firm.

ResMed and Frazier Healthcare Partners will enter into transition service agreements to support a smooth handover and offset costs in the first year after closing. ResMed aims to fully eliminate any remaining stranded costs over time.

What did ResMed management say?

Chairman and CEO Mick Farrell said:

Today’s announcement is about our disciplined approach to portfolio management and our commitment to driving long-term growth.

By focusing on areas where we see the greatest opportunity for sleep health innovation and impact, we are strengthening our ability to deliver life-changing health technologies, improve patient outcomes, and create value for our stakeholders. We are confident MatrixCare and its affiliated businesses will continue to support team members and drive growth under new ownership with a dedicated focus on the long-term care market.

What’s next for ResMed?

The MatrixCare transaction is expected to close in the first quarter of ResMed’s 2027 financial year, pending regulatory approvals. Proceeds from the sale will go towards a share buyback and general company purposes.

Looking ahead, ResMed expects its Residential Care Software segment to accelerate growth to high single digits in FY27, with improved operating leverage. The company will provide a detailed FY27 outlook during its next quarterly results in August 2026.

ResMed share price snapshot

Over the past year, ResMed shares have declined 20%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

View Original Announcement

The post ResMed’s $490m MatrixCare sale: What it means 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 positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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.

The S&P/ASX 200 Index (ASX: XJO) has provided solid returns over the ultra-long term, but there are some ASX shares that could outperform the ASX 200.

We’re going to look at two ASX shares that could deliver great returns in the year ahead.

A price target suggests where experts think the share price will go over the next 12 months. Let’s look at two where analysts are expecting the share price to rise by at least 50%. That’s not a guaranteed return of course, just a prediction.

Coronado Global Resources Inc (ASX: CRN)

Coronado Global Resources describes itself as a leading international producer of high-quality metallurgical coal, which is an important aspect in the production of steel. It currently has operations in both Australia and the US.

According to CMC Invest, there have been five analyst ratings on the business within the last three months. Of those, one is a buy, and four are hold ratings. However, given that the Coronado Global Resources share price has dropped by more than 50% in 2026 to date, analysts now seem to think the business is noticeably undervalued.

The average price target of those five analysts is 31 cents, implying a possible rise of around 80% within the next year, according to CMC Invest.

Coronado recently announced that it was selling its 100% interest of the Logan Mining Complex to Phoenix Coal.

This transaction is expected to help the company’s free cash flow by reducing ongoing care, maintenance and holding costs, eliminating reclamation and other future mine obligations, and allowing Coronado to focus capital allocation on its core metallurgical coal operations.

The ASX share is also going through a structural reset to boost cash flow including a mine optimisation plan for Curragh, an improvement of fleet productivity, underground optimisation for Mammoth, and contract resets and management.

WiseTech Global Ltd (ASX: WTC)

Another ASX share that could produce good returns is WiseTech, a software provider for the logistics, global trade and supply chain industries worldwide.

It provides software for more than 22,000 logistics companies and other industry participants across 193 countries. Customers include 46 of the top 50 global third-party logistics providers and 23 of the 25 largest freight forwarders worldwide.

According to CMC Invest, within the last three months, there have been 10 analyst ratings on the business, with nine buy ratings and one hold rating.

The average price target is $67.65, suggesting an increase of more than 70% from where it is at the time of writing.

It recently jumped after announcing that Raelene Murphy would become the company’s independent chair, while Richard White will focus on his role as chief innovation officer and remain as an executive director.

White said that recent media attention on him is creating an unnecessary distraction from the strength of the WiseTech business. He also denied the allegations in the media.

WiseTech also said it continues to focus its search for an additional independent non-executive director and on long-term executive succession planning.

While the e2open acquisition created some short-term financial headwinds for the statutory net profit, the company’s organic growth remains solid. HY26 organic revenue rose 7%, organic operating profit (EBITDA) grew 7%, operating cash flow rose 14% and free cash flow increased 24%.

If it continues growing its cash flow by double digits, it could go a long way to justify the analysts’ optimism about the business.

Of course, these aren’t the only two ASX shares with a compelling outlook to watch.

The post 2 ASX shares tipped to grow 50% or more in the next 12 months 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 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.

Looking for big returns? If you are, then it could be worth checking out the two ASX shares in this article.

That’s because analysts have just put buy ratings on them and are expecting upside of at least 20% from current levels.

Here’s what they are recommending:

Netwealth Group Ltd (ASX: NWL)

Bell Potter thinks this ASX share could be being undervalued by the market, especially after a strong quarterly update this week.

In response to its update, the broker has retained its buy rating and $30.00 price target on Netwealth’s shares. Based on its current share price of $24.43, this implies potential upside of over 20% for investors over the next 12 months.

Commenting on its recommendation, Bell Potter said:

NWL has provided an update across multiple fronts, highlights being the first material endorsement of its new private wealth and stockbroking solution, as well as long-term ambitions for the group. This includes more advanced net flow guardrails. We expect the conversation to move towards growth (and away from dissecting margins). The update sees net flows revised up, after delivering periods of $15B. We expect this will release doubts around governance, market volatility and proposed tax changes.

Our Buy rating is unchanged, and we upgrade our net flow estimates +8% FY27-29. Building in margin guidance prompts us to downgrade EPS -7%/-4% and we leave headroom on the FUA target. NWL is looking to replicate EPS growth. The mandate win is the first example of a catalyst, independent of any potential vendor attrition.

ResMed Inc. (ASX: RMD)

Morgans highlights that this sleep disorder treatment company’s shares have de-rated to their lowest PE ratio since the GFC.

As a result, the broker believes a buying opportunity has opened up and has put a buy rating and $41.72 price target on its shares. Based on its current share price of $31.44, this implies potential upside of approximately 33%.

Commenting on ResMed shares and its buy thesis, Morgans said:

RMD has de-rated to ~16x forward earnings, its lowest valuation since the post-GFC period, despite consensus continuing to forecast double-digit EPS growth. GLP-1 therapies, positive Phase III data from Apnimed’s oral OSA therapy, the prospect of Philips re-entering the US PAP market from 2027 and broader healthcare sector de-rating, have driven recent share price weakness.

While these risks are real, current industry data and RMD’s operating performance provide limited evidence of a material deterioration in underlying demand. We make no changes to FY26-28 forecasts or our A$41.72 target price. BUY.

The post Why these ASX shares could rise 20% to 30% appeared first on The Motley Fool Australia.

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

If I had $2,000 to invest in ASX growth shares this July, I would be looking for businesses where the long-term opportunity looks strong and the valuation is attractive.

Here are two ASX growth shares I think tick those boxes and would consider buying today.

Catapult Sports Ltd (ASX: CAT)

Catapult Sports is a growth share I think is much more interesting than the current share price suggests.

The company provides wearable technology, video analysis, and performance software used by professional sporting teams around the world. Its technology helps coaches and performance staff understand player workload, improve training programs, analyse tactics, and make better decisions around athlete management.

What I like about Catapult is that it solves a very specific problem. Elite sports teams are constantly looking for small advantages. A better understanding of player fatigue, a more effective training session, or improved tactical analysis can influence results.

That means the technology is not just a nice addition. It can become part of how teams operate.

I also think the long-term opportunity is larger than many investors realise. Professional sport is becoming increasingly data-driven across football, rugby, basketball, American football, cricket, and many other competitions. The best teams are looking for more information, not less. This could result in growing demand for Catapult’s products over the next decade.

The shares are down around 55% from their highs, which has clearly damaged investor confidence. But I think that creates an opportunity to look beyond the short-term sentiment and focus on the underlying business.

SiteMinder Ltd (ASX: SDR)

SiteMinder is another ASX growth share I think has an interesting long-term story.

The company provides technology that helps hotels manage their online presence, connect with booking channels, improve direct bookings, and manage their rooms more effectively.

I think this is a fascinating part of the travel industry because it focuses on the behind-the-scenes technology that makes bookings possible.

Hotels compete for customers every day. They need to manage pricing, availability, online channels, and customer relationships across an increasingly digital environment. SiteMinder helps simplify that process.

What I like about the company is that it sits in the middle of a major industry shift. Travel has become more technology-driven, and accommodation providers need better tools to compete.

The artificial intelligence opportunity is also interesting. As hotels look for more automation and smarter ways to manage demand, software platforms that can provide better insights and efficiency could become increasingly valuable.

The shares are down around 50% from their 52-week high, and the business still needs to prove it can deliver sustainable profitable growth. But I think the long-term opportunity remains attractive. The hotel industry is huge, and the technology behind every booking is becoming more important.

Foolish takeaway

I think Catapult and SiteMinder are two examples of growth companies where the market may be focused more on the present than the future.

Both businesses are still building their stories, and execution will remain important.

But I like companies that solve real problems in growing industries. Catapult is helping professional teams make better decisions, while SiteMinder is helping accommodation providers compete in a more digital world.

Those are the types of growth opportunities I would be happy to own for the long term.

The post 2 ASX growth shares down 50%+ that I’d buy with $2,000 in July 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 Catapult Sports and SiteMinder. The Motley Fool Australia has positions in and has recommended Catapult Sports and SiteMinder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Universal Store Holdings Ltd (ASX: UNI) share price has seen plenty of volatility over the past year, as the chart below shows. I think it has already demonstrated it’s one of Australia’s top retail shares, and it still has significant growth potential.

Universal Store is not one of the most famous retailers on the ASX, but it’s quickly growing into an impressive force in the space.

It owns a portfolio of premium youth fashion brands, including Universal Store and Perfect Stranger and CTC (trading under THRILLS and Worship). The company operates 121 physical stores across Australia.

There are a few reasons why it looks like one of Australia’s top shares to consider for the next few years.

Solid revenue growth with great outlook

The last few years have been a tough retail environment for many operators, but Universal Store has managed to deliver strong top-line growth over the past five years.

FY26 looks like another year of strong growth for the business, particularly for its two core brands.

Its latest trading update showed group retail sales in the first 43 weeks of FY26 grew 14%, with Universal Store sales growth of 11.8% and Perfect Stranger sales growth of 39.8%. Universal Store’s like-for-like sales growth was 8.5%, and Perfect Stranger’s LFL sales growth was 12.9%.

The LFL sales growth shows the existing store network is performing strongly, while new stores are also adding significant growth for the brands. For example, Perfect Stranger currently has a store network of 26 locations and has opened seven new stores in FY26.

To be counted as one of Australia’s top shares, I think a business needs to demonstrate solid revenue growth. It ticks this box.

Rising profit margins

The business has a strong track record of growing profit margins, meaning its bottom line is rising faster than the top line. Net profit growth is essential because it’s what investors usually value a business on, and profit generation funds dividends.

For example, in the FY26 half-year results, group sales grew 14.2%, the gross profit margin increased by 150 basis points (1.50%) to 62.1%, and the underlying net profit grew by 22%.

Profit margins are expected to rise again in FY26, according to the company’s guidance. Based on the midpoint of its guidance, FY26 sales are projected to rise 11.5%, and underlying operating profit (EBITA) could grow by 15.4%.

I think rising profit margins are a key factor that helps an ASX share deliver strong shareholder returns.

Compelling shareholder metrics

The investor metrics the company trades at remain very attractive, in my opinion.

According to the projections on CMC Invest, the Universal Store is trading at less than 15x FY26’s estimated earnings, with a potential grossed-up dividend yield of 7.8%, including franking credits.

In my view, the business is undervalued and it could be a very good buy after dropping 18% since March 2026, making it one of Australia’s top shares.

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

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

Owning Westpac Banking Corp (ASX: WBC) shares has been a typical ASX blue-chip share pick for investors seeking passive income.

The ASX bank share typically trades on a relatively low price/earnings (P/E) ratio valuation and has a fairly generous dividend payout ratio.

Westpac has a lot of competition in the banking space. There are numerous ASX-listed competitors, and plenty more not listed on the ASX. Some of the largest ASX-listed banking competitors are Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Macquarie Group Ltd (ASX: MQG), Bank of Queensland Ltd (ASX: BOQ), MyState Ltd (ASX: MYS), Bendigo and Adelaide Bank Ltd (ASX: BEN) and Pepper Money Ltd (ASX: PPM).

Even though there is all of that competition, the bank still makes billions of net profit each year, which helps fund the company’s solid dividend.

For an investor who wants $10,000 of annual passive income, let’s take a look at what level of passive income Westpac is projected to pay in FY26.

ASX bank share dividend forecast

Westpac’s financial year ends in September, so we have just passed the three-quarters mark of the 2026 financial year. It will be a few months until the annual report is revealed and show what the profit figures are.

Until we know for sure what the numbers are, we can refer to what analysts have forecast the ASX bank share may be able to deliver.

According to the projection on Commsec, the ASX bank share could pay an annual dividend per Westpac share of $1.54 in FY26.

At the time of writing, that translates into a dividend yield of 4.3%, excluding franking credits.

That means, to generate $10,000 of annual passive income from Westpac in FY26, an investor would need 6,494 Westpac shares to receive that much in dividends.

Excitingly for shareholders, the bank is projected to see a 0.6% rise in its dividend per share to $1.55 in FY27.

If we focus on the forecast amount, an investor would only need 6,452 Westpac shares for $10,000 of annual passive income, excluding franking credits.

Is this a good time to invest in Westpac shares?

There are a lot of competitors that want to take market share from Westpac. It’s normal to see margins under pressure when there are challengers wanting to grow, such as Macquarie. It’s possible that Westpac’s margins could decrease in the coming years, as well as its market share, given how rapidly Macquarie is growing.

According to Commsec’s collation of analyst opinions on the business, there are currently no buy ratings, seven hold ratings and nine sell ratings.

It seems analysts are pessimistic about the ASX bank share’s future prospects right now, but I think there are opportunities out there today that could grow earnings over the the long-term.

The post How many Westpac shares do I need to buy for $10,000 of passive income? 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 Bendigo And Adelaide Bank. The Motley Fool Australia 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.

History is on the side of ASX shares right now.

July ranks as the second-best month for ASX shares, rising approximately 72% of the time since 1980. Both July and August historically form the strongest two-month period of the entire calendar year.

The first week of FY27 has already reflected that pattern.

ASX shares are marginally up as gold stocks surged and new financial year institutional flows rotated into beaten-down FY26 laggards. Healthcare, discretionary, and materials all led the charge.

The question for investors is whether that momentum can continue, and which specific stocks are best positioned to carry it.

Why July tends to deliver for ASX shares

The July seasonality effect has a few drivers.

Tax-loss selling in May and June pushes weaker stocks lower ahead of the financial year-end, as investors crystallise capital losses to offset gains made elsewhere.

Once the new financial year begins, that selling pressure on ASX shares evaporates and often reverses, as institutional investors rebalance their portfolios and rotate into undervalued names.

AMP chief economist Dr Shane Oliver has confirmed that the typical pattern is for ASX shares to strengthen from October through to July, followed by weakness through September.

That seasonal pattern has been borne out in the first week of FY27. Healthcare and materials are already rebounding sharply from their FY26 lows.

BHP: the materials recovery story

BHP Group Ltd (ASX: BHP) was one of the ASX’s great FY26 performers, skyrocketing 62% to close FY26 at $59.40 and hitting a record high of $65.98 in June.

Morgan Stanley renewed its buy rating on BHP this week with a 12-month price target of $67.50, implying more than 10% upside from current levels into FY27.

The copper supercycle thesis that drove BHP’s FY26 outperformance has not changed heading into FY27.

AI data centre construction, electric vehicle adoption, and grid infrastructure investment continue to drive copper demand at a pace that supply cannot easily match.

CSL: the FY26 dog becoming FY27’s darling

CSL Ltd (ASX: CSL) was one of FY26’s most painful stories, falling 52% to finish the year at $114.74.

However, the first weeks of July have been more positive.

CSL has rallied more than 30% off its 3 June low. The stock has recovered the entirety of its May selloff in this reversal.

The buying looks increasingly like institutional reallocation at the start of FY27, with investors rotating into so-called FY26 “dog” names in the expectation they become FY27’s darlings.

CSL’s FY26 full-year result, due 19 August 2026, will be the real test of whether the recovery has genuine earnings support or is purely sentiment-driven.

Morgans retains a buy rating with a price target of $147.59, implying significant further upside even after the recent bounce.

Goodman Group: the AI infrastructure compounder

Goodman Group (ASX: GMG) offers a different angle on the July thesis.

While BHP captures the materials recovery and CSL captures the healthcare rotation, Goodman captures the structural, multi-year AI infrastructure buildout.

Data centres now make up 73% of Goodman’s development pipeline. This development pipeline is on track to reach $18 billion by June 2026, with a 6.4 gigawatt global power bank that competitors cannot easily replicate.

Both Morgans and UBS carry price targets around $36, implying meaningful upside from current levels.

The risk: seasonality is a guide, not a guarantee

AMP’s Dr Shane Oliver has cautioned that seasonal patterns can be overwhelmed by contrary fundamental forces when they are strong enough.

The RBA’s signalling of further rate hikes remains a potential headwind for rate-sensitive names including Goodman.

CSL’s recovery depends on the August result delivering earnings support, not just sentiment reversal.

And BHP’s copper thesis could be tested if Chinese industrial demand data disappoints through the month.

Foolish takeaway for ASX shares

July is historically the ASX’s second-best month, rising 72% of the time since 1980.

The first week of FY27 has already reflected that seasonal pattern, with healthcare, materials, and discretionary all surging.

BHP, CSL, and Goodman each offer a different and complementary way to participate in what the seasonal data, the early FY27 evidence, suggests could be a strong month for Australian shares.

The post July is historically one of the best months for ASX shares. Can July FY27 deliver? appeared first on The Motley Fool Australia.

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

For investors looking for ASX 200 stocks with solid upside, Develop Global Ltd (ASX: DVP) and Netwealth Group Ltd (ASX: NWL) are two options to consider.

While these ASX shares have performed very differently in 2026, Bell Potter sees similar upside moving forward. 

Here’s what the broker is tipping over the next 12 months. 

Develop Global Ltd (ASX: DVP)

Develop Global is an Australia-based resources company that operates a unique hybrid business model centred on decarbonisation and energy transition.

In 2026, its share price has risen over 32% on the back of strong sector wide tailwinds. 

A new report from Bell Potter suggests this rise can continue in the next year. 

Bell Potter raised its outlook for Develop Global because copper and zinc prices are stronger than expected, although silver prices are a little weaker.

It expects the Woodlawn project to have its first full quarter operating at commercial production levels, with a chance of producing even more than planned as the mine continues to improve. 

Higher-grade ore is also expected to be mined over the next year, which should increase copper production.

The broker also expects DVP to benefit from unusually low treatment and refining charges, meaning the company keeps more of the value from the copper it produces. Overall, these factors should support stronger earnings.

The broker has reiterated its buy recommendation and increased its price target to $7.20. 

From yesterday’s closing price, this indicates 20% upside for Develop Global shares. 

FY27 marks a transformational year for DVP as ramping Woodlaw and Pioneer Dome production, and copper, zinc, and spodumene DSO price leverage demonstrate an inflection in FCF and rapid earnings growth.

Netwealth Group Ltd (ASX: NWL)

Netwealth shares have also attracted a buy recommendation from Bell Potter this week. 

Its share price jumped 6% yesterday on a key announcement, and the broker expects this rise can continue after a tough start to 2026. 

In yesterday’s report, Bell Potter said the company has announced an agreement with Morgan Stanley Wealth, seen as a multiyear outcome, and flagged further (smaller) wins to come from the segment. 

We expect this will unravel over the next year or so, comments suggesting there are maybe two more wins on the cards. NWL has an existing relationship with the firm, and this this extends the integration. The deal will add flexible execution and build in sponsored ASX listed and domestic investments.

Bell Potter has retained its $30 price target on Netwealth shares, which indicates a 23% upside from current levels. 

The post Broker tips 20% and 23% upside for these 2 ASX stocks 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 positions in and has recommended Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.