Category: Stock Market

As Aussies submit their end-of-financial-year (EOFY) tax returns, some may be looking to invest their returns to generate returns.

EOFY is often when investors revisit existing positions and look for opportunities the market may have overlooked.

A new report from VanEck has highlighted a sector that is largely being overlooked – international small-caps.

International small caps remain attractively valued despite improving earnings and manufacturing activity, making them an overlooked EOFY investing opportunity.

Trading below historical averages

According to the report, despite signs that economic conditions are proving more resilient than expected, international small caps remain one of the few areas of global equity markets trading below historical valuation averages.

The recent Federal Reserve meeting reinforced this view, suggesting the backdrop may not be as weak as many investors had anticipated.

For investors reviewing portfolios ahead of EOFY, that disconnect between improving fundamentals and cautious valuations may be worth paying attention to.

Economy remains resilient

VanEck argues that while the US Federal Reserve’s more hawkish stance has led markets to expect interest rates to remain higher for longer, the broader economic backdrop is becoming increasingly supportive for international small-cap companies.

A resilient labour market, improving hiring intentions, and a return to expansion in US manufacturing activity suggest a reflationary environment that has historically supported stronger earnings growth and outperformance among quality small caps.

As economic activity and corporate earnings improve, VanEck believes current small-cap valuations may present an attractive investment opportunity.

While the macro environment may be supportive, the most compelling reason for investing in this space may lie in where valuations are at.

International small caps are one of the few major equity asset classes still trading below their long-term average valuation levels.

Earnings beginning to respond

According to VanEck, one of the more encouraging signs for small-cap investors is that earnings expectations are starting to improve.

Forward earnings forecasts for global small companies have begun accelerating after an extended period of weakness.

Historically, this has been an important signal, with improvements in earnings expectations often accompanied by stronger small-cap performance.

How to gain exposure to quality small-caps

For those looking to turn their tax return into a growth opportunity, one ASX ETF to consider is the VanEck Msci International Small Companies Quality ETF (ASX: QSML).

It provides exposure to 150 of the world’s highest quality international small companies, selected using a disciplined framework focused on high return on equity, earnings stability and low financial leverage.

This approach seeks to capture the growth potential of small companies while maintaining a focus on businesses with stronger fundamentals.

 

 

The post Looking to target high upside shares with your tax return? Here’s where VanEck sees opportunity 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.

ASX 200 healthcare shares are up 23% in just over a month as value investors plough funds into beaten-down stocks like CSL Ltd (ASX: CSL) and Pro Medicus Ltd (ASX: PME).

The healthcare sector appeared to turn on 3 June when the S&P/ASX 200 Health Care Index (ASX: XHJ) hit a 9-year low following a 39% fall over 12 months. 

Many headwinds were at play for the healthcare sector in FY26.

They included the weaker US dollar; cost of living pressures; higher shipping and labour costs, and US regulatory uncertainty for the biotechs. 

Several major players in the healthcare sector lost significant market valuation in FY26.

They included Cochlear Ltd (ASX: COH) shares, down 59%, and CSL shares, down 52%

Resmed CDI (ASX: RMD) shares also fell 27%, and the Sonic Healthcare Ltd (ASX: SHL) share price dropped 22%. 

However, things seemed to have changed on 3 June.

ASX 200 healthcare shares have ripped 23% since then in a rapid rebound that has caught many investors by surprise.

Here are two ASX 200 healthcare shares that Bell Potter has speculative buy ratings on for FY27. 

4DMedical Ltd (ASX: 4DX)

This 4DMedical share price was in a league of its own in FY26, and the best performer of the entire ASX 200 for capital growth.

The ASX 200 healthcare share skyrocketed 1,786% in FY26 to close out the year at $4.53. Since the healthcare sector turned on 3 June, 4DMedical shares have gained 15%. 

The respiratory imaging technology company gained US Food and Drug Administration (FDA) approval for its CT:VQ product in September 2025. 

CT:VQ is the world’s first non‑contrast post‑processing technology that transforms routine chest CTs into quantitative, lobar ventilation (V) and perfusion (Q) maps.

Since approval, the technology has been deployed at several renowned academic hospitals and clinics.

Bell Potter has a speculative buy rating on 4DMedical shares.

Last week, the broker raised its 12-month target price from $4.50 to $6. This suggests more than 35% upside ahead. 

In a note, the broker discussed 4DMedical’s launch of CLEAR (Contrast-free Lung Evaluation for Acute Risk in pulmonary embolism (P/E)).

CLEAR is a clinical evidence program designed to fast-track CT:VQ into the US$2.5 billion acute PE market in the US.

Pulmonary embolism is a major acute cardiovascular condition.

The broker said:

The CLEAR study is essential to accelerate adoption of CTVQ in front line emergency departments and for inpatient use.

The broker added:

4D Medical is not required to seek further FDA approval or a label expansion to the current 510K approval, however, the clinical data from the CLEAR study will provide the necessary evidence to further support broad adoption for diagnosis of PE.

Mesoblast Ltd (ASX: MSB) 

The Mesoblast share price rose by a very respectable 18% in FY26 to finish at $1.96 on 30 June. 

Bell Potter reiterated its speculative buy rating last week with an unchanged target of $4.45. 

This implies the Mesoblast share price could more than double over the next 12 months. 

The broker said: 

The key overhang on the stock remains clinical trial risk with three massive valuation events over the next 18 months being adult GvHD, back pain and the BLA approval for the first indication in HF.

None of these are priced in.

Looking ahead, the broker said:

The recent clinical trial fail by Cynata and its MSC in adult GvHD highlights yet again the risks involved in drug development.

MSB will shortly enrol the first of 180 patients in its randomised, controlled, double blind label expansion study for Ryoncil, also in adult GvHD, albeit with risk of failure mitigated by numerous factors.

These factors include a tried and tested potency assay, more aggressive dose (up to 300% higher than the Cynata product) and a 2nd line patient population that has progressed following steroid therapy.

The post 2 ASX 200 healthcare shares to buy after sector rebounds 23% in a month 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 positions in and has recommended CSL and Cochlear. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended CSL, Cochlear, Pro Medicus, and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woolworths Group Ltd (ASX: WOW) shares have enjoyed a strong year of outperformance in 2026.

On Monday afternoon, shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant were swapping hands for $39.16 apiece. That sees the share price up an impressive 33.1% year to date, smashing the 1.1% gains delivered by the benchmark index over this same time.

Atop those capital gains, Woolies stock is also popular with passive income investors for the company’s fully franked dividend payouts.

If you owned Woolworths shares at market close on 24 February, you would have received the fully franked 45 cents per share interim dividend on 16 April. (The stock traded ex-dividend on 25 February.)

But with the ASX 200 stock having surged since plumbing multi-year closing lows in October, is it still a good buy for passive income today?

Should I buy Woolworths shares for passive income?

Shaw and Partners’ James Bills recently ran his slide rule over Woolies stock (courtesy of The Bull). And he expressed concerns over rising costs and competition in the sector.

“Woolworths is facing increasing competitive pressure in the supermarket sector, along with possible margin compression driven by higher operating and supply chain costs,” he said.

“While the share price has made a notable recovery since October 2025, the outlook is challenging given increasing cost of living pressures among price sensitive shoppers,” Bills added.

And following on the strong share price gains, Bills didn’t sound particularly enthusiastic about the stock’s passive income status, with Woolies now trading on a 2.3% fully franked trailing dividend yield.

Summarising his sell recommendation on Woolworths shares, he concluded, “With a relatively modest dividend yield and limited short-term catalysts, it may be prudent to reduce exposure and redeploy capital into opportunities with stronger growth prospects.”

And he offered another ASX passive income share investors may wish to consider instead.

This ASX passive income share has a 6.2% dividend yield

While recommending selling Woolworths shares, Bills issued a buy recommendation on listed investment company (LIC) Hearts and Minds Investments Ltd (ASX: HM1).

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

With the LIC not charging investment fees and instead donating to Australian medical research organisations, Bills added, “The unique structure, combined with its philanthropic component, has attracted some of the industry’s top investors, enhancing the quality of stock selection.”

On the passive income front, he said, “The portfolio is tilted towards innovative, growth-oriented companies with long-term upside potential. It also pays a fully franked dividend.”

At Monday’s intraday share price of $3.01, Hearts and Minds shares trade on a 6.2% fully franked trailing dividend yield.

Summarising his buy recommendation on the ASX dividend share, Bills concluded:

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 Up 33%, are Woolworths shares still a good buy for passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.

Investors buy ASX 200 stocks for their reliable track record and long-term potential. Sometimes they are perceived as having lower returns and lower volatility.

However, that isn’t always the case. 

Occasionally, after heavy sell-offs, these quality companies can present significant upside. 

Right now, two that fit that criteria are PEXA Group Ltd (ASX: PXA) and Netwealth Group Ltd (ASX: NWL). 

Both ASX 200 stocks have fallen significantly over the last 12 months and are now drawing very positive ratings from brokers. 

Experts are tipping these ASX 200 shares to rebound more than 100% in the next year. 

Here’s what brokers are saying. 

PEXA Group Ltd (ASX: PXA)

PEXA provides a digital conveyancing platform for real estate settlements in Australia. The company touts itself as offering world-first technology that facilitates near real-time tracking of settlements and faster clearance of funds.

The company derives its revenue by charging fees to conduct property transactions over its network. Its digital process is recognised in the industry as speeding settlements, reducing the risk of manual errors, and alleviating settlement delays.

Over the past 12 months, its share price has fallen almost 32%. 

It closed trading yesterday at approximately $8.73 per share. 

However a new note out of the team at Macquarie indicates now could be the time for savvy investors to buy in at a bargain price. 

The broker said property settlements in New South Wales rose 3.1% in June from the corresponding period a year earlier, rebounding after a soft May.

Macquarie lifted its price target on the company to $19.30 from $19.05. 

From yesterday’s closing price, this indicates an upside potential of 121%. 

Netwealth Group Ltd (ASX: NWL)

Netwealth Group is another ASX 200 stock investors should be monitoring. It is a financial services and technology company that provides a wide range of products and services to the Australian financial investment industry, including cloud-based investment administration software-as-a-service (SaaS), a retail superannuation fund, and an administration business.

In the last 12 months, this ASX 200 stock has fallen 34%. 

It closed trading yesterday at $22.89 per share. 

However, the team at Bell Potter is optimistic this will rise in the next 12 months. 

The broker has retained its buy rating and $30.00 price target on Netwealth’s shares. 

This indicates 31% upside potential for this ASX 200 stock. 

Bell Potter said this ASX 200 stock is well positioned ahead of its 16 July trading update, with the June quarter’s strong rebound in global equity markets expected to drive a material uplift in funds under administration through positive market movements. 

The broker said Netwealth offers the strongest and most direct leverage to rising markets among the platform providers it covers, reinforcing its positive view on the stock.

 

The post 2 ASX 200 stocks that could rise 31% and 121% 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 Macquarie Group, Netwealth Group, and PEXA Group. The Motley Fool Australia has positions in and has recommended Netwealth Group and PEXA Group. 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.

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index edged 0.15% lower to 8,831 points.

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

ASX 200 to edge lower

The Australian share market looks set for a subdued session on Tuesday despite a positive start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% lower. In the United States, the Dow Jones rose 0.3%, the S&P 500 climbed 0.75%, and the Nasdaq stormed 1.1% higher.

Buy Genesis Minerals shares

Genesis Minerals Ltd (ASX: GMD) shares are good value according to Bell Potter. This morning, in response to a binding merger proposal with Vault Minerals Ltd (ASX: VAU), the broker has retained its buy rating on the gold miner’s shares with a trimmed price target of $9.75. It said: “The Proposed Scheme is not subject to due diligence or financing conditions and offers a materially better strategic and financial outcome than the status quo, in our view. We retain our Buy rating and lower our price target to A$9.75, on account of the recent Magnetic Resources Limited transaction completion (A$639m). The Proposed Scheme has not been incorporated pending resolution of the RRL matching right.”

Oil prices edge higher

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a positive session after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.05% to US$68.73 a barrel and the Brent crude oil price is up 0.05% to US$72.15 a barrel. This is despite OPEC announcing plans to boost its output.

Gold price charges higher

It could be a good session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price charged higher overnight. According to CNBC, the gold futures price is up 1.2% to US$4,175.7 an ounce. Easing interest rate hike expectations boosted the precious metal.

Qantas shares on watch

Qantas Airways Ltd (ASX: QAN) shares will be worth watching on Tuesday after UK airline easyJet received a US$7.3 billion takeover offer from U.S. private equity manager Castlelake. This represents a forward multiple of approximately 16.5x estimated 2027 earnings. Qantas shares are currently trading at a deep discount of around 10x estimated FY 2027 earnings.

The post 5 things to watch on the ASX 200 on Tuesday 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.

ASX healthcare shares are showing renewed momentum, with two of the sector’s biggest names staging notable rebounds in recent weeks. At the time of writing, both CSL Ltd (ASX: CSL) and ResMed Inc (ASX: RMD) are trading higher. 

CSL shares have been one of the standout movers in the sector. The stock is up around 7% over the past five trading days and 34% over the past month, reflecting a sharp improvement in sentiment after a brutal sell-off. Despite this recovery, CSL remains heavily out of favour on a longer horizon, still down 28% year to date and nearly 49% over the past 12 months.

ResMed has also begun to recover, although its rebound has been more gradual. The ASX healthcare share is up about 10% over the past five trading days and 13% over the past month. Even so, it remains down 14% year to date and roughly 21% over the past year, leaving it well below its recent highs.

Now, the key question for investors is whether this marks the start of a sustained recovery or just a short-term bounce.

CSL: sentiment improves, but challenges remain

Earnings downgrades, acquisition concerns and a broader reset in market expectations drove the sharp decline in CSL shares. This led to a significant de-rating as investors reassessed what was once considered one of the ASX’s most reliable compounders.

The underlying business remains strong. CSL maintains its position as one of the world’s largest plasma-derived therapies companies. However, the market is now focused on whether management can restore consistent earnings momentum. Particularly as supply constraints and pricing dynamics continue to weigh on performance in key markets.

Morgans continues to support the stock. It retains a buy rating on the $58 billion ASX healthcare share with a price target of $147.59. This points to a 19% upside at current price levels.

The broker notes that the long-term story remains intact. However, a sustained recovery in sentiment may take several quarters to fully materialise as investors wait for clearer evidence in the numbers.

ResMed: growth remains intact despite volatility

The price weakness of the $44 billion ASX healthcare share has been driven more by valuation compression than by any meaningful deterioration in business performance. Broader concerns around healthcare growth stocks have also weighed on sentiment, contributing to the stock’s decline over the past year.

Despite this, the company’s fundamentals remain solid. In Q3 FY26, ResMed reported revenue rising 11% to US$1.43 billion, while non-GAAP earnings per share were up 21% to US$2.86.

Even after its recent rebound, ResMed remains at its lowest valuation level in more than a decade. It’s trading on approximately 16 times forward earnings despite expectations for double-digit earnings per share growth.

Morgans has retained a buy rating with a price target of $41.72, implying around 36% upside from current levels. The broker highlights that the current valuation may underestimate the company’s long-term growth potential.

The post 2 ASX healthcare shares crashing, now bouncing: buy, hold or sell? 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 CSL and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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.

For retirees looking to complement their superannuation with quality investments, there are several factors to consider. 

Dividend stocks are a fantastic option because they provide passive income that can supplement retirement savings while offering the potential for long-term capital growth. 

Companies with a strong history of paying consistent, and ideally increasing, dividends can provide a reliable income stream, although it’s important to remember that dividends are not guaranteed and share prices can fluctuate. 

Another important consideration is the impact of inflation.

Many retirees will need to live off superannuation for more than 20 or 30 years, and inflation can eat into the purchasing power of their savings over time. 

Investments that have the potential to deliver returns above the rate of inflation can help preserve wealth and maintain living standards throughout retirement. 

Building a diversified portfolio that includes growth assets alongside income-producing investments can provide a balance between protecting capital and ensuring retirement savings continue to work over the long term.

Here are five options to consider that stretch across growth and income assets to compliment your superannuation. 

Dividend stocks to consider 

For retirees looking to target dividend stocks, one great option is Telstra Group Ltd (ASX: TLS). 

It is often considered an attractive dividend stock for retirees because of its established market position, relatively stable cash flows, and history of paying consistent dividends. 

Its essential telecommunications services provide resilient earnings, making it a popular choice for investors seeking reliable income alongside the potential for modest long-term capital growth.

Another dividend stock with a strong reputation is BHP Group Ltd (ASX: BHP). 

It is a popular dividend stock for retirees because of its strong balance sheet, global leadership in mining, and history of returning a significant portion of profits to shareholders through dividends. 

While dividend payments can fluctuate with commodity prices, BHP’s exposure to essential resources such as iron ore and copper provides the potential for attractive income and long-term growth.

Finally, income investors might also target Macquarie Group Ltd (ASX: MQG). 

While its dividend may be more cyclical than those of traditional defensive companies, Macquarie’s exposure to infrastructure, asset management, and renewable energy provides both income potential and opportunities for long-term capital growth.

Growth shares to consider 

While passive income is important, it isn’t the entire story for a healthy compliment to your superannuation. 

For investors looking to outpace inflation during retirements, two great ASX ETFs to consider are: 

• BetaShares Nasdaq 100 ETF (ASX: NDQ)
• Vanguard Diversified High Growth Index ETF (ASX: VDHG)

These ASX ETFs focus on strong long-term growth potential. 

This makes them both an attractive option for retirees seeking capital appreciation to help offset the effects of inflation.

They also offer broad international diversification helps reduce single-market risk while providing long-term growth potential.

The post 5 of the best investments on the ASX right now to complement your superannuation appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BHP Group and BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF and Macquarie Group. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF and Telstra Group. The Motley Fool Australia has recommended BHP Group and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Artificial intelligence has produced a long list of buzzy stock ideas. Most of them sit in the United States.

But the infrastructure AI actually runs on, the data centres, the power grids, the networks, is being built right here in Australia.

Three ASX AI stocks are capturing that opportunity in very different but equally compelling ways.

NextDC: where AI workloads live

NextDC Ltd (ASX: NXT) is Australia’s largest independent data centre operator, and the closest thing on the ASX to a direct, pure-play bet on AI infrastructure demand.

The numbers confirm the demand is real and accelerating.

Contracted utilisation surged 60% to 667MW in the March 2026 quarter alone. This was driven by massive contract wins as AI workloads requiring intensive computing power, storage, and connectivity flooded into NextDC’s facilities.

The company’s forward order book, combined with existing billing, is expected to generate contracted EBITDA in excess of A$1 billion. This is more than four times the midpoint of FY26 guidance, as that contracted capacity converts to revenue progressively from FY26 through FY30.

OpenAI, one of the world’s largest and best-funded AI companies, is the foundational customer for NextDC’s $7 billion AI data centre campus in Western Sydney. This relationship relationship validates both the strategic importance of Australian AI infrastructure and NextDC’s position within it.

The risks are equally visible.

$5 billion in FY27 capital expenditure means execution matters enormously given the large sums of capital invested.

Goodman Group: a surprise ASX AI infrastructure play

Goodman Group (ASX: GMG) is the landlord of the AI revolution.

Before a data centre can be built, someone needs to secure the land, obtain planning approvals, connect the power, and deliver the shell.

That is Goodman’s role, and it is an increasingly scarce and valuable one.

Data centres now make up 73% of Goodman’s development pipeline, which is on track to reach $18 billion by June 2026. The company possesses a global power bank of 6.4 gigawatts across 16 cities that took years to assemble and that no newcomer can replicate quickly.

This is Goodman’s competitive advantage.

Morgans has noted that industry data centre capital expenditure requirements likely exceed global capital market funding capacity. This statement describes a market where the constraint is not demand but the ability to build fast enough.

Consequently, Goodman is positioned on the supply side of that constraint, with secured power, sites, and locked-in capital partners already in place.

On the broker side, Morgans retains a buy rating on Goodman with a $36 price target, and UBS endorses Goodman’s outlook with a $36.41 price target.

Megaport: how AI workloads move

Megaport Ltd (ASX: MP1) has changed the most of the three over the past twelve months.

The company was already known as a network-as-a-service provider connecting businesses to cloud platforms.

But its acquisition of Latitude.sh pushed it deeper into the AI infrastructure stack by adding high-performance GPU, CPU, and storage capabilities alongside its core connectivity offering.

Subsequently, Megaport rose almost 50% in FY26, smashing the ASX 200’s 3% gain, as the market began to recognise it as an AI infrastructure contender rather than simply a cloud connectivity story.

$254 million in new AI contracts through Latitude.sh, generating $90.6 million in annualised recurring revenue, confirmed that AI demand is already flowing into the business.

CEO Michael Reid described the contract wins as evidence that

Megaport is becoming an essential platform for powering the applications of tomorrow.

The risks across all three ASX AI stocks

However, none of these three ASX AI stocks is without risk.

NextDC’s $5 billion FY27 capex plan means any slip in execution or AI demand would hit the stock hard.

Goodman’s premium valuation reflects how much the market has already priced into its data centre transition. This leaves little room for disappointment.

Megaport has to prove the Latitude.sh contracts convert into attractive returns over time, not just headline contract values.

Additionally, all three are also sensitive to interest rate movements given their capital-intensive operating models.

Foolish takeaway for ASX AI stocks

NextDC, Goodman, and Megaport each capture the AI infrastructure opportunity from a different angle.

NextDC provides the capacity. Goodman provides the land and power. Megaport provides the connectivity.

For investors who believe AI-driven infrastructure demand will keep accelerating, all three deserve a place on the watchlist.

The post The best AI stocks on the ASX right now 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 Goodman Group and Megaport. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares rose 2.77% and delivered total returns, including dividends, of 7% in FY26.  

On The Bull this week, Remo Greco from Sanlam Private Wealth shares his insights on three ASX 200 shares for FY27.  

Let’s take a look. 

Dexus Convenience Retail REIT (ASX: DXC) 

The Dexus Convenience Retail REIT fell 14.8% to finish at $2.59 per share on 30 June. 

Greco has a buy rating on this ASX real estate investment trust (REIT).

Greco said:

This real estate investment trust owns service stations and convenience retail assets, mostly on Australia’s eastern seaboard.

The fund’s portfolio was valued at about $760 million on December 31, 2025. The company was recently trading at a significant discount to net tangible assets (NTA) and was yielding about 8 per cent.

The trust has an attractive development pipeline, modest debt and recently increased its buy-back target. Importantly, the NTA is supported by recent asset sales of 1.5 per cent above valuation.

Recently announced capital gains tax changes make the company’s assets appealing to self managed super funds looking for reliable income generating assets.

DXC is a solid defensive play in the current environment.

BHP Group Ltd (ASX: BHP)

The BHP share price soared 62% to finish FY26 at $59.40 last Tuesday. 

Greco has a hold rating on the ASX 200 mining share for FY27. 

He said: 

Several disappointing events have led us to downgrade BHP to a hold.

Cost over-runs at its Jansen stage 2 potash project in Canada lifts the investment cost by about $US2 billion to $US6.9 billion. Possible industrial action, although averted in June, may re-ignite at the company’s iron ore operations in the Pilbara region of Western Australia.

Any industrial action may impact stock performance.

Longer term, we like BHP’s exposure to copper – the key metal of the future.

As reported in our best-performing commodities of FY26 article, the copper price rose by 18% while iron ore increased 7% over the year. 

Resmed CDI (ASX: RMD)

The Resmed share price fell 26.6% to $28.88 on 30 June amid a broader healthcare sector rout in FY26. 

Greco has a sell rating on this ASX 200 healthcare share, and commented: 

The company makes medical devices to treat sleep apnoea. The company lifted revenue by 11 per cent in the third quarter of financial year 2026 when compared to the prior corresponding period.

In my view, GLP-1 weight loss drugs may reduce the incidence of sleep apnoea.

ResMed’s share price has been volatile in the past 12 months as investors weighed up the company’s outlook in light of popular GLP-1 drugs.

The shares have risen from $25.84 on June 3 to trade at $29.37 on July 2.

It may be prudent to sell some shares prior to RMD’s full year result.

Resmed is due to release its 4Q FY26 results on 7 August. 

The post Buy, hold, sell: Dexus, Resmed, BHP shares appeared first on The Motley Fool Australia.

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• Down 22%! 3 reasons to buy the big dip in ResMed shares today
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Motley Fool contributor Bronwyn Allen has positions in BHP Group. 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 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.

S&P/ASX 200 Index (ASX: XJO) tech shares were smashed over a seven-month period between late August through to 30 March this year.

The downturn led to technology being the second-worst performer of the 11 market sectors in FY26.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) fell 37.22% and delivered total negative returns of 36.97%. 

Tech investors had much on their minds last financial year.  

Firstly, they became worried that high share price valuations and massive artificial intelligence (AI) investment in the US may create an AI bubble. 

Some experts likened the AI boom to the internet boom of the late 1990s. They warned that excessive investor enthusiasm could lead to a dot-com-style correction.

That fear spread throughout the sector quickly, with ASX 200 tech shares peaking in September and entering a bear market just two months later.

A bear market is defined as a 20% (or more) fall from the most recent high point.

There were also fears that AI may decimate software-as-a-service (SaaS) providers after Anthropic released a new legal plug-in for its agentic AI assistant, Claude, in early 2026. 

Within a week, shares in Thomson Reuters, whose SaaS platforms Westlaw and Practical Law serve legal professionals, had lost a fifth of its valuation. 

The SaaS concern hit ASX 200 tech shares hard given four of our six largest companies by market capitalisation are SaaS providers.

Wisetech shares weighed the sector down 

WiseTech Global Ltd (ASX: WTC), which was previously the market’s largest listed tech company, was also a significant drag on the sector in FY26. 

Investors were disappointed with Wisetech’s FY25 earnings, released in August, and governance issues became a big distraction. 

Wisetech went on to become the worst performer of the entire ASX 200 in FY26, dropping 70% in value. 

The company lost its status as the sector’s largest stock by market cap to Xero Ltd (ASX: XRO) in May. 

A strong turnaround for ASX 200 and US tech shares began on 31 March. Since then, ASX 200 tech shares have rebounded by almost 20%. 

Here are the three winners of the tech sector last financial year. 

1. Codan Ltd (ASX: CDA)

Electronics solutions provider Codan delivered the best capital growth among ASX 200 tech shares in FY26.

The Codan share price skyrocketed 119.49% to finish the year at $44.14.

Codan designs and manufactures electronics solutions, including communications equipment and metal detectors, for government, corporate, NGO, and consumer clients worldwide. 

The company reported a 55% increase in net profit after tax (NPAT) to $71.2 million for 1H FY26.

2. Megaport Ltd (ASX: MP1) 

Megaport provides cloud and data centre connectivity services through a global network-as-a-service (NaaS) platform.

The Megaport share price ripped 49.45% to finish FY26 at $21.58. 

In June, Megaport announced it had won four new AI infrastructure contracts worth $458.9 million.

The new work required significant capex, so Megaport ran a fully underwritten $827.3 million entitlement offer at $14.30 per share.

3. Data#3 Ltd (ASX: DTL)

Data#3 is an information and communications technology (ICT) provider. 

The Data#3 share price rose 29.43% to $9.85 on 30 June. 

Data#3 reported a 9% lift in gross sales to $1.54 billion for 1H FY26. Statutory revenue increased 8% to $423 million.

The NPAT was 3.7% higher at $23 million. 

The post ASX 200 tech shares tanked in FY26, but there were 3 winners appeared first on The Motley Fool Australia.

More reading

• Why did Megaport shares smash the ASX 200 in FY26?
• 10 of the best ASX shares to buy in FY 2027
• Top ASX 200 share of each market sector in FY26
• 7 ASX shares downgraded by brokers this week
• 3 ASX tech stocks tipped to rocket higher in FY27

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 positions in and has recommended Megaport, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Thomson Reuters. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Data#3. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.