Category: Stock Market

The ASX dividend share end of the market is a great place to hunt for opportunities that offer compelling passive income. The recent Federal budget changes make capital gains a little less appealing than they were before, compared to dividends. Large dividend yields could be a solution.

Businesses with extremely high dividend yields aren’t necessarily the best choices because they could be less reliable or not grow the payout as much as a business with a lower payout, simply because they’re keeping more money to invest for growth.

I’m not expecting significant growth of the following two names, but they have demonstrated a track record of dividend stability and long-term payout growth.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is a listed investment company (LIC) operated by Wilson Asset Management.

The portfolio is focused towards S&P/ASX 200 Index (ASX: XJO) shares, which are the biggest, strongest and most resilient businesses that have strong market positions and good margins. It’s important to note that this is not a passive, index-following portfolio but an active one that buys and sells shares as valuation appeal changes.

Between its inception in May 2016 to May 2026, the WAM Leaders portfolio has returned an average of 12% (before fees, expenses and taxes), outperforming the 9.1% average annual return of the S&P/ASX 200 Accumulation Index (ASX: XJOA).

That level of investment return – which is not guaranteed to continue – has helped the business increase its annual payout every year since FY17. The increases have been small in the last few years because the yield is already so large.

The guided dividend amount for FY26 is 9.6 cents per share, which translates into a grossed-up dividend yield of 10.4%, including franking credits, at the time of writing.

I think the business has a good profit reserve to continue paying the current dividend for the foreseeable future.

Hearts and Minds Investments Ltd (ASX: HM1)

Hearts and Minds is another ASX share with a large dividend yield.

It’s a LIC that aims to provide a concentrated portfolio of between 25 and 35 global shares based on the highest-conviction ideas from well-regarded fund managers. There are no management fees, and instead, money is donated to leading Australian medical research organisations.

Close to a third of the portfolio is decided by picks from investment professionals from an annual investment conference. Core, ongoing, portfolio managers decide a greater share of the portfolio.

Since its inception in November 2018, the LIC’s portfolio has returned an average of 10.25% after expenses and before Australian taxes.

Its dividend has steadily increased since FY23, and it plans to continue to increase its half-year payout by 0.5 cents every six months.

It plans to pay an annual dividend per share of 19.5 cents in FY26, which translates into a grossed-up dividend yield of 9.8%, though the next 12 months of payments are likely to be a yield of 10.4%, including franking credits.

The business is trading at a discount of around 20% to its pre-tax net tangible assets (NTA), so it looks like great value to me right now.

The post 2 ASX shares with dividend yields above 9% appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Hearts And Minds Investments. 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.

It has been a remarkable 12 months for some of the big ASX mining stocks.

PLS Group Ltd (ASX: PLS), Liontown Resources Ltd (ASX: LTR), and Mineral Resources Ltd (ASX: MIN) have all delivered triple-digit gains over the past year, making them among the strongest-performing ASX mining stocks.

However, momentum has cooled recently. All three lithium stocks have retreated over the past month as lithium prices pulled back.

That’s hardly surprising. The lithium carbonate price surged approximately 155% over the past year, helping fuel the sector’s rally. But with prices falling around 14% over the past month, investors are reassessing how much upside remains.

So, what comes next for these ASX mining stocks?

PLS Group

PLS Group shares have surged 356% over the past 12 months but have slipped 10% to $5.66 in the past four weeks.

The rally wasn’t driven solely by higher lithium prices. The $18 billion ASX mining stock also delivered strong operational growth.

During its first-half result, PLS reported a 47% increase in revenue to $624 million, supported by higher realised lithium prices and increased sales volumes.

Underlying EBITDA jumped 241% to $253 million, while EBITDA margins expanded to 41%, up from 17% a year earlier.

The company’s flagship Pilgangoora operation remains one of the world’s largest hard-rock lithium assets and provides significant scale advantages.

The key risk remains lithium prices. If the recent weakness continues, earnings could come under pressure despite strong operational performance.

Liontown Resources

Liontown Resources has gained 185% over the past year but has fallen 18% over the past month to $1.90.

Investors have been attracted to the company’s rapidly growing Kathleen Valley project, which is emerging as one of Australia’s most significant lithium operations.

In its half-year results, Liontown reported a 70% increase in lithium production to 192,514 dry metric tonnes and revenue more than doubled. It rose 107% to $207.5 million.

The company’s growth profile remains compelling as production ramps up and operational efficiencies improve.

However, Liontown remains highly exposed to lithium market conditions. Any prolonged decline in lithium prices could weigh on profitability and the price of the ASX mining stock.

Mineral Resources

Mineral Resources shares have climbed 213% over the past 12 months despite falling 7% in the past month to $65.86.

Unlike PLS Group and Liontown, Mineral Resources offers greater diversification through its mining services, iron ore, and lithium operations.

The company recently delivered its strongest half-year result on record. Supported by stronger lithium demand and a standout performance from its Onslow Iron project, Mineral Resources reported EBITDA of $1.2 billion and record revenue of $3.1 billion.

The Onslow Iron operation has become a major growth driver and reduces the company’s reliance on lithium alone.

That said, commodity prices remain a key risk. Weakness in either lithium or iron ore markets could affect earnings and investor confidence in this ASX mining stock.

What now for the ASX mining stocks?

The recent pullback highlights how closely lithium stocks remain tied to commodity prices.

Yet the fundamentals behind these businesses remain strong. Production is growing, revenues are increasing, and key projects continue to ramp up.

If lithium prices stabilise or resume their upward trend, these ASX mining stocks could regain momentum. But investors should expect continued volatility as the market weighs strong company performance against an uncertain commodity outlook.

The post These ASX mining stocks soared 185%+, then tumbled. What now? appeared first on The Motley Fool Australia.

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• Liontown shares crash 18% in a month: What happened?
• PLS shares drop 5%: What’s driving the move?
• Mineral Resources shares slide as CEO uncertainty weighs in
• Why Humm, Metcash, PLS, and WiseTech shares are sinking today
• Top brokers name 3 ASX shares to buy next week

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 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.

I think some of the best ASX 200 growth shares are businesses that solve important problems for customers.

They may not always have the loudest stories on the market, but they can become more valuable by building better products, winning larger customers, and becoming harder to replace over time.

These are two ASX 200 shares I would consider buying for powerful long-term growth.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of the ASX 200’s best tech shares, in my opinion.

The company provides enterprise software to councils, government departments, universities, and other large organisations. Its products help customers manage things such as finance, payroll, property and rating, student systems, and other core operations.

This is not glamorous software, and that is what I like about it.

Large organisations need systems that work. They need reliability, security, compliance, reporting, and support. Once software is built into daily operations, changing providers can be disruptive and costly.

That gives TechnologyOne a strong position with customers.

I also like the company’s long-running shift to software-as-a-service. Recurring revenue can make the business more predictable, and cloud-based products can support ongoing upgrades and stronger customer relationships.

The valuation is often demanding, so investors need to be sensible about price. But I think TechnologyOne has the rare combination of a focused market, strong execution, and a long runway beyond Australia.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is another ASX 200 share where highly specialised work can be the powerful part.

The company provides medical imaging software through its Visage platform. Hospitals and radiology networks need technology that can handle huge imaging files, support fast workflows, and help doctors access the information they need.

This is a serious job.

Medical imaging is central to diagnosis and treatment. As scans become more detailed and healthcare systems become more digital, software quality becomes increasingly important.

Pro Medicus has built a strong reputation in this specialist area. Its contracts can be large, long term, and strategically important to customers.

What I like is that the company is selling into a market where performance is important. Hospitals and healthcare groups are not buying software because it sounds fashionable. They need tools that improve speed, usability, and reliability in clinical settings.

The risk, again, is valuation. Pro Medicus often trades at a premium because the market already recognises its quality. But I think exceptional software businesses can keep surprising investors if they continue winning important customers and expanding their role inside large markets.

Foolish takeaway

What I like about TechnologyOne and Pro Medicus is that both companies sell software into areas where reliability, speed, and product quality really count.

That gives them a useful kind of growth profile. Their customers are not buying a passing trend, they are using systems that help run important operations, whether that is a council, a university, a hospital, or a radiology network.

If these companies keep improving their products and winning larger customers, I think they can become even more valuable over time. That is why both ASX 200 shares would be on my buy list for long-term growth.

The post 2 ASX 200 shares I’d buy for powerful growth appeared first on The Motley Fool Australia.

More reading

• 3 buy-rated ASX tech shares with bright futures
• US chip stocks were smashed overnight. So why are ASX tech shares rising?
• Down 16%: What on earth is going on with TechnologyOne shares?
• 5 ASX growth shares I want in my portfolio in FY27
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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 Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) fought hard and finished the day with a decent gain. The benchmark index rose 0.25% to 8,808.4 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to edge higher

It looks set to be a mildly positive session for Australian investors on Thursday after a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 9 points or 0.1% higher this morning. In the United States, the Dow Jones was up 0.35%, but the S&P 500 fell 0.1% and the Nasdaq tumbled 0.45%.

Buy Ioneer shares

Ioneer Ltd (ASX: INR) shares could be undervalued according to Bell Potter. In response to news of non-binding letters of intent with South Korean entities, the broker has retained its speculative buy rating on the ASX lithium stock with an improved price target of 40 cents. This is more than double its current share price. It said: “Rhyolite Ridge is strategically important as a fully permitted, near-term and US-located source of lithium and boron supply. Both lithium and boron are USGS-designated critical minerals. […]  Lithium markets have recently strengthened, and we expect continued growth in underlying demand and limited new sources of supply will support lithium chemicals prices over the medium to long term.”

Oil prices sink

It could be a poor session for ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) after oil prices sank again overnight. According to Bloomberg, the WTI crude oil price is down 4.6% to US$69.82 a barrel and the Brent crude oil price is down 5.15% to US$73.11 a barrel. This was driven by reports that tankers are successfully transiting through the Strait of Hormuz.

BHP and Rio Tinto shares on watch

BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares could have a poor session on Thursday after their NYSE-listed shares dropped on Wall Street overnight. BHP shares were down almost 2% and Rio Tinto shares were down over 1.5%. This may have been driven by a pullback in commodity prices. This includes a 2.6% decline in the copper price to US$5.99 per pound.

Gold price tumbles

It could be a difficult session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price tumbled overnight. According to CNBC, the gold futures price is down 3.35% to US$4,010.3 an ounce. The gold price hit a seven-month low on rising US interest rate hike bets.

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

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• New to ASX shares? Avoid these 3 beginner mistakes
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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX dividend stocks remain a favourite for income-focused investors looking to generate steady passive income while still participating in long-term capital growth.

That income stream can also act as a useful buffer during periods of share market volatility, which remains a key theme right now as markets continue to fluctuate.

With that in mind, two of the ASX’s most established defensive dividend payers stand out today. They offer reliable cash flows, essential infrastructure exposure, and long track records of shareholder returns.

Let’s take a closer look.

APA Group (ASX: APA)

APA Group is one of Australia’s most important energy infrastructure businesses.

It owns and operates a vast portfolio of gas, electricity, solar, and wind assets across the country, including pipelines, storage facilities, and gas-fired power stations. In fact, APA transports more than half of Australia’s natural gas through its network.

That scale and essential service exposure make APA a classic defensive ASX dividend stock. Demand for energy infrastructure remains relatively stable through economic cycles, and much of APA’s revenue is underpinned by long-term, often inflation-linked contracts.

This structure helps smooth earnings and supports consistent income for shareholders.

APA has paid regular distributions for close to two decades, reflecting the reliability of its infrastructure-based earnings model.

The company typically pays two distributions per year and most recently paid an interim distribution of 27.5 cents per security. It is guiding to a full-year FY26 distribution of 58 cents per security.

At current levels, this equates to a forward yield of around 5.6%, making it an attractive option for income investors seeking stability and yield.

Transurban Group (ASX: TCL)

Transurban Group is another high-quality defensive dividend stock that operates one of the largest urban toll road networks in the world.

The company owns and operates 22 toll road assets across Australia, the US, and Canada, including major motorways, tunnels, and bridges.

Its appeal lies in the essential nature of its assets. Even during economic downturns, people still need to travel for work, freight needs to move, and cities continue to function. That helps ensure relatively stable traffic volumes and resilient cash flow.

The ASX dividend stock also benefits from inflation-linked pricing mechanisms on many of its roads, allowing it to increase tolls annually in line with inflation. That provides a natural hedge in higher price environments.

The company paid an interim distribution of 34 cents per share in February and has guided to a full-year FY26 distribution of 69 cents per share.

At current levels, that represents a forward yield of approximately 4.6%, reinforcing its appeal as a dependable income generator.

Foolish takeaway

Together, APA Group and Transurban offer investors exposure to essential infrastructure assets with long-term contracted or regulated revenue streams.

They may not be the most exciting growth stories on the ASX, but for investors seeking steady income and defensive characteristics, these ASX dividend stocks remain two of the market’s most reliable dividend payers.

The post $5,000 buys 194 shares in these 2 top ASX dividend stocks 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 Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Some ASX shares spend long periods in the market’s bad books.

That can be frustrating for existing shareholders, but it can also create opportunities for patient investors. When expectations are already low, a business does not need perfection to improve the investment case. It may only need steadier execution, better confidence, or a clearer path to growth.

Here are two ASX shares I would consider buying before sentiment improves.

CSL Ltd (ASX: CSL)

CSL is one share I think investors may come back to over time.

The healthcare giant has been through a difficult period, and confidence is lower than it once was. But I still think the core business has plenty of value.

CSL operates in markets that are difficult to enter and require deep expertise, global scale, regulatory experience, and long relationships with healthcare providers. Plasma therapies, vaccines, and other specialist healthcare products are not areas where new competitors can simply arrive and quickly take market share.

What interests me now is the reset in expectations. CSL no longer needs to be viewed as a perfect compounder to be a worthwhile investment. A period of steadier margins, better execution, and clearer earnings growth could be enough to change the conversation.

The business still needs to deliver, of course. But I think the market may be underestimating how valuable CSL’s global healthcare infrastructure remains.

Zip Co Ltd (ASX: ZIP)

Zip is a very different idea. This is a higher-risk growth share, but I think it has become more interesting as the business has matured.

The old buy now, pay later excitement has faded. That may be a good thing. Zip is now being judged more on earnings, credit quality, operating discipline, and whether it can build a sustainable payments business.

I like that shift. A company that can grow while controlling risk has a much better chance of creating long-term value than one chasing volume at any cost. Zip still needs to prove that its model can keep scaling profitably, especially in large markets such as the United States.

But if management keeps improving credit settings, customer quality, and operating leverage, I think the upside could be meaningful.

Zip remains speculative compared with a blue-chip share. Still, I think it is the kind of stock that can move quickly if the market starts to believe the earnings story has changed.

Foolish takeaway

Buying before sentiment improves is uncomfortable by nature.

The easier moment usually comes later, after the share price has already started to recover and the story sounds cleaner. That is why I think shares like CSL and Zip are worth watching closely now.

Both businesses have something to prove, but both also have a credible path to becoming more valuable if execution improves. That is the kind of setup I like when looking for opportunities.

The post Why I’d buy CSL and Zip shares before they recover 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.

This ASX healthcare stock has become one of the biggest success stories on the ASX.

4DMedical Ltd (ASX: 4DX) has surged 26% over the past five trading days, climbed 37% in the past month, and rocketed an astonishing 1,900% over the past year.

The remarkable rally has now caught the attention of one of the world’s largest investment firms. Let’s take a look at who it is and why it has purchased millions of 4DMedical shares.

Sizeable new stake

According to an ASX update released on Wednesday, JP Morgan Chase & Co. (NYSE: JPM) has acquired more than 31 million shares in 4DMedical, giving it a stake of approximately 6.3% in the company.

The move suggests the investment giant sees potential in a business that is rapidly emerging as a major player in healthcare imaging technology.

It’s not hard to see why investor interest in the ASX healthcare stock has surged.

Intersection AI and medical imaging

4DMedical develops advanced respiratory imaging technology that allows clinicians to assess lung function in ways traditional imaging methods cannot.

Its proprietary software and artificial intelligence tools create detailed functional images of the lungs, helping doctors diagnose and manage respiratory conditions more effectively.

As healthcare providers increasingly adopt AI-powered diagnostic tools, 4DMedical is positioning itself at the intersection of two powerful long-term growth trends: medical imaging and artificial intelligence.

Recent company announcements have only strengthened that investment case.

Expanding globally

One of the company’s biggest recent moves was its acquisition of Austrian AI imaging company Contextflow.

The deal immediately expands 4DMedical’s European footprint and adds lung cancer screening capabilities. It also provides access to existing reimbursement arrangements in Germany.

Management of the ASX healthcare stock believes the acquisition could increase the company’s addressable market by around 50%, significantly expanding its long-term growth opportunity.

For investors, it represents another step in transforming 4DMedical from an emerging Australian healthcare company into a global imaging technology business.

Making progress in the US

The company has also been gaining traction in the world’s largest healthcare market.

Recently, 4DMedical announced a major agreement with SimonMed. This is one of the largest outpatient imaging providers in the US, with more than 170 imaging centres.

The partnership supports the rollout of the company’s CT:VQ lung imaging technology. It provides access to a large network of healthcare providers and potential patients.

Earlier this month, management also launched its CLEAR clinical program targeting acute pulmonary embolism.

Importantly, the ASX healthcare stock believes this initiative could expand the US addressable market for CT:VQ to approximately US$3 billion. This highlights the scale of the opportunity if adoption continues to grow.

Raised expectations

Despite the excitement, investors should remember that expectations are now much higher than they were a year ago.

After a 1,900% gain, the market is increasingly focused on execution. The ASX healthcare stock must continue converting clinical success into commercial adoption. It also needs to grow revenue, expand reimbursement coverage, and successfully integrate its European operations.

Any slowdown in adoption or commercial progress could lead to heightened volatility.

Even so, JP Morgan’s new stake suggests at least one major institutional investor believes the growth story still has room to run. For shareholders, that vote of confidence is unlikely to go unnoticed.

The post This ASX healthcare stock is up 1,900%. One top fundie wants more appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today
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• Healthcare shares led the ASX 200 last week. Is a sector comeback underway?
• Here are the top 10 ASX 200 shares today

JPMorgan Chase is an advertising partner of Motley Fool Money. 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 JPMorgan Chase. 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.

Starting out in the share market can feel straightforward: buy a few popular ASX shares like BHP Group Ltd (ASX: BHP) and CSL Ltd (ASX: CSL), wait, and watch wealth grow. In reality, many new investors fall into avoidable traps that can hurt long-term returns.

The good news is that most of these mistakes are behavioural rather than technical. Once identified, they are relatively easy to fix. Here are three of the most common investing mistakes beginners still make.

1. Trying to time the market

One of the biggest mistakes new investors in ASX shares make is trying to predict short-term market movements.

It often starts with good intentions. Investors see headlines about falling markets and decide to “wait for a better entry point.” Or they sell during periods of volatility, hoping to buy back later at a lower price.

The problem is that timing the market consistently is extremely difficult, even for professionals. Markets tend to recover quickly, and missing just a handful of strong trading days can significantly reduce long-term returns.

A more effective approach is time in the market rather than timing the market. Regular investing, regardless of short-term noise, helps smooth out volatility over time.

2. Chasing hot stocks and trends

Another common mistake is buying ASX shares purely because they have recently surged.

This often happens during periods of market excitement. A stock doubles, gets attention on social media, and suddenly feels “safe” because everyone is talking about it.

But strong recent performance does not guarantee future returns. In many cases, the best part of the rally has already passed by the time retail investors enter.

Chasing momentum can also lead to concentration risk, where portfolios become overly exposed to a small number of high-flying growth stocks.

A more balanced approach focuses on business quality, earnings growth, and valuation rather than recent price action.

3. Ignoring diversification

Many beginners also underestimate the importance of diversification.

It is common for new investors to hold just a few ASX shares, often in sectors such as banking, mining, or technology. While this can work in strong markets, it creates significant risk if one sector underperforms.

Diversification helps reduce the impact of any single company or industry on overall portfolio performance. It can be achieved across sectors, geographies, and even asset classes.

Exchange-traded funds (ETFs) are among the simplest ways to achieve diversification without having to pick individual stocks. Broad-market ETFs provide exposure to hundreds of companies in a single investment.

Foolish takeaway

Most investing mistakes do not come from complex errors. They come from behaviour: reacting emotionally, chasing performance, and underestimating risk.

By focusing on long-term investing, prioritising quality businesses, and maintaining diversification, beginners can avoid many of the pitfalls that derail returns early on.

Investing does not need to be complicated, but it does require discipline.

The post New to ASX shares? Avoid these 3 beginner mistakes appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why I’d buy CSL and Zip shares before they recover
• Are Fortescue shares a strong buy or a value trap?
• Down 54%: What should I do with my CSL shares now?
• There are still some well-priced ASX dividend shares. Here’s where to look

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

ASX tech names Xero Ltd (ASX: XRO) and WiseTech Global Ltd (ASX: WTC) exploded yesterday. 

WiseTech shares rose 14% yesterday while Xero shares rose 8%, making them two of the top performers on the ASX. 

Both companies were heavily impacted over the last year by AI takeover fears, with SaaS companies hit hard. 

Investors who have held these tech shares through 60%+ losses over the last 12 months will be hoping this marks the beginning of a long-term recovery. 

Why did Xero and WiseTech shares jump yesterday?

There are a couple of factors that might have impacted WiseTech shares yesterday. 

After falling 20% across Monday and Tuesday, it’s possible investors were simply buying the dip on this battered tech stock. 

However it may have also been influenced by the company’s response to recent media reports involving founder Richard White.

Meanwhile for Xero shares, investors are likely searching for value options after it once again received positive guidance from the team at Citi. 

What’s next?

These ASX tech shares now appear at a crossroads. 

The bull case for WiseTech shares is based on its position as a leading global logistics software provider. 

Its CargoWise platform benefits from high customer switching costs, recurring revenue, and long-term growth in global trade digitalisation. 

However, it appears right now the most important factor is regaining investor confidence after allegations against its CEO. 

Meanwhile, for Xero shares, the bull case centres around its strong market position in cloud accounting software, recurring subscription revenue, high customer retention, and continued growth opportunities in international markets. 

The bear case is that its valuation relies on sustained growth, making the stock vulnerable to slower subscriber growth, stronger competition, economic weakness, or delays in improving profitability.

What are experts saying about Xero and WiseTech shares?

Despite very real concerns, experts seem to believe both stocks are trading at attractive valuations.

WiseTech shares closed yesterday at $32.86 each. 

However, the team at Ord Minnett see this as a serious discount. 

The broker has a recent price target of $60 on WiseTech shares along with a retained buy recommendation. 

This indicates an upside potential of 82%. 

Meanwhile, for Xero shares, the team at Citi recently reaffirmed its buy rating and $113.60 price target on the cloud accounting platform provider’s shares.

Based on yesterday’s closing price of $70.31, this indicates 61% upside potential. 

The post Is the tech recovery finally here for Xero and Wisetech shares? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
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• Why Benz Mining, Collins Foods, WiseTech, and Xero shares are shooting higher today
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Motley Fool contributor Aaron Bell has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX healthcare share Telix Pharmaceuticals Ltd (ASX: TLX) continued its strong run on Wednesday, rising 8% to $15.73.

Telix is now up 18% over the past month and 40% in 2026, although it remains down 36% over the past 12 months.

After a difficult year, investor sentiment has clearly improved. Here are three reasons the rally may still have further to run.

A powerful competitive moat

The ASX healthcare share operates in one of the most specialised areas of healthcare: radiopharmaceuticals.

These products combine radioactive isotopes with targeted therapies and diagnostics, helping doctors detect and treat diseases such as cancer with greater precision.

Importantly, this is not an industry that newcomers can easily enter.

Developing radiopharmaceuticals requires specialised expertise, manufacturing capabilities, regulatory approvals, and distribution networks that are expensive and difficult to replicate. Those barriers create a strong moat and help protect established players such as Telix from potential competitors.

As the market for precision medicine continues to expand, that competitive advantage could become increasingly valuable.

Momentum is building

The company has delivered a steady stream of positive developments in recent months.

In late February, Telix secured a key regulatory approval filing in Europe, marking an important step in expanding its commercial footprint beyond existing markets.

Momentum continued into April when the company announced that the US Food and Drug Administration had accepted its New Drug Application for TLX101-Px (Pixclara®). The acceptance represents a significant regulatory milestone and moves the product closer to potential commercialisation.

Telix also revealed a major collaboration with US biotechnology giant Regeneron Pharmaceuticals, strengthening confidence in its long-term growth strategy and pipeline potential.

Investors appear to be responding positively to the increasing number of catalysts emerging across the business.

Strong growth outlook

Telix’s financial performance continues to support the bullish investment case.

In April, the company reported first-quarter 2026 group revenue of US$230 million, representing an 11% increase on the previous quarter and a 23.7% rise compared to the prior corresponding period.

Management of the ASX healthcare share continues to guide to FY2026 revenue of US$950 million to US$970 million, supported by growth in its Precision Medicine business and contributions from its radiopharmacy operations.

The company also expects to invest between US$200 million and US$240 million in research and development this year.

That investment is helping advance multiple late-stage clinical programs and upcoming regulatory milestones across the pipeline.

Management also estimates its Precision Medicine and Therapeutics portfolio addresses a potential US$32 billion market opportunity in the United States alone, highlighting the scale of the growth runway ahead.

Analysts remain bullish

Market experts continue to see significant upside.

According to TradingView data, the majority of analysts covering the ASX healthcare share rate it as a strong buy. The most optimistic price target is $31.64, implying approximately 101% upside from current levels.

Morgans is also positive on the stock, with a $24.33 price target. That suggests upside of roughly 55%.

The broker recently noted that increasing consolidation across the healthcare sector could generate additional interest in Telix shares.

The post 3 reasons to buy this recovering ASX healthcare share 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 Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.