Category: Stock Market

Last week was a tough week for GrainCorp Ltd (ASX: GNC) shares.

The agribusiness and grain handling giant saw its shares crash on Thursday following the release of its half-year results, extending its year-to-date decline.

The stock now sits well below where it traded this time last year.

So what went wrong, and is the damage done?

What the numbers showed

GrainCorp reported underlying EBITDA of $136 million for the six months to 31 March 2026, down 33% from $202 million in the prior corresponding period.

Underlying net profit after tax fell 52% to $33 million, while reported NPAT collapsed to just $5 million.

The Agribusiness division saw EBITDA drop 26% to $104 million, reflecting weaker conditions on Australia’s east coast.

Total grain handled came in at 26.5 million tonnes, down from 29.5 million tonnes a year ago, as a lower carry-in position and reduced grower selling activity weighed heavily on volumes and pushed export margins to multi-year lows.

The Nutrition and Energy segment also disappointed, with a $12 million EBITDA timing impact from derivative mark-to-markets dragging on the result, though management expects that to unwind in the second half.

What management said

GrainCorp CEO Robert Spurway did not sugarcoat the result.

He said:

GrainCorp’s 1H26 result reflects a disciplined performance in a challenging global grain market. Oversupply of grain and associated low pricing have compressed margins across the supply chain and reduced grower selling activity, limiting available volumes and increasing competition for grain brought to market. Against this backdrop, we are tightly focused on cost management, capital discipline and portfolio optimisation.

On a more positive note, Spurway confirmed minimal impact from the Middle East conflict, stating:

We have experienced minimal impact from the Middle East conflict to date, with our supply chain continuing to operate as normal.

What brokers think

Neither Bell Potter nor Morgans saw the result as a buying opportunity.

Bell Potter retained its hold rating and cut its price target to $5.90 from $6.80, warning that global production forecasts for 2026/27 remain elevated at around 2% above the five-year average, suggesting grain trading margins will stay tight.

Morgans also downgraded GrainCorp to a hold with a $5.62 price target, noting:

GNC’s 1H26 result was weak but broadly in line with consensus at the NPAT level. The era of special dividends now appears to be over.

Is there any good news?

GrainCorp reaffirmed its FY2026 earnings guidance of underlying EBITDA between $200 million and $240 million and underlying NPAT between $20 million and $50 million, implying a significantly stronger second half.

The board also declared a fully franked interim ordinary dividend of 14 cents per share, payable on 16 July 2026.

The balance sheet remains solid, with a core cash position of $163 million and an ongoing share buyback program that has deployed $38 million of its $75 million authorisation to date.

Weather across east coast Australia has been broadly supportive for the upcoming winter crop, with favourable soil moisture conditions across Victoria and southern New South Wales.

Foolish takeaway

GrainCorp is a cyclical business and this is clearly a down cycle.

With global grain oversupply showing little sign of easing and both major brokers sitting on hold ratings, investors may want to be patient.

However, patient investors with a contrarian mindset may see value at current prices for Graincorp shares.

The post Why GrainCorp shares sank 15% last week and what it means for investors appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: GrainCorp, Treasury Wine, and Xero shares
• 5 ASX shares downgraded by brokers this week
• Down 30%: Is this ASX 200 stock a buy after its crash?
• 5 things to watch on the ASX 200 on Friday
• Why Bapcor, Coles, Graincorp, and Xero shares are tumbling today

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 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 Technology One Ltd (ASX: TNE) share price is in focus after Australia’s largest SaaS ERP company delivered its 17th consecutive record first-half profit, with annual recurring revenue (ARR) jumping 17% and profit before tax up 9% for the half year ended 31 March 2026.

What did Technology One report?

• Profit before tax of $89.1 million, up 9% year-on-year
• Profit after tax of $66.8 million, up 6%
• Annual recurring revenue (ARR) of $598.0 million, up 17%
• Net revenue retention of 114%
• Record interim dividend of 8.0 cents per share, up 21%
• SaaS and recurring revenue of $299.2 million, up 13%

What else do investors need to know?

Technology One’s results reflect the strong momentum behind its SaaS+ strategy and recently launched AI products. The company saw significant growth in the UK (ARR up 23%) and strong wins across local government and education sectors, including major contracts with prominent Australian councils and universities.

Investment in research and development (R&D) increased 22% to $84.1 million, representing 26% of total income, as Technology One continues to innovate in AI and expand its product suite. Cash and investments rose 16% to $245.5 million, underpinning the company’s ongoing investment capability with no debt on the balance sheet.

What did Technology One management say?

Technology One CEO and Managing Director Ed Chung said:

There is huge momentum and confidence in the business today, in our strategy of SaaS+, which is fuelling the results we delivered today, and allows us to continue to invest into the future. Now with our AI strategy, the adoption of AI and the feedback we are receiving is surpassing our expectations. All of this also gives us confidence in our pipeline and we don’t guide up unless we see it day in and day out.

What’s next for Technology One?

The company reaffirmed upgraded FY26 guidance, targeting 18–20% profit growth and 16–18% ARR growth for the full year, with a goal of $1 billion+ ARR by FY30. Management confirmed guidance includes all current investments, such as AI, SaaS+ and new initiatives like Showcase.

With its transition to SaaS+ and continued rollout of next-generation AI ERP products, Technology One expects improved margins and sustained double-digit growth, focusing on expanding in both domestic and overseas markets, particularly local government and higher education.

Technology One share price snapshot

Over the past 12 months, Technology One shares have declined 13%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period. 

View Original Announcement

The post Technology One posts 17th consecutive record first-half profit, AI drives FY26 guidance appeared first on The Motley Fool Australia.

More reading

• Contact Energy reports April 2026 earnings
• 5 things to watch on the ASX 200 on Tuesday
• Why is the ASX 200 starting at a 7-week low today?
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: ResMed, Sigma, and TechnologyOne shares

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

Exchange traded funds (ETFs) can be a simple way to invest in powerful global trends.

Instead of trying to choose the winning company in a fast-moving sector, investors can use ETFs to spread their money across a group of businesses operating in the same space.

Here are three ASX ETFs for smart investors to take a closer look.

Betashares Global Cybersecurity ETF (ASX: HACK)

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

Cybersecurity has become one of the non-negotiable costs of doing business. Every company with customer data, cloud systems, online payments, or remote workers needs protection.

That makes this a spending category that is unlikely to disappear, even when economic conditions become more uncertain.

The Betashares Global Cybersecurity ETF provides exposure to global companies involved in cybersecurity software, hardware, and services. Its holdings include Zscaler (NASDAQ: ZS), Check Point Software Technologies (NASDAQ: CHKP), and Gen Digital (NASDAQ: GEN).

For investors wanting exposure to a technology theme with a clear real-world need, it could be an ETF to watch.

Global X Artificial Intelligence ETF (ASX: GXAI)

Another ASX ETF that could be worth looking at is the Global X Artificial Intelligence ETF.

Artificial intelligence is no longer just a story about chatbots or chip demand. It is becoming a layer of technology that can be built into software, healthcare, finance, manufacturing, logistics, and customer service.

The Global X Artificial Intelligence ETF gives investors access to companies that could benefit from the development and use of AI across different industries.

Its holdings include SK Hynix (NYSE: JNSB), Advanced Micro Devices (NASDAQ: AMD), and Broadcom (NASDAQ: AVGO).

This gives the fund exposure to the hardware that supports AI workloads, as well as the broader ecosystem developing around data processing and automation.

Overall, the Global X Artificial Intelligence ETF provides smart investors with a basket of companies positioned around one of the biggest technology shifts of the decade. It was recently recommended by analysts at Global X.

Global X Semiconductor ETF (ASX: SEMI)

A third ASX ETF worth considering is the Global X Semiconductor ETF.

Semiconductors sit underneath almost every major technology trend. Smartphones, electric vehicles, cloud computing, automation, gaming, defence systems, and artificial intelligence all need chips to function.

The Global X Semiconductor ETF provides exposure to global companies involved in semiconductor design, manufacturing, equipment, and related supply chains.

Its holdings include Taiwan Semiconductor Manufacturing Company (NYSE: TSM), ASML Holding (NASDAQ: ASML), and Qualcomm (NASDAQ: QCOM).

This gives investors access to different parts of the chip industry rather than relying on a single company or one part of the supply chain.

Demand can be cyclical, and the sector can be volatile. But over the long term, the world is becoming more chip-intensive. The Global X Semiconductor ETF offers a direct way to invest in that shift through the ASX. It was also recently recommended by the team at Global X.

The post Here are 3 ASX ETFs for smart investors to buy appeared first on The Motley Fool Australia.

More reading

• Why US earnings is good news for artificial intelligence ETFs: Expert
• 3 ASX ETFs for investors chasing long-term growth
• Why Aussie investors are pouring into international ASX ETFs
• 5 of the best ASX ETFs to buy and hold in 2026
• 3 ASX ETFs that have raced ahead this year

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, Advanced Micro Devices, BetaShares Global Cybersecurity ETF, Broadcom, Check Point Software Technologies, Qualcomm, Taiwan Semiconductor Manufacturing, and Zscaler. The Motley Fool Australia has recommended ASML and Advanced Micro Devices. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian Age Pension is one of the most generous in the world, though there are a few high-yield ASX dividend stocks I’d rather rely on for income, such as Telstra Group Ltd (ASX: TLS).

Some businesses look compelling to me as options because of their resilience and their ability to deliver passive income growth that outpaces inflation.

Telstra is best known as the leading telecommunications business in Australia with its mobile, broadband, enterprise and infrastructure divisions.

If we’re looking at the Age Pension in terms of an income target, it’s approximately $28,600 annually with the maximum basic rate for a single person.

With that goal in mind, let’s take a look at the potential dividend income from the high-yield ASX dividend stock that I want to point out.

Dividend projections

The most important metrics that investors may want to know relate to the dividend.

I’m going to look at analyst projections for Telstra for the 2026 financial year.

According to the projection on Commsec, the high-yield ASX dividend stock is forecast to pay an annual dividend per share of 21 cents per share in FY26.

If the company does pay that dividend, it would represent year-over-year growth of 10.5%, which I’d say is a very pleasing increase.

At the time of writing, the current Telstra share price could yield approximately 5.3%, including franking credits. In my view, that’s a great starting point, and the business could continue hiking its annual dividend for the foreseeable future.

Currently, the projection on CommSec implies the high-yield ASX dividend stock could grow its FY27 payout by another 2.4% to 21.5 cents per share.

I should note that the business could deliver its pleasing dividend while continuing to invest in its mobile network.

How many Telstra shares are needed?

To generate $28,600 of annual grossed-up dividend income (excluding franking credits) based on the FY26 annual dividend, an investor would need 136,191 Telstra shares.

That would be a major investment, so I’d really suggest investors not to put all of their portfolio money into Telstra shares. Diversification is an important element for a dividend portfolio.

Why I’d buy Telstra shares for passive income

Telstra is the clear market leader in Australia, and this gives the ASX dividend stock both a strong pull for new subscribers and the ability to raise prices that other Australian telcos are not able to do as easily.

Australia is becoming increasingly digital and many of these devices need an internet connection, which is a strong long-term tailwind. Australia’s growing population is another tailwind.

I think its track record this decade gives me confidence that the company will deliver more growth than the Age Pension over the rest of the decade.

The post 136,191 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

More reading

• Why these ASX income stocks could be better than term deposits
• How to generate $20,000 a year in passive income on the ASX
• How to build a passive income stream with ASX shares
• With no savings at 50, I’d follow Warren Buffett’s approach to build wealth
• CGT tax changes may encourage investors into ASX dividend shares: Expert

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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX tech stock Hub24 Ltd (ASX: HUB) started the week in the red, slipping 1% to $79.66.

That leaves the ASX tech stock down around 17% in 2026.

But while the sell-off may look ugly on the surface, the recent weakness appears driven more by macro fears and sector sentiment than company-specific problems.

And for long-term investors, that could create an interesting opportunity.

Caught in a sector sell-off

The broader technology sector has been under pressure as investors reassess valuations and try to understand how artificial intelligence (AI) could reshape competitive dynamics.

Growth shares have been hit particularly hard. That is not unusual during periods of uncertainty. Markets often sell first and ask questions later. Even high-quality ASX stocks can get caught in broad-based de-rating cycles.

Importantly, Hub24’s operational performance still looks strong. The ASX tech stock continues to benefit from structural growth as more financial advisers adopt its platform.

In its latest quarterly update, Hub24 reported net inflows of $4 billion. Total funds under administration climbed to $151.7 billion, up 22% year-on-year. Those are not the numbers of a business losing momentum.

Platform monogamy

The platform also continues to gain traction across the advice industry. More than 5,200 advisers now use Hub24, and industry trends appear to be working in its favour.

One of the biggest is platform consolidation. More advisers are moving toward “platform monogamy,” where they consolidate client assets onto a single provider rather than spreading them across multiple systems.

That trend could become a major tailwind for the ASX tech stock as advisers prioritise efficiency, integration, and scale.

Strong operational leverage

And there may be another powerful growth driver hiding beneath the surface. Platform businesses often benefit from strong operating leverage.

In simple terms, once fixed costs are covered, additional funds flowing onto the platform can generate higher incremental margins. That creates the potential for earnings growth to outpace revenue growth over time. That is one of the more interesting parts of the investment case right now.

The market may be focusing heavily on short-term sentiment, valuation concerns, and AI disruption fears. But internally, Hub24 could still be building a much stronger earnings engine as it scales.

AI uncertainty

The AI debate also deserves some perspective. Technology is evolving rapidly, and AI will almost certainly change parts of the financial services industry over time.

But Hub24 is not simply a basic software product. The ASX tech stock operates a deeply integrated ecosystem connecting advisers, clients, compliance, reporting, and investment administration.

Those ecosystems tend to be sticky. In fact, AI could potentially strengthen platforms like Hub24 rather than disrupt them. Automation and smarter tools may improve efficiency and client servicing without replacing the underlying platform infrastructure.

That distinction matters.

What do the experts think?

Analysts also appear increasingly optimistic despite the recent share price weakness.

According to TradingView data, most brokers currently rate Hub24 shares as a buy.

The average broker price target sits at $105.96, implying potential upside of roughly 33% from current levels. The most bullish target stands at $132.10, while the lowest target is $66.20.

Jarden is among the more positive brokers on the ASX fintech stock. It currently has a buy rating and a $115.30 price target on Hub24 shares.

The post Why this struggling ASX tech stock could surprise investors appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares that could be much bigger in 10 years
• 3 ASX mid-cap stocks that could be tomorrow’s big winners
• 3 high-quality ASX 200 shares for beginners to buy and hold
• 3 amazing ASX growth shares to buy in May with $20,000
• Generation Development Group completes $1.8bn client migration

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 Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Some ASX tech stocks have been hit hard over the past year.

In some cases, I think the sell-off has gone too far.

The two shares in this article are down almost 30% and almost 70% from their highs. Those are significant declines, and they show just how much sentiment has shifted.

But I do not think the long-term growth stories have disappeared.

For patient investors, this kind of share price weakness can create the chance to buy high-quality technology businesses at far more attractive prices than before.

Block Inc (ASX: XYZ)

Block is a much broader business than many investors may realise.

This ASX tech stock owns Cash App, Square, Afterpay, and a number of financial tools that connect consumers, sellers, payments, lending, and commerce.

I like Block because it sits on both sides of the transaction.

Cash App gives it a large consumer finance platform. Square gives it relationships with sellers. Afterpay gives it exposure to buy now, pay later and consumer lending. Put together, Block has the chance to build a more connected financial ecosystem than a traditional payments company.

The company is also leaning heavily into artificial intelligence (AI).

Block is using AI internally to improve engineering speed and product development, while also adding smarter tools into Cash App and Square. Its Moneybot and Managerbot products are designed to help customers and sellers identify useful actions, such as managing spending, spotting business cost changes, or improving financial habits.

That is where I think the long-term opportunity becomes interesting.

Block is not just trying to process payments. It is trying to make its platforms more useful, proactive, and embedded in daily financial decisions.

There are risks, of course. Lending growth needs to be managed carefully, competition is intense, and regulation is always worth watching in financial services.

But if Block keeps improving Cash App, Square, Afterpay, and its AI tools, I think the company could be far more valuable in the future.

The Block share price is down almost 30% from its high.

WiseTech Global Ltd (ASX: WTC)

WiseTech is another beaten-down ASX tech stock I would be happy to buy for the long term.

The company is building software for one of the most complicated parts of the global economy: trade and logistics.

That may not sound as exciting as consumer apps or artificial intelligence, but global trade is filled with complexity. Goods need to move across countries, ports, warehouses, customs systems, transport networks, and compliance regimes.

That complexity creates demand for specialist software.

WiseTech’s CargoWise platform already plays a key role for freight forwarders and logistics companies. The company serves more than 22,000 logistics companies and industry participants across 193 countries, including many of the world’s largest freight forwarders and third-party logistics providers.

I think that gives WiseTech a powerful starting point.

The company is also expanding beyond logistics through areas such as trade, supply chain, customs, trade finance, and verified identity and data. That could turn WiseTech into a much broader operating system for global trade.

AI could make that opportunity larger. Logistics involves a lot of manual data entry, document checking, compliance work, and exception management. If WiseTech can use AI to automate more of those tasks, its software could become even more valuable to customers.

The stock is not without risk. WiseTech has faced questions around valuation, acquisitions, leadership, and execution. But the market it serves is enormous, and its software is deeply tied to customer workflows.

The WiseTech share price is down almost 70% from its high.

Foolish Takeaway

Block and WiseTech face different questions, but both still have market positions that could become more valuable over time. 

One is building deeper financial relationships with consumers and sellers. The other is becoming more embedded in the systems that keep global trade moving.

Share price weakness does not remove the risks. But when quality tech businesses fall this far, I think long-term investors should at least be asking whether the market has become too pessimistic.

The post Why these ASX tech stocks could be no-brainer buys appeared first on The Motley Fool Australia.

More reading

• 3 ASX stocks that could win big from the AI infrastructure boom
• Buy, hold, sell: James Hardie, NextDC, and WiseTech shares
• 3 excellent ASX ETFs to buy and hold for 10 years
• 3 ASX tech shares I’d buy with $20,000
• 4 ASX 200 shares tipped to climb 75% to 126% higher

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 Block and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Whitehaven Coal Ltd (ASX: WHC) share price has been one of the better performers within the S&P/ASX 200 Index (ASX: XJO) in the last 12 months.

It’s understandable that ASX coal shares have not been popular investments in the last few years because of environmental concerns.

But, it’s hard to ignore the fact that coal has been an excellent investment in the past year.

In the past year, the Whitehaven Coal share price has risen around 50%, meaning $10,000 is now worth approximately $15,000, at the time of writing.

A company’s latest result usually has the most material impact on its valuation. But, for a mining business, the commodity price can also be crucial.

Let’s look at what has helped the Whitehaven Coal Ltd (ASX: WHC) share price in recent times.

Stronger commodity price

The business reported that in the three months to 31 March 2026, it saw both metallurgical and thermal coal prices improve, with the prices up 18% and 11% respectively, quarter-on-quarter.

The price of the commodity is particularly important for a miner because of the operating leverage that the business has. Operating costs don’t typically change much month to month, so any increase in the resource price that boosts revenue dollars largely falls straight to the bottom line, aside from paying more to the government.

Whitehaven explained what’s driving the coal prices in the short-term:

The PLV HCC Index strengthened through the quarter reflecting tighter supply due to wet-season disruptions in Queensland, highlighting the current finely balanced market conditions for metallurgical coal.

The gC NEWC Index also appreciated in the quarter reflecting geopolitical developments in the Middle East from late February. Tightening LNG supply and the potential of gas‑to‑coal switching by end users underpinned the March increase in the gC NEWC Index. Energy markets remain volatile during this period of uncertainty. Whitehaven’s NSW thermal portfolio is well positioned to benefit from upward movements in the gC NEWC index.

It also gave some thoughts on the longer-term outlook too:

The expected structural shortfall in global metallurgical coal production, particularly the long-term depletion of HCC from Australian producers combined with increased seaborne demand from India, is anticipated to drive higher metallurgical coal prices over the long-term. Whitehaven’s metallurgical coal portfolio is expected to benefit from these supply constrained market dynamics.

Long-term demand for seaborne high CV thermal coal, together with a structural supply shortfall from underinvestment in new mines and depletion of existing supply, remains a driver for longer-term price support for high CV thermal coal. In developing economies, thermal coal continues to play a critical role in delivering affordable and reliable access to electricity. This focus on energy security is expected to further support long-term demand for high-quality thermal coal. Disruptions are likely to continue to impact supply across the global energy complex for a period following cessation of Middle East tensions.

I’d also suggest that if energy demand by data centres continues to grow, a certain portion of it may end up being fulfilled by coal.

Higher production

It’s also worth noting that the company’s production of coal is increasing compared to the previous financial year.

In the financial year to March 2026, managed saleable coal production was up 9% year-over-year. Equity saleable coal production was also up 9%.

Higher production combined with higher coal prices is a powerful combination.

But, seeing as the coal price has already risen, there may be better opportunities out there.

The post $10,000 invested in Whitehaven shares 12 months ago is now worth… appeared first on The Motley Fool Australia.

More reading

• The Aussie dollar just hit a 4-year high. Which ASX shares will benefit?
• ASX 200 energy shares lead and market finally cracks 8-day losing streak
• Macquarie names 3 ASX shares to buy
• Here are the top 10 ASX 200 shares today
• Should you buy Coronado Global and Whitehaven Coal shares?

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Codan Ltd (ASX: CDA) have been absolutely unstoppable.

The ASX tech stock is now up 42% in 2026 alone and an eye-watering 137% over the past 12 months at the time of writing.

That kind of rally naturally raises one big question for investors: is it finally time to lock in profits, or could the stock still have further to run?

Multiple growth drivers

Codan is not your typical ASX tech company.

The business develops electronic solutions for government, military, corporate, and consumer markets globally, with operations spanning two key divisions: communications and metal detection.

Right now, both businesses are firing. The communications division is benefiting from rising geopolitical tensions and growing defence spending globally.

In uncertain times, governments and military organisations tend to prioritise mission-critical communication systems early, and the $7 billion ASX tech stock appears well-positioned to benefit from that trend.

Demand has reportedly remained strong across areas linked to unmanned systems and software-defined radios, which are becoming increasingly important in modern defence and public safety applications. The company anticipates net profit after tax at around $170 million, up over 60% year on year.

Margins are also moving in the right direction. Codan now expects communications margins to hit 30% in FY26, earlier than previously forecast. That is a meaningful jump from around 26% in FY25.

And when margins expand in technology businesses, earnings can accelerate very quickly.

The gold boom is helping too

The company’s Minelab metal detection business is also delivering strong momentum.

As gold prices surge globally, interest in gold prospecting has exploded, particularly across parts of Africa where small-scale mining activity remains widespread. That has created strong demand for Codan’s gold detection products.

Importantly, the business is not relying solely on gold miners. The ASX tech stock also continues seeing healthy demand from recreational metal detector users globally, adding another layer of diversification to earnings.

Thanks to these combined tailwinds, Codan now expects FY26 revenue growth to land at the top end of its previously guided 15% to 20% range. That is an impressive result for a company that has already experienced such a massive share price rally.

So, should investors cash out?

Broker sentiment appears a little more cautious after the ASX tech stock’s enormous run.

According to TradingView data, analyst views are mixed. Five out of nine brokers currently rate Codan shares as either a buy or strong buy, while three sit at a hold, and one has a sell recommendation.

The average 12-month price target sits roughly 10% above current levels, suggesting analysts still see some upside ahead, but perhaps not another explosive rally like the past year.

Bell Potter is among the more cautious brokers. It recently retained a hold rating and lifted its price target to $41.30, still below the recent share price near $43.

Meanwhile, Macquarie remains more bullish, highlighting Codan’s growing exposure to the booming unmanned aerial vehicle (drone) market.

The broker upgraded the stock to outperform and lifted its price target to $44.20. That points to a 10% upside from current price levels.

The post This ASX tech stock has exploded 137%, time to cash out? appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares with upgraded ratings this week
• ASX tech shares vs. ATEC ETF: How they fared during sector downturn
• Here are the top 10 ASX 200 shares today
• How high does Macquarie think Codan shares will go?
• 4 ASX 200 shares upgraded by brokers this 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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) shares have had a brutal year.

The biotechnology giant is down around 60% over the past 12 months, which is an extraordinary fall for a company of its stature.

That kind of decline can make investors hesitate. It can also create opportunity.

If I had $10,000 to invest in one ASX 200 healthcare share today, I would be willing to put it into CSL. But I would only do so with realistic expectations.

This is not a stock I would buy expecting a quick rebound.

Why CSL shares have become interesting

CSL is facing a difficult period.

The market has lost confidence in the company after disappointing updates, guidance pressure, and concerns about whether the business can return to the quality of growth investors once expected.

Those concerns are fair.

CSL needs to rebuild trust. It needs to show that its plasma collection network, cost base, product portfolio, and Vifor business can deliver better returns over time.

But I do not think the long-term investment case has disappeared.

CSL still owns valuable healthcare assets across plasma therapies, vaccines, and specialist medicines. These are linked to real medical needs, global healthcare demand, and long-term patient treatment.

That is why I think the CSL share price fall could be overdone.

The business has disappointed, but I do not believe the core opportunity has been permanently destroyed.

Being paid to wait

One part of the CSL story that looks more appealing after the selloff is the dividend.

CSL has not traditionally been viewed as a high-yield income stock. Investors usually bought it for growth, with the dividend as a smaller part of the overall return.

But after a 60% share price fall, the dividend yield has become more attractive.

That can make a difference for long-term investors.

If the recovery takes time, investors may still receive income while waiting for sentiment to improve. And if CSL can eventually find its form again and grow its dividend over time, today’s buyers could end up with a much better yield on cost down the track.

That is not guaranteed, of course. Dividends depend on earnings, cash flow, and management decisions.

But I think the income component now adds something useful to the investment case.

How I would invest the $10,000

I would not assume CSL has already hit the bottom.

The shares could remain volatile. Investor confidence is weak, and the company still needs to prove itself.

For that reason, I would consider investing gradually.

An investor could put part of the $10,000 into CSL now and keep the rest available in case the shares fall further or more evidence of a recovery appears.

That approach gives some exposure today without relying on perfect timing.

Foolish takeaway

I think CSL shares are worth buying after such a large fall, but this is no longer the simple set-and-forget quality story it may have seemed in the past.

The company has work to do.

That said, the share price now reflects a lot of disappointment. CSL still has global healthcare assets, long-term demand drivers, and a dividend yield that gives investors something to collect while they wait.

If I were investing $10,000 today, I would be comfortable buying CSL shares. I would just be prepared to be patient, because the recovery may be measured in years rather than weeks.

The post Should I invest $10,000 in CSL shares before the end of May? appeared first on The Motley Fool Australia.

More reading

• Why is the ASX 200 starting at a 7-week low today?
• CSL shares crash, but is a comeback looming?
• Top brokers name 3 ASX shares to buy next week
• Buy, hold, sell: CBA, CSL, and Life360 shares
• How much $500 a month could become with ASX shares

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.

Thankfully for income investors, the Australian share market is home to a wide range of dividend-paying ASX shares.

But which ones could be top buys in May?

Listed below are three ASX dividend shares that could be worth buying this month. Here’s what you need to know about them:

Amcor plc (ASX: AMC)

The first ASX dividend share to look at is Amcor.

Amcor is a global packaging company that supplies flexible and rigid packaging products to customers across food, beverage, healthcare, personal care, and other consumer markets.

This gives the business exposure to everyday demand. Packaged food, medicine, and household goods continue moving through supply chains regardless of short-term market sentiment.

It is thanks to this that some analysts are expecting Amcor shares to offer dividend yields of more than 7% in both FY 2026 and FY 2027.

Rural Funds Group (ASX: RFF)

Another ASX dividend share worth looking at is Rural Funds Group.

It owns agricultural properties across Australia and leases them to operators in sectors such as cattle, cropping, almonds, macadamias, and vineyards.

The appeal here is the nature of the company’s assets. Farmland is a real asset tied to long-term demand for food and agricultural production. Rental income can also provide a clearer earnings stream than direct exposure to farm operating conditions.

Rural Funds still faces risks from interest rates, weather conditions, and tenant performance. But its portfolio gives income investors access to a part of the property market that looks very different from offices, shopping centres, or warehouses.

Its shares are expected to offer dividend yields of around 6% in FY 2026 and FY 2027.

Lottery Corporation Ltd (ASX: TLC)

A third ASX dividend share that could appeal is Lottery Corporation.

The company operates lottery and keno licences across much of Australia. These licences provide exposure to a large, regulated market with strong brand recognition and recurring customer activity.

Lottery earnings can be influenced by jackpot cycles, but the business has a cash-generative model and limited capital intensity compared with many other industries.

This can support dividends over time, particularly when trading conditions are favourable.

For income investors seeking exposure outside the usual sectors, Lottery Corporation offers a dividend stream backed by a defensive and highly cash-generative business model.

It is expected to offer dividend yields of 3.2% in FY 2026 and then 3.7% in FY 2027.

The post 3 excellent ASX dividend shares for income investors to buy in May appeared first on The Motley Fool Australia.

More reading

• Should investors buy low on these ASX shares hitting 52-week lows?
• Hunting passive income? Here are three ASX dividend shares to buy
• Why did this broker just lower its price targets on these ASX shares?
• Should you buy Amcor shares for the 7% dividend yield?
• Is this the best ASX dividend stock to buy for passive income?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended The Lottery Corporation. The Motley Fool Australia has positions in and has recommended Amcor Plc and Rural Funds Group. The Motley Fool Australia has recommended The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.