Category: Stock Market

Brambles Ltd (ASX: BXB) shares were smashed on Monday after the pallet pooling giant cut its FY26 profit guidance.

At market close on Monday, the Brambles share price finished down 20.23% to $17.63.

That fall put Brambles on track for its worst trading day in more than two decades.

The sell-off has added to a painful year for shareholders. Brambles shares are now down 23% in 2026 and 19% over the past year.

The damage comes after the company warned that short-term service issues in the US and supply chain inefficiencies in Europe would weigh on sales and profit.

So, what went wrong?

Profit guidance takes a hit

In its update, Brambles said it now expects FY26 underlying profit growth of between 3% and 5% at constant currency rates.

That is well below its previous guidance range of 8% to 11%.

The downgrade is mainly tied to problems in parts of the company’s US subcontractor service centre network.

Repair capacity constraints in some locations are making it harder to fully service stronger-than-expected customer demand.

Those issues are also pushing up short-term costs, with Brambles expecting a US$60 million earnings impact from the repair capacity constraints.

The pressure is also flowing through to the top line as well. Sales revenue growth is now expected to be 2% to 3%, compared with the previous range of 3% to 4%.

On the upside, Brambles said free cash flow before dividends is now expected to land at the upper end of its previous range. It is now pointing to US$1 billion to US$1.1 billion, compared with US$950 million to US$1.1 billion previously.

US network is the main problem

Brambles said it is already taking steps to improve service levels and restore pallet availability across the affected parts of its US network.

This includes moving more pallets between locations, adding repair capacity, and buying new pallets to help meet customer demand.

The company expects to buy around 2 million pallets in the fourth quarter of FY26, with further purchases planned in the first half of FY27.

Management expects the service issues to be resolved by the first half of FY27.

Furthermore, Europe is adding some pressure, with Brambles pointing to supply chain inefficiencies in the region. However, it expects part of this impact to be offset by overhead cost savings.

Buyback fails to calm investors

Brambles also announced a US$400 million on-market share buyback, but that hasn’t been enough to settle investors today.

The buyback is expected to start after the current program is completed. It will then run through the remainder of FY26 and across FY27.

A buyback of that size would usually give the share price some support, especially from a business with strong cash flow.

Instead, the market is looking straight past the capital return and focusing on the earnings downgrade.

Foolish Takeaway

This is a tough update from Brambles, and the market reaction shows investors were caught off guard.

The buyback and cash flow outlook offer some support, but the profit downgrade did most of the damage yesterday.

A one-day fall of more than 20% is rare for a company of this size, especially one with a defensive reputation.

The stock may attract bargain hunters, but investors will want proof that the US service issues are being fixed first.

The post Brambles shares crash 20% in worst fall in more than two decades appeared first on The Motley Fool Australia.

More reading

• Should investors buy low on these ASX shares hitting 52-week lows?
• Why A2 Milk, Brambles, Elders, and Tuas shares are sinking today
• Why is everyone talking about Elders, Brambles and New Hope shares on Monday?
• Why are Brambles shares crashing more than 15% to a new 12-month low today?
• Brambles revises FY26 outlook, announces new US$400m buy-back

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

ResMed Inc. (ASX: RMD) shares have not had an easy run lately.

The ASX 200 blue chip healthcare stock has fallen heavily from its highs, leaving investors to ask whether this is a warning sign or a buying opportunity.

I think it could be the latter.

ResMed remains one of the strongest global healthcare businesses on the ASX, and I believe its long-term opportunity is still attractive despite what the recent share price weakness might suggest.

A global leader in sleep health

ResMed is best known for its products that treat sleep apnoea and other breathing-related conditions.

Its devices, masks, software, and connected care tools help patients manage their therapy and allow healthcare providers to support treatment more effectively.

The market opportunity is large.

Sleep apnoea remains underdiagnosed and undertreated around the world. Many people who could benefit from treatment still have not been diagnosed, while others may not yet have started therapy.

That gives ResMed a long runway.

As awareness improves and more people enter the treatment pathway, I think ResMed can keep growing across devices, masks, accessories, and software.

Why I like the business model

One of the things I like most about ResMed is its razor-and-blades style business model.

The device is important, but the ongoing revenue stream is just as valuable. Patients often need masks, cushions, tubing, filters, and other accessories over time.

That creates repeat demand.

This can make ResMed a higher-quality business than a company relying only on one-off product sales. Once a patient is using therapy, there can be an ongoing relationship between the patient, provider, and ResMed’s ecosystem.

I also like the margin profile.

Healthcare technology companies with strong brands, specialised products, and global distribution can generate attractive margins when they execute well. ResMed has spent years building trust in a market where reliability and comfort are critical.

What about drug competition?

One concern hanging over the stock is the potential for a drug treatment for obstructive sleep apnoea.

Apnimed has been trialling AD109, and the data has created debate about whether a pill could reduce the need for traditional sleep apnoea devices in some patients.

I think investors should pay attention to this, but I do not think it destroys the ResMed investment case.

A drug treatment may be useful for some people, particularly those who cannot tolerate CPAP therapy or refuse to use it. But sleep apnoea is a broad condition with different levels of severity and different patient needs.

For many patients, devices and masks are likely to remain an important part of treatment.

There is also a practical point. A new drug would still need to prove itself over time across safety, durability, cost, access, and real-world use. Healthcare adoption does not always move as quickly as share prices suggest.

So, while the risk is real, I see it as a manageable threat rather than a reason to dismiss ResMed.

A strong buy?

The share price fall has made ResMed look much more interesting to me.

This is still a global leader in a large healthcare market, with a high-margin recurring revenue model and a long history of innovation.

The company will need to keep improving its products, defending its market position, and proving that new competition will not derail growth.

But I think the market may be underestimating the durability of the business.

Foolish takeaway

I think the current weakness could be giving patient investors a chance to buy a high-quality healthcare business at a more appealing price.

Sleep health remains a large, underpenetrated market, and ResMed still has the brand, product ecosystem, and recurring revenue base to remain a major player for many years.

For long-term investors, I think this fallen ASX 200 blue chip could be a strong buy.

The post Why this fallen ASX 200 blue chip could be a strong buy appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares that could bounce back in the second half of 2026
• Buy, hold, sell: ResMed, Sigma, and TechnologyOne shares
• 3 high-quality ASX 200 shares for beginners to buy and hold
• 3 ASX 200 shares I’d buy and hold through any market cycle
• Why are Resmed shares lagging if the business keeps compounding?

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

Cochlear Ltd (ASX: COH) has had a horrid start to 2026.

The stock hit $319.56 at its 52-week high and trades near $94 today.

That is approximately a 70% decline in less than a year.

Most of the damage was done in a single week in April following one of the worst earnings downgrades in the company’s listed history.

None of that is pretty.

But for long-term investors who can separate the near-term noise from the long-term story, the current price may be worth a much closer look.

What went wrong

The catalyst for the collapse was a trading update released on 22 April 2026, which cut Cochlear’s FY2026 underlying net profit guidance from $435-460 million to $290-330 million.

That is a reduction of approximately 30% at the midpoint, and it stunned a market accustomed to Cochlear’s premium valuation and consistent execution.

The drivers of the downgrade were a combination of factors.

Hospital capacity constraints and reduced referral activity from the hearing aid channel weighed on surgical volumes in developed markets, particularly in the US.

Consumer sentiment in the US reached historic lows, which appears to have pushed some patients to delay what they perceive as a discretionary healthcare decision.

On top of that, disruptions in the Middle East has created uncertainty around order cancellations and receivables, and a stronger Australian dollar added a further $25 million headwind after tax.

The market responded swiftly, sending the shares down almost 40% in a single session.

Does the long-term investment case remain intact?

Strip away the short-term headwinds and the underlying demand picture tells a different story.

Cochlear holds approximately 50% global market share in cochlear implants, a position it has built over four decades of research and development investment.

The company reinvests approximately 13% of revenue into R&D each year, ensuring its technology lead remains difficult for competitors to close.

Furthermore, demand for its products is not cyclical in the traditional sense.

The adult and seniors segment, which has historically grown at approximately 10% per annum over many years, represents an addressable market of over six million customers in developed markets alone, and current penetration sits at just 3%.

 CEO Dig Howitt stated in the April ASX announcement:

The clinical need for cochlear implants continues to grow, particularly for the adult and seniors segment. For people with severe to profound hearing loss, cochlear implants are more effective than hearing aids for indicated patients, with 95% of recipients reporting significantly higher satisfaction after switching to a bimodal hearing solution. Cochlear implants are also associated with a lower incidence of dementia, with dementia rates lower than in hearing aid users and comparable to those with normal hearing.

In other words, the company still views its products as filling an essential need.

What the brokers think

The broker community remains divided on how quickly Cochlear recovers but broadly constructive on the longer-term outlook.

Jarden carries a price target of $169, implying almost 80% upside from current levels.

Wilsons Advisory has initiated a buy recommendation, describing the current valuation as a compelling entry point ahead of earnings acceleration.

Macquarie and Morgans are more cautious in the near term, having slashed their targets sharply in response to the guidance cut.

The divergence in views reflects uncertainty about whether the developed market softness is cyclical or something more structural.

However, the fact that several brokers still see meaningful upside at current levels suggests the market may have overshot to the downside.

Foolish takeaway

Cochlear is perhaps not a stock for investors seeking a quick recovery.

Near-term earnings visibility is limited, the FY2026 result will be weak, and sentiment remains negative.

However, for investors with a multi-year time horizon, this is a business with a dominant competitive position, a deeply structural demand tailwind, and a valuation that is materially cheaper than it has been at any point in over a decade.

The post Why Cochlear’s brutal 2026 selloff could be creating a once-in-a-decade opportunity appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares that could bounce back in the second half of 2026
• Could this fallen ASX 200 stock be a once-in-a-decade opportunity?
• 4 ASX 200 shares I’d buy with $5,000 this week
• 4 ASX 200 shares tipped to climb 75% to 126% higher
• 3 ASX shares down over 60% that could be bargain buys

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

The Commonwealth Bank of Australia (ASX: CBA) dividend yield has seen a significant jump after the CBA share price declined significantly following its FY26 third-quarter update and the Australian Federal budget.

As the above chart shows, at the time of writing, it’s down more than 10% since 7 May. As a result, the dividend yield has also been boosted by more than 10%.

Let’s take a look at what has happened to the potential CBA dividend yield.  

Forecast CBA dividend yield for FY26

The ASX bank share has provided investors with steady dividend growth since the negative effects of COVID-19 in 2020.

Experts expect the business to increase its annual dividend per share in FY26.

CMC Invest suggests the bank could pay an annual dividend per share of $5.05 in the 2026 financial year – this would be growth of 4% year-over-year. At the current CBA share price, that implies a possible grossed-up dividend yield of 4.5%, including franking credits.

Is dividend growth likely in FY26?

The ASX bank share is doing many of the right things to grow its earnings.

In the FY26 third-quarter update, Commonwealth Bank reported quarterly cash net profit of approximately $2.7 billion, representing year-over-year growth of 4%. That earnings growth rate essentially matches what analysts expect the FY26 annual dividend growth to be.

Within that quarterly update, business lending increased 12.5%, household deposits rose 9.1% and home lending grew 7.1%. But, a key negative was that the ASX bank share’s loan impairment expense was $316 million, with higher collective provisions reflecting heightened uncertainty. However, underlying portfolio credit quality remained “sound”.

What about FY27?

Analysts expect further dividend growth for owners of Commonwealth Bank shares in the subsequent financial year.

In FY27, the ASX bank share is forecast to see the annual dividend per share rise to $5.20 per share. That would represent year-over-year growth of 3%, if the prediction on CMC Invest comes true.

At the current CBA share price, that translates into a potential FY27 grossed-up dividend yield of 4.7%, including franking credits, at the time of writing.

So, while the CBA dividend yield has certainly increased in recent times, the ASX bank share still does not offer the same size dividend yield as some of its peers like National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).

CBA is not one of the first shares I’d buy for dividends.

The post Is the CBA share price a buy for its 4.5% dividend yield? appeared first on The Motley Fool Australia.

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• Which big four ASX bank stock is the best buy right now?
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• How low could CBA shares go? 4 brokers have their say

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.

The best ASX growth shares are not always the newest or most exciting names on the market. They are often businesses with proven models, expanding addressable markets, and management teams that still have plenty of room to execute.

With that in mind, here are three ASX shares that could be much bigger in 10 years.

Breville Group Ltd (ASX: BRG)

Breville Group has spent years turning kitchen appliances into a global premium brand.

Coffee has been central to that story. The company’s espresso machines have tapped into the shift toward higher-quality coffee at home, helping Breville build a strong position in a category with repeat customer engagement and premium pricing.

But Breville is not standing still. It continues to expand across geographies, brands, and product categories. Its portfolio now stretches across Breville, Sage, Baratza, and Lelit, giving it exposure to different regions and parts of the premium kitchen market.

The company also has a habit of turning product innovation into growth. That matters in a category where design, performance, and brand trust can influence buying decisions.

If Breville keeps deepening its presence in the US, Europe, and newer markets, it could continue to grow well beyond its current size.

Hub24 Ltd (ASX: HUB)

Hub24 is benefiting from a long-running shift in wealth management.

The company provides investment platform technology used by financial advisers and their clients. These platforms help manage portfolios, reporting, administration, and access to investments.

The important point is that advisers are still moving away from older legacy systems. That shift has created a long runway for modern platforms that are easier to use and more flexible.

Hub24 has been one of the clearest winners from this trend. As more funds move onto its platform, the company benefits from rising scale and operating leverage.

Australia’s pool of investable wealth is large and still growing. That gives the company an attractive backdrop if it can keep winning adviser support and expanding funds under administration.

With structural tailwinds and a scalable platform, this ASX share could be far larger in 10 years.

Megaport Ltd (ASX: MP1)

Megaport is building a larger role for itself in digital infrastructure.

The ASX share started with a clear proposition: making it easier for businesses to connect to cloud providers, data centres, and networks on demand. That remains a useful service as companies continue moving workloads into cloud environments.

But the story has become more interesting following its acquisition of Latitude.sh. This adds compute capability to Megaport’s existing connectivity platform and broadens its market opportunity.

In simple terms, the company is moving beyond helping customers connect to infrastructure. It is gaining exposure to more of the infrastructure stack itself.

That could be important as demand for cloud, AI workloads, and flexible digital capacity continues to rise.

If Megaport can successfully integrate Latitude.sh and keep expanding customer usage, it could be a very different business by the mid-2030s.

The post 3 ASX shares that could be much bigger in 10 years appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Megaport. 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.

The S&P/ASX 200 Index (ASX: XJO) continued its recent slump on Monday. This included a heavy sell-off for many well-known ASX shares that hit fresh 52-week lows. 

Three ASX shares hitting new yearly lows were: 

• Brambles Ltd (ASX: BXB) crashed 20%
• Sonic Healthcare Ltd (ASX: SHL) dropped a further 2%
• Amcor Plc (ASX: AMC) fell 4%. 

For investors holding positions in these companies, it can be difficult not to panic when shares hit 52-week lows. 

For investors on the outside looking in, it can be an opportunity to find value in quality stocks. 

Let’s see what experts are saying. 

Brambles crashes on trading update

Brambles is the world’s largest supplier of reusable wooden pallets and crates used for storing and transporting goods. 

It operates in more than 60 countries, primarily under the Chep brand. The company touts itself as a pioneer of the ‘sharing economy’, managing a reusable pool of pallets and containers to service global supply chains and logistics.

Yesterday, it released a FY26 trading update.

It revealed revised FY26 guidance and the announcement of a new US$400 million share buy-back.

Brambles now expects sales revenue growth of 2% to 3% (previously 3% to 4%) and underlying profit growth of 3% to 5% (from 8% to 11%).

This news sent investors running for the hills, as the share price crashed 20% to a new 52-week low of $17.63. 

It may be a buy-low candidate after the crash.

The team at Jarden recently placed an overweight rating and $25.15 price target on Brambles shares. 

It’s worth noting this was prior to the recent guidance downgrade. 

Sonic Healthcare continues its slump

Sonic Healthcare is a global healthcare provider. It is the largest private medical laboratory and pathology services operator in Australia, the United Kingdom, Germany, and Switzerland.

It hit new 52-week lows yesterday closing at $18.39. 

Its share price is now down 18% year to date. 

It does have appeal as a dividend stock, as well as some capital upside. 

16 analyst forecasts via TradingView place an average price target of $24.25 on this ASX healthcare stock.

That indicates roughly 30% upside from current levels. 

Amcor continues to slide

Amcor operates as a holding company, which engages in the consumer packaging business.

It has struggled so far in 2026, falling 4% yesterday to take its year to date fall to roughly 18%. 

It recently released 3Q26 earnings which were largely in line with expectations. 

The team at Morgans is optimistic this ASX stock can bounce back from fresh 52-week lows. 

The broker recently lowered its price target to $65.40 (from $68.20), however maintained its buy recommendation. 

From yesterday’s closing price of $51.44, this updated target indicates an upside potential of 27%. 

The post Should investors buy low on these ASX shares hitting 52-week lows? appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, Brambles, Elders, and Tuas shares are sinking today
• Why is everyone talking about Elders, Brambles and New Hope shares on Monday?
• Why are Brambles shares crashing more than 15% to a new 12-month low today?
• Brambles revises FY26 outlook, announces new US$400m buy-back
• 5 ASX shares with upgraded ratings this week

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 positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended Sonic Healthcare. 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 tough 2026 for ASX technology stock Gentrack Group Ltd (ASX: GTK). 

Gentrack engages in the development, implementation, and support of software solutions for electricity, gas and water utilities, and airports.

Yesterday, it continued its free fall, dropping 5% to take its year to date fall to 55%. 

Why is this ASX technology stock crashing this year?

Much of this pain came on May 5th when it crashed 35% in a single session following a trading update.

According to the release, the company expects FY2026 revenue to range between NZ$229 million and NZ$238 million.

This is below its previous guidance and broadly in line with FY2025 revenue of NZ$230.2 million.

Management said the weaker outlook is due to softer non-recurring (NRR) revenue, which is expected to decline compared with FY2025 and offset growth in recurring revenue. Recurring revenue, however, is forecast to increase by more than 10% to approximately NZ$174 million.

Bell Potter tips a rebound

A new report from Bell Potter suggests this ASX technology stock is now attractively valued.

This comes following the announced acquisition of New Zealand energy software business Prospero Energy for NZ$24 million. 

The deal aims to strengthen its utilities platform.

Bell Potter said Gentrack Group’s acquisition of energy pricing software business Prospero Energy strengthens its g2.0 platform and could also perform well as a standalone product.

The broker noted the NZ$24 million deal is unlikely to materially boost earnings in FY26 or FY27, although management expects it to be earnings accretive by FY28, and Bell Potter views the acquisition positively because it is not being used to fill short-term revenue weakness.

Buy rating retained 

Based on this guidance, Bell Potter has retained its buy recommendation on this ASX technology stock. 

The broker has also slightly increased its price target to $5.70 (previously $5.60). 

From yesterday’s closing price of $3.32, this indicates an upside potential of over 70%. 

We anticipate the market will continue to discount GTK until it is able to visibly execute on Utilities NRR, however we remain broadly positive on GTK due to the large secular tailwinds in rapidly shifting energy production and consumption trends driving increased complexity within grids, billing platform requirements and broader digital transformations.

Bell Potter isn’t the only analyst tipping a rebound. 

Shaw and Partners recently issued a research report on Gentrack that included a $8 price target for the company.

If it were to reach that level, it would represent a gain of 141%. 

The post Bell Potter is tipping a 70% rebound for this struggling ASX technology stock appeared first on The Motley Fool Australia.

More reading

• Which ASX technology company, which is tipped to double in value, has just announced an acquisition?
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• Despite a recent trading downgrade this ASX small cap could still return more than 100%: Broker
• Down 75%: Is this ASX tech stock a bargain buy?
• Guess which ASX tech share is crashing 35% today

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

As we slowly approach the halfway point of 2026, investors may be repositioning their portfolios after a lacklustre opening few months. 

The S&P/ASX 200 Index (ASX: XJO) is down 2.5% year to date. 

However the soft start to the year has created value opportunities across the market. 

Many of these opportunities are in the travel, healthcare and technology sectors, which have struggled so far this year. 

With that in mind, here are five ASX shares that could be set to bounce back. 

Qantas Airways Ltd (ASX: QAN)

Australia’s largest airline has unsurprisingly struggled in 2026. 

Headwinds like spiked oil prices and global conflict have weighed heavily on travel shares. 

Additionally, interest rate hikes and inflation have put pressure on household spending. 

Despite these headwinds, there is reason to be optimistic long-term for this blue-chip ASX stock. 

TradingView data shows the current share price could be overestimating these headwinds, as the average analyst rating has a one year price target of $11.04 on these ASX shares. 

This indicates an upside potential of 30% for Qantas shares. 

Life360 Inc (ASX: 360)

Life360 is a United States-based software development company. The company’s core product is a private family and friends social networking app that allows users to communicate and share their locations.

Its share price is down 44% year to date. 

However this could be another buy-low opportunity. 

Despite the recent share price softness, the company recently reported revenue growth of 38%, advertising revenue growth of 329% and operating cash flow increase of 42% year-over-year.

As the Motley Fool’s Tristan Harrison reported yesterday, the average price target according to CMC Invest, is $30.52 on these ASX shares. 

This indicates an upside potential of roughly 66% in the next 12 months. 

REA Group Ltd (ASX: REA)

REA Group has been another online classified stock caught in the crosshairs of AI disruption fears.

Its share price is down 11% this year but has shown signs of a rebound already. 

Bell Potter believes this rebound can continue into the second half of the year. 

The broker has an updated price target of $217 on these ASX shares, indicating an upside potential of 32%. 

ResMed CDI (ASX: RMD)

Moving attention to the healthcare sector, Resmed shares have been heavily sold off in 2026. 

The global leader in sleep technology has seen its share price tumble 22% year to date. 

However it has recently been attracting plenty of attention as a buy-low candidate. 

Recently, the team at Morgans placed a price target of $41.72 on these ASX shares after quarterly results.

This price target indicates an upside potential of 48% from current levels. 

Cochlear Ltd (ASX: COH)

Cochlear shares crashed earlier this year after the ASX healthcare company downgraded its FY26 earnings guidance. 

At the time of writing, they are down 65% in 2026, making them some of the worst performing ASX 200 shares this year. 

For investors playing the long game, the current price might be too good to ignore, as Cochlear shares peaked at more than $330 in 2024, and currently sit at $93 per share. 

16 analyst forecasts via TradingView place fair value at around $130 per share, roughly 39% higher than current levels. 

The post 5 ASX shares that could bounce back in the second half of 2026 appeared first on The Motley Fool Australia.

More reading

• 3 ASX mid-cap stocks that could be tomorrow’s big winners
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: ResMed, Sigma, and TechnologyOne shares
• Could this fallen ASX 200 stock be a once-in-a-decade opportunity?
• Why Life360 shares are jumping higher in Monday’s falling market

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 Cochlear, Life360, and ResMed. The Motley Fool Australia has positions in and has recommended Life360 and ResMed. The Motley Fool Australia has recommended Cochlear. 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) was out of form and sank deep into the red. The benchmark index fell 1.45% to 8,505.3 points.

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

ASX 200 to rebound

The Australian share market looks set to jump on Tuesday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 95 points or 1.1% higher. In the United States, the Dow Jones rose 0.3%, but the S&P 500 edged 0.1% lower and the Nasdaq dropped 0.5%.

Oil prices mixed

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch on Tuesday after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 0.75% to US$106.23 a barrel and the Brent crude oil price is down 0.4% to US$108.82 a barrel. This follows reports that Donald Trump has called off a planned attack on Iran on Tuesday.

TechnologyOne results

All eyes will be on TechnologyOne Ltd (ASX: TNE) shares on Tuesday when the enterprise software provider releases its half-year results. Bell Potter is expecting a strong result. It said: “We forecast PBT growth of 9% to $89.4m while VA consensus is growth of 8% to $88.4m. The area which could surprise, however, in our view is ARR where there is no guidance for H1 but both we and VA consensus forecast a 17% increase y-o-y to c.$600m.”

Gold price edges higher

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Tuesday after the gold price edged higher overnight. According to CNBC, the gold futures price is up slightly to US$4,563.1 an ounce. Gold rose in response to a weaker US dollar.

Buy Elders shares

Elders Ltd (ASX: ELD) shares could be in the buy zone after crashing 22% on Monday. In response to the agribusiness company’s half-year results, Bell Potter has retained its buy rating with a reduced price target of $6.45 (from $9.00). It said: “1H26 was a consensus miss on higher SYSMOD linked costs and to a degree reflects dual running costs that should reduce into FY27e. However, this was poorly communicated and largely mitigated the benefit of operating leverage. Delivering on the promise of Delta, backward integration and SYSMOD, while unwinding duplicate cost structures are central to EPS growth, but this needs to be done in a potentially more difficult 2HCY26 seasonal backdrop with a CEO transition.”

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

These three companies have already delivered impressive growth.

But the most exciting part of their stories may still be ahead.

The ASX has no shortage of large-cap stocks to choose from, but some of the most interesting long-term opportunities sit in the mid-cap space.

These businesses are large enough to have proven their models but still small enough to deliver outsized growth.

Three names stand out right now.

Pro Medicus Ltd (ASX: PME)

The numbers Pro Medicus keeps producing are remarkable for a company of its size.

The medical imaging software specialist delivered revenue growth of 28.4% to $124.8 million for the first half of FY2026, with an EBIT margin of 73%, one of the highest of any listed technology company in Australia.

The company signed more than $280 million in new contracts during the half, including a $170 million ten-year deal with the University of Colorado.

Five-year contracted revenue now sits at approximately $1.1 billion, giving the business extraordinary earnings visibility.

Pro Medicus shares have fallen sharply from their all-time high of $336, which has reset the valuation to a level brokers describe as a genuine entry point.

Morgans maintains a buy rating with a price target of $275, noting that the longer-term growth outlook has actually strengthened through the recent wave of contract wins.

Life360 Inc (ASX: 360)

Life360 has quietly become one of the best growth stories in the ASX technology sector.

The company’s family safety and location sharing platform now reaches 97.8 million monthly active users globally, up 17% year-on-year.

In Q1 2026, Life360 delivered record total revenue of US$143.1 million, up 38% year-on-year, with advertising revenue surging 329% to US$19.7 million as the company’s Life360 Ads platform scales rapidly.

In addition, Life360 crossed three million paying circles in the quarter, its strongest quarter ever for subscriber growth.

The company raised full-year 2026 revenue guidance to US$640 million to US$680 million, representing growth of 31% to 39% on 2025.

CEO Lauren Antonoff said:

Life360 has become a meaningful part of everyday family life for more than 97 million people who use Life360 to keep their families safe and connected. The value we deliver to our members powered record-breaking Paying Circle additions in Q1. At the same time, our Life360 Ads platform scaled to become a material part of our business.

Hub24 Ltd (ASX: HUB)

Hub24 operates one of Australia’s fastest growing investment and superannuation platforms, and the tailwinds behind the business look as powerful as ever.

The company delivered record first-half results for FY2026, with underlying EBITDA up 35% to $104.9 million, underlying NPAT up 60% to $68.3 million, and record net platform inflows of $10.7 billion.

Furthermore, total funds under administration reached $151.7 billion as at 31 March 2026, up 22% year-on-year.

As a result, Hub24 has ranked first for quarterly and annual net inflows for nine consecutive quarters.

This streak reflects both the quality of its platform and the structural shift of advisers away from legacy providers.

Management upgraded its FY2027 platform FUA target to $160 billion to $170 billion and plans to roll out the myhub ecosystem, an integrated technology platform combining AI capabilities, advice tools, and the core Hub24 platform.

Foolish takeaway

ASX mid-cap stocks Pro Medicus, Life360, and Hub24 each operate in large, growing markets with defensible competitive positions and management teams that have demonstrated a consistent ability to execute.

All three have experienced sharp share price pullbacks at various points over the past year.

This has made the entry points more attractive for long-term investors willing to look through the volatility.

The post 3 ASX mid-cap stocks that could be tomorrow’s big winners appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares that could be much bigger in 10 years
• 5 ASX shares that could bounce back in the second half of 2026
• How to generate $20,000 a year in passive income on the ASX
• Here are the top 10 ASX 200 shares today
• Why Brazilian Rare Earths, Pro Medicus, Service Stream, and Woodside shares are charging higher

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 Hub24 and Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Hub24 and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.