Category: Stock Market

Finding stocks that can realistically double in a year is not easy. Most of the time, those kinds of returns come with higher risk or rely on a big change in sentiment.

Right now, that shift is starting to show up in parts of the ASX tech sector.

After a sharp sell-off through late 2025 and early 2026, several high-quality names have fallen well below previous highs. In some cases, the underlying business has kept improving while the share price moved the other way.

That gap is what stands out.

If I were looking for positions with strong re-rating potential from current levels, these are the three ASX stocks I would focus on.

WiseTech Global Ltd (ASX: WTC)

WiseTech is a clear example of sentiment disconnecting from business performance.

The company continues to expand its CargoWise platform globally, with revenue lifting strongly following the e2open acquisition. In its latest result, revenue rose 76% to $672 million, while EBITDA increased 31%.

At the same time, the share price has been under heavy pressure. The stock is still well below its 2025 highs after falling rapidly over the past year.

Some of that reflects margin compression tied to acquisitions and governance concerns. But those are not structural issues with the core platform.

CargoWise remains deeply embedded across global logistics networks. Once in place, it is difficult to replace, which supports recurring revenue and pricing power.

If sentiment stabilises, this is the type of stock that can move quickly.

Pro Medicus Ltd (ASX: PME)

Pro Medicus sits at the premium end of the ASX tech space, but the business model continues to justify that position.

The company delivers medical imaging software to major hospital networks, mainly in the United States. Its contracts are long-dated, high-margin, and often include minimum usage volumes.

That creates strong revenue visibility.

Recent results showed revenue up 28.4% and EBIT up 29.7%, with more than $1 billion in forward contracted revenue.

The key point here is consistency. Growth has remained strong even as the share price pulled back over the past year.

It is a high-quality operator that has been repriced with the sector.

Xero Ltd (ASX: XRO)

Xero offers a different angle, but the same setup.

The company continues to grow its global subscriber base, with users reaching 4.59 million in the latest half. Revenue increased 20% to $1.19 billion, with improving EBITDA margins.

At the same time, the share price has fallen heavily alongside the broader tech sell-off.

There are still execution risks, particularly around US expansion and competition. But the core model remains strong.

Xero generates recurring subscription revenue and continues to lift pricing through product improvements.

If growth holds and sentiment shifts, there is room for the multiple to expand again.

Foolish takeaway

All three of these companies have seen large drawdowns despite continuing to grow.

This is not about finding unknown ASX small-caps. These are established businesses that have already proven their models at scale.

The risk is that sentiment stays weak or growth slows.

But if the market continues rotating back into tech, these are the types of companies that are likely move the most.

Personally, I see this more as a sentiment reset than a change in fundamentals. That is why I would be looking here first.

The post Want to double your money in 2026? This is what I’d buy appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Xero, Woolworths, CBA shares
• 5 things to watch on the ASX 200 on Tuesday
• I think these are some of the best ASX 200 shares to buy now
• Experts name 3 ASX 200 tech shares to buy now
• Leading brokers name 3 ASX shares to buy today

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

Over the past six or seven weeks, I have begun to reassess my ASX share portfolio and stress-test it for the worst possible scenario when it comes to the ongoing conflict between Israel, the United States, and Iran. After all, I’m a ‘hope for the best, prepare for the worst’ kind of guy when it comes to these situations. And this latest Middle East conflict is throwing up some pretty nasty potential consequences.

After a comprehensive reevaluation of my portfolio, I have realised that a mistake I made years ago when building it is still haunting it. This mistake is one that I have decided to dedicate 2026 to correcting.

A personal note here, one of my weaknesses is a love of a good collection. I am a collector at heart, and have been my entire life. There are few things I can resist less than a full collection, whether it be a book series or a set of trading cards. Or stocks.

When I first began building my stock portfolio, I couldn’t help but try to own shares of every high-quality company I could find. If an item was in the supermarket, or contributed even a few stitches to the fabric of popular culture, I had to own shares of the company that made it.

A few years ago, I realised that this strategy perhaps wasn’t the most prudent one. That revelation came when auditing my portfolio revealed that I owned more than a hundred different positions, all rather small. That is a ludicrous amount that prohibited the kind of dedication that is necessary for stock market success.

My 2026 ASX share portfolio goal

Over subsequent years, I sold down many of those positions that, while I thought were decent companies, I lacked a deep knowledge of. These ranged from Nike, PepsiCo, and Unilever, to Kraft Heinz, Adobe, and Hasbro.

Most of these names are high-quality companies whose products can be found all over the world. But I simply had too many of them to keep track of. My love of collecting had become a burden on my finances.

Today, my portfolio is simpler, more nimble and easier to keep an eye on. However, even though I have sold off many holdings over the past few years, it is still too large. Here at the Fool, we usually tell investors that they should aim for somewhere between 15 and 25 companies in a typical individual stock portfolio. Unfortunately, I still don’t have my money where our mouths are, and I currently own a lot more than 25 positions. But it is far less than the triple-digit figure I had a few years ago, so progress is being made.

One of my goals over the rest of 2026 is to reduce this portfolio further. Boiling it down, as it were. One of the things I have learned over my years in the market is that the best way to harness the power of compounding is to find the rare companies that can consistently compound their own revenues and earnings over time and buy as many shares as one can. There are only a handful of companies in my portfolio that I have faith in this endeavour. I’ll be spending this year adding to them, and perhaps selling down the rest. In investing, as with many things, often less is more.

The post My ASX share portfolio: Overcoming a common investing mistake appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares Bell Potter rates as top buys
• I think these are some of the best ASX 200 shares to buy now
• Why this is the best income ASX ETF for retirees
• 3 ASX 200 shares tipped to rise 20% or more
• Experts name 3 ASX 200 tech shares to buy now

Motley Fool contributor Sebastian Bowen has positions in Kraft Heinz, PepsiCo, and Unilever. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe and Nike. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Hasbro, Kraft Heinz, and Unilever and has recommended the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool Australia has recommended Adobe and Nike. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are on the lookout for ASX shares, then it could be worth hearing what Bell Potter is saying.

It recently named a number of smaller companies that it believes offer attractive upside.

Here are three ASX shares that have been given the thumbs up:

AMA Group Ltd (ASX: AMA)

This accident repair business is one of Bell Potter’s preferred smaller ASX shares.

The broker sees value in AMA Group as the company continues to improve following a difficult period, with its scale and integration capability giving it leverage to better conditions.

Commenting on AMA Group, Bell Potter said:

AMA Group is the largest accident repair group in Australia with approximately 138 vehicle panel repair shops. The company also has a presence in New Zealand with 5 vehicle panel repair shops. AMA sold its manufacturing business in 1HFY21 and its remanufacturer of automatic transmissions – called Fluid Drive – in 1HFY23 so is now almost a pure play accident repair group. The only part of the company outside of panel repair is the Supply business – called ACM parts – which sells a range of new, aftermarket and recycled parts and consumables.

This business now, however, is flagged for sale. The company has a strong track record of successful integrations, and any announcements could trigger a rerating from where it currently trades at a discount to its long-term valuation average.

Nick Scali Ltd (ASX: NCK)

This furniture retailer is another ASX share that Bell Potter is positive on.

It likes Nick Scali due to its store rollout plans and expansion opportunities, particularly in the UK. Bell Potter explains:

Nick Scali is an Australian retailer specialising in household furniture and related accessories, operating under the core Nick Scali brand as well as the Plush banner. >90% of sales are completed in-store, with the company maintaining a substantial physical presence with over 100 showrooms across Australia and New Zealand, and has recently expanded into the UK, which now contributes around 8% of total revenue.

Looking ahead, the key growth drivers include the continued roll-out of Nick Scali stores in the UK, supported by the refurbishment of acquired Fabb locations, and the ability to leverage the group’s established supply base to drive scale efficiencies and margin expansion.

Universal Store Holdings Ltd (ASX: UNI)

This youth fashion retailer is also rated positively by the broker. Bell Potter sees appeal in Universal Store’s rollout strategy, quality metrics, and valuation. The broker said:

Universal Store Holdings is a leading youth focused apparel, footwear and accessories retailer in Australia. UNI will continue to increase store numbers over the next few years, supporting earnings growth of 11% p.a. Valuation looks attractive, trading on a forward P/E of ~13.4x. UNI is a quality small cap (ROE ~26%) that is executing on its rollout strategy.

The post 3 ASX shares Bell Potter rates as top buys appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Nick Scali and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When I look for opportunities in the ASX 200, I tend to focus on shares with clear growth pathways and expanding market opportunities.

That usually leads me toward companies that are building platforms, scaling globally, or reshaping their industries.

Here are three ASX 200 shares that stand out to me right now.

Xero Ltd (ASX: XRO)

Xero is evolving into something much bigger than accounting software.

At its core, it sits on top of financial data for millions of small businesses. That position creates a powerful foundation for expanding into adjacent services and delivering more value over time.

What I find particularly interesting right now is how the company is leaning into artificial intelligence (AI).

According to its recent investor briefing, Xero sees the long-term opportunity expanding its total addressable market by around four times as AI capabilities are layered into its platform.

That shift changes how I think about the business. It moves beyond subscription accounting software and toward a broader system that helps businesses make decisions, automate processes, and improve performance.

On top of that, the integration with Melio is opening up a large US payments opportunity, which adds another growth driver.

I think Xero is building a platform that can continue to expand its reach and relevance over time.

Hub24 Ltd (ASX: HUB)

HUB24 is benefiting from structural change within the wealth industry.

More advisers are moving toward platform-based solutions, and HUB24 continues to capture that shift.

What stands out is the pace at which the business is scaling. In its latest results, platform funds under administration reached $152.3 billion, supported by record net inflows of $10.7 billion in the half.

That growth reflects strong demand from advisers and ongoing market share gains.

But it isn’t settling for that. HUB24 continues to invest in new solutions, including an emerging ecosystem that leverages AI and integrated tools to improve adviser productivity.

For me, this is a business where growth is driven by both industry tailwinds and continued innovation within its platform.

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare is another ASX 200 share I think could be a best buy. It is shaping into a very different business following its merger with Chemist Warehouse.

It now combines wholesale distribution with a large and growing retail network, which creates a broader and more scalable model.

The recent first-half results highlight how that combination is performing. Revenue increased 15% to $5.5 billion, with strong growth across both domestic and international markets, supported by expanding store networks and increasing demand.

What I find attractive is the runway ahead. The company continues to open new stores, expand its private label offering, and drive efficiencies through scale. 

Overall, I think Sigma is transitioning into an integrated healthcare platform with multiple ways to grow.

Foolish takeaway

What stands out to me is how each of these businesses is expanding its opportunity set.

Xero is building a broader platform around financial data and AI, Hub24 is scaling alongside structural growth in platform-based investing, and Sigma Healthcare is strengthening its position across retail and distribution.

That ongoing expansion is what I look for when identifying high-quality ASX 200 shares to buy now.

The post I think these are some of the best ASX 200 shares to buy now appeared first on The Motley Fool Australia.

More reading

• Experts name 3 ASX 200 tech shares to buy now
• 2 ASX ETFs that could be a perfect for a tech rally
• How to build a $500,000 ASX share portfolio step by step
• ASX 200 tech shares rocket 13% as long-awaited sector rebound accelerates
• The tech rally is back: here are 5 ASX shares leading the charge

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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.

Australian investors, particularly those approaching retirement, often choose to target equities that generate passive income. 

This is often done using dividend shares, or dividend paying ASX ETFs. 

The trade off for many investors when targeting passive income is missing out on strong capital gains.

However there is one fund that stands out as being able to offer both. 

ASX leads global dividends

Some investors may not realise that Australia has historically offered some of the highest average dividend yields in the world. 

As of December 31, 2024, the trailing 12-month dividend yield of the S&P/ASX 300 Index (ASX: XKO) was approximately 3.5%.

According to research from S&P Global, this outpaced Europe, Canada and the US. 

However it is worth noting it’s significantly lower than its long-term average of approximately 4.5%.

According to Vanguard, Australia’s affinity with equity markets and our higher than the global average dividend rate, means that many investors look to shares for that income. 

But often there is a trade-off to be made between income and growth.

The exception to this rule is the Vanguard Australian Shares High Yield ETF (ASX: VHY). 

ASX ETF overview

The Vanguard Australian Shares High Yield ETF seeks to track the return of the FTSE Australia High Dividend Yield Index. 

According to Vanguard, it currently yields around 5% per annum (paid quarterly) – even higher when including franking credits. 

That means a $100k investment in this ASX ETF would have paid roughly $5,000 annually in distributions, before franking – a robust income source for retirees or income-focused investors.

Passive income and growth 

What stands out about this fund, is it has also generated strong growth alongside consistent dividends. 

It has delivered about 9–10% total return per year over the last 5 years, closely matching the overall Australian share market’s performance while outpacing many dedicated “high-income” funds. 

Notably, VHY’s total return (income + price appreciation) has surpassed the pure income strategies of some competitors. By contrast, VHY provided ample income and share-price growth, helping investors’ portfolios grow more over time.

This combination of passive income and growth is thanks to the underlying fund strategy.

VHY follows a transparent index-based strategy: it tracks the FTSE Australia High Dividend Yield Index, dividend-paying Australian companies. This rules-based approach ensures the fund consistently tilts toward above-average yielders while avoiding subjective stock picks.

The result is a straightforward, “core” equity income holding for clients – easy to understand and explain. In contrast, some income-focused peers use complex active tactics (e.g. rotating stocks around ex-dividend dates or writing call options for extra income).

Importantly for investors, the fund also comes with an annual fee of just 0.25%.

The post Why this is the best income ASX ETF for retirees appeared first on The Motley Fool Australia.

More reading

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• Guess which ASX ETF just hit an all-time high 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investors often target blue-chip ASX 200 shares for lower volatility and consistent earnings. 

It’s often assumed that because these companies are well-established, there is limited upside. 

However, here are some blue-chip stocks that have recently received price targets from brokers indicating upside of 20% or more. 

Qantas Airways Ltd (ASX: QAN)

With oil prices skyrocketing and geopolitical tension impacting global travel, Qantas shares have faced some volatility recently. 

The company noted that it is facing uncertainty due to Middle East tensions and rising jet fuel refining margins. 

However, it has hedged crude oil exposure and remains confident in fuel supply through April and May. 

Strong international demand – especially to Europe – has led the airline to redeploy aircraft and cut domestic capacity, with higher airfares expected to lift unit revenue by about 5% in the second half of FY26.

These headwinds have pushed its stock price down by 12% year to date. 

In good news for prospective buyers, the Qantas share price could now be a significant value. 

Macquarie recently placed a $11 price target on the airline’s shares, which would be a 20% rise from the share price at the time of writing. 

As a bonus, experts are tipping a healthy dividend yield for the ASX 200 company throughout the next few years. 

Telix Pharmaceuticals Ltd (ASX: TLX)

Like many ASX 200 healthcare shares, the Telix stock price has fallen heavily in the last 12 months. 

However, the commercial-stage biopharmaceutical company has rebounded significantly over the past month. 

Brokers believe this could be the start of a longer rally. 

Recently, Bell Potter placed a buy rating and $19 price target on Telix shares after the company announced the refinancing of its convertible note facility. 

The share price at the time of writing is hovering around $14.59, which indicates an upside potential of 30%. 

Life360 Inc (ASX: 360)

Despite now climbing 26% over the last 6 days at the time of writing, the Life360 share price remains significantly below its yearly highs. 

The company’s core product is a private family and friends social networking app that allows users to communicate and share their locations.

At the time of writing, this ASX 200 stock is exchanging hands for $22.72 per share. 

However, this is significantly below the $36.02 average price targets of 10 analysts via TradingView. 

Should this ASX 200 stock reach that level in the next 12 months, it would be a 58% rise from current levels. 

The post 3 ASX 200 shares tipped to rise 20% or more appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Aaron Bell has positions in Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Macquarie Group, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended Life360 and Macquarie Group. 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.

If you are looking to take advantage of recent weakness in the tech sector, then it could pay to listen to what analysts are saying this week, courtesy of The Bull.

That’s because three ASX 200 tech shares have just been named as buys. Let’s see what they are recommending:

Aristocrat Leisure Ltd (ASX: ALL)

The team at Catapult Wealth thinks that Aristocrat Leisure could be an ASX 200 tech share to buy this week.

It believes that AI disruption concerns are overblown and have created a buying opportunity for investors. It explains:

Aristocrat makes and distributes slot machines and is a major player in online casinos. Aristocrat’s share price has fallen considerably this calendar year, driven partly by the fear of artificial intelligence (AI) competition and currency related issues. While AI does increase the risk of competition via new entrants, particularly in the online space, the highly regulated nature of the industry provides some protection for Aristocrat.

We believe any risk to Aristocrat’s position is overblown, and this weakness presents an opportunity to buy a company with a strong history of earnings growth at the lower end of its historic multiples range.

Life360 Inc (ASX: 360)

Analysts at Bell Potter have named location technology company Life360 as a tech share to buy now.

The broker believes that its shares offer an attractive risk-reward profile at current levels. Bell Potter explains:

This information technology company provides a mobile networking safety app for families. The company offers a compelling growth story driven by its unique position at the intersection of safety, connectivity and subscription-based monetisation. With accelerating premium subscriber growth alongside improving unit economics, the company continues to benefit from strong engagement and pricing power.

The integration of hardware and software ecosystems provide options for further monetisation, while operating leverage is beginning to emerge. Given strong top line momentum, expanding margins and the recent sell-off in line with the broader technology sector, Life360 presents an attractive risk-reward profile, particularly at current levels.

Xero Ltd (ASX: XRO)

Bell Potter has also named cloud accounting platform provider Xero as an ASX 200 tech share to buy.

The broker thinks that AI disruption fears are unwarranted and that recent share price weakness has created a buying opportunity for investors. It commented:

This accounting software provider remains a high quality business, underpinned by strong subscriber growth and increasing average revenue per user through product expansion. Xero continues to improve operating leverage as the business scales up globally, with margins expected to expand in response to cost discipline. Importantly, Xero is transitioning from a growth-at-all-costs model to one focused on profitability and cash generation, which should support a re-rating in valuation.

With a large addressable small-to-medium sized market and increasing penetration of digital accounting, Xero is well positioned to deliver sustained double-digit earnings growth. Near term catalysts include further margin upgrades and continued execution across key regions. We believe concerns related to the impact of artificial intelligence are overblown, and the share price sell-off presents a compelling buying opportunity.

The post Experts name 3 ASX 200 tech shares to buy now appeared first on The Motley Fool Australia.

More reading

• 2 ASX ETFs that could be a perfect for a tech rally
• How to build a $500,000 ASX share portfolio step by step
• ASX 200 tech shares rocket 13% as long-awaited sector rebound accelerates
• Which ASX 200 tech stock has Bell Potter just downgraded?
• The tech rally is back: here are 5 ASX shares leading the charge

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

Building a portfolio in 2026 does not need to start with dozens of positions.

In many cases, a small number of well-chosen exchange traded funds (ETFs) can do most of the heavy lifting. The trick is finding funds that each play a clear role, so they work together rather than overlap.

Here are three ASX ETFs that could form the backbone of a portfolio this year.

VanEck MSCI International Quality ETF (ASX: QUAL)

The first ASX ETF to consider is the VanEck MSCI International Quality ETF.

Instead of chasing the fastest-growing companies, this fund leans into consistency.

It focuses on businesses with strong returns on equity, stable earnings, and low debt. These are often the companies that quietly keep delivering, regardless of the economic backdrop.

Its holdings include Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and Visa (NYSE: V).

What makes the fund interesting in a portfolio is its role as a stabiliser. It does not rely on one theme or one cycle. It is built around the idea that high-quality businesses tend to keep compounding over time. It was recently recommended by analysts at VanEck.

iShares S&P 500 ETF (ASX: IVV)

Another ASX ETF that could form a core position is the iShares S&P 500 ETF.

It is often seen as a simple way to invest in the US market, but it can also be thought of as a proxy for global innovation.

Many of the world’s most influential companies are listed in the United States, and this ETF gives broad exposure to them in one trade.

Its holdings include NVIDIA (NASDAQ: NVDA), Amazon.com (NASDAQ: AMZN), and Alphabet (NASDAQ: GOOGL).

The strength of the iShares S&P 500 ETF is coverage. It does not try to pick winners. It owns the market, allowing the biggest and most successful companies to naturally take up more space over time.

BetaShares Australian Quality ETF (ASX: AQLT)

A third ASX ETF that could complete the picture is BetaShares Australian Quality ETF.

It applies a similar quality lens as the VanEck MSCI International Quality ETF, but to ASX shares.

It selects companies based on factors like profitability, earnings stability, and balance sheet strength. This results in a portfolio that looks quite different to the broader ASX 200.

Its holdings can include names such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Wesfarmers Ltd (ASX: WES).

This means that rather than always being heavily weighted to just banks and miners, it tilts toward businesses with stronger underlying fundamentals. It was recently recommended by analysts at BetaShares.

The post 3 ASX ETFs to build a portfolio around in 2026 appeared first on The Motley Fool Australia.

More reading

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• A 2026 market crash could be a once-in-a-decade chance to build a $1 million ASX portfolio
• How to build a $500,000 ASX share portfolio step by step
• Why this ASX ETF is one of the best buys for Australians
• Stop ‘saving’, start investing! How to target a $1 million ASX share portfolio

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 Alphabet, Amazon, Apple, Microsoft, Nvidia, Visa, Wesfarmers, and iShares S&P 500 ETF and is short shares of Apple. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, BHP Group, Microsoft, Nvidia, Visa, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

NextDC Ltd (ASX: NXT) and Wesfarmers Ltd (ASX: WES) shares are popular with investors and feature in many portfolios across the country.

But which one should you buy this week if you don’t already own them?

To narrow things down, let’s see what analysts at Red Leaf Securities are saying about the two popular ASX 200 shares, courtesy of The Bull.

Here’s what they are recommending investors do with these shares right now:

NextDC shares

Red Leaf is recommending this leading data centre operator’s shares as a buy this week.

It highlights the company’s strong forward order book as a reason to buy. In addition, it notes that NextDC’s strategic partnerships and expanding data centre network leave it well-positioned to capitalise on structural tailwinds in digital transformation and infrastructure demand.

Commenting on the growing data centre operator, Red Leaf said:

Australia’s leading data centre operator provides connectivity and colocation services to cloud, enterprise and government clients across Australia and the Asia Pacific. Its network of certified facilities underpin critical digital infrastructure amid surging demand for cloud, artificial intelligence and high performance computing.

NextDC recently launched a $1 billion hybrid securities offer to fund expansion. A strong forward order book reflects institutional confidence in its long term growth. The company continues to build new facilities and sign strategic partnerships, positioning it to capture structural tailwinds in digital transformation and infrastructure demand.

Wesfarmers shares

Red Leaf isn’t as positive on Wesfarmers. It has named the Bunnings, Kmart, and Officeworks owner’s shares as a sell this week.

While it likes its strong network of retail brands, it is concerned about slowing consumer demand and cost pressures. In addition, it believes the company’s shares are largely fully valued now.

As a result, it has suggested that investors trim positions in Wesfarmers if they are seeking a more attractive risk-reward proposition.

Commenting on Wesfarmers and its shares, Red Leaf said:

Wesfarmers is a diversified industrial conglomerate. Major retail brands include Bunnings, Kmart, Target and Officeworks. Its businesses are household names, but recent trading suggests slowing consumer demand and cost pressures are weighing on sentiment.

With much of its value already priced in amid a mixed outlook on near term retail growth, Wesfarmers lacks fresh catalysts to drive meaningful upside. Trimming positions into strength may be prudent for investors seeking a better risk-reward proposition.

The post NextDC vs Wesfarmers shares: Which is a buy? appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• Why NextDC, Viva Energy and NAB shares are catching investor interest on Monday
• How many Wesfarmers shares do I need to buy for $1,000 of annual passive income?
• NextDC rally comes to a halt. Here’s what just dropped
• NextDC reports 60% increase in contracted utilisation growth and higher capex guidance

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

Global focus remains firmly on the ongoing conflict in Iran, as the Aussie market has lagged behind global equities. 

Fresh analysis from the team at Betashares has laid out the roadmap for a best and worst-case scenario this week. 

Global equities trending up

International stocks rose further last week, reflecting hopes around US-Iran peace talks.

Global equity markets have now staged a three-week rebound on peace-talk hopes. The S&P 500 Index (SP: .INX) is now trading above the levels prevailing just before the Iran war began.

According to Betashares, US stocks fell the least during the initial sell-off and have so far rebounded the hardest, with the NASDAQ-100 Index (NASDAQ: NDX) ending last week 6.9% above its 27 February weekly close.

Interestingly, while the NASDAQ-100 and S&P 500 continued to rise, the S&P/ASX 200 Index (ASX: XJO) dipped 0.15% last week.

Betashares Chief Economist David Bassanese said in a release today that, in theory, a two-week ceasefire deal was supposed to have included a reopening of the Strait of Hormuz. 

But within 24 hours of saying the Strait was open, Iran said it was closed again – due to the US’ own blockade of Iranian-linked ships. 

At the time of writing, there’s news of the US seizing an Iranian ship, for which Iran has vowed retaliation. Iran has also denied US reports suggesting talks were set to resume.  

Suffice to say confusion reigns supreme! If there’s one guiding light for markets, it’s the idea that the longer the war drags on and the higher oil prices go, the greater the political pressure on President Trump to cut a deal. In short, in TACO we trust – though patience is being tested.

The week ahead

Betashares commentary said this week we are facing a best and worst-case scenario.

• The worst-case scenario is Iranian attacks on US military ships, potentially even sinking one with casualties. That could spark an “all bets are off” resumption of US/Israel missile strikes, potentially including Iranian energy infrastructure, which in turn could spark Iranian attacks on energy and water infrastructure across the Middle East.
• The best-case scenario is no tit-for-tat ship attacks and an agreement to hold more talks. 

It will be worth keeping track of technology shares here in Australia after a strong rebound last week. 

At the time of writing, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is up a further 1% today, after a massive rally last week.

How to target these sectors

For investors who expect the S&P 500 and/or NASDAQ-100 Index to keep rumbling ahead, there are several ASX ETFs that offer exposure: 

• iShares S&P 500 ETF (ASX: IVV)
• Vanguard S&P 500 US Shares Index ETF (ASX: V500)
• BetaShares NASDAQ 100 ETF (ASX: NDQ)

Meanwhile, if you expect Aussie tech to keep rising, the Betashares S&P ASX Australian Technology ETF (ASX: ATEC) is worth considering. 

The post Best and worst case scenarios this week for global equities: Expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF and iShares S&P 500 ETF and is short shares of BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.