Amid significant ASX share market volatility in recent weeks, there are a number of appealing opportunities, according to experts.

Some businesses may be impacted by higher costs (from higher energy costs), while others may be able to increase their profitability.

It’s curious when one analyst rates a business as a buy, but it’s fascinating when there are numerous buy ratings on the same business. We’re going to look at two of the most highly rated ASX shares out there right now, in terms of the number of buy ratings on them.

Coles Group Ltd (ASX: COL)

Coles is one of Australia’s largest supermarket operators. According to CMC Invest, there are currently 11 buy ratings on the supermarkets.

One of the brokers that likes Coles is UBS, which has a buy rating on the business with a price target of $24.

In a recent note, UBS highlighted the strength of the ASX share regarding its ongoing sales growth. It said that its supermarket business is delivering strong execution because of promotional effectiveness and cost leadership. At the same time, it’s trading at a sizeable price/earnings (P/E) ratio gap to Woolworths Group Ltd (ASX: WOW).

In the first six months of FY26, the supermarket division of Coles reported sales growth of 3.6% and underlying operating profit (EBIT) growth of 14.6%. This helped the overall business deliver underlying net profit growth of 12.5% to $676 million, despite challenges in the liquor division.

UBS also highlighted its recent investments in its supply chain and new warehouses will help product availability and improve its online offering, which help provide confidence for sales growth in 2026.

The broker projects the business could generate $1.25 billion of net profit in FY26 and pay an annual dividend per share of 77 cents.

Judo Capital Holdings Ltd (ASX: JDO)

Another business that is highly rated by analysts is small and medium business-focused bank Judo. A significant portion of its funding comes from term deposits for businesses, SMSFs and individuals.

According to CMC Invest, there have been seven recent buy ratings on the business.

One of the brokers that likes Judo is UBS, with a buy rating and price target of $2.25.

UBS thought the ASX share’s FY26 half-year result was impressive, with “plenty going right”. The broker highlighted that management are having improving confidence in lending book growth and net interest margin (NIM) delivery.

Management has guided that the NIM could be 3.15% in the second half of FY26. Judo also said that management’s guidance for cost-to-income (CTI) to reach around 30% is “achievable given NIM can continue to expand from deposit growth and mix”.

UBS said that it thinks Judo looks “well placed to benefit from structural tailwinds to business banking credit growth”.

The broker forecasts the business could generate a net profit of $133 million in FY26, which would represent significant year-on-year growth. UBS also predicts that the business could start paying a dividend in the 2027 financial year.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I’d buy today and not check for a year
• 3 dependable ASX shares to add to a superannuation fund in 2026
• 2 great ASX 200 blue-chip shares I’d buy right now
• Why these ASX shares could be buys in today’s volatile market
• Should I invest $5,000 in Coles shares now?

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

Some weeks feel like a good time to sit back and do nothing.

Others feel like an opportunity to lean in.

With several high-quality ASX 200 shares trading well below their highs, I think this is one of those moments where it’s worth taking a closer look at strong businesses that don’t often come down to these levels.

Here are three I’d be comfortable buying this week.

CSL Ltd (ASX: CSL)

CSL has had a tough run, with its share price falling significantly over the past year.

But when I look past the recent weakness, I still see one of the highest-quality biotech businesses in the world.

It operates in global plasma therapies, vaccines, and specialty medicines, with strong margins and a long history of innovation.

Short-term challenges have weighed on sentiment, but I don’t think they change the long-term outlook. Demand for its products remains supported by ageing populations and ongoing healthcare needs.

For me, this looks like a case where the share price has moved more than the underlying business.

Netwealth Group Ltd (ASX: NWL)

Netwealth is another high-quality ASX 200 share that has come off its highs despite continuing to perform well.

It operates a wealth management platform that is benefiting from the ongoing shift toward financial advice and digital investment solutions.

What stands out to me is its ability to consistently attract net inflows and grow funds under administration.

That kind of momentum can compound over time, particularly as more advisers move toward independent platforms.

I think Netwealth remains a high-quality growth business with strong long-term potential and is now trading at a compelling price.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of those businesses I keep coming back to.

It has a diversified portfolio that includes retail, chemicals, and industrial operations, which gives it multiple earnings streams.

The company also has a strong track record of capital allocation, whether that’s reinvesting in its existing businesses or making strategic acquisitions.

What I like most is its balance of stability and growth. Businesses like Bunnings provide consistent earnings, while newer initiatives offer additional upside over time.

It may not always look cheap, but when the share price pulls back, I think it’s worth paying attention.

Foolish takeaway

CSL, Netwealth, and Wesfarmers are all very different businesses, but they share a common theme of quality.

They have strong positions in their industries, proven track records, and the ability to grow over time.

After recent share price weakness, I think they’re worth considering for investors looking to buy high-quality ASX 200 shares this week.

The post Why I’d buy these high-quality ASX 200 shares this week appeared first on The Motley Fool Australia.

More reading

• $20,000 of Wesfarmers shares can net me $820 in passive income!
• How to survive an ASX share market crash
• CSL shares look primed to take off — Here’s why
• 3 dependable ASX shares to add to a superannuation fund in 2026
• How to build $100,000 a year in passive income from ASX shares

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

At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Domino’s Pizza Enterprises Ltd (ASX: DMP) continues to be the most shorted ASX share with short interest of 16%. This is up week on week. Short sellers appear doubtful that the struggling pizza chain operator’s turnaround strategy will be a success.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 15.3%, which is up again since last week. This radiopharmaceuticals company has been struggling with FDA approvals. It seems that short sellers don’t believe regulators will be approving its therapies any time soon.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise again to 15.1%. This wine giant has been battling very tough trading conditions, with consumers focusing on value rather than its premium wines.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.4%, which is down week on week. This may be due to the burrito seller struggling the United States market, which was supposed to be its largest growth opportunity.
• Polynovo Ltd (ASX: PNV) has short interest of 13.3%, which is up again since last week. This medical device company’s shares trade with a premium valuation.
• Nanosonics Ltd (ASX: NAN) has 11.7% of its shares held short, which is up week on week again. This infection prevention company’s performance has been underwhelming in FY 2026, with profit before tax falling 3% during the first half.
• Boss Energy Ltd (ASX: BOE) has short interest of 11.2%, which is down since last week. Short sellers continue to close positions in the uranium producer, which was the most shorted ASX share for much of 2025.
• IDP Education Ltd (ASX: IEL) has 10.7% of its shares held short, which is down week on week again. Short sellers have been targeting this student placement and language testing company due to unfavourable changes to visa rules in key markets.
• Lynas Rare Earths Ltd (ASX: LYC) has short interest of 10.5%, which is flat week on week. This is likely due to valuation concerns after the rare earths producer’s shares rocketed over the past 12 months.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.3%, which is up week on week. There are concerns that the travel agent won’t deliver on its revenue margin targets, especially given how the war in the Middle East could impact travel markets.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• Bell Potter says these ASX 200 stocks could rise 50%+
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• Brokers name 3 ASX shares to buy right now
• 3 ASX 200 stocks screaming higher in this week’s sinking market

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, Nanosonics, PolyNovo, Telix Pharmaceuticals, and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Domino’s Pizza Enterprises, Flight Centre Travel Group, Nanosonics, PolyNovo, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Premier Investments Ltd (ASX: PMV) shares have been under pressure over the past 12 months.

During this time, the ASX 200 share has lost almost 40% of its value.

While this is disappointing for shareholders, it could be a buying opportunity for the rest of us, according to Bell Potter.

What is the broker saying?

Bell Potter highlights that Premier Investments released its half-year results last week and delivered a result largely in line with expectations.

However, the main story from the result was the announcement of a strategy reset for the Smiggle brand. It explains:

Premier Investment’s 1H26 result was largely in line the company guidance and market expectations at the Premier Retail EBIT (Pre-AASB 16 ex-Peter Alexander UK and other non-recurring items) level, however revenue a ~3% miss to Consensus/BPe. The FY26 guidance of $183m Retail EBIT was also in line with Consensus/BPe, but the interim dividend was a beat to Consensus/BPe while the trading update for the first 7 weeks of 1H26 commenced with the company noting a good momentum in the core brand, Peter Alexander (~70% of Premier Retail) ahead of the pcp.

The key announcement was the strategy reset undertaken in Smiggle to address the current poor performance in the brand with product repositioning into innovated new stock, speed to market and brand elevation planned in 2H26 (ongoing half), with the new and improved Smiggle division to return to positive growth (in decline since 1H24) by the end of 1H27. The cash and inventory position remained healthy coming ahead of BPe. The company also announced exploring of global wholesale partnerships for the Peter Alexander (PA) brand as the next leg of growth.

Big potential returns for this ASX 200 share

According to the note, the broker has retained its buy rating on this ASX 200 share with a trimmed price target of $18.00 (from $20.00).

Based on its current share price of $11.98, this implies potential upside of 50% for investors over the next 12 months.

But the returns don’t stop there, according to Bell Potter. The broker is forecasting a very generous fully franked dividend yield of 7% over the period.

Commenting on its buy recommendation, the broker said:

Our PT is based on a SOTP with a 11x (prev. 13x) multiple for PA, 4x (prev. 5x) for Smiggle and a current market valuation for Breville Group (BRG). We view PMV as trading at a discount to our coverage, considering the Premier Retail division with two global roll-out worthy brands together with equity investments, land bank and cash position while retaining a strong balance sheet supportive of M&A. Our SOTP sees an attractive $1.8b EV for the key PA brand vs PMV’s $1.9b market capitalization.

The post Why this ASX 200 share could be dirt cheap with a 7% dividend yield appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Why Ampol, Atlantic Lithium, Brightstar, and Premier Investments shares are rising today
• Premier Investments shares jump 8% on results and big interim dividend
• Premier Investments posts $101.7m half-year profit and lifts dividend
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’m calling Universal Store Holdings Ltd (ASX: UNI) an ASX value stock that looks too good to miss because of the reduction of the share price, the growth of earnings and the cheap price/earnings (P/E) ratio.

Universal Store is a fashion-focused ASX retail share that sells clothes focused on younger shoppers. Its main two brands are Universal Store and Perfect Stranger, though it also sells through CTC (which includes Thrills and Worship).

Unfortunately for shareholders, the Universal Store share price has already 14% in March and it seems likely that the business could face more pain this week. I think it’d be an even more attractive buy.

Continuing impressive growth

The FY26 half-year result was a strong reflection of its ability to deliver growth even in challenging trading conditions.

In the first six months of the 2026 financial year, group sales grew 14.2% to $209.6 million, with Universal Store sales growth of 11.9% to $174.8 million and Perfect Stranger growth of 41.5% to $17.8 million. Even CTC delivered sales growth, with a rise of 4.8% to $23.2 million.

Profitability is increasing too. Increasing scale helped the gross profit margin rise 150 basis points (1.50%) to 62.1%. Combined with cost discipline, the underlying operating profit (EBIT) grew 23.2% to $43.6 million and underlying net profit after tax (NPAT) rose 22% to $28.3 million.

I’m particularly excited by the potential of the Perfect Stranger brand which is rapidly growing. I expect it to make a greater contribution to the ASX value stock as time goes on. Three new stores were opened during the period, giving the brand 22 stores at the end of HY26.

The business is expecting to grow its overall store count by at least 13 in FY26 and management are pursuing additional store opportunities while being prudent.

In the first several weeks of the second half of FY26, the business reported direct-to-customer sales growth of 13.5%, which included Perfect Stranger Sales growth of 39%.

This isn’t just one year of strength, but it has delivered year after year performance since the onset of COVID-19.

It’s growing rapidly, but it isn’t priced that highly.

The ASX value stock’s cheap valuation

The experts at UBS project that the business could make net profit of $43 million in FY26, which translates into earnings per share (EPS) of 55 cents.

At the current Universal Store share price, that means it’s trading at 15x FY26’s estimated earnings.

In terms of next year’s valuation, it’s forecast by UBS to see net profit grow by 14% to $49 million, putting it at 13x FY27’s estimated earnings. With the potential profit growth figure similar to the P/E ratio number, we’re talking about a PEG ratio of close to 1, which is very attractive in my book.

Over the next three years, I think this ASX value stock has a great shot at outperforming the S&P/ASX 200 Index (ASX: XJO), including the dividends.

The post After falling 14%, this ASX value stock looks filthy cheap with a P/E of just 15! appeared first on The Motley Fool Australia.

More reading

• These cheap ASX dividend shares could rise 20% to 30%
• Why buying ASX shares in March could supercharge your wealth
• A once-in-a-decade chance to earn a supersized passive income from ASX shares?
• Bell Potter names more of the best ASX dividend shares to buy this month
• 2 ASX shares highly recommended to buy: Experts

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

Wesfarmers Ltd (ASX: WES) shares are likely to be volatile this week, but it could be a smart ASX dividend share pick for passive income amid all of the pain.

Wesfarmers is best known as the owner of Bunnings, Kmart and Officeworks. But, it owns plenty of other businesses like Priceline, Target, healthcare businesses, chemical, energy and fertiliser (WesCEF) businesses, and more.

I believe that out of all ASX retail shares, Wesfarmers could be a leading choice because of its focus on providing customers with good-value products.

Good idea for passive income

The business has increased its annual payout per share since 2020 following the demerger of Coles Group Ltd (ASX: COL). Not many ASX retail shares can point to a record like that.

Companies with a consistent record of growth seem more likely to continue increasing their payout, as long as the profit keeps heading higher over the long-term.

Analysts are currently optimistic that the business can continue growing its shareholder payments.

According to Commsec, the business is currently projected to pay an annual dividend per share of $2.16 in FY26 and then $2.33 in FY27.

Given how much volatility Wesfarmers shares could face this week, I’m going to just calculate what the passive income would be using the valuation at the time of writing.

The forecast FY26 payout translates into a grossed-up dividend yield of more than 4.2%, including franking credits. It’s a cash dividend yield, excluding franking credits, of around 3%.

$20,000 investment in Wesfarmers shares

Investing $20,000 into the retail giant (at the time of writing) and unlocking those yields would mean receiving cash payments of around $600 per year and $840 of grossed-up dividend income, including franking credits in FY26.

Of course, that’d just be year one.

If the projections on Commsec are right, then shareholders could see an 8% increase in the dividend payout in FY27, which would mean the figures I mentioned above would become approximately 8% larger year-over-year.

Is this a good time to invest in Wesfarmers shares?

A volatile market is not an easy thing to navigate.

However, if we just ask ourselves the question of whether we’d prefer to invest at a higher valuation or lower valuation, then I think the answer is obvious.

The market is presenting us with lower share prices almost across the board. This week seems like a good time to invest because of the lower valuations.

I know I’ll be putting some money into the ASX share market today.

The post $20,000 of Wesfarmers shares can net me $820 in passive income! appeared first on The Motley Fool Australia.

More reading

• 3 dependable ASX shares to add to a superannuation fund in 2026
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• How I’d build a world-class ASX passive income portfolio
• 2 great ASX 200 blue-chip shares I’d buy right now

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 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.

A particular ASX dividend stock has fallen significantly – down 20% in six months – and now it looks like a great time to buy due to its valuation and dividend yield.

I’m always on the lookout for great dividend opportunities because I like to add the dividend cash flow I receive into my own personal finances.

I recently bought shares in Hearts and Minds Investments Ltd (ASX: HM1) earlier this month when it was trading at around $2.70 and I still think it looks like a wonderful buy today. Let’s get into why.

Great dividend credentials

The ASX dividend stock operates as a listed investment company (LIC), meaning the board of directors have significant control over what size of dividend the company is going to pay to shareholders.

Pleasingly, Hearts & Minds has increased its annual dividend each year since FY23 and has announced guidance that it intends to increase its payout by 0.5 cents every six months for the foreseeable future, subject to there being no sustained period of “investment market underperformance”.

The business has provided guidance that it’s going to pay an annual dividend per share of 19.5 cents in FY26, which translates into a grossed-up dividend yield of approximately 10%, including franking credits.

If it continues that dividend growth trend, the FY27 payout could become a grossed-up dividend yield of 11%, including franking credits.

A very large and growing dividend is a very attractive feature, in my view.

Great time to invest

ASX LICs make it easy to assess their underlying value by regularly telling investors about the net tangible assets (NTA) per share.

In other words, what are all of the shares and cash that it owns worth on a per-share basis? This can help reveal how much a LIC is really worth.

Hearts & Minds tells investors each week what its NTA is. At 13 March 2026, it had pre-tax NTA of $3.16 – the Hearts & Minds share price is valued at an 11% discount to this.

I think a good LIC trading at a double-digit discount is an attractive prospect for good long-term returns.

Compelling portfolio

The ASX dividend stock’s portfolio is not decided by one person or one funds management outfit like most LICs are.

Instead, a significant portion of the portfolio is decided by a continuing group of fund managers, who work for free so that Hearts & Minds can donate 1.5% of its net assets each year to medical research.

Another portion of the portfolio is made up of picks that are pitched at an annual investment conference. The idea is that these ‘best picks’ from investment professionals are combined in a portfolio that can hopefully perform well. These picks are also free of charge.

Over the three years to 28 February 2026, the Hearts & Minds portfolio delivered an average return per year of 10.8%, which gives it plenty of accounting profit to pay the growing dividend that it is now doing so.

The post 1 ASX dividend stock down 20% I’d buy right now appeared first on The Motley Fool Australia.

More reading

• How to invest $10,000 to aim for a 15% dividend yield
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Motley Fool contributor Tristan Harrison has positions in Hearts And Minds Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are hunting some good value ASX 200 stocks to buy right now, then read on.

That’s because Bell Potter believes that one well-known company’s shares could be seriously undervalued at current levels.

Which ASX 200 stock?

The stock that Bell Potter is recommending to clients is JB Hi-Fi Ltd (ASX: JBH).

It is of course one of Australia’s leading retailers, responsible for the JB Hi-Fi, E&S, and The Good Guys brands.

Bell Potter has been looking back on the ASX 200 stock’s half-year results. It was pleased with the company’s performance during the half but acknowledges that the second half has started a touch weaker than expected. It said:

JB Hi-Fi (JBH)’s 1H26 result overall from a revenue, gross/net profit and dividends perspective saw marginal beats to Consensus/BPe. Good Guys (GG) and JBH NZ were the two key stand-out performers (vs BPe), while JBH Aus’s ability to maintain +5% comparable sales growth despite cycling a strong +8.8% in 2Q26 was resilient. The Jan-26 trading update (start of 2H26) of +2.4%, +16.7% and +2.7% in comparable sales growth for JBH Aus, NZ and GG respectively saw NZ tracking ahead of BPe, however JB Aus, GG and e&s slightly behind BPe.

In light of this, the broker has trimmed its earnings estimates slightly. It adds:

We make changes to our revenue assumptions factoring in the Jan trading update and the upcoming challenging comps in 4Q26 as JBH Aus cycles +8.2% comparable sales during the seasonal quarter driven by the Nintendo Switch 2 sales (post launch in Jun-25). We also apply some conservatism through our medium-term forecasts to see our revised revenue estimates growing by 4-5% in FY27/28 and some market share related investments in margins to see largely flat GM/EBIT margins (GM ~22% for JBH Aus, ~23% for GG, ~17% for JBH NZ and ~29% for e&s). […] The net result sees our NPAT forecasts -1%/-4%/-8% for FY26/27/28e.

Could be worth $90 per share

According to the note, Bell Potter has retained its buy rating on JB Hi-Fi’s shares with a lowered price target of $90.00.

Based on its current share price of $71.70, this implies potential upside of over 25% for investors over the next 12 months.

In addition, it is expecting a 4.7% dividend yield in FY 2026, boosting the total potential return to approximately 30%.

Commenting on its buy recommendation, the broker said:

Our PT decreases by 24% to $90.00 (prev. $119.00). Along with our earnings revisions, we also reduce our target P/E multiple by 30% to ~19x (prev. 27x) on a blended FY26/27e basis (skewed to FY27e). Our target multiple is driven by a ~12% premium applied to the current trading multiple. We see some defensiveness in the name with the semi-discretionary characteristics as stretched consumer wallets take a larger share in technology products, to retain our view of JBH as one of the key preferences within our sector coverage.

The stock continues to trade at an 18-month low on a ~17x FY26e P/E (BPe), and we see valuation support considering the relative defensiveness and margin levers in the business model.

The post Guess which ASX 200 stock could be worth $90 a share appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• JB Hi-Fi vs. Harvey Norman: Which is the better retail buy?
• A once-in-a-decade chance to earn a supersized passive income from ASX shares?
• 3 top ASX dividend share buys for passive income in March
• JB Hi-Fi vs. Wesfarmers: Which retail stock deserves a place in your 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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s been a painful year for investors in leading ASX tech stocks WiseTech Global Ltd (ASX: WTC) and Xero Ltd (ASX: XRO).

Both ASX tech stocks have fallen around 50% over the past 12 months and are down well over 30% so far in 2026. That’s a sharp contrast to the broader market, with the S&P/ASX 200 Index (ASX: XJO) down just 3% year to date.

Despite the heavy sell-off, broker sentiment remains strikingly bullish. In fact, many analysts see upside of 90% or more for the two ASX tech stocks.

So, are these beaten-down tech leaders on the verge of staging a massive comeback?

WiseTech Global: Global scale, but execution concerns

WiseTech Global has built a dominant position in logistics software through its CargoWise platform, which is used by many of the world’s largest freight forwarders.

The company’s strength lies in its global reach, high-margin recurring revenue, and mission-critical software. Once embedded, its platform is difficult for customers to replace, creating strong pricing power and long-term growth potential.

Recent earnings have continued to show solid revenue growth, supported by customer wins and product expansion. Management has also maintained a positive outlook, with expectations of continued growth as global trade digitisation accelerates.

However, the ASX tech stock hasn’t been immune to pressure. Concerns around valuation, growth sustainability, and execution have weighed on sentiment. Any slowdown in customer growth or margin expansion could see further volatility.

Even so, analysts remain highly optimistic. WiseTech has an average price target of $84.93, implying upside of around 99% from current levels. That suggests the market may be underestimating the long-term growth potential of the $14 billion ASX tech stock.

Xero: Profitable growth back in focus

Xero, a leader in cloud accounting software for small and medium businesses, has also seen its share price halve over the past year.

The company’s core strength is its sticky subscription model, with millions of subscribers globally and strong retention rates. As more businesses shift to cloud-based accounting, Xero remains well placed to capture long-term growth.

In its latest results, Xero reported solid subscriber growth and improving profitability, reflecting a stronger focus on cost discipline. The company has also guided for continued margin expansion, signalling a shift towards more sustainable earnings growth.

That said, risks remain. The ASX tech stock is exposed to economic conditions, particularly the health of small businesses. Slower customer growth or increased competition could impact its trajectory.

Nevertheless, broker confidence remains high. Xero carries an average price target of $150.99, pointing to potential upside of around 95%.

Foolish Takeaway

WiseTech and Xero have both been hit hard, but their underlying businesses remain strong.

With high-quality software platforms, recurring revenue models, and large global markets, both companies still have significant long-term growth potential. The key question is whether they can deliver on expectations and rebuild investor confidence.

If they do, the current share price weakness could mark the setup for a powerful rebound — and potentially the kind of comeback long-term investors look for.

The post Down 50%: Could these 2 leading ASX tech stocks rebound big? appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I’d buy today and not check for a year
• Top brokers name 3 ASX shares to buy next week
• The best ASX shares to invest $1,000 in right now
• Why buying ASX shares in March could supercharge your wealth
• Here are the top 10 ASX 200 shares today

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

It may not have been a smooth ride, but DroneShield Ltd (ASX: DRO) shares have risen very strongly over the past 12 months.

During this time, the counter drone technology company’s shares have climbed almost 300%.

Does this make it too late to invest? Let’s see what one leading broker is saying about the high-flyer.

What is the broker saying?

According to a recent note out of Bell Potter, its analysts think there’s still an opportunity for investors to buy DroneShield shares.

It was pleased with its performance in FY 2025 even if it did slightly underperform with its earnings due to softer margins. The broker said:

DRO reported +276% YoY revenue growth to $216.5m in line with BPe. Gross margin (excluding inventory impairment) came in at 64.8% (BPe 67.9%). Opex was $125.3m (BPe $127.8m) led by headcount growth and higher share-based payments. Stripping out share-based payments ($23.5m) which was unusually elevated during the year, Underlying EBITDA was $36.5m an improvement on the CY24 loss of -$4.0m and driven by strong revenue growth. Statutory NPAT was $3.5m. The miss to uEBITDA was driven by weaker than expected gross margin in 2H26e, although it was in line with company guidance.

While DroneShield was forced to record some asset impairments in FY 2025, Bell Potter believes this will improve in the future with the introduction of a new Enterprise Resource Planning (ERP) system. It said:

DRO recorded $8.5m finished goods and $1.8m raw materials inventory impairments relating to earlier model DroneGuns with customer demand moving to the latest version of the DroneGun Mk4. New ERP implementation aims to reduce wastage in future.

Decent upside remains

Despite almost quadrupling over the past 12 months, Bell Potter still sees value in DroneShield shares.

The note reveals that the broker has a buy rating and $4.85 price target on them. Based on its current share price of $4.15, this implies potential upside of 17% for investors over the next 12 months.

Bell Potter’s bullish view on the stock is supported by its belief that DroneShield’s market-leading products leave it well-positioned to benefit from increasing demand. It explains:

We believe DRO has a market leading RF detect/defeat C-UAS offering and a strengthening competitive advantage owing to its years of battlefield experience and large and focused R&D team. We expect 2026 will be an inflection point for the global C-UAS industry with countries poised to unleash a wave of spending on RF detect and defeat solutions.

Consequently, we believe DRO should see material contracts flowing from its $2.3b potential sales pipeline over the next 3-6 months as defence budgets roll over to FY26e. At 35x CY26e EV / EBITDA, DRO trades at a discount to the global drone peer group. Further, we see upside risk to our revenue forecasts in CY26/27e, given the opportunities observed in the C-UAS industry.

The post Are DroneShield shares good value? Yes or no appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and is short shares of DroneShield. 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.