The meteoric rise of 4DMedical Ltd (ASX: 4DX) has grabbed the attention of ASX investors this year. On Friday, the stock closed up 12.14% at $5.08, marking not only a strong weekly finish but also a fresh all-time high for the respiratory imaging specialist.

Over the past 12 months, 4DX shares have surged an astonishing 815%, putting it among the best-performing stocks on the ASX.

So, what’s driving this extraordinary rally, and can the momentum continue?

Let’s take a closer look.

What does 4DMedical do?

4DMedical is a healthcare technology company focused on advanced respiratory imaging.

Its flagship product, CT:VQ, uses software to convert standard CT scans into detailed functional lung images. This allows clinicians to assess lung ventilation and blood flow without radioactive tracers, offering a faster and less invasive alternative to traditional nuclear medicine scans.

The technology is designed to help diagnose and monitor conditions such as pulmonary embolism, chronic obstructive pulmonary disease, and other respiratory illnesses.

US adoption gathering pace

One of the biggest catalysts for the share price this year has been accelerating adoption in the United States.

Earlier this month, 4DMedical announced that UC San Diego Health had begun clinical adoption of CT:VQ. This followed earlier uptake by major institutions, including Stanford University, the Cleveland Clinic, and the University of Miami.

These high-profile academic centres are seen as important reference sites. Their adoption helps validate the technology and supports broader rollout across hospital networks.

The company has structured its early deployments under launch agreements, with a pathway toward full commercial contracts over time.

$150 million placement strengthens balance sheet

Adding further momentum, 4DMedical recently completed a $150 million institutional placement.

The capital raise strengthens the balance sheet and provides funding to accelerate US commercialisation, expand sales capability, and support ongoing product development.

While the placement results in dilution for existing shareholders, the market response suggests investors view the funding as an important step to support long-term growth.

What are the risks?

Despite the strong share price performance, the risks remain.

4DMedical is still in the early stages of commercialisation and is not yet profitable. So, execution will be critical, particularly in converting pilot and launch sites into recurring revenue contracts.

The valuation has also risen sharply to around $2.7 billion, meaning expectations are now very high.

Foolish Takeaway

4DMedical’s rise has been nothing short of remarkable.

With FDA clearance, growing US adoption, and a well-funded expansion plan, the company has strong momentum behind it.

However, after an 800% rally in just 12 months, investors should expect volatility and keep a close eye on execution as the next phase of growth unfolds.

The post Up more than 800% in a year. Why this ASX medical tech stock just hit an all-time high appeared first on The Motley Fool Australia.

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• Up 700% in 12 months! Why this ASX tech stock just raised $150m
• Why are 4DMedical shares in a trading halt today?
• Why 4DMedical, DroneShield, Super Retail, and Tamboran shares are falling today
• These three biotechs show how the sector can produce huge outsized gains, but are they still good value?

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.

If I were looking to make some additions to my investment portfolio this week, I would seriously consider the five ASX 200 shares in this article.

Not only could they be good value at current prices, but I think they have the potential to outperform the benchmark this year.

Hub24 Ltd (ASX: HUB)

Hub24 is one of my preferred ways to gain exposure to Australia’s wealth management industry.

The long-term shift toward platform-based investing continues to work in its favour, particularly as advisers move toward more transparent, client-focused solutions. Hub24 benefits from strong operating leverage as funds under administration grow, which means earnings can scale faster than costs over time.

While its shares are not cheap on traditional metrics, I think that reflects the quality of the business, its consistent execution, and long-term earnings growth potential. For investors looking for a long-term compounder, Hub24 could be one of the standouts on the ASX.

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare has gone through a major transformation, and I think that is still underappreciated by the market.

The merger with Chemist Warehouse has created a vertically integrated healthcare group with scale across wholesale distribution, franchising, and retail. The combined business now supports hundreds of pharmacies under brands such as Chemist Warehouse, Amcal, and Discount Drug Stores, while also supplying thousands of pharmacies across Australia.

As integration benefits emerge and scale advantages are realised, I see scope for earnings to grow robustly over time.

James Hardie Industries plc (ASX: JHX)

This ASX 200 share is a high-quality building materials business with global exposure.

Its fibre cement products have strong brand recognition and are increasingly specified in residential construction, particularly in the United States. While housing cycles can be volatile, I think James Hardie’s market position and product innovation give it an edge over the long term.

Short-term earnings can move around with construction activity, but I am comfortable looking through that. Over a full cycle, I believe James Hardie has the potential to deliver solid earnings growth and strong returns on capital.

Qantas Airways Ltd (ASX: QAN)

Qantas has emerged from a challenging period as a more focused and financially disciplined business.

Capacity constraints across the aviation industry, combined with strong travel demand, have supported profitability. At the same time, management has been working to simplify the business, improve reliability, and strengthen the balance sheet.

Airlines are never risk-free investments, just ask Warren Buffett, but Qantas has a dominant position in the Australian market and valuable loyalty and international assets. If execution continues, I think this ASX 200 share can deliver attractive returns through the cycle.

Megaport Ltd (ASX: MP1)

Megaport is not a household name, but it plays an important role in global digital infrastructure.

The ASX 200 share provides on-demand connectivity between data centres, cloud providers, and enterprise networks. As cloud architectures become more complex and data-intensive workloads grow, that flexibility becomes increasingly valuable.

Megaport has also expanded beyond pure connectivity into adjacent infrastructure services with the acquisition of Latitude, which deepens customer relationships and increases the relevance of its platform. After a reset in expectations and a share price pullback, I think it offers an appealing risk-reward balance for patient investors.

Foolish takeaway

None of these shares are guaranteed winners, and each comes with its own risks.

But what they share is a clear business model, long-term demand drivers, and management teams that have demonstrated an ability to navigate change. For investors willing to take a medium to long-term view, I believe these five ASX 200 shares offer a solid mix of growth, quality, and resilience.

The post 5 ASX 200 shares I think could beat the market in 2026 appeared first on The Motley Fool Australia.

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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 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.

If I had $2,500 to invest today and my goal was income, I would be looking for businesses with reliable cash flows, sustainable dividends, and long-term relevance. I would not be trying to chase the highest yield available. 

Instead, I would focus on quality income that I can reasonably expect to grow over time.

With that said, here are two ASX income stocks I would buy with that $2,500 in January.

Transurban Group (ASX: TCL)

Transurban is one of the most dependable income stocks on the ASX in my view.

The company owns and operates toll roads across Australia and North America, giving it access to long-life infrastructure assets with inflation-linked revenue. Traffic volumes tend to grow over time as cities expand, while tolls are typically indexed to inflation or set increases.

That combination supports highly predictable cash flows, which is exactly what income investors want.

For FY26, Transurban intends to increase its distribution to 69 cents per share, up from 65 cents in FY25. At current prices, that represents a dividend yield of around 5%.

Importantly, this income is backed by assets that remain essential regardless of economic conditions. People may cut discretionary spending, but they still need to commute, move goods, and travel through major cities.

If I were allocating $2,500, Transurban would likely take the largest share of that investment.

Telstra Group Ltd (ASX: TLS)

Telstra is another ASX income stock that continues to appeal to defensive investors.

The company benefits from its dominant position in Australia’s telecommunications market, with mobile and broadband services that households and businesses rely on every day. That recurring demand underpins steady earnings and a relatively resilient dividend profile.

According to CommSec, the consensus estimate is a fully franked 20 cents per share dividend in FY26. This means that Telstra currently offers an estimated forward dividend yield of around 4.15%, which is attractive when combined with its defensive characteristics. While Telstra is not a high-growth business, it does not need to be for income-focused investors.

What I like most is that Telstra’s earnings are less sensitive to economic cycles than many other ASX companies. That makes it a useful stabiliser in an income portfolio.

For someone investing $2,500, Telstra provides diversification away from infrastructure while still maintaining a focus on dependable income.

Foolish takeaway

With a relatively modest amount like $2,500, I think it makes sense to prioritise quality and reliability over chasing yield.

Transurban and Telstra offer exposure to two essential parts of the economy, transport and communications, while providing income that investors can reasonably expect to persist over the long term.

They would not make anyone rich overnight, but for building a steady income stream, I think they are two sensible places to start.

The post 2 ASX income stocks I would buy with $2,500 in January appeared first on The Motley Fool Australia.

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• My simple 5-share ASX retirement portfolio
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Motley Fool contributor Grace Alvino has positions in Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra Group and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are not many S&P/ASX 200 Index (ASX: XJO) shares that have performed worse over the last two years than one of the largest ASX energy shares. The Woodside Energy Group Ltd (ASX: WDS) share price has declined by around 35%. It has dropped around 12% since 12 November, as the below chart shows.

It’s normal for there to be volatility on the share market and it’s particularly normal for energy shares to experience ups and downs. Energy prices are always on the move and this can sometimes lead to big swings of share prices.

Production costs don’t typically change much month to month, so energy price shifts can dramatically change profitability. Any extra revenue for the same volume of production can largely add to net profit, while a reduction of revenue dollars will mostly flow onto the net profit line too.

Let’s look at expert views on energy prices before looking at the appeal of the Woodside share price.

2026 surplus

In a note last week, broker UBS cut its 2026 oil price forecast by US$2 per barrel to US$62 per barrel, driven by a larger oil surplus that’s now up to 1.9 million barrels per day for this year, in line with 2025.

However, UBS expects the surplus to narrow over the course of the year, leading to its oil forecast of US$60 per barrel in the first quarter of 2026, rising to US$64 per barrel in the fourth quarter of 2026.

The broker noted that geopolitical risks persist and potential supply disruptions in Russia, Venezuela and Iran could keep volatility elevated.

A decline of 0.5 million barrels per day in supply may support the oil price in the mid-to-high US$60s per barrel, according to UBS.

UBS then commented:

We see some risk of oil demand being underestimated noting that the IEA has been lifting estimates of ‘missing barrels’ & oil on water, with tracking challenged by evolving logistics for sanctioned producers. However we see upside risk as likely capped due to OPEC+ retaining spare capacity of 4.1mb/d (ex-Iran/Venezuela).

We expect OPEC+ policy to be a less important driver for 2026 (vs 2025) as much of the voluntary cuts have already been unwound. Our base case assumes OPEC+ unwinds the remainder of the 1.65Mb/d voluntary cuts from Apr-Dec26.

Is the Woodside share price attractive?

UBS is expecting Woodside’s quarterly production performance for the three months to December 2025 to show production was in line with expectations.

The broker noted the earlier-than-expected arrival of the floating production unit on site in WA introduces the potential for Scarborough gas to flow earlier than the current estimate of the fourth quarter of 2026, which could mean production is a bit stronger than expected.

UBS says that it’s neutral on the Woodside share price, with a price target of $23.50. That implies little movement over the next 12 months.

The broker projects Woodside generated $1.082 of earnings per share (EPS) in 2025. It reduced its projection for 2026 EPS by 12% to 57.7 cents and reduced the 2027 EPS projection by 3% to 95.4 cents.

The post Is the Woodside share price an opportunity too good to pass up? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday
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• Woodside shares lift today. Is the worst behind this ASX energy giant?

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.

As we move into 2026, some high-quality ASX companies are trading well below their previous highs. In some cases, short-term concerns have pushed share prices lower, even though the underlying businesses continue to perform well.

For investors looking for value, several well-established companies now appear mispriced by the market.

Here are 3 ASX shares that stand out as undervalued as January draws to a close.

Wisetech Global Ltd (ASX: WTC)

Wisetech is a global leader in logistics software, used by freight forwarders and supply chain operators worldwide. Its platform is deeply embedded in customer operations, creating sticky, recurring revenue.

Despite that strong position, the share price has fallen sharply. Wisetech shares are trading around $67, well down from their 2025 highs.

Several brokers believe the market has become too pessimistic. Consensus price targets sit well above current levels, with some estimates around $100 to $110, pointing to meaningful upside if growth expectations stabilise.

The recent sell-off was driven by softer near-term guidance and investor concerns around governance. However, the long-term outlook has not changed. Global trade volumes continue to grow over time, and logistics software remains essential.

If earnings momentum improves, Wisetech shares could recover strongly from current levels.

Pro Medicus Ltd (ASX: PME)

Pro Medicus provides medical imaging and radiology software to hospitals and imaging groups across the US, Europe, and Australia.

The company has delivered strong long-term growth, but the share price has since pulled back. Shares are trading around $203, below broker expectations.

Broker sentiment remains positive. Average price targets are above $320, reflecting confidence in ongoing contract wins, high margins, and recurring revenue.

While the valuation still looks expensive, many analysts are willing to pay a premium for quality. Pro Medicus operates in a niche market with high barriers to entry and growing demand for digital healthcare solutions.

This recent weakness may offer a rare chance to buy a top-tier healthcare technology business at a heavily discounted price.

CAR Group Ltd (ASX: CAR)

CAR Group owns online automotive marketplaces such as carsales, with operations across Australia and several international markets.

The share price has lagged as investors worry about slowing car sales and softer economic conditions. Even so, the business continues to generate strong cash flow and holds leading market positions.

Brokers remain broadly supportive. The average 12-month price target sits around $40 to $42, around 30% to 35% above current levels.

Analysts continue to point to CAR’s pricing power, high margins, and global expansion strategy as key strengths. Its leading market share allows it to raise prices over time without losing customers, which helps support earnings even in softer conditions.

CAR also offers a mix of growth and resilience, which can be attractive for investors during uncertain market periods.

Foolish takeaway

All 3 of these ASX shares have strong underlying businesses, but their share prices have been weighed down by short-term concerns.

Periods like this can create opportunities for investors willing to look beyond near-term market moves.

For investors building positions in January, these stocks look well worth watching as markets reset for 2026.

The post The 3 best undervalued ASX shares I’d pick up in January appeared first on The Motley Fool Australia.

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• How I’d go about finding undervalued ASX shares to buy and hold forever in 2026

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

When investors look for defensive ASX shares, Wesfarmers Ltd (ASX: WES) and Coles Group Ltd (ASX: COL) are often mentioned in the same breath.

Both are household names. Both sell essential products. And both have proven they can perform through different economic conditions.

But if I had to choose between the two today, Wesfarmers would be my preferred buy. That does not mean Coles is a bad business. I just think Wesfarmers offers the more attractive overall package for long-term investors.

The case for Wesfarmers shares

Wesfarmers is not just a supermarket business, and that matters.

While Coles is almost entirely focused on food and liquor retailing, Wesfarmers owns a diversified portfolio of high-quality businesses. These include Bunnings, Kmart, Officeworks, Priceline, WesCEF, and a growing healthcare division.

That diversification gives Wesfarmers multiple earnings levers. When one division is under pressure, others can pick up the slack. Bunnings, in particular, remains a standout asset with strong brand loyalty, scale advantages, and pricing power that is hard to replicate. Masters famously tried and failed.

Another reason I prefer Wesfarmers is capital allocation. Management has a long track record of recycling capital, exiting businesses when returns disappoint, and reinvesting where long-term returns look attractive. That discipline is not always visible quarter to quarter, but it tends to show up over time in shareholder returns.

Wesfarmers is not cheap on headline valuation metrics. But in my view, that reflects the quality and resilience of the underlying businesses rather than excessive optimism.

Why Coles is still a good business

Coles deserves credit for what it does well.

It operates in a highly defensive sector, with food retail demand holding up regardless of economic conditions. Over recent years, Coles has improved its operational execution, supply chain efficiency, and private label offering.

Its earnings profile is relatively predictable, and dividends have been an important part of the investment case for income-focused investors. For those seeking stability and exposure to essential spending, Coles remains a good option.

That said, Coles is more exposed to supermarket-specific pressures. These include competition, margin scrutiny, and regulatory oversight. There are fewer places to hide if conditions become more challenging.

Growth versus simplicity

For me, the difference between these two ASX shares comes down to optionality.

Coles offers simplicity and defensiveness. Wesfarmers offers defensiveness plus growth opportunities across multiple divisions. Over a long investment horizon, I prefer the business that has more ways to grow earnings and redeploy capital.

That does not mean Wesfarmers will outperform every year. There will be periods where Coles does better, particularly if supermarket margins expand or consumer conditions stabilise quickly.

But looking beyond the next twelve months, I think Wesfarmers is better positioned to compound value.

Foolish takeaway

If forced to choose between the two, Wesfarmers would be my pick as the better buy today.

Coles Group remains a solid, defensive business, and I would not discourage investors from owning it. I just think Wesfarmers’ diversification, asset quality, and capital discipline give it a stronger long-term edge.

Sometimes the best investment is not about avoiding risk entirely, but about choosing the business with more paths to success.

The post Wesfarmers vs Coles: Which ASX share is the best buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Wesfarmers. 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.

Resolute Mining Ltd (ASX: RSG) has emerged as one of the strongest performers among ASX mid-cap gold stocks over the past year, with its share price up an incredible 217%.

After that run, the stock eased late last week, closing down around 2.3% at $1.29 as the gold price softened. Even so, Resolute shares remain well above levels seen a year ago, and recently reached a 5-year high at $1.35.

With the share price having moved sharply higher, attention is now turning to what has driven the rally and whether it can be sustained.

Here are the key factors investors are weighing up.

What’s behind Resolute’s strong run

Resolute Mining is an Australia-listed gold producer with operations in West Africa, including the Syama mine in Mali and the Mako operation in Senegal.

The company has more than 30 years of experience in exploration, development and production, and has produced over 9 million ounces of gold across 10 mines.

While gold miners typically benefit from rising bullion prices, Resolute’s rally has gone beyond simply riding the commodity cycle. Improving project economics, exploration success and a clearer growth strategy have all helped lift investor confidence.

One important catalyst has been updated feasibility work at the Doropo gold project in Cote d’Ivoire. The revised studies point to improved economics and a larger project scope, which could lift Resolute’s long-term production profile once approvals and funding are in place.

The company will host a quarterly webcast and guidance update on Thursday 22 January, where management is expected to discuss its latest quarterly results.

Why investors kept buying even as gold prices dipped

Despite the recent dip, several factors have supported Resolute’s strong performance.

Firstly, the stock still looks reasonably valued compared with many peers on a price-to-sales basis. Resolute trades at roughly 2 times sales, compared with around 6 times for Evolution Mining Ltd (ASX: EVN), suggesting the market is still pricing Resolute more conservatively.

Secondly, both revenue and earnings have been growing strongly for Resolute, pointing to improving scale and operating momentum.

And finally, expectations around its 2026 guidance have helped underpin sentiment, as investors look for clarity on production and costs.

Even with gold easing slightly, prices remain historically strong. That continues to support Resolute’s cash flow outlook, especially if geopolitical risks or interest rate cuts lift safe-haven demand later this year.

The risks the market is still weighing up

That said, operating in West Africa carries added risk compared with many Australian-based miners.

Resolute has faced challenges in the past, including periods of regulatory uncertainty in Mali and changes in leadership. Political stability, government policy and permitting timelines can all influence operations, sometimes with little warning.

There are also execution risks to consider. Delivering consistent production, controlling costs and managing capital spending remain critical, particularly as the company looks to advance growth projects.

The capital required to develop projects such as Doropo means future returns will depend heavily on management’s ability to execute plans on time and within budget.

What’s next?

Resolute’s 217% share price surge over the past year reflects strong gold prices and improving company fundamentals. However, after such a sharp run, attention is now shifting from momentum to delivery.

With the gold prices softening and a key guidance update approaching, the next few weeks could prove decisive for Resolute shares. Clear targets and steady results may support further upside, while any disappointment could see the stock consolidate after a huge year.

The post Resolute Mining shares have surged 217% in a year. Can the momentum last? appeared first on The Motley Fool Australia.

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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.

Now could be the time to buy Mader Group Ltd (ASX: MAD) shares.

That’s the view of analysts at Bell Potter, which have just upgraded the ASX All Ords stock.

What is the broker saying about this ASX All Ords stock?

Bell Potter notes that this specialised contract labour provider’s shares have pulled back recently, which it believes has created a buying opportunity. Especially given its belief that the company is poised to benefit from favourable industry conditions both at home and in North America. It said:

The Department of Industry, Science and Resources updated its Australian iron ore production outlook (Dec’25), forecasting CAGR of 2.8% over FY25-28 (prev. 2.5%). Delivery of this growth by industry is a major tailwind for MAD’s core Heavy Mobile Equipment and Infrastructure Maintenance service offerings. FY26TD (JulNov’25) WA wholesale diesel consumption was up 2.2% YoY, with a record observed in Oct’25.

WA wholesale diesel consumption correlates very strongly with WA iron ore production. Lastly, the latest financial disclosures of OEMs (Sep’25 quarter) outlined sales and order intake were broadly flat and modestly up, respectively.

Over in North America, Bell Potter believes the ASX All Ords stock could be well-placed for new contract wins. It adds:

Several indicators point to a favourable environment for securing new business across the region. Firstly, our proxy for USA mining complex activity has progressively improved since the 2024 elections, with the index up 4.1% YoY for the period Jul-Nov’25. Secondly, in Canada, MAD’s key markets have seen strong YoY production growth over Jul-Oct’25: 4.4% for coal; 15.9% for copper; 10.8% for lime; and 3.0% for oil sands (hard rock).

Lastly, regional OEMs and dealers have generally seen stable-to-improving YoY growth in their respective Product Sales businesses, indicating miner commitments to maintaining and growing fleet. Large Canadian mining dealers have reported mid-single digit to mid-teens YoY revenue growth for their respective Product Support divisions over the Jun’25 and Sep’25 quarters.

Upgraded

In light of the above and recent share price weakness, the broker has upgraded Mader’s shares to a buy rating and $9.00 price target.

Based on its current share price of $7.77, this implies potential upside of 16% for investors over the next 12 months.

Bell Potter also expects a modest 1% dividend yield in FY 2026, lifting the total potential return to approximately 17%.

Commenting on the ASX All Ords stock’s recommendation upgrade, the broker said:

We upgrade our Recommendation to Buy. The recent retracement in MAD’s share price offers investors a more attractive risk-reward proposition, with 17.2% TSR implied by our $9.00/sh Target Price. We maintain the view that consensus expectations are conservative (FY26e NPAT of $67.6m; BPe $69.6m; NPAT guidance >$65.0m). Disclosure of MAD’s next 5-year strategy represents a near-term catalyst.

The post Why Bell Potter just upgraded this ASX All Ords share to a buy rating appeared first on The Motley Fool Australia.

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The ASX dividend stock Sonic Healthcare Ltd (ASX: SHL) has dropped 36% since April 2023, as the chart below shows. I think it’s fair to say that the last few years have been rough for shareholders following the COVID-19 testing boom.

Sonic Healthcare is a global pathology business with a presence in a number of Western countries including the USA, Australia, Germany, Switzerland, the UK, Belgium and New Zealand.

I think it’s useful for the business to have geographic exposure as this allows it to expand in a number of countries and reduces the risk of being too exposed to one country.

Its dividend record alone makes the ASX dividend stock an exciting investment.

Incredible payout record

When I invest in dividend-paying businesses, I’m looking for companies that provide stable and hopefully growing payments.

Sonic Healthcare increased its payout per share every year between 1994 and 2010, maintained the payout in 2011 and 2012 and has grown it every year since. It has one of the most consistent and impressive dividend records on the ASX over the last three decades.

Dividend growth is not guaranteed, but it’s clear that Sonic Healthcare is focused on paying investors as good a dividend as it can while still investing for growth.

The business itself has committed to having an ongoing “progressive dividend policy”, which bodes well for future payments.

The forecast on CMC Markets suggests that the business could pay an annual dividend per share of $1.10 in FY26. Excluding any potential franking credits, that projection translates into a dividend yield of 4.7%.

It’s expected to grow the annual payout to $1.12 per share in FY27 and $1.155 in FY28. If it does that, the business will be able to provide investors with steady passive income.

Is this a good time to invest in the ASX dividend stock?

It’s not generating the same level of profit that it did during the COVID-19 testing surge, but its earnings are expected to rise thanks to organic growth and acquisitions. It has made a number of European acquisitions to help boost its scale and earnings base.

The projection on CMC Markets suggests the business could grow earnings in FY26 and beyond. In FY26, earnings per share (EPS) could increase to $1.25. EPS could then improve to $1.36 in FY27 and $1.46 in FY28. It’s currently valued at under 19x FY26’s estimated earnings.

Its EPS is being helped by ageing and growing populations, which are strong tailwinds for the business. While its best growth rate may be behind it, I think it’s still a solid ASX dividend stock for the long-term.

The post 1 ASX dividend stock down 36% I’d buy right now appeared first on The Motley Fool Australia.

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

These 2 ASX 200 shares stand out for investors willing to think in years rather than days: CSL Ltd (ASX: CSL) and Temple & Webster Group Ltd (ASX: TPW).

One sells essential medicines to the world. The other sells couches, lamps and coffee tables to Australians who like shopping from the sofa.

Different businesses, different risks, but both have credible paths to long-term wealth creation.

CSL Ltd (ASX: CSL)

CSL sits at the heavyweight end of the market. The $85 billion ASX 200 share operates a global biotechnology empire built around plasma-derived therapies, vaccines and specialty medicines. Demand for these products doesn’t disappear when economies slow or consumers tighten their belts. People still need treatment, and hospitals still place orders.

The ASX 200 biotech stock has stumbled over the past couple of years as margins came under pressure and earnings upgrades failed to materialise. That has tested investor patience.

But CSL continues to generate strong cash flow, invest heavily in research and streamline its operations. Its scale, pricing power and global reach give it an edge few competitors can match. Over a 10-year stretch, that combination matters far more than a rough patch or two along the way.

Closing the week at $175.53, the company’s shares remain close to their 52-week low. The ASX 200 share tumbled more than 30% in the past 6 months.

For a business long regarded as one of the ASX’s highest-quality names, such a sharp pullback inevitably prompts the question: does this represent a rare long-term buying opportunity?

Most analysts do think this might the time to pounce and rate CSL a buy or even a strong buy. They set the average 12-month price target at $232, a potential gain of 32%.  

Temple & Webster Ltd (ASX: TPW)

Temple & Webster tells a very different story. The ASX 200 share operates an online-only homewares platform that offers thousands of products without the burden of running a network of physical stores. The model keeps costs low and allows the business to scale as demand grows.

Like most growth stocks, Temple & Webster has ridden a volatile path. Rising interest rates, housing slowdowns and cautious consumers have weighed on sentiment. Yet the business continues to win customers, improve logistics and expand its product range. As conditions normalise and online retail continues to take share from traditional stores, Temple & Webster has room to grow into a much larger business than it is today.

Just like CSL, Temple & Webster has been hovering around 52-week lows. In the past 6 months the ASX 200 share has lost 40% of its value and the broker community has taken notice.

Most analysts rate the stock now as a buy or strong buy, with an average 12-month price target of $20.42, implying around 60% upside. The most bullish forecasts point to potential gains of more than 115%.

The post 2 ASX 200 shares to buy and hold for 10 years appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Temple & Webster Group. The Motley Fool Australia has recommended CSL and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.