ASX healthcare shares have spent the past year being repriced harder than almost any other corner of the market.

CSL Ltd (ASX: CSL) fell as low as $90 before staging a recovery, and Pro Medicus Ltd (ASX: PME) has roughly halved from the high it set less than a year ago.

Yet the sector rose 9% in a week during reporting season, which tells you sentiment may have started to turn.

Why ASX healthcare shares fell so far

The damage was mostly self-inflicted at the company level.

CSL wrote down its Vifor acquisition, Pro Medicus derated from an extraordinary multiple, and drug pricing pressure from the United States hung over the entire sector.

None of those problems has vanished, but the price investors are now asked to pay for them has changed.

That is usually where the better opportunities in a beaten-up sector are found.

1. CSL

CSL trades around $175 against a 52-week range of $90.00 to $222.47.

FY26 was openly badged as a reset year.

Revenue slipped 1% to US$15.8 billion, and impairments of US$7.1 billion drove a statutory loss of US$2.6 billion.

Underlying profit after tax and amortisation still reached US$3.1 billion, which is the figure worth focusing on because the impairments were non-cash and largely historical.

The forward numbers are what matter here.

CSL is targeting US$400 million of annual cost savings, rising to US$550 million by FY28.

FY27 guidance points to underlying profit growth of around 5%, with a further A$1.1 billion buyback authorised.

On the flipside, the company’s dividend was held at US$2.92 per share and net debt sits at 1.8 times EBITDA.

2. Pro Medicus

Pro Medicus is the quality name and remains the expensive one.

The shares trade near $185 against a 52-week high of $321.57, so the derating has been severe.

FY26 revenue rose 22.9% to $261.7 million and underlying net profit climbed 24.1% to $144.7 million.

The company’s underlying EBIT margin reached 74.9% and the company remains debt-free with $252.3 million in cash.

Chief executive Dr Sam Hupert was optimistic about the previous year:

We were aiming for 30% increases in EBIT and NPAT, and we exceeded both on a constant currency basis.

The company signed $407 million of new contracts and lifted its dividend 25.5% to 69 cents.

At roughly 75 times earnings the shares are still priced for something close to perfection, though considerably less so than they were twelve months ago.

3. Ramsay Health Care

Ramsay Health Care Ltd (ASX: RHC) is the turnaround story of the three.

FY26 revenue reached $18.6 billion and underlying EBIT rose 11.8% to $1.2 billion.

The EBIT margin improved 30 basis points to 6.2%, which is the number the market had been waiting on.

The full-year dividend lifted 13.8% to 91 cents.

The bigger catalyst is linked to its markets.

Ramsay plans to separate Ramsay Santé, its European business, with a shareholder vote scheduled for 24 November.

Approval would leave behind a simpler, Australian-focused hospital operator with a cleaner balance sheet and a far easier story for investors to value.

What could go wrong with ASX healthcare shares

Each of these stocks carry their own risk.

CSL still has to prove that its cost programme can deliver, and its Vifor division is guided to shrink around 25% in FY27.

Pro Medicus depends on continued contract wins in a US market where it already holds meaningful share.

Then on the other hand, Ramsay’s separation still requires a shareholder vote in November, and demergers routinely take longer and cost more than the initial timetable suggests.

Foolish takeaway

Of these three ASX healthcare shares, CSL offers the clearest difference between price and normalised earnings.

Pro Medicus has the best business and the hardest valuation to defend, whereas Ramsay has the most tangible catalyst and yet the least growth behind it.

A brutal twelve months has left the sector significant cheaper than it was, without making any of these three businesses straightforward to own.

The post Top 3 ASX healthcare shares to buy after a brutal year appeared first on The Motley Fool Australia.

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• How CSL shares skyrocketed 39% in August

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

Rio Tinto Ltd (ASX: RIO) shares have been on fire over the past year.

Recently trading for $173.18, shares in the S&P/ASX 200 Index (ASX: XJO) mining giant have surged 51.3% in 12 months, smashing the 0.6% one-year gains posted by the benchmark index.

And that’s not including the two fully franked dividends, totalling $6.70 a share, that Rio Tinto paid (or shortly will pay) over the full year.

If we add that back into the recent share price of $173.18, then the accumulated value of Rio Tinto shares has rocketed 57.2% in 12 months.

But with those kinds of outsized gains already in the bag, should I still buy the ASX mining stock today?

Rio Tinto shares: Buy, hold or sell?

Morgans’ Damien Nguyen recently ran his slide rule over the ASX 200 mining giant (courtesy of The Bull).

“Rio Tinto continues to generate strong cash flow from its world class iron ore operations, while building exposure to copper and lithium,” Nguyen said.

“The company maintains a robust balance sheet and offers attractive shareholder returns, supported by low-cost assets,” he added.

But amid concerns over the miner’s heavy weighting towards iron ore and its strong run higher, Nguyen issues a hold recommendation on Rio Tinto shares.

He concluded:

However, iron ore remains the primary earnings driver, leaving profits exposed to movements in commodity prices and Chinese demand. Given this balance of quality and cyclical risk, we see Rio Tinto as fairly valued at recent levels.

What’s the latest from the ASX 200 mining stock?

Rio Tinto shares were in sharp focus on 29 July following the release of the company’s half year results (H1 2026).

Highlights included a 15% year on year increase in revenue to US$31.0 billion. And earnings surged 28%, with the miner reporting underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$14.8 billion.

On the bottom line, Rio Tinto reported a half year net profit of $6.7 billion, up 48.9% from H1 2025.

With profits surging, management declared a $3.029 per share fully franked interim dividend, up 36.4% from last year’s interim payout.

The stock traded ex-dividend on 13 August. If you held shares on 12 August, you can expect that passive income to land in your bank account on 24 September.

“Our strong performance is underpinned by accelerating productivity across the business,” Rio Tinto CEO Simon Trott said.

Rio Tinto shares closed up 3.7% on the day of the results announcement.

The post Up 57%! Should I still buy Rio Tinto shares today? appeared first on The Motley Fool Australia.

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• Is it a great time to buy Rio Tinto shares?

Motley Fool contributor Bernd Struben 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.

South32 shares have almost doubled in a year. At current valuation levels, more and more brokers are starting to turn against the stock.

Those brokers, including Morgans, MPC Markets and others, have also issued fresh ratings on two other ASX stocks this week.

Between the three, one has run too hard, one is caught in a housing downturn, and one is rebuilding itself.

Here’s what the brokers had to say

Hold: South32 shares

South32 Ltd (ASX: S32) shares have gained 96% over twelve months, which values the miner at roughly $23 billion.

Morgans has downgraded to a hold, arguing the earnings upcycle is now reflected in the price.

The broker noted the stock has outperformed even the pure copper producers.

To explain the rally, investors need look no further than the FY26 numbers.

Underlying revenue rose 7% to US$8,108 million and underlying EBITDA jumped 28% to US$2,462 million.

Underlying earnings after tax climbed 55% to US$1,032 million, with the operating margin widening 4.7 percentage points to 31.0%.

The final dividend more than doubled to US5.4 cents, taking the full-year payout to US9.3 cents fully franked.

Net cash reached US$283 million and free cash flow grew 136% to US$610 million.

Chief executive Matt Daley said of the year:

We’re repositioning South32 as an upstream, base metals-focused company, primed for growth, and transforming into a simpler, stronger business.

Sell: Australian Finance Group

Australian Finance Group Ltd (ASX: AFG) finds itself in the opposite situation.

The mortgage aggregator closed near $1.435 at the start of the week, down almost 49% over twelve months and near a 52-week low.

MPC Markets sees more downside than upside from here, pointing to the slowing property market.

Home loan applications have fallen sharply since the May federal budget, and AFG’s earnings follow that volume directly.

The frustrating part is that the business itself performed.

FY26 net profit after tax rose 39% to $49 million, with underlying profit up 33% to $54 million. Residential settlements grew 18% to $75 billion and the loan book expanded 30% to $7.1 billion.

More than 4,300 brokers now write roughly one in nine Australian mortgages through the group.

At 8.55 times earnings and a 5.94% yield, a housing downturn is already reflected in the price, potentially presenting an opportunity for investors who take a contrary view on the housing market.

Buy: Magellan Financial Group

Magellan Financial Group Ltd (ASX: MFG) is the contrarian call of the three.

Morgans remains constructive despite trimming its price target, and the reason is the Barrenjoey merger.

The merger was completed on 1 July. In this transaction, the investment bank contributed $112 million of operating profit after tax in FY26 at a 32.9% return on equity.

However, the headline numbers still look ugly.

Statutory net profit after tax of $146 million was roughly half the prior year.

Standalone Magellan revenue fell 12% to $291 million, and combined funds under management were $41 billion at 30 June.

Shareholders received a fully franked second-half dividend of 25.5 cents, an 80% payout, with a 60% to 90% range targeted from here.

The group intends to rebrand as Barrenjoey, subject to a shareholder vote at the annual general meeting in October.

Foolish takeaway

I think the Morgans’ view on South32 shares is fair.

A 96% gain and a doubled dividend is what a commodity peak often looks like. The balance sheet is in excellent condition either way.

Australian Finance Group looks cheap yet very risky, since nothing improves for a mortgage aggregator until applications recover.

Magellan is the most interesting of the three, because the market is still valuing the company as a fund manager, instead of an investment bank. This could provide an opportunity for investors looking for bargain deals on the market.

The post Buy, hold, sell: South32, Australian Finance Group and Magellan shares appeared first on The Motley Fool Australia.

More reading

• 9 ASX shares downgraded by experts post-results this week
• 8 ASX shares upgraded by the professionals post-results this week
• Buy, hold, sell: South32, Australian Finance Group, Magellan shares
• 5 ASX shares downgraded by Morgans post-results
• Buy, hold, sell: South32, Mineral Resources, BHP shares

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