Shares in Codan Ltd (ASX: CDA) have been absolutely unstoppable.

The ASX tech stock is now up 42% in 2026 alone and an eye-watering 137% over the past 12 months at the time of writing.

That kind of rally naturally raises one big question for investors: is it finally time to lock in profits, or could the stock still have further to run?

Multiple growth drivers

Codan is not your typical ASX tech company.

The business develops electronic solutions for government, military, corporate, and consumer markets globally, with operations spanning two key divisions: communications and metal detection.

Right now, both businesses are firing. The communications division is benefiting from rising geopolitical tensions and growing defence spending globally.

In uncertain times, governments and military organisations tend to prioritise mission-critical communication systems early, and the $7 billion ASX tech stock appears well-positioned to benefit from that trend.

Demand has reportedly remained strong across areas linked to unmanned systems and software-defined radios, which are becoming increasingly important in modern defence and public safety applications. The company anticipates net profit after tax at around $170 million, up over 60% year on year.

Margins are also moving in the right direction. Codan now expects communications margins to hit 30% in FY26, earlier than previously forecast. That is a meaningful jump from around 26% in FY25.

And when margins expand in technology businesses, earnings can accelerate very quickly.

The gold boom is helping too

The company’s Minelab metal detection business is also delivering strong momentum.

As gold prices surge globally, interest in gold prospecting has exploded, particularly across parts of Africa where small-scale mining activity remains widespread. That has created strong demand for Codan’s gold detection products.

Importantly, the business is not relying solely on gold miners. The ASX tech stock also continues seeing healthy demand from recreational metal detector users globally, adding another layer of diversification to earnings.

Thanks to these combined tailwinds, Codan now expects FY26 revenue growth to land at the top end of its previously guided 15% to 20% range. That is an impressive result for a company that has already experienced such a massive share price rally.

So, should investors cash out?

Broker sentiment appears a little more cautious after the ASX tech stock’s enormous run.

According to TradingView data, analyst views are mixed. Five out of nine brokers currently rate Codan shares as either a buy or strong buy, while three sit at a hold, and one has a sell recommendation.

The average 12-month price target sits roughly 10% above current levels, suggesting analysts still see some upside ahead, but perhaps not another explosive rally like the past year.

Bell Potter is among the more cautious brokers. It recently retained a hold rating and lifted its price target to $41.30, still below the recent share price near $43.

Meanwhile, Macquarie remains more bullish, highlighting Codan’s growing exposure to the booming unmanned aerial vehicle (drone) market.

The broker upgraded the stock to outperform and lifted its price target to $44.20. That points to a 10% upside from current price levels.

The post This ASX tech stock has exploded 137%, time to cash out? appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares with upgraded ratings this week
• ASX tech shares vs. ATEC ETF: How they fared during sector downturn
• Here are the top 10 ASX 200 shares today
• How high does Macquarie think Codan shares will go?
• 4 ASX 200 shares upgraded by brokers this week

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

CSL Ltd (ASX: CSL) shares have had a brutal year.

The biotechnology giant is down around 60% over the past 12 months, which is an extraordinary fall for a company of its stature.

That kind of decline can make investors hesitate. It can also create opportunity.

If I had $10,000 to invest in one ASX 200 healthcare share today, I would be willing to put it into CSL. But I would only do so with realistic expectations.

This is not a stock I would buy expecting a quick rebound.

Why CSL shares have become interesting

CSL is facing a difficult period.

The market has lost confidence in the company after disappointing updates, guidance pressure, and concerns about whether the business can return to the quality of growth investors once expected.

Those concerns are fair.

CSL needs to rebuild trust. It needs to show that its plasma collection network, cost base, product portfolio, and Vifor business can deliver better returns over time.

But I do not think the long-term investment case has disappeared.

CSL still owns valuable healthcare assets across plasma therapies, vaccines, and specialist medicines. These are linked to real medical needs, global healthcare demand, and long-term patient treatment.

That is why I think the CSL share price fall could be overdone.

The business has disappointed, but I do not believe the core opportunity has been permanently destroyed.

Being paid to wait

One part of the CSL story that looks more appealing after the selloff is the dividend.

CSL has not traditionally been viewed as a high-yield income stock. Investors usually bought it for growth, with the dividend as a smaller part of the overall return.

But after a 60% share price fall, the dividend yield has become more attractive.

That can make a difference for long-term investors.

If the recovery takes time, investors may still receive income while waiting for sentiment to improve. And if CSL can eventually find its form again and grow its dividend over time, today’s buyers could end up with a much better yield on cost down the track.

That is not guaranteed, of course. Dividends depend on earnings, cash flow, and management decisions.

But I think the income component now adds something useful to the investment case.

How I would invest the $10,000

I would not assume CSL has already hit the bottom.

The shares could remain volatile. Investor confidence is weak, and the company still needs to prove itself.

For that reason, I would consider investing gradually.

An investor could put part of the $10,000 into CSL now and keep the rest available in case the shares fall further or more evidence of a recovery appears.

That approach gives some exposure today without relying on perfect timing.

Foolish takeaway

I think CSL shares are worth buying after such a large fall, but this is no longer the simple set-and-forget quality story it may have seemed in the past.

The company has work to do.

That said, the share price now reflects a lot of disappointment. CSL still has global healthcare assets, long-term demand drivers, and a dividend yield that gives investors something to collect while they wait.

If I were investing $10,000 today, I would be comfortable buying CSL shares. I would just be prepared to be patient, because the recovery may be measured in years rather than weeks.

The post Should I invest $10,000 in CSL shares before the end of May? appeared first on The Motley Fool Australia.

More reading

• Why is the ASX 200 starting at a 7-week low today?
• CSL shares crash, but is a comeback looming?
• Top brokers name 3 ASX shares to buy next week
• Buy, hold, sell: CBA, CSL, and Life360 shares
• How much $500 a month could become with ASX shares

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

Thankfully for income investors, the Australian share market is home to a wide range of dividend-paying ASX shares.

But which ones could be top buys in May?

Listed below are three ASX dividend shares that could be worth buying this month. Here’s what you need to know about them:

Amcor plc (ASX: AMC)

The first ASX dividend share to look at is Amcor.

Amcor is a global packaging company that supplies flexible and rigid packaging products to customers across food, beverage, healthcare, personal care, and other consumer markets.

This gives the business exposure to everyday demand. Packaged food, medicine, and household goods continue moving through supply chains regardless of short-term market sentiment.

It is thanks to this that some analysts are expecting Amcor shares to offer dividend yields of more than 7% in both FY 2026 and FY 2027.

Rural Funds Group (ASX: RFF)

Another ASX dividend share worth looking at is Rural Funds Group.

It owns agricultural properties across Australia and leases them to operators in sectors such as cattle, cropping, almonds, macadamias, and vineyards.

The appeal here is the nature of the company’s assets. Farmland is a real asset tied to long-term demand for food and agricultural production. Rental income can also provide a clearer earnings stream than direct exposure to farm operating conditions.

Rural Funds still faces risks from interest rates, weather conditions, and tenant performance. But its portfolio gives income investors access to a part of the property market that looks very different from offices, shopping centres, or warehouses.

Its shares are expected to offer dividend yields of around 6% in FY 2026 and FY 2027.

Lottery Corporation Ltd (ASX: TLC)

A third ASX dividend share that could appeal is Lottery Corporation.

The company operates lottery and keno licences across much of Australia. These licences provide exposure to a large, regulated market with strong brand recognition and recurring customer activity.

Lottery earnings can be influenced by jackpot cycles, but the business has a cash-generative model and limited capital intensity compared with many other industries.

This can support dividends over time, particularly when trading conditions are favourable.

For income investors seeking exposure outside the usual sectors, Lottery Corporation offers a dividend stream backed by a defensive and highly cash-generative business model.

It is expected to offer dividend yields of 3.2% in FY 2026 and then 3.7% in FY 2027.

The post 3 excellent ASX dividend shares for income investors to buy in May appeared first on The Motley Fool Australia.

More reading

• Should investors buy low on these ASX shares hitting 52-week lows?
• Hunting passive income? Here are three ASX dividend shares to buy
• Why did this broker just lower its price targets on these ASX shares?
• Should you buy Amcor shares for the 7% dividend yield?
• Is this the best ASX dividend stock to buy for passive income?

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

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

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

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

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

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

So, what went wrong?

Profit guidance takes a hit

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

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

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

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

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

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

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

US network is the main problem

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

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

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

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

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

Buyback fails to calm investors

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

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

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

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

Foolish Takeaway

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

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

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

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

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

More reading

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

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

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

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

I think it could be the latter.

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

A global leader in sleep health

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

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

The market opportunity is large.

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

That gives ResMed a long runway.

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

Why I like the business model

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

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

That creates repeat demand.

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

I also like the margin profile.

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

What about drug competition?

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

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

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

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

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

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

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

A strong buy?

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

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

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

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

Foolish takeaway

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

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

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

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

More reading

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

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

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

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

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

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

None of that is pretty.

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

What went wrong

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

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

The drivers of the downgrade were a combination of factors.

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

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

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

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

Does the long-term investment case remain intact?

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

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

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

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

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

 CEO Dig Howitt stated in the April ASX announcement:

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

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

What the brokers think

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

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

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

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

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

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

Foolish takeaway

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

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

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

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

More reading

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

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

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

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

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

Forecast CBA dividend yield for FY26

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

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

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

Is dividend growth likely in FY26?

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

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

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

What about FY27?

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

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

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

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

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

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

More reading

• Which big four ASX bank stock is the best buy right now?
• Why is the ASX 200 starting at a 7-week low today?
• Buy, hold, sell: Catapult Sports, Worley, CBA shares
• ASX 200 energy shares rise as global oil shock drags on
• How low could CBA shares go? 4 brokers have their say

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

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

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

Breville Group Ltd (ASX: BRG)

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

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

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

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

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

Hub24 Ltd (ASX: HUB)

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

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

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

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

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

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

Megaport Ltd (ASX: MP1)

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

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

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

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

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

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

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

More reading

• 3 ASX mid-cap stocks that could be tomorrow’s big winners
• 3 ASX stocks that could win big from the AI infrastructure boom
• Why I think DroneShield and these ASX growth shares could beat the market over 10 years
• 3 ASX 200 shares I’d buy with $20,000
• 3 high-quality ASX 200 shares for beginners to buy and hold

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

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

Three ASX shares hitting new yearly lows were: 

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

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

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

Let’s see what experts are saying. 

Brambles crashes on trading update

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

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

Yesterday, it released a FY26 trading update.

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

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

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

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

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

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

Sonic Healthcare continues its slump

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

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

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

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

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

That indicates roughly 30% upside from current levels. 

Amcor continues to slide

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

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

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

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

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

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

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

More reading

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

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been a tough 2026 for ASX technology stock Gentrack Group Ltd (ASX: GTK). 

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

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

Why is this ASX technology stock crashing this year?

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

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

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

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

Bell Potter tips a rebound

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

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

The deal aims to strengthen its utilities platform.

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

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

Buy rating retained 

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

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

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

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

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

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

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

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

More reading

• Which ASX technology company, which is tipped to double in value, has just announced an acquisition?
• Which 2 ASX tech companies could more than double according to Shaw and Partners?
• Despite a recent trading downgrade this ASX small cap could still return more than 100%: Broker
• Down 75%: Is this ASX tech stock a bargain buy?
• Guess which ASX tech share is crashing 35% today

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