CSL Ltd (ASX: CSL) shares have surged 32% over the past month after stronger-than-expected plasma product sales. But with the rally potentially priced in, analysts see better value elsewhere in healthcare.

CSL shares are now trading around $174.80, above the average broker price target. Macquarie has a neutral rating and a target of just over $133, while UBS is more bullish at $181 and Morgan Stanley has a $172 target.

So, where could investors look instead?

Pro Medicus Ltd (ASX: PME)

Pro Medicus shares have endured a brutal 12 months, falling around 43%. But unlike CSL shares, the sell-off hasn’t been accompanied by a deterioration in the company’s underlying growth.

FY26 revenue increased 22.9% to $261.7 million, while underlying EBIT and NPAT climbed 24.4% and 24.1%, respectively.

Its Visage imaging software is already used by major healthcare systems across North America, yet management estimates it has captured only around 11% of the US market. That leaves plenty of room to grow.

Citi has a buy rating and $225 target, implying around 33% upside. Bell Potter is also bullish, with a $226 target, while Barrenjoey has a $210 target. JPMorgan is more cautious with a hold rating and $211 target.

ResMed Inc (ASX: RMD)

ResMed shares have bounced around 25% from their multi-year low in June, but remain down roughly 25% over 12 months. That’s a steeper decline than CSL shares, which still fell 18% over the same period despite their recent rebound.

The sell-off reflected broader pressure on healthcare shares, alongside macroeconomic uncertainty, inflation and cost-of-living concerns. A soft third-quarter update in May added to the pressure.

However, ResMed subsequently delivered a stronger fourth-quarter result, helping restore investor confidence.

The sleep-disorder specialist continues to deliver healthy revenue growth, expanding margins and strong free cash flow. Its third-quarter revenue rose 11% to US$1.4 billion, driven by demand for sleep devices, masks and accessories.

Most brokers rate ResMed shares buy or strong buy. The highest price target of $45.90 implies potential upside of around 46%.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix Pharmaceuticals operates in a highly specialised healthcare niche: radiopharmaceuticals. Its products combine radioactive isotopes with targeted diagnostics and therapies, helping doctors detect and treat diseases such as cancer with greater precision.

That creates significant barriers to entry and gives Telix shares an interesting growth profile that differs from CSL shares.

In August, Telix reported a 22% year-on-year increase in revenue to US$477 million, putting it towards the upper end of its FY26 guidance.

Brokers are increasingly bullish, with 13 of 16 analysts rating Telix shares buy or strong buy. The average $25.29 target implies roughly 53% upside from $16.50, while the most bullish forecast points to more than 85% potential upside.

For investors looking beyond CSL shares, these three healthcare names could offer considerably more upside.

The post Forget CSL shares. 3 ASX healthcare stocks with bigger upside 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, ResMed, and Telix Pharmaceuticals. 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 ResMed. The Motley Fool Australia has recommended CSL, Pro Medicus, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The All Ordinaries Index (ASX: XAO) has slid lower over the past month as ASX shares are hit by falling investor confidence, concerns about inflation, and interest rate hike fears.

At the time of writing, the All Ords Index is down around 3%.

But at times when confidence is sliding, it’s important to pinpoint shares which could outperform going forward. 

Here are two ASX shares that brokers are tipping to outperform the index over the next 12 months. And they’re forecast to grow by up to 42%.

Superloop Ltd (ASX: SLC)

Superloop is an Australian-based fixed-line internet service provider. It provides broadband services to consumers and businesses across the Asia Pacific region, and wholesale solutions to other downstream internet services entities. 

Its services include Wi-Fi management, mobile services, and National Broadband Network products. The company owns an extensive fiber network and is also a part-owner of the Indigo subsea cable. 

The telco has rapidly expanded in recent years with several large acquisitions. These include Lightning Broadband (an internet service provider) in May 2026, Uecomm (a fiber infrastructure) in 2024, and Exetel (an internet retailer) in 2021.

The company also posted an impressive FY26 earnings result last month. It reported a 21.6% increase in reported revenue, a 33.1% increase in underlying EBITDA, and NPAT of $17.5 million.

At the time of writing, Superloop shares are up around 0.5% for the day to $2.75. For the year-to-date the shares have increased around 8%, but the stock is about 12% lower than 12 months ago. 

Going forward, analysts are very bullish about Superloop’s potential for growth in FY27. Market Index data shows all brokers have a strong buy rating on the ASX telco shares. And the $3.90 average target price implies an upside of around 42%, at the time of writing.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store is an Australian retailer specialising in trend-led and casual men’s and women’s fashion, shoes, accessories, lifestyle, and gifting. 

The company owns a portfolio of popular premium fashion brands like Champion, Perfect Stranger, Tommy Jeans, Kiss Chacey, Thrills, Barney Cools, and others.

The ASX consumer discretionary shares crashed to a two year low in May after a deterioration in trading conditions saw investors quickly sell up their shares. 

The update followed a broad decline in discretionary shares, as geopolitical uncertainty and inflation concerns prompted an investor rotation towards more defensive sectors.

At the time of writing, Universal Store shares are down around 2% and changing hands at $7.62 each. For the year-to-date, the shares are down around 6% and 13% lower than 12 months ago.

But the experts appear to be confident that we’ll see a turnaround in the coming months. Market Index data shows all brokers have a strong buy rating on the shares, and the $9.67 average target price implies a potential 25% upside at the time of writing.

The post 2 ASX shares tipped by brokers to return 25% and 42% appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.

Many Australians may love the idea of receiving $80,000 a year of passive income and choosing to retire at the age of 50. Investing in ASX shares could be the best way to achieve that.

For some Aussies, retiring early could be appealing because it could mean enjoying more of life, calling it quits before the body can’t do the physical work any more, or just getting away from the desk and out into ‘life’.

Whatever the motivation for wanting to unlock $80,000 of annual passive income, reaching that goal could be very compelling.

Use compounding to build wealth

I think that every investor should keep the power of compounding in mind for long-term wealth creation.

One of the smartest people ever to live, Albert Einstein, once reportedly said:

Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.

By using compounding, we can invest in ASX shares that grow in value on their own. We don’t need to contribute any further money ourselves to see that growth in value.

Let’s look at two scenarios of how that could play out for someone.

Imagine someone is 20 right now and they manage to save $750 per month to invest in ASX shares. That translates into an annual investment total of $9,000. If we assume the portfolio returns an average of 10%, the portfolio would be worth $1.48 million after 30 years.

In another example, let’s consider someone who starts five years later at 25, so they can earn more and they can save $1,500 per month. If the portfolio returned the same 10% per year, it would grow to be worth an incredible $1.77 million.

Which ASX shares investors could buy for passive income to retire

If we go with the two example portfolios above, a $1.48 million portfolio would require a dividend yield of 5.4% to make $80,000 of annual passive income. Meanwhile, the $1.77 million portfolio would require a dividend yield of 4.5%.

There are a wide variety of investments that we can make to generate high passive income.

I’ll run through some businesses and other types of businesses that could be great options for a portfolio dividend yield of around 5%.

Firstly, I’ll highlight investment businesses such as Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Australian Foundation Investment Co Ltd (ASX: AFI), Australian United Investment Company Ltd (ASX: AUI), Future Generation Australia Ltd (ASX: FGX), PM Capital Global Opportunities Fund Ltd (ASX: PGF) and L1 Long Short Fund Ltd (ASX: LSF).

There are operating businesses like Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), Lovisa Holdings Ltd (ASX: LOV), Medibank Private Ltd (ASX: MPL) and JB Hi-Fi Ltd (ASX: JBH) that could all be compelling options.

Other top options for passive income include Charter Hall Long WALE REIT (ASX: CLW), Centuria Industrial REIT (ASX: CIP), Dexus Industria REIT (ASX: DXI), Rural Funds Group (ASX: RFF) and WCM Quality Global Growth Fund (ASX: WCMQ).

I think investors wanting to retire with $80,000 of annual passive income would be well-served by the above names, as well as other ASX shares that could deliver strong growth.

The post How much do I need to retire on $80,000 a year at 50? appeared first on The Motley Fool Australia.

More reading

• Is the Telstra share price a buy for its 6.25% dividend yield?
• What happens if the ASX share market crashes just after I retire?
• How much passive income could a $500,000 superannuation balance generate?
• Top 3 ASX shares to buy with $3,000 in September
• Which ASX shares win when the Aussie dollar is strong?

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, L1 Long Short Fund, Rural Funds Group, Washington H. Soul Pattinson and Company Limited, and Wcm Quality Global Growth Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Rural Funds Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Lovisa and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.