The S&P/ASX 200 Index (ASX: XJO) has fallen lower in Tuesday afternoon trade off the back of surging oil prices and investor concerns about potential interest rate increases.

At the time of writing, the ASX 200 is down around 1% for the day, and is now roughly 2% lower than 12 months ago.

But brokers have pinpointed some ASX 200 shares which could drag the index higher over the next year. Here are two of them, and they’re forecast to return up to 83% to investors.

NextDC Ltd (ASX: NXT)

NextDC operates data centres in Australia, New Zealand and Southeast Asia. The company builds and operates secure facilities where businesses can house their servers and IT equipment. 

It has physical centres, cooling, power, and security services and project support. And as data usage explodes, demand for secure, high-quality infrastructure is likely to grow alongside it.

The company is heavily investing in expanding its business too, including plans to accelerate the development of new facilities and expand existing sites, including its Sydney projects. 

Just last week the company confirmed it had secured a $1.1 billion funding boost to support its growth plans.

The company will also be added to the S&P/ASX 50 Index as part of a quarterly rebalance, effective from the 21st of September.

Late last month the company also reported a record FY26 result, including a 16% increase in total revenue, a 16% increase in net revenue, and a 15% increase in underlying EBITDA. Net revenue and underlying EBITDA figures came in above guidance.

For FY27, NextDC has guided for net revenue between $615 million and $640 million and underlying EBITDA of $385 million to $410 million, representing expected growth of over 50%.

Brokers are very bullish about the outlook for the ASX 200 shares over the next 12 months. Market Index data shows all brokers have a strong buy rating on the stock and the $20.79 average target price implies a potential upside of 83% at the time of writing.

Mesoblast Ltd (ASX: MSB)

The clinical-stage ASX biotech company has had a slow start to 2026 but leapt higher in mid-July. The shares have slumped again over the past month, seemingly off the back of an increase in investor caution around clinical timelines and profit-taking after the mid-year rally.

Late last month the company reported a sharp increase in revenue to US$120.3 million for FY26 (up from US$17.2 million in FY25) and a 44% reduction in net loss to US$57.5 million.

But there are opportunities for robust growth going forward. Mesoblast develops and commercialises allogeneic cellular medicines to treat complex diseases. Some products are already in use, and other cell therapies are in the late stages of clinical trials. 

Some of its products, particularly Mesoblast’s Ryoncil product, are gaining traction and the business is well-funded. 

Looking ahead, Mesoblast said it plans to expand its Ryoncil label to adults with severe SR-aGvHD and further advance development for chronic low back pain using rexlemestrocel-L. 

The company is also planning to develop next-generation cell therapies through new CAR-MSC and oncolytic virus technologies, broadening its pipeline for inflammatory and immunological diseases.

Brokers are also bullish that business growth and sales can continue growing strongly in FY27. Market Index data shows all brokers agree on a strong buy rating for the ASX 200 shares. The $3.60 target price implies a potential 73% upside, at the time of writing. 

The post 2 ASX 200 shares tipped by brokers to return 73% and 83% 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 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.

When it comes to investing in ASX shares, I try to be as optimistic as possible. That’s not just blind optimism. Statistically, it makes sense to be optimistic when investing in stocks or ASX exchange-traded funds (ETFs). The markets have historically gone up far more often than they go down. Plus, the S&P/ASX 200 Index (ASX: XJO) has never failed to exceed its previous all-time high, as we’ve seen many times in 2026.

Saying that, there are more than a few reasons to feel less-than-optimistic about the current state of the global economy. Inflation remains uncomfortably high across the world’s advanced economies. Interest rates have been ticking up and look likely to continue to do so. And adding literal fuel to the fire, oil prices have been surging higher over the past week, crossing US$100 a barrel. They could well hit US$110 a barrel if the current trajectory continues.

Now, if these factors result in a recession or stock market crash, my investing strategy won’t be changing. I’ll continue to buy high-quality companies at prices that make sense, and hold for the long term. But many investors don’t have that luxury. Many, particularly retirees and income investors, rely on their ASX shares and ETFs for their retirement income. These investors may struggle to cope, either psychologically or financially, if the markets take a tumble tomorrow.

If that’s you, you may wish to consider investing in what I think is one of the most defensive ETFs on the ASX. This ETF is none other than the iShares Global Consumer Staples ETF (ASX: IXI).

A defensive ASX ETF

This fund does pretty much what it says on the tin. It invests in an underlying portfolio of shares that are all leaders in the global consumer staples sector. Consumer staples are goods we tend to need to buy, rather than ones we purchase when we’re flush with cash or in the mood to splash out. They include food, drinks, and household essentials, as well as tobacco and alcohol products.

The beauty of these products as an investment comes from their very nature as staples. Even if times get tough and we have to collectively tighten our belts, we still need to eat, drink, and stock our households with life’s essentials. That makes the companies that manufacture and sell these goods very stable, predictable investments. Just consider some of the iShares Global Consumer Staples ETF’s holdings. They include Coca-Cola, Walmart, PepsiCo, Unilever, Costco Wholesale, Philip Morris International, Nestle, Monster Beverage, Colgate-Palmolive, and Procter & Gamble. Even our own Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) are included.

These companies are some of the world’s most resilient, defensive businesses. They either manufacture goods that people will buy, rain, hail, or shine, or else provide an easy place to buy those goods. That makes them incredibly resistant to both economic slowdowns and inflation.

So if you’re an investor who is looking at the state of the global economy with concern, this might be an appropriate ASX ETF to consider for your portfolio.

The post This ASX ETF could help protect your portfolio appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Coca-Cola, Costco Wholesale, PepsiCo, Philip Morris International, Procter & Gamble, and Unilever. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Colgate-Palmolive, Costco Wholesale, Monster Beverage, and Walmart. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nestlé, Philip Morris International, and Unilever. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been a brutal 12 months for DroneShield Ltd (ASX: DRO) shares.

The DroneShield share price is down another 1.09% to $1.59 today and is now sitting around its 52-week low.

The stock has fallen more than 50% over the past year and almost 49% in 2026.

But at this price, I think the risk-reward is becoming much more interesting.

I certainly wouldn’t make DroneShield one of my biggest holdings. But as part of a diversified portfolio, I’d be happy to buy some shares around these levels.

Here’s why.

The demand is there

The biggest reason I remain bullish is simple. Drones aren’t going away.

They are playing a bigger role in modern warfare, border security and the protection of critical infrastructure.

That means governments and defence customers need systems that can detect, track and stop them.

DroneShield is already turning that demand into revenue.

Its latest update showed FY26 committed revenue had reached $251 million, while another $46 million was committed for FY27 and beyond.

First-half revenue jumped 74% to $125.8 million, and recurring revenue climbed 229% to $11.5 million.

The company has also received its first order for the new RfRecon product from an existing Western European military customer.

To me, that is exactly what I want to see. If those orders keep building, I think the current share price could end up looking pretty cheap.

Could short sellers send the shares higher?

This is another part of the setup I find very interesting.

The latest short-selling data shows 15.46% of DroneShield shares are currently sold short, making it the second-most shorted stock on the ASX.

That’s a huge number of investors betting against the company.

Of course, short interest is there for a reason. DroneShield is still loss-making, with first-half underlying EBITDA of $12.4 million in the red and a statutory loss of $32.2 million.

But keep in mind, heavy short interest can work both ways.

If DroneShield announces a large new contract, some short sellers may decide they no longer want to stay in the trade.

Buying shares back to close those positions could add extra demand at the same time other investors are buying the news.

And with short interest this high, I think a genuinely good announcement could send the share price higher very quickly.

Would I buy today?

At $1.59, I would.

TipRanks shows 4 ranked analysts covering the stock, with 2 buys and 2 sells. The average 12-month price target is $1.98, about 25% above the current price.

Bell Potter sits at $2.40 and Canaccord Genuity at $2.60.

Yes, there are still plenty of risks, particularly around profitability, margins and execution.

That is why I’d keep the position relatively small.

But I think the potential upside makes the risk worthwhile.

The post DroneShield shares have crashed 51% in a year. Here’s why I’d buy them today 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 positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.