Debt gets a bad rap amongst ASX share investors and, to be fair, it’s often deserved. High debt, when taken on for the wrong reasons can sink even quality businesses. But used well, debt can also be a powerful tool.

When considering company debt, look at it from a few angles:

• What is the debt funding?
• How predictable are the cash flows that support it?
• Does management use it as a crutch or a strategic tool?

Debt as a strategy

Debt can be built into a company’s model and used to create leverage. Done well, debt can boost return on equity, manage tax liabilities and build future revenue streams.

There are plenty of examples of this, but the infrastructure assets sector is a good one to look at.

Take ASX share Transurban Group Ltd (ASX:TCL), for example. If you looked its balance sheet alone, debt is high. In FY25, its books showed group debt of $26.8 billion.

But when you step back and investigate, it makes sense. As a toll road provider, Transurban’s projects are usually capital intensive with long delivery time frames and often, predictable demand. Once finished, these projects tend to deliver reliable cash flows, so taking on debt to complete the project is likely a rational move.

Used this way, company debt can create leverage without materially increasing business risk.

Debt as a tool

Debt can also be used as a tool to increase financial flexibility.

Essentially, company debt is used to accelerate growth and adapt with agility when interest rates rise or markets tighten, often via revolving credit facilities (RCFs).

ASX share Goodman Group Ltd (ASX:GMG)  is an example of a company that uses RCFs well. It maintains a strong liquidity buffer ($6.6 billion as at FY25) and keeps gearing relatively low. Usage of credit facilities is intermittent to manage cycles or act on strategic opportunities.

Debt as a crutch

This is the kind of debt investors should be more wary of. Debt can quickly become a liability when a company uses it to fund business as usual.

This type of company debt is more often seen in industries with tight margins and volatile conditions.

Perhaps one of the most cautionary tales from the sector is electronics retailer, Dick Smith. In the lead up to its much-publicised decline, the retailer continued to post relatively healthy revenue, but under the water it was paddling hard. Debt was being used to maintain the appearance of momentum, funding inventory and pulling future sales forward.

High debt isn’t uncommon in retail – and it can be a pathway to turnaround, but it is one that carries significantly higher risk. As was the case for Dick Smith, when consumer demand softens, the company’s balance sheet can’t provide a defence, and the debt can go from manageable to fatal in a matter of weeks.

If debt is tied to short-term earnings and inventory, it’s worth taking a deeper look at what’s happening below the surface.

The bottom line

Of course, a company without debt is much less likely to go under, but in some sectors, particularly capital-intensive ones, debt can be a solid pathway to growth.

The most important question for ASX share investors to ask is how is the debt being used? Is it creating leverage to realise future revenue or providing a crutch to enable continued trading?

If it’s the former, then it’s a functional tool that can deliver positive outcomes for investors. If it’s the latter, it’s a potential red flag and only worth considering if you understand and trust in the levers the company can use to turn things around.

The post How to assess company debt as a new ASX share investor appeared first on The Motley Fool Australia.

More reading

• 3 of the best ASX stocks to buy in March
• If the ASX crashes tomorrow, here’s exactly what I’d do
• How to turn $10,000 into $100,000 with ASX shares
• Where to invest $20,000 in ASX shares after the market selloff
• Goodman, Scentre Group, Stockland: Why are ASX 200 real estate stocks tumbling in 2026?

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

Artificial intelligence (AI) is rapidly transforming industries across the global economy.

From cloud computing and healthcare to data infrastructure and enterprise software, businesses are increasingly investing in AI-powered tools and digital platforms to improve productivity and unlock new capabilities.

While many investors immediately think of large US technology companies when considering AI opportunities, several ASX growth shares are also well positioned to benefit from this powerful long-term trend.

Here are three shares that could ride the AI wave over the coming years, rather than be disrupted by it.

NextDC Ltd (ASX: NXT)

One ASX growth share that could benefit significantly from the AI boom is NextDC.

The company operates a network of high-performance data centres that provide the infrastructure required for cloud computing, hyperscale workloads, and artificial intelligence systems.

Training and running AI models requires enormous computing power and data storage capacity. As a result, demand for advanced data centre facilities has surged as technology companies and enterprises build out their AI capabilities.

NextDC’s facilities provide secure, highly connected environments where major cloud providers and enterprise customers can deploy large-scale computing infrastructure.

The company has also reported a record forward order book of contracted capacity that is expected to ramp into billing over the coming years, giving it strong visibility over future revenue growth.

With AI adoption accelerating globally, demand for the type of digital infrastructure NextDC provides could continue rising for many years.

Morgans recently tipped NextDC as a buy with a $20.50 price target.

Pro Medicus Ltd (ASX: PME)

Another ASX growth share that could benefit from the rise of artificial intelligence is Pro Medicus.

The healthcare technology company develops imaging software used by hospitals and radiologists to view and analyse medical scans.

Medical imaging generates enormous volumes of data, and AI tools are increasingly being used to assist doctors in detecting conditions such as cancer, heart disease, and other abnormalities.

Pro Medicus’ Visage platform is designed to process and display complex medical images extremely quickly, which can help clinicians work more efficiently and improve patient outcomes.

Importantly, the company’s platform can integrate artificial intelligence algorithms, allowing hospitals to combine AI analysis with advanced imaging workflows.

As healthcare systems increasingly adopt AI-powered diagnostic tools, demand for high-performance imaging platforms like those developed by Pro Medicus could continue growing.

Xero Ltd (ASX: XRO)

A final ASX growth share that could benefit from AI is Xero.

The accounting software company provides cloud-based financial management tools to millions of small and medium-sized businesses around the world.

Artificial intelligence is expected to play a major role in automating many accounting tasks such as invoice processing, expense categorisation, and financial forecasting.

By integrating AI into its platform, Xero aims to help businesses save time, gain insights from their financial data, and automate repetitive administrative work.

Over time, these AI-driven capabilities could make the platform even more valuable to small businesses and accountants, strengthening customer retention and attracting new users.

As AI becomes increasingly embedded into everyday business operations, Xero could be well positioned to benefit from this shift toward smarter, automated financial software. In addition, with unique data sets and complex tax rules, it would be hard to be disrupted by AI.

The post 3 ASX growth shares that could benefit from the AI boom appeared first on The Motley Fool Australia.

More reading

• 3 ASX stocks brokers say could double in the next year
• 3 of the best ASX stocks to buy in March
• What are the best ASX 200 shares to consider buying for the next 5 years?
• Here are the top 10 ASX 200 shares today
• 2 ASX growth shares tipped to double in value

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

With March bringing significant volatility for ASX stocks, there is plenty of opportunity for value investors.

Unsurprisingly, much of the opportunity lies with ASX healthcare and technology stocks that have struggled over the past year. 

For context, the S&P/ASX 200 Health Care Index (ASX: XHJ) is down 30% in the last 12 months. 

The S&P ASX All Technology Index (ASX: XTX) is down 20% in that same span. 

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) is up 11.2%. 

With that in mind, here are three ASX stocks drawing price targets from brokers indicating significant upside. 

WiseTech Global Ltd (ASX: WTC)

WiseTech shares have been hotly covered recently as the company has clawed back some momentum after enduring a 60% fall in the back half of last year. 

Positive earnings results in February have started to turn the tide for this technology company. 

The Motley Fool’s Grace Alvino laid out the compelling case for WiseTech shares last week, with AI tailwinds, market positioning and leadership all pointing towards a year of growth. 

Brokers are also anticipating a strong recovery during 2026. 

The logistics software company closed trading last week at $47.57 each.

15 analysts forecasts via TradingView have an average one year price target of $85.95, with the highest estimates reaching $123.83. 

These targets indicate upside between 80% and 160%. 

CSL Ltd (ASX: CSL)

CSL is another ASX stock that brokers remain positive on, despite a rough 12 months. 

The Australian-based global biotechnology company has seen its share price fall 43% over the last year, and now sits close to its 52-week low.

On Friday, it closed trading at $141.03. 

However, Morgans recently put a buy rating and $241.34 price target on the ASX healthcare stock. 

This indicates upside of 71%. 

Pro Medicus Ltd (ASX: PME)

Another struggling ASX healthcare stock tipped to recover is Pro Medicus. 

The company provides medical imaging technology globally.

Its share price is down more than 42% in the last year. 

However, it signed two key five year contracts last week.

Specifically, the company’s wholly owned US subsidiary, Visage Imaging, signed two five-year contract renewals with a combined minimum value of $40 million.

It’s possible this marks the beginning of a rebound. 

It closed last week at $133.00. 

However, 13 analyst ratings via TradingView have an average one year price target of $218.44. 

This indicates 64% potential upside.

The post 3 ASX stocks brokers say could double in the next year appeared first on The Motley Fool Australia.

More reading

• 3 ASX growth shares that could benefit from the AI boom
• 3 reasons to buy WiseTech shares today
• Should I buy WiseTech shares? Yes or no
• How to turn $10,000 into $100,000 with ASX shares
• 2 ASX growth stocks to buy now and hold for 10 years

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 CSL and 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 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.

The Australian share market traditionally provides Aussie investors with a 4% dividend yield.

While that is an attractive yield, you don’t have to settle for it.

Not when there are analysts out there forecasting significantly greater yields from the three buy-rated ASX dividend shares listed below.  Here’s what they are recommending:

APA Group (ASX: APA)

The first ASX dividend share that brokers are tipping as a buy is APA Group.

It owns and operates critical energy infrastructure across Australia, including gas pipelines, storage facilities, and power assets. These assets are typically long life and regulated or contracted, which helps provide steady and visible cash flows.

Macquarie currently has an outperform rating and $9.58 price target on its shares.

As for income, Macquarie is forecasting dividends of 58 cents per share in FY 2026 and then 59 cents per share in FY 2027. Based on its current share price of $9.18, that equates to very attractive dividend yields of 6.3% and 6.4%, respectively.

Charter Hall Retail REIT (ASX: CQR)

Another ASX dividend share that could be a buy in March is the Charter Hall Retail REIT.

It is a property trust that owns a diversified portfolio of convenience-based retail centres anchored by supermarkets, service stations, and essential services.

As shoppers continue to spend on groceries and everyday necessities regardless of economic conditions, these assets tend to be defensive.

Together with long lease terms and high-quality tenants, Charter Hall Retail has good visibility over future rental income. This supports consistent distributions to unitholders.

Macquarie is also a fan of the company and is expecting some big dividend yields in the near term.

The broker is forecasting dividends per share of 25.5 cents in FY 2026 and then 25.4 cents in FY 2027. Based on its current share price of $3.87, this would mean dividend yields of 6.6% and 6.55%, respectively.

Macquarie has an outperform rating and $4.15 price target on its shares.

Dexus Industria REIT (ASX: DXI)

A third ASX dividend share that brokers are positive on is Dexus Industria.

It focuses on industrial assets, including warehouses and logistics facilities, which continue to benefit from structural trends such as ecommerce and supply chain optimisation.

Bell Potter is positive about the company’s outlook and recently put a buy rating and $3.00 price target on its shares.

As for income, the broker is forecasting dividends of 16.6 cents per share in FY 2026 and then 16.8 cents per share in FY 2027.  Based on its current share price of $2.40, this would mean dividend yields of 6.9% and 7%, respectively.

The post 3 top ASX dividend shares with 6%+ yields appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares I’d buy instead of Westpac
• 5 high-yield ASX dividend shares paying 6% to 10%
• 5 ASX dividend stocks to buy with $25,000 in March
• 3 ASX shares I would buy to protect against a recession
• This would be my $1 million ASX retirement portfolio

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

Two of the biggest winners during earnings season were Rio Tinto Ltd (ASX: RIO) and BHP Group Ltd (ASX: BHP). 

BHP shares rocketed 16% higher during February, while Rio Tinto shares climbed 13%. 

Both ASX mining giants hit yearly highs during this time, however since then, have lost significant ground. 

Why are these miners falling?

Since hitting yearly highs, BHP shares have fallen roughly 16%, while Rio Tinto shares have dropped just over 6%. 

It’s possible this is a combination of a slightly inflated share price along with ripple down effects from the developing conflict in the Middle East. 

The importance of the Strait of Hormuz for global oil supply has been well-documented over the past couple of weeks

Although BHP was not directly exposed to an oil supply shock, it remains highly vulnerable to the ripple effects. 

One major reason is its heavy reliance on fuel inputs – particularly diesel. This represents a significant portion of the company’s cost base. 

Large-scale mining operations require enormous amounts of fuel to power extraction equipment, haulage fleets, and the transportation networks.

Interruptions to fuel supply therefore pose a serious operational and financial risk to the miner.

In addition, many of the largest consumers of oil and petroleum products passing through the Strait of Hormuz are in Asia – most notably India and China. 

These countries are also among BHP’s most important customers. 

If energy shortages were to disrupt operations at Chinese steel mills or refineries, demand for key raw materials could quickly decline. 

In such a scenario, companies like BHP would likely be among the first suppliers contacted to delay or cancel shipments of commodities such as iron ore and copper.

It’s worth noting that BHP chairman Ross McEwan reinforced in early March that the global mining giant sees “little immediate impact from the US-Iran conflict.”

For Rio Tinto, increased shipping costs, insurance premiums, and uncertainty in supply chains for metals could be weighing on sentiment. 

Higher commodity prices could theoretically boost revenues in the short term. Meanwhile logistics risks, energy costs, and market volatility create uncertainty for the company and its investors.

What are experts saying?

After recent share price declines, investors may be considering buying the dip in these blue-chip stocks.

On Friday, Morgans upgraded Rio Tinto shares to a hold rating (previously trim). 

The broker now has a price target of $147.00. 

However, from last week’s closing price of $157.89, that indicates a potential downside of approximately 7%. 

Meanwhile, for BHP shares, 16 analysts forecasts via TradingView have an average one year price target of $53.02 on the company. 

From last week’s closing price, that indicates an upside of 6.46%. 

The post Are Rio Tinto or BHP shares a better buy right now? appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs for new investors to consider in 2026
• Buy, hold, sell: DBI, GQG Partners, and Rio Tinto shares
• Is this ASX mining giant quietly setting up its next big move?
• Rio Tinto share price rises despite incident at major US copper mine
• Why Cobram Estate, EOS, Magellan, and Rio Tinto shares are storming higher today

Motley Fool contributor Aaron Bell has positions in BHP Group. 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX is home to a wide range of companies, from mature dividend payers to high-growth businesses.

Right now, a few ASX growth shares stand out to me for different reasons. One operates in a rapidly expanding defence technology market, another is benefiting from structural growth in financial advice platforms, and the third has built a global leadership position in medical technology.

Here are three ASX shares I think could be worth buying.

DroneShield Ltd (ASX: DRO)

DroneShield is one of the most fascinating companies on the ASX right now.

The business specialises in counter-drone technology, providing solutions designed to detect and neutralise hostile drones. As drones become more widely used in both civilian and military settings, the need for systems that can defend against them is increasing rapidly.

What attracts me to DroneShield and its shares is the scale of the opportunity. Defence spending is rising globally and counter-drone technology is becoming an important part of modern security systems. DroneShield’s technology is already being used by military, government, and law enforcement customers around the world.

This is still a relatively small company compared with many defence contractors, which means it has plenty of room to grow if adoption continues to increase.

In my view, that combination of a large addressable market and proven technology makes DroneShield a particularly interesting long-term growth story.

HUB24 Ltd (ASX: HUB)

HUB24 is a company I keep coming back to when I think about structural growth on the ASX.

The company’s platform provides technology and investment solutions used by financial advisers to manage client portfolios. Over the past several years, it has consistently taken market share as advisers move toward modern platforms that offer better functionality and service.

What I like about HUB24 is that it is benefiting from multiple long-term tailwinds at the same time. The shift toward professional financial advice continues, the wealth management industry keeps growing, and advisers are increasingly consolidating onto a smaller number of high-quality platforms.

As funds under administration rise, the platform can generate more revenue without needing to increase costs at the same pace. That creates operating leverage and helps drive strong earnings per share growth.

Personally, I think HUB24 still has a long runway for expansion as the Australian wealth management industry continues to evolve.

ResMed Inc (ASX: RMD)

ResMed is another ASX share that I believe has a powerful long-term growth story.

The company develops medical devices and software designed to treat sleep apnoea and other respiratory conditions. These products are used by millions of patients around the world.

What stands out to me is the structural demand for its products. Sleep apnoea remains significantly underdiagnosed globally, and awareness of the condition continues to increase.

ResMed also has a strong competitive position thanks to its best-in-class technology, brand recognition, and growing ecosystem of digital health tools that connect patients, clinicians, and healthcare providers.

In my view, that combination of medical demand and technological leadership makes ResMed one of the most compelling long-term healthcare shares on the ASX.

Foolish takeaway

These companies are each benefiting from long-term structural trends that could support growth for many years to come.

For investors looking for ASX shares with strong long-term potential, I think all three are worth serious consideration.

The post Why I think DroneShield and 2 more ASX shares are buys appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• If the ASX crashes tomorrow, here’s exactly what I’d do
• Here are the top 10 ASX 200 shares today
• 5 incredible ASX 200 shares I’d buy with $10,000
• 26 ASX shares with ex-dividend dates next week

Motley Fool contributor Grace Alvino has positions in DroneShield and Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield, Hub24, and ResMed and is short shares of DroneShield. The Motley Fool Australia has positions in and has recommended ResMed. 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.

Northern Star Resources Ltd (ASX: NST) shares are in focus this week after the company experienced a historic crash on Friday. 

The share price tumbled more than 18% in a single day. 

It has now fallen more than 30% since the start of March. 

What’s going on with Northern Star shares?

Northern Star Resources is a global-scale Australian gold producer with projects in Australia and North America. 

Northern Star currently has gold production centres at its Kalgoorlie and Yandal projects in Western Australia and the Pogo goldfields in Alaska.

In 2025, it was one of the many ASX gold shares that enjoyed a strong run amidst record global gold prices as investors pushed into safe-haven assets.

However, on Friday, investors were exiting their positions after the company released an operational update.

What did the company release?

The company’s operational update included an indication it may miss the lower end of its full-year production forecast, with operational challenges impacting FY26 so far.

Specifically, Northern Star reported: 

• Total gold sales for January and February 2026: 220,000 ounces (koz)
• FY26 production now expected above 1.50 million ounces (Moz), previously guided higher
• Weaker-than-planned milling performance at KCGM and reduced mining productivity at Jundee weighed on results
• KCGM mine open pit high-grade ore mined: averaged 1.6g/t for the first two months of 2026
• KCGM mill expansion project remains on track for early FY27 commissioning. 

Northern Star expects to provide more detail on FY26 production and costs with its March quarter results on 22 April 2026. 

Despite the recent crash during March, Northern Star shares remain up 25% over the last year. 

Are Northern Star shares a buy, hold or sell?

Sentiment on the Australian gold producer is mixed amongst analysts. 

Northern Star shares closed last Friday at $21.75. 

Last month, Bell Potter had a price target on the company of $35.00. 

However its important to note this was prior to the latest reduced guidance out of the company. 

18 analysts forecasts via TradingView have an average one year price target of $32.56. 

There is a wide range of perspectives however, with the highest target sitting at $41.80, while the lowest sits at $17.00. 

If the share price reached this high, it would be a gain of more than 90%. 

Meanwhile, if it were to reach the low range of this guidance, it would be a further 22% drop. 

The post Northern Star Resources shares just crashed – time to buy the dip? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Why CAR Group, Immutep, Northern Star, and Syrah Resources shares are sinking today
• Northern Star shares crash 16% on second guidance downgrade for FY26
• Northern Star trims FY26 guidance and updates on KCGM mill expansion
• 5 things to watch on the ASX 200 on Thursday

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 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.

ASX stocks across the board have come under pressure in recent months. Investors have been reassessing valuations amid concern over how artificial intelligence could disrupt traditional business models.

That weakness has pushed a number of high-quality companies well below recent highs. For long-term investors, that could make March a good time to take a closer look at some market leaders trading at more attractive valuations.

Here are three of the best ASX stocks that might be worth considering right now.

REA Group Ltd (ASX: REA)

REA Group is one of Australia’s most dominant digital platforms, operating the realestate.com.au property portal and a growing suite of property data and financial services tools.

The company benefits from a powerful network effect. With millions of monthly users and strong engagement, realestate.com.au remains the go-to destination for buyers and sellers.

The ASX stock has also demonstrated significant pricing power, with revenue growth often driven by higher listing yields and premium advertising products. Importantly, the business is highly profitable, with strong margins and excellent returns on capital.

REA is closely tied to property market activity. When listing volumes fall, growth can slow. In its recent half-year result, national listings declined and net profit dropped due partly to one-off factors.

There are also emerging competitive risks, including increased competition from other property platforms.

Despite the recent pullback, 27% over 6 months, most analysts remain cautiously optimistic. The 12-month price target hovers around $220, implying 30% potential upside at the time of writing.

Goodman Group (ASX: GMG)

This $52 billion stock is a global industrial property giant that owns, develops, and manages logistics facilities and business parks around the world.

The company is increasingly positioning itself as a major player in digital infrastructure. Data centres now make up a significant portion of its development pipeline, reflecting booming demand from cloud computing and artificial intelligence workloads.

With a global property portfolio valued at more than $80 billion and occupancy above 96%, Goodman enjoys strong underlying fundamentals.

As a property developer, Goodman remains exposed to interest rates and broader economic cycles. Higher financing costs or slowing development activity could weigh on earnings.

Broker sentiment remains constructive. Analysts at Macquarie have retained their outperform rating and $32.20 price target on this ASX stock. This points to a potential gain of 20% over 12 months.

Xero Ltd (ASX: XRO)

Xero is one of the world’s leading cloud accounting software providers for small and medium-sized businesses.

The company has built a powerful subscription-based platform used by millions of businesses globally. Its ecosystem of accountants, add-on apps, and financial services helps create strong customer retention and recurring revenue.

Xero is also investing heavily in artificial intelligence features that could expand its product offering and help it capture a share of the rapidly growing global SaaS market.

Like many software companies, Xero has been caught up in the recent tech sell-off as investors worry that AI could disrupt traditional software models. The ASX stock is also investing heavily in growth initiatives, which can pressure margins in the short term.

Despite near-term volatility, many analysts remain positive on Xero’s long-term outlook as it expands internationally and deepens its product ecosystem. UBS is very bullish. It currently has a buy rating and $174 price target on Xero’s shares, which implies potential upside of over 117%.

Foolish Takeaway

Market pullbacks can create opportunities to buy high-quality companies at more reasonable prices. REA Group, Goodman Group, and Xero each operate leading platforms in large global markets.

While short-term volatility may continue, investors with a long-term horizon may find these ASX leaders worth considering in March.

The post 3 of the best ASX stocks to buy in March appeared first on The Motley Fool Australia.

More reading

• If the ASX crashes tomorrow, here’s exactly what I’d do
• Brokers name 3 ASX shares to buy today
• 2 ASX growth shares tipped to double in value
• How to turn $10,000 into $100,000 with ASX shares
• Where to invest $20,000 in ASX shares after the market selloff

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

WiseTech Global Ltd (ASX: WTC) shares have had a brutal run. The ASX tech stock shares has plunged roughly 50% over the past six months and is down about 30.5% year to date.

The sell-off has been driven by a mix of governance concerns, weaker-than-expected guidance, and broader pressure on high-growth software stocks.

But for long-term investors willing to stomach volatility, the pullback could present an opportunity. Here are three reasons WiseTech shares may be worth a closer look today.

A global logistics software leader

WiseTech is best known for its flagship CargoWise platform, which helps freight forwarders, logistics companies, and supply chains manage complex global trade operations.

The $16 billion company has spent decades building deep integrations across customs agencies, carriers, and logistics providers, creating a powerful network effect. This kind of specialised infrastructure software can be extremely difficult for competitors to replicate.

Despite the share price slump, demand for its products remains strong. WiseTech shares reported revenue in the first half of FY2026 of about US$672 million, an increase of 76% compared to the same period the year before. EBITDA grew 31% to US$252 million.  

If global trade volumes keep expanding and supply chains become more digital, WiseTech could remain a key software provider to the logistics industry.

The long-term growth story remains intact

While investors have focused on short-term issues for WiseTech shares, the tech company is still targeting strong growth over the next few years.

Management is guiding to FY2026 revenue of between US$1.39 billion and US$1.44 billion, and EBITDA of between US$550 million and US$585 million.

That implies significant expansion compared with previous years and reflects ongoing adoption of its software globally.

On top of that, the company continues to invest heavily in new products and acquisitions aimed at expanding its logistics ecosystem.

Delays to key products — such as its Container Transport Optimisation rollout — hurt sentiment last year and the price of WiseTech shares. But those products could still become major growth drivers once fully deployed.

For patient investors, the current weakness could simply be a pause in a longer-term growth trajectory.

Cost cuts and AI could boost profitability

WiseTech is also undergoing a major operational transformation.

The company recently announced plans to cut up to 2,000 roles as part of an AI-driven efficiency program designed to streamline development and operations.

Management believes artificial intelligence can significantly improve productivity and accelerate software development. It could allow the business to operate more efficiently in the future.

If those initiatives succeed, they could help expand margins and improve earnings growth over the coming years. This might be something the market hasn’t yet fully priced in.

Foolish Takeaway

There’s no doubt WiseTech shares come with risk. Governance controversies, product delays, and investor concerns around AI disruption have weighed heavily on sentiment.

But after such a steep decline, investors may want to ask whether the market has become overly pessimistic.

Morgans is bullish on WiseTech shares and has a buy rating and a 12-month price target of $83.80 on its shares. This points to a 76% upside at the time of writing.

The post 3 reasons to buy WiseTech shares today appeared first on The Motley Fool Australia.

More reading

• Should I buy WiseTech shares? Yes or no
• How to turn $10,000 into $100,000 with ASX shares
• 5 things to watch on the ASX 200 on Friday
• 3 ASX tech shares to buy amid ongoing tech wreck
• Why Breville, Forrestania Resources, GQG Partners, and WiseTech shares are falling today

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

One of the reasons I like exchange-traded funds (ETFs) is their simplicity.

ETFs allow investors to gain exposure to a wide range of companies through a single investment. That can make building a diversified portfolio much easier, particularly for those who prefer a more hands-off approach.

Personally, I think ETFs can also be useful tools for targeting different investment goals. 

Some are designed for long-term growth, others focus on income, and some provide diversification across global markets.

If I were thinking about those three goals, here are three ASX ETFs that stand out to me.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

When I think about long-term growth ETFs, the Vanguard Diversified High Growth Index ETF is one of the first that comes to mind.

What I like most about the VDHG ETF is that it provides exposure to thousands of companies around the world through a single investment. The fund invests primarily in global and Australian shares, with smaller allocations to other asset classes like bonds.

The portfolio is heavily tilted toward growth assets, which is exactly what I would want if I were investing for the long term. Instead of relying on the Australian market alone, investors gain exposure to global economies and industries.

Personally, I think that global diversification can be very powerful over long periods of time. It allows investors to participate in the growth of companies and industries that simply don’t exist on the ASX.

Betashares S&P Australian Shares High Yield ETF (ASX: HYLD)

For investors focused on income, the Betashares S&P Australian Shares High Yield ETF could be worth a closer look.

This ETF is designed to track an index made up of high-dividend-yielding Australian shares. Many of the companies included are well-known ASX dividend payers across sectors like banking, resources, telecommunications, and infrastructure. This includes BHP Group Ltd (ASX: BHP), Telstra Group Ltd (ASX: TLS), and National Australia Bank Ltd (ASX: NAB).

Australia has long been known for its dividend culture, and many companies regularly pay fully franked dividends. That can make income-focused ETFs particularly appealing for investors seeking passive income.

In my view, an ETF like the HYLD ETF could provide exposure to a diversified portfolio of high-yielding shares without needing to select individual dividend stocks.

iShares Global 100 ETF (ASX: IOO)

Another ETF I find interesting is the iShares Global 100 ETF.

This fund focuses on around 100 of the largest and most established companies in the world. These businesses include global leaders across industries such as technology, healthcare, consumer goods, and financial services.

What stands out to me about the IOO ETF is the quality of the companies it holds. Many of the businesses in the index are dominant global brands with strong competitive advantages and global revenue streams.

For Australian investors, this type of exposure can complement a domestic portfolio nicely. The ASX is heavily concentrated in banks and miners, so global ETFs like this can add exposure to sectors such as technology and global consumer brands.

Foolish takeaway

There is no single ASX ETF that suits every investor.

But in my view, different ETFs can play different roles within a portfolio. Some can help drive long-term growth, others can generate income, and some provide valuable global diversification.

The VDHG ETF offers broad global exposure with a strong growth focus. The HYLD ETF provides access to high-dividend Australian companies. And the IOO ETF gives investors exposure to some of the largest and most influential businesses in the world.

The post The ASX ETFs to buy for growth, income, and diversification appeared first on The Motley Fool Australia.

More reading

• Why I think these Vanguard ETFs could outperform the ASX 200
• $5,000 to invest? Here’s how I’d split it across the ASX
• New to the share market? Here are 3 ASX ETFs to buy for easy investing
• The lazy investor’s guide to ASX ETFs
• Invest $40,000 in this ASX dividend stock for $140 in monthly passive income

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.