The Australian healthcare sector has rebounded well over the August reporting season, with Bell Potter analysts saying it was the key sector winner with about a 20% improvement.

Major improvements in stocks, including CSL Ltd (ASX: CSL), Ramsay Healthcare Ltd (ASX: RHC), and Cochlear Ltd (ASX: COH) bolstered the sector, following weakness earlier in the year.

Where does the broker see good value now?

Bell Potter has selected seven ASX healthcare shares as its key picks going forward, some of which it says could more than double in value.

One of these is Clarity Pharmaceuticals Ltd (ASX: CU6), which Bell Potter said could have some big news shortly.

The broker said:

For companies with significant clinical readouts over the near-term, it’s hard to go past CU6 which is expected to deliver topline data from its two PSMA imaging Phase 3 trials in early CY27. The data from these studies should support a New Drug Application for 64Cu SAR bis PSMA in CY27. Once approved, we expect 64Cu SAR bisPSMA will enter the ~US$3b PSMA imaging market with a highly differentiated label claim to the incumbents.

Bell Potter has a speculative buy rating on the shares with a $6.40 price target.

The broker is also predicting solid share price gains for Mesoblast Ltd (ASX: MSB), which has been preforming well since gaining FDA approval for its drug Ryoncil in late 2024.

Bell Potter said Mesoblast was also progressing a lower back pain drug, with a large potential market.

Its price target for Mesoblast is $4.45.

Other companies which are scaling up in the US are Lumos Diagnostic Holdings Ltd (ASX: LDX) and Aroa Biosurgery Ltd (ASX: ARX).

Bell Potter said regarding these two:

LDX is rapidly scaling its commercial channels ahead of its first flu season in North America, while ARX is driving strong direct growth through Myriad and positioning to capitalise on disruption across the outpatient chronic wound market with Symphony. Both remain well positioned in sizeable US growth opportunities.

Bell Potter has a price target of 25 cents on Lumos and $1.09 on Aroa.

The broker also likes Vitrafy Life Sciences Ltd (ASX: VFY), which it said “has recently emerged with the potential to develop dominant positions across various large cryopreservation markets, but particularly in the blood products segment”.

Bell Potter has a price target of $5.15 on Vitrafy.

The broker said Cogstate Ltd (ASX: CGS) delivered “stellar returns” in FY26, “following significant contract wins across an increasingly diverse range of clinical indications and channel partners”.

It has a price target of $3.70 on Cogstate.

And lastly, Bell Potter is also bullish on Pro Medicus Ltd (ASX: PME), which it said “continues to win ever more business in the US”.

Bell Potter has a price target of $226 on Pro Medicus.

The post 7 ASX healthcare stock picks from Bell Potter appeared first on The Motley Fool Australia.

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

I’d describe Sigma Healthcare Ltd (ASX: SIG) as one of Australia’s top shares for a variety of reasons, and I think right now is a great time to invest.

Most of the company’s profit generation comes through its ownership of the Chemist Warehouse franchise business. It also owns the Amcal and Discount Drug Store businesses.

In my view, Sigma Healthcare is delivering exceptional growth and its outlook is very compelling. Let me run through three very attractive elements.

Strong Australian growth         

The company’s core earnings driver is Australia, where a vast majority of the franchise stores are located. There were 561 Australian Chemist Warehouse stores at the end of FY26, following the addition of 24 locations in FY26.

The Australian segment saw revenue growth of 14.9% to $10.4 billion, with Chemist Warehouse branded like-for-like network sales growth of 13.4% amid continued demand for GLP-1 medicines.

Over the long term, it has franchise network targets of around 900 Chemist Warehouse stores, around 300 Amcal locations, and approximately 150 Discount Drug Stores.

It expects to open 13 Chemist Warehouse-branded stores in the first half of FY27, with 12 refurbishments also planned.

The fact that the business continues to deliver double-digit revenue growth after such a long time says to me that the business can deliver good revenue growth for the foreseeable future.

Exciting international growth

Australia is not the only market where the company is growing. Excitingly, it has a presence in New Zealand, Ireland, the UAE, and UK. It also has a presence in China where it’s focusing on profitable online sales.

In FY26, 20 stores were opened in international markets, with 14 new stores in New Zealand and four new ones in Ireland.

Impressively, sales grew by 45% in Ireland and 20.3% in New Zealand during FY26. Overall, international revenue increased 33% to $421.4 million.

The business is entering the UK market in FY27, which could be another exciting growth market for one of Australia’s top shares. The success in nearby Ireland – which is now profitable – is a good sign for the UK, in my view.

I think the company could expand to other markets in the longer term.

Operating leverage

Not only is the business growing its top line rapidly, but I think profit can increase even faster thanks to its rising profit margins. Remember, it’s normally profit growth rather than revenue growth that can send a share price higher.

The FY26 financials were a great demonstration of its ability to deliver stronger profits.

While overall revenue rose 15.5%, normalised operating profit (EBIT) climbed 20.6% to $1.09 billion, and normalised net profit grew 22.3% to $732.3 million. It also reduced net debt to $663 million.

Australian segment normalised EBIT grew 18.3% and international segment EBIT soared 91.3% to $55.8 million.

I think the strengthening profit margins are a great sign for one of Australia’s top shares to continue becoming more valuable.

After falling 15% since February 2026, the Sigma Healthcare share price is now valued at 35 times FY27’s estimated earnings. I think Sigma Healthcare, one of Australia’s top shares, could be undervalued at this level.

But, it’s not the only stock I’ve got my eyes on.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

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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.

A $550,000 superannuation balance sits well above the typical Australian average for retirees, but it falls short of what you need for a comfortable retirement lifestyle. 

It’s the middle ground which can act as a solid base, but it’s not quite enough to live off.

But what if you didn’t need to live off your superannuation balance alone? What if your superannuation generated enough passive income to partially, or even fully, support you when you quit work?

So, how much passive income could a $550,000 super balance realistically generate each month?

Let’s take a look.

What passive income can I earn off a $550,000 superannuation balance?

To calculate your passive income, you need to multiply your total superannuation balance by the overall dividend yield of your portfolio.

The tricky part is that the answer varies widely depending on what dividend yield you pick.

So, as your dividend yield increases, the passive income you can earn off your $550,000 superannuation balance also goes up.  

Also note, the figures are based on cash dividends before any tax or franking credit benefits.

What can I earn off a 2% to 3% yielding portfolio?

If your portfolio yields 2% or 3%, you’ll earn around $11,000 or $16,500, respectively.

That’s because $550,000 x 2% = $11,000 per year in dividend payments, and $550,000 x 3% = $16,500 in dividends.

Around this level, you could invest in major long-standing ASX blue-chip companies like Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), CSL Ltd (ASX: CSL), or Macquarie Group Ltd (ASX: MQG). These all yield around the 2% to 3% level at the time of writing.

What can I earn if my portfolio yields around 4% or 5%?

If your portfolio has a slightly higher dividend yield, closer to 4% or 5%, you could earn a much higher dividend income of around $22,000 or $27,500, respectively.

There are still plenty of good-quality stocks yielding around this level. For example, mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO). Major banks National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) also yield around the 4% to 5% range. As do energy majors Woodside Energy Group Ltd (ASX: WDS) and APA Group (ASX: APA). 

What if I want to invest my superannuation in high-yielding shares around 10% or even higher?

If you have the stomach to withstand the volatility and elevated risk, you could earn a much higher passive income from high-yielding stocks.

At a 10% yield, a $550,000 balance could earn about $55,000.

And there are still several options paying around this level too. If you’re after a single stock, then GQG Partners Inc (ASX: GQG) and IPH Ltd (ASX: IPH) both yield above 11% at the time of writing.

Another option is to invest your super into an ETF like the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX), the BetaShares Global Cybersecurity ETF (ASX: HACK), or the iShares S&P 500 ETF (ASX: IVV). These all yield 10% or higher at the time of writing.

The post How much passive income can I earn off a $550,000 superannuation balance? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF, CSL, Macquarie Group, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool Australia has recommended BHP Group, CSL, Gqg Partners, IPH Ltd , Macquarie Group, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.