Tag: Stock pick

April was one of the worst months in the history of Cochlear Ltd (ASX: COH).

Cochlear shares crashed 41% in a single session on 22 April after the company delivered one of the most severe earnings downgrades in its listed history.

In May however, Cochlear shares were able to stage a modest comeback.

Here’s what happened.

Cochlear shares recovered approximately 7% in May

From that decade low of $90, Cochlear shares bounced to $100.50 by the end of May.

That represents a recovery of approximately 12% from the April lows.

However, Cochlear shares remain down 61.50% year to date and down approximately 63% in the last twelve months.  

The May recovery reflects a combination of bargain hunting from long-term investors and growing broker interest at the lower price level.

Indeed, Cochlear shares were starting to look more interesting after the market had already punished the stock heavily for the downgrade.

What drove the recovery in Cochlear shares

Three factors supported the partial recovery during May.

First, the broader healthcare sector stabilised somewhat after the brutal April rotation out of defensive stocks.

Second, broker commentary grew more constructive.

Jarden and Wilsons Advisory both see upside of more than 100% in COH shares over the next twelve months.

Third, CEO Dig Howitt continued to make the case that the volume weakness is temporary rather than permanent.

He said:

The clinical need for cochlear implants continues to grow, particularly for the adult and seniors segment. 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.

The risks that remain

Nevertheless, Cochlear shares shares face near-term challenges.

Hospital capacity constraints and reduced referral activity from the hearing aid channel in the US and Europe have not yet resolved.

The $25 million after-tax foreign exchange headwind remains in place.

Middle East receivables continue to create uncertainty.

Moreover, the FY2026 earnings downgrade has shaken investor confidence in a way that typically takes several consecutive quarters of stable results to rebuild.

Morgans retained a hold rating but cut its price target in half to $107.17 from $214.93, stating:

COH has delivered a material downgrade to FY26 earnings, cutting guidance by c30% at the midpoint. This demonstrates that cochlear implant demand is more cyclical and macro-sensitive than previously assumed.

Meanwhile, Macquarie slashed its price target from $239 to $115, reflecting its view that the near-term earnings recovery will take longer than the market had anticipated.

Foolish takeaway

Cochlear shares bounced approximately 7% in May after touching decade lows.

That recovery is encouraging but tentative.

The fundamental demand picture for cochlear implants has not changed.

Cochlear still holds approximately 50% global market share in a market with just 3% penetration of an addressable patient population exceeding six million people in developed markets alone.

For patient investors with a multi-year time horizon, May may prove to have been an interesting entry point for Cochlear shares.

The post What happened to Cochlear shares in May? appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares that brokers tipped to soar in the next 12 months
• Down 60%: 3 oversold ASX 200 shares to buy in June
• These 3 ASX healthcare stocks have been crushed in 2026. They could be set for a comeback
• At under $100 each, Cochlear shares look like a bargain: Here’s why
• 3 ASX 200 shares I’d buy for the future of healthcare

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 PLS Group Ltd (ASX: PLS) share price has been one of the best performers in the S&P/ASX 200 Index (ASX: XJO) over the past year.

The ASX lithium share has risen close to 400% in the past year, as the below chart shows.

The ASX 200 has only gone up by 4% in the last 12 months, so PLS Group shares have delivered extraordinary returns compared to the ASX share market.

It has benefited enormously from the rise in the lithium price. In the company’s FY26 third quarter, it reported that its realised price for its commodity was US$1,867 per tonne – that was a rise of 61% compared to the three months to 31 December 2025.

It’ll be interesting to see what happens next with the lithium price, as it could be influential on the PLS Group share price in the coming 12 months.

Let’s see what experts think could happen with the ASX lithium share in the year ahead.

Price target for the PLS Group share price

A price target is where a broker thinks the share price could be in a year from now, based on how the business is growing (or not) and also assessing the current conditions.

According to CMC Invest, there have been 12 analyst ratings on the business in the last three months, with the average price target of those being $5.55. That suggests a possible decline of 14% within the next year.

The most optimistic price target is $6.70, suggesting a possible rise of just 4%.

The most pessimistic price target is $2.60. That implies a possible decline of 60%! A drop of that size would probably require a significant drop of the lithium price.

What else?

It’s important to remember that commodity prices can shift significantly in a relatively short space of time. There are arguments for the lithium price both going up and down.

Lithium demand is growing over the long-term with more electric vehicles and other types of batteries being built around the world. But, there could be a decline if an agreement is signed between the US and Iran (which hasn’t been signed at the time of writing).

PLS Group said that lithium market tightness is expected to persist, with constrained supply, strong demand and energy security support the long-term outlook.

The company has multiple project optionality that can help it expand its production in future years, such as P2000 which could double its production capacity.

According to the forecast on CMC Invest, the business is projected to generate 28.6 cents of earnings per share (EPS). It’s valued at more than 22x FY27’s estimated earnings, which I’d say is a high multiple for a miner. So, I’d rather look at other opportunities than PLS Group at this stage.

The post How much could the PLS Group share price rise in the next year? appeared first on The Motley Fool Australia.

More reading

• If I’d invested $5,000 in this ASX mining stock 12 months ago I’d have over $23k today!
• The top 3 Betashares ASX ETFs over the past year
• Here are the top 10 ASX 200 shares today
• Why DroneShield, Lynas, PLS, and TechnologyOne shares are falling today
• Why Alkane Resources, Bapcor, PLS, and Resolute Mining shares are sinking today

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.

DroneShield Ltd (ASX: DRO) shares had a volatile month in May.

The counter-drone technology company’s shares ended April at $3.54, then climbed as high as $3.82 on 6 May.

However, the rally did not last. By 20 May, DroneShield shares had fallen to a monthly low of $2.83, before recovering to end the month at $3.39.

This means the popular stock finished May down approximately 4% from where it started.

So, what happened?

ASIC investigation weighs on DroneShield shares

One reason DroneShield shares came under pressure was an announcement released on 12 May.

The company advised that it had received a notice from ASIC requiring it to provide reasonable assistance in connection with an investigation under the Corporations Act.

DroneShield said the investigation relates to announcements and information provided to the ASX between 1 and 20 November 2025, as well as trading in DroneShield shares between 6 and 12 November 2025.

Management stated that it would cooperate fully with the investigation but that it was not clear what action, if any, may result.

Even without any finding of wrongdoing, announcements of this nature can weigh heavily on investor confidence. DroneShield has been one of the ASX’s most closely watched defence technology shares, so any uncertainty around disclosure, trading, or regulatory scrutiny was always likely to attract attention.

This helps explain why the share price lost momentum during the middle of the month.

AGM update helps spark a recovery

The final trading day of May brought a more positive update for investors.

At its annual general meeting, DroneShield highlighted the scale of the opportunity it is targeting and the momentum in its business.

The company highlighted its leadership position in counter-drone technology, with representation in more than 70 countries and deployments across conflict zones, airports, prisons, utilities, public safety operations, and major events.

It also pointed to strong committed revenue in FY 2026. As of 26 May, DroneShield had committed revenue of $161 million. This is up 61% on the prior corresponding period and equivalent to 74% of its total FY 2025 revenue.

Management also highlighted that recurring revenue represented 13% of FY 2026 committed revenue and that the company had a cash balance of $223 million with no debt.

Longer term, DroneShield continues to target revenue of $1 billion by 2030, with more than 30% coming from recurring revenue.

That update appears to have helped restore some confidence after the earlier selloff.

Middle East conflict

All this was happening with the ongoing Middle East conflict taking place in the background.

For companies like DroneShield, geopolitical uncertainty can cut both ways. Heightened conflict can increase interest in defence technology, particularly counter-drone systems. But any sign of easing tensions can also cool enthusiasm for defence-themed trades. This backdrop likely contributed to the volatility in May.

Overall, it was a choppy month for DroneShield shares. The ASIC investigation created uncertainty, while the AGM update reminded investors why the company remains one of the ASX’s most watched defence technology names.

The post What happened to DroneShield shares in May? appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares that brokers tipped to soar in the next 12 months
• Why I think DroneShield could be an ASX growth share to buy and hold
• Is this why DroneShield shares are rocketing another 11% today?
• Forget DroneShield and EOS, could this ASX 200 defence stock be one of the best to buy?
• DroneShield shares in focus amid FIFA World Cup update

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 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.

Brokers are being kept on their toes by today’s highly volatile market.

Fast-changing macroeconomic factors are causing sharp and frequent swings in the S&P/ASX 200 Index (ASX: XJO).

Many companies are issuing updates on how the global oil shock is impacting them ahead of their FY26 reports in August.

As things change with the companies they cover, brokers revise their ratings and 12-month share price targets.

Let’s take a look at three fresh buy, hold, and sell calls from the experts.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price has ripped 33% in the calendar year to date (YTD).

Bell Potter renewed its buy rating on Mineral Resources shares last week.

The broker raised its 12-month share price target from $75 to $80.50.

This implies potential capital growth of almost 10% over the next year.

Bell Potter’s note followed the miner’s Final Investment Decision (FID) for a flotation plant and underground development at Mt Marion.

This will extend Mt Marion’s life by six years and increase production capacity from 500ktpa to 600ktpa of lithium spodumene.

Bell Potter said:

Completion of the US$765m MIN-POSCO lithium transaction will accelerate balance sheet deleveraging paired with cash flows from persistent iron ore and lithium market prices.

MIN’s mining services platform delivers a stable earnings stream that is expected to expand with internal and third-party volume growth.

The company is well positioned to execute its next phase of growth with potential to reinstate fully franked dividends.

Mineral Resources shares are outperforming their peers in the ASX 200 materials sector this year.

The S&P/ASX 200 Materials Index (ASX: XMJ) has lifted 18% in 2026 as the new Australian mining boom continues.

IAG Australia Group Ltd (ASX: IAG)

The IAG share price has fallen 4% YTD.

Citi reiterated its hold rating on IAG shares on Friday.

The broker has a $8.50 price target, suggesting a potential 11% upside ahead.

IAG shares are outperforming their peers in the ASX 200 financial sector this year.

The S&P/ASX 200 Financials Index (ASX: XFJ) has fallen 2% in 2026.

Origin Energy Ltd (ASX: ORG)

The Origin Energy share price has weakened 4% YTD.

Ord Minnett downgraded Origin Energy shares from hold to lighten last week.

The broker shaved down its 12-month price target from $11 to $10.40.

This implies a small potential downside of 4% over the next 12 months.

In a new note, Ord Minnett explained its sell rating:

Ord Minnett sees increasing downside risk to AGL Energy and Origin Energy as electricity market transition dynamics evolve less favourably than had been anticipated.

Our central thesis is that battery capacity in the National Electricity Market (NEM) is being deployed materially faster than required in the absence of corresponding coal-fired generation retirements.

This excess flexibility is suppressing price volatility, reducing the earnings potential for batteries and other flexible generation assets such as gas peakers and hydro.

Origin Energy shares are underperforming their peers in the ASX 200 utilities sector this year.

The S&P/ASX 200 Utilities Index (ASX: XUJ) has increased 0.26% in 2026.

The post Buy, hold, sell: Mineral Resources, IAG, Origin Energy shares appeared first on The Motley Fool Australia.

More reading

• 10 ASX shares given buy ratings this week
• 9 ASX 200 shares with renewed buy ratings this week
• 5 ASX 200 shares downgraded by brokers this week
• Brokers name 3 ASX shares to buy right now
• Up 200%! Can the Mineral Resources share price bull run continue?

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen 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.

It has been a brutal year for WiseTech Global Ltd (ASX: WTC).

WiseTech shares are down approximately 47% year to date and have crashed 66% over the past twelve months.

At $36 today, the stock trades near levels last seen in early 2022.

May was another poor month for WiseTech shares, with the stock down approximately 16%.

So what happened?

What drove the May selling in WiseTech shares

The selling in WiseTech shares in May reflected a toxic combination of two forces.

First, the most dramatic company-specific event was WiseTech’s announcement that it would cut approximately 2,000 jobs, as part of a two-year AI-linked restructuring program.

This is nearly a third of its total workforce.

The cuts triggered an urgent request for a meeting from an Australian trade union.

Furthermore, the company simultaneously faces a Fair Work Commission claim from an executive over her dismissal.

The handling of the layoffs attracted significant negative media coverage and raised questions about WiseTech’s workplace culture.

Second, WiseTech’s Q3 FY2026 quarterly update, published on 4 May 2026, added to investor unease rather than providing reassurance.

While the company reaffirmed its full-year FY2026 revenue guidance of US$1.39 billion to US$1.44 billion, it also confirmed that one-off integration costs related to the E2open acquisition would reach US$45 million to US$50 million in FY2026, materially compressing profit margins.

Furthermore, analysts have cut the consensus full-year FY2026 EPS forecast to approximately A$0.72 per share.

This is down from higher estimates earlier in the year, as the E2open integration costs and restructuring charges weigh on the bottom line.

With full-year results not due until August 2026, investors have had no earnings catalyst to offset the negative newsflow from the restructuring and integration cost overruns.

But the business keeps delivering

Look past the sentiment and WiseTech’s operational performance remains solid.

CargoWise is used by all of the world’s top 25 global freight forwarders.

And switching costs for WiseTech’s customers are enormous.

That gives WiseTech a revenue base that is considerably more resilient than the share price performance implies.

Moreover, the company has accelerated its AI integration roadmap.

The company is embedding AI tools directly into CargoWise to automate workflows, improve compliance, and reduce costs for customers.

What does the broker community think?

The broker picture on WiseTech shares is divided but broadly constructive.

UBS maintains a buy rating on WiseTech shares, stating the medium-term growth outlook remains intact and seeing the stock as attractively valued on a forward sales multiple basis.

The broker forecasts a compound annual growth rate of 27% in sales and 33% in EBITDA through FY2028.

Meanwhile, Bell Potter recently named WiseTech shares as a stock that could rise 150% from current levels.

The broker cited the deep competitive moat and the platform’s irreplaceable role in global freight forwarding.

Foolish takeaway

WiseTech shares have been through the wringer in May.

The near-term volatility is unlikely to disappear while governance uncertainty and sector rotation pressures persist.

However, the underlying business continues to grow at impressive rates, the CargoWise moat is intact, and at least two major brokers see substantial upside from current WiseTech shares levels.

For patient investors who can tolerate volatility, May may prove to be an interesting month to have paid attention.

The post What happened to WiseTech shares in May? appeared first on The Motley Fool Australia.

More reading

• ASX shares to buy now: How I’d invest a $1,000 lump sum
• I’d aim for $1 million in retirement buying just 10 ASX 200 shares
• WiseTech shares crash 66% in 12 months. What’s next?
• 2 of the best ASX 200 shares to buy with $10,000
• Xero shares vs WiseTech shares: Which ASX tech share would I buy today?

Motley Fool contributor Mark Verhoeven has a position in the stock 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.

The ASX dividend stock Centuria Industrial REIT (ASX: CIP) has fallen 16% since November 2025 and it’s down 28% from December 2021, as the chart below shows.

The business describes itself as Australia’s largest domestic pure play industrial real estate investment trust (REIT).

It says it has a portfolio of high-quality industrial assets which are located in key metropolitan locations throughout Australia. It aims to offer investors a mixture of passive income and capital growth.

Higher interest rates are certainly a headwind for the business, but I think rates will only be this high for a certain period of time, so it looks like the right time to scan for opportunities in the REIT space. Centuria Industrial REIT looks like one of the best options to me.

Solid dividend yield

The business expects to pay a pleasing distribution for FY26 and I expect the FY27 payout will be a similar amount.

It expects to pay an annual distribution of 16.8 cents per unit in FY26, which would mean a 3% rise year-over-year. This guided payout translates into a distribution yield of 5.6%.

But, the current distribution yield is not the key reason why I think it’s a wonderful time to invest right now.

Cheap valuation

I love buying assets for less than they’re worth. Every six months, this ASX dividend stock tells investors about the underlying value of its business with the net tangible assets (NTA) – that takes into account the property values, the loans and other assets and liabilities.

At 31 December 2025, the business reported a NTA of $3.95. It’s trading at a 24% discount to that latest NTA update, so it looks very cheap.

It also noted in its FY26 third-quarter update, it enacted $188 million of divestments, achieving an average premium to book value of 18%. Since FY23, it has sold close to $460 million of assets at an average premium to book value of 12%.

So, not only is it trading at a large discount to the NTA, but that NTA may be understated as well.

Excellent rental tailwinds

I think the business has a very promising earnings growth future, which is absolutely key in my opinion.

Industrial properties are in high demand and there’s limited space to put more in across key metropolitan locations. This is helping drive the rental value of the existing real estate significantly.

Centuria Industrial REIT benefits from significant demand from areas like e-commerce and data centres. Plus, it’s seeing a big jump in rental income as contracts come up for renewal.

The fund manager of the REIT, Grant Nichols, explains the positive dynamic for the business:

Looking ahead, we foresee the domestic infill industrial market’s supply-demand imbalance to persist with limited construction of new warehouses coupled with consistently high occupier demand as tenants look to strengthen their delivery times and reduce transport costs. Current macroeconomic uncertainty, resultant of the Middle East conflicts and global oil constraints, is impacting inflation and construction price pressures. These factors are expected to curtail future industrial market supply. The value of high-quality, existing infill industrial assets is expected to increase as the disconnect to replacement cost continues to escalate.

Overall, the ASX dividend stock looks undervalued with an appealing future of earnings growth, which should help drive the rental income higher.

The post 1 ASX dividend stock down 28% I’d buy right now appeared first on The Motley Fool Australia.

More reading

• How to invest in ASX shares during such an uncertain period
• 2 excellent high-yield ASX dividend stocks I’d buy today
• How much is needed in superannuation to target a $3,000 monthly passive income?
• How much is needed in superannuation to target a $7,500 monthly passive income?
• I’d buy 17,858 shares of this ASX stock to aim for $250 a month of passive income

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.

On Friday, the S&P/ASX 200 Index (ASX: XJO) was on form and raced higher. The benchmark index jumped 1.6% to 8,731.7 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to edge lower

The Australian share market looks set for a subdued start to the week despite a decent finish to the last one on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 13 points or 0.15% lower. In the United States, the Dow Jones was up 0.7%, the S&P 500 rose 0.2%, and the Nasdaq climbed 0.2%.

Oil prices fall

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could start the week in the red after oil prices fell on Friday night. According to Bloomberg, the WTI crude oil price was down 1.75% to US$87.36 a barrel and the Brent crude oil price was down 1.7% to US$91.12 a barrel. This led to Brent crude oil posting its largest monthly loss in six years.

Buy Goodman shares

Bell Potter has named Goodman Group (ASX: GMG) shares as a buy this week. In its latest weekly REIT review, the broker has named the industrial property giant as a buy with a $36.45 price target. Based on its last close price of $31.67, this implies potential upside of 15% for investors over the next 12 months.

Gold price charges higher

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price charged higher on Friday night. According to CNBC, the gold futures price was up 1.35% to US$4,593 an ounce. Traders were buying gold after oil prices pulled back on US-Iran ceasefire optimism.

Sell CBA shares

The team at Medallion Financial Group thinks Commonwealth Bank of Australia (ASX: CBA) shares are a sell. According to The Bull, it thinks CBA’s premium valuation is unjustified given tough trading conditions and fading earnings momentum. It said: “Australia’s largest bank carries a premium valuation. Slowing credit growth, sticky inflation and proposed property tax changes are headwinds for this mortgage heavy business. Sentiment took a material hit recently when the stock posted its largest single-day decline of about 10 per cent since listing in 1991 following a disappointing trading update. Earnings momentum is fading and the valuation is still trading at a significant premium to peers.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

• Why the negative gearing changes could impact CBA shares more than anyone realises
• Why did ASX 200 retail shares lead the market last week?
• Why ASX mid-cap shares are finally about to have their moment: Expert
• CBA shares vs Macquarie shares: Which ASX financial stock would I buy?
• 10 ASX shares given buy ratings this week

Motley Fool contributor James Mickleboro has positions in Goodman Group and Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman 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.

ASX shares were relatively volatile throughout May, but a last minute uptick means the All Ordinaries Index (ASX: XAO) managed to close the month marginally higher. 

Unfortunately not all stocks ended the month on a high, some oversold shares are now trading for rock-bottom prices, and they’re too cheap to ignore this month.

Life360 Inc (ASX: 360)

Life360 shares tumbled just over 4% in May, closing the month at $19.33 a piece. 

At the time of writing, the US-based software development company’s shares are now around 65% below an all-time high recorded in October last year, and 40% lower for the year-to-date.

The tech stock has been caught up amid an ongoing tech-sector-wide sell-off.

Investors sold up their tech shares amid a growing fear that companies’ core services could be replaced by AI. At the same time, there has been some concern that tech sector share prices, including Life360, had become overpriced.

The tech sector suffered its latest sector-wide selloff in mid-May, with tech shares down across the board.

But I think the oversold ASX shares show great potential for growth.

The company reported a 38% increase in its total revenue in its latest quarterly results in mid-May. This was primarily driven by a 32% increase in subscription revenue and 36% increase in core subscription revenue.

Life360 upgraded its FY26 revenue guidance to US$650 million to US$685 million, up from previous guidance of US$640 million to US$680 million. This implies year-on-year growth of 33% to 40%.

Life360 also raised its adjusted EBITDA guidance to a range of US$130 million to US$140 million, up from US$128 million to US$138 million previously. This implies an expected margin of around 20%.

It’s clear the business is performing well and is profitable. I think that once sentiment catches up its share price could climb higher quickly. 

At the time of writing, brokers rate the ASX shares as a strong buy. The also tip a potential upside of 75% to $33.73.

Xero Ltd (ASX: XRO)

Xero shares fell just over 6% throughout May. The oversold ASX shares are now down 33% for the year-to-date and 61% lower than an all-time high recorded in June last year.

The tech stock was also smashed by the latest tech-sector wide sell-off.

But I think the shares are now way oversold and trading well below fair value.

Xero shares are a great option for investors looking for an attractive long-term investment. 

The company has a sticky subscription revenue, which means its customers are likely to keep paying for its services and products over a long time. This makes Xero’s revenue predictable. 

At the same time, the ASX tech stock still has a relatively small position in the market, which means there is potential to unlock a large amount of growth. 

Global growth opportunities include expansion in the UK and US, as well as payroll and workflow automation offerings. Xero is also actively expanding its presence and its product suite. 

The company’s latest FY26 result was impressive too. In mid-May, Xero reported a 31% hike in operating revenue in mid-May, and its adjusted EBITDA is up 18%.

At the time of writing, brokers rate the ASX shares as a strong buy. They tip a potential 88% upside to $141.56 a piece.

The post Are these 2 oversold ASX shares too cheap to ignore in June? appeared first on The Motley Fool Australia.

More reading

• 2 rapidly growing ASX shares down over 50% to buy now
• Top brokers name 3 ASX shares to buy next week
• Is it time to get greedy with Xero shares?
• 10 ASX shares given buy ratings this week
• Down 60%: 3 oversold ASX 200 shares to buy in June

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 positions in and has recommended Life360 and Xero. The Motley Fool Australia has positions in and has recommended Life360 and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Sometimes the best opportunities on the ASX are found not in the stocks everyone is talking about but in the ones everyone has given up on.

Three ASX shares in particular have been punished heavily in 2026.

Each carries near-term risk.

But each also has a broker prepared to make the case for meaningful upside over the next twelve months.

Here is what they are saying.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre Travel Group has fallen significantly year to date and trades near six-year lows.

The market has been pricing in the worst: Middle East conflict disrupting leisure travel, a $10 million profit hit in April from cancellations, and elevated fuel costs weighing on corporate travel margins.

Yet beneath the noise, the underlying business keeps delivering.

Total transaction value for the nine months to March 2026 rose 7.6% to $19.5 billion.

Corporate travel continues to grow at record pace.

Management reaffirmed full-year FY2026 underlying profit guidance of $315 million to $350 million at the Macquarie Conference in early May.

Macquarie retains an outperform rating on Flight Centre shares with a price target of $17.95, implying significant upside from today’s price.

The broker also notes that 13 of 13 analysts covering Flight Centre carry buy ratings, with an average 12-month target of $15.89.

Cochlear Ltd (ASX: COH)

Cochlear has had one of the most devastating years of any large-cap ASX stock in living memory.

Cochlear shares are down approximately 63% over the last twelve months after the company delivered a 30% earnings downgrade on 22 April.

The company cited hospital capacity constraints, reduced referral activity, and foreign exchange headwinds.

However, the fundamental demand picture has not changed.

Cochlear holds approximately 50% global market share in cochlear implants in a market with just 3% penetration of an addressable patient population exceeding six million people in developed markets alone.

Investors should note that surgeries are being delayed, not cancelled.

Jarden carries a price target of $169 on COH shares, implying upside of approximately 68% from today’s price of approximately $100.50.

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

The consensus analyst price target sits at approximately $232, implying significant upside for investors with the patience to wait for the recovery.

DroneShield Ltd (ASX: DRO)

DroneShield is a very different kind of opportunity from the other two.

Rather than a beaten-down blue chip, Droneshield is a high-growth defence technology company that has simply pulled back sharply from extraordinary highs.

The stock hit an all-time high of $6.71 in October 2025 and today trades much lower than that, having shed approximately half its peak value.

Yet the operational performance remains impressive.

In Q1 2026, DroneShield delivered record customer cash receipts of $77.4 million, up 360% on the same period a year earlier.

The company holds $222.8 million in cash, zero debt, and a sales pipeline of $2.2 billion spanning 312 projects across more than 60 countries.

Bell Potter retains a buy rating on DRO shares with a price target of $4.80, stating:

We believe DRO has a market leading RF detect/defeat C-UAS offering and a strengthening competitive advantage owing to its years of battlefield experience and large and focused R&D team. We expect 2026 will be an inflection point for the global C-UAS industry with countries poised to unleash a wave of spending on RF detect and defeat solutions.

Foolish takeaway

Flight Centre, Cochlear, and DroneShield have each been sold down for reasons that are partly legitimate and partly an overreaction.

None of them is a certainty.

And all three carry meaningful near-term risk.

However, the broker community is clearly more optimistic about all three ASX shares than the market currently is.

For long-term investors, that divergence is worth paying close attention to.

The post 3 ASX shares that brokers tipped to soar in the next 12 months appeared first on The Motley Fool Australia.

More reading

• Why did ASX 200 retail shares lead the market last week?
• Why I think DroneShield could be an ASX growth share to buy and hold
• Down 60%: 3 oversold ASX 200 shares to buy in June
• Here are the top 10 ASX 200 shares today
• 9 ASX 200 shares with renewed buy ratings this week

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 and DroneShield. The Motley Fool Australia has recommended Cochlear and Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Australia has no shortage of ASX dividend stocks.

The problem is that most investors stop looking after the big four banks and Wesfarmers Ltd (ASX: WES).

They miss a layer of income opportunities that offer comparable or higher yields, from businesses most retail investors have never considered.

Here are three worth putting on the radar.

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

If you have never heard of Dalrymple Bay Infrastructure, you are not alone.

But for income investors, it is one of the most reliable quarterly dividend payers on the entire ASX.

Dalrymple Bay Infrastructure owns and operates the Dalrymple Bay Terminal, the world’s largest export metallurgical coal facility, located near Mackay in Queensland.

Critically, Dalrymple Bay Infrastructure is not really a coal company in the traditional sense.

It operates under a regulated access regime, meaning its revenues are set by the Queensland Competition Authority through a pricing framework, not the coal price.

Think of it as a toll road operator that collects fees regardless of what commodity prices do.

The results speak for themselves.

In TY-26/27, Dalrymple Bay Infrastructure raised its distribution guidance by 8.5% to 28.62 cents per security, underpinned by a forecast Terminal Infrastructure Charge of $4.02 per tonne.

At the current share price of approximately $5.54, that implies a forward distribution yield of approximately 5.2%, rising to around 5.7% at the upper end of management’s 3% to 7% long-term distribution growth target.

The terminal is fully contracted at 84.2 million tonnes per annum until 30 June 2028, with evergreen renewal options beyond that date.

Distributions are paid quarterly in March, June, September, and December, giving investors four income payments per year.

Amcor Plc (ASX: AMC)

Amcor is not entirely unknown, but it is overlooked far more often than its dividend deserves.

The global packaging giant makes flexible and rigid packaging for food, beverages, healthcare, and consumer goods across more than 200 countries.

People still buy groceries and medicine in a downturn.

That gives Amcor a revenue base that holds up regardless of the economic cycle.

Following the completion of its Berry Global acquisition in 2025, Amcor is now one of the largest packaging companies on the planet, with combined annual sales approaching US$24 billion.

The company pays dividends quarterly in March, June, September, and December, and at the current share price of approximately $55, trades on a trailing yield of approximately 6.8%, unfranked.

Amcor’s dividends do not carry franking credits, as the company is domiciled in the United Kingdom.

This reduces the after-tax return for investors in higher Australian tax brackets.

However, for investors holding shares inside superannuation at the 15% tax rate, or those in lower tax brackets, the yield remains very attractive.

In Q3 FY2026, Amcor delivered net sales of US$5.91 billion, up 77% year-on-year, with adjusted EBITDA surging 87% to US$892 million, as Berry Global synergies tracked ahead of schedule.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT owns more than 50 convenience-based shopping centres across Australia.

Tenants across its portfolio include Woolworths Ltd (ASX: WOW), Wesfarmers, and Coles Ltd (ASX: COL).

These defensive assets generate foot traffic regardless of consumer confidence.

People will still buy groceries, visit the pharmacy, and drop the kids at childcare even in a downturn.

In its first-half FY2026 results, HDN maintained occupancy and cash rent collections above 99%, delivered property NOI growth of 4.6%, and reaffirmed its full-year FY2026 distribution guidance of 8.6 cents per unit.

Most recently, HDN declared a Q3 FY2026 quarterly distribution of 2.15 cents per unit, paid on 22 May 2026, keeping it on track to meet full-year guidance.

At the current share price of approximately $1.24, that annualised distribution implies a forward yield of approximately 6.9%.

Distributions are paid quarterly in February, May, August, and November.

With gearing of 34.6% sitting comfortably within management’s 30% to 40% target, HDN has the financial capacity to keep growing its $650 million development pipeline without stretching its balance sheet.

Foolish takeaway

Dalrymple Bay Infrastructure, Amcor, and HomeCo Daily Needs REIT are three very different businesses, but they share a common characteristic.

Each generates predictable, recurring cash flows from assets or contracts that do not depend on economic optimism to keep performing.

For income investors who are tired of fighting over the same bank shares everyone else owns, all three deserve a place on the watchlist.

The post 3 ASX dividend shares offering yields above 5% that most investors have never heard of appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares yielding 5.5% or more
• Should I buy Amcor shares for their ‘attractive’ dividend yield?
• Buy, hold, sell: Argo Investments, Amcor, Bapcor shares
• Why Arafura Rare Earths, Dalrymple Bay, Tuas, and Woodside shares are falling today
• Why this ASX infrastructure stock could be a great passive income choice

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 Wesfarmers. The Motley Fool Australia has positions in and has recommended Amcor Plc and Woolworths Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.