Tag: Stock pick

ASX shares have slumped this week as investors digest renewed conflict in the Middle East, oil prices and supply concerns, climbing inflation, and the potential for further interest rate hikes.

But here are five S&P/ASX 200 Index (ASX: XJO) shares that could turn the index around over the next 12 months. And they’re all rated a strong buy by brokers, with upsides of up to 62%.

Let’s take a look.

Life360 Inc (ASX: 360)

Life360 posted a strong second-quarter FY26 update in mid-August, including a 38% increase in revenue, and a 53% increase in adjusted EBITDA. And the company expects FY26 revenue growth to accelerate 33% to 40% year on year. But investors weren’t impressed, likely because they were expecting another upward revision to FY26 revenue guidance. But it looks like brokers now view the shares as below fair value. Market Index shows all brokers have a strong buy rating on the ASX shares and the $31.72 target price implies a potential 60% upside, at the time of writing.

Mesoblast Ltd (ASX: MSB)

The clinical-stage ASX biotech company has gained some attention since it posted its FY26 results last month. The company, which develops and commercialises allogeneic cellular medicines to treat complex diseases, posted a sharp increase in revenue to US$120.3 million for FY26, and a 44% reduction in net loss. And there’s plenty of potential for more growth ahead. Its products, particularly Ryoncil, are gaining traction and the business is well-funded. Brokers are also bullish that sales can continue growing strongly in FY27. Market Index data shows all brokers have a strong buy rating for the ASX shares. The $3.60 target price implies a potential 62% upside, at the time of writing. 

Megaport Ltd (ASX: MP1)

The ASX tech shares flew higher in late-May but slumped around 20% in August after the company posted its FY26 results. Megaport reported a 37% increase in full-year revenue, and EBITDA was up 24%. But, on the bottom line, its statutory net loss climbed to $39 million, up from $300,000 in FY25. Investors weren’t impressed and many quickly sold up their shares, sending the share price tumbling. But the company is continuing to grow and it has confirmed several new contracts since late-April. Brokers are bullish that we’ll see a share price correction ahead. Market Index data show that all brokers have a strong buy rating for Megaport shares. The $24.80 average target price implies a potential 39% upside, at the time of writing.

Nick Scali Ltd (ASX: NCK)

Shares of household furniture importer and retailer Nick Scali have plunged in 2026 as high interest rates and cost-of-living pressures continue to delay shoppers from buying big-ticket discretionary items like furniture. But the company’s latest FY26 results announcement shows the business is still operating well with a strong gross margin improvement. Last month, Nick Scali announced a 4% increase in revenue and a 22% increase in NPAT. Many experts still view Nick Scali as a high quality retailer with growth potential ahead. Market Index data shows the majority have a strong buy rating on the ASX shares. The $18.50 average target price implies around a 28% upside ahead, at the time of writing.

Judo Capital Holdings Ltd (ASX: JDO)

Judo was one of the strongest-performing bank shares on the ASX earlier this year. But the stock crashed 43% in late-June after it downgraded its profit guidance for FY26, and it has struggled to recover. Even a stronger-than-expected FY26 result wasn’t enough to reignite investor confidence. Judo’s NPAT increased 29% and profit before tax increased 34%, the top end of Judo’s revised guidance range. It’s clear that the sell-off was way overdone and that the bank’s latest results show it is growing stronger than many anticipated. Market Index data shows the majority of brokers have a strong buy rating on the shares. The $1.51 average target price implies a potential upside of around 50%, at the time of writing.

The post Brokers rate these 5 ASX shares as a strong buy, and tip upsides of 28% to 62% appeared first on The Motley Fool Australia.

More reading

• 7 ASX healthcare stock picks from Bell Potter
• 2 top ASX 200 shares tipped to return 23% to 45%
• Here are the top 10 ASX 200 shares today
• Xero and Megaport: 2 ASX tech shares the market can’t agree on
• 3 ASX healthcare shares to buy with 25% to 100% upside as sector rebound races higher

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

Corporate Travel Management Ltd (ASX: CTD) shares have delivered one of the ASX’s most eye-catching returns — for all the wrong reasons.

The stock only returned to the ASX last Thursday after more than a year suspended from trading. Investors wasted little time selling, sending Corporate Travel shares crashing 86% on their first day back to close at $2.32.

After briefly stabilising, the selling resumed on Wednesday. The shares fell another 9% to $2.03 during afternoon trading.

And shareholders have another headache to contend with.

Potential class action adds to investor concerns

Law firm Phi Finney McDonald is investigating a potential class action against Corporate Travel Management and its former auditor, PwC Australia.

According to the law firm’s website, the investigation concerns alleged financial misreporting over several years. The potential class action would allege Corporate Travel misled investors in its annual financial reports between 2020 and 2024, potentially contravening its continuous disclosure obligations under the Corporations Act.

PwC Australia is also alleged to have engaged in misleading or deceptive conduct and made false statements regarding its auditing of Corporate Travel’s financial reports in accordance with applicable standards.

The proposed action would allege that this conduct caused Corporate Travel shares to trade at an inflated price, resulting in losses for investors who bought shares during the relevant period.

Roop Sandhu, Principal Lawyer at Phi Finney McDonald, notes:

Investors have a right to expect that financial statements from their listed investments are a true and fair reflection of the company’s performance. They are rightfully concerned about their investments in Corporate Travel due to its long term suspension. Likewise, investors have a right to assume that an auditor’s standards meet the relevant legislation and regulatory requirements.

No class action has been filed at this stage. Nevertheless, it’s another issue shareholders could probably have done without.

Some signs of progress

Corporate Travel shares were suspended in August 2025 after accounting problems emerged around customer charge rates in its UK operations.

Since then, the company has been working through a significant customer remediation program. Corporate Travel has agreed or is close to finalising around 78% of refunds, leaving roughly $55 million still to resolve.

There are, however, some encouraging signs in the underlying business.

Corporate Travel’s FY26 result showed revenue and other income increasing 4% to $669.9 million. Underlying EBITDA jumped 36% to $113.6 million.

The company also returned to profitability, reporting net profit after tax (NPAT) of $17.7 million, compared with a $348.5 million loss a year earlier.

Foolish takeaway

Corporate Travel’s underlying business appears to be making progress. However, investors are being asked to look beyond an extraordinary amount of uncertainty.

The remediation program still has work to do, while the potential class action adds another layer of risk. Most importantly, the return of Corporate Travel shares to trading has demonstrated just how quickly investor confidence can evaporate when a company’s financial reporting comes under scrutiny.

For prospective investors, the question may not simply be whether Corporate Travel shares look cheap after their spectacular collapse. It’s whether the market has enough information yet to confidently say the worst is over.

The post Corporate Travel shares plunge another 9%: Is the worst yet to come? appeared first on The Motley Fool Australia.

More reading

• Where does it end? Corporate Travel hit with another blow after crashing 85%
• 3 ASX shares that cut their dividend this reporting season
• Corporate Travel Management shares crashed 80% on their first day back. What happened?
• Why I’m still smiling after losing 85%
• Warning: Corporate Travel shares have crashed 80%. What on earth just happened?

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

Less than a month ago, the S&P/ASX 200 Index (ASX: XJO) was trading as high as 9,282 points.

Today, it is sitting at 8,901 points.

That is a fall of more than 380 points from its August peak, with the index now down around 1.8% over the past week and almost 4% over the past month.

Wednesday has added a little more pressure, with the ASX 200 down 0.22% at the time of writing after briefly falling to 8,888 points earlier in the session.

The move comes after Tuesday’s 1% slide, which pushed the market to its lowest closing level in 6 weeks.

A 4% pullback is hardly a crash, but the benchmark index has clearly lost some momentum.

So, is this becoming a more serious sell-off?

Interest rates are back in focus

One of the biggest concerns is interest rates, with investors facing the possibility that the RBA may not be finished hiking just yet.

The Reserve Bank lifted the cash rate to 4.35% in August, its third increase of 2026, and comments from senior officials this week have kept another move on the table.

Deputy Governor Andrew Hauser said on Tuesday that inflation remains “too high” and questioned whether the rate increases delivered so far would be enough.

Assistant Governor Sarah Hunter also said the board may need to lift rates again if inflation turns out to be stronger than expected.

That could weigh on companies that are more sensitive to interest rates and changes in consumer spending.

Oil prices are another issue, with Brent crude recently pushing towards US$100 a barrel as the conflict in the Middle East continues.

The selling is fairly widespread

It is not just a handful of large companies pulling the market lower either.

At the time of writing, around 120 ASX 200 shares are in the red, compared with 72 trading higher and 8 unchanged.

The major banks are among the biggest drags. Commonwealth Bank of Australia (ASX: CBA) shares are down 2.35% to $154.96, while National Australia Bank Ltd (ASX: NAB) shares have fallen 1.79% to $38.18.

Meanwhile, Westpac Banking Corp (ASX: WBC) shares are down 1.26% to $34.15 and ANZ Group Holdings Ltd (ASX: ANZ) shares are 0.43% lower at $36.78.

There is some support coming from the resources sector, with higher commodity prices helping several of the market’s biggest miners.

BHP Group Ltd (ASX: BHP) shares are up 2.29% to $63.98, while Rio Tinto Ltd (ASX: RIO) shares have climbed 2.03% to $179.58.

Is the sell-off serious?

At this stage, I wouldn’t call a 4% fall a serious correction.

The ASX 200 is still up around 2% in 2026, and some of today’s weakness comes from several large companies trading ex-dividend.

Those dividends are taking around 8.4 points off the index today, so not all of the decline reflects actual selling.

The post The ASX 200 is down nearly 4% in a month. Is the sell-off getting serious? appeared first on The Motley Fool Australia.

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• Aussie stocks are getting harder to pick. Here’s why
• 2 ASX shares with dividend yields above 8%
• 5 things to watch on the ASX 200 on Wednesday
• Could this exciting growth stock be set to triple? Morgans thinks it can
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

A little over a week ago, Xero Ltd (ASX: XRO) shares were trading above $89.

Today, investors can pick them up for $72.32.

The cloud accounting stock is down another 2.60% on Tuesday, extending its weekly fall to around 13% and wiping out most of its August rebound.

Xero shares have now fallen roughly 37% in 2026 and almost 55% over the past 12 months, having traded as high as $166 over the past year.

That’s a huge change in what investors are being asked to pay for the same business.

And while a falling share price doesn’t automatically make a stock cheap, Xero is getting to a level where I think it deserves another look.

So, has one of the ASX’s best-known growth stocks finally fallen far enough?

Let’s take a closer look.

Why are Xero shares falling again?

The strange part is that there hasn’t been a new earnings downgrade or major company announcement behind this week’s fall.

Xero’s latest updates have mainly been substantial shareholder notices, while its FY26 result was actually pretty solid.

Revenue rose 31% to NZ$2.75 billion, annualised monthly recurring revenue climbed 37% to NZ$3.27 billion, and subscribers increased 11% to 4.92 million.

The problem is that investors are looking past those numbers and focusing on the risks.

Melio integration costs helped push net profit down 27% to NZ$167.4 million, while gross margin fell from 89% to 83.9%.

There are also questions around what AI could mean for software businesses and whether higher interest rates will keep pressure on growth stocks.

So, I don’t think this week’s decline is about one bad piece of news.

It just looks more like investors are still asking how much they should be willing to pay for Xero’s future growth.

Would I buy Xero shares?

At $72.32, I think Xero’s valuation is starting to look a lot more reasonable.

Morningstar’s quantitative valuation puts fair value at $102.60 per share, which is around 42% above the current price.

Of course, a valuation estimate is not a guarantee. Investors still need to watch Melio integration costs, margins, and whether AI changes the competitive landscape faster than expected.

But Xero still has nearly 5 million customers and plenty of room to grow internationally.

I would expect the share price to remain volatile in the short term.

But if I was investing with a 3-to-5-year view, I think Xero is starting to look like good value again.

The post Down 13% in a week: Is the Xero share price finally cheap enough to buy? appeared first on The Motley Fool Australia.

More reading

• Down 54% in a year, are Xero shares now a buy, hold, or sell?
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• Xero and Megaport: 2 ASX tech shares the market can’t agree on
• Buy, hold, sell: Megaport, Xero, AMP shares
• These ASX 50 shares have lost up to 60%. Is the sell-off overdone?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’ve written before about one of the most useful questions in economics and investing.

It’s only three words:

And then what?

Warren Buffett has used the phrase in exactly that context. The point is simple: the first consequence of a decision is usually obvious. The second, third and fourth are where things get interesting.

One Nation’s new Superannuation proposal is a near-perfect example.

(Please put your political views – for or against – aside for a minute; this is about economics.)

The policy would allow eligible renters and mortgage holders to redirect 3 percentage points of the 12% compulsory Super contribution into take-home pay for up to three years.

First-order thinking says: more money in your bank account.

And, yes, that sounds good. Particularly when households are dealing with high mortgage repayments, rents and grocery bills.

But: and then what?

Some, probably most, of that money gets spent. More money chasing the same amount of goods and services adds to demand, and therefore to inflationary pressure.

And then what?

If inflation is stronger than it otherwise would have been, the Reserve Bank may have to keep interest rates higher for longer – or raise them further – eating into some (more) of the benefit.

And then what?

Three years later, the extra take-home pay disappears. But prices probably don’t fall. (When was the last time prices – other than maybe petrol or fruit & veg – fell?) 

Remember: Lower inflation doesn’t mean prices fall – just that they rise more slowly. So when that 3-year period expires, prices will be higher, but your take-home pay would be lower.

Oh, and the money diverted from Super wasn’t invested and compounding during that period!

The pollies aren’t wrong that people are doing it tough. It’s tempting to think a hand-out would solve that. But unfortunately, it’s not that easy. Because you have to ask and then what?

And the same is true in investing.

Imagine someone told you in 1974 that global air travel was going to increase roughly ten-fold over the following half-century.

They’d have been spectacularly right.

Global passenger journeys rose from about 421 million in 1974 to 4.27 billion in 2023.

You might reasonably have thought: “Bingo! I’ll buy shares in airlines.”

Except airlines have historically been terrible businesses.

They require enormous amounts of capital. They have high fixed costs. They’re exposed to fuel prices, recessions, wars, pandemics and regulation. And fierce competition has often meant much of the benefit from increasing demand has gone to passengers through cheaper fares rather than to airline shareholders through higher share prices and dividends.

Even today, peak body, the International Air Transport Association, expects the global airline industry’s return on invested capital to remain well below its cost of capital!

The prediction that more people will fly was right.

The investment results were… not good.

And then what?

We’ve seen something similar with lithium.

The first-order thesis was compelling: electric vehicles and battery storage are going to grow rapidly, therefore the world will need vastly more lithium.

Again, totally accurate.

But markets respond.

High lithium prices encouraged miners to expand existing projects, develop new ones and spend more on exploration.

Supply surged.

By 2024, lithium demand was around six times its 2015 level. Yet lithium prices had fallen back to around 2015 levels. The International Energy Agency says the huge increase in supply drove lithium prices down by more than 80% from their recent highs.

The demand thesis wasn’t wrong. It just ignored the subsequent actions and reactions.

“This technology will change the world” is interesting, but not an investment thesis.

“This industry will grow rapidly” is a forecast, not an investment thesis.

“This commodity will be needed in much greater quantities” is a good insight. But, no, not an investment thesis.

They’re very good starting points.

But you still need to ask what competitors will do. What suppliers will do. Whether new capacity will be added. Whether prices will fall.

Whether customers, suppliers or shareholders capture the benefits.
(And that’s before asking what the share price already accounts for!)

In other words:

And then what?

And then ask it again.

And again.

Because in economics, public policy and investing – in life in general, really – the first-order consequence is usually the easiest one to see. It’s the second, third and fourth that tend to get you. Or, more positively, that can provide opportunities.

Either way, the task is to think past just the initial impact.

To ask ‘And then what?’.

Fool on!

The post The most important question for investors appeared first on The Motley Fool Australia.

More reading

• South32 shares reach fresh 52-week high: Can they keep climbing?
• Why has this ASX biotech fallen nearly 50% today?
• Austal shares surge 6% as another bidder enters the race
• $10,000 invested in Westpac and NAB shares 3 years ago is now worth…
• 2 ASX growth shares tipped to return 20% to 77%

Motley Fool contributor Scott Phillips 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.

South32 Ltd (ASX: S32) shares have climbed around 1% on Wednesday to a fresh 52-week high of $5.26 a piece.

It’s been an incredible success story for the ASX mining stock over the past two months, with the shares flying 34% higher since mid-July alone. 

There have been several peaks and troughs, with the share price fluctuating anywhere between $2.55 in early September last year to today’s high of $5.24. But overall, South32 shares have been among the strongest performers on the ASX so far in 2026.

They’re now up 48% for the year to date and an enormous 101% higher than 12 months ago.

What is driving the latest share price rally?

Late last month, South32’s announced a substantial jump in its ore reserve estimate at its Sierra Gorda mine. The update extends the mine’s reserve life by another five years, to 2045.

The Sierra Gorda copper mine, in which South32 holds a 45% stake, is a large, open-pit operation in northern Chile. This major jump in ore reserves and resources comes after significant drilling to better define the orebody, providing more certainty over future production.

The announcement was shortly followed by South32’s standout FY26 earnings result. The miner posted a 1% increase in revenue from continuing operations, a 28% increase in EBITDA, and a 55% increase in underlying earnings.

The strong earnings result meant management was able to declare a final fully-franked dividend of 5.4 US cents per share for FY26. That’s almost double the miner’s final dividend for FY25 when it issued a final dividend of 2.6 US cents per share.

Investors were clearly thrilled with the rally of good news and many have rushed to snap up the shares.

What do brokers tip next for South32 shares?

Going forward, it looks like brokers are divided about where the shares could go next.

Market Index data shows the majority have a buy rating after a recent rally. The $5.12 average target price now implies a downside of around 3%.

On TradingView, sentiment is a little more mixed. Out of 13 analysts, six have a buy/strong buy rating and another six have a hold rating.

Again, the average target price of $5.26 implies the shares are now fully priced. 

The team at Morgans downgraded South32 shares to a hold after reviewing its FY26 numbers, and increased its price target to $4.90. The broker said it thinks the earnings upcycle is now reflected in the latest price. It also noted the stock has outperformed even the pure copper producers.

Elsewhere, RBC Capital recently upgraded South32 shares to a buy recommendation and raised its price target to $5.50.

The post South32 shares reach fresh 52-week high: Can they keep climbing? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Medibank Private, Ansell, South32 shares
• Buy, hold, sell: South32, Australian Finance Group and Magellan shares
• 9 ASX shares downgraded by experts post-results this week
• 8 ASX shares upgraded by the professionals post-results this week

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Echo IQ Ltd (ASX: EIQ) have fallen 48% to after the company failed in its bid to get US Food and Drug Administration (FDA) approval for its heart failure decision support software EchoSolv HF.

Company to regroup after knockback

The medical technology company said in a statement to the ASX that the FDA had issued a Not Substantially Equivalent determination for the application, rather than approving it for use by clinicians.

Echo shares fell as low as 47 cents, however have since rebounded slightly. At the time of writing, they are trading for 69.5 cents.

Echo IQ said it was now considering its options.

The company said:

Upon receipt of the FDA’s determination, Echo IQ, together with its US regulatory and legal advisors, its study partners, and independent statistical experts, has commenced a detailed review of the regulatory matters raised. The Company believes there is a pathway forward for clearance under the 510(k) route and intends to engage with the FDA to further clarify the matters identified in the determination and assess all administrative and regulatory options available to Echo IQ. This process will inform the most appropriate and efficient pathway to progress EchoSolv HF towards US regulatory clearance.

Echo IQ said it remained confident in the clinical rationale underpinning EchoSolv HF, “and the significant unmet clinical need in the identification of patients with heart failure”.

The company said it also planned to continue its broader US commercial strategy, which involved other products.

The company added:

This determination does not impact the FDA-cleared EchoSolv AS platform or its ongoing commercialisation in the US. Echo IQ will continue to advance its US commercial infrastructure, reimbursement pathway, customer pipeline and strategic relationships, providing a platform to support the future commercialisation of EchoSolv HF, subject to obtaining required regulatory clearance. In parallel, Echo IQ will continue to invest in its broader R&D pipeline, including the development of solutions targeting additional disease states and new clinical modalities.

Management to reassess the company’s position

Echo IQ Managing Director Dustin Haines said that while the company was disappointed in the decision, the determination provided the company with detailed feedback, which could be used to potentially take the program forward.

He added:

Our immediate priority is to understand the matters raised in full and determine the most efficient pathway forward. We remain confident in the underlying technology, the clinical rationale for EchoSolv HF and the significant opportunity to improve the identification of patients at risk of heart failure.

The company said it remained well-funded with more than $105 million in cash.

Broker Morgans recently had a speculative buy rating on Echo IQ with a price target of $1.85.

The post Why has this ASX biotech fallen nearly 50% today? appeared first on The Motley Fool Australia.

More reading

• Morgans says these speculative ASX shares could rise 40% to 50%
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Motley Fool contributor Cameron England 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 an interesting morning for Austal Ltd (ASX: ASB) shareholders.

The shipbuilder entered a brief trading pause on Wednesday, which immediately had investors wondering what was coming.

And we didn’t have to wait long.

Austal shares are now up 6.44% to $4.63 after the company released an update on the future of its US business.

Let’s dive right in.

A new offer has landed

According to the release, Austal has received a non-binding proposal from Wildcat Infrastructure to buy Austal USA.

Wildcat has valued the business at between US$1.25 billion and US$1.35 billion on a cash-free, debt-free basis.

The proposal is subject to 4 weeks of due diligence, while Wildcat says it wants to keep the Austal brand and run the US business as a standalone platform.

Austal said its board and advisers will now consider the proposal.

And Wildcat isn’t the only one interested.

South Korea’s Hanwha, which already owns 19.9% of Austal, has offered between US$1.05 billion and US$1.2 billion for the US operations.

So, Wildcat has come in above Hanwha’s range at both ends.

The Australian puts the new proposal at roughly $1.73 billion to $1.87 billion.

Keep in mind, that’s a pretty big number when Austal’s entire market value is currently around $1.95 billion.

Why the US business is attracting interest

Austal’s latest results help explain why buyers are taking a closer look at the US operations.

Group revenue rose 11% to $2.03 billion in FY26, but the company still posted a $53.6 million net loss.

The US division was the main drag, recording an EBIT loss of $202.8 million after provisions linked to several loss-making contracts.

The Australasian business had a much better year.

Revenue climbed 49% to $650.7 million, while EBIT jumped 137% to a record $85.3 million.

So, if Austal does sell the US business, it could leave the group with a large amount of cash and a much stronger Australasian operation.

What happens next?

There is still plenty to play out from here.

Wildcat’s offer is non-binding and it still needs to complete due diligence, while Hanwha may decide to come back with a higher offer of its own.

But having another buyer interested puts Austal in a stronger position as it weighs up what to do with the US business.

Even after today’s rise, Austal shares are still down around 31% in 2026 and roughly 44% over the past year.

That makes the next few weeks worth watching.

The post Austal shares surge 6% as another bidder enters the race appeared first on The Motley Fool Australia.

More reading

• Austal receives US$1.35bn offer for Austal USA
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

If I could get my time machine to work, would I be better off buying $10,000 worth of Westpac Banking Corp (ASX: WBC) or National Australia Bank Ltd (ASX: NAB) shares on 8 September 2023?

Now both S&P/ASX 200 Index (ASX: XJO) bank stocks have outperformed the 24.4% gains posted by the ASX 200 over the last three years.

And, once we add back in there twice annual dividend payouts, they’ve also both beaten the 37.9% gains delivered by the S&P/ASX 200 Gross Total Return Index (ASX: XJT), which includes all cash dividends reinvested on the ex-dividend date.

But which of these big four Aussie banks has led the charge?

Investing $10,000 into NAB shares

Three years ago, I could have picked up NAB shares for $28.65.

Meaning my $10,000 would have gotten me 349 shares in the big four Aussie bank.

As we head into the Wednesday lunch hour today, those same shares are changing hands for $38.21, up 33.4% in three years.

So, what about those dividends?

Well, if I owned the ASX 200 bank stock for the last three years I would have received six fully-franked dividend payments, totalling $5.08 a share.

If we add that back into today’s share price, then the accumulated value of the NAB shares I bought for $28.65 three years ago is now worth $43.29. And the 349 shares I bought for $10,000 are worth an accumulated $15,108.

Not bad.

But what about Westpac?

Buying Westpac shares in September 2023

On 8 September 2023, Westpac shares closed the day trading for $21.17. So, for $10,000, I could have bought 472 Westpac shares.

At time of writing, shares in the ASX 200 bank stock are swapping hands for $34.23 each, up 61.7% in three years.

Now let’s add that passive income back in.

If I owned Westpac shares for the last three years, I would have received the last six fully-franked dividend payments, totalling $4.68 a share.

Adding that back into the current share price, the accumulated value of the Westpac shares I bought three years ago is now worth $38.91. And the 472 shares I bought for $10,000 are worth an accumulated $18,366.

So, while both ASX 200 bank stocks have handily outperformed the benchmark indexes over the last three years, Westpac shares have gained significantly more than NAB shares.

Now, if I can only get that time machine working!

The post $10,000 invested in Westpac and NAB shares 3 years ago is now worth… appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 number of ASX growth shares have fallen sharply over the past year.

I think some of those falls have created good opportunities for investors willing to take a longer-term view.

These are two I would be happy to buy today, with recent broker price targets suggesting potential upside of around 18% to 77%.

ResMed Inc (ASX: RMD)

ResMed shares are trading around $30.55 today, down almost 28% on a 12-month basis.

I continue to like the long-term opportunity in sleep apnoea and respiratory care.

The company sells devices, masks, and software to help diagnose and treat sleep-related breathing conditions. Despite ResMed’s size today, diagnosis and treatment rates remain relatively low globally, which leaves the business with plenty of room to keep growing.

ResMed has also recently agreed to sell its MatrixCare software business for US$400 million in cash.

Ord Minnett believes the sale makes sense because MatrixCare was complementary to the wider business rather than central to ResMed’s focus on sleep apnoea and respiratory care.

The proceeds are expected to be returned to shareholders through an accelerated share buyback.

The broker has trimmed its earnings forecasts slightly following the sale, although the lower number of shares following the buyback should provide some offset.

Ord Minnett has a buy recommendation and a $36.20 price target. From today’s share price, that points to potential upside of around 18%.

I think that would be a strong return from a business that still has a large global market ahead of it.

WiseTech Global Ltd (ASX: WTC)

WiseTech shares are currently trading around $35.24 after a very difficult period for investors.

Despite that weakness, I still like the long-term position of its CargoWise logistics software.

CargoWise is used by major freight forwarders and logistics companies around the world. Once software becomes deeply embedded in the day-to-day running of these businesses, switching to another platform can be expensive and disruptive.

WiseTech’s FY26 result was broadly in line with Morgans’ expectations, although CargoWise revenue growth of 11% was softer than the broker had hoped.

One positive was the progress WiseTech made on costs. The company delivered approximately US$115 million of annualised run-rate savings during FY26, which should help margins as the business moves through FY27.

Management expects revenue growth to be weighted towards the second half of the year as new initiatives begin contributing. Its underlying EBITDA guidance also points to margins returning towards 49% to 51%.

Morgans remains positive, retaining its buy rating and setting a $62.50 price target. From today’s price, that suggests potential upside of approximately 77%.

Foolish takeaway

I would buy both of these ASX growth shares at current prices.

ResMed still has a long runway in sleep apnoea and respiratory care, while WiseTech could offer much greater upside if the business delivers on its plans and investor confidence starts to recover.

Neither investment is without risk, but I think the potential long-term rewards make both worth a closer look.

The post 2 ASX growth shares tipped to return 20% to 77% appeared first on The Motley Fool Australia.

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