Tag: Stock pick

Rio Tinto Ltd (ASX: RIO) shares are climbing higher again in Wednesday lunchtime trade.

At the time of writing, the shares are up around 2% for the day, and are trading at $179.98 each.

Today’s increase means the ASX mining stock is now up 21% higher for the year-to-date, and they’re 53% higher than 12 months ago.

For context, the S&P/ASX 200 Index (ASX: XJO) is down slightly, by around 0.2% at the time of writing, and around 1% higher than a year ago. 

What is causing the Rio Tinto share price rally?

Copper prices are reaching fresh record highs this week as supply struggles to keep up with rising demand from data centers, renewable energy projects and power grids.

According to Trading Economics data, copper futures have climbed to around US$6.8 per pound, up significantly from around US$4.5 per pound around 12 months ago.

Major copper-producing countries in South America have also faced operational challenges this year, contributing to weaker output and exports. And at the same time fears about potential US tariffs has encouraged traders to ship directly to US warehouses, tightening supply elsewhere in the market.

And the increase is good news for Rio Tinto. The company has diversified away from its heavy reliance on iron ore, becoming a major player in the copper market.

The shift has boosted the company’s earnings too. For the first half of FY26, Rio Tinto reported a 28% increase in its underlying EBITDA. 

And underlying EBITDA for the company’s copper business surged 84% to US$5.7 billion, making up roughly 36% to 39% of total group earnings. Copper, aluminium and lithium now contribute more than half of the miner’s underlying EBITDA.

Rio Tinto’s underlying fundamentals are clearly very strong. But now the question is, can the shares keep climbing higher, or have they reached fair value?

Are the mining shares a buy, sell or hold now?

After an impressive rally over the past 12 months, it looks like Rio Tinto shares could be trading around fair value.

TradingView data shows that the experts are divided about their outlook for the shares. Out of 15 analysts, six have a buy/strong buy rating and another six have a hold rating on the shares. Another three have a strong sell rating.

But after the latest rally, the average $171.92 target price now implies a potential 4% downside, at the time of writing. Although some still tip an upside of up to 10%, to $198.01 over the next 12 months. 

The team at Morgans has a hold rating on the mining shares. The broker notes that iron ore remains the primary earnings driver for Rio Tinto, leaving profits exposed to movements in commodity prices and Chinese demand. It added that, given this balance of quality and cyclical risk, the shares now look to be trading at fair value.  

The post Up 54% in a year: Are Rio Tinto shares a buy, hold or sell? appeared first on The Motley Fool Australia.

More reading

• How much passive income can I earn off a $550,000 superannuation balance?
• Is China about to become a problem for Rio Tinto shares?
• How much do I need in my superannuation to earn $10,000 passive income every month?
• These ASX shares benefit from a high Aussie dollar
• Up 57%! Should I still buy Rio Tinto shares today?

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.

Santos Ltd (ASX: STO) shares are trending higher in Wednesday morning trade.

At the time of writing, the shares are up around 2% and are changing hands at a six-year high of $8.54 each.

The latest increase means the oil and gas company’s shares have increased around 39% for the year-to-date, and they’re also up 12% compared to this time last year.

What is driving the shares higher this year?

The ASX energy shares shot higher in 2026 off the back of ongoing conflict between the US and Iran. Volatility in the region has fuelled significant concerns about tighter global oil supply and rising prices.

The shares spiked in February and March, around the time news first broke that conflict had escalated between the two nations. The shares continued climbing in value as the war heated up.

Santos shares cooled in June off the back of news that the two nations could soon reach a peace agreement, but strikes have resumed in the region this week, reigniting inflation fears and pushing the energy company’s shares to a fresh high.

The shares have also been supported by the company’s strong half-year FY26 results announcement, which it posted last month.

Santos reported a 2% year-on-year increase in sales revenue and a 1.7% increase in production volumes. The company also generated free cash flow from operations, driven by strong base business performance.

The business could continue strengthening this year

It looks like the oil and gas business is well placed to keep increasing its production in the coming reporting periods, which could help boost its earnings even further.

Just this week, Santos announced that it has agreed to spend around US$189 million ($262 million) to buy another 3.3% of the Papua LNG project from TotalEnergies SE (NYSE: TTE).

The deal is still subject to regulatory approvals and a final investment decision. This is currently targeted for the fourth quarter of 2026.

If it goes ahead, Santos expects its share of LNG production from Papua LNG to rise by around 19% to about 1.2 million tonnes per year.

So, what do brokers tip for Santos shares next?

It looks like the experts are bullish about the outlook for Santos shares over the next 12 months.

Market Index data shows that all brokers have a strong buy rating on the stock. But after the latest rally, the $8.57 average target price now implies around a 0.5% upside, at the time of writing.

Sentiment is also very positive on TradingView. Out of 15 analysts, 13 have a buy/strong buy rating on Santos shares. Meanwhile, one analyst rates it a hold, and one rates the energy share a sell. 

The average $8.75 target price implies a potential 2% upside ahead, at the time of writing. But some expect the shares to jump around 24% to $10.60 within the next 12 months.

Citi reaffirmed its buy rating on the ASX 200 energy share following its half-year update. The broker also raised its target price to $9, which is a little above the average.

Elsewhere, Morgans has a hold rating on Santos shares. The broker noted that the results beat estimates, but that it is impossible to quantify the risks posed by the Federal Government’s gas reservation policy ahead of its release. 

The post Here’s what brokers tip for Santos shares over the next 12 months appeared first on The Motley Fool Australia.

More reading

• Is the Santos share price still good value after rising 37% in 2026?
• 5 things to watch on the ASX 200 on Wednesday
• Santos shares on watch after major Papua LNG deal
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday

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.

The All Ordinaries Index (ASX: XAO) is up a slender 0.6% in 2026, with no thanks to these two beaten down ASX All Ords healthcare shares.

The struggling companies in question are commercial-stage medical device company Saluda Medical Inc (ASX: SLD) and health imaging company Pro Medicus Ltd (ASX: PME).

In morning trade on Wednesday, Pro Medicus shares are changing hands for $168.79 apiece. That’s down 0.5% today, and it sees the Pro Medicus share price down 24.2% since 2 January.

Saluda Medical, which listed on the ASX on 5 December, has had an even tougher year of it.

At time of writing, Saluda Medical shares are trading for 41 cents each. That’s flat for the day, but it still sees this ASX All Ords healthcare down a painful 71.7% year to date.

Looking ahead, however, Medallion Financial Group’s Stuart Bromley believes both ASX All Ords healthcare shares are well-placed to rebound in the months ahead courtesy of The Bull).

Here’s why.

ASX All Ords healthcare share increasing revenue

Turning to Saluda Medical first, Bromley said, “Saluda makes the Evoke spinal cord stimulator, which automatically adjusts pain therapy in real time.”

And he was impressed with Saluda’s FY 2026 results.

Bromley noted:

Results in full year 2026 were strong, in our view.

Revenue of $US90.2 million was up 28 per cent on the prior corresponding period and ahead of upgraded guidance. US patient implants increased by 50 per cent in the fourth quarter of 2026.

Summarising his buy recommendation on the ASX healthcare stock, he concluded:

With its newly approved CAP24 surgical paddle lead expanding the addressable US market by about 30 per cent, we believe SLD presents as an attractive buying opportunity for investors comfortable with potential share price volatility and risk.

Which brings us to…

Pro Medicus shares trading at ‘attractive’ levels

Bromley also had a bullish take on Pro Medicus shares.

“Pro Medicus is a global leader in medical imaging software, with its Visage platform increasingly adopted by major US hospital networks,” he said.

Summarising his buy recommendation on the ASX All Ords healthcare share, Bromley concluded:

Revenue of $261.7 million in full year 2026 rose 22.9 per cent on the prior corresponding period. Underlying net profit after tax of $144.7 million was up 24.1 per cent. Revenue and underlying net profit exceeded expectations, while the underlying earnings before interest and tax margin reached an exceptional 74.9 per cent.

It signed 10 new contacts worth $407 million in full year 2026. It renewed six contracts on five-year terms to the value of $141 million. Recent share price weakness provides an attractive entry point into a high-quality growth business.

The post Expert names 2 beaten-down ASX All Ords healthcare shares to buy today appeared first on The Motley Fool Australia.

More reading

• 7 ASX healthcare stock picks from Bell Potter
• Forget CSL shares. 3 ASX healthcare stocks with bigger upside
• 6 ASX shares tipped by brokers to rise 34% to 88%
• Down 43%! 4 reasons to buy the BIG dip in Pro Medicus shares today
• Experts name 3 top ASX shares to buy this week

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 recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Macquarie is now predicting the Reserve Bank of Australia (RBA) board will hike interest rates at its meeting later this month, saying that stubbornly high inflation is likely to force its hand.

Data will force the Reserve Bank to act

In a research note released this week, Macquarie noted that trimmed mean inflation had spent 17 of the last 20 quarters above the RBA’s target band for inflation of 2%-3%.

Macquarie said the RBA had “run a monetary experiment” over the past couple of years, “hiking less than other central banks during 2022 and 2023 in an attempt to hold onto part of the fall in unemployment that occurred during COVID”.

They went on to say:

In the first half of 2025, it looked like the experiment had worked, with underlying inflation returning to the middle of the target band, allowing the RBA to claim victory by easing policy by 75 basis points. However, over the second half of 2025 both growth and inflation rebounded, forcing a reversal of the earlier cuts as the RBA acted to slow growth. The 75 basis points of tightening earlier this year is working, with growth in recent quarters below trend. However, with unemployment still around three quarters of a percentage point below the pre-COVID level, the RBA now seems to feel that output remains above the economy’s potential, suggesting that more needs to be done to bring inflation back to target.

Macquarie said wages growth in the second quarter was slightly below RBA expectations while July inflation was strong, however volatility in these numbers made it difficult to “discern signal from noise”.

RBA sending a clear message

But the broker said the RBA appeared to be sending clear signals about a rise in interest rates.

As they wrote:

Commentary … from RBA Assistant Governor Hunter has provided a clear steer on which side of the fence RBA staff have landed. Hunter highlighted concerns about oil prices and strength in the July CPI. While acknowledging the volatility in the monthly CPI series, she indicated RBA staff see enough signal in the data of stronger than expected inflation (pointing to strength in domestic factors such as market services and new dwelling price inflation).  

Macquarie said the conclusion they drew from this was that a 25 basis point increase later this month was now the most likely outcome.

The cash rate was last increased, by 25 basis points, on May 6, following identical increases in February and March.

The official cash rate now sits at 4.35%.

The post Macquarie makes a big call on a September interest rate hike appeared first on The Motley Fool Australia.

More reading

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

There are plenty of ASX shares to choose from when investing $5,000.

I would want to use the money on businesses I can see owning for years, with enough growth ahead to make patience worthwhile.

These three would be high on my list.

BHP Group Ltd (ASX: BHP)

I would put $2,000 into BHP.

The mining giant gives investors exposure to commodities that should remain important as the global economy develops, including iron ore and copper.

Copper is particularly interesting to me over the longer term. Electrification, renewable energy infrastructure, data centres, and expanding power networks all require significant amounts of the metal.

BHP already has major copper operations and continues investing to increase its output.

Its enormous iron ore business also remains important. BHP generates substantial cash flow that can support investment elsewhere in its portfolio, as well as dividends for shareholders when conditions allow.

Commodity prices will always move around, so BHP is unlikely to deliver smooth earnings growth every year.

But I think its scale, asset quality, and exposure to resources the world will continue needing make it a strong long-term holding.

Wesfarmers Ltd (ASX: WES)

I would invest another $1,500 in Wesfarmers.

What I like about Wesfarmers is the collection of businesses under its control.

Bunnings has built a particularly strong position in Australian home improvement, while Kmart has become an increasingly important contributor through its low-cost retail model. Officeworks and the group’s other operations add further sources of earnings.

These businesses also give Wesfarmers plenty of opportunities to keep improving rather than relying on one major expansion project.

Management can reinvest in existing operations, develop new opportunities, or direct capital towards areas where it sees better returns.

Wesfarmers shares are rarely priced like a bargain, and I would still pay attention to valuation. But for a long-term investment, I think there is value in owning a company with strong brands, experienced capital allocation, and several ways to grow over time.

NEXTDC Ltd (ASX: NXT)

My remaining $1,500 would go into NEXTDC.

This would be the most growth-focused investment of the three. NEXTDC develops and operates data centres across Australia and other Asia-Pacific markets. Demand for this infrastructure is increasing as businesses move more workloads into the cloud and artificial intelligence drives much greater computing requirements.

What gives me confidence in the opportunity is that NEXTDC is not simply building capacity and hoping customers eventually arrive.

The company has secured substantial contracted demand for future data-centre capacity, which gives it visibility over facilities that are still being developed.

There is plenty of execution risk. Data centres require enormous amounts of capital, and NEXTDC needs to deliver new projects efficiently while managing its funding requirements.

I still think the potential reward is attractive if demand continues growing as expected.

Foolish takeaway

If I had $5,000 available today, I would be comfortable spreading it across these three ASX shares.

BHP shares would give me exposure to long-term commodity demand, Wesfarmers brings a collection of high-quality Australian businesses, and NEXTDC offers much stronger exposure to the expansion of digital infrastructure.

I think that gives the money several opportunities to grow without relying on one company or one part of the economy.

The post Why I’d buy BHP and these ASX shares with $5,000 appeared first on The Motley Fool Australia.

More reading

• How much passive income can I earn off a $550,000 superannuation balance?
• Copper prices just hit a record high. What does this mean for ASX copper shares?
• 3 ASX growth shares experts think could double
• NextDC shares have fallen 14% in a month. Is the AI data centre boom over?
• $10,000 invested in BHP and CBA shares three years ago is now worth…

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

Picking the right ASX shares is starting to look a little trickier.

New analysis from Global X ETFs found that almost half of the top 300 ASX companies underperformed the broader market during August’s reporting season.

That might sound surprising, especially with the S&P/ASX 200 Index (ASX: XJO) spending much of 2026 moving higher.

The benchmark index is currently up more than 2% year to date.

But dig a little deeper and there has been a huge difference between the stocks getting rewarded and those being left behind.

So, why has stock picking become so tough?

No room for misses

August showed just how quickly investors were willing to punish companies that fell short.

Global X senior investment strategist Marc Jocum summed it up pretty well.

“This reporting season was unforgiving,” he said.

And the share price moves back that up.

Around half of ASX 200 companies recorded a daily move of at least 5% during August, making it one of the more volatile reporting periods in recent memory.

It also meant a decent result wasn’t always enough.

If guidance disappointed or the market had been expecting more, investors were quick to sell.

There was also a big gap in where the earnings growth came from.

Although headline earnings growth was the strongest in 4 years, much of that was driven by resources. But if you take mining stocks out of the equation, earnings growth fell back to single digits.

Winners and losers

There was also a pretty big divide between sectors.

Materials shares rose around 12% during August, while healthcare jumped almost 19%, its best month in more than 25 years.

Consumer discretionary, property and the big banks went the other way, with all 3 areas struggling.

There was some caution about what comes next, with forward earnings estimates being cut across parts of the market.

AI keeps coming up

Another thing that kept popping up during reporting season was artificial intelligence (AI).

Global X found around 60% of companies mentioned AI on earnings calls, with most talking about how it could improve productivity.

That’s a pretty big number and shows AI is no longer just a topic for tech companies.

But Jocum’s broader takeaway was probably the more important one for investors.

He said “the market is no longer a rising tide lifting all boats”.

That feels pretty accurate after August.

There are still plenty of opportunities on the ASX, but investors may need to be a lot more selective about which stocks they back.

The post Aussie stocks are getting harder to pick. Here’s why appeared first on The Motley Fool Australia.

More reading

• Macquarie makes a big call on a September interest rate hike
• 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 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.

Reaching $1 million in superannuation would be a major milestone.

Once retirement arrives, though, the size of the balance is only part of the picture. The next question becomes what sort of lifestyle that money could support and how long it might need to last.

For someone hoping to draw $50,000 a year, there are a few things I would think about before assuming the numbers will work.

Start with the withdrawal rate

Taking $50,000 from a $1 million super balance represents a 5% annual withdrawal.

On the surface, that does not look unreasonable. If the portfolio earned an average return of 5% after fees, a $50,000 withdrawal would roughly match those returns in the first year. Stronger investment returns could allow the balance to grow, while weaker years could see it fall.

Of course, markets do not deliver the same return every year.

A portfolio might rise strongly one year and fall the next. That means the sustainability of a $50,000 annual income would depend on what the investments earn over many years, rather than whether they happen to generate 5% in any individual year.

Which ASX shares would I buy?

One way to generate $50,000 of income a year would be to build a portfolio averaging a dividend yield of 5%.

There are certainly ASX shares capable of contributing meaningful dividend income, but I would not force the entire portfolio into high-yield investments just to hit that figure.

I would rather own a mixture of income and growth investments.

APA Group (ASX: APA), for example, could provide exposure to infrastructure and regular dividends. Macquarie Group Ltd (ASX: MQG) offers another source of income while retaining opportunities to grow across its global businesses.

I would also want investments with stronger capital growth potential, potentially including international shares through an exchange-traded fund (ETF) such as the Vanguard MSCI Index International Shares ETF (ASX: VGS).

Some years, dividends might cover much of the $50,000. In others, I would be comfortable selling a small portion of the portfolio to cover the balance.

Retirement income does not have to come entirely from dividends.

Inflation changes the calculation

Inflation is another challenge if retirement lasts 20 or 30 years.

A $50,000 annual income today will not buy the same amount decades from now.

If living costs rise by 2.5% each year, for example, an investor would eventually need considerably more than $50,000 just to maintain the same spending power.

That is one reason I would keep a meaningful allocation to growth assets after retiring.

If the portfolio can continue increasing in value over time, withdrawals may also be able to rise without putting as much pressure on the remaining balance.

Foolish takeaway

So, could $1 million in superannuation provide $50,000 a year in retirement?

I think it could.

A 5% starting withdrawal is not an extreme figure, but I would want the portfolio to keep working well beyond the first few years of retirement.

For me, the stronger approach would combine income, long-term growth, diversification, and some flexibility around withdrawals. That gives the $1 million balance a good chance of supporting a comfortable income while still having plenty left to fund the years ahead.

The post Could a $1 million superannuation balance provide $50,000 a year in retirement? appeared first on The Motley Fool Australia.

More reading

• How much passive income can I earn off a $550,000 superannuation balance?
• Top 3 ASX dividend shares to buy if interest rates go up
• Top 3 ASX shares to buy with $3,000 in September
• How much is needed in superannuation for $3,000 in weekly passive income?
• Are these top Vanguard ETFs still a buy in September?

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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool Australia has recommended Macquarie Group and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Austal Ltd (ASX: ASB) share price is in focus today after announcing it has received a non-binding offer from a Wildcat Resources Ltd (ASX: WC8) led syndicate to buy Austal USA for between US$1.25 and US$1.35 billion. The deal would see Austal’s US operations continue independently under the Austal brand.

What did Austal report?

• Received US$1.25–1.35 billion non-binding offer for Austal USA from Wildcat syndicate
• Offer is subject to four weeks of due diligence
• Proposed transaction on a cash free, debt free basis
• Wildcat intends to retain the Austal brand and US operations as a standalone platform

What else do investors need to know?

Austal’s board and advisers are now considering the proposed transaction. There is no guarantee the deal will proceed to a binding agreement, as it’s subject to further due diligence and other standard conditions.

Austal remains Australia’s largest defence exporter and a key partner to the US and Australian governments. In late 2024, it was named Strategic Shipbuilder by the Commonwealth for major Defence projects in Western Australia. The company’s global reach includes shipyards in Australia, the USA, the Philippines, and Vietnam.

What’s next for Austal?

Investors will be watching for updates after Wildcat’s due diligence period. If the deal progresses, Austal could free up significant capital to reinvest in its defence shipbuilding business or return to shareholders, but there’s no certainty yet.

Austal’s core focus remains defence and commercial shipbuilding. The company’s commitment to local and international defence contracts, including strategic work for both the US and Australia, underpins its outlook regardless of the sale outcome.

Austal share price snapshot

Over the past 12 months, Austal shares have declined 47%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 1% over the same period.

View Original Announcement

The post Austal receives US$1.35bn offer for Austal USA appeared first on The Motley Fool Australia.

More reading

• Austal shares are surging. Is a bidding war brewing?
• Top 3 ASX defence shares to buy right now
• Austal shares jump again as takeover interest heats up
• This ASX lithium project developer could rise more than 300%: Broker
• Buy, hold, sell: Boss Energy, Austal, Liontown shares

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Xero Ltd (ASX: XRO) shares are sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) business and accounting software provider closed yesterday trading for $74.25. In morning trade on Wednesday, shares are changing hands for $73.17 apiece, down 1.5%.

For some context, the ASX 200 is up 0.1% at this same time.

Unfortunately for long-term shareholders, today’s underperformance is all too familiar. With today’s intraday losses, Xero shares are down 54.2% over the past 12 months, compared to the 1.4% one-year gain posted by the benchmark index.

Though a more accurate comparison here would be against the S&P/ASX 200 Information Technology Index (ASX: XIJ), which has crashed 40.9% since this time last year.

As you’re likely aware, ASX tech shares were caught up in a broader global sell-down of the tech sector. That came amid the so-called ‘SaaSpocalypse’, which refers to concerns that AI could potentially replace many of the services that Software as a Service (SaaS) companies like Xero provide.

ASX tech stocks have also come under pressure amid rising interest rates. Growth-oriented shares like Xero tend to be priced with higher future earnings in mind. And as interest rates go up, so too does the present cost of investing in those future earnings.

Which brings us back to our headline question.

With the company’s share price having lost more than half its value over the last year, is the ASX 200 tech stock now a good buy?

Xero shares: Buy, hold, or sell?

Gray Perry Wealth Advisers’ Blake Halligan recently analysed the outlook for the embattled ASX 200 tech stock (courtesy of The Bull).

“Xero remains a leading cloud accounting platform, with a dominant position in Australia and New Zealand,” he said.

Halligan added, “Fiscal year 2026 operating revenue increased 31 per cent, supported by 506,000 net customer additions and the Melio Payments acquisition.”

But amid concerns over the integration costs of that acquisition, Halligan issued a hold recommendation on Xero shares.

He concluded:

Melio should aid in revenue growth, but costs associated with its integration contributed to a 27 per cent fall in net profit after tax and a gross margin decline from 89 per cent to 83.9 per cent.

The profitable ANZ and UK businesses offer growth potential and could assist in a continuing share price recovery.

Commenting on Xero’s completed Melio acquisition following the company’s FY 2026 results release, CEO Sukhinder Singh Cassidy said:

We have powerful momentum across our markets, and delivered strong EBITDA growth while absorbing Melio. This has moved us beyond single-job workflows in the US by integrating Melio to unite accounting and payments on one platform.

The post Down 54% in a year, are Xero shares now a buy, hold, or sell? appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX 200 shares to buy in September
• 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?
• How to build a winning ASX share portfolio and create wealth

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 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.

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.