Tag: Stock pick

The story of WiseTech Global Ltd (ASX: WTC) shares over the last year has been a compelling one. 

Dragged down by artificial intelligence replacement fears, WiseTech shares fell roughly 70% from 12-month highs between July 2025 and March 2026.

However since then, WiseTech shares have rallied, recovering more than 20%. 

This was consistent for many ASX technology shares that were oversold prior to April. 

The AI debate

The big question for WiseTech, and technology shares in general, has been whether artificial intelligence is likely or capable of replacing core services. 

Arguments have been made that as AI continues to rapidly advance. Rathe than simply helping these companies improve efficiency, it might make parts of their businesses obsolete.

A lot of ASX tech firms – especially SaaS (software-as-a-service) – sell tools that automate tasks. The problem now is that AI can now do many of those same tasks, often cheaper and better. 

This is already apparent for tasks like writing code, analysing data, handling customer service, and generating content. 

That overlaps directly with what many software companies charge subscriptions for. 

How does this impact WiseTech shares?

Right now, WiseTech sits right on the line between AI victim and AI winner.

WiseTech sells logistics software (CargoWise) that automates workflows, and it is true that AI is capable of automating workflows. 

CargoWise is effectively the operating system for global logistics, handling customs, compliance, shipping, billing across 180+ countries. 

That creates:

• High switching costs
• Regulatory complexity
• Mission-critical dependency.

In addition to this, unlike some smaller SaaS companies, WiseTech isn’t sitting still – it’s aggressively adopting AI internally.

The company recently cut roughly 2,000 jobs (~30% of workforce) due to AI automation. 

The WiseTech CEO explicitly said manual coding is “over”, and the company is now automating large parts of product development and operations. 

What are experts saying?

Yesterday, the team at Bell Potter provided updated guidance on WiseTech shares, providing a pathway forward through murky tech waters. 

The bottom line: the broker believes that WiseTech shares are cheap, especially in comparison to other tech stocks. 

It has put a buy rating and $78.75 price target on WiseTech shares, which is approximately 73% higher than yesterday’s closing price. 

As The Motley Fool’s Marc Van Dinther reported yesterday, 15 out of 17 analysts (via TradingView) rate WiseTech shares as a buy or strong buy. 

Foolish takeaway 

The core conflict investors need to consider when it comes to WiseTech shares is the bull vs bear case. 

With a negative lens, AI could commoditise parts of WiseTech Global’s software, putting pressure on pricing, margins, and long-term growth.

On the flip side, AI could strengthen WiseTech Global’s dominance by automating complex logistics workflows, lowering costs, and deepening its competitive moat.

The post Still down 40% over the past year, how high could WiseTech shares recover? appeared first on The Motley Fool Australia.

More reading

• 5 oversold ASX shares to buy before the end of April
• Why I don’t own Telstra shares (yet)
• Why WiseTech shares could rise 70%
• Is the worst over for Xero shares? Here’s what the chart is showing
• WiseTech shares are surging again, is it too late to buy now?

Motley Fool contributor Aaron Bell has positions in WiseTech Global. 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.

Yesterday, we discussed the concept of ‘stagflation’, what it is, and why the global economy might be about to face its first significant bout of it since the 1970s. Today, we will expand on that by looking at its potential impacts on an ASX stock portfolio, and how investors can prepare for that risk.

It’s well worth taking a moment, at least in my completely unbiased opinion, to dive into yesterday’s piece. But if you want the ‘tldr’ version, stagflation refers to the phenomenon where an economy experiences persistently high inflation at the same time as it suffers from stagnant or falling economic growth and rising unemployment. Stagnant growth plus sticky inflation equals stagflation.

Historically, periods of stagflation have been rare occurrences across the advanced economies of the world. The last major stagflationary period occurred in the 1970s, and was sparked by a series of oil shocks. It doesn’t take a lot of imagination to work out why investors are again worried about stagflation in 2026.

So if Australia and other major economies of the world do enter a period of stagflation, what does this mean for investors? That’s what we’ll be talking about today.

Rising prices, stagnant growth

Stagflation represents a double-whammy of risk to ASX stocks. Companies have to manage a low-growth economy that may see rising unemployment, potentially high interest rates, and depressed consumer confidence. At the same time, they must manage the impact of sticky inflation and perpetually rising costs. It’s the exact opposite of what we could describe as ideal business conditions.

Under a stagnation-riven economy, most businesses will suffer, and only the companies of the highest calibre will manage to consistently compound their revenues and profits. It’s these businesses that ASX investors should focus on identifying and investing in.

Fortunately, we already know the playbook that is best employed here. It comes from none other than legendary investor Warren Buffett. Buffett has long touted the benefits of investing in companies that possess a wide economic moat. This term, which Buffett himself coined, refers to an intrinsic competitive advantage that a company can possess, which helps it ward off both competition and destructive economic forces.

This could come in the form of a strong, loyalty-commanding brand, a low-cost advantage of production, or making a good or service that customers find difficult to avoid buying. Most of the companies that Buffett invested in at Berkshire Hathaway, including Coca-Cola, Apple and American Express, possessed at least one of these characteristics.

Its these companies that, at leas tin my view, are best positioned to survive, and even thrive, in a stagflationary economy.

Stagflation stock picks?

ASX investors might wish to take a look at the holdings of the VanEck Morningstar Wide Moat ETF (ASX: MOAT), or the ETF itself, for some ideas in this vein. I would also argue that many of the ASX’s top blue chips how clear signs of possessing at least one wide economic moat. These could include Telstra Group Ltd (ASX: TLS), Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL), Transurban Group (ASX: TCL), and Wesfarmers Ltd (ASX: WES).

Saying that, finding a wide-moat ASX stock is not the end-game. Investors also need to buy shares of these stocks at prices that make sense. And that is certainly easier said than done.

The post Stagflation: How to position an ASX stock portfolio appeared first on The Motley Fool Australia.

More reading

• Here are the latest growth forecasts for the Wesfarmers share price
• Why I don’t own Telstra shares (yet)
• 5 powerhouse ASX dividend shares to buy and hold until 2050
• How to build a second income from ASX shares without taking big risks
• 3 ASX 200 shares tipped to tumble 10% (or more) in the next 12 months

American Express is an advertising partner of Motley Fool Money. Motley Fool contributor Sebastian Bowen has positions in American Express, Apple, Berkshire Hathaway, Coca-Cola, VanEck Morningstar Wide Moat ETF, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Berkshire Hathaway, Transurban Group, and Wesfarmers and is short shares of Apple. The Motley Fool Australia has positions in and has recommended Telstra Group, Transurban Group, and Woolworths Group. The Motley Fool Australia has recommended Apple, Berkshire Hathaway, VanEck Morningstar Wide Moat ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Few ASX shares look as out of favour right now as Jumbo Interactive Ltd (ASX: JIN).

The online lottery and digital gaming business is trading at around $8 per share, just above its 52-week low of $7.46. That leaves Jumbo well below the levels above $15 investors saw in the past and down heavily over the past year.

When a business with a long operating history and a profitable model falls this far, the obvious question becomes whether the market is spotting a deeper problem — or creating an opportunity.

What Jumbo actually does

Jumbo is best known as an online lottery business, but it is more than just a digital lottery ticket seller.

The company operates across lottery retailing, managed services, and the fast-growing Dream Giveaways business in the UK and US. That broader mix matters, because it means Jumbo is no longer relying on one engine alone to grow. Offshore expansion and software-style managed services are becoming a bigger part of the story.

That is important context, because the share price weakness does not appear to be driven by an obvious collapse in the operating business.

The latest result was not bad at all

For the six months ended 31 December 2025, Jumbo reported total transaction value of $524.1 million, up 15.6% year-on-year. Revenue rose 29% to $85.3 million. Underlying operating earnings (EBITDA) increased 22.6% to $37.5 million, while profits (underlying NPAT) climbed 22.6% to $22.8 million. The company also declared a fully franked interim dividend of 12 cents per share.

Statutory NPAT did fall 13.4% to $15.5 million, but that appears to reflect acquisition-related and other non-recurring items rather than a clean deterioration in the underlying business.

Just as importantly, management upgraded parts of its FY26 outlook, particularly for Dream Giveaways UK and Canadian managed services. Jumbo also finished the half with $44.7 million in available cash, $57.8 million in available funds, a cash conversion ratio of 129%, and net leverage of only 0.8x.

That is not the profile of a business under obvious financial stress.

So why is the share price so weak?

Part of the answer seems to be sentiment.

Lottery retailing was affected by a softer jackpot cycle, which can weigh on investor enthusiasm. At the same time, smaller ASX growth shares have been under pressure more broadly, especially when markets get nervous and investors pull back from anything perceived as even slightly cyclical or less liquid.

There is also a technical element. Earlier commentary pointed to a prolonged downtrend, with the stock breaking below key support levels and entering oversold territory on some momentum measures.

In other words, the market may be punishing the chart more than the business.

Is this valuation starting to look compelling?

At one point this year, Jumbo was trading on a price-to-earnings ratio of around 13 times, with a dividend yield near 5%.

That is a much more modest rating than investors once gave the company during its higher-growth phase.

Broker views also suggest there may be a gap between market price and analyst expectations. Jarden has reportedly held a buy rating with a $12.70 price target, while Morgans maintained a buy recommendation and an unchanged $14.90 target price after updating forecasts. 

That does not make the stock a sure thing. A low share price alone is never a reason to buy, and “once in a generation” is probably too strong if taken literally. Still, some opportunities are incredibly rare.

When a business is growing revenue, expanding underlying earnings, paying fully franked dividends, upgrading guidance in key segments, and yet trading near a seven-year low, it is fair to say the setup is becoming hard to ignore.

For patient investors, Jumbo may not be a guaranteed bargain.

But it does look increasingly like one of those moments where fear and fundamentals are pulling in opposite directions.

The post Are Jumbo Interactive shares, now at a multi-year low, a once-in-a-generation buying opportunity? appeared first on The Motley Fool Australia.

More reading

• Still down 40% over the past year, how high could WiseTech shares recover?
• Stagflation: How to position an ASX stock portfolio
• Here are the latest growth forecasts for the Wesfarmers share price
• 2 ASX gold shares backed by experts for growth
• Morgans names 3 ASX 200 shares to buy now

Motley Fool contributor Leigh Gant has positions in Jumbo Interactive. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Jumbo Interactive. The Motley Fool Australia has recommended Jumbo Interactive. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Wesfarmers Ltd (ASX: WES) share price has delivered a pleasing performance over the years, rising by around 35% in the last five years, as the chart below shows. In February – before the Iran war – the Wesfarmers share price was up 57% over five years.

The company is best-known as the owner of Kmart, Bunnings and Officeworks, which are three of the leading retailers in Australia.

Wesfarmers may well be able to capture more market share in the current market because its core businesses of Bunnings and Kmart are leaders on value and can help with any pressure on household budgets in the coming period.

The Wesfarmers share price has dropped back recently, so it’s interesting to see what analysts think of the company’s future.

Expert projections for the retailer

According to CMC Invest, of eight analyst ratings within the last three months, there has been one buy rating, four hold ratings and three sell ratings.

The average price target of those eight ratings is $78.68, suggesting a possible rise of around 5% from where it is at the time of rating. A price target tells us where analysts think the share price will be in 12 months from the time of that investment call.

The most optimistic price target of those eight recent ratings is $92.34. That suggests a potential rise of 23% from where it is at the time of writing.

But, there are also negative views on where the Wesfarmers share price could go. The most pessimistic price target is $69.26, implying a decline of more than 7% in the year ahead.

So, while there is a spread of confidence, on average analysts are still leading towards positive capital growth in the year ahead (plus dividend payments).

Why is this a good time to consider the Wesfarmers share price?

The company has great tailwinds to deliver earnings growth in the long-term, with excellent returns on capital (ROC) across Kmart Group and Bunnings Group and expansion in areas like healthcare, lithium mining and international sales of Anko products.

Wesfarmers is expected to generate earnings per share (EPS) of $2.50 in FY26, putting it at 30x FY26’s estimated earnings, according to CMC Invest.

The business is projected to see EPS growth of close to 10% in FY27 to $2.74. EPS is forecast to rise again in FY28 to $2.98 in FY28.That means the current Wesfarmers share price is valued at 25x FY28’s estimated earnings, according to the projection on CMC Invest.

The post Here are the latest growth forecasts for the Wesfarmers share price appeared first on The Motley Fool Australia.

More reading

• Stagflation: How to position an ASX stock portfolio
• Buy, hold, or sell? Coles, Wesfarmers, BHP shares
• NextDC vs Wesfarmers shares: Which is a buy?
• How many Wesfarmers shares do I need to buy for $1,000 of annual passive income?
• 3 ASX dividend shares raising dividends like clockwork

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

S&P/ASX All Ords Gold Index (ASX: XGD) shares are barely in the green for 2026 as the Iran war continues to impact the safe-haven asset.

The gold price is trading at US$4,782 per ounce, up 11.5% in the year to date, following a major sell-off in the first few weeks of the war.

ASX investors sold down their gold shares and ETFs last month, but experts say there are still good buys in the market.

In a newsletter this week, Blackwattle Mid Cap Quality Fund portfolio managers Tim Riordan and Michael Teran said:

… the structural drivers for gold remain firmly intact, with Central Banks continuing to diversify reserves away from US Treasuries and geopolitical uncertainty providing an ongoing floor for demand.

Sprott Managing Partner, Paul Wong, said the gold price drop last month represented a rush to liquidity, not an end to gold’s bull run.

Wong added: “Structural pressures are building toward renewed monetary support—historically a powerful catalyst for gold.”

With that in mind, here are two ASX 200 gold shares that experts are backing for long-term growth.

Newmont Corporation CDI (ASX: NEM)

Newmont Corporation CDI shares dropped 14% in March but have recovered 5% in April so far to $159.07 per share.

Riordan and Teran said Newmont Corporation is the largest, lowest-cost, and most diversified gold miner in the world.

We continue to see material upside for NEM as an ‘enduring high-quality’ business and view NEM as the highest quality gold miner globally.

We expect NEM to execute on numerous multi-year internal levers to maintain and improve business quality, including organic production expansion, operating cost reductions, a net cash balance sheet and further capital returns.

This should allow NEM to deliver a higher quality, lower cost and increasingly diversified asset base through 2026 and 2027, and the March share price weakness represents a highly attractive entry point for a long-term compounder.

Evolution Mining Ltd (ASX: EVN)

The Evolution share price fell 24% in March, and has recovered 8% in April to $13.60 per share.

Morgans upgraded its rating on this ASX 200 gold mining share from hold to accumulate last week.

The upgraded rating followed Evolution’s March quarter report and a separate exploration update.

However, the broker reduced its 12-month price target from $17.16 to $16.10.

This still implies a potential near-20% upside ahead.

Morgans said:

Gold production met expectations despite weather and maintenance impacts, with weaker copper and higher AISC driven by Ernest Henry disruptions.

Strong 4Q26 expected to achieve FY26 guidance. Achieves net cash position with an updated capital management policy expected at its FY26 result in August.

We upgrade to an ACCUMULATE (from HOLD) following recent weakness across the gold sector which we believe has uncovered value in a high-quality name, despite a strong share price reaction post the result.

The post 2 ASX gold shares backed by experts for growth appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• 3 reasons to buy this ASX gold stock in April
• Newmont shares slip as Cadia update puts investors on alert

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.

If you are in the market for some new portfolio additions, then it could be worth hearing what Morgans is saying about the shares in this article.

That’s because the broker recently named all three ASX 200 shares as buys. Here’s what you need to know:

Magellan Financial Group Ltd (ASX: MFG)

This fund manager could be worth considering according to the broker. It believes the merger with Barrenjoey is a game-changer and provides “additional pathways for growth.”

Morgans has put a buy rating and $11.99 price target on Magellan’s shares. It said:

MFG has given an end-to-March 2026 quarterly FUM update. FUM (A$37.5bn) was down 6% for the quarter due to a combination of outflows across most funds and market movements. Overall this was a softer quarter at the headline level, albeit some impacts from market volatility are unsurprising. We downgrade our MFG FY26F/FY27F EPS by -1%/-8% due to slightly weaker FUM assumptions and also applying more conservatism to our future Barrenjoey earnings forecasts.

Our PT falls to A$11.99 (from A$12.43). Whilst MFG’s Investment Management performance remains patchy, we think the Barrenjoey merger fundamentally changes MFG’s overall outlook, strengthening the business and providing additional pathways for growth. MFG also retains a strong balance sheet (~A$650m of liquidity, post deal). BUY maintained.

Nufarm Ltd (ASX: NUF)

Another ASX 200 share that has been given the thumbs up is agricultural chemicals company Nufarm.

In response to a better-than-expected performance in FY 2026, the broker put a buy rating and $4.05 price target on its shares. It said:

Pleasingly, NUF’s 1H26 EBITDA guidance was slightly higher than expected and it has had a strong 1H. Importantly, its leverage guidance is materially better than expected. Initial outlook comments for the 2H26 were positive and a new A$50m cost out program has been announced.

Given the appreciation in active ingredient and fish oil prices, NUF’s previous FY26 guidance could prove to be conservative. NUF is our key pick of the ag and chemical sector. The company is materially undervalued and we reiterate our BUY rating with a new price target of A$4.05.

Sigma Healthcare Ltd (ASX: SIG)

Morgans is also bullish on Chemist Warehouse owner Sigma Healthcare.

Due to its strong growth outlook and recent share price weakness, the broker has put a buy rating and $3.36 price target on the ASX 200 share. It explains:

SIG is a leading healthcare wholesaler, distributor and retail pharmacy franchisor with operations in Australia, NZ, Ireland and the UAE. We are forecasting ~20% EBIT growth p.a. over the next few years driven by strong LFL sales growth, store rollout (domestically and internationally), operating efficiencies and $100m p.a. synergies by FY29. Given the share price weakness, we have upgraded our recommendation to BUY (from ACCUMULATE) with an unchanged target price of $3.36 and 26% upside.

The post Morgans names 3 ASX 200 shares to buy now appeared first on The Motley Fool Australia.

More reading

• 2 top ASX shares to buy and hold for the next decade
• I think these are some of the best ASX 200 shares to buy now
• If I had $5,000 to invest in ASX 200 shares today, here’s what I’d buy
• Buy, hold, sell: Evolution Mining, Netwealth, and Nufarm shares
• Why this ASX 200 share could be heading 40%+ higher

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 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 S&P/ASX 200 Index (ASX: XJO) has jumped 14.5% higher over the past 12 months, but there is one stock strongly outpacing the index. Better still, it’s tipped to keep going.

Codan Ltd (ASX: CDA) shares ended the day 4.5% higher on Tuesday afternoon, at $36.47 a piece. The latest increase brings the ASX 200 stock 26% higher over the year-to-date and nearly 150% higher over the past 12 months.

Here’s why the ASX 200 stock is soaring

Codan develops electronics solutions for government, military, corporate, and consumer markets globally. The company provides products and services in communications, metal detection, and mining technology. 

Essentially its business is split into two divisions: communications and metal detection.

Like other defence-related companies, Codan shares have risen higher this year off the back of rising geopolitical tension and an uptick in demand for defence technology systems. Communication systems are one of the first things which the military upgrades because things like radios and communication systems are critical in conflict situations.

Elsewhere, Codan’s metal detection business (Minelab) has been well supported by strong gold detector sales. Its gold detectors are typically used by small-scale miners and are particularly popular in remote parts of Africa. The company also has solid demand across recreational markets globally. A lot of the demand for metal detectors has followed booming gold prices. Gold rush activity typically sees more individuals and smaller players try their hand at hunting for gold.

It’s not just defence and gold sector tailwinds pushing the Codan price higher though.

The ASX 200 stock’s strong earnings growth and robust financial performance has attracted a flurry of interest in its shares over the past 12 months.

Codan’s standout results point to long-term growth

The company revealed a huge surge in earnings when it posted its first-half FY26 results in February. 

Codan announced a 29% increase in group revenue, a 55% hike in NPAT and a 52% rise in EBIT. They’re some impressive numbers.

Most importantly, company growth was attributed to strong growth in both of its business segments. 

Codan’s communications division experienced revenue growth of 19% and maintained profit margins despite temporary headwinds in the Zetron Americas business.

It’s metal detection (Minelab) business delivered a standout half. Its revenue increased 46% and segment profit up 86% thanks to gold detector demand in West Africa and robust sales globally.

The company also said it will continue to invest in engineering and new product development. This will help to maintain its competitive edge and diversify its earnings base. 

What upside do analysts expect from Codan shares?

Market Index data shows that three brokers have a buy rating on Codan shares and another two have a hold rating. 

But what they can agree on is that there will be an upside ahead.

The average target price for Codan shares over the next 12 months is $39.68. This implies more than 10% upside for investors. 

It isn’t the same level of growth we’ve seen over the past year, but it suggests that there is plenty more to come out of the electronics solutions business.

The post This ASX 200 stock has jumped 149% in a year, and brokers tip more upside to come appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 5 ASX 200 shares I’d buy as the share market rebounds
• 3 of the best ASX 200 shares to buy this month with $6,000
• 3 strong ASX growth shares I want to buy in April

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.

If you have a high risk tolerance and want some exposure to the small side of the market, then read on.

That’s because Morgans has just put buy ratings on two small-cap ASX shares. Here’s what it is recommending to clients:

Many Peaks Minerals Ltd (ASX: MPK)

Morgans thinks this gold developer could be a small-cap ASX share to buy now.

Following the release of a stronger than expected mineral resource estimate (MRE) for the Ferke Gold Project, it has reaffirmed its speculative buy rating with an increased price target of $2.48 (from $1.92). The broker commented:

MPK delivered a maiden MRE of 26.7Mt at 1.54g/t Au for 1.32Moz at the Ferke Gold Project, a material beat vs our estimate of 1Moz at 1.1g/t Au. Importantly, 1.1Moz of the MRE sits within the Measured and Indicated category, forming the basis of our production scenario. We expect 80-90% of this to convert to reserve given the ideal geometry of the resource and its amenability to mining.

We see further upside as assumptions are refined (geotechnical inputs, process recoveries and additional drilling) as the project progresses toward PFS. We maintain our SPECULATIVE BUY recommendation and lift our price target to A$2.48ps (previously A$1.92ps).

SKS Technologies Group Ltd (ASX: SKS)

Another small-cap ASX share that is highly rated by Morgans is SKS Technologies. It designs, supplies and installs audio visual, electrical, and communication products and services.

The broker likes the company due to its exposure to the booming data centre (DC) market. It believes SKS is well-placed to deliver strong growth through to at least FY 2028.

In light of this, it has retained its accumulate rating on its shares with a revised price target of $6.70. Commenting on the small cap, Morgans said:

SKS’s recent contract expansion with its major customer has bolstered the group’s outlook, adding a further $80m of work, and broadening its pipeline of FY27 work in hand to $240m. DC sector demand remains robust, with various operators continuing to expand their capex/build activity over the coming years, and we continue to see a significant pipeline of DC build opportunity into FY27-28+.

We upgrade our forecasts by ~13+14% in FY27-28F, reflecting our expectations for SKS to continue building on strong forward levels of work in hand / BAU run-rate into FY27+. We retain our ACCUMULATE rating with a revised PT of $6.70.

The post Morgans gives its verdict on these small-cap ASX shares appeared first on The Motley Fool Australia.

More reading

• Up nearly 300% in a year, this ASX stock just hit another record high
• Morgans just placed buy ratings on these ASX materials stocks

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

NextDC Ltd (ASX: NXT) shares have been frozen all week. Shares closed last Friday trading for $14.12 each and have remained there through to market close on Tuesday.

But that’s going to change when the market opens on Wednesday.

As you may be aware, shares in the S&P/ASX 200 Index (ASX: XJO) data centre operator and developer entered a trading halt before market open on Monday.

Management requested the pause in trading prior to releasing the results of institutional equity raising.

That update should be out before the ASX opens this morning. Investors will then learn more details regarding how much capital NextDC is raising and how it plans to use the new funds.

Which brings us back to our headline question…

Should you buy NextDC shares today?

Last week, before NextDC shares entered a trading halt, Red Leaf Securities’ John Athanasiou released a bullish note on the ASX 200 tech stock (courtesy of The Bull).

“Australia’s leading data centre operator provides connectivity and colocation services to cloud, enterprise and government clients across Australia and the Asia Pacific,” he said.

Citing the first reason he’s optimistic on the company’s outlook, Athanasiou said, “Its network of certified facilities underpins critical digital infrastructure amid surging demand for cloud, artificial intelligence and high-performance computing.”

As for the second reason you might want to buy NextDC shares today, he added, “NextDC recently launched a $1 billion hybrid securities offer to fund expansion. A strong forward order book reflects institutional confidence in its long-term growth.”

The company announced the hybrid securities deal on 7 April. NextDC CEO Craig Scroggie said the deal “represents another step toward NextDC delivering on a material step-change in the scale of our business”.

Rounding off with the third reason the stock looks well placed to outperform, Athanasiou concluded:

The company continues to build new facilities and sign strategic partnerships, positioning it to capture structural tailwinds in digital transformation and infrastructure demand.

What else has been happening with the ASX 200 tech stock this week?

Although NextDC shares have been frozen since Friday, it’s been a busy week for the data centre company.

On Monday, the company released an operational update revealing strong growth metrics over the three months to 31 March.

Among the highlights likely to pique investor interest, NextDC a 60% increase in its contracted utilisation to 667 megawatts (MW). The company revealed that its forward order book had grown by 83% to 544MW.

And NextDC reaffirmed the its full year FY 2026 revenue and underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance to be in the range of $230 million to $240 million.

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

More reading

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• NextDC vs Wesfarmers shares: Which is a buy?
• Leading brokers name 3 ASX shares to buy today
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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.

I believe some of the best investment opportunities tend to show up after a sell-off.

When quality companies fall a long way from their highs, the starting point changes. That is where I start paying closer attention.

Here are five oversold ASX shares I would be looking at before the end of April.

CSL Ltd (ASX: CSL)

CSL is down more than 50% from its highs, which is a big move for a biotech company of this quality.

The business itself still has strong foundations. CSL Behring remains a leader in plasma therapies, and demand for those treatments continues to build over time.

What has changed is the price. After such a large pullback, I think CSL shares are starting to look much more interesting for long-term investors. If the company can rebuild momentum, this could be one of those periods that looks like an opportunity in hindsight.

Breville Group Ltd (ASX: BRG)

Breville has pulled back around 20%, which has taken some pressure out of its valuation.

This is a business that has successfully expanded outside Australia, and that is still driving its growth today. Its products continue to resonate in key markets like the US, which supports that trend.

At a lower share price, I think the setup looks more balanced. It still has room to grow, but you are no longer paying the same premium as before.

Xero Ltd (ASX: XRO)

Xero has fallen more than 50% from its highs alongside the broader sell-off in software stocks due to artificial intelligence (AI) disruption concerns.

The long-term shift toward cloud-based accounting is still playing out, and Xero remains one of the key platforms in that space.

And while AI will always be a risk, I think those concerns may be overstated and Xero still has many years of growth ahead. And after such a sharp decline, I think the risk-reward looks more favourable than it has in a long time.

WiseTech Global Ltd (ASX: WTC)

WiseTech is down more than 60% from its peak, which is a significant reset.

Its CargoWise platform is already embedded in global logistics, which gives it a strong position in how goods move around the world.

At this level, I think the sell-off is worth paying attention to. This is still a business with a large runway, but it is now being priced very differently to where it was at its peak.

Catapult Sports Ltd (ASX: CAT)

Catapult has pulled back close to 60% from its highs despite continuing to deliver strong results.

The sports technology business has been shifting toward a subscription-based model, which should support more consistent revenue over time.

I think the interesting part here is how the company is evolving. As data becomes more important in sport, Catapult has a chance to deepen its role with teams rather than just expand its customer base.

At this much lower share price, I think it is one ASX share that could deliver strong returns if it continues to execute successfully.

Foolish takeaway

A big pullback does not guarantee a good investment, but it can change the starting point.

These ASX shares all have strong growth potential and are now trading well below their previous highs. That is why I think they are worth a closer look before the end of April.

The post 5 oversold ASX shares to buy before the end of April appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Catapult Sports, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Catapult Sports, WiseTech Global, and Xero. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.