Tag: Stock pick

When share prices fall 20% to 50% in a year, it’s easy to assume something is fundamentally broken. Sometimes that’s true. But other times, the market overshoots, pricing in far more bad news than actually eventuates.

Right now, I think there are a few ASX shares sitting firmly in that second camp. They’ve been hit by a mix of cyclical headwinds, short-term disappointments, and weak sentiment, but their long-term investment cases remain intact.

These are three cheap ASX shares I think are strong buys this month.

Cochlear Ltd (ASX: COH)

Cochlear is not a stock that often looks cheap, which is why its share price decline over the past year stands out.

The weakness has been driven by slower-than-expected growth in its core hearing implant business, cost pressures, and cautious sentiment around margins. None of that is ideal, but it’s also not structural.

Cochlear remains the global leader in implantable hearing solutions, operating in a market with high barriers to entry and long product lifecycles. Its installed base continues to grow, supporting recurring revenue from upgrades, accessories, and services over time.

Demand for hearing solutions is also supported by powerful demographic tailwinds. Ageing populations don’t disappear just because growth is softer for a year or two. With expectations now far lower than they were previously, I think the risk-reward has become much more attractive.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine Estates has been one of the hardest-hit large-cap consumer names on the ASX, with its share price down sharply over the past 12 months.

The reasons are well understood. Softer demand for premium wine, cost-of-living pressures, and challenges across key markets have weighed heavily on earnings and sentiment. On top of that, the company has been working through portfolio changes and operational resets, which has created near-term uncertainty.

What interests me now is how much pessimism is already reflected in the share price. Treasury Wine still owns a portfolio of globally recognised brands, generates solid cash flow through the cycle, and is expected to see dividends recover as conditions normalise.

This looks like a classic case of a quality consumer business being priced for prolonged weakness. If demand stabilises even modestly, the upside with this ASX share could surprise.

James Hardie Industries Plc (ASX: JHX)

James Hardie Industries is another example of a high-quality ASX share caught in a cyclical downturn.

The housing slowdown in the US and other key markets has pressured volumes and margins, which has flowed directly into the share price. As a result, the stock is now trading well below where it sat a year ago.

However, James Hardie’s competitive position has not changed. It remains the market leader in fibre cement products, with strong brand recognition, pricing power, and exposure to long-term renovation and repair demand, not just new builds.

Housing cycles turn. When they do, businesses with scale and strong distribution networks tend to recover faster and more profitably than smaller competitors. That’s why I see current weakness as an opportunity rather than a reason to stay away.

Foolish takeaway

Cheap doesn’t always mean attractive, but when quality businesses fall 20% to 50% in a year, it’s worth paying attention.

Cochlear, Treasury Wine Estates, and James Hardie have all been hit by short-term headwinds and negative sentiment. In my view, the market has become too focused on what’s gone wrong recently and not focused enough on what these businesses can earn over the long run.

For investors willing to look beyond the next quarter or two, I think these cheap ASX shares offer compelling opportunities this month.

The post I think these cheap ASX shares are strong buys this month appeared first on The Motley Fool Australia.

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• Earnings preview: How do experts rate these blue-chip ASX stocks reporting this week?
• Why these battered ASX shares deserve a second look
• 2 ASX shares that could be overdue for a new year jump

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

Orica Ltd (ASX: ORI) has been one of the many ASX materials stocks charging higher in the last 12 months. 

The company is a leading global manufacturer and supplier of explosives and blasting systems, primarily to the mining industry. 

It is the world’s number one supplier of commercial explosives with operations across more than 100 countries and an approximate market share of around 28%.

Its share price has risen by 50% in the last 12 months. 

This helped it qualify as one of the 10 best ASX 200 large-cap shares of 2025. 

For context, the S&P/ASX 200 Index (ASX: XJO) is up 4.5% in that same period. 

It seems there could be more growth ahead for this ASX materials stock. 

A new report from Bell Potter released yesterday included a price target increase, along with an unchanged buy recommendation. 

Here is what the broker had to say. 

Market dynamics still favourable 

According to yesterday’s report, mining activity across the company’s two largest Blasting Solutions geographies (Australia Pacific & Asia and North America) continue to exhibit positive momentum in FY26TD.

Bell Potter said in Australia, the iron ore majors delivered record production in the Dec’ 25 quarter. 

In addition, the rapid appreciation of spodumene concentrate prices has prompted producers to assess plans to reactivate idled production capacity. 

Looking ahead, the Australian government projects iron ore and gold production CAGR of 3% and 12% over FY25-27, respectively.

Based on estimates, mining-related activity in North America was about 5% higher in Oct – Nov 2025 compared to Oct – Nov 2024.

In Canada, production of copper concentrate, gold and coal grew 13%, 8% and 1% YoY in Oct-Nov’25.

In summary, Bell Potter believes this ASX materials stock is benefiting from strong momentum across global mining and exploration.

This is being driven by rising production, higher commodity prices, and surging exploration funding – supporting confidence in higher activity levels and making the upgraded mid-teens Digital Solutions EBIT growth target achievable.

Target price rises for the ASX materials stock

Based on this guidance, Bell Potter lifted its price target to $28.50 from $26.00, while EPS forecasts remain unchanged.

The broker retained its buy recommendation. 

From yesterday’s closing price of $26.03, this indicates an approximate upside of 9.49%. 

The broker said EBIT growth is expected to continue on the back of strong mining and exploration conditions, solid operations and product mix. 

We expect EBIT growth momentum to be sustained in the short-to-medium term underpinned by cyclical tailwinds in mining and exploration markets. EBIT growth is expected to be supported by further premium product uptake, robust facility performance across AN and sodium cyanide supply networks and commercial discipline.

The post Is this ASX materials stock still a buy after rising 50% in the last year? appeared first on The Motley Fool Australia.

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• I think these cheap ASX shares are strong buys this month

Motley Fool contributor Aaron Bell 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.

Yesterday, Sims Ltd (ASX: SGM) announced it is moving to consolidate its Houston operations, agreeing to acquire Tri Coastal Trading assets for US$66.5 million and planning to sell its Mayo Shell property.

What did Sims report?

• Agreement to acquire Tri Coastal Trading (TCT) assets for US$66.5 million
• Expected proceeds from Mayo Shell property sale estimated at over US$100 million
• EBITDA multiple for the acquisition projected at less than 4x post synergies
• Combined Return on Invested Capital (ROIC) for Houston operations expected in excess of 20% post synergies
• Total Houston EBITDA (post-integration and synergies) forecast to exceed US$25 million

What else do investors need to know?

Sims’ acquisition includes the novation of TCT’s Enstructure LLC service agreement, securing exclusive access to a deep-sea dock and harbourside land in Houston’s Galena Park industrial area for the next 18 years, with options for further extension. This move will allow Sims to consolidate its operations, reduce operating and administrative costs, and boost logistics capabilities for sourcing and shipping scrap metal both domestically and overseas.

The planned sale of surplus land, including Mayo Shell, forms part of ongoing portfolio optimisation and is expected to recycle capital into higher-return opportunities. The Mayo Shell transaction remains subject to customary conditions and due diligence, with closure anticipated in the coming months.

What did Sims management say?

CEO and Managing Director Stephen Mikkelsen said:

We have been looking for a solution to our Houston business for some time. It is a big market. Houston is the fourth largest city in the USA and Texas’s GDP is US$2.5 trillion, the second largest in the USA. It also operates heavy industries such as oil and energy that have high metal intensity. While we have made significant progress in turning our Houston business around over the last two years, its ultimate potential was always hampered by the lack of a deep-sea dock, which would have only been achievable with significant capital expenditure at our Mayo Shell site.

TCT is an ideal solution to this problem. We free up all our Houston land for sale, avoid significant capital expenditure on the current facilities, significantly reduce our cost per tonne, and meaningfully grow our EBITDA, EBIT and ROIC.

What’s next for Sims?

The company will focus on integrating TCT’s operations, consolidating Houston activities at the Enstructure facility and realising synergies to improve earnings. Sims also plans to complete the sale of Mayo Shell and market additional Houston land parcels over the next 18 months.

Management reaffirmed ongoing efforts to optimise the asset base and recycle capital into higher-return investments, positioning Sims Limited to deliver sustained value for shareholders.

Sims share price snapshot

Over the past 12 months, Sims shares have risen 50%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Sims consolidates Houston operations with Tri Coastal Trading acquisition appeared first on The Motley Fool Australia.

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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.

Whitehaven Coal Ltd (ASX: WHC) shares have enjoyed sector tailwinds to start 2026. 

The Australian coal mining company has seen its share price rise 55% in the last 12 months. 

That includes a gain of 17% already in 2026 alone. 

Whitehaven Coal develops and operates coal mines in Queensland and New South Wales. The company produces metallurgical and thermal coal. It operates mines, including open-cut and underground, located in the Gunnedah Coal Basin in New South Wales.

It has benefited from a surge in global commodity prices as the Australian energy sector has steamed ahead so far this year.

However after such a rapid rise, investors may be considering selling to cash in profits. 

A new report from Ord Minnett has provided updated guidance. 

Here is what the wealth and investment services firm had to say. 

Commodity tailwinds picking up

In a note out of Ord Minnett yesterday, it said Whitehaven Coal delivered a strong December-quarter result. 

This included managed production of 8.7 million tonnes (Mt). 

This exceeded Ord Minnett’s expectations by approximately 10%. 

Additionally, net debt declined faster than expected to $700 million. This was 6% below estimates. 

Ord Minnett said the improving outlook for metallurgical coal provides a significant tailwind, and it forecasts a strong underlying free cash flow (FCF) outlook for CY26 of $590 million for an 8% yield. 

This is based on a commodity price forecast of US$210 a tonne for premium low-volatile hard coking coal (PLV-HCC) in CY26. 

Price target adjustment

Whitehaven Coal shares closed yesterday at $9.16 after a 3% gain. 

Ord Minnett said after incorporating the December-quarter result, its target price increased 4% to $9.90. 

From yesterday’s closing price, this indicates a further upside of approximately 8%. 

We reaffirm our Accumulate recommendation given the outlook for underlying FCF and shareholder returns, although we note Whitehaven is starting to screen less attractively against smaller peers that have greater metallurgical coal exposure.

‍What are other experts saying about Whitehaven Coal shares?

Sentiment appears mixed on Whitehaven Coal shares. 

Late last month, the team at Bell Potter placed a sell recommendation on the coal miner. 

This was along with a price target of $8.40, which is slightly below current levels. 

Bell Potter said near-term output from Queensland is expected to be disrupted by heavy rainfall and Cyclone Koji. 

The broker also warned metallurgical coal prices could ease from current elevated levels.

Elsewhere, target prices are hovering between $8.40 and $9.90, with the most common rating being a hold. 

The post Is there any more upside for Whitehaven Coal shares according to Ord Minnett? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
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• Why it’s time to sell Whitehaven Coal shares – Expert
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Motley Fool contributor Aaron Bell 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.

Exchange traded funds (ETFs) continue to grow in popularity with Australians, with billions being poured into them each year.

It isn’t hard to see why they are so popular. These financial assets make investing easy and allow investors to gain exposure to areas of the market that would ordinarily be difficult to achieve.

But which ones could be worth considering if you had $20,000 to invest in the share market this month? Let’s take a look at five funds that could at least be deserving of a spot on your watchlist.

Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The BetaShares Global Cybersecurity ETF gives investors direct exposure to the stocks leading the charge in cybersecurity. Its portfolio includes major players such as CrowdStrike (NASDAQ: CRWD), Palo Alto Networks (NASDAQ: PANW), and Fortinet (NASDAQ: FTNT), which are benefiting from surging demand for cloud security, AI-driven threat detection, and enterprise protection. With cyberattacks only getting more prevalent, this ASX ETF taps into a long-duration megatrend.

Global X Battery Tech & Lithium ETF (ASX: ACDC)

Another ASX ETF that could be worth a closer look is the Global X Battery Tech & Lithium ETF. It provides investors with easy exposure to the leading companies in battery materials, electric vehicles, and renewable energy storage. Its holdings include Tesla Inc (NASDAQ: TSLA), Albemarle Corp (NYSE: ALB), and Contemporary Amperex Technology Co Ltd (CATL). It was recently recommended by analysts at Global X.

Betashares S&P/ASX Australian Technology ETF (ASX: ATEC)

A third ASX ETF to consider is the Betashares S&P/ASX Australian Technology ETF. It brings together some of the most innovative stocks on the ASX, tracking the performance of the S&P/ASX All Technology Index. Its holdings include WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO), and TechnologyOne Ltd (ASX: TNE). These businesses are expanding globally while generating recurring revenue from software and digital services. Following a sharp decline in recent months, now could be an opportune time to consider a position. This fund was recently recommended by the fund manager.

Vanguard Australian Shares Index ETF (ASX: VAS)

If you want a simple way to invest in Australian shares, then the Vanguard Australian Shares Index ETF could be the way to do it. This fund tracks the 300 largest stocks on the ASX, including Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and CSL Ltd (ASX: CSL). It could work well as a core portfolio holding for those wanting long-term stability, broad diversification, and a source of income.

Betashares India Quality ETF (ASX: IIND)

Lastly, the Betashares India Quality ETF could be worth considering. It offers an easy way for Aussie investors to tap into India’s economy, which is one of the fastest growing in the world. This ASX ETF invests in 30 of India’s highest-quality stocks. Key holdings include Infosys (NYSE: INFY), Hindustan Unilever, and ICICI Bank. With India expected to become the world’s third-largest economy by 2030, this fund gives investors a foothold in a market driven by a young population, rapid urbanisation, and surging middle-class spending. It was also recently recommended by analysts at Betashares.

The post 5 ASX ETFs to buy with $20,000 in February appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL, Technology One, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF, CSL, CrowdStrike, Fortinet, Technology One, Tesla, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Palo Alto Networks. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended BHP Group, CSL, CrowdStrike, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are looking for small-cap ASX shares to buy, then read on.

Listed below are two that experts are tipping as buys and one that they believe investors should be selling, courtesy of The Bull.

Here’s what they are recommending:

4DMedical Ltd (ASX: 4DX)

The team at Ord Minnett thinks that respiratory imaging technology company 4DMedical is a small-cap ASX share to sell now.

However, this isn’t due to a lack of quality. The recommendation is based on valuation grounds after a very strong rise over the past 12 months. It explains:

4DX enjoyed a positive start to calendar year 2026 after the company announced UC San Diego Health had adopted its CT:VQ product. Also, the company completed a $150 million institutional placement to primarily accelerate the commercialisation of CT:VQ. The share price has risen from 32 cents on June 2, 2025 to trade at $3.16 on February 5, 2026. In our view, there’s a growing disconnect between 4DX’s valuation and the uncertainty around near term CT:VQ revenue generation. While we remain positive on 4DX’s technology, we pull back to a sell recommendation on valuation grounds.

Legacy Minerals Holdings Ltd (ASX: LGM)

Over at Alto Capital, analysts think this mineral exploration company is a buy.

It notes that the company is due to release its scoping study for Mt Carrington in the coming months, which could be a positive catalyst for its shares. Alto Capital said:

This exploration company focuses on gold, silver and base metals targets in New South Wales, with its flagship Mt Carrington project located in the Lachlan Fold Belt. Recent funding has strengthened the balance sheet and supports ongoing drilling across priority targets. The company is also expected to release a revised scoping study for Mt Carrington in March, providing a key near term catalyst. While early stage exploration carries inherent geological risk, any success at Mt Carrington would be significant given LGM’s modest market capitalisation.

Praemium Ltd (ASX: PPS)

This investment platform provider’s shares could be a buy according to analysts at Ord Minnett.

It has been pleased with its performance in FY 2026 and believes the trend can continue thanks to its improving outlook. Ord Minnett explains:

PPS provides an investment platform to enable financial advisers to manage client accounts. The company’s second quarter update in fiscal year 2026 revealed some encouraging trends, even if progress was uneven across its products. Improving inflows to the Powerwrap platform was a highlight, while Praemium SMA was impacted by a client transition. Overall, net inflows were solid and platform funds under administration of $32.5 billion were up 8 per cent and in line with expectations. We still see an improving outlook for PPS.

The post Experts name 2 small-cap ASX shares to buy and one to sell appeared first on The Motley Fool Australia.

More reading

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• These were the 10 most traded Australian shares last week
• Why this incredible ASX tech stock could be ‘set to conquer’
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Praemium. 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 post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares worth buying after February’s sell-off
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended CAR Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Argo Investments Ltd (ASX: ARG) is one of the most popular listed investment companies (LICs) on the ASX. It is also one of the oldest, having first offered Argo shares to the public in 1946.

Ever since, Argo has painstakingly built up a reputation as a conservative steward of investor capital, investing its shareholders’ money in blue-chip ASX investments.

With many shareholders across the country entrusting Argo with their capital, there would have been more than a few eyes on this LIC’s latest financial results, unveiled this morning.

As we covered at the time, Argo had some decent numbers to show off for its half year ending 31 December 2025.

The company brought in a profit of $130.8 million, up 7.9% from the $121.2 million recorded for the same period in 2024. In some good news for investors, this enabled Argo to reduce its management expense ratio from 0.15% per annum to 0.14%.

Investors are reacting positively this session, with the Argo share price currently up a healthy 1.44% to $9.15 (at the time of writing).

But let’s talk about dividends.

Argo shares unveil record interim dividend

One of the most exciting bits of news in today’s earnings was undoubtedly the new dividend that was revealed. Argo has elected to fund an interim dividend worth 18.5 cents per share for the first half of FY2026. As is Argo’s habit, this dividend will come with full franking credits attached.

This 18.5-cent payout will be the largest interim dividend Argo has ever paid, exceeding last year’s 17 cents per share interim dividend by 8.8%.

Together with last September’s final dividend, worth 20 cents per share, this will take Argo’s 12-month dividend total to 38.5 cents per share.

This latest interim dividend from Argo will be sent to shareholders on 20 March next month. For investors who don’t yet own Argo shares but might wish to get a slice of this action, the ex-dividend date for this payout has been set for this Friday, 13 February. That means investors will need to have bought shares by market close on Thursday if they wish to bag a payment.

Argo is also offering a dividend reinvestment plan (DRP). If shareholders so choose, they can opt to receive this dividend as additional Argo shares rather than cash. The cutoff to nominate for the DRP is 17 February next week.

Argo shares currently trade on a trailing dividend yield of 4.04%. However, this new dividend will give the company a forward dividend yield of 4.21%.

The post Own Argo shares? A record dividend has just been announced! appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Sebastian Bowen 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.

February delivered a sharp reality check for ASX investors. A renewed tech-led sell-off dragged several high-quality growth names down toward their 52-week lows, despite little change to their long-term outlooks.

These pullbacks can present rare buying opportunities for the long term.

Here are 3 ASX 200 shares that look increasingly attractive at current levels.

CAR Group Ltd (ASX: CAR)

CAR Group shares are bouncing today, up 7.23% to $26.25. Despite the rebound, the stock remains around 5% lower over the past week following heavy selling earlier this month.

That pullback has pushed CAR Group back toward its 52-week lows, despite a strong first-half performance. As outlined in the company’s FY26 half-year result, CAR Group delivered solid revenue and earnings growth, with management reaffirming its full-year guidance.

From a technical perspective, the chart shows CAR Group recently dipped toward the lower Bollinger Band, a level that often signals short-term exhaustion selling. The relative strength index (RSI) also moved into oversold territory during the wider market sell-off, pointing to market-driven weakness rather than company-specific issues.

CAR Group continues to hold dominant positions across carsales, Trader Interactive, and its global classifieds network. With strong cash generation and clear pricing power, the recent pullback may be giving long-term investors a chance to buy a high-quality business at a more reasonable price.

Xero Ltd (ASX: XRO)

Xero shares have been hit hard in recent sessions. The stock is up 1.17% today to $82.72, but remains almost 12% lower than this time last week.

That decline has taken Xero to levels not seen since early 2023, despite management recently highlighting long-term growth opportunities in artificial intelligence, automation, and the US market.

Technically, Xero looks deeply oversold. The RSI has dropped into the low 20s, historically an area associated with capitulation selling. The price is also hugging the lower Bollinger Band, reinforcing the view that selling pressure may be peaking.

Xero remains a high-quality, recurring revenue software business with strong customer retention. If sentiment stabilises, the current price could prove attractive for long-term investors willing to ride out volatility.

Pro Medicus Ltd (ASX: PME)

Pro Medicus shares are up 1.63% today to $160.20, but the stock is still down about 13% over the past week, putting it near its 52-week low.

This is notable given that Pro Medicus continues to execute exceptionally well operationally. Demand for its Visage imaging platform remains strong, particularly in the US, where contract wins continue to drive long-term earnings visibility.

The recent sell-off appears sentiment-driven, reflecting broader weakness in the technology sector rather than any change to the company’s outlook. The RSI recently slipped into oversold territory, and the price touched the lower end of its trading range, both signals that selling pressure may be easing.

Despite the market correction, Pro Medicus remains one of the highest quality healthcare software businesses on the ASX.

Foolish Takeaway

February’s sell-off has pushed several elite ASX growth stocks back to levels that look appealing.

CAR Group, Xero, and Pro Medicus all retain strong competitive positions and long-term growth drivers. While volatility may persist in the short term, these pullbacks could offer attractive entry points for investors focused on long-term value.

The post 3 ASX 200 shares worth buying after February’s sell-off appeared first on The Motley Fool Australia.

More reading

• Up 10%: Everything you need to know about the new Car Group dividend
• What is happening to these ASX software shares?
• Why Bravura, CAR Group, Pepper Money, and Web Travel shares are storming higher
• This beaten down ASX tech stock just jumped 10%. Here’s why
• Why are ASX 200 tech shares like WiseTech and NextDC going gangbusters on Monday

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’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended CAR Group Ltd and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woolworths Group Ltd (ASX: WOW) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed on Friday trading for $31.45. In afternoon trade on Monday, shares are changing hands for $31.69 apiece, up 0.8%.

For some context, the ASX 200 is up 2% at this same time.

Taking a step back, Woolworths shares have gained 5.7% over the past 12 months, modestly outpacing the 4.8% one-year gains posted by the benchmark index.

And that’s not including the two fully-franked dividends the ASX 200 supermarket paid out over this period. Woolworths stock currently trades on a fully-franked trailing dividend yield of 2.7%.

It’s also worth noting that Woolies shares have gained 2.6% since market close on 2 February, or more than twice the 1.2% gains delivered by the ASX 200.

I bring that up because, as you’re likely aware, at its first meeting of 2026 on 3 February, the RBA announced a 0.25% boost in the official interest rate to 3.85%.

“The board judged that inflation is likely to remain above target for some time and it was appropriate to increase the cash rate target,” the central bank said in making its decision.

So, with Woolies revenue linked to a large number of items consumers simply have to have regardless of inflationary or interest rate pressures, is the ASX 200 stock a good buy today?

Should you buy Woolworths shares today?

Family Financial Solutions’ Jabin Hallihan recently analysed the outlook for the Aussie supermarket giant (courtesy of The Bull).

“The share price of this supermarket giant is slowly recovering after releasing its first quarter sales results in fiscal year 2026 to the market on October 29, 2025,” Hallihan said.

Indeed, Woolworths shares have now gained 17.7% since market close on 28 October.

Investors’ response to those first-quarter sales results marked a pleasing change from the big sell-down that followed the release of the company’s full-year FY 2025 results on 27 August.

Woolworths shares plunged 14.7% on 27 August and continued to slide from there until plumbing multi-year closing lows on 14 October.

Investors sent the stock tumbling 14.7% on the day of the FY 2025 results release after Woolworths reported a 12.6% year-on-year fall in earnings before interest and tax (EBIT) to $2.75 billion. On the bottom line, FY 2025 net profit after tax (NPAT) of $1.39 billion was down 17.1%.

As for those more pleasing Q1 FY 2026 results, Hallihan said:

While Woolworths acknowledged first quarter sales were below aspirations, group sales of $18.5 billion were up 2.7% on the prior corresponding period. Australian food sales were up 2.1%.

Still, despite the appeal of higher interest rates, Hallihan isn’t ready to pull the trigger on Woolworths shares yet, issuing a hold recommendation.

He concluded, “Competitive pricing and cost pressures limit near term upside, but scale advantages remain intact. The company’s defensive characteristics appeal in an economy of higher interest rates.”

The post Are Woolworths shares a good buy today amid rising interest rates? 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 positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.