Tag: Stock pick

Shares in Abacus Storage King (ASX: ASK) have charged more than 10% higher in early trade on Wednesday, and I’ve got a pretty good idea why.

Abacus is a player in the booming self-storage industry in Australia and has grown to be worth $1.83 billion after listing on the ASX in August 2023.

Takeover in the wings

One of the company’s key competitors, and a shareholder in Abacus itself, is National Storage REIT (ASX: NSR), which on Wednesday asked that its shares be placed in a trading halt.

NSR, as reported by The Australian, is currently fielding a potential takeover offer purportedly from Brookfield and GIC, and has asked that its shares be suspended while negotiations continue.

It’s my bet that traders are looking at the potential NSR deal and wondering whether Abacus might be wrapped into a larger play either now or down the track.

Abacus in predators’ rights

Abacus has this year been itself the target of a protracted takeover attempt by Ki Corporation and US-listed firm Public Storage (NYSE: PSA), with the $1.47 per security bid rejected in May.

Abacus said at the time that its net tangible asset value was $1.73 based on an independent valuation, and hence the consortium’s bid was too low.

The consortium’s bid was withdrawn in August, however, not before Ki Corporation ended up with control over 63.5% of the shares in Abacus.

In fact, three shareholders now control almost 95% of Abacus shares, with a company called Abacus Property Group holding 20.9% and Runway Technologies holding 10.2%.

Add to that NSR’s shareholding of just under 5%, which it declared early this year, and you can account for nearly all of the Abacus shares in issue.

With major private equity players running the ruler over NSR, it stands to reason they might do the same for Abacus, and either launch a separate bid or look to take out both entities and combine them into one.

Any such deal could generate significant merger synergies.

Abacus shares were trading 10.4% higher after news of the NSR deal broke, to be changing hands for $1.54.

NSR, meanwhile, asked that its shares be placed in a trading halt pending an announcement “in relation to a potential control transaction for all of NSR’s stapled securities”. The trading halt will remain in place until an announcement is made or until the start of trade on 28 November, the statement to the ASX said.

The post Why are this storage outfit’s shares more than 10% higher today? I’ll tell you my theory appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brookfield, Brookfield Asset Management, and Brookfield Corporation. 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.

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) shares jumped 8% today after the company delivered a strong set of half-year results, marked by double-digit revenue growth, expanding margins, and a sharp uplift in profitability.

At the time of writing, Fisher & Paykel shares were trading at $34.52 on the ASX and up 8% for the day.

The market’s response was in appreciation of the broad-based strength across both the Hospital and Homecare divisions, as well as an upgrade to full-year guidance.

What did Fisher & Paykel report?

Fisher & Paykel posted operating revenue of $1.09 billion for the six months to 30 September 2025, an increase of 14% on the same period last year, or 12% in constant currency. Net profit after tax rose sharply to $213 million, up 39%, reflecting strong demand for the company’s respiratory care products and the benefits of operational efficiencies.

The hospital division was the standout contributor. Revenue in this segment reached $692.2 million, up 17%, driven by broad-based strength across the consumables portfolio and a particularly strong lift in hardware sales, which grew 21% in constant currency. Notably, this momentum came despite a relatively mild respiratory season, underscoring the structural shift toward high-flow therapy and non-invasive ventilation across global hospitals.

Homecare also delivered steady growth, with revenue rising to $395.9 million, an increase of 10%. The company highlighted robust uptake of its newest obstructive sleep apnea (OSA) masks (including the Nova Nasal and Nova Micro), which are now available across several major markets. These products contributed to an 8% constant-currency lift in OSA mask revenue.

Margins improved materially during the half. Gross margin expanded to 63%, up 110 basis points year on year. Even after accounting for the drag from US tariffs on New Zealand-sourced hospital products, margin gains were supported by continuous improvement initiatives and efficiency gains across the business. Operating profit rose 31%, lifting the operating margin to 26.3%.

The board increased the interim dividend to 19 cents per share, fully imputed and payable on 16 December 2025.

Outlook

In addition to the result, FPH upgraded its full-year outlook. At prevailing exchange rates as of 31 October, the company now expects revenue of $2.17 billion to $2.27 billion (previous guidance provided in August was for revenue of $2.15billion to $2.25billion) and net profit of $410 million to $460 million (previous guidance provided in August was $390m to $440m).

Management noted that last year’s Northern Hemisphere winter was unusually strong for respiratory hospitalisations. Should the upcoming season follow a similar pattern, performance is likely to land toward the higher end of guidance.

Despite the improved earnings outlook, the company emphasised that full-year margins will continue to reflect the impact of US tariffs, which are expected to reduce gross margin by around 75 basis points. Even so, Fisher & Paykel believes its operational efficiency initiatives will continue to offset part of this drag.

Foolish bottom line

Fisher & Paykel Healthcare delivered the combination of growth, margin expansion, and upgraded guidance that investors look for in a high-quality medical technology company. The strength in hospital consumables (even during a softer clinical season) suggests the company’s products are becoming increasingly embedded in global care pathways. Homecare continues to provide a solid second engine of growth, supported by an expanding pipeline of OSA mask innovations.

The result reinforces FPH’s long-term ambition to sustainably double its constant-currency revenue every five to six years. With clinical adoption rising, a refreshed product portfolio gaining traction, and operational efficiency improving, the market’s positive reaction reflects growing confidence that the company is back on a clear upward trajectory.

The post Fisher & Paykel shares surge 8% on half-year results appeared first on The Motley Fool Australia.

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Motley Fool contributor Kevin Gandiya has no positions 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.

Electro Optic Systems Holdings Ltd (ASX: EOS) shares are catching the eye on Wednesday.

At the time of writing, the ASX defence stock is up 10% to $4.92.

Why is this ASX defence stock surging?

There have been a couple of reasons why investors have been snapping up EOS shares today.

The first is news that it has completed the transaction to acquire the UK-based Interceptor business from MARSS Group. This transaction was previously announced last week on 19 November 2025.

According to the release, under the transaction, EOS has acquired all Interceptor assets, as well as the specialist engineering team that developed the system.

The total investment of 5.5 million euros (approximately $10 million) has been funded from EOS’ existing cash reserves.

Development of this advanced prototype is expected to take a further 12-24 months before full commercial launch. This is expected to require further investment of up to $10 million over the next three years.

Management believes the acquisition broadens EOS’ counter-drone effector portfolio, extends EOS’ software and AI capabilities, and initiates EOS’ presence in the United Kingdom, which is an important AUKUS partner market.

What else?

The ASX defence stock also revealed that it has settled ASIC’s investigation in relation to certain disclosure matters in 2022. The settlement includes an agreed proposed penalty of $4 million, which requires the approval of the Federal Court.

This settlement relates to an investigation by ASIC in connection with the company’s 2022 revenue guidance.

It highlights that it navigated a challenging environment in 2022 marked by strategic, financial, and operational pressures. But it concedes that it accepts ASIC’s conclusion that it breached its continuous disclosure obligations in the period from 25 July 2022 to 31 October 2022.

ASIC has indicated that it intends to bring separate proceedings against Dr Ben Greene (former CEO and current Chief Innovation Officer of EOS). This is in relation to the same revenue guidance issues. Dr Greene is not a party to this settlement.

EOS’ chair, Garry Hounsell, said:

This outcome represents a constructive resolution with ASIC that allows the business to move forward with clarity, removing the potential of protracted litigation on the matter. We believe this outcome is in the best interests of the Company and its shareholders. Since late 2022, we have made significant progress in strengthening our business and remain committed to best-practice and transparent communication. As we look to the future, we are well-positioned to execute our strategic priorities and deliver long-term value for our shareholders.

The post Why is this ASX defence stock rocketing 10% today? appeared first on The Motley Fool Australia.

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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 Electro Optic Systems. 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 iShares S&P 500 ETF (ASX: IVV) share price (or unit price) has done incredibly well for investors over the long term. In the last five years, it has more than doubled, as the chart below shows. This is a good time to ask whether the US share can perform strongly again in 2026.

The S&P 500 represents 500 of the biggest, most profitable businesses listed in the US. The IVV exchange-traded fund (ETF) is invested in many of the world’s most recognisable companies, such as Nvidia, Apple, Microsoft, Amazon.com, Alphabet (Google), Meta Platforms (Facebook and Instagram), Tesla and Berkshire Hathaway.

Collectively, the huge technology companies have gone on a strong run, with the market excited by what they could achieve in the coming years with AI and other advancements.

While forecasts are not guaranteed to become true, let’s take a look at what one investment bank thinks could happen with the S&P 500 in 2026, which would significantly influence the IVV ETF return.

S&P 500 expert expectations

According to CNBC’s reporting, Deutsche Bank predicts that the S&P 500 could reach 8,000 by the end of 2026, driven by another strong year fueled by artificial intelligence. That implies a possible rise of 18% from its current level. Remember, there’s still more than a whole month of 2025 to go.

Jim Reid, the global head of macro and thematic research at Deutsche Bank Research, wrote earlier this week:

Rapid AI investment and adoption will continue to dominate market sentiment. Given the pace of technological advancement, it is difficult to believe this won’t translate into meaningful productivity gains ahead.

However, the ultimate winners and losers will depend on a complex interplay of evolving factors, many of which may not become apparent until after 2026.

The 8,000 year-end S&P 500 target from our US equity strategist — our most optimistic analyst — is notable given his strong track record.

Is this a good time to buy the IVV ETF?

The index is clearly not cheap – at the end of October 2025, it had a price/earnings (P/E) ratio of 30.6x. But, it’s significantly weighted to big tech businesses that are expected to continue growing earnings at a solid pace for years to come, despite their large size.

The US tariff volatility earlier this year presented a clear opportunity to buy shares, and I expect another bout of volatility at some point in the short to medium term. The share market regularly experiences declines from time to time.

If I had a strategy to regularly invest in the IVV ETF, I’d be happy to invest again today because of the ultra-low fees, high-quality holdings and strong track record. But, I believe there are plenty of ASX share opportunities that could perform stronger over the next five years at the current valuations.

The post How much could the iShares S&P 500 ETF (IVV) share price rise in 2026? appeared first on The Motley Fool Australia.

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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 Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, Tesla, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Technology One Limited (ASX: TNE) shares suffered a dramatic sell-off by investors last week after the company posted its full-year earnings. The ASX tech share reported strong financials and revenue growth, but it appears that investors weren’t satisfied with its lack of future growth projections. 

Last Monday, the 17th of November, Technology One shares shed 17% of their value in just one day. There has been some recovery since then, but the stock still has a long way to go to return to pre-reporting season levels.

At the time of writing, ahead of the ASX open on Wednesday morning, the ASX tech share is priced at $30.58 per share. For the month, the shares are 21.02% lower, and for the year-to-date, the ASX tech share is down 0.13%.

The thing is, despite the latest drop in investor sentiment, I still think this ASX tech share could quietly become a global leader. 

And thanks to its new ultra-low share price, it could make a fortune for savvy investors.

Here’s why.

Technology One well-positioned for a boom in growth

TechnologyOne is one of the largest publicly listed software companies in Australia, with offices across six countries. It develops user-friendly enterprise software products that are deeply integrated into customers’ information technology (IT) infrastructures. 

The company boasts more than 1,300 clients across seven industry segments: namely, government, local government, financial services, education, health and community services, utilities, and managed services.

In FY25, the business delivered 18% revenue growth, reaching $610 million, and its annual recurring revenue (ARR) increased 18% to $554.6 million.

The ASX tech company is also pressing forward with its growth strategies. The business continually expands its customer base and acquires new customers. It is also making significant investments in artificial intelligence and developing future growth platforms to help expand its product offerings.

The ASX tech share has also achieved its target net revenue retention (NRR) rate of 15%, which represents the growth in revenue from existing customers since last year. Revenue doubles in five years if it grows at an average annual rate of 15%.  

What do the experts think about the ASX tech share?

Analysts are very bullish on the outlook for Technology One, too, with many predicting a strong upside.

TradingView data shows that out of 18 analysts, 11 still have a buy or strong buy rating on the stock. The maximum upside is as high as $44.55, which implies a 59.5% upside for investors at the time of writing. 

Morgan Stanley analysts recently upgraded the company’s shares to an overweight rating with an improved price target of $36.50. That implies a 19.4% upside is ahead for investors. The broker said it thinks that recent share price weakness has created a very attractive entry point for investors.

The team at Morgans has an accumulate rating on the shares and a more modest $34.50 price target. That implies a 12.8% upside at the time of writing. 

With predicted potential increases like these, it looks like now is a perfect time for investors to get in on the action!

The post This ASX tech share could quietly become a global leader appeared first on The Motley Fool Australia.

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

Harvey Norman Holdings Ltd (ASX: HVN) shares are having a strong session on Wednesday.

At the time of writing, the ASX 200 retail share is up 4% to a record high of $7.71.

Why is this ASX 200 share charging higher?

Investors have been scrambling to buy the retail giant’s shares today after responding positively to the release of a trading update ahead of its annual general meeting.

According to the release, Harvey Norman has delivered continued strong aggregated sales revenue in FY 2026 from its wholly-owned company-operated stores in New Zealand, Slovenia, Croatia, Ireland, United Kingdom, majority-owned controlled company-operated stores in Singapore and Malaysia, and independent Harvey Norman, Domayne, and Joyce Mayne branded franchised complexes in Australia

Aggregated sales for the period 1 July 2025 to 20 November, increased by 9.1% over the prior corresponding period. On a comparable store basis, its aggregated sales increased by 8.1% year on year.

In Australia, franchise sales were up 6.5% in total and 6.4% on a comparable store basis.

Foreign exchanged tailwinds have been supportive of the ASX 200 share’s sales growth. Management notes that they were positively impacted by a 9% appreciation in the Euro, a 5.5% appreciation in the UK Pound, a 4.6% appreciation in the Singaporean dollar, and a 7.1% appreciation in the Malaysian Ringgit.

Also supporting its growth was an increase to its store network. Management advised that two new company-operated stores were opened during the period. They are located at Punggol Coast Mall in Singapore and The Beat at Kiara Bay in Malaysia. This brings our total number of overseas company-operated stores to 121.

But its international expansion won’t stop there. Commenting on its opportunity in the United Kingdom, Harvey Norman’s CEO, Katie Page, said:

Our continued expansion in the UK’s West Midlands remains a key market to establish and scale. Home to five million people, it’s a region with strong economic growth and our strategy is focused on capturing those benefits to drive long-term performance. Just over a year ago, we launched Phase One of this strategy with the opening of our flagship store at Merry Hill Shopping Centre. The store has outperformed expectations for footfall in the first year and continues to set the benchmark for customer experience and design.

Phase Two of the expansion is on schedule, and we can confirm our second West Midlands store at the Gracechurch Shopping Centre in Sutton Coldfield will open in 2026. This new location will strengthen brand awareness across the region and bring Harvey Norman closer to customers north of Birmingham, driving further growth and engagement.

Following today’s gain, Harvey Norman shares are now up 60% since this time last year.

The post Why are Harvey Norman shares racing 4% to a new record high? appeared first on The Motley Fool Australia.

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

This ASX 200 media share has been knocked around for years. On Tuesday, Nine Entertainment Co Holdings Ltd (ASX: NEC) went to a new 5-year low at $1.09 per share.  

Advertising shift to Google and Meta

The media group behind Channel 9, Stan, The Sydney Morning Herald and Australian Financial Review has seen its share price gradually sink to multi-year lows. The reason for the downfall of the ASX 200 media share is weakening advertising demand and a bleak outlook for traditional media.

The intense shift of advertising dollars to global tech giants such as Google and Meta continues to threaten Australian media groups like Nine Entertainment.

Analysts are particularly concerned about Nine’s reliance on its television business, which is vulnerable to a decline in the advertising market.

In its latest trading update on 7 November, the board of the media company flagged that the TV advertising market remains soft and short for the run into Christmas. This will impact revenues in both September and October and has been a reason for some brokers to cut revenue estimates for 2026 from $2.7 billion to $2.3 billion.

Strong multimedia brands

Yet, most analysts argue that the sell-off has gone too far. Nine may be better positioned for recovery than the market currently believes.

Founded as a free-to-air broadcaster, Nine Entertainment has evolved into a multimedia business, spanning television, print, radio, digital publishing, streaming and events. The ASX 200 media share has diversified revenue streams, strong brands and a comparatively healthy balance sheet.

Nine’s biggest strength remains audience reach and brand trust. Across news, entertainment and sport, the company maintains national visibility. That’s something that advertisers continue to value, even in softer markets.

Digital buffers traditional TV

Nine says its digital and subscription arms, particularly through 9Now and Stan, have helped to cushion declines in traditional TV advertising.

Operating efficiencies introduced over the past 18 months have also supported cash generation. As a result, Nine management expects further EBITDA growth in the first half of FY26 compared to H1 FY25.

What do analysts say?

After a bruising year, Nine Entertainment is no guaranteed turnaround story. The advertising market may not rebound quickly, and streaming competition won’t be any easier for Nine Entertainment.  

Most analysts don’t think that Nine’s share price will go much lower than what it is now. In the past 6 months the ASX 200 media share has lost 30.4% in value and compared to the end of August the share price is even 72.5% lower. The majority of the brokers see Nine Entertainment at this low price level as a buy.

However, in recent weeks, most brokers did downgrade their 12-months price target to an average of $1.44, which suggests a 32% upside at the current share price. This may be the moment for value-focused investors to tune back in.

The post Time to buy? This ASX 200 media share hasn’t been this cheap in 5 years appeared first on The Motley Fool Australia.

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

Shares in the $3.2 billion National Storage REIT (ASX: NSR) have been placed in a trading halt ahead of an announcement about a potential bid for the company.

The company on Wednesday morning asked that its shares be placed in a trading halt pending an announcement, “in relation to a potential control transaction for all of NSR’s stapled securities”.

The trading halt will remain in place until an announcement is made or until the start of trade on 28 November, the statement to the ASX said.

Bid being pulled together

The Australian is reporting that investment firms Brookfield and GIC are in negotiations with NSR, but that a deal has not been finalised.

NSR listed on the ASX in late 2013, with the company’s Chair, Anthony Keane, telling the company’s annual general meeting last month that total returns to shareholders since that time had been more than 330%.

He went on to say:

Our compound annual growth rate for both our underlying earnings and total revenue of over 20% per annum over the last 11 years, stands as one of the best and most consistently performing (listed property trusts) over this period.  

Mr Keane said the company now operated more than 280 storage centres in every state and territory across Australia and New Zealand.

As he said:

We are not a passive rent collector. Our business spans multiple retal areas including revenue management, the operation of multisite, geographically diverse businesses, SEO … marketing, AI and call centre operation to name a few focus areas.

Growth plans afoot

Mr Keane said the company had spent $664 million on growth projects in FY25 across acquisitions, completed developments, and expansion opportunities.

This is unrivalled in the Australian and New Zealand markets and underpins our exceptional and unique ability to identify, execute and capitalise upon key opportunities in the self-storage sector. Our significantly expedited development pipeline has over 50 current and future development projects comprising approximately 49,000 square metres of new lettable area that is expected to be completed and brought online over the next two to three years. This reflects NSR’s increasing focus on high value accretive new development opportunities and will allow us to further build on our advantages of critical mass and economies of scale in the coming years.  

NSR also owns a 4.78% stake in fellow storage provider Abacus Storage King Ltd (ASX: ASK).

NSR shares last changed hands at $2.26, in the midpoint of their trading range over the past 12 months, which is $2.05-$2.55.

The post Takeover bid in the wings for this major self storage outfit appeared first on The Motley Fool Australia.

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

Owning Telstra Group Ltd (ASX: TLS) stock over the last five years has been a rewarding experience, marked by a rising Telstra share price and increasing dividends. After climbing more than 55% in the past five years, it’s worth asking whether the ASX telco share is a buy today for the dividend yield.

After a difficult period in the second half of the 2010s, when the ownership of the wire infrastructure shifted to the NBN, Telstra has emerged from the COVID-19 period with earnings heading in the right direction.

The outlook for further profit growth appears promising, and passive income payments are expected to continue rising.

Analysts predict more growth

In FY25, the company reported a total income growth of 0.7% to $23.6 billion and a rise in earnings per share (EPS) of 3.2% to 19.1 cents. Cash EPS increased by 12% to 22.4 cents, demonstrating strong underlying business growth. EPS is a key factor in determining the valuation of Telstra stock and the company’s dividend yield.

Mobile service revenue climbed by 3.5%, with operating profit (EBITDA) climbing by 5% to $5.3 billion. This was driven by both the growth of mobile handheld users and sustained average revenue per user (ARPU) growth.

When the ARPU rises, it can drive margins higher because of the operating leverage of its financials. There was a 2.5% rise for postpaid handheld users, an 8.4% growth for prepaid handheld users, and a 5% growth for wholesale users.

Analysts at UBS predict that the company’s EPS can climb from 19 cents in FY25 to 22 cents in FY26, suggesting an increase of roughly 15%. That would be an impressive rise if that happens.

UBS expects mobile revenue growth of 3% in FY26, although the broker is predicting slower subscriber growth now than it did before seeing the FY25 results.

The broker also projects the ASX telco share will generate cash earnings before interest and tax (EBIT) to climb by 9% to $4.7 billion. Pleasingly, the broker expects a rise in both the EBIT margin and return on invested capital (ROIC) in each of the years between FY26 and FY30.

Is the Telstra stock price a buy for the dividend yield?

UBS analysts are currently forecasting that Telstra could pay an annual dividend per share of 21 cents in the 2026 financial year (with further dividend increases in the coming years).

This means the company could deliver a cash dividend yield of 4.2% and a grossed-up dividend yield of 6%, including franking credits, in FY26.

The potential dividend yield is attractive to me for generating passive income; it’s considerably better than what term deposits are currently paying.

In terms of potential share price growth for Telstra stock, UBS has a neutral rating on the ASX telco share, indicating there may be better opportunities for possible capital gains.

The post Is Telstra stock a buy for its 6% dividend yield? appeared first on The Motley Fool Australia.

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

When markets get choppy, many investors sit on the sidelines waiting for conditions to get better.

But long-term wealth is built by doing the opposite, buying high-quality stocks when uncertainty drags their share prices lower.

Right now, two ASX giants have been sold off heavily in 2025, despite continuing to strengthen their underlying businesses.

If I had $2,000 to put to work today, these ASX stocks would be at the top of my list.

CSL Ltd (ASX: CSL)

It is not often Australia’s biotech champion trades at this kind of discount. CSL shares are down sharply this year, falling close to 40% from their peak as investors react to slower margin recovery at CSL Behring, uncertainty around the planned spin-off of Seqirus, and noise surrounding potential US tariffs.

But despite this, the underlying fundamentals remain strong. CSL continues to benefit from rising global demand for plasma-derived therapies, with long-term demographic and healthcare trends firmly in its favour. Its pipeline is expanding, its US manufacturing investment is progressing, and the company remains one of the most profitable and resilient healthcare businesses in the world.

Importantly, CSL’s valuation has reset to levels not seen in a decade. At roughly 20x earnings, the stock is trading at a meaningful discount to its historical averages. Unsurprisingly, many major brokers now see significant upside, with price targets far above current levels.

For example, UBS has a buy rating and $275.00 price target on its shares, which implies potential upside of 50%.

WiseTech Global Ltd (ASX: WTC)

Another ASX stock that could be a great option for a $2,000 investment is WiseTech Global. It has also experienced a rare pullback in 2025, despite continuing to strengthen its position as one of the world’s most important logistics software companies.

Its CargoWise platform is embedded across global supply chains, used by many of the largest freight forwarders and logistics operators across Europe, Asia and North America.

The company’s recurring revenue model, sticky customer base, and history of disciplined acquisitions have made it one of the ASX’s most consistent tech performers over the past decade. And with global freight complexity increasing, WiseTech’s software is becoming more essential, not less.

Despite this, the share price has been volatile this year and that volatility offers an attractive entry point according to many brokers.

Morgans is one of them. It has a buy rating and $127.60 price target on the company’s shares.

The post My best ASX stocks to invest $2,000 in right now appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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.