Tag: Stock pick

Treasury Wine Estates Ltd (ASX: TWE) shares are flat at $5.23 a piece at the time of writing.

So far in 2026, the shares are down 1.13% and they’re a huge 50.75% lower than the price they were trading at this time last year. 

What happened to Treasury Wine Estates shares in 2025?

Treasury Wine Estates shares were one of the worst performers on the ASX 200 Index in 2025. Throughout the 12-month period, the share price gradually and consistently tumbled as overall weaker global demand for wine, higher costs, and disappointing earnings all weighed on the share price. 

Last month, the company released an investor update and outlook for the first half of FY26. It said that trading conditions have weakened in recent months, particularly in the US and China. 

The company’s CEO, Sam Fischer, said, “We are currently experiencing category weakness in the US and China, two of our key growth markets, which will impact our business performance in the near-term. Maintaining the strength of our brands and the health of their respective sales channels is of critical importance to our Management team and our Board as we navigate through the current environment.” 

And as a result, the wine giant said that near-term improvement is now considered unlikely. 

The company has reset expectations for its sales volume growth. Treasury Wine Estates now expects its earnings before interest and tax to be between $225 million and $235 million in H1 FY26. Although it still anticipates better performance in the second half of the year. 

Management has also begun cutting costs to help combat the weaker trading conditions. Fischer launched a company-wide cost-cutting program called TWE Ascent shortly after his appointment to the role late last year. The program hopes to optimise the company’s portfolio, improve operating models, and reduce costs by approximately $100 million per year. However, the benefits of the cost savings won’t be seen until FY27.

Is there any upside for the wine giant in 2026?

Although Treasury Wine Estates shares performed poorly in 2025, many brokers think a lot of the bad news is already priced in.

It looks like the shares have well and truly reached the bottom. But I’m on the fence about whether we’ll see much material upside over the next 12 months.

But the experts are divided. TradingView data shows that 12 out of 17 analysts have a hold rating on the stock. The other five have a buy or strong buy rating on Treasury Wine Estates shares. 

The average 12-month target price is $5.51, which implies a potential 4% upside for investors at the time of writing. However, some think the share price could nearly double to $8.55 by this time next year. That implies a potential 61.32% upside from the current trading price.

While there is no crystal ball to predict exactly what will happen, with much of last year’s headwinds already factored into the stock, any resurgence in investor interest could only push the share price upwards this year.

The post Treasury Wine Estates shares drop 50%: Is there any upside left in 2026? appeared first on The Motley Fool Australia.

More reading

• How much passive income could I earn from Westpac shares
• Treasury Wine shares keep the good times flowing
• These were the worst performing ASX 200 shares in 2025
• Shocking declines: Australian shares that disappointed investors in 2025
• Down over 50%, is this the ASX 200’s greatest recovery share for 2026?

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and slipped into the red. At the time of writing, the benchmark index is down 0.2% to 8,789.6 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising today:

EBR Systems Inc (ASX: EBR)

The EBR Systems share price is up 5% to $1.10. Investors have been buying this medical device company’s shares following the release of a bullish broker note out of Morgans. According to the note, the broker has retained its buy rating on EBR Systems’ shares with an improved price target of $2.95. It said: “We view clinical momentum with the WiSE-UP post-approval study and the TLC-AU feasibility study as supporting longer-term adoption and label expansion. Updated TAM of US$5.8bn (+60%) highlights a materially larger opportunity, underpinned by growth in leadless pacing and de novo CRT applications.”

Endeavour Group Ltd (ASX: EDV)

The Endeavour Group share price is up 2.5% to $3.79. This may have been driven by the release of a broker note out of Citi. According to the note, the broker has upgraded the drinks giant’s shares to a buy rating with an improved price target of $4.10. It was pleased with improving sales trends reported by the Dan Murphy’s and BWS owner, but acknowledges that its earnings have fallen short of expectations due to margin weakness.

Monadelphous Group Ltd (ASX: MND)

The Monadelphous share price is up 2.5% to $29.34. Investors have been buying this diversified services company’s shares after it announced another new contract win. Monadelphous has been awarded a major long-term maintenance contract with Rio Tinto Ltd (ASX: RIO) worth approximately $300 million over five years. Monadelphous’ managing director, Zoran Bebic, said: “We are delighted to continue supporting Rio Tinto’s Pilbara iron ore operations, where Monadelphous has provided services for more than 30 years.”

Neuren Pharmaceuticals Ltd (ASX: NEU)

The Neuren Pharmaceuticals share price is up 7% to $20.71. This follows the release of a sales update from the pharmaceuticals company this morning. Neuren revealed that its US partner now believes global sales could reach about US$700 million by 2028. This will be a big increase on its 2025 guidance of US$400 million. Supporting this is the continued momentum it is experiencing, with more than 2,000 Rett patients treated by Daybue since US launch. There are an estimated 6,000 sufferers in the US.

The post Why EBR Systems, Endeavour, Monadelphous, and Neuren shares are racing higher today appeared first on The Motley Fool Australia.

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• The next 3 years could be huge for this ASX healthcare stock. Here’s why
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Motley Fool contributor James Mickleboro has positions in Endeavour Group. 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.

Earlier this week, the Federal Government shed more light on its proposed $1.2 billion Critical Minerals Reserve, with Resources Minister Madeleine King revealing they’d be stockpiling critical minerals, including specifically antimony, gallium, and rare earths elements.

Ms King said the reserve would “help attract further investment and help the sector deal with potential future market disruptions”.

Give these stocks a once over

We’ve had a look at some of the players in the antimony field, which might be worth a look now that the government will be intervening in a positive way in the sector.

One company that issued a press release on Thursday welcoming the new strategic reserve is Southern Cross Gold Consolidated Ltd (ASX: SX2).

As the company said in their release, their Sunday Creek project was well-placed to be a supplier:

The company welcomes this landmark initiative which recognizes the strategic importance of securing domestic antimony supply for Australia and its allies. Sunday Creek, located just 60km north of Melbourne in Victoria, represents one of the most significant undeveloped gold-antimony deposits in the Western world and stands ready to support Australia’s critical minerals security objectives.

The company said construction had started on an exploration decline at the project, and Chief Executive Officer Michael Hudson was touting Victoria’s historical strength in the sector.

Victoria has always been Australia’s antimony state. Antimony has historically been Victoria’s second most important metal after gold, with a heritage stretching back to the 1860s. During World War I, central Victoria’s Costerfield mines were critical suppliers of antimony for British munitions. Today, Victoria remains Australia’s only antimony-producing state.  

Another company with a well-timed release out on Wednesday was Resolution Minerals Ltd (ASX: RML), which reported new high-grade antimony and silver samples from its Antimony Ridge project, albeit in the US in this case.

These samples were taken from within historically-mined areas at the project, and the company said the results “reinforce the potential for Antimony Ridge to host a high-grade, strategically significant U.S antimony system”.  

New South Wales focus

Back home in Australia, and Larvotto Resources Ltd (ASX: LRV) is aiming to bring its Hillgrove gold and antimony project in New South Wales into production this year.

It’s a substantial project, as the company says on its website:

Hillgrove is poised to become Australia’s largest producer of antimony, expected to produce 7% of global antimony requirements when global supply is tightening and Western governments are prioritising strategic supply chains. Hillgrove has been mined for antimony and gold since 1857. With a rich history within the region, Hillgrove continues to provide residential employment opportunities and support for local business and communities.

And finally, Black Cat Syndicate Ltd (ASX: BC8) announced in October that new drilling had found visible antimony in the first four holes drilled at its Mt Clement project, which it said is “one of Australia’s largest and highest-grade antimony projects” with a resource of 13,200 tonnes at a grade of 1.7%.

The company at the time said it had appointed a manager to drive the project faster, “given the strong demand and pricing for antimony”.

The post The government is looking to stockpile antimony – these four companies can help you gain exposure appeared first on The Motley Fool Australia.

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• Up 150% since February, ASX 300 gold stock reports ‘robust’ high-grade results

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.

Lynas Rare Earths Ltd (ASX: LYC) shares climbed 4.15% higher to $15.68 at the time of writing on Wednesday. The latest uptick means the shares have jumped 26.41% already in the first couple of weeks of 2026. 

The shares are now 117.41% higher than this time last year but still 27.59% below their all-time high of $21.64 in mid-October last year.

Shares in the miner rode the wave of booming demand for rare earths materials throughout 2025. Demand peaked in mid-October when US President Donald Trump and Australian Prime Minister Anthony Albanese struck a deal to bolster rare earths and critical mineral supplies and reduce dependence on China’s exports. 

Shortly later, Lynas revealed plans to establish a new Heavy Rare Earths separation facility in Malaysia to meet strong market demand.

Shortly later, Trump and China’s president Xi Jinping reached a trade framework agreement to ease tariffs and postpone export controls for a year. And it took the wind out of Lynas’ share price throughout the final months of 2025.

What’s ahead for Lynas in 2026?

Lynas is expected to hike its production this year, which, combined with higher pricing for Neodymium and praseodymium (NdPr), could drive the company’s revenue skywards in 2026. 

Broker forecasts suggest Lynas’ revenue could double from approximately $557 million in FY25 to $1.1 billion in FY26. Its NdPr production is expected to jump 35% to around 8,800 tonnes, and prices are forecast to increase around 50%.

NdPr is used in magnets for electric vehicles, wind turbines, robotics, and applications in the defence technology. Demand for the materials is expected to outpace supply in 2026 as countries invest heavily into their defence sector and green technologies take off. 

Are Lynas shares a buy, hold or sell this year?

While the stock finished 2025 on a low, the share price has rallied since the ASX opened in 2026.

But analysts are still divided about where they think the share price will travel from here. Data shows that the split between analysts with a strong buy, hold, and sell rating is nearly equal. 

The average target price, however, is $15.52. At the time of writing, this implies a potential 0.13% upside ahead for investors. Although some think the shares could climb as high as $29.50 over the next 12 months. If that were to happen it would represent a huge 90.50% upside, at the time of writing.

The issue is that the Lynas share price is closely tied to commodity price movements. Therefore it is likely to remain volatile in the near future.

The team at Macquarie are optimistic about Lynas shares and expect more gains out of the rare earth producer. The broker has a $17 target price on the shares. The broker expects the rare earths market to remain tight in 2026.

The post Lynas shares storm 26% higher. Is the stock a buy, hold or sell for 2026? appeared first on The Motley Fool Australia.

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• Why EOS, Elevra, Lynas, and New Murchison Gold shares are pushing higher today
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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 recommended Lynas Rare Earths Ltd. 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) is having a subdued session on Wednesday. In afternoon trade, the benchmark index is down 0.2% to 8,789.3 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is down 7% to $10.24. This appears to have been driven by profit taking from some investors following strong gains by the defence and space company’s shares. In fact, despite today’s pullback, EOS shares are up 60% over the past month. The announcement of major new contract wins has been behind this. On a 12-month basis, the company’s shares are up a staggering 750%.

Humm Group Ltd (ASX: HUM)

The Humm share price is down 2% to 72.5 cents. This morning, the financial services company’s board strongly recommended that shareholders vote against resolutions proposed at an extraordinary general meeting to remove three current directors. It named a number of reasons why. One is: “Replacing the current Board would jeopardise the strategy delivering measurable results, including a ~118% total shareholder return, since mid-2022.” Another reason is: “The Convenors’ ill-conceived and simplistic ‘plan’ threatens Humm’s capital strength, lender relationships and growth prospects. In contrast, your Board’s disciplined approach prioritises sustainable value creation.”

Pantoro Gold Ltd (ASX: PNR)

The Pantoro Gold share price is down 2% to $5.27. This appears to have been driven by the release of drilling results from the gold miner’s 100%-owned Norseman Gold Project this morning. Pantoro Gold’s managing director, Paul Cmrlec, said: “These high-grade results from Daisy South support the development of an additional open pit to be mined at the same time as the Gladstone Everlasting Open Pit, located just 900 metres to the west. Mining the pits simultaneously is expected to improve fleet efficiency and extend the open pit life of the Gladstone Everlasting Mining Centre.”

Robex Resources (ASX: RXR)

The Robex Resources share price is down 3% to $6.69. This is despite the gold miner announcing that Superior Court of Quebec has approved its merger with Predictive Discovery Ltd (ASX: PDI). Closing of the transaction remains subject to the satisfaction of the remaining closing conditions. This includes the receipt of the consents of the Governments of Guinea and Mali. But if all goes to plan, the transaction is expected to complete later in the first quarter of 2026.

The post Why EOS, Humm, Pantoro Gold, and Robex shares are dropping today appeared first on The Motley Fool Australia.

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• Up 211% in a year, guess which ASX 200 gold share just announced new high-grade results
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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.

When people ask me about dividend stocks, I always try to reset expectations first. I am not looking for the highest dividend yield on the market, and I am not trying to predict next year’s payout to the cent. What I care about is sustainability, balance sheet strength, and the ability for dividends to grow over time.

With that in mind, these are three Australian dividend stocks I would genuinely feel comfortable recommending to almost anyone who wants income, without taking on excessive risk.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre may not be the first name that comes to mind when thinking about dividends, but that is exactly why I think it deserves attention.

The company has rebuilt its balance sheet since the pandemic and is now operating a more streamlined, higher-quality business. Corporate travel, leisure, and increasingly cruise all contribute to earnings, giving the group multiple levers for growth.

Importantly for income investors, Flight Centre is no longer in recovery mode. It is back to generating cash and returning capital to shareholders. Consensus estimates suggest a dividend yield of around 3% in FY26.

If travel demand remains resilient, Flight Centre has the potential to grow earnings and dividends meaningfully from current levels. That is a more attractive setup than chasing a higher yield from a business with limited growth prospects.

Challenger Ltd (ASX: CGF)

Challenger is a dividend stock that often flies under the radar.

The company operates in retirement income, specialising in annuities and investment solutions designed to help Australians manage longevity risk. With an ageing population and a growing pool of superannuation savings, the long-term demand backdrop is supportive for Challenger.

What I like about the business from an income perspective is the predictability of its earnings profile when markets are functioning normally. Annuities generate long-dated cash flows, and management has been focused on maintaining capital discipline rather than chasing growth for growth’s sake.

According to CommSec, consensus estimates point to a dividend yield of around 3.3% in FY26. That is not eye-catching, but it is reasonable when combined with the defensive nature of the business and the potential for steady dividend growth over time.

For investors looking for income exposure outside the usual banks, miners, and REITs, Challenger offers something different.

Macquarie Group Ltd (ASX: MQG)

Macquarie is one of the highest-quality financial stocks on the ASX, and it earns its place on this list easily.

Unlike traditional banks, Macquarie operates across asset management, banking, commodities, capital markets, and advisory services. That diversification helps smooth earnings through different economic cycles.

Macquarie’s dividend can fluctuate from year to year, but it has a long track record of paying out meaningful income while retaining flexibility to reinvest in growth opportunities. Consensus estimates point to a dividend yield of around 3.4% in FY26.

For me, Macquarie works well as a core income holding because it combines a good yield with global growth exposure. Investors are not just buying a dividend, they are buying a business with strong management and a history of adapting to changing conditions.

Foolish takeaway

What links Challenger, Flight Centre, and Macquarie is quality.

Each has a business model that can support dividends through time. Each has management teams that appear focused on capital discipline. And each offers income without relying on excessive leverage or unsustainable payout ratios.

If someone asked me where to start when building a dividend-focused Australian portfolio, these are three stocks I would be comfortable pointing them toward.

The post The top 3 Australian dividend stocks I’d tell anyone to buy appeared first on The Motley Fool Australia.

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

BHP Group Ltd (ASX: BHP) shares have had quite the run of late. The mining giant has just capped off a spectacular 2025, and, as of today’s pricing, is up a robust 19.35% over the past 12 months.

BHP has shown it can afford to pay massive dividends to its investors when commodity prices are riding high. But I prefer a smoother dividend output from my ASX dividend shares. With BHP, it’s always feast and famine. To illustrate, the ‘Big Australian’ paid out $1.91 in dividends per share over 2025, but $4.63 per share back in 2022.

If I were building an income-focused portfolio today, I would opt for a monthly dividend-paying ASX exchange-traded fund (ETF) instead.

There are a few monthly dividend payers on the ASX to choose from. But one of my favourites is the BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD).

Like most ASX ETFs, this ASX ETF holds an underlying portfolio of about 50 dividend ASX shares. These shares are selected based on their track records of delivering high levels of income to investors, as well as their perceived ability to continue to fund sustainable shareholder payouts.

At present, HYLD’s portfolio includes stocks ranging from ANZ Group Holdings Ltd (ASX: ANZ) and Wesfarmers Ltd (ASX: WES) to Rio Tinto Ltd (ASX: RIO) and Telstra Group Ltd (ASX: TLS). BHP is also in there.

What’s to like about this monthly income ETF?

The Betashares Australian Shares High Yield ETF has only been around for a few months – since August of 2025, to be specific.

But since its ASX launch, it has funded a dividend payment every single month. HYLD has doled out four dividend distributions since August, with a fifth due on 19 January next week. Each of these dividend distributions has been worth 11.92 cents per share.

At the current HYLD unit price of $31.35 (at the time of writing), that translates to an annualised dividend yield of 4.56%. What I really like about this fund, though, is its fee, or lack thereof.

Most monthly dividend-paying investments on the ASX don’t come cheap. But the Betashares Australian Shares High Yield ETF charges a competitive 0.25% per annum.

That’s not as cheap as a simpler index fund like the Vanguard Australian Shares Index ETF (ASX: VAS), at 0.07%. But it’s a lot better than the BetaShares Australian Dividend Harvester Active ETF (ASX: HVST) at 0.72% per annum, and particularly WAM Income Maximiser Ltd (ASX: WMX) at 0.88% per annum (that’s in addition to a low-bar 20% performance fee).

So if I were choosing between BHP shares and the Betashares Australian Shares High Yield ETF today, it would be an easy choice.

The post A monthly income ETF I like more than BHP shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Vanguard Australian Shares Index ETF and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended BHP Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Woodside Energy Group Ltd (ASX: WDS) are moving higher today, climbing 2.23% to $23.83 in late afternoon trade.

The bounce comes after a difficult year for investors. Despite today’s strength, Woodside shares remain down around 8% over the past 12 months, reflecting softer energy prices and cautious sentiment toward large oil and gas producers.

So, what is driving today’s move, and could this rally have more room to run?

A steady business, but sentiment has been weak

Woodside is Australia’s largest independent oil and gas producer, with major LNG and energy assets across Australia, the US, and international markets.

Operationally, the business remains solid. Woodside continues to generate strong cash flow, maintain a healthy balance sheet, and return capital to shareholders through dividends. Its trailing dividend yield currently sits around 7%, which remains attractive for income-focused investors.

However, sentiment toward the stock has been weighed down by weaker oil prices over the past year and uncertainty around future demand growth. That pressure has kept Woodside shares range-bound for much of 2025.

Technical signs point to a short-term shift

From a technical perspective, Woodside’s recent price action is becoming more interesting.

In mid to late December, the stock slipped into oversold territory, with the RSI falling into the low 20s. That level often signals selling exhaustion rather than fresh downside momentum. Since then, Woodside shares have stabilised and started to trend higher.

The share price has also moved back inside its Bollinger Bands after spending time below the lower band. That typically suggests downside pressure is easing. While this does not confirm a long-term trend change, it often supports a short-term rebound.

Key support appears to be forming around the $22.50 to $23 range, while near-term resistance sits closer to $25.

Oil prices provide a tailwind

Energy prices have helped sentiment in recent sessions. Oil has pushed higher this month amid renewed geopolitical tensions and concerns about supply disruptions. Even modest oil price rebounds can have a huge impact on large producers like Woodside, especially after a period of weakness.

Looking ahead, Woodside’s earnings and share price will remain closely linked to movements in oil and LNG prices. Any sustained recovery in commodities would likely support further upside.

What should investors watch next?

Today’s move does not alter the long-term outlook, but it suggests that selling pressure may be easing. For income investors, Woodside’s dividend yield remains a key attraction. For traders, the recent rebound from oversold levels could signal improving short-term momentum.

The next test will be whether Woodside can hold above recent support and push through resistance in the weeks ahead. If it can, sentiment may slowly begin to turn.

However, for now, it may make sense for investors to watch Woodside from the sidelines until the company reports its full-year results late next month.

The post Woodside shares lift today. Is the worst behind this ASX energy giant? appeared first on The Motley Fool Australia.

More reading

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• Why Codan, DroneShield, Mesoblast, and Woodside shares are storming higher today

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

An ASX healthcare stock is back in focus today after a fresh update lifted confidence in its long-term outlook.

The Neuren Pharmaceuticals Ltd (ASX: NEU) share price is up 7.77% to $20.80.

Over the past year, the stock has climbed around 70%, making it one of the strongest ASX performers in the healthcare sector.

Let’s take a closer look at what the company announced to the market.

What’s behind today’s update

Today’s update focused on the company’s main product, DAYBUE, which is used to treat Rett syndrome, a rare neurological condition.

The company’s US partner now believes global sales could reach about US$700 million by 2028. That is a big increase from current levels and suggests demand for the treatment is continuing to grow.

More than 2,000 patients in the US have now been treated with DAYBUE. Importantly, around 55% of patients are still using the drug after 12 months, which has helped support steady, repeat revenue over time.

Further growth is anticipated from the introduction of a new powder version of the drug, a larger US sales team, and potential approvals in Europe and other markets.

A key benefit for Neuren is that it earns milestone payments and royalties, while its partner handles most of the sales and marketing costs.

Why investors are taking notice

This update helps explain why investors continue to back the stock, even after its strong run.

Neuren is now valued at about $2.5 billion, despite having just one approved product. However, that product is already generating solid income and still has plenty of room to grow.

The company also has another drug in late-stage development, which could add a second source of revenue in the future.

What the chart is telling us

Looking at the technical side of things, the share price remains in a healthy uptrend.

The stock has been moving sideways between $18.50 and $21 for several months, with buyers stepping in around the $18.50 to $19 level. The price is still sitting above key trend lines.

The relative strength index (RSI) is sitting near neutral levels, suggesting the stock is not overbought, despite the strong 12-month run. That leaves room for further upside if positive news continues.

Foolish bottom line

Today’s announcement supports the long-term growth outlook for Neuren.

There is clear momentum in sales and patient numbers, with more growth opportunities ahead. While expectations are high, the business continues to make steady progress.

The post The next 3 years could be huge for this ASX healthcare stock. Here’s why appeared first on The Motley Fool Australia.

More reading

• 5 top ASX growth shares to buy now with $5,000
• Which ASX 200 market sectors delivered the best dividend yields in 2025?
• Fastest rising ASX 200 share of each market sector in 2025
• Why 4DMedical, EOS, Gorilla Gold, and Neuren shares are racing higher today
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The market has a habit of throwing out excellent businesses when sentiment turns sour. Over the past six months, we have seen exactly that play out across parts of the tech sector.

Two ASX growth shares that stand out to me right now are Catapult Sports Ltd (ASX: CAT) and Xero Ltd (ASX: XRO). Both are down more than 30% over the past six months. And in both cases, I think the share price weakness says far more about market mood than business quality.

Catapult Sports shares

Catapult is a stock I keep coming back to because the fundamentals continue to improve, even when the share price does not.

The company sits at the heart of elite sport, data, and software. Its technology is embedded inside professional teams across more than 40 sports globally, and once adopted, it is very hard to replace. That shows up clearly in its metrics.

In the first half of FY26, Catapult grew annualised contract value by 19% on a constant currency basis and lifted management EBITDA by 50% year on year. Retention remained above 95%, which puts it in rare company among global SaaS businesses. This is not a company struggling to find demand. It is one that is scaling with discipline.

What really excites me is the operating leverage now emerging. Contribution margins are improving, free cash flow is turning positive, and the business is moving steadily closer to its longer-term margin targets. The acquisitions of Perch and IMPECT also expand Catapult’s addressable market and deepen its competitive moat, particularly in performance analytics and scouting.

After a sharp pullback, the market is once again offering a chance to buy a global SaaS leader with improving profitability and a long runway for growth.

Xero shares

Xero is another example of a business whose share price has recently disconnected from its operational performance.

In the first half of FY26, Xero delivered revenue growth of 20%, free cash flow growth of 54%, and a Rule of 40 outcome of 44.5%. Subscriber numbers rose to 4.6 million, churn remained low, and average revenue per user continued to climb. This is exactly what you want to see from a mature SaaS platform.

The acquisition of Melio strengthens Xero’s position in the US, which remains its biggest long-term growth opportunity. Importantly, management continues to emphasise disciplined capital allocation and improving efficiency, with operating expenses as a percentage of revenue trending lower.

I think Xero’s investment in artificial intelligence is another underappreciated driver. Its AI financial assistant, JAX, is not a marketing gimmick. It is designed to automate workflows, improve insights, and deepen customer engagement. Over time, that could support both retention and pricing power.

Despite all this, Xero shares have fallen heavily from their highs. For long-term investors, I see this as an opportunity rather than a warning sign.

Foolish Takeaway

Both Catapult Sports and Xero are high-quality ASX growth shares that are executing well in challenging market conditions. They are not without risk, but their competitive positions, recurring revenue, and improving profitability give them genuine earnings power.

If sentiment stabilises and execution continues, I would not be surprised to see both stocks outperform the share market meaningfully in 2026 and beyond.

The post 2 ASX growth shares set to skyrocket in 2026 and beyond appeared first on The Motley Fool Australia.

More reading

• 3 reasons Xero shares are a screaming buy right now
• Why I look at past performance of ASX shares to help think about the future performance outlook
• Here are the top 10 ASX 200 shares today
• 3 growing small cap ASX shares with huge potential
• Buy this ASX tech stock now for the long run

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