Tag: Stock pick

ASX 200 consumer staples and consumer discretionary shares have dramatically diverged over the past month.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has fallen 9.16% while the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) has demonstrated resilience, rising 0.59% over the past four weeks.

Broker Bell Potter says the pause in interest rate cuts amid potentially resurgent inflation has led to a sell-off in discretionary stocks.

However, the broker expects a change in momentum as we enter the pre-Christmas retail period.

ASX 200 consumer staples vs. discretionary shares

Bell Direct market analyst, Sophia Mavridis said several factors had given consumer staples shares positive momentum in recent weeks.

They include dairy sector price inflation rising 2% year-over-year in September to an 18-month high.

There has also been sustained spending growth at Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL).

Weakness in the New Zealand dollar is providing a foreign exchange tailwind for A2 Milk Company Ltd (ASX: A2M), which is now the consumer staples sector’s third largest business after 61% growth in its share price this year.

Looking ahead to the silly season, Mavridis said the consumer discretionary sector is “showing some encouraging signs”.

She noted spending in non-food categories rose 5% year-over-year in September.

Additionally, the Westpac/Melbourne Institute Consumer Sentiment Index surged above its 100-point confidence baseline this month.

That’s the first time it’s gone above 100 since the interest rate tightening cycle began in May 2022.

The Consumer Sentiment Index rose 12.8% from 92.1 in October to 103.8 in November.

Westpac analyst Matthew Hassan said this is a seven-year high excluding the COVID period.

Mavridis said higher consumer confidence should be supportive in the upcoming trading season.

This includes Black Friday at the end of November and the pre-Christmas shopping spree in December.

Seasonality has prompted Bell Potter to change its key share picks in the ASX 200 consumer staples and discretionary sectors.

Bell Potter’s top stock picks

In the consumer staples arena, Bell Potter is focused on market leaders.

The broker is positive on Woolworths shares, Endeavour Group Ltd (ASX: EDV), and Bega Cheese Ltd (ASX: BGA).

Bell Potter also has a buy rating on rural services and agribusiness Elders Ltd (ASX: ELD).

The Elders share price rose 8.61% to $7.57 last week after a strong FY25 report.

Bell Potter sees more growth ahead for Elders shares with a 12-month price target of $9.45.

In the discretionary sector, Bell Potter’s high conviction picks include Harvey Norman Holdings Ltd (ASX: HVN).

Bell Potter also likes youth apparel retailer Universal Store Holdings Ltd (ASX: UNI) and footwear retailer Accent Group Ltd (ASX: AX1).

It also has a buy rating on Aristocrat Leisure Ltd (ASX: ALL) with a share price target of $80.

The post What’s driving a 9% divergence in ASX 200 consumer staples vs. discretionary shares? appeared first on The Motley Fool Australia.

More reading

• Should you buy Woolworths and these ASX dividend shares?
• Why did the ASX 200 dive to a near six-month low last week?
• 2 of the best ASX dividend shares to buy for dependable passive income
• Age Pension worries? 7 income stocks to consider for retirement
• How to make $50,000 of passive income a year from ASX shares

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman and Woolworths Group. The Motley Fool Australia has recommended Accent Group, Elders, and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you on the lookout for some ASX dividend shares to buy for your income portfolio?

If you are, then read on because listed below are three that broker currently rate as top buys. Here’s what you need to know about them:

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT could be a top pick according to analysts at UBS.

It is a real estate investment trust that owns a diversified portfolio of convenience-based retail properties, including supermarkets, healthcare centres, and hardware stores. These are properties that tend to perform well regardless of economic conditions.

It notes that its geographically diverse national footprint is 86% metro-located and exposed to markets with above average population growth. It has no exposure to department stores and minimal exposure to discretionary retail and fashion.

Its three largest shareholders are Coles Group Ltd (ASX: COL), Wesfarmers Ltd (ASX: WES), and Woolworths.

UBS believes the company is positioned to pay dividends per share of 8.6 cents in FY 2026 and then 8.7 cents in FY 2027. Based on its current share price of $1.32, this would mean dividend yields of 6.5% and 6.6%, respectively.

UBS has a buy rating and $1.53 price target on its shares.

Sonic Healthcare Ltd (ASX: SHL)

Bell Potter has named Sonic Healthcare as an ASX dividend share to buy now.

It is a medical diagnostics company that operates laboratories and collection centres across Australia, Europe, and the United States.

After a tough period, Bell Potter thinks the company is ready for a return to consistent growth. It is expecting partially franked payouts of 109 cents per share in FY 2026 and then 111 cents per share in FY 2027. Based on its current share price of $23.09, this equates to dividend yields of 4.7% and 4.8%, respectively.

Bell Potter has a buy rating and $33.30 price target on its shares.

Woolworths Group Ltd (ASX: WOW)

Finally, Woolworths could be a top ASX dividend share to buy right now.

While the supermarket giant may not offer the largest dividend yield, it does have potential to grow strongly over the next decade as its earnings rebound and then return to steady growth.

Bell Potter expects Woolworths to reward its shareholders with fully franked dividends of 91 cents per share in FY 2026 and then 100 cents per share in FY 2027. Based on its current share price of $28.08, this would mean dividend yields of 3.25% and 3.55%, respectively.

Bell Potter currently has a buy rating and $30.70 price target on Woolworths’ shares.

The post Should you buy Woolworths and these ASX dividend shares? appeared first on The Motley Fool Australia.

More reading

• What’s driving a 9% divergence in ASX 200 consumer staples vs. discretionary shares?
• Why did the ASX 200 dive to a near six-month low last week?
• 2 of the best ASX dividend shares to buy for dependable passive income
• How much upside does Macquarie predict for Sonic Healthcare shares?
• How to make $50,000 of passive income a year from ASX shares

Motley Fool contributor James Mickleboro has positions in Woolworths Group. 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 Woolworths Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT, Sonic Healthcare, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Friday, the S&P/ASX 200 Index (ASX: XJO) once again finished the week deep in the red. The benchmark index sank 1.6% to 8,416.5 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set for a good start to the week following a positive finish to the last one on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 92 points or 1.1% higher. In the United States, the Dow Jones was up 1.1%, the S&P 500 rose 1%, and the Nasdaq pushed 0.9% higher.

Oil prices drop

It could be a poor start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices dropped on Friday night. According to Bloomberg, the WTI crude oil price was down 1.6% to US$58.06 a barrel and the Brent crude oil price was down 1.3% to US$62.56 a barrel. This reflects optimism that Russia and Ukraine could soon sign a peace deal.

Pro Medicus update

Pro Medicus Ltd (ASX: PME) shares will be on watch today when the health imaging technology provider holds its annual general meeting. It is possible that the company will provide the market with a trading update ahead of the main event. Investors will no doubt be keen to see how quickly Pro Medicus is growing so far in FY 2026.

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could start the week higher after the gold price rose on Friday night. According to CNBC, the gold futures price was up 0.5% to US$4,116 an ounce. This was driven by increasing US rate cut bets in December.

Buy WiseTech shares

Bell Potter thinks that WiseTech Global Ltd (ASX: WTC) shares could offer 50%+ upside over the next 12 months. This morning, the broker has retained its buy rating on the logistics solutions technology company’s shares with a trimmed price target of $100.00. It said: “In FY26 we now forecast revenue and EBITDA of US$1.40bn and US$569m which is towards the lower end of the guidance range for the former and close to the middle for the latter. That is, we see more risk at revenue than EBITDA this year, particularly with the greater-than-usual revenue skew to H2. Any weakness or miss at revenue, however, we would expect to be offset by a stronger margin.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

• What I’d buy first if the ASX share market fell 30%
• Here are the top 10 ASX 200 shares today
• Why Gentrack, Kogan, Webjet, and WiseTech shares are pushing higher today
• Why this ASX 200 gold share is powering ahead
• Why are ASX 200 tech stocks getting smashed on Friday?

Motley Fool contributor James Mickleboro has positions in Pro Medicus, WiseTech Global, and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. 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 WiseTech Global. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Since early August, QBE Insurance (ASX: QBE) shares have fallen more than 16%. 

For context, S&P/ASX 200 Financials (ASX:XFJ) index lost about 5% in the same period. 

Earlier this month, Macquarie placed an outperform rating on QBE shares with a price target indicating roughly 15% upside. 

However the team at Bell Potter is a little less optimistic. 

Bell Potter released updated analysis on QBE shares last Thursday. 

The broker has a hold recommendation on QBE shares. 

Here’s what the broker had to say. 

Concerns over slowing rate increases

In last week’s report, Bell Potter said it sees the investment thesis on QBE as generally good, but with some concerns over slowing rate increases and potential rising inflation. 

The broker said premium rates have been improving, ahead of inflation, showing that insurers retain pricing power, although rate increases are now slowing.

Profitability is seeing a strong underwriting profit, and investment returns are reasonable and stable (running yield) meaning the business is making a return on equity of 17.5% in FY25e.

The valuation is full, and in our opinion, and anticipates a lengthy continuation of a positive upcycle.

Hold recommendation from Bell Potter

The broker said at the half year results, it felt the company could be seen to be growing into a softening environment. 

With a PCA capital ratio of 1.81 (after interim dividend), the company’s capital is at the top of its target range (1.6-1.8x). This capital is being valued by the equity market at a premium to book value and the company is looking for ways to utilise its capital and grow into attractive areas.

The broker said it will review its forecasts post the Q3 update, noting the upside with the shares below $20. 

However for now, Bell Potter has maintained its target price of $21.20 and retained its hold recommendation.

QBE shares closed last week at $19.64. 

Based on this price target it appears QBE shares are hovering close to fair value, with an indicated upside of approximately 8%. 

The post What’s the upside for QBE shares after a rocky 2 months? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• What does Macquarie think QBE shares are worth?
• A 16% upside plus dividends! Macquarie upgrades QBE shares to outperform
• Are QBE or IAG shares a buy according to Macquarie?
• QBE Insurance Group launches US$300m subordinated notes issue

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.

ASX industrials stock Tasmea Ltd (ASX: TEA) has risen 60% in the last 12 months. 

Tasmea is a skilled services company. 

The company provides essential maintenance, engineering, and specialised project services and solutions across the following four service streams to the mining and resources; oil and gas; waste and water; power and renewable energy; and defence and infrastructure industries.

In the last week it has shed almost 15% which may have created a buy the dip opportunity. 

Following the recent share price drop, the team at Morgans has upgraded its view on this ASX industrials stock. 

Here is the latest from the broker. 

WorkPac Acquisition reason for optimism

Earlier this week, Tasmea acquired 100% of the issued capital in WorkPac Group Pty Ltd. 

WorkPac is a workforce solutions business. It specialises in tailored, end-to-end solutions in workforce management, recruitment, skills and career development across diverse sectors including Mining, Industrial, Construction, Engineering, Healthcare, Social Care and more.

Commenting on the acquisition, Tasmea’s Managing Director, Stephen Young said:

This transaction reflects our disciplined approach to growth and our commitment to building a diversified, scalable platform across Australia.

It seems the team at Morgans saw this as a positive move for the ASX industrials stock. 

In a note out of the broker on Thursday, it said WorkPac gives Tasmea a deeper labour pool which will be helpful in a tight market as it endeavours to self-perform all its services. This has the capacity to positively impact margins.

The WorkPac acquisition is +10% EPS accretive or +5-6% including the dilution from the recent equity raise. This transaction is a step-out from the company’s strategy to acquire more specialised services businesses, though it sends a clear signal about TEA’s visibility over demand in its key end-markets.

The broker also believes Tasmea should benefit from improved speed of mobilisation, which is critical given the fast-paced nature of some of its responsive services. 

Target price increase from Morgans

The team at Morgans has maintained its buy recommendation on this ASX industrials stock. 

The broker also increased its price target to $5.40 (previously $5.00). 

Based on this new price target, Morgans sees an upside of 20% for Tasmea shares. 

The post Broker tips 20% upside for this ASX industrials stock appeared first on The Motley Fool Australia.

More reading

• What’s the upside for QBE shares after a rocky 2 months?
• Bell Potter just upgraded its view on this booming REIT
• 3 ASX ETFs for smart investors to buy with $2,500
• Top brokers name 3 ASX shares to buy next week
• What I’d buy first if the ASX share market fell 30%

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.

Real estate investment trust (REIT) Aspen Group (ASX: APZ) has doubled in the last 12 months. 

The company owns, develops, and operates residential, retirement and holiday park communities across Australia.

It is a leading provider of quality affordable accommodation to the 40% of Australians who are unable to afford more than $400/week rent or $400,000 house prices. 

A year ago, this REIT was trading for approximately $2.50 each. Last week, it closed at $5.22. 

The team at Bell Potter has just released fresh analysis on Aspen Group, indicating there is more upside potential. 

The broker has maintained its buy recommendation and bumped up its target price to $5.95 (previously $4.85). 

Let’s see what was behind the upgrade. 

Aspen Group in good shape and under-owned

The team at Bell Potter said Aspen Group is in “good shape.”

It noted the company’s Parks division is travelling ahead of FY25 as well. 

APZ remains well capitalised with c.$113m of undrawn debt capacity on hand to fund further acquisitions and planned development capex, and remains under-owned despite recent ASX300 inclusion with recent register holding increases from already substantial shareholders.

The broker also highlighted FY26 YTD settlements and contracts on hand have increased to 137, representing 91% of recently upgraded FY26 guidance for 150 settlements. 

New FY27 settlement target of 200 is pointing towards >2x delivered in FY24 (97), with APZ seeing an acceleration in sales at 91 over the last 4 months.

Aspen Group currently has 10 projects contributing to earnings, growing shortly to 15 in total.

Buy recommendation

Bell Potter listed key reasons for its buy recommendation on this ASX REIT. 

The broker said Aspen’s target tenant/owner sits within a very defensive segment of the market – affordable living. 

The national undersupply equation means that this will remain a crucial pillar of the housing market, and will be upheld by strong demand and government subsidy for the foreseeable future.

Bell Potter also said the ASX REIT has delivered compelling risk-adjusted returns over time, yet plays in what is otherwise a low-yielding category of residential and derivatives for rent (and sell). 

Focus on total return we believe puts APZ in good stead ahead.

Based on the updated target price of $5.95, there is approximately 14% upside from Friday’s closing price of $5.22. 

The post Bell Potter just upgraded its view on this booming REIT appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs for smart investors to buy with $2,500
• Top brokers name 3 ASX shares to buy next week
• What I’d buy first if the ASX share market fell 30%
• Why did the ASX 200 dive to a near six-month low last week?
• 2 of the best ASX dividend shares to buy for dependable passive income

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.

If you have $2,500 ready to invest, the good news is you don’t need to pick individual stocks or spend hours researching companies.

A handful of high-quality ASX ETFs can give you instant diversification, exposure to powerful global themes, and a simple path to long-term wealth creation.

The ASX has no shortage of choices, but three ETFs that stand out right now are listed below. Here’s a look at what they offer:

BetaShares Global Quality Leaders ETF (ASX: QLTY)

The BetaShares Global Quality Leaders ETF could be a great starting point for investors who want to own high-quality, financially strong companies from around the world. This ASX ETF focuses on businesses with consistent earnings, low debt, and strong profitability.

Its portfolio includes global heavyweights such as Alphabet (NASDAQ: GOOG), Visa (NYSE: V), Hermes International (FRA: HMI), Intuitive Surgical (NASDAQ: ISRG), and Applied Materials Inc (NASDAQ: AMAT). These are companies with durable competitive advantages, strong pricing power, and long histories of delivering stable growth.

Overall, the BetaShares Global Quality Leaders ETF makes sense as a core holding for investors who want long-term exposure to global leaders without taking on unnecessary risk. It is no wonder then that analysts at Betashares recently named it as one to consider buying.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Cybersecurity has gone from a niche industry to an essential part of the global digital economy. Every business, government, and organisation now spends heavily to protect systems from attacks. And that spending is only heading in one direction – up!

The BetaShares Global Cybersecurity ETF gives investors exposure to global cybersecurity specialists including CrowdStrike (NASDAQ: CRWD), Palo Alto Networks (NASDAQ: PANW), and Fortinet (NASDAQ: FTNT). These companies are at the cutting edge of threat detection, cloud protection, and digital security, which are areas where demand remains extremely resilient.

Cybersecurity is becoming one of the most critical sectors of the modern economy, and this fund allows investors to tap into that structural tailwind with a single trade.

BetaShares Australian Momentum ETF (ASX: MTUM)

Momentum investing is a strategy built on a simple idea: stocks that have been performing strongly tend to keep performing strongly. The BetaShares Australian Momentum ETF screens the ASX for shares with strong price momentum and rotates into the market’s current leaders.

At the moment, its top holdings include names such as Qantas Airways Ltd (ASX: QAN), Coles Group Ltd (ASX: COL), Wesfarmers Ltd (ASX: WES), and Evolution Mining Ltd (ASX: EVN).

The portfolio shifts over time, ensuring it stays aligned with whichever sectors and companies are leading the market. Importantly, this has led to the index the fund tracks outperforming the market on most timeframes.

It was also recently named as one to consider buying by the team at Betashares.

The post 3 ASX ETFs for smart investors to buy with $2,500 appeared first on The Motley Fool Australia.

More reading

• The best ASX ETFs to buy for global investing in 2026
• 3 ASX ETFs every beginner investor should know about
• 5 ASX ETFs to buy to supercharge your portfolio in 2026
• Where to invest $2,500 in ASX ETFs this month
• How to make yearly passive income of $70,000 from ASX shares

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 Alphabet, Applied Materials, BetaShares Global Cybersecurity ETF, CrowdStrike, Fortinet, Intuitive Surgical, Visa, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Palo Alto Networks. The Motley Fool Australia has recommended Alphabet, CrowdStrike, Visa, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Catapult Sports Ltd (ASX: CAT)

According to a note out of Bell Potter, its analysts have retained their buy rating on this sports technology company’s shares with a trimmed price target of $6.50. The broker highlights that Catapult released its half year results last week and delivered earnings ahead of both guidance and Bell Potter’s expectations. It notes that this was driven by a higher than expected margin. Looking ahead, the broker sees potential for strong double-digit growth in the core business and believes it will be augmented by the cross-sell opportunities from the recent IMPECT acquisition, together with a potential expansion into other sports. And while the broker has reduced its valuation meaningfully, this is reflective of a change in multiples due to the recent de-rating of the tech sector. The Catapult share price ended the week at $4.51.

TechnologyOne Ltd (ASX: TNE)

A note out of Morgan Stanley reveals that its analysts have upgraded this enterprise software provider’s shares to an overweight rating with an improved price target of $36.50. This followed the release of TechnologyOne’s full year results last week. While the broker highlights that there has been a slight slowdown in its growth (outside the UK), it remains highly profitable and is generating significant cash flow. In light of this and its positive growth outlook and defensive earnings, Morgan Stanley thinks that recent share price weakness has created a very attractive entry point for investors. The TechnologyOne share price was fetching $29.53 at Friday’s close.

Xero Ltd (ASX: XRO)

Analysts at Macquarie have retained their outperform rating on this cloud accounting platform provider’s shares with an increased price target of $230.30. According to the note, Macquarie was pleased with Xero’s performance in the first half of FY 2026. It points out that, despite what the market reaction might imply, there was nothing in the result that breaks its thesis. In fact, Macquarie believes that the US growth platform (Payments: Melio; Payroll: Gusto) is in place earlier than expected, and management is executing on its plans. Overall, the broker feels that Xero has a great growth story that is on sale and only needing a catalyst. And at 25x estimated FY 2027 earnings, its analysts think that Xero shares are undervalued and sees scope for big returns over the next 12 months. The Xero share price ended the week at $119.22.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• How to make $50,000 of passive income a year from ASX shares
• Here are the top 10 ASX 200 shares today
• Why are ASX 200 tech stocks getting smashed on Friday?
• 3 ASX 200 shares that could be top buys for growth
• Morgans just upgraded these ASX 200 shares

Motley Fool contributor James Mickleboro has positions in Technology One and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Sports, Macquarie Group, Technology One, and Xero. The Motley Fool Australia has positions in and has recommended Catapult Sports, Macquarie Group, and Xero. 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.

A 30% crash feels catastrophic while it is happening. Screens are red, headlines are alarming, and even seasoned investors start questioning themselves.

But look beyond the panic and you will notice something far more important: every major market crash in history has eventually given way to a powerful recovery.

For long-term investors, a deep selloff isn’t the moment to run, it is the moment to act.

If the ASX fell 30%, I wouldn’t be trying to guess the bottom or chase speculative rebounds. I would be buying world-class Australian shares with dominant positions, global revenue opportunities, and huge long-term growth runways.

And three that stand out above the rest and are rated as buys by brokers are named below:

ResMed Inc. (ASX: RMD)

ResMed would remain my first port of call in a major downturn. The company serves a global sleep apnoea and respiratory care market estimated to include more than one billion people, most of whom are still undiagnosed.

As awareness improves and clinical screening expands, ResMed is positioned to capture enormous long-term demand for devices, masks, and its cloud-connected monitoring software.

If a market crash dragged ResMed down significantly, I would see that as an opportunity to buy a global healthcare leader at a rare discount.

Macquarie currently has an outperform rating and $49.20 price target on its shares.

Pro Medicus Ltd (ASX: PME)

If the ASX sold off heavily and high-quality growth stocks were thrown out indiscriminately, Pro Medicus would quickly move near the top of my buy list. This is one of the most profitable and scalable software businesses in the entire country, with gross margins and cash generation that most companies can only dream of.

Its flagship Visage imaging platform continues winning major contracts with leading US hospitals, creating significant long-term revenue visibility. Radiologists, which are in short supply, and health systems rely on fast, reliable, cloud-based imaging, and Visage has become the gold standard in the industry.

Bell Potter recently upgraded its shares to a buy rating with a $320.00 price target.

REA Group Ltd (ASX: REA)

A third outstanding business I would target is REA Group, the dominant force in Australia’s online property advertising market.

REA Group has built one of the strongest digital network effects in the country, buyers flock to the platform because it has the most listings, and sellers flock to the platform because it has the most buyers.

This virtuous cycle gives REA Group significant pricing power and the ability to keep expanding into adjacent services such as financial products, landlord tools, and international ventures. Even during softer periods in the housing cycle, REA Group continues to grow revenue through depth products and premium placement offerings.

A major market crash wouldn’t change the long-term direction of Australia’s property market, nor would it diminish REA’s dominance. It would simply make one of Australia’s strongest digital businesses cheaper.

Bell Potter has a buy rating and $244.00 price target on the realestate.com.au operator’s shares.

The post What I’d buy first if the ASX share market fell 30% appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares could rise 25% to 30%
• How to make $50,000 of passive income a year from ASX shares
• My plan of attack for the next share market crash
• 3 ASX 200 shares that could be top buys for growth
• 3 ASX shares I’d buy with $20,000 today

Motley Fool contributor James Mickleboro has positions in Pro Medicus, REA Group, and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and ResMed. 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 Macquarie Group and ResMed. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Consumer staples was the only ASX 200 market sector to finish in the green amid a highly volatile week, rising just 0.03%.

The S&P/ASX 200 Index (ASX: XJO) experienced significant fluctuations last week.

The US market wobbled and the ASX 200 followed suit, hitting a near six-month low before closing 2.52% lower for the week.

Bell Potter described a “sharp derating” of tech stocks, with the sector the worst performer of the week.

Tech shares fell 4.07% amid persistent fears of an artificial intelligence (AI) bubble.

Additionally, both the technology and financials sectors fell to six-month lows as expectations of a US interest rate cut faded.

Australian wages and jobs data released last week did nothing to change expectations that our cash rate will stay on hold as well.

The markets are currently pricing a 6% chance of a rate cut in December, and Betashares chief economist David Bassanese said the “benign” wages and jobs data “should not shift the needle significantly either way regarding the RBA outlook for interest rates”.

Bell Direct market analyst, Sophia Mavridis described last week’s volatility:

… the Australian share market dropped to a near six-month low before rebounding.

The benchmark ASX 200, which lost around $220 billion dollars in cumulative value over the last four weeks, found critical support after a week of global uncertainty.

Now, the drop was driven by mounting concerns over lofty technology valuations and a general global risk-off mood ahead of key US earnings.

However, the mood shifted following a blowout earnings report from us chip giant Nvidia, which eased the global fears of an impending AI bubble pop and sparked a major relief rally …

However, that relief rally on Thursday was short-lived, with fear returning to the market on Friday and ASX 200 shares falling 1.59%.

ASX 200 still expensive, says fundie

Over the past month, the ASX 200 has fallen by more than 7% after hitting a record of 9,115.2 points in mid-October.

Despite the fall, experts say the market is still expensive.

Blackwattle Investment Partners said the ASX 200 is trading on a 21x forward price-to-earnings (P/E) ratio.

This compares to a 10-year average of about 16x.

Consumer staples shares led the ASX sectors last week

Amid the volatility, it was fitting that consumer staples, one of the market’s most defensive sectors, came out on top.

The share price of the sector’s largest company, Woolworths Group Ltd (ASX: WOW), fell 0.57% to $28.08.

Coles Group Ltd (ASX: COL) shares rose 0.54% to $22.43.

The A2 Milk Company Ltd (ASX: A2M) share price rose 1.52% to $9.36.

The share price of liquor retailer and hotels owner Endeavour Group Ltd (ASX: EDV) fell 0.27% to $3.66.

The ASX 200’s largest pure-play wine share, Treasury Wine Estates Ltd (ASX: TWE) fell 3.12% to close at a 52-week low of $5.58.

IGA network owner Metcash Ltd (ASX: MTS) fell 2.08% to $3.76 per share.

ASX 200 agriculture share Graincorp Ltd (ASX: GNC) recovered 5.76% to close at $8.45 apiece.

This followed a near-10% fall the week before after the company’s FY25 report disappointed investors.

Bega Cheese Ltd (ASX: BGA) shares fell 0.51% to close at $5.90 on Friday.

The Elders Ltd (ASX: ELD) share price lifted 8.61% to $7.57 on the back of a strong FY25 report released on Tuesday.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Consumer Staples (ASX: XSJ)	0.03%
A-REIT (ASX: XPJ)	(0.79%)
Healthcare (ASX: XHJ)	(0.79%)
Consumer Discretionary (ASX: XDJ)	(1.22%)
Communication (ASX: XTJ)	(1.48%)
Industrials (ASX: XNJ)	(1.81%)
Financials (ASX: XFJ)	(2.85%)
Energy (ASX: XEJ)	(3.3%)
Utilities (ASX: XUJ)	(3.76%)
Materials (ASX: XMJ)	(4.01%)
Information Technology (ASX: XIJ)	(4.07%)

The post Why did the ASX 200 dive to a near six-month low last week? appeared first on The Motley Fool Australia.

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