Tag: Stock pick

Short selling is one of the most transparent forms of market pessimism available.

When professional investors bet against a stock, they not only demonstrate their conviction but also send a signal to the market.

This week, three well-known ASX shares are attracting significant short interest.

Should investors be worried?

WiseTech Global Ltd (ASX: WTC)

WiseTech is down 43% year to date and 63% over the past twelve months.

The short sellers who have been betting against WiseTech shares have been richly rewarded in 2026.

According to the latest ASIC short position data, 7.93% of WiseTech shares are currently held as short positions, placing it among the more heavily shorted stocks in the ASX technology sector.

The bear case rests on three pillars.

First, the company announced it would cut approximately 2,000 jobs as part of a two-year AI-linked restructuring program, nearly a third of its total workforce, attracting union intervention and a Fair Work Commission claim.

Second, the Q3 FY2026 update confirmed that one-off integration costs related to the E2open acquisition would reach US$45 million to US$50 million in FY2026, materially compressing profit margins.

Third, analysts have cut the consensus full-year FY2026 EPS forecast as earnings forecasts have been revised downward following the integration cost blowout.

However, there is also a credible counter-argument in favour of WiseTech.

WiseTech’s CargoWise platform is used by all of the world’s top 25 global freight forwarders. The platform has high switching costs, giving strong future revenue visibility.

Bell Potter sees strong upside from current levels, and the business model continues to generate strong recurring revenue despite the near-term headwinds.

The bears may be right in the short term, but the long-term case is considerably harder to dismiss.

Cochlear Ltd (ASX: COH)

Cochlear shares are down 61% year to date, making the company one of the worst-performing large-cap ASX stocks in 2026.

The short sellers targeting Cochlear are betting that the April earnings downgrade marks the beginning of a more sustained deterioration. Today, 4.7% of outstanding shares are reported as being held short.  

Their case rests on two concerns.

First, the 30% guidance cut was driven partly by hospital capacity constraints and declining hearing aid referrals in developed markets, trends that could persist for several quarters.

Second, Morgans retained a hold rating and cut its price target to $107.17, while Macquarie slashed its target from $239 to $115, signalling genuine broker uncertainty about the recovery timeline.

Nevertheless, the bull case must also be considered.

Cochlear holds approximately 50% global market share in a market with just 3% penetration of an addressable patient population exceeding six million people in developed markets alone.

Jarden sees significant upside from current levels, and CEO Dig Howitt has been clear that surgeries are being delayed, not cancelled. He points specifically to short-term disruptors such as the conflict in the Middle East as an explanation for this trend.

Lendlease Group (ASX: LLC)

Lendlease shares crashed 6% yesterday after the company announced the sale of its Milano Santa Giulia development rights for $250 million. This translated into the booking of a $175 million post-tax operating loss.

The stock is down 55% over the past twelve months.

The short sellers (6.37% of total shares) have the most straightforward case of the three.

Lendlease is selling assets at material discounts to book value, recognising significant losses in the process. This raises questions about whether the remaining portfolio is also overvalued on the balance sheet.

Furthermore, each divestment removes future earnings potential, making it harder to see how the business rebuilds to a meaningfully larger earnings base in the medium term.

However, Lendlease management pointed to more than three billion dollars in liquidity and a Moody’s investment grade credit rating, arguing the balance sheet can absorb the losses while the simplification strategy plays out.

Foolish takeaway

Short sellers are sometimes right, but they are rarely right forever.

WiseTech, Cochlear, and Lendlease each face real near-term challenges that justify some level of caution.

However, all three also carry longer-term qualities that suggest the current pessimism may be creating opportunities for patient investors willing to accept short-term volatility.

The post Short sellers are targeting these 3 ASX shares this week. Are they right? appeared first on The Motley Fool Australia.

More reading

• Top 10 ASX shares bought and sold by investors in May
• Here are the top 10 ASX 200 shares today
• 3 ASX tech shares I’d buy as they rebound from the AI selloff
• Why DroneShield, Lendlease, PlaySide, and ResMed shares are tumbling today
• Guess which ASX 200 stock is crashing 8% today on $250 million divestment news

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

One of the hardest things for any management team to do is admit when something is not working.

On the 22 May 2026, Guzman y Gomez Ltd (ASX: GYG) did exactly that.

Co-CEO and founder Steven Marks had spent three months on the ground in Chicago.

His conclusion, delivered to shareholders, was that the US business required far more time and capital than originally expected.

He said:

Having spent the last 3 months in the US, I realized this was going to take significantly more time and capital than we had expected. The current performance of the US business could not justify continued investment of shareholder capital.

Guzman y Gomez shares surged as much as 20.58% on the day, closing 9.57% higher at $19.81.

Why the US exit is actually good news for Guzman y Gomez shares

At first glance, exiting the world’s largest fast food market sounds like bad news.

In reality, it removes one of the biggest overhangs that have weighed on Guzman y Gomez shares since the company’s ASX debut.

Guzman y Gomez entered the US market in 2020 with high hopes.

However, the business struggled to differentiate from rival Chipotle, and the challenges of operating in Chicago proved harder than management anticipated.

The US losses had been dragging on overall group numbers and absorbing management attention.

This attention could have been focused on the far more profitable Australian business.

The exit costs are contained.

Guzman y Gomez expects a one-off financial hit of between US$30 million and US$40 million, mostly non-cash.

Actual cash outflows are not expected to exceed US$15 million.

That is a manageable price to pay for a clean slate.

The Australian business is performing strongly

With the US distraction removed, investors can now focus on what really matters: the Australian growth story.

Guzman y Gomez lifted its Australia Segment underlying EBITDA guidance for FY2026 to approximately $85 million, representing growth of 29% on the prior year.

The company currently operates 237 restaurants in Australia, with a long-term target of 1,000.

That pipeline of 108 new sites already approved and in development represents a visible growth path.

Furthermore, the international master franchise model in Singapore and Japan is working well.

Singapore opened its 24th restaurant this week.

Both markets are guiding to further openings over the next 12 months.

These are capital-light, royalty-style exposures that cost Guzman y Gomez almost nothing to maintain and prove that the brand travels.

What Bell Potter thinks about Guzman y Gomez shares

The broker community responded decisively to the announcement.

Bell Potter upgraded Guzman y Gomez shares to a buy rating from hold with an improved price target of $24.50, from a prior target of $22.10.

The broker said:

We welcome the US exit as a previous overhang removed on the stock and see the switch to focusing on the core Australia opportunity as more beneficial to shareholders. We are confident in the medium-term Australia opportunity, backed by a pipeline of 108 restaurants, as well as the successful master franchising operation in Singapore and Japan.

However, with the US overhang now fully removed and the 29% Australian EBITDA growth confirmed, several analysts believe the Bell Potter target itself could prove conservative.

Citi, which had already been sceptical about the US prospects, called the exit decision the right one.

The broker noted there is “significant growth” in Australia where the long-term target of 1,000 restaurants has barely been scratched.

For context, Guzman y Gomez shares traded as high as $43 in December 2024, before the US concerns mounted.

A return even to half that level from today’s price of $19.81 would represent significant upside.

Foolish takeaway

Guzman y Gomez shares are not without risk.

The US exit signals a painful lesson learned and takes one major growth option off the table.

Competition in Australia from other quick service restaurant chains remains significant.

However, the decision removes what had been the most persistent valuation overhang on Guzman y Gomez shares since listing.

What remains is a 29%-growing Australian restaurant business with a clear path to 1,000 locations, a capital-light international franchise model, and a founder back in Australia focused entirely on the core opportunity.

For long-term investors, the case for Guzman y Gomez shares looks considerably cleaner today than it did a week ago.

The post Why Guzman y Gomez shares could shoot 30% higher after exiting the US market appeared first on The Motley Fool Australia.

More reading

• Here are the 10 most shorted ASX shares
• Why did ASX 200 retail shares lead the market last week?
• Top brokers name 3 ASX shares to buy next week
• Why these ASX 200 shares could shoot 20% and 50% higher
• A rare buying opportunity in 1 of Australia’s top shares?

Motley Fool contributor Mark Verhoeven 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.

For 27 years, Australian investors have enjoyed one of the most generous capital gains tax concessions in the developed world.

Buy an asset, hold it for more than twelve months, and the government only taxes half your gain.

That concession, introduced by the Howard government in 1999, shaped how Australians invest in ASX shares, property, and managed funds.

From 1 July 2027, it is gone.

The 2026 federal budget replaced the 50% CGT discount with a system of inflation indexation and introduced a 30% minimum tax on capital gains.

For ASX investors, the implications are significant and deserve careful attention.

What actually changed

Under the old system, an investor who bought ASX shares for $10,000 and sold them ten years later for $60,000 would pay tax on only $25,000 of that $50,000 gain.

This would halve the taxable amount regardless of inflation.

Under the new system taking effect from 1 July 2027, the cost base of the investment is adjusted for inflation before calculating the gain.

In a low-inflation environment, that might mean the investor only gets credit for a small reduction in the taxable gain.

In a high-inflation environment, the benefit could be more meaningful.

Critically, a 30% minimum tax rate applies to all capital gains made from 1 July 2027.

This means that investors cannot reduce their CGT liability by selling assets in years when their income is low, such as early retirement.

Furthermore, assets purchased after 12 May 2026 will be treated wholly under the new system, with no access to the 50% discount on any portion of the gain.

Investors who already hold shares bought before 12 May 2026 will receive transitional treatment: the 50% discount continues to apply to gains accrued up to 30 June 2027, with the new rules applying only to gains accruing after that date.

Who wins and who loses

The changes are not uniformly bad for ASX investors.

Indeed, for long-term holders in a period of sustained inflation, cost base indexation can actually produce a better outcome than the 50% discount.

Consider an investor who buys $10,000 of ASX shares today and holds them for 20 years through a period of sustained high inflation averaging 7% per annum.

The indexed cost base after 20 years would be approximately $38,700, meaning only $21,300 of a $60,000 sale price would be taxable under the new system.

That compares favourably to $25,000 taxable under the old 50% discount.

However, investors in low-inflation periods, or those who generate large nominal gains over short periods, will generally be worse off.

The superannuation silver lining

One of the most important aspects of the new rules is what they do not cover.

Capital gains on assets held inside superannuation are not affected by these changes.

Superannuation funds retain their existing one-third CGT discount on assets held for more than twelve months.

That makes superannuation an even more powerful long-term wealth-building vehicle relative to a brokerage account than it was before the budget.

For investors who are not yet maximising their concessional and non-concessional super contributions, the new CGT environment strengthens the case for doing so before 1 July 2027.

What it means for how ASX investors should think

The new rules create three important shifts in how Australian investors should approach ASX share ownership.

First, the window before 1 July 2027 is now an opportunity.

Investors holding shares with large embedded gains may consider whether to realise those gains before the new regime takes effect, locking in the 50% discount on all gains accrued to that date.

Second, buy-and-hold investing inside superannuation becomes more attractive than ever.

Third, the 30% minimum tax makes trust structures less advantageous for CGT planning.

William Buck notes that structuring decisions will become materially more complex for investors who currently hold assets through discretionary trusts.

What about fully-franked dividends?

One thing the budget did not change is the franking credit system.

Fully-franked dividends from ASX shares, including those paid by Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), and BHP Group Ltd (ASX: BHP), remain fully tax-effective for Australian shareholders.

For income-focused investors who rely on dividend income rather than capital gains, the budget changes are largely neutral.

That may make high-quality, fully-franked dividend payers even more attractive relative to growth stocks in the post-2027 environment, as the tax advantage of capital gains versus dividend income narrows.

Foolish Takeaway

It is important to note that these changes are proposed but not yet legislated.

Detailed exposure draft legislation and ATO guidance are still to be released.

Nonetheless, the 50% CGT discount shaped a generation of Australian investing behaviour.

Its replacement will reshape it again.

The changes are not all negative, and for long-term super investors, they may matter less than the headlines suggest.

But for ASX investors holding large gain positions outside superannuation, the window before 1 July 2027 is now worth planning around.

The post Why Australia’s new capital gains tax changes could reshape how ASX investors build wealth appeared first on The Motley Fool Australia.

More reading

• Top 10 ASX shares bought and sold by investors in May
• Here are the top 10 ASX 200 shares today
• This ASX 300 stock is back in the spotlight after a US Army test
• 3 ASX tech shares I’d buy as they rebound from the AI selloff
• Worried about capital gains tax and ASX shares? Here’s why you shouldn’t be

Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended 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.

S&P/ASX 200 Index (ASX: XJO) shares edged 0.76% higher in May amid no resolution for the war in Iran.

The global oil shock continued, with the Strait of Hormuz remaining effectively closed with scores of oil tankers stranded.

The Reserve Bank of Australia raised interest rates for a third time in 2026 last month due to resurgent inflation.

Softer-than-expected inflation data and 18,600 job losses in April suggest the RBA is unlikely to raise rates again this month.

The market expects the RBA to keep interest rates on hold at 4.35% on 16 June.

Changes to capital gains tax (CGT) proposed in the Federal Budget shocked some investors last month.

The 50% CGT discount for assets held for more than a year will be replaced by cost-base indexation and a minimum 30% CGT rate from 1 July 2027.

Existing investments in ASX shares and property will be grandfathered.

That means the 50% CGT discount will continue to apply to gains accrued before 1 July 2027 on those assets.

After 1 July 2027, cost base indexation will apply for future gains on those existing investments.

There is one exception under the changes. Investors who buy new properties will be able to choose between the two CGT methods.

Private wealth and investment advisory firm, Medallion Financial Group, says the changes may encourage more focus on yield.

For example, investors may prefer to accumulate more franked ASX dividend shares over growth investments.

Drew Meredith, a principal adviser at Wattle Partners, provides 5 tips for investors considering topping up their dividend stocks.

Most bought ASX shares in May

The following ASX shares and ETFs were the most bought by investors using the Bell Direct trading platform last month.

The rankings are based on order of net value of buy orders, minus sell orders, placed by Bell Direct clients.

Given the number of experts discussing the enhanced appeal of dividends under the CGT changes, it’s interesting to see the market’s largest ASX dividend ETF at the top of the buy list.

Rank	ASX share or ETF
1	Vanguard Australian Shares High Yield ETF (ASX: VHY)
2	Accent Group Ltd (ASX: AX1)
3	Vanguard Australian Shares Index ETF (ASX: VAS)
4	Vanguard MSCI Index International Shares ETF (ASX: VGS)
5	Amplitude Energy Ltd (ASX: AEL)
6	CSL Ltd (ASX: CSL)
7	Elders Ltd (ASX: ELD)
8	WiseTech Global Ltd (ASX: WTC)
9	4DMedical Ltd (ASX: 4DX)
10	Vanguard All-World ex-US Shares Index ETF (ASX: VEU)

Source: Bell Direct

Most sold ASX shares last month

Rank	ASX share
1	BHP Group Ltd (ASX: BHP)
2	Commonwealth Bank of Australia (ASX: CBA)
3	Fortescue Ltd (ASX: FMG)
4	Macquarie Group Ltd (ASX: MQG)
5	Westpac Banking Corporation Ltd (ASX: WBC)
6	PLS Group Ltd (ASX: PLS)
7	Smartgroup Corporation Ltd (ASX: SIQ)
8	Rio Tinto Ltd (ASX: RIO)
9	Telstra Group Ltd (ASX: TLS)
10	Woodside Energy Group Ltd (ASX: WDS)

Source: Bell Direct

The post Top 10 ASX shares bought and sold by investors in May appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 3 ASX tech shares I’d buy as they rebound from the AI selloff
• Are ASX 200 bank shares a buy in June?
• 3 ASX mining shares to buy: experts
• Why 4DMedical, IperionX, Pro Medicus, and Ventia shaares are storming higher today

Motley Fool contributor Bronwyn Allen has positions in BHP Group, Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF, and Vanguard Msci Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Macquarie Group, Smartgroup, Telstra Group, and WiseTech Global. The Motley Fool Australia has recommended Accent Group, BHP Group, CSL, Elders, Vanguard Australian Shares High Yield ETF, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was a volatile and ultimately negative start to the trading week for the S&P/ASX 200 Index (ASX: XJO) and ASX investors this Monday.

After starting the week’s trading at an opening loss this morning, the ASX 200 spent most of the day bouncing around, but ended up closing down 0.026%. That leaves the index at 8,729.4 points.

This cold-shower start to the trading week for Australian investors follows a rosier finish to the American week on Friday night (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) was in decent form, rising a confident 0.72%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) wasn’t quite as enthusiastic, but still managed a 0.2% gain.

But let’s get back to this week and the local markets now, and check out how the various ASX sectors traversed today’s tough trading conditions.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• 3 ASX tech shares I’d buy as they rebound from the AI selloff
• Worried about capital gains tax and ASX shares? Here’s why you shouldn’t be
• Why 4DMedical, IperionX, Pro Medicus, and Ventia shaares are storming higher today
• IperionX gains U.S. Army validation as titanium fasteners outperform steel
• Why are Pro Medicus shares rocketing 12% today?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband, Life360, Megaport, SiteMinder, Technology One, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360, SiteMinder, WiseTech Global, and Xero. The Motley Fool Australia has recommended Aussie Broadband, Pro Medicus, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

IperionX Ltd (ASX: IPX) shares are in the green on Monday after the titanium tech company released new US testing results.

At the time of writing, the IperionX share price is up 2.74% to $5.99.

The stock pushed as high as $6.08 in morning trade before some investors took profit off the table.

Even after that pullback, IperionX shares are up 46% over the past month and more than 62% since this time last year.

Here’s the latest.

US testing puts titanium in focus

According to the release, IperionX has reported positive titanium fastener test results from 2 independent testing programs.

The programs were completed by the US Army DEVCOM Ground Vehicle Systems Center and Westmoreland Mechanical Testing & Research.

The tests compared IperionX titanium fasteners with high-strength SAE Grade 8 steel fasteners, which are used in demanding defence and industrial applications.

The main result came from IperionX’s larger 3/4-10 titanium fasteners, which demonstrated yield torque of 563 to 615 ft-lbf in US Army testing.

That compared with about 480 to 502 ft-lbf for high-strength Grade 8 steel fasteners under the same test program.

Based on the midpoint, IperionX said the result was nearly 20% above the steel benchmark.

The smaller 3/8-16 fasteners also performed well, achieving average yield torque above high-strength Grade 8 steel fasteners.

In another positive sign, 3 of the 5 IperionX titanium fasteners did not yield at the initial US Army test protocol limit.

What investors are watching

While today’s announcement doesn’t include new revenue, it does give investors another sign of progress with IperionX’s titanium technology.

The company is trying to prove its process can produce titanium parts that meet the demands of large industrial customers.

Fasteners are small parts, but they’re used in large numbers across defence, aerospace, marine, and industrial equipment.

IperionX said its titanium Ti-6Al-4V is typically 40% to 45% lighter than steel, which is one of the main reasons titanium is attractive in these markets.

The independent testing also showed yield strength of 135 to 137 ksi and ultimate tensile strength of 149 to 152 ksi.

IperionX said those results were above typical aerospace Grade 5 titanium fastener benchmarks.

Foolish Takeaway

IperionX has become one of the more closely watched mid-cap stocks on the ASX.

The company now has a market capitalisation of about $2.03 billion, so plenty of expectation is already built into the share price.

Today’s result is another step forward, but investors will want to see what comes next.

The key question is whether this can lead to bigger customer interest, and real revenue.

The post This ASX 300 stock is back in the spotlight after a US Army test appeared first on The Motley Fool Australia.

More reading

• Why 4DMedical, IperionX, Pro Medicus, and Ventia shaares are storming higher today
• IperionX gains U.S. Army validation as titanium fasteners outperform steel
• These were the best-performing ASX 200 shares in May
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares 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.

ASX tech shares are rebounding on Monday as investors pile back into the sector.

I think this could make it a good time to look at some of the sector’s best names.

Concerns about artificial intelligence (AI) disruption and the so-called SaaSpocalypse have weighed on sentiment recently. But I think the strongest ASX tech companies can use AI to improve their products, rather than be replaced by it.

With several quality ASX tech shares still down heavily from their highs, I think these three could be worth buying now.

WiseTech Global Ltd (ASX: WTC)

WiseTech Global has been one of the most heavily sold-off ASX tech shares, but I think the long-term business remains highly attractive.

The company’s CargoWise platform is used by logistics providers and freight forwarders to manage global trade. That is a complicated area involving shipments, customs, compliance, documentation, warehousing, and transport networks.

This is the sort of market where software can be extremely valuable.

I do not see AI as a simple threat here. In fact, I think it could make WiseTech’s platform more useful over time. Logistics still involves a lot of manual work, repetitive data entry, document checks, and exception handling.

If AI can help reduce those pain points, customers may become even more reliant on powerful workflow software.

Xero Ltd (ASX: XRO)

Xero is another ASX tech share I would buy into the rebound.

The company has a strong position in small business accounting software, but I think the bigger opportunity is to become more central to how small businesses manage their finances.

That means more than bookkeeping. It can include invoicing, payroll, payments, tax, reporting, cash flow tools, and better financial insights.

Small business owners do not want more admin. They want software that helps them save time, understand their numbers, and make better decisions.

This is why I think AI could become an opportunity for Xero rather than just a risk. If the company can use AI to automate basic tasks, surface useful insights, and make the platform easier to use, it could strengthen the customer proposition.

The US opportunity also remains important. It will not be easy, but Xero does not need to win the whole market to create meaningful long-term value.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is arguably the steadier name in this group.

It provides enterprise software to governments, councils, universities, and large organisations. These customers need reliable systems for finance, payroll, assets, student administration, and other important functions.

I like that because the software is not a nice-to-have extra. It supports core operations.

TechnologyOne has built a strong record of execution, recurring revenue, and customer retention. It also has a long-term growth opportunity in the UK, where it is trying to repeat some of the success it has achieved in Australia.

The valuation can be demanding at times, so investors need to be comfortable paying for quality. But I think this is one of the ASX tech shares best placed to keep compounding over time.

Foolish takeaway

I do not think the AI debate is going away. Investors will keep questioning which software companies are threatened and which ones can become stronger.

That is why I prefer ASX tech shares with important customer workflows, proven products, and room to keep improving their platforms.

This rebound may not move in a straight line. But after the heavy selling across parts of the sector, I think these three ASX tech stocks are worth buying before confidence returns more fully.

The post 3 ASX tech shares I’d buy as they rebound from the AI selloff appeared first on The Motley Fool Australia.

More reading

• What happened to WiseTech shares in May?
• Are these 2 oversold ASX shares too cheap to ignore in June?
• ASX shares to buy now: How I’d invest a $1,000 lump sum
• Is it time to get greedy with Xero shares?
• I’d aim for $1 million in retirement buying just 10 ASX 200 shares

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 Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global 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.

Much has been made of the recent federal budget, which was, hands down, one of the most controversial in years. Early last month, Prime Minister Anthony Albanese and Treasurer Jim Chalmers made the annual reveal of exactly how much money the government expects to raise over the coming financial year, and how it plans to spend it. As is usual these days, there was more spending than raising. But one of the most controversial changes the government has made is a revamp of the capital gains tax (CGT).

Anyone who has bought, and sold, ASX shares or exchange-traded funds (ETFs) before should already be familiar with CGT. It is the tax we are required to pay on profits earned from the sale of an investable asset. As ASX shares are investable assets, they are covered by capital gains tax. As is investment property, business gold bullion, Bitcoin, fine art, and any other investment-grade asset.

CGT changes cause a stir

As we covered last month, CGT has worked in the same way for almost two decades. If an asset has made its owner a capital gain upon its sale, that investor must add the value of that gain to their taxable income in the financial year that the sale was made. If that asset was held for longer than one year, the investor is entitled to a 50% deduction on the profit for tax purposes.

However, last month, the government announced that we would be returning to a pre-1999 model for capital gains tax from July 2027. From that date, investors will lose access to the 50% discount, which will be replaced by a mechanism that allows investors to only deduct the rate of inflation from their long-term gains.

It’s fair to say that this has resulted in a bit of an outcry from investors all around the country. Some are even saying that the new CGT will remove the incentive to invest in ASX shares at all.

However, I think that this attitude is misplaced, and is dangerous for anyone who gives it the time of day.

Yes, the changes may result in many investors getting a larger tax bill upon sale of their ASX shares.

There are a few things investors need to keep in mind though.

Why ASX shares are still a buy after the capital gains tax changes

Firstly, tax is still only payable on profits one makes. If you buy $10,000 worth of ASX shares and sell them five years later for $20,000, only $10,000 is taxable as income. Thus, the idea that the capital gains tax changes make stock market investing undesirable is laughable.

Secondly, the profits we make from investing in ASX shares will still be taxed at a lower rate than the salary or wage income we make from our jobs. I’ve never heard of someone quitting their job because they have to pay tax on the income they earn. So why would anyone not invest in shares because any profits they make will earn them income that is taxed at a rate below their day jobs?

Thirdly, you may have heard much talk about a 47% tax rate. However, that is the top marginal tax rate in Australia, if we include the 2% Medicare levy. It only applies to income above $190,000 a year. As such, the vast majority of ASX stock market investors will not be paying anything close to 47% on their capital gains from ASX shares. It’s far more likely that the maximum tax rate you will pay will be 30%. And that’s before discounting inflation.

Of course, everyone’s personal circumstances are different, and you should talk to a tax professional about how the capital gains tax changes might affect you. But from where I’m sitting, most ASX investors don’t have much to fear. ASX shares helped Australians to build wealth well before 1999, and they will likely continue to do so after 2027.

The post Worried about capital gains tax and ASX shares? Here’s why you shouldn’t be appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. 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.

Most ASX 200 bank shares slumped in May as concerns about the Federal Budget’s property tax changes, higher interest rates, disappointing quarterly updates, and ongoing global volatility continued to spook investors.

What happened to the ASX 200 big four major banks in May?

Australia’s banking sector is dominated by the big four banks: Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), and ANZ Group Holdings Ltd (ASX: ANZ). 

Together, they make up around a quarter of the S&P/ASX 200 Index (ASX: XJO) by market capitalisation. 

CBA shares fell 5.6% in May and are trading around 1% lower again for the first day of June. At the time of writing, the ASX 200 bank shares are changing hands for $163.87 a piece.

Westpac shares fell 6.5% throughout the month, and are largely flat at the time of writing on Monday, at $36.02 a piece.

NAB shares also fell by 6.4% in May. At the time of writing, the bank shares are marginally higher, up around 0.4% to $37.48 each.

ANZ shares suffered a slightly smaller slump in May versus its peers. The bank stock fell 4% in May and has continued tumbling into the first day of June. At the time of writing, the shares are down around 0.5% to $35.03 a piece.

What about the mid-tier banks?

Bendigo and Adelaide Bank Ltd (ASX: BEN) shares fell 3.3%, and Bank of Queensland Ltd (ASX: BOQ) dropped nearly 7% in May. 

Macquarie Group Ltd (ASX: MQG) was the best performer by far and the only ASX 200 bank that saw a gain throughout the month. Its shares climbed around 1.5% in May.

It looks like Macquarie largely escaped the May bank sell-off. This is likely because it posted a stronger-than-expected FY26 result in the first week of the month.

Which ASX banks are a buy for June?

Macquarie Group is also the only ASX 200 bank share that brokers think can keep climbing higher.

Market Index data shows brokers have a buy rating on Macquarie Group shares. It tips around a 7% upside to $253.75 at the time of writing. 

Which ASX banks are a sell?

Analysts are concerned that CBA shares are still overvalued versus their peers. Market Index data shows brokers hold a strong sell rating on the ASX 200 bank’s shares. They tip a potential average 23.85% downside to $124.20 at the time of writing.

Brokers also rate Westpac shares a strong sell and tip a 6% downside to an average target price of $33.97 over the next 12 months.

NAB shares are a sell, but the average $39.21 target price still implies a potential 5% upside, at the time of writing.

Meanwhile, Bank of Queensland shares are rated a sell and are tipped to fall just over 1% to $6.14 each.

Which ones are a hold?

Brokers rate ANZ shares as a hold, and they tip a 3.2% potential upside to an average $36.20 target price, at the time of writing. 

Bendigo shares are also rated a hold, and brokers tip a 3% upside to an average target price of $10.66.

The post Are ASX 200 bank shares a buy in June? 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With so many shares to choose from on the Australian share market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are outlined below. Here’s why they are bullish on them:

Breville Group Ltd (ASX: BRG)

According to a note out of Macquarie, its analysts have retained their outperform rating and $37.10 price target on this appliance manufacturer’s shares. The broker has been looking at industry data and was pleased with what it saw. This is especially the case given that Breville has outperformed its industry benchmark over almost the whole of the last decade. The good news is that Macquarie appears to believe that this positive form can continue given its coffee products focus and expansion into new markets. It highlights China, India, and Japan as key growth markets for Breville over the long term. The Breville share price is trading at $28.89 on Monday.

Judo Capital Holdings Ltd (ASX: JDO)

A note out of Morgans reveals that its analysts have retained their buy rating on this small business lender’s shares with an improved price target of $2.15. The broker was pleased to see Judo Capital announce a securitisation transaction that is backed by small-medium business loans last week. Given that Judo Capital’s CET1 capital ratio was heading towards 11.5%, and breaching its target, the broker was expecting the company to have to launch a capital raising. However, due to this smart move by management, it shouldn’t need to. Looking ahead, the broker remains positive on the investment opportunity here and believes Judo Capital will deliver strong earnings growth between FY 2026 and FY 2028. The Judo Capital share price is fetching $1.49 at the time of writing.

Newmont Corporation (ASX: NEM)

Analysts at UBS have retained their buy rating and $195.00 price target on this gold giant’s shares. According to the note, the broker has been busy looking at the gold sector and the impact that higher costs could have on miners. It notes that this is coming at a time when the spot gold price has pulled back meaningfully from its highs and consensus expectations. While this is bad news for many gold miners, UBS highlights that Newmont has exposure to copper, which it believes will soften the blow. As a result, it remains positive and has named the company as one of its preferred gold exposures. The Newmont share price is trading at $150.72 on Monday afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

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