A new financial year is on the horizon, so what better time to look at making some new investments.
But which ASX 200 shares could be top picks for FY 2027 and beyond? Let's take a close look at two that I think could be worth considering:
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CSL Ltd (ASX: CSL)
The first ASX 200 share to look at is CSL.
There is no point pretending the past couple of years have been easy. CSL has disappointed investors, downgraded expectations, faced pressure in parts of its portfolio, and seen confidence in the stock fall sharply.
This means that CSL shares are no longer priced like an untouchable market darling. The biotech company is being valued like one with problems to solve. Some of that caution is fair, but the share price may now be offering a more compelling risk/reward balance than it has for some time.
The core business still has major strengths. CSL remains a global leader in plasma therapies, vaccines, and specialty medicines. Demand for many of its products is tied to healthcare needs rather than short-term consumer spending.
If management can stabilise expectations, rebuild margins, and show that earnings growth is returning, the recovery potential could be significant.
This is not the low-risk blue chip it once appeared to be. But for investors willing to look through the bad news, CSL could be one of the more interesting turnaround opportunities on the ASX 200.
Xero Ltd (ASX: XRO)
Another ASX 200 share that could be worth buying in FY 2027 is Xero.
Xero has already become an important platform for small businesses, accountants, and bookkeepers. But the bigger opportunity is not just accounting software.
The company is building deeper connections into the financial lives of small businesses. Invoicing, payroll, payments, bank feeds, reporting, compliance, and adviser tools all sit inside the same ecosystem.
That can make Xero increasingly difficult to replace once a business is fully embedded on the platform.
The next stage of growth may come from expanding the value of each customer relationship. Automation, artificial intelligence, payments, lending connections, and workflow tools could all help Xero become more useful over time.
The stock will not be cheap if judged only by near-term earnings multiples. But high-quality software companies rarely look cheap when they are executing well.
For investors with a long-term view, Xero remains one of the ASX 200's strongest technology growth stories.
