The ASX 200 Health Care Index (ASX: XHJ) dipped to an annual low in early-June but has made an incredible recovery over the past four months and is now up around 2% for the year to date.

The latest rally is great news for investors, but some ASX healthcare shares have now climbed into danger territory and are considered to be trading above fair value.

But not all of them have reached their peak just yet.

Here are three ASX 200 healthcare shares which could still have more room to run higher. And brokers forecast upsides ahead between 35% and 103% over the next 12 months.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix shares closed around 0.5% lower on Tuesday afternoon, at $12.79 each. The shares have now tumbled around 19% since Tuesday last week, when the company posted its third-quarter earnings for FY26.

For the three-month period ending 30th of September, Telix posted a 19% increase in its revenue year on year. This was around 1% lower from the second quarter of FY26, but still broadly in line with expectations.

The company has reaffirmed its FY26 revenue and said it is tracking in line with the upper end of guidance. 

The result was positive on paper, but it looks like it was a miss versus investor expectations. It seems that profit-taking investors have been selling up their stake in the company in anticipation of more share price declines ahead.

But the experts have a different view. TradingView data shows all brokers have a strong buy rating on the ASX healthcare shares. The $25.98 average target price implies an upside of 103% over the next 12 months, at the time of writing.

4DMedical Ltd (ASX: 4DX)

4DMedical shares also closed in the red on Tuesday afternoon, down around 2% to $3.61. The medical technology company's shares flew higher in early 2026, reaching an all-time high of $6.79 in mid-April. But they've since fallen and have been steadily trading somewhere between the low-$3 to high-$4 since May. 

For the year to date, the shares are down around 20%, but they're still a huge 89% higher than 12 months ago.

It's worth noting that the business is still very much in its growth phase. 4DMedical is working hard to expand its commercial footprint. It has secured approvals in Canada and New Zealand and is actively progressing commercialisation plans in Europe and Australia.

But it looks like investors want to see evidence that its growth can translate into sustainable earnings growth before jumping back on board.

The company's FY26 results in late-August were viewed positively. Highlights included a 21% lift in revenue to $7.1 million, and a 7% improvement in adjusted net loss to $32.9 million.

Management also said it plans to continue scaling its commercial partnerships and integrating new technologies, while building a competitive medical imaging and AI platform.

It looks like investors were pleased with the results, but it hasn't done much to build share price momentum back to previous highs.

But the experts are more bullish about the outlook for the ASX 200 healthcare shares. TradingView data shows two experts are split between a strong buy and a hold rating. But they both agree an upside is ahead. The $5.13 average target price implies a potential 42% upside, at the time of writing. 

Ebos Group Ltd (ASX: EBO)

Ebos shares closed around 3% lower on Tuesday afternoon, at $16.54 a piece. The shares have suffered a steep, and mostly sustained, share price decline so far in 2026 and the shares are now around 33% lower than 12 months ago.

The pharmaceutical wholesaler and distributor has multiple headwinds this year, including higher fuel price, which has affected its logistics and distribution business, leadership changes, and a contract wind down.

Investors have also been spooked by a wave of executive departures from Ebos over the past month. The Australian has reported that four senior staff members have resigned or been put on leave over the past month. The departures add to ongoing redundancies within the business amid an ongoing restructure.

Meanwhile, at its AGM last week, the company confirmed that while it still holds a wholesale contract with Chemist Warehouse New Zealand, which has been extended by agreement, it will now ramp down progressively through to the end of FY28 to give the company time to adjust its cost base.

Some investors are still coming to terms with the company's Chemist Warehouse Australian contract in 2024.

But the experts are confident that the business can emerge stronger following its current transition period. TradingView data shows the majority of analysts have a strong buy rating on the ASX healthcare shares. The $22.34 average target price implies a 35% potential upside, at the time of writing. 

The post 3 ASX 200 healthcare shares to buy with 35% to 103% upside ahead appeared first on The Motley Fool Australia.

After all, today's established ASX blue chips were once much smaller businesses, and investors who recognised their potential early could have enjoyed substantial returns.

Of course, not every promising growth share will go on to become a market leader.

But businesses with innovative products, large growth opportunities, and the ability to build lasting competitive advantages can be worth watching closely.

With that in mind, here are five ASX growth shares that could potentially become some of the market's leading companies over the next decade.

4DMedical Ltd (ASX: 4DX)

The first ASX growth share to consider is 4DMedical.

Investors familiar with the remarkable success of Pro Medicus Ltd (ASX: PME) may recognise some similarities in the opportunity 4DMedical is pursuing.

Both companies develop medical imaging technology that helps healthcare professionals make better decisions, with software that can be used across existing hospital imaging systems.

However, 4DMedical is at a much earlier stage of its commercial development.

Its technology allows doctors to examine how air and blood move through the lungs, potentially improving the diagnosis and treatment of respiratory conditions.

And there are encouraging signs that its products are gaining acceptance.

Its CT technology has secured US regulatory clearance and reimbursement, while leading institutions including Stanford University and Cleveland Clinic have adopted it commercially.

The company has also signed an agreement with SimonMed Imaging, which operates a network of 170 imaging centres across the United States.

In FY 2026, 4DMedical reported operating revenue of $7.1 million, while its products were being delivered at 540 sites globally.

These are promising developments, although its revenue remains modest and the business is not yet profitable.

But with $278 million in cash at the end of June and growing commercial interest, 4DMedical has resources to pursue its expansion.

If its technology eventually becomes widely adopted across hospitals and imaging centres, it could become a considerably larger business.

But 4DMedical isn't the only company with the potential to become a future ASX heavyweight.

Among the remaining four is a business already reaching more than 100 million people worldwide and another challenging a global industry leader worth approximately $38 billion.

And importantly, some are much further along the path towards becoming established market leaders.

So, which other ASX growth shares could eventually join the blue-chip ranks?

Hub24 Ltd (ASX: HUB)

Another company with the potential to become a major ASX blue chip is Hub24.

The investment platform provider has spent years taking market share from traditional wealth management businesses, and its growth shows little sign of running out of steam.

Its technology allows financial advisers to manage their clients' investments and superannuation more efficiently, while giving them access to a growing range of investment products.

And as more advisers move their clients onto modern platforms, Hub24 stands to benefit from increasing funds under administration and recurring revenue.

Its latest quarterly update revealed that total funds under administration had reached $168.6 billion at the end of September, up 15% year on year. The company also attracted $4 billion in net platform inflows during the quarter.

One of Hub24's biggest strengths is that it can generate additional revenue as more money flows onto its platform, without costs necessarily increasing at the same rate. This creates opportunities to expand profit margins and invest further in its technology.

With Australia's enormous superannuation and investment markets continuing to grow, Hub24 could become a substantially larger financial services business over the next decade.

Life360 Inc (ASX: 360)

Life360 has already achieved something that most technology companies can only dream of. That is attracting more than 100 million people to its platform.

At the end of June, its family safety application had approximately 102.4 million monthly active users worldwide.

But the opportunity is about more than simply adding users. Life360 is increasingly finding ways to generate revenue from its enormous audience through paid memberships, advertising, and partnerships.

Its second-quarter results demonstrated this potential, with revenue increasing 38% to US$159 million. Advertising revenue was particularly impressive, jumping more than fourfold to US$22 million.

And with international users growing faster than those in the United States, Life360 has an opportunity to build a much larger global business.

The challenge will be maintaining user engagement while expanding its commercial offerings without undermining the experience that attracted families in the first place.

If it can achieve this while continuing to improve profitability, Life360 could arguably become one of the ASX's most successful international technology businesses.

Light & Wonder Inc (ASX: LNW)

Another ASX growth share worth looking at is Light & Wonder. This gaming technology company is already a major international business, supplying gaming machines, casino games, and digital gaming products to customers around the world.

And there is a good example of just how large a successful company in this industry can become.

Its Australian-listed rival Aristocrat Leisure Ltd (ASX: ALL) is currently valued at approximately $38 billion, which makes it almost four times larger than Light & Wonder.

Light & Wonder is working to strengthen its competitive position through new gaming content, an expanding installed base of machines, and growth in online gaming.

Importantly, its strategy includes increasing recurring revenue from machines operated under revenue-sharing arrangements, rather than relying entirely on outright equipment sales.

The company's second-quarter results were encouraging, with adjusted EBITDA increasing 9% to US$383 million and adjusted free cash flow rising 50% to US$156 million.

And with continued investment in game development and opportunities to expand its gaming operations internationally, Light & Wonder could eventually become a much more valuable business.

There is still considerable ground to make up on Aristocrat, but its recent financial performance suggests it has the earnings potential to become an increasingly prominent ASX share.

Megaport Ltd (ASX: MP1)

A final ASX growth share that I think could eventually become a blue chip is Megaport.

The company initially made its name by allowing businesses to establish network connections between data centres and cloud providers without having to invest in traditional fixed infrastructure.

That remains an attractive business, particularly as organisations become increasingly dependent on cloud computing.

However, Megaport's expansion into artificial intelligence infrastructure has dramatically changed its growth outlook. Through its acquisition of Latitude.sh, the company is now supplying computing capacity to businesses developing and operating AI applications.

And demand has been strong. In September, Megaport announced three additional AI infrastructure contracts worth approximately $979 million, bringing the total value of strategic AI contracts announced since April to around $2.3 billion.

If these contracts deliver the expected earnings and Megaport continues growing its networking business, it could become a major participant in the global AI infrastructure market and have the potential to become one of Australia's leading technology companies.

The post Could these 5 ASX growth shares become the next generation of blue chips? appeared first on The Motley Fool Australia.

After yesterday's drop, it seemed investors were in the mood to keep selling this morning when the market opened sharply lower. However, the ASX 200 spent much of the day recovering, and only ended up closing with a loss of 0.094%. That leaves the index at 8,719.7 points.

This wild day on the Australian markets came after a gloomy mid-week session on the American markets this morning.

The Dow Jones Industrial Average Index (DJX: .DJI), in a strange coincidence, exactly matched today's showing from the ASX, falling 0.094%.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was far more decisive, dropping a hefty 1.88%.

Let's get back to the local markets now and take a look at how today's trading conditions percolated down into the various ASX sectors.

Winners and losers

Despite the market's slight loss, we saw many corners of the market do quite well.

First though, let's get the red sectors out of the way.

Leading the losers this Thursday were mining stocks. The S&P/ASX 200 Materials Index (ASX: XMJ) was hit hard, tanking by a nasty 3.95%.

Tech shares had a day to forget too, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) crashing 3.41%.

Gold stocks were no safe haven either. The All Ordinaries Gold Index (ASX: XGD) cratered by 2.88%.

Real estate investment trusts (REITs) were a little tamer, though, as you can see by the S&P/ASX 200 A-REIT Index (ASX: XPJ)'s 0.74% slump.

Our last losers this Thursday were energy shares. The S&P/ASX 200 Energy Index (ASX: XEJ) was set back by 0.04% today.

Let's turn to the winners now. Leading said winners this session were consumer staples stocks, with the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) rocketing up 3.47%.

Financial shares also had a strong day. The S&P/ASX 200 Financials Index (ASX: XFJ) soared 2.19%.

We can say the same for utilities stocks, evidenced by the S&P/ASX 200 Utilities Index (ASX: XUJ)'s 2.09% surge.

Communications shares also ran hot. The S&P/ASX 200 Communication Services Index (ASX: XTJ) jumped 1.54% today.

Healthcare shares didn't miss out, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) lifting 0.68%.

Nor did consumer discretionary stocks. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) bounced up 0.63% this Thursday.

Finally, industrial shares finished comfortably ahead, illustrated by the S&P/ASX 200 Industrials Index (ASX: XNJ)'s 0.28% improvement.

Top 10 ASX 200 shares countdown

Financial services stock Generation Development Group Ltd (ASX: GDG) was our winner this session. Generation shares exploded 17.16% higher today, closing out at $3.14 each.

There wasn't any news from Generation that easily explains this. However, the company has been bouncing back with a vengeance after recently hitting a 52-week low.

Here's how the other high flyers landed their planes:

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

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

By the time the markets closed, the index had added another 0.76% to finish at 8,783.2 points.

This encouraging start to the week's trading for ASX investors today followed a similarly bullish end to the American trading week on Saturday morning (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) was in fine form, gaining a healthy 0.83%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was a little less enthusiastic, but still managed a respectable 0.64% rise.

But let's return to this week and to our local markets now for a checkup on what the different ASX sectors were up to this session.

Winners and losers

Despite the market's rise this Monday, quite a few sectors still missed out on the buying.

The most prominent of those red sectors was communications stocks. The S&P/ASX 200 Communication Services Index (ASX: XTJ) had a shocker today, plunging 1.94%.

Real estate investment trusts (REITs) were also on the nose, with the S&P/ASX 200 A-REIT Index (ASX: XPJ) sinking 1.39%.

Consumer staples shares were no safe haven. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) retreated 0.56% this session.

Its consumer discretionary counterpart fared similarly, evident from the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ)'s 0.42% dive.

Energy shares were left out of the fun as well. The S&P/ASX 200 Energy Index (ASX: XEJ) slid 0.41% lower this Monday.

Our last losers were utilities stocks, with the S&P/ASX 200 Utilities Index (ASX: XUJ) slipping by 0.15%.

Our last losers were industrial shares. The S&P/ASX 200 Industrials Index (ASX: XNJ) inched 0.08% lower.

Turning to the green sectors now, it was financial shares that finished in front. The S&P/ASX 200 Financials Index (ASX: XFJ) had soared 1.56% higher by the time trading finished.

Mining stocks were also in high demand, illustrated by the S&P/ASX 200 Materials Index (ASX: XMJ)'s 1.52% surge.

Tech shares put on a decent show, too. The S&P/ASX 200 Information Technology Index (ASX: XIJ) roared 0.85% higher this Monday.

Gold stocks were just behind that, with the All Ordinaries Gold Index (ASX: XGD) jumping 0.84%.

Finally, healthcare shares had a great day, as you can see from the S&P/ASX 200 Healthcare Index (ASX: XHJ)'s 0.75% leap higher.

Top 10 ASX 200 shares countdown

Titanium stock IperionX Ltd (ASX: IPX) was our best performer on the charts this Monday. IperionX shares rocketed up 5.91% today to close at $2.33.

This came despite no news or announcements from the company.

Here's the rest of today's best:

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

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

That's because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top 10 most shorted ASX shares

• DroneShield Ltd (ASX: DRO) remains the most shorted ASX share despite its short interest easing from 15.2% to 14.5%. Short sellers may still be concerned about the ASIC investigation into the counter-drone technology company's previous market disclosures and share trading.
• Lotus Resources Ltd (ASX: LOT) has seen its short interest climb from 13.3% to 14%. The uranium producer is working towards steady-state production at Kayelekera, but short sellers may be questioning how quickly it can achieve its targets and at what cost.
• Boss Energy Ltd (ASX: BOE) has short interest of 13.1%, which is largely unchanged week on week. Boss recently revised its long-term development plan for Honeymoon, and short sellers may be sceptical about the production and cost assumptions underpinning its outlook.
• PLS Group Ltd (ASX: PLS) has moved higher up the table, with 12.8% of its shares held short. Despite improving lithium market conditions, short sellers could be betting that the recovery in prices will be difficult to sustain.
• Zip Co Ltd (ASX: ZIP) has seen its short interest ease slightly to 12.6%. Short sellers may still be concerned that elevated interest rates could put pressure on the buy now pay later company's customers and funding costs, potentially weighing on growth and profitability.
• IperionX Ltd (ASX: IPX) has short interest of 12.5%, down from 12.8%. The titanium producer continues to make technological progress, but short sellers may believe commercial-scale production and the earnings needed to justify its valuation remain some way off.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has 11.7% of its shares held short, down slightly week on week. Although its restructuring has improved franchisee profitability and cash flow, short sellers appear to doubt whether sales can recover quickly enough to support a sustained earnings turnaround.
• Lynas Rare Earths Ltd (ASX: LYC) has returned to the top ten with short interest of 11.5%. This could reflect concerns over the cost and execution risks associated with its proposed acquisition of Meteoric Resources and the development of its Caldeira rare earths project in Brazil.
• Paladin Energy Ltd (ASX: PDN) has seen its short interest increase from 11% to 11.5%. With the production ramp-up at Langer Heinrich completed, short sellers may now be focusing on uranium price expectations and the costs associated with its future growth projects.
• 4DMedical Ltd (ASX: 4DX) has slipped to tenth place after its short interest fell from 11.9% to 11.1%. Despite increasing commercial adoption of its lung imaging technology, short sellers may believe its valuation is difficult to justify given its relatively modest revenue base.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

That's because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top 10 most shorted ASX shares

• DroneShield Ltd (ASX: DRO) has returned to the top of the table with short interest of 15.2%, up from 14.3% last week. The counter-drone technology company remains a major target for short sellers, possibly due to the uncertainty created by the ongoing ASIC investigation.
• Lotus Resources Ltd (ASX: LOT) has seen its short interest fall sharply to 13.3%. Short sellers may have concerns over the uranium producer's production ramp-up at Kayelekera and how quickly it can reach its longer-term targets.
• Boss Energy Ltd (ASX: BOE) has seen its short interest rise to 13.2%. Despite achieving its revised FY 2026 production guidance, short sellers may be questioning the longer-term production outlook at Honeymoon.
• IperionX Ltd (ASX: IPX) has short interest of 12.8%, which is up again week on week. Short sellers seem to believe plenty of future growth is already priced in as the titanium company works to scale up its US operations.
• Zip Co Ltd (ASX: ZIP) has seen its short interest jump to 12.7%. Short sellers may believe higher interest rates could put pressure on the buy now pay later company's business model by increasing funding costs and weighing on consumer spending.
• PLS Group Ltd (ASX: PLS) has 12.3% of its shares held short, up from 11.7% last week. Short sellers may be betting that the recent improvement in lithium market conditions will not last.
• 4DMedical Ltd (ASX: 4DX) has seen its short interest ease slightly to 11.9%. The medical technology company continues to make commercial progress, but its high valuation relative to current revenue makes it an obvious target for short sellers.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 11.8%, which is broadly unchanged week on week. Short sellers may still be waiting for stronger evidence that the pizza chain operator's turnaround can deliver a meaningful earnings recovery before closing positions.
• Paladin Energy Ltd (ASX: PDN) has returned to the top ten with short interest of 11%. This is a third uranium stock that short sellers are loading up on.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise slightly to 10.9%. Short sellers may remain cautious on the Penfolds owner due to weak luxury wine demand and the work still required to improve its Americas business.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

The ASX 200 opened deep in red territory, and just kept on falling. By the time the markets closed, the index had shed a nasty 1.99% and was left at just 8,614.4 points.

This awful day for the Australian markets came after a more nuanced night up on the US exchanges.

The Dow Jones Industrial Average Index (DJX: .DJI) was also hit hard last night, dropping 0.86%.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) went the other way, recording a rise of 0.24%.

But let's grit our teeth and get back to ASX shares now for a post-mortem of how the various ASX sectors coped with this Thursday's tough trading conditions.

Winners and losers

No corners of the market were safe from today's selling.

The best place to be was in tech shares. The S&P/ASX 200 Information Technology Index (ASX: XIJ) was relatively unscathed, 'only' slipping by 0.62%.

Communications stocks fared decently (at least by comparison) too, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) sliding 0.85%.

Utilities shares came next. The S&P/ASX 200 Utilities Index (ASX: XUJ) dipped 0.91% today.

Consumer discretionary stocks suffered triple-digit losses, illustrated by the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ)'s 1.18% dive.

Industrial shares saw stepped-up selling pressure, though. The S&P/ASX 200 Industrials Index (ASX: XNJ) sank a horrid 1.75% this session.

Mining stocks were worse again, with the S&P/ASX 200 Materials Index (ASX: XMJ) retreating 1.88%.

Gold shares were no safe haven. The All Ordinaries Gold Index (ASX: XGD) was sent home 2.09% lighter.

Financial stocks found themselves in a similar boat, as you can tell by the S&P/ASX 200 Financials Index (ASX: XFJ)'s 2.13% slump.

Healthcare shares didn't exactly live up to their name this Thursday. The S&P/ASX 200 Healthcare Index (ASX: XHJ) ended up sinking 2.49%.

Real estate investment trusts (REITs) reversed the goodwill we saw yesterday, with the S&P/ASX 200 A-REIT Index (ASX: XPJ) receiving a 2.51% cut.

Consumer staples stocks did not hold their value. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) crateted a nasty 2.55% by the closing bell.

Finally, energy shares took the brunt of the selling this session, evidenced by the S&P/ASX 200 Energy Index (ASX: XEJ)'s 3.03% plunge.

Top 10 ASX 200 shares countdown

Coming out on top of quite an uncompetitive field today was data company Data #3 Ltd (ASX: DTL). Data#3 shares rocketed 13.68% higher this session to close at $12.63 each.

This massive surge was prompted by a well-received trading update this afternoon.

Here's how the other top ASX stocks tied up at the dock:

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

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

That's because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top 10 most shorted ASX shares

• Lotus Resources Ltd (ASX: LOT) remains at the top of the table despite its short interest falling sharply to 14.8%. Short sellers may still have concerns over the uranium producer's ability to ramp up production and generate attractive returns from Kayelekera.
• DroneShield Ltd (ASX: DRO) has seen its short interest fall materially to 14.3%. The counter-drone technology company remains heavily shorted, possibly due to its valuation and the uncertainty created by the ASIC investigation.
• Boss Energy Ltd (ASX: BOE) has jumped back into the top ten with short interest of 12.8%. Short sellers may be questioning the uranium producer's longer-term production outlook and whether Honeymoon can deliver the growth expected by the market.
• IperionX Ltd (ASX: IPX) has seen its short interest rise to 12.4%. The titanium company continues to make progress with its US operations, but short sellers may believe its valuation already assumes a significant amount of future growth.
• 4DMedical Ltd (ASX: 4DX) has short interest of 12%, which is down slightly week on week. This may be due to the medical technology company's valuation, which could be difficult to justify based on its current revenue base.
• PLS Group Ltd (ASX: PLS) has seen its short interest rise to 11.7%. Short sellers may be positioning for continued weakness in lithium prices, which would put pressure on margins and cash flow.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 11.7%, which is down slightly since last week. Short sellers may still want to see stronger evidence that its restructuring can restore earnings growth.
• Zip Co Ltd (ASX: ZIP) has returned to the top ten with short interest of 11%. This could reflect concerns that higher interest rates will impact the buy now pay later company's performance.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest fall to 10.7%. Short sellers may remain concerned about luxury wine demand and how quickly the Penfolds owner can improve its performance in the Americas.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 10.6%, down from 11% last week. Despite positive regulatory progress, short sellers aren't giving up on this one.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

That's because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top 10 most shorted ASX shares

• Lotus Resources Ltd (ASX: LOT) remains at the top of the table with short interest of 17%, up from 15.9% last week. The uranium producer continues to attract short sellers, possibly due to concerns over its ability to ramp up production at Kayelekera and deliver the expected financial benefits.
• DroneShield Ltd (ASX: DRO) has seen its short interest rise to 16.2%. Short sellers may be questioning whether the counter-drone technology company's growth can justify its valuation, particularly with the ASIC investigation still creating uncertainty.
• 4DMedical Ltd (ASX: 4DX) has short interest of 12.3%, which is up slightly week on week. Despite encouraging progress with its US commercial rollout, short sellers may believe its current revenue base is too small to support its market valuation.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest rise to 12%. The pizza chain operator remains under pressure as it works to improve store profitability and restore earnings growth following a difficult period.
• IperionX Ltd (ASX: IPX) has jumped to fifth with short interest of 11.7%, up from 10.6% last week. Short sellers may have concerns over the titanium company's valuation and how quickly it can turn its growing production capacity into meaningful earnings.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest ease to 11.4%. The Penfolds owner continues to face challenging conditions in the Americas, with short sellers potentially questioning how quickly its restructuring efforts will improve profitability.
• PLS Group Ltd (ASX: PLS) has 11.2% of its shares held short, which is broadly unchanged since last week. Uncertainty over the timing of a sustained lithium price recovery may be keeping short sellers interested in the miner.
• Telix Pharmaceuticals Ltd (ASX: TLX) has returned to the top ten with short interest of 11%. Despite recently securing US FDA approval for Pixclara, short sellers may still be questioning how quickly its expanding product portfolio can drive earnings growth.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease slightly to 11%. Short sellers may remain wary of disruption to international travel and whether the company can deliver a meaningful improvement in margins.
• Paladin Energy Ltd (ASX: PDN) has short interest of 10.9%, which is broadly flat week on week. The uranium producer continues to attract short sellers, possibly due to doubts over its ability to meet production expectations and keep operating costs under control.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

The broader S&P/ASX 200 Index (ASX: XJO) slipped 0.11% over the week to 8,731.2 points on Friday.

The market was volatile on increased bets of another interest rate hike due to persistently high inflation.

The market is pricing an 82% chance that the Reserve Bank will lift rates by another 0.25% at the end of the month.

Last week, the US Fed raised rates for the first time in three years, and Japan also increased rates to a 30-year high.

Elevated oil prices due to the US-Iran conflict continue to contribute to stubborn inflation worldwide.

Last week, eight of the 11 market sectors finished in the red.

Let's review.

Healthcare led the market sectors last week

Healthcare is continuing its rapid rebound following a 29% slump over the 12 months to early June.

The S&P/ASX 200 Health Care Index (ASX: XHJ) hit a 9-year low on 3 June.

Healthcare shares have ripped 43% since then compared to a 0.6% fall for the ASX 200.

The CSL Ltd (ASX: CSL) share price popped 5.08% to $175.59 last week, and it's up 90% since 3 June. 

Resmed CDI (ASX: RMD) shares rose 5.15% to $31.87, and are 23% higher since 3 June. 

Pro Medicus Ltd (ASX: PME) shares jumped 3.18% to $169.57 on Friday, and are up 6% since 3 June. 

The Ramsay Health Care Ltd (ASX: RHC) share price lifted 3.44% to $55.39, and is up 52% since 3 June. 

Sonic Healthcare Ltd (ASX: SHL) shares edged 1.26% higher to $19.24, and are up 2% since 3 June.

Telix Pharmaceuticals Ltd (ASX: TLX) shares jumped 13.91% to $17.85 on Friday, and are up 46% since 3 June.

The 4DMedical Ltd (ASX: 4DX) share price leapt 28.27% to $4.31, and is up 14% since 3 June. 

Chemist warehouse owner Sigma Healthcare Ltd (ASX: SIG) bucked the trend last week.

Sigma Healthcare shares fell 3.04% to $2.55, and are 12% lower since 3 June. 

The Cochlear Ltd (ASX: COH) share price also fell 0.18% to $133.90 last week.

Cochlear shares have recovered 41% since 3 June. 

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:

The post ASX 200 healthcare shares lead a weaker market amid 82% chance of a rate hike appeared first on The Motley Fool Australia.

This middling end to the Australian trading week followed a far more optimistic night up on the American markets.

The Dow Jones Industrial Average Index (DJX: .DJI) staged a decisive bounce-back, rising 0.61%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) did even better, gaining a healthy 1.69%.

But let's get back to the local markets now and examine how the different ASX sectors fared amid today's indecisive trading conditions.

Winners and losers

There were a few winners to balance out the red sectors this Friday.

But first, to the losers.

Leading the pessimistic sectors this session were real estate investment trusts (REITs). The S&P/ASX 200 A-REIT Index (ASX: XPJ) copped some displeasure, tanking 1.31%.

Energy shares were also on the nose, with the S&P/ASX 200 Energy Index (ASX: XEJ) plunging 1.1%.

Consumer staples stocks were no safe haven. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) cratered by 1.04% this session.

We could say the same for communications shares, illustrated by the S&P/ASX 200 Communication Services Index (ASX: XTJ)'s 0.77% retreat.

Financial stocks weren't finding many buyers. The S&P/ASX 200 Financials Index (ASX: XFJ) gave back 0.59%.

Consumer discretionary shares were just ahead of that, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) diving 0.54%.

Healthcare stocks weren't feeling the love. The S&P/ASX 200 Healthcare Index (ASX: XHJ) ended up sliding 0.36% lower.

Our last losers this Friday were industrial shares, as you can see from the S&P/ASX 200 Industrials Index (ASX: XNJ)'s 0.16% slip.

Turning to the winners now, it was gold stocks that shone the brightest. The All Ordinaries Gold Index (ASX: XGD) soared 3.9% higher this session.

Broader mining shares ran hot too, with the S&P/ASX 200 Materials Index (ASX: XMJ) roaring 1.6% higher.

Tech stocks got some love as well. The S&P/ASX 200 Information Technology Index (ASX: XIJ) added 0.73% to its total today.

Finally, utilities shares got over the line, evident from the S&P/ASX 200 Utilities Index (ASX: XUJ)'s 0.14% bump.

Top 10 ASX 200 shares countdown

Healthcare stock 4DMedical Ltd (ASX: 4DX) was our best performer this Friday. 4DMedical shares rocketed 13.42% this session to close the week at $4.31 each.

We dove into what might have caused this rally this afternoon.

Here's the rest of today's best:

Enjoy the weekend!

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

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

The 4DMedical share price has jumped 10.79% to $4.21 around midday, with more than 4 million shares already changing hands.

It continues what has been a pretty dramatic turnaround over the past week.

The stock touched $3.31 last Friday and has since climbed around 27%.

And today's move has caught my attention because 4DMedical remains one of the most heavily shorted stocks on the ASX.

So, what is driving buyers back into this ASX 200 healthcare stock?

Why are buyers coming back?

The first place I'd look is the size of the recent sell-off.

Even after today's jump, 4DMedical shares are still trading around 44% below their 52-week high of $7.55.

That's a pretty big reset for a company that has continued making progress on the commercial side.

In FY26, operating revenue rose 21% to $7.1 million, while scan volumes increased 77% to 344,075 scans.

The company also finished the year with its software available across 540 sites globally, up 39% from a year earlier.

There has been more progress in the United States as well, with CT:VQ being rolled out across major healthcare networks and imaging providers.

Could short sellers be adding fuel?

The other part of Friday's move is the very large short position sitting against the stock.

As of 11 September, around 12.4% of 4DMedical shares were reported short, making it one of the most shorted stocks on the ASX.

That means a large number of traders are still positioned for the share price to fall.

When a heavily shorted stock suddenly starts climbing, some of those traders can be forced to buy shares back to close their positions.

That extra buying can then add more momentum to the rally.

Of course, we can't know for sure that's happening today because short position data comes through with a 4-trading-day delay.

Still, with the shares up more than 20% over the past week, I wouldn't be surprised if some short covering is helping the move.

What should investors watch next?

The stock has already bounced around 27% from last Friday's low, so I wouldn't get carried away just yet.

I'd be more inclined to watch whether 4DMedical can keep building its commercial progress, especially in the United States.

Scan volumes are rising, and more sites are coming on board, but shareholders will eventually want to see that translate into stronger revenue.

Still, with the shares well below their highs, I can see why buyers are starting to come back.

The post 4DMedical shares are rocketing 11% today. Is a short squeeze starting? appeared first on The Motley Fool Australia.

If you're weighing up a buy between 4DMedical Ltd (ASX: 4DX) and Telix Pharmaceuticals Ltd (ASX: TLX), you're comparing two ambitious Australian medical technology companies. Both are at the forefront of healthcare innovation, but their financial profiles and recent growth stories offer very different investment prospects. Let's dig in to see how these two stack up.

The case for 4DMedical

4DMedical is breaking new ground in respiratory imaging. Its flagship CT:VQ software turns CT scans into detailed lung maps, giving doctors advanced tools for diagnosing diseases like pulmonary embolism and emphysema. The tech's already in use at top US hospitals like Mayo Clinic and Stanford, with a recent European expansion thanks to its acquisition of Contextflow.

Looking at the numbers, 4DMedical carries a sizeable market cap of $2.07 billion but has yet to become profitable, posting negative earnings per share of -0.405. There's no dividend on offer, and no price/earnings (P/E) ratio available yet; this signals it's still firmly in growth mode. The year-to-date return sits at -14.5%, indicating a tough recent run for shareholders. This makes 4DX more of a high-risk, high-potential play, especially for those backing new technology looking to disrupt established medical imaging markets.

The case for Telix Pharmaceuticals

Telix Pharmaceuticals is a commercial-stage biotech pushing the boundaries of cancer diagnostics and treatment. Its main product, Illuccix, has approvals from regulators including the TGA, FDA and Health Canada, making it a global force in prostate cancer imaging. Beyond Illuccix, Telix is running more than 20 clinical trials worldwide, chasing breakthroughs in cancer types ranging from kidney to brain to bone marrow.

Telix stands out for having already turned the corner into profitability. Its market cap dwarfs 4DMedical's at $6.03 billion. Earnings per share are positive (0.099), which is rare for an ASX biotech this size. The company trades on an eye-watering P/E ratio of 118.40—sky-high, but not unusual for fast-growing pharmaceutical businesses. Like 4DMedical, Telix pays no dividend, pouring resources back into growth. But the real highlight is a stellar year-to-date share price return of 45.89%, signalling momentum.

Valuation comparison

Here's a side-by-side look at the major valuation and fundamental metrics:

There's a clear gap in scale and financial maturity. Telix is both far larger by market cap and actually generating earnings, whereas 4DMedical is still burning through capital to develop its market. Neither pays a dividend, so both are pure growth plays.

Recent share price performance

Share prices can be volatile in the health tech sector, but the difference here is striking. As of the latest data (mid-September 2026), 4DMedical shares sit at $3.44, having dropped 14.5% year to date. Its weekly moves have often swung several percent either way, showing volatility without a clear upward momentum.

Telix, meanwhile, is on a tear. As of 15 September 2026, shares closed at $17.75 and are up a hefty 45.89% for the year. The stock has seen sharp daily moves—like an 8.63% gain on one recent day—but the overall trend has been strongly positive. Telix's growth story is, at least so far, being rewarded by the market.

Which is the better buy?

Weighing up these two, my pick would be Telix Pharmaceuticals. The company has global regulatory runs on the board, it's already doing solid revenue, and it's delivered real profit. Yes, it does trade on a huge earnings multiple, but I'd see that as justified given the momentum: 45% year-to-date gains, and more than 20 clinical trials in the pipeline.

4DMedical clearly has exciting technology and major growth aspirations, but as of now, it's loss-making and suffering negative share price performance.

In short: if I'm backing an Aussie health innovator today, I'd go with Telix.

The post 4DMedical vs Telix Pharmaceuticals: ASX health tech share showdown appeared first on The Motley Fool Australia.

Here's the story behind each move, plus what brokers now expect.

Telix now has 3 FDA-cleared diagnostics

Telix just delivered the news investors had circled on their calendars. On Monday, the FDA approved Pixclara, Telix's PET imaging agent for brain cancer, confirming Pixclara is the only FDA-approved radiopharmaceutical imaging drug for glioma.

That's a big deal. This asset had already been knocked back once, with the FDA issuing a knockback in mid-2025 over data consistency before Telix resubmitted its application and won a priority review with a September action date. Getting it over the line removes years of regulatory overhang in one shot.

This ASX healthcare share has been a rollercoaster for exactly this reason. Binary regulatory outcomes can swing the price into double digits overnight. With approval finally locked in, Telix now has three FDA-cleared products anchoring its diagnostics franchise, adding a new revenue stream to its existing prostate and kidney imaging portfolio.

Brokers were already leaning bullish before Monday's news. Consensus data shows 13 out of 16 analysts on TradingView rate Telix a buy or strong buy, with an average 12-month price target around 45% above the current share price.

Citi has been the most bullish, maintaining a $31 target, while JPMorgan sits around $24.40. Not everyone's on board. RBC downgraded to hold with an $18 target, a fraction higher than the share price at the time of writing.

4DMedical: starting to show commercial traction

4DMedical's move is smaller in percentage terms but reflects a similar theme: commercial traction finally showing up in the numbers.

The respiratory-imaging company has spent the past two years converting FDA clearances and marquee partnerships into actual revenue, and this ASX healthcare share has rewarded patient holders handsomely with a 112% gain over 12 months.

The engine for this tech stock is CT:VQ, 4DX's ventilation-perfusion imaging software, which uses ordinary chest CT scans to generate the kind of data that once required nuclear medicine.

Adoption has been building steadily across top-tier US academic centres, and Medicare has already confirmed reimbursement under Category III CPT codes. That's a crucial unlock for hospital adoption at scale.

Analysts, though, are more split on 4DMedical than on Telix. Bell Potter remains the standout bull, maintaining a $6.00 target, while Ord Minnett carries a sell at $3.00. It's a name where opinions genuinely diverge on how fast the commercial ramp will actually convert to profit.

Foolish takeaway

Both stocks are classic high-beta plays in the healthcare space. And this week's rally shows exactly why: regulatory and commercial catalysts can move these ASX healthcare shares fast in either direction.

Telix's Pixclara approval is about as clean a catalyst as it gets, and brokers have responded accordingly. 4DMedical's story is earlier-stage and more contested among analysts.

Investors chasing either move after the fact should weigh the excitement of the headline against the underlying pace of revenue growth — and size accordingly.

The post These 2 ASX healthcare shares just jumped up to 15%. Here's why appeared first on The Motley Fool Australia.

The ASX 200 started in red territory this morning and only got worse over the session. By the time trading ended, the index had lost 0.88% of its value and had settled at 8,672.5 points.

This rather terrible Tuesday for Australian investors came after a similarly downbeat night on Wall Street overnight to kick off the American trading week.

The Dow Jones Industrial Average Index (DJX: .DJI) did start strong, but ended up recording a 0.29% loss.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared even worse, dropping 0.56%.

But let's get back to the local markets now and take stock of how the various ASX sectors handled today's difficult trading conditions.

Winners and losers

Despite today's pessimism, we still saw a few sectors make hay.

But first, it was gold shares that copped the worst of it. The All Ordinaries Gold Index (ASX: XGD) ended up crashing 3.08%.

Broader mining stocks had a rough one as well, with the S&P/ASX 200 Materials Index (ASX: XMJ) cratering 2.21%.

Continuing with the commodities theme, energy shares also had a shocker. The S&P/ASX 200 Energy Index (ASX: XEJ) tanked 1.62% this session.

Financial stocks had a day to forget as well, illustrated by the S&P/ASX 200 Financials Index (ASX: XFJ)'s 1.08% plunge.

Real estate investment trusts (REITs) fared a little better. The S&P/ASX 200 A-REIT Index (ASX: XPJ) still lost 0.59%, though.

Industrial shares were right behind that, with the S&P/ASX 200 Industrials Index (ASX: XNJ) sliding 0.43%.

Our last losers this Tuesday were utilities stocks. The S&P/ASX 200 Utilities Index (ASX: XUJ) ended up slipping down 0.12%.

Let's turn to the green sectors now. Leading the winners were healthcare shares, as you can see from the S&P/ASX 200 Healthcare Index (ASX: XHJ)'s 1.5% surge.

Consumer staples stocks held their value, too. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) jumped 0.88% this session.

Its consumer discretionary counterpart was just behind that, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) leaping 0.87%.

Communications stocks were spared as well. The S&P/ASX 200 Communication Services Index (ASX: XTJ) advanced 0.32%.

Finally, tech shares managed to stay on the right side of the line, evident by the S&P/ASX 200 Information Technology Index (ASX: XIJ)'s 0.29% bump.

Top 10 ASX 200 shares countdown

Healthcare stock 4DMedical Ltd (ASX: 4DX) was our chart-topper this Tuesday. 4DMedical shares roared 8.72% higher this session to close at $3.74 each.

This came despite no fresh news or announcements from the company today.

Here's how the other top stocks landed their planes:

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

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

That's because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top 10 most shorted ASX shares

• Lotus Resources Ltd (ASX: LOT) has moved back to the top of the table with short interest of 15.9%, up from 15% last week. Short sellers may still have doubts over the uranium developer's path to production and whether stronger uranium demand will arrive quickly enough to support its plans.
• DroneShield Ltd (ASX: DRO) has short interest of 15.4%, which is broadly unchanged week on week. The counter-drone technology company remains a favourite with short sellers, possibly due to its valuation and uncertainty surrounding the ASIC investigation.
• 4DMedical Ltd (ASX: 4DX) has seen its short interest ease to 12.2%. Its valuation remains very high relative to its current revenue base, which appears to be keeping short sellers interested despite its significant commercial potential.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 11.8%, which is down again week on week. Short sellers may still need convincing that its restructuring efforts can deliver the earnings recovery investors are hoping for.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest ease slightly to 11.7%. Weakness in luxury wine demand and uncertainty around the pace of improvement in the Americas could be keeping short sellers interested.
• Zip Co Ltd (ASX: ZIP) has seen its short interest rise to 11.6%. The buy now pay later company's strong recovery may have prompted some short sellers to question whether its valuation now leaves enough room for disappointment.
• PLS Group Ltd (ASX: PLS) has 11.2% of its shares held short, which is up slightly week on week. Short sellers may be betting that the lithium market remains difficult for longer, delaying a meaningful recovery in margins and cash flow.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rise to 11.1%. This may reflect concerns over the strength of consumer travel spending and how quickly the company can improve margins.
• Paladin Energy Ltd (ASX: PDN) has short interest of 11%, which is up from 10.7% last week. Short sellers may remain cautious over production expectations and whether the uranium price can stay strong enough to support the current outlook.
• IperionX Ltd (ASX: IPX) has entered the top ten with short interest of 10.6%. Short sellers may be questioning the company's valuation and the execution required as it works to scale up its US titanium operations.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

By the time trading closed, the index had dropped 0.11% to close at 8,911.4 points.

This miserly session for the local markets came after a horrid return to trading for the US markets following the American long weekend.

The Dow Jones Industrial Average Index (DJX: .DJI) clearly didn't get a proper holiday, dropping 1.18% last night.

Meanwhile, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) did better, but still lost 0.32%.

But let's get back to ASX shares now and examine how today's tough trading conditions affected the various ASX sectors.

Winners and losers

Most of the ASX's sectors were dragged lower this Wednesday. But there were a few exceptions.

First though, it was, somewhat ironically, healthcare shares that had the unhealthiest day. The S&P/ASX 200 Healthcare Index (ASX: XHJ) had tanked 1.5% by the close of trading.

Consumer discretionary stocks also had a shocker, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) plunging 1.14%.

Gold shares were no safe haven either. The All Ordinaries Gold Index (ASX: XGD) cratered 1.06% today.

Communications stocks suffered a steep drop too, as you can see from the S&P/ASX 200 Communication Services Index (ASX: XTJ)'s 1.04% dive.

Financial shares were right in front of communications. The S&P/ASX 200 Financials Index (ASX: XFJ) sank 1.02%.

Next came consumer staples stocks, with the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) retreating 0.9%.

Tech shares had a day to forget as well. The S&P/ASX 200 Information Technology Index (ASX: XIJ) saw its value cut by 0.71%.

Real estate investment trusts (REITs) weren't granted an exception either, evidenced by the S&P/ASX 200 A-REIT Index (ASX: XPJ)'s 0.57% dip.

But that's it for the red sectors, so let's get to the winners.

Leading said winners were energy stocks. The S&P/ASX 200 Energy Index (ASX: XEJ) roared higher today, surging 1.73%.

Mining shares also ran hot, with the S&P/ASX 200 Materials Index (ASX: XMJ) soaring 1.51%.

Utilities stocks were in demand as well. The S&P/ASX 200 Utilities Index (ASX: XUJ) lifted 1.01% today.

Finally, industrial shares got out unscathed, illustrated by the S&P/ASX 200 Industrials Index (ASX: XNJ)'s 0.06% bounce.

Top 10 ASX 200 shares countdown

Gold stock Minerals 260 Ltd (ASX: MI6) was our chart-topper this hump day. Minerals 260 shares exploded 10.37% higher this session to finish at 90.5 cents apiece.

This big move came despite no fresh news or announcements from the company.

Here's how the other top stocks landed their planes today:

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

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

The latest short position reports from ASIC, covering the week to 1 September 2026, contain two names that have each had their respective issues.

One company is shorted because it is losing money.

The other is shorted because it made too much, too quickly.

The most shorted ASX shares right now

DroneShield Ltd (ASX: DRO) sits at the top of the list with 15.37% of its register sold short.
Lotus Resources Ltd (ASX: LOT) follows at 15.04%, then 4DMedical Ltd (ASX: 4DX) at 12.37%.
Domino's Pizza Enterprises Ltd (ASX: DMP) is at 11.98% and Treasury Wine Estates Ltd (ASX: TWE) at 11.74%.

The week-on-week movement is worth noting.

CAR Group Limited (ASX: CAR) has dropped out of the top ten entirely, and Elders Ltd (ASX: ELD) has taken its place.

DroneShield's short interest actually rose, from the 14.9% recorded a week earlier, despite the shares already having fallen sharply.

DroneShield: Shorted because it lost money

DroneShield has become the most shorted stock on the market for reasons that become clearer when investors look at the company's annual accounts.

First-half revenue rose 74% to $125.8 million, which is a strong number.

Underneath it, gross margin fell from 65.3% to 60.0%, underlying EBITDA swung to a $12.4 million loss, and the statutory result was a $32.2 million loss, compared with a $2.1 million profit a year earlier.

The company also has an ASIC investigation running into share trading and disclosures from November 2025.

The counter-argument is that the balance sheet is untouched.

DroneShield holds $180 million of cash with no debt and has reaffirmed FY 2026 revenue guidance of $250 million to $270 million.

The shares are down about 74% from their high, which is a lot of scepticism already in the price.

PLS Group: Shorted because it made too much

PLS Group Ltd (ASX: PLS) is the opposite case entirely.

FY26 revenue rose 152% to $1.93 billion, underlying EBITDA reached $1.14 billion at a 59% margin, and the company swung from a $196 million loss to a $526 million profit.

The company resumed dividends with a fully-franked 5 cents per share.

Shares rocketed 30% in August alone and have roughly doubled over twelve months.

So why short it?

Because the result rests on a realised spodumene price of US$1,488 per tonne, more than double the prior year.

FY27 capital expenditure is guided at $620 million to $685 million, roughly double the prior year, which competes directly with the dividend just restored.

Lithium has always been a violently cyclical business, and bears are betting the cycle turns before the capital is spent.

Managing director Dale Henderson said of the results:

That financial strength gives us flexibility: we can continue investing in Pilgangoora, bring Ngungaju back into production, advance P2000 and Colina, and pay a fully franked final dividend of 5 cents per share.

Foolish takeaway

Short interest is a reading list, not a verdict.

Plenty of heavily shorted companies go on to perform perfectly well, and a crowded short position can unwind violently.

What I take from this particular table is that the most shorted ASX shares are not all the same bet.

For DroneShield, the question is profitability, and for PLS Group, it is the lithium price.

The post What are the most shorted ASX shares on the market right now? appeared first on The Motley Fool Australia.

That's because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top 10 most shorted ASX shares

DroneShield Ltd (ASX: DRO) remains at the top of the table with short interest of 15.4%, which is up week on week. The counter-drone technology company continues to attract plenty of attention from short sellers, possibly due to its valuation and the ongoing ASIC investigation.

Lotus Resources Ltd (ASX: LOT) has seen its short interest jump to 15%. Short sellers may still have concerns over the uranium developer's funding requirements and the execution needed to deliver its growth plans.

4DMedical Ltd (ASX: 4DX) has short interest of 12.3%, which is down slightly week on week. The medical imaging technology company remains heavily shorted as investors weigh its significant growth potential against a very high valuation.

Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 12%. Short sellers may be unconvinced that the pizza chain operator's restructuring and store closures will be enough to restore strong earnings growth.

Treasury Wine Estates Ltd (ASX: TWE) has short interest of 11.8%, which is down slightly week on week. Weakness in parts of the global wine market and uncertainty around the company's recovery continue to give short sellers something to focus on.

PLS Group Ltd (ASX: PLS) has 11.1% of its shares held short, which is broadly unchanged since last week. Short sellers may be expecting lithium prices to be under pressure, which would weigh on margins.

Zip Co Ltd (ASX: ZIP) has seen its short interest rise to 11.1%. The buy now pay later company's strong share price recovery may have encouraged some investors to bet that expectations are becoming too optimistic.

Elders Ltd (ASX: ELD) has returned to the top ten with short interest of 10.9%. Short sellers may have concerns over rural spending conditions and the outlook for earnings growth across the agribusiness.

Paladin Energy Ltd (ASX: PDN) has seen its short interest fall to 10.7%. Despite this, short sellers may still believe expectations for uranium prices and future production are running ahead of reality.

Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease again to 10.6%. Short sellers may remain cautious on the travel agent due to margin pressure, consumer spending conditions, and disruption to international travel.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

ASIC publishes an aggregated short position report covering every listed security.

It is one a genuinely useful public windows into what professional money is betting against.

This week's table is led by DroneShield Ltd (ASX: DRO) at 14.9% and Lotus Resources Ltd (ASX: LOT) at 13.6%.

Why these ASX shares are being shorted

Short interest above 10% is unusual.

It generally means a fund has done the work, taken a view, and is willing to pay to hold the position.

The list also includes 4DMedical Ltd (ASX: 4DX) at 12.4%, Domino's Pizza Enterprises Ltd (ASX: DMP) at 12.3% and CAR Group Ltd (ASX: CAR) at 12.1%.

Zip Co Ltd (ASX: ZIP) has also entered the top ten at 10.9% after a strong recovery in its share price.

The common thread is not weak businesses, but rather a gap between what the market is paying today and what these companies currently earn.

DroneShield: growth without profit

DroneShield is the most shorted stock on the ASX, and its half-year result showed why the argument remains unresolved.

Revenue jumped 74% to $125.8 million, and recurring revenue climbed 229% to $11.5 million.

The counter-drone specialist also swung to a statutory net loss of $32.2 million, from a $2.1 million profit a year earlier.

Underlying EBITDA was a $12.4 million loss.

Cash and term deposits stood at $180 million at 30 June, so funding is not the immediate concern.

Interestingly, more than half of revenue now comes from Europe and the United Kingdom.

The complications sit elsewhere.

The company changed chief executive during the half, with Angus Bean replacing Oleg Vornik, and Hamish McLennan took over as chairman.

An ASIC investigation also remains unresolved, and that alone keeps some institutions on the sidelines.

Lotus Resources: a ramp-up under scrutiny

Lotus Resources is a different case entirely.

The uranium producer restarted its Kayelekera mine in Malawi and is ramping toward steady-state production of 2.4 million pounds of uranium oxide a year.

The resource stands at 51.1 million pounds, the mine life is around ten years, and all-in sustaining costs are expected near US$45 per pound.

Binding offtake agreements cover 3.5 million pounds of sales between 2026 and 2029.

With uranium spot prices near US$89 per pound, the economics look comfortable on paper.

Short sellers are questioning the timeline rather than the orebody.

Ramp-ups slip, and a developer without steady production has no earnings to defend its valuation.

Short interest here has fallen sharply in recent weeks, which suggests some of that scepticism is already being unwound.

What short interest does not tell you about ASX shares

Plenty of heavily shorted companies go on to perform perfectly well.

Short interest tells you that someone is betting against a business, but not that they are necessarily right.

It also creates a risk of its own, because a crowded short position can unwind violently after a single piece of good news.

Foolish takeaway

I generally treat the short report with a fair bit of caution.

However, when more than one share in ten is sold short, it is worth understanding the bear case properly before you buy.

For DroneShield, that case is about profitability and governance.

For Lotus Resources, it is about execution.

Neither argument is unanswerable, but both are good reasons to approach these ASX shares carefully.

The post Short sellers are targeting these ASX shares. Should you worry? appeared first on The Motley Fool Australia.