• Pro Medicus Ltd (ASX: PME) shares have dropped 38% year to date
• CSL Ltd (ASX: CSL) shares are down 19% 
• ResMed Inc (ASX: RMD) shares have fallen nearly 10%. 

At what point do blue-chip stocks become too cheap to ignore?

Let's find out.

Why are healthcare stocks in a free fall?

It has been a rough stretch for ASX healthcare stocks like ResMed shares in the last year. 

The S&P/ASX 200 Health Care Index (ASX:XHJ) is down 28% in that span. 

For comparison, the S&P/ASX 200 Index (ASX: XJO) is up nearly 16% in that same period. 

There have been several headwinds weighing on sentiment in this period: 

• Many healthcare stocks are growth companies. When interest rates rise, the future earnings that growth stocks are valued on get discounted more heavily, reducing their present value
• Tariff pressure have also hurt ASX healthcare stocks
• Many ASX healthcare giants earn significant revenues offshore (particularly in the US), so a stronger US dollar hurts the translation of those earnings back into Australian dollars

It's important to note that these headwinds are not guaranteed to subside in the short term. 

But with a long-term lens, the current stock price for healthcare giants could be a value play. 

Here's what experts are saying. 

Pro Medicus

Pro Medicus is a provider of medical imaging technology globally. The company is recognised as a leading supplier of radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualisation solutions for medical practices and hospitals.

It remains down almost 60% from its 52-week highs, closing yesterday at $137.42. 

Pro Medicus shares have a strong chance of rebounding based on analysts forecasts via TradingView. 

The average price target of 14 analysts sits at $199.03 per share. 

That's 61% higher than current levels. 

CSL

CSL is Australia's largest healthcare stock. 

It is a biotechnology company that develops and delivers biotherapies and vaccines. 

Its share price is down 42% over the last year, and now could simply be too cheap to ignore. 

At the time of writing, shares in CSL are trading for approximately $139.44. 

This is almost 63% below the average fair price estimate from 16 analysts. 

ResMed

Finally, ResMed shares are another blue-chip healthcare stock worth buying low. 

The company is a global leader in sleep technology.

Its share price is down roughly 10% this year, trading today for approximately $32.70. 

The team at Ord Minnett recently placed a $41.40 price target on ResMed shares. 

If they reached this price, it would represent a 26% rise. 

The post Down 38% this year, is it finally time to buy low on CSL, ResMed and Pro Medicus shares? appeared first on The Motley Fool Australia.

At $139.44, it is sitting closer to its 52-week lows than anything resembling its former peak. That peak was $342.75 back in February 2020, when CSL was widely seen as one of the ASX's most dependable growth stories.

I think that contrast is striking. The same business that once traded at a premium for its consistency is now being priced far more cautiously.

A shift in how the market sees CSL and its shares

For a long time, CSL benefited from a very clear narrative.

It was a high-quality global biotechnology company with reliable growth, strong margins, and a pipeline that supported long-term expansion. Investors were comfortable paying up for that combination because the company delivered on it consistently.

That narrative has become less certain.

Over the past couple of years, CSL has been working through a period where growth has been less predictable and more dependent on a range of moving parts across its business.

In its latest update, the company reported a decline in revenue and underlying earnings for the half, while reported profit was heavily impacted by restructuring costs and impairments.

That alone does not tell the full story.

From consistency to complexity

One way I think about the current situation is that CSL has moved from being a relatively straightforward growth story to a more complex one.

Different parts of the business are moving at different speeds.

Some products are facing changes in pricing or policy settings in key markets. Others are dealing with increased competition or weren't granted approval as expected. At the same time, the company is investing in new therapies, expanding manufacturing, and reshaping its business.

All of that adds layers. For investors, more moving parts often leads to more uncertainty, and that can influence how a company is valued, even if the long-term opportunity remains intact.

Still building for the next phase

What I find interesting is that CSL is still actively positioning itself for future growth.

The transformation program underway is designed to improve efficiency and simplify operations, while ongoing investment in research and development continues to build out the pipeline.

There are also new products coming through that could contribute more meaningfully over time, alongside existing therapies that remain central to the business.

To me, that suggests the company is focused on its next phase rather than standing still.

So, what could $10,000 become?

If CSL shares were to return to their record high of $342.75, investors would be laughing all the way to the bank.

That would represent an increase of roughly 145% from the current price of $139.44.

Based on that, a $10,000 investment today would grow to approximately $24,500 if the shares were to revisit that level.

But that is a big if.

Foolish takeaway

CSL is in a different phase to the one investors became used to over the past decade. The business now has more moving parts, more investment underway, and a broader set of factors influencing performance.

That has led to a reset in expectations and a lower share price.

At the same time, the company continues to invest in its future and build out its next wave of growth. If that plays out as hoped, the gap between the current share price and its previous high could narrow. But it is not guaranteed and could take some time to happen.

The post How much would $10,000 become if CSL shares returned to their record high? appeared first on The Motley Fool Australia.

That's exactly why I believe Australian investors should focus on a strategy that blends growth, resilience, and rising income.

For retirees who own their home, the latest ASFA Retirement Standard suggests a couple needs around $77,000 a year for a comfortable lifestyle, while singles need roughly $55,000.

That makes the final 10 years before retirement the ideal time to shape a portfolio designed to support that level of spending.

Local and global reach through ETFs

My preferred approach starts with broad ASX and global share ETFs as the portfolio's growth engine. A core holding in the Vanguard Australian Shares ETF (ASX: VAS) gives investors exposure to many of the market's best dividend-paying companies.

Adding an international ETF such as BetaShares Global Shares ETF (ASX: BGBL) helps diversify beyond the banks and miners that dominate the local market.

Together, these ETFs can still deliver the capital growth needed to keep pace with inflation over what could be a 25-year retirement.

Increase income, limit risk

But this is also the decade when income starts to matter more. That's why I like gradually introducing a high-yield ETF such as SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI). The higher dividend stream, supported by franking credits, can help lift the portfolio's cash generation without relying entirely on selling units.

At the same time, reducing risk becomes critical. A major market sell-off just before retirement can permanently damage a drawdown plan, which is why I would steadily increase exposure to bond ETFs such as the Vanguard Australian Fixed Interest ETF (ASX: VAF).

Bonds may not deliver eye-catching returns, but they can provide stability and act as a valuable shock absorber when share markets turn volatile.

Blue chips for growth

I'd also reserve a smaller slice of the portfolio for a handful of elite ASX blue-chip shares. Names such as Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), and CSL Ltd (ASX: CSL) can add a blend of dependable dividends and long-term earnings growth. These businesses have the scale and quality to remain core holdings well into retirement.

The real secret, though, is the glide path. Ten years out, I'd still lean heavily into shares. Five years from retirement, I'd be lifting bond and cash exposure. By retirement day, I'd want at least two years of living expenses sitting in cash or term deposits, ready to fund spending needs without touching shares in a downturn.

That combination of ASX ETFs, quality blue chips, bonds, and a cash buffer creates exactly what pre-retirees need most: a portfolio built not just to grow wealth, but to defend it when it matters most.

The post 10 years to retirement? Here's how to build a solid income appeared first on The Motley Fool Australia.

If I were starting with $10,000 today, I would focus on building a simple, well-rounded portfolio that I could hold with confidence and continue adding to over time.

Here is how I would approach it.

Start with a strong foundation

The first step for me would be building a core with broad market exchange-traded funds (ETFs).

I would start with the Vanguard Australian Shares Index ETF (ASX: VAS), which provides exposure to a large portion of the local market and includes many of the ASX's biggest and most established companies. It also offers a steady stream of dividend income, which I think is valuable for a beginner.

Alongside that, I would add the iShares S&P 500 AUD ETF (ASX: IVV). This ETF gives exposure to the largest companies in the United States and allows me to participate in global growth trends, particularly in areas like technology and healthcare.

Together, these two ETFs would give me a solid base across both Australian and international markets.

Add quality ASX blue chip shares

Once the foundation is in place, I would look to add a few high-quality ASX shares that I would feel comfortable holding through different market conditions.

One of those would be Commonwealth Bank of Australia (ASX: CBA). It is not always cheap, but I think its strong market position and consistent profitability make it a reliable long-term holding.

I would also include Wesfarmers Ltd (ASX: WES). It is a diversified business with exposure to retail and industrial segments, and it has a track record of making disciplined decisions that support long-term growth.

To balance things further, I would add CSL Ltd (ASX: CSL). It provides exposure to global healthcare and long-term growth trends, which helps ensure the portfolio is not overly reliant on the Australian economy.

Include a growth tilt

With the core and blue chips in place, I would still want some exposure to higher-growth opportunities.

For that, I would include Xero Ltd (ASX: XRO). It operates in cloud-based accounting software and continues to expand internationally, which I think gives it a long runway for growth.

I would also add WiseTech Global Ltd (ASX: WTC), which develops logistics software used across global supply chains. Its platform is deeply embedded in customer operations, which can support recurring revenue and long-term growth.

How I would think about the allocation

If I were dividing up the $10,000, I would keep things relatively simple and focus on balance rather than exact percentages.

I would want a meaningful portion in ETFs to provide diversification and reduce risk, while also allocating a solid amount to high-quality ASX shares that can deliver stability and income over time.

At the same time, I would still include a smaller allocation to growth companies, which may be more volatile but could help drive returns over the long term.

Foolish takeaway

If I had $10,000 to invest as a beginner, I would focus on building a portfolio that is diversified, easy to understand, and capable of growing over time.

By combining ETFs like the VAS and IVV ETFs with quality ASX shares such as CBA, Wesfarmers, and CSL, and adding growth names like Xero and WiseTech, I think it is possible to create a strong starting point.

From there, the most important step is continuing to invest consistently and giving those investments time to grow.

The post How I would build the ultimate beginner portfolio with $10,000 appeared first on The Motley Fool Australia.

This has been one of the wildest rides among ASX large caps. Sharp sell-offs. Sudden rebounds. Constant swings in sentiment tied to earnings, guidance, and pipeline concerns.

Just look at the numbers. CSL shares hit a 52-week high of $275.79 in August. Fast forward to March, and it was scraping a low of $133.35. Even now, it's still hovering near those lows at $138.08 at the time of writing.

The biotech stock is down 20% year to date and a brutal 42% over the past 12 months.

So what's going on and where to next?

Profit and revenue downgrades

Start with the biggest issue: growth. CSL shocked investors when it cut its FY26 revenue growth forecast to 2–3%, down from 4–5%. Profit growth was also downgraded to 4–7%, from a previous 7–10%. That's a big shift for a company that built its reputation on consistent double-digit growth.

It didn't stop there. Management of CSL shares also trimmed its medium-term outlook, lowering expected NPAT growth from low-teens to high-single digits for FY27 and FY28. That's a clear signal: the high-growth era has slowed.

And perhaps more concerning, the downgrade came shortly after the original guidance was issued. That raised eyebrows. Did conditions deteriorate that quickly or were expectations simply too optimistic to begin with?

Either way, confidence took a hit.

Healthcare backdrop

Then there's the broader market backdrop. ASX healthcare stocks, including CSL, have fallen out of favour in 2026. Investors have rotated into energy, resources, and defensive plays as geopolitical risks rise. That shift has dragged on sentiment across the sector, regardless of individual company performance.

But here's where things get interesting. Despite the heavy sell-off, many analysts believe CSL shares are now oversold.

According to TradingView data, 12 out of 18 analysts rate the biotech stock as a buy or strong buy. The most bullish price target sits at $264.45, implying a potential upside of around 91% from current levels.

That's a massive disconnect.

Dominant global plasma player

Why the optimism? Because the core business remains strong.

CSL dominates the global market for plasma-derived therapies, including immunoglobulins, albumin, and clotting factors. These are critical treatments for rare and chronic conditions and demand is not going away.

In fact, it's growing. There's strong, recurring global demand for these therapies, and competition remains limited. That gives CSL shares a powerful long-term position, even if short-term growth has slowed.

The company is also still growing, just at a more moderate pace. And over time, those growth forecasts still point to a recovery trajectory.

So what's the market missing?

Right now, it's all about expectations. CSL shares were priced as a high-growth machine. When that growth slowed, the valuation reset — hard.

CSL hasn't lost its edge. But it has lost its growth premium, at least for now.

If growth stabilises and sentiment shifts, there's clear upside on the table. But until then, investors should expect more volatility.

The post What on earth's going on with CSL shares? appeared first on The Motley Fool Australia.

But here's the truth: your first investments don't need to be complicated.

What you want are businesses that are easy to understand, financially strong, and spread across different sectors. That way, you're building a solid foundation from day one.

Here are five ASX heavyweights that tick those boxes.

Commonwealth Bank of Australia (ASX: CBA)

If you want simplicity, start with a bank.

Commonwealth Bank is Australia's largest bank and a dominant force in mortgages and retail banking. It generates consistent profits, pays reliable dividends, and benefits from its scale and brand strength.

It's not the fastest grower, but it's steady. For beginners, that stability can be invaluable.

CSL Ltd (ASX: CSL)

CSL gives you exposure to global healthcare, a sector with long-term tailwinds.

The company develops and delivers life-saving therapies, with operations spanning the world. It's a high-quality business with strong margins and a history of growth.

This ASX healthcare share can be volatile at times, but its long-term track record speaks for itself.

Wesfarmers Ltd (ASX: WES)

ASX share Wesfarmers is all about diversification.

From Bunnings to Kmart and Officeworks, this ASX share owns a portfolio of well-known retail and industrial businesses. That mix helps smooth earnings and reduces reliance on any single segment.

It's a simple way to get exposure to multiple parts of the economy in one stock.

BHP Group Ltd (ASX: BHP)

Want exposure to global resources? This $275 billion ASX share is the go-to.

As one of the world's largest miners, BHP produces essential commodities like iron ore and copper. These materials underpin infrastructure, construction, and the energy transition.

It's cyclical, meaning earnings can rise and fall with commodity prices, but over time, it has delivered strong returns and dividends.

Transurban Group (ASX: TCL)

For something more defensive, Transurban offers a different angle.

It owns and operates toll roads across Australia and North America. These assets generate steady, predictable cash flow as people continue to commute and transport goods.

That makes it appealing for investors seeking more stability and income.

Foolish Takeaway

These five ASX shares won't all shoot the lights out overnight.

But that's not the point. They're established, resilient, and operate across banking, healthcare, retail, resources, and infrastructure. Together, they offer a strong starting mix for any new investor.

Because when you're just starting out, building a solid base matters far more than chasing the next big thing.

The post Just starting out? These 5 ASX shares could be the perfect first buy appeared first on The Motley Fool Australia.

The benchmark index finished the session down 0.39% to 8,926 points as investors moved away from risk across most sectors.

While that kind of geopolitical shock can feel uncomfortable in the moment, these are often the periods when long-term opportunities start to appear.

When fear pushes quality businesses lower alongside everything else, I prefer to focus on proven ASX names with durable earnings, strong market positions, and long growth runways.

Here are three quality ASX shares I would be happy to buy while sentiment remains fragile.

Xero Ltd (ASX: XRO)

Xero is still one of the highest-quality software businesses on the ASX.

The company provides cloud accounting, payroll, invoicing, payments, and small business finance tools for SMEs and accountants. This has made Xero deeply embedded in the day-to-day operations of businesses across Australia, New Zealand, the UK, and increasingly the US.

That stickiness continues to show up in the numbers. In H1 FY26, Xero delivered revenue of roughly $1.2 billion, adjusted EBITDA of $351 million, and operating cash flow of $321.1 million, while continuing to grow subscriber numbers and average revenue per user.

Its scale, pricing power, and growing payments ecosystem give it multiple levers for long-term earnings growth.

If the broader market weakness pushes premium tech valuations lower, this is exactly the sort of proven software compounder I want to keep buying.

CSL Ltd (ASX: CSL)

CSL remains one of the ASX's clearest examples of a global defensive growth business.

The company earns most of its money from plasma therapies through CSL Behring, vaccines through Seqirus, and iron deficiency and kidney products through CSL Vifor. These are essential healthcare products with demand drivers that are far less sensitive to geopolitical headlines.

Its latest half-year result showed NPATA of US$1.9 billion, while management maintained FY26 guidance for 2% to 3% revenue growth and 4% to 7% NPATA growth.

Plasma margin recovery also still has room to play out, alongside cost savings from the broader operational simplification program.

That gives the business multiple earnings drivers even if the market stays nervous.

WiseTech Global Ltd (ASX: WTC)

WiseTech is a global logistics software leader best known for its CargoWise platform. It helps freight forwarders, customs brokers, warehouses, and supply chain operators manage complex global trade workflows.

What makes the business so powerful is how deeply integrated that software becomes once customers are onboarded.

Its most recent half-year result showed CargoWise revenue up 12% to $372.4 million, customer attrition below 1%, and group gross profit rising 61% to $529.9 million following the e2open acquisition.

That combination of high retention, recurring revenue, and global trade digitisation still gives WiseTech a very long runway.

If fear around the Middle East continues dragging high-multiple growth stocks lower, this is exactly the kind of business where I'd be happy adding on weakness.

Foolish takeaway

Broad market fear often creates the best opportunities in high-quality businesses.

For me, Xero, CSL, and WiseTech all fit that description. They are proven compounders with strong market positions, recurring earnings, and stable growth outlooks.

While everyone else is focused on geopolitical noise, I'd be looking closely at whether this pullback is offering a better long-term entry point.

The post 3 quality ASX shares I'd buy while everyone else is nervous appeared first on The Motley Fool Australia.

Markets have been volatile, sentiment has swung sharply, and a number of high-quality ASX shares are still trading well below their peaks. For long-term investors, that combination can open the door to attractive opportunities.

Here are three ASX shares that could be no-brainer buys right now.

CSL Ltd (ASX: CSL)

The first ASX share that looks very attractive at current levels is biotech leader CSL.

It is not often that a company of CSL's calibre trades at a discount, but recent headwinds have created that setup. Concerns around the underperformance of its key CSL Behring business, a sudden CEO exit, and broader market sentiment have weighed on the CSL share price.

However, these challenges appear largely short-term rather than structural. CSL remains a global leader in plasma therapies, with demand underpinned by ageing populations and rising healthcare needs. These are long-term drivers that are unlikely to change.

As its performance normalises and operational efficiencies improve, there is a clear pathway for margins to recover.

For patient investors, this could be one of those rare windows to buy a world-class business at a more attractive price.

Life360 Inc (ASX: 360)

Another ASX share that could be worth considering is location technology company Life360.

Life360 is transitioning from just a user growth story into both a monetisation and user growth story. Its platform continues to grow globally, but the focus is now on improving revenue per user through subscriptions, partnerships, and new services.

At the same time, profitability is improving as the company demonstrates operating leverage.

This is often the phase where growth companies begin to rerate, as investors gain confidence in the sustainability of earnings.

If that shift in perception continues, the current share price may prove to be an attractive entry point.

WiseTech Global Ltd (ASX: WTC)

A final ASX share that could be a strong buy is WiseTech Global.

WiseTech is building what is increasingly becoming the operating system for global logistics. Its CargoWise platform is deeply embedded across supply chains, making it highly difficult for customers to replace.

The interesting part of the story right now is not the business itself, but how it is being priced.

Like many growth names, WiseTech has experienced volatility as investors reassess valuations and consider the impact of emerging technologies. Yet the company continues to expand globally, win larger customers, and deepen its product suite.

With logistics becoming more complex and digitised, WiseTech's long-term opportunity remains substantial.

The post $5,000 to invest? 3 ASX shares that could be no-brainer buys right now appeared first on The Motley Fool Australia.

After a tough month in March, Australia's benchmark index has shown signs of a rebound during April. 

Last week, the index rose 4.4%, its best weekly gain since October 2022.

With the tide finally turning for ASX 200 shares, here are 5 that remain significantly below fair value according to broker estimates. 

CAR Group Ltd (ASX: CAR)

The CAR Group share price fell 14% in March. However, since late March, it has slowly turned a corner. 

Investors will be hoping it has reached the bottom of this latest cycle, as investors exited their positions in CAR Group shares largely due to AI replacement fears.

It is opening this week at $23.36 per share, which is still 24% lower than the start of 2026. 

This is significantly below fair price estimates from brokers. 

Recently, Morgan Stanley reiterated its buy recommendation and placed a $32 price target on the ASX 200 company. 

This indicates a healthy 37% upside from current levels. 

CSL Ltd (ASX: CSL)

CSL has also generated plenty of headlines recently as the ASX 200 stock appears to have been oversold. 

The biotechnology company has seen its share price fall 19% year to date and more than 40% over the last 12 months. 

It has reached a point where it is simply too cheap to ignore for many investors, and Bell Potter recently placed a $155 target on the ASX 200 stock. 

Despite its hold recommendation, this still indicates an upside of 11.5% from current levels. 

Breville Group Ltd (ASX: BRG)

Breville Group shares are currently hovering around $28.25, significantly below yearly highs. 

The consumer discretionary stock fell 16% during March. 

Macquarie recently placed an outperform rating and price target of $37.10 on the ASX 200 stock. 

This indicates an upside of 31%. 

JB Hi-Fi Ltd (ASX: JBH)

JB Hi-Fi shares are down more than 20% year to date, which includes an 11% fall during March. 

Late last month, Bell Potter retained their buy rating on this retail giant's shares with a price target of $90.

From last week's closing price of $75.21, this indicates an upside of nearly 20% for this ASX 200 stock. 

WiseTech Global Ltd (ASX: WTC)

Finally, WiseTech shares have been heavily sold off this year amidst AI concerns. 

The ASX 200 company has seen its share price tumble 45% since the start of 2026. 

However, it also appears too cheap to ignore. 

Morgan Stanley recently retained its buy rating for Wisetech with a $70 price target. 

This suggests an upside potential of 86%. 

The post 5 ASX 200 shares that could be a bargain right now appeared first on The Motley Fool Australia.

Both CSL Ltd (ASX: CSL) and Rio Tinto Ltd (ASX: RIO) have strong positions in their respective industries, and both have delivered solid returns for investors over time.

But right now, I think the comparison is becoming more interesting.

While Rio Tinto has been performing well, CSL's recent weakness may be creating an opportunity to buy a fallen giant before it recovers.

CSL shares

CSL has had a tough period.

Its recent results disappointed the market, with earnings impacted by restructuring costs, impairments, and policy changes. That has weighed on sentiment and helped drive the share price lower over the past year.

But when I look beyond that, I still see a high-quality global healthcare business.

Demand for plasma therapies, vaccines, and specialty medicines is supported by long-term trends. This includes an ageing population and increasing healthcare needs.

Those drivers have not changed. What has changed is valuation.

After the pullback, CSL shares are now trading on multi-year low earnings multiples. For a business with its track record, that stands out to me.

The company is also actively working through a transformation program aimed at improving efficiency and supporting future growth.

For me, this combination of quality, long-term demand, and a lower starting valuation is what makes CSL shares compelling.

Rio Tinto shares

Rio Tinto has been a very different story.

The company has benefited from strong commodity prices, particularly in copper, which has supported earnings and shareholder returns. Iron ore prices have also been robust.

It is a highly cash-generative business, and that often flows through to dividends. There is also a longer-term story around copper, which is becoming increasingly important for electrification and global infrastructure.

So I can understand why Rio Tinto shares have been performing well.

But that strength can also work the other way. When a company is in favour and performing strongly, a lot of that optimism can already be reflected in the share price.

That does not mean Rio Tinto is not a good investment. It just means the upside from here may be more closely tied to commodity cycles and less to a re-rating.

Which is the better buy?

I think both CSL and Rio Tinto are quality businesses.

If I were looking for income and exposure to commodities, Rio Tinto would still make a strong case.

But if I am thinking about potential returns over the next five years, I would lean toward CSL shares.

The share price has been under pressure, expectations are lower, and the valuation looks more attractive than it has for some time.

If the company can improve execution, deliver on its transformation, and rebuild investor confidence, I think there is scope for a meaningful share price recovery.

Foolish takeaway

Both CSL and Rio Tinto have their place. Rio Tinto offers strong cash flow and exposure to global commodities, particularly when markets are supportive. CSL, on the other hand, looks like a business going through a difficult period but still backed by strong long-term fundamentals.

For me, that creates a more interesting risk-reward opportunity. It may require patience, but I think CSL has the potential to deliver stronger returns from here if things start to fall into place.

The post Better buy? CSL vs Rio Tinto shares appeared first on The Motley Fool Australia.

But it does not have to be complicated. In fact, a well-constructed portfolio of just 10 ASX shares can provide diversification, income, and long-term growth potential.

The key is balance. You want exposure to different sectors, business models, and growth drivers so you are not relying on just one theme to succeed.

Here is one way investors could build a winning 10-ASX share portfolio in 2026.

Start with high-quality core holdings

The first ASX share that could anchor a portfolio is CSL Ltd (ASX: CSL).

CSL is a global healthcare leader with defensive earnings and long-term growth drivers. Demand for its therapies is supported by ageing populations and rising healthcare needs, making it a strong foundation.

Another ASX share that could play a similar role is Wesfarmers Ltd (ASX: WES).

Wesfarmers offers diversification through retail, chemicals, and industrial operations. Its ability to allocate capital effectively has been a key driver of long-term returns.

A third ASX share to consider is Commonwealth Bank of Australia (ASX: CBA).

While not the cheapest bank, CBA provides reliable earnings and fully franked dividends, making it a cornerstone for many Australian portfolios.

Add growth engines to drive returns

A fourth ASX share that could boost long-term returns is Xero Ltd (ASX: XRO).

Xero continues to expand globally, with its cloud accounting platform gaining traction in multiple markets. It represents a scalable growth opportunity.

Another ASX share that could fit here is WiseTech Global Ltd (ASX: WTC).

WiseTech's CargoWise platform is deeply embedded in global logistics, giving it strong competitive advantages and a long runway for growth.

A sixth ASX share to consider is Pro Medicus Ltd (ASX: PME).

Pro Medicus is a high-margin healthcare technology company that continues to win major contracts globally. Its growth profile remains very strong.

Include income and stability

A seventh ASX share that could add income is Telstra Group Ltd (ASX: TLS).

Telstra offers attractive dividend yields and is now focused on growth through its Connected Future 30 strategy, combining income with improving fundamentals.

Another ASX share in this category is Transurban Group (ASX: TCL).

Transurban provides steady, inflation-linked cash flows from its toll road assets, making it a reliable income generator.

Add structural and thematic exposure

A ninth ASX share that could round out the portfolio is Goodman Group (ASX: GMG).

Goodman provides exposure to logistics and data infrastructure, both of which are benefiting from e-commerce and digitalisation trends.

Finally, a tenth ASX share to consider is Life360 Inc (ASX: 360).

Life360 offers exposure to a growing global user platform that is increasingly monetising its base. It adds a higher-risk, higher-reward element to the portfolio.

The bottom line

A 10-share portfolio like this gives investors exposure to defensive healthcare, financials, technology, infrastructure, and emerging growth opportunities.

By combining quality, growth, and income, investors can build a portfolio that is well positioned to navigate different market conditions and deliver strong long-term returns.

The post How to build a winning 10 ASX share portfolio from scratch in 2026 appeared first on The Motley Fool Australia.

But from time to time, even the best companies fall out of favour.

Right now, a handful of ASX blue chips appear to be in that position. Here are three that could be worth a closer look.

CSL Ltd (ASX: CSL)

CSL is widely regarded as one of Australia's highest-quality companies, but the biotech giant's shares have come under pressure in recent times.

This has been driven by earnings misses, margin pressures, a tough operating environment, and leadership changes.

However, these are largely transitional issues rather than structural ones.

CSL still operates a global leader in plasma therapies and vaccines, with strong demand drivers linked to ageing populations and rising healthcare needs. As plasma collection normalises and efficiencies improve, there is potential for margins to recover.

For long-term investors, this could be one of those rare opportunities to buy a premium healthcare business at a more reasonable price.

Cochlear Ltd (ASX: COH)

Another ASX blue chip that could be looking attractive is Cochlear.

Short-term concerns around softer demand have weighed on sentiment. But this does not change the underlying demand for hearing solutions.

Cochlear benefits from a powerful structural tailwind. Hearing loss is a growing global issue, and access to treatment is still underpenetrated in many regions.

The company also enjoys a strong competitive position, supported by technology leadership and a global distribution network.

For investors willing to look beyond near-term noise, Cochlear's long-term growth story appears firmly intact.

Treasury Wine Estates Ltd (ASX: TWE)

A third ASX blue chip that may be undervalued is Treasury Wine Estates.

The company has faced a number of challenges in recent years, including shifting consumer preferences and disruptions to key export markets. These issues have weighed on its share price and created uncertainty around its outlook.

However, Treasury Wine is in the process of reshaping its portfolio.

The focus is increasingly on premium and luxury brands, where margins are higher and demand tends to be more resilient. This shift is helping the company reduce reliance on lower-margin products and improve the quality of its earnings.

In addition, improving trade dynamics and stabilising conditions in key markets could provide a tailwind over time.

While not without risks, Treasury Wine Estates could offer a compelling turnaround opportunity for patient investors.

The post These ASX blue chips now look too cheap to ignore appeared first on The Motley Fool Australia.

The decline is part of a long and consistent tumble for Australian biotech stock over the past 18 months.

The share price is now 40% lower than 12 months ago, and down 18.5% for the year-to-date.

It's not all bad news out of the biotech giant though. Here are three reasons to add the shares to your portfolio, and three reasons to sell up.

3 reasons to buy CSL shares

1. It looks like headwinds are easing

CSL has faced huge headwinds over the past 18 months. From uninspiring financial results, to a revenue and growth profit guidance downgrade, a surprise restructure announcement, and even a shock CEO exit, several events have spooked investors and sent the company's share price south. But I think these headwinds are finally easing and that downward pressure on CSL shares will soon lift.

2. There's a huge demand for CSL products

At the core of its CSL's business are its plasma-derived medicines, including immunoglobulins, albumin, and clotting factors. In fact, its blood plasma division dominates the market for rare blood disorders and immunoglobulin products. Global demand for plasma therapies is strong and growing too, and CSL is well-placed to absorb plenty of the upcoming demand.

3. Analysts tip a huge upside

Analysts are very bullish on the outlook for CSL shares. TradingView data shows 12 out of 28 analysts have a buy or strong buy rating on the stock with an upside of up to 91.6% to $286.67 per share over the next 12 months.

3 reasons to sell CSL shares

1. The market has fallen out of love with CSL shares

CSL was once widely viewed as one of the most dependable growth companies on the ASX. But over the past few years it has experienced a notable slowdown in earnings growth and a sharp share price reduction. Investors are concerned that there isn't enough concrete proof that company and share price growth can return.

2. A sector-wide rotation makes healthcare shares less attractive

ASX healthcare shares have lagged behind most other sectors on the index so far in 2026 as investors reposition themselves towards ASX energy stocks, resources, and defensive assets. This has seen a broad rotation away from healthcare stocks like CSL while geopolitical instability continues to rattle markets. It doesn't look like this will change any time in the near future. 

3. CSL's growth outlook has slowed

CSL cut its FY26 revenue growth forecast to 2-3%, down from 4-5% previously at its AGM in October last year. It also downgraded its profit growth for FY26 to 4-7%, down from 7-10% previously. The company also revised its medium-term outlook for fiscal years 2027 and 2028, reducing expected NPAT growth from low-teens to high-single digits, well below the double-digit expansion rates it had previously experienced. 

Not only has CSL's growth outlook slowed significantly, it happened very soon after the initial guidance figures were released, suggesting that either it is (or will) face some significant headwinds or management simply overestimated growth potential. 

The post CSL shares: 3 reasons to buy and 3 reasons to sell appeared first on The Motley Fool Australia.

But not all of them are necessarily buys today. So, let's see what analysts are saying about three popular ASX shares this week.

Here's what you need to know:

CSL Ltd (ASX: CSL)

Despite CSL shares falling materially from their highs, the team at Bell Potter is not in a rush to invest. The broker has retained its hold rating on the biotech giant with a reduced price target of $155.00.

Bell Potter highlights that its shares are trading in line with peers, but estimates that its growth outlook is weaker than average. It said:

The current share price reflects a materially de-rated PE multiple of ~15x our FY27 NPAT forecast, bringing CSL in line with the global biopharma peer set which also trades at an avg PE of 15x. While CSL doesn't face the same extent of generic/biosimilar competition as these biopharma peers, it does have a lower growth outlook of ~2.5% revenue CAGR (3yr) per our forecast compared to >4% avg for global peers.

Considering the low-growth outlook in the near-term, risk to FY26 guidance, and our below-consensus FY27 forecasts, we maintain our HOLD recommendation notwithstanding the historically low trading multiple. We don't think CSL is out of the woods just yet. PT is lowered to $155.

Magellan Financial Group Ltd (ASX: MFG)

Over at Morgans, its analysts are positive on this fund manager ahead of its proposed merger with Barrenjoey.

This week, the broker has retained its buy rating on Magellan's shares with a trimmed price target of $11.99. It said:

MFG has given an end-to-March 2026 quarterly FUM update. FUM (A$37.5bn) was down 6% for the quarter due to a combination of outflows across most funds and market movements. Overall this was a softer quarter at the headline level, albeit some impacts from market volatility are unsurprising. We downgrade our MFG FY26F/FY27F EPS by -1%/-8% due to slightly weaker FUM assumptions and also applying more conservatism to our future Barrenjoey earnings forecasts. Our PT falls to A$11.99 (from A$12.43).

Whilst MFG's Investment Management performance remains patchy, we think the Barrenjoey merger fundamentally changes MFG's overall outlook, strengthening the business and providing additional pathways for growth. MFG also retains a strong balance sheet (~A$650m of liquidity, post deal). BUY maintained.

Woodside Energy Group Ltd (ASX: WDS)

Lastly, Morgans thinks that this energy giant's shares are a hold (with a $33.40) price target.

It believes its shares are fairly valued following a strong gain in response to the war in the Middle East. It said:

We downgrade our rating on WDS to HOLD (from ACCUMULATE). Owning WDS has been powerful insurance (as a hedge against supply disruption) but now trading above A$35/share and above our NAV, it has crossed over into an active wager that the crisis is more permanent than we estimate, which sadly is possible, but should this be our base case steering our strategy? No. We remove our 10% conflict premium and apply our upgraded oil/LNG deck, for a small net change in our target price, now at A$33.40 (was A$33.55).

The post Buy, hold, sell: CSL, Magellan, and Woodside shares appeared first on The Motley Fool Australia.

Despite this fall, many experts have tipped a recovery for CSL shares. 

At the time of writing, CSL shares are hovering close to 52-week lows, closing yesterday at $142.18. 

Fresh headwinds have hit the company this week as President Trump announced new 100% tariffs on Australian pharmaceuticals. 

CSL said in a statement on Tuesday that it had taken note of the new tariff announcement. However, the company said that it was not anticipating a large impact.

Following this news, the team at Bell Potter released updated guidance on CSL shares. 

How will the new tariffs impact CSL shares?

It seems Bell Potter shares the confidence expressed by CSL management. The broker also believes that the new tariffs won't have a large impact on business. 

We agree with CSL's initial assessment that the majority of its products are unlikely to be subjected to recently announced US pharmaceutical tariffs. Specifically, plasmaderived therapies (~63% of CSL revenue) appear to be explicitly excluded and CSL's flu vaccine sales (~14% of group) in the US are largely from UK manufacturing facilities, where a 10% tariff (and potentially shifting to 0%) is in place.

The broker said further concessions are also being made to companies that enter into onshoring and/or pricing agreements with the US government. 

Based on this, it continues to view the threats of tariffs as a ploy to increase US sovereign drug manufacturing and would not be surprised to see CSL enter into an official pricing/onshoring agreement after the recent $1.5b Illinois expansion, as nearly all big pharma companies have done.

Price target reduction

Although Bell Potter doesn't view these new tariffs as a threat to CSL's revenue, the broker reduced its price target. 

The broker has maintained a hold recommendation on the company and updated its price target to $155 (previously $175). 

From today's opening price of approximately $142, this indicates a potential upside of 9%. 

The broker said that while CSL doesn't face the same extent of generic/biosimilar competition as these biopharma peers, it does have a lower growth outlook.  

Considering the low-growth outlook in the near-term, risk to FY26 guidance, and our below-consensus FY27 forecasts, we maintain our HOLD recommendation notwithstanding the historically low trading multiple. We don't think CSL is out of the woods just yet. PT is lowered to $155.

The post What's Bell Potter's updated view on CSL shares? appeared first on The Motley Fool Australia.

The past few days might look like a step in the right direction, but the reality is that it doesn't even make a pinprick in terms of recovering the huge losses made over the past couple of years. 

CSL shares spiked at a 18-month high back in July 2024, and since then it's been a consistent string of declines. The share price is now 41% lower than 12 months ago, and down 17% for the year-to-date.

The most interesting thing is that analysts have widely considered the biotech company's shares oversold and undervalued for some time now. 

TradingView data shows that 12 out of 18 analysts have a buy or strong buy rating on the shares, with a maximum upside of $268.67. That implies a 89% upside as of the close of the ASX on Wednesday afternoon.

The headwinds the company has faced over the past 18 months look to be easing, there is significant and recurring global demand for its biotherapy products, and limited competition in the space.

The company is also growing, with some periods of double‑digit profit growth, and forecasts which underpin a recovery over the long term.

So why is it that CSL shares are struggling to regain the momentum? 

It looks like the problem could mostly be two-fold.

1. Investors lost confidence

A key reason behind why CSL shares are struggling to come back, is that there has been a major shift in investor sentiment.

CSL was once widely viewed as one of the most dependable growth companies on the ASX. But over the past few years it has experienced a notable slowdown in earnings growth and a sharp share price reduction. There have also been operational challenges and other headwinds such as lower vaccine demand, a surprise restructure, and even shock CEO exit.

In short, the company lost its reputation as a reliable ASX stock. Investors are no longer willing to pay a premium without a strong pipeline of expansion or concrete proof that share price growth can return.

2. There has been a market rotation

At the same time as the company-specific headwinds, there has been a broad market rotation away from healthcare related stocks so far in 2026. 

ASX healthcare shares have lagged behind most other sectors on the index so far in 2026 as investors reposition themselves towards ASX energy stocks, resources, and defensive assets. 

This rotation has put further pressure on CSL shares, and has prevented a meaningful recovery in the company's valuation.

What will it take for CSL shares to finally bounce back?

Ultimately, CSL might not gain positive traction from investors until it can prove that it has reignited short-term revenue and profit growth and overcome hurdles faced over the past 18 months.

Once investor sentiment shifts it could spark a sharp uptick in interest in its shares.

And of course, a market-wide rotation back towards healthcare stocks would also help.

The post Why are CSL shares struggling to regain momentum? appeared first on The Motley Fool Australia.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 set to fall

The Australian share market looks set to fall on Thursday despite a good night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 24 points or 0.25% lower this morning. In the United States, the Dow Jones rose 2.85%, the S&P 500 jumped 2.5% and the Nasdaq stormed 2.8% higher.

CSL shares given hold rating

Bell Potter still thinks it is too early to buy CSL Ltd (ASX: CSL) shares. This morning, the broker has retained its hold rating on the biotherapeutics giant's shares with a $155.00 price target (from $175.00). It said: "The current share price reflects a materially de-rated PE multiple of ~15x our FY27 NPAT forecast, bringing CSL in line with the global biopharma peer set which also trades at an avg PE of 15x. While CSL doesn't face the same extent of generic/biosimilar competition as these biopharma peers, it does have a lower growth outlook of ~2.5% revenue CAGR (3yr) per our forecast compared to >4% avg for global peers."

Oil prices sink

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a subdued session on Thursday after oil prices crashed overnight. According to Bloomberg, the WTI crude oil price is down 14.6% to US$96.42 a barrel and the Brent crude oil price is down 12% to US$96.19 a barrel. This has been driven by the signing of a ceasefire agreement between the US and Iran.

Dividend payday

Today is payday for shareholders of a number of ASX 200 shares. This includes CSL, Capricorn Metals Ltd (ASX: CMM), Qube Holdings Ltd (ASX: QUB), Brambles Ltd (ASX: BXB), SGH Ltd (ASX: SGH), Atlas Arteria Group (ASX: ALX), and NRW Holdings Limited (ASX: NWH). CSL will be rewarding its shareholders with a $1.81 per share dividend later today.

Gold price lifts

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session on Thursday after the gold price pushed higher overnight. According to CNBC, the gold futures price is up 1.3% to US$4,748.1 an ounce. Traders appear to believe that falling oil prices could limit interest rate hikes, which would be good news for the precious metal.

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

The key is not trying to time the market or chase quick wins. Instead, it is about consistency, discipline, and backing quality investments that can compound over many years.

Here is a simple approach that could help.

Consistency

The biggest advantage of investing monthly is that you build momentum.

By investing regularly, you naturally buy more ASX shares when prices are lower and fewer when prices are higher. This is often referred to as dollar-cost averaging and can help smooth out market volatility.

The important part is sticking to your plan regardless of short-term market movements.

Build around quality ASX shares

Each month, look to allocate your capital into high-quality ASX shares with strong long-term prospects.

These are typically businesses with competitive advantages, strong management teams, and clear growth opportunities.

For example, REA Group Ltd (ASX: REA) dominates online real estate listings in Australia, while CSL Ltd (ASX: CSL) operates in a global healthcare market with significant long-term demand.

Owning these types of companies can provide a solid base for your portfolio.

Mix in growth

Alongside established names, consider allocating part of your monthly investment to growth-focused companies.

These businesses often reinvest heavily to expand their operations and can deliver strong returns if they execute well.

Companies such as Goodman Group (ASX: GMG) and TechnologyOne Ltd (ASX: TNE) are examples of businesses benefiting from increasing demand for digital infrastructure and enterprise software.

Including growth exposure can help accelerate your portfolio's long-term returns.

Use ETFs

If you do not want to pick individual stocks every month, ETFs can make the process easier.

Funds like the Vanguard MSCI Index International Shares ETF (ASX: VGS) provide access to global markets, while the Betashares Nasdaq 100 ETF (ASX: NDQ) focuses on leading technology companies.

Rotating between shares and ETFs can help you build a diversified portfolio over time.

Think long term

The real power of this strategy comes from compounding.

Investing $1,000 each month adds up to $12,000 per year. Over a decade, that is $120,000 invested, before considering any returns.

If your portfolio can achieve an average return of around 10% per annum (not guaranteed), your total portfolio value could grow to $200,000 after 10 years.

By staying consistent, focusing on quality, and thinking long term, this simple approach can become a powerful way to build wealth through ASX shares.

The post How to invest $1,000 per month in ASX shares and build long-term wealth appeared first on The Motley Fool Australia.

CSL Ltd (ASX: CSL) and Xero Ltd (ASX: XRO) have both fallen more than 40% over the past 12 months and are drifting near 52-week lows.

The key question: Are these warning signs or classic buy-the-dip opportunities?

For investors willing to follow Warren Buffett's playbook and buy quality during periods of fear, these two ASX stocks could be worth a serious look right now.

CSL: Powerful defensive edge

CSL shares may be out of favour, but the healthcare business remains world-class.

This is a global leader in plasma therapies and vaccines, supplying essential treatments for chronic and rare diseases. Demand is highly resilient as patients don't stop needing these products during economic downturns.

That gives the ASX stock a powerful defensive edge.

Recent results have been softer, with margin pressure, restructuring costs, and policy changes weighing on performance. That's largely what's driven the share price lower.

But there are signs of a turnaround.

Plasma collections are improving, margins are stabilising, and its Seqirus vaccine division continues to add diversification. This looks more like a reset than a structural decline.

Risks remain, of course. Any delays in earnings recovery, ongoing cost pressures, or currency headwinds could keep sentiment weak.

Still, analysts are firmly in the corner of this $67 billion ASX stock.

Broker sentiment remains broadly positive, with most maintaining buy or outperform ratings. The average 12-month price target sits around $209.40, implying roughly 47% upside from current levels.

Xero: Recurring subscription revenue

Xero has also been caught in the tech sell-off, but its long-term growth story is still intact.

The company provides cloud-based accounting software for small and medium-sized businesses, generating recurring subscription revenue across a growing global customer base.

Its platform is sticky, scalable, and deeply embedded in client workflows. That's a powerful combination.

So why the sell-off of the ASX stock?

It's not just Xero. The broader tech sector has been hit by rising interest rates, valuation concerns, and fears that AI could disrupt traditional software models.

That uncertainty triggered a sharp rotation out of ASX growth stocks.

But now, bargain hunters are stepping back in.

After months of heavy selling, Xero shares are trading at a significant discount to prior highs — and analysts are taking notice.

According to TradingView data, 12 out of 13 analysts rate the stock as a buy or strong buy. Price targets suggest potential upside of up to 195%, with some tipping the shares could reach $231.10 over the next 12 months.

Meanwhile, Citi has retained its buy rating and set a $144.80 price target. That points to around 82% upside.

The risks? Competition, AI disruption, and any slowdown in growth or margins.

Foolish Takeaway

CSL and Xero have both been heavily sold, but their core businesses remain strong.

For investors following Warren Buffett, these high-quality ASX stocks look especially compelling amid market fear and volatility.

The post I'm following Warren Buffett to snap up these cheap ASX stocks appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) biotech stock closed yesterday trading for $140.31. During the Wednesday lunch hour, shares are changing hands for $143.10 apiece, up 2.0%.

For some context, the ASX 200 is up 2.5% at this same time amid renewed hopes of a deescalation in the Iran war.

Despite today's welcome boost, however, CSL shares remain down a sharp 41.8% since this time last year. Those losses will have only been modestly eased by the two unfranked dividends the company paid out over the past year.

CSL stock trades on a 3.0% unfranked trailing dividend yield.

Looking ahead, however, Morgans Financial's Mitch Belichovski expects "diminishing headwinds" for the ASX 200 healthcare share (courtesy of The Bull).

CSL shares: buy, hold or sell?

"This biotechnology giant has a strong research and development pipeline and a successful track record in launching new products," Belichovski said.

"Its first half result in fiscal year 2026 was softer than expected, with net profit after tax and amortisation declining 7%," he noted.

Explaining his hold recommendation on CSL shares, Belichovski concluded:

However, the company's outlook appears supported through a combination of cost-outs, marketing initiatives and diminishing headwinds, which are all reinforced by the board's urgency around operational delivery.

This provides long term appeal for investors already holding the stock.

What's the latest from the ASX 200 biotech stock?

CSL reported its half year results (H1 FY 2026) on 11 February.

Atop the 7% year on year decline in NPATA Belichovski mentioned above, the company also suffered a 4% decline in revenue on a constant currency basis to US$8.3 billion.

The company said it had been negatively impacted by a number of factors over the six months including government policy changes, one-off restructuring costs and impairments.

On the positive side, CSL reported a 3% year-on-year increase in cash flow from operations to US$1.3 billion. And management increased the share buyback program from US$500 million to US$750 million.

"We are clearly not satisfied with our performance and have implemented a number of initiatives to drive stronger growth going forward," CSL's chief financial officer Ken Lim said of the half year results.

Looking ahead, Lim said, "In the second half we have an ambitious growth plan, driven by immunoglobulin, albumin and our newly launched products."

Pleasingly, CSL reaffirmed its full year FY 2026 guidance for 2% to 3% revenue growth and 4% to 7% NPATA growth.

CSL shares closed down 4.6% on the day of the results release.

The post Why beaten down CSL shares now offer 'long-term appeal' appeared first on The Motley Fool Australia.