That does not mean every decline is a buying opportunity. Sometimes the market is reacting to real and lasting challenges.

But in other cases, I think sentiment can overshoot.

Here are three ASX shares that have been under pressure but could have the potential to rebound strongly over time.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster has seen its share price fall heavily over the past year, which reflects both a slowdown in consumer spending and changing expectations around growth.

The business operates in online furniture and homewares, which is naturally tied to housing activity and discretionary spending.

That creates some short-term uncertainty. But I think it is worth looking at the bigger picture.

The shift toward online retail is still playing out, and Temple & Webster remains one of the leading pure-play operators in that space in Australia.

If consumer conditions stabilise and housing-related activity improves, I think there is scope for the business to regain momentum.

Megaport Ltd (ASX: MP1)

Megaport is another name that has been through a significant reset.

Its share price has been volatile, reflecting both its growth profile and the challenges of scaling a global network business.

What I find interesting is the underlying role it plays. Megaport connects businesses to cloud infrastructure and data centres, which are becoming increasingly important as digital demand grows.

The company has also been expanding its offering, including moving into adjacent areas like compute and GPU services. That broadens its opportunity set.

If execution improves and growth continues, I think there is potential for sentiment to shift.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa's share price has also pulled back, despite the business continuing to expand globally.

This is a fast-fashion jewellery retailer with a strong track record of store rollout and international growth.

What stands out to me is the scalability. The company continues to open new stores across multiple regions, and its model has proven to be repeatable in different markets.

Short-term pressures, such as cost inflation or softer consumer spending, can weigh on performance.

But over a longer period, I think the growth opportunity remains significant.

Foolish Takeaway

Beaten-down ASX shares can be risky, but they can also offer meaningful upside if the underlying business remains intact.

Temple & Webster, Megaport, and Lovisa have seen sentiment weaken while still operating in areas with long-term potential.

For me, that is often where the possibility of a strong rebound begins.

The post 3 beaten-down ASX shares that I think could rebound strongly appeared first on The Motley Fool Australia.

Three ASX shares that brokers have named as buys this week are listed below. Here's why their analysts are feeling bullish on them right now:

Guzman Y Gomez Ltd (ASX: GYG)

According to a note out of Morgans, its analysts have retained their buy rating on this burrito seller's shares with an improved price target of $26.70. This follows the release of a third-quarter update that impressed the broker. It highlights that Guzman Y Gomez delivered a meaningful acceleration in Australian comparable store sales growth, providing tangible evidence that the business is executing well against a challenging consumer backdrop. It also points out that transaction growth continued to outpace comparable store sales growth. This maintains its strategy to be volume and frequency-led rather than price-driven. The Guzman Y Gomez share price is fetching $19.50 at the time of writing.

Lovisa Holdings Ltd (ASX: LOV)

A note out of UBS reveals that its analysts have upgraded this fashion jewellery retailer's shares to a buy rating with a $26.00 price target. UBS highlights that Lovisa's shares have fallen heavily this year amid concerns over slower store growth, softer like-for-like sales in the local market, and ongoing losses from the new Jewells store brand. However, the broker believes much of this risk is now priced in. Furthermore, it thinks the resilience of Lovisa's youth-focused, low price point offering is underappreciated by the market, and expects management to prevent sustained losses from Jewells either by fixing the business or considering a closure. The Lovisa share price is trading at $23.96 this afternoon.

Telix Pharmaceuticals Ltd (ASX: TLX)

A note out of Bell Potter reveals that its analysts have retained their buy rating and $19.00 price target on this radiopharmaceuticals company's shares. This follows the release of a solid first-quarter sales update this week. Bell Potter was pleased with Telix's update and believes it leaves the company well-placed to achieve its guidance in FY 2026. In addition, it highlights that Telix continues to make good progress on multiple pipeline products. It also sees major short term share price catalysts on the horizon. This includes the potential acceptance by the FDA of the resubmitted NDA for Pixclara and the amendment to the IND for TLX591. The Telix share price is fetching $13.83 at the time of writing.

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

The ASX 200 share ended the session 2% higher at $21.42.

This was despite Bell Potter making a major downgrade to its valuation.

What did the broker say about this ASX 200 share?

Bell Potter has been reviewing Lovisa's performance in FY 2026 and has made downward revisions to its estimates. It said:

Lovisa Holdings (LOV)'s 1H26 result back in February saw revenue beats to BPe, however misses in both EBIT and NPAT on a group basis (core Lovisa brand + new global brand, Jewells) vs BPe. The trading update for the first 7 weeks of 2H26 saw total sales +21.5% on pcp and global comparable sales +1.6% on pcp (vs +2.2% in 1H26) tracking softer than BPe.

The strong performance in the US/UK markets of 30- 40% revenue growth on pcp has been offset by a weaker than expected performance (vs BPe) in the core ANZ market with a ~5% decline on pcp during 1H26. Net new stores of 64 driven by 85 openings & 21 closures and total stores at 1,095 was a miss to BPe (however in line with Consensus), however with UK the standout region adding 14 new stores.

In response, Bell Potter has downgraded its net profit estimates by double-digit percentages through to FY 2028. It adds:

We factor in the misses to our comparable sales growth (2H to-date), EBIT and operating cost base (in 1H26) and we continue to include the Jewells brand within our underlying forecasts ($2.5m in revenue and $10.8m in losses in 1H26). Our revised forecasts see global total sales growth of ~19% in 2H26 and ~21% in FY26e (on pcp). The net result sees our NPAT forecasts -11%/-11%/-10% for FY26/27/28e.

New price target

According to the note, the broker has retained its hold rating on the ASX 200 share with a price target of $24.00 (from $33.50).

This implies potential upside of 12% for investors over the next 12 months. In addition, a dividend yield of 3.6% is expected over the period, stretching the total potential return beyond 15%.

Commenting on its hold recommendation and sizeable valuation downgrade, Bell Potter said:

Our Target Price decreases by 28% to $24.00 (prev $33.50). Along with our earnings downgrades, we reduce our target P/E multiple to ~29x (prev. 32x) on a blended FY26/27e basis to reflect the de-rating in the sector. We highly rate LOV's strong gross margin outlook, long term store opportunity upside, further prospects arising from changes in the competitive dynamics in US/UK/South Africa, together with strong execution and leadership.

On the flipside, we see elevated risks within the core Australian market with a fast-growing competitor and factor in further declines in comparable store sales for the region. However, we see some of these risks offset by the strong performance in the US/UK with better efficiencies within the North American store network and continuing growth in new stores within UK supported by the exit of key competitor as somewhat evident in the 1H26 result. Overall, we remain cautious considering the current weak consumer environment, potential costs related to the broader group's new brand growth initiatives and also investments into market share & store refits to mitigate competitive pressures in key markets.

The post Why Bell Potter just downgraded its valuation of this popular ASX 200 share appeared first on The Motley Fool Australia.

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

ASX 200 set to open flat

The Australian share market looks set to open flat on Tuesday despite a decent start to the week in the US. According to the latest SPI futures, the ASX 200 is poised to open the week right where it ended the last one. In late trade on Wall Street, the Dow Jones is up 0.35%, the S&P 500 is up 0.45%, and the Nasdaq is 0.55% higher.

Oil prices rise

It could be a good session for ASX 200 energy shares Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices rose again overnight. According to Bloomberg, the WTI crude oil price is up 0.8% to US$112.44 a barrel and the Brent crude oil price is up 0.3% to US$109.35 a barrel. Oil prices pushed higher after Donald Trump reiterated threats to bomb Iranian infrastructure.

Lovisa given hold rating

The Lovisa Holdings Ltd (ASX: LOV) share price is close to fair value according to analysts at Bell Potter. This morning, the broker has retained its hold rating on the fashion jewellery retailer's shares with a heavily reduced price target of $24.00 (from $33.50). It said: "We highly rate LOV's strong gross margin outlook, long term store opportunity upside, further prospects arising from changes in the competitive dynamics in US/UK/South Africa, together with strong execution and leadership. On the flipside, we see elevated risks within the core Australian market with a fast-growing competitor and factor in further declines in comparable store sales for the region."

Gold price edges higher

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a positive session on Tuesday after the gold price edged higher overnight. According to CNBC, the gold futures price is up 0.1% to US$4,684.1 an ounce. Traders were buying gold as Trump's deadline for Iran neared.

Nufarm named as a buy

The team at Bell Potter has named Nufarm Ltd (ASX: NUF) shares as a buy with a $3.60 price target. This implies potential upside of over 70% for investors. Commenting on the agricultural chemicals company, it said: "We are now beginning to enter the most material selling windows for NUF and the majority of markets look supportive of reasonable demand levels of crop protection products."

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

Lovisa is a leading retailer of affordable jewellery, which is largely aimed at younger shoppers.

I love buying undervalued businesses and this one seems like one of the most undervalued right now because it has dropped more than 40% in the past six months and it's down roughly 25% in the year to date, as the chart below shows.

Something isn't a buy just because it's down. However, I think the ASX 200 share is being significantly undervalued by the market, given my view of how much profit could grow.

Rapid profit growth

There are few ASX businesses that are growing globally as well as Lovisa. It has at least one store in numerous markets.

In fact, comparing the FY26 half-year result (HY26) to the HY25 result shows it added at least one more store year over year in the following markets: Australia, New Zealand, China, Vietnam, South Africa, Botswana, Zambia, the UK, Ireland, Spain, France, Germany, Belgium, the Netherlands, Poland, Italy, Hungary, UAE, the USA, Canada, Mexico, and its Middle East and Africa franchise.

Overall, its total Lovisa store count grew 15.5% year-over-year to 1,089 locations. I think it can quickly reach 1,500 stores over the next few years.

This store growth assisted Lovisa's core revenue to grow 22.7% to $498.1 million and net profit increased 21.5% to $69.6 million.

Will it be impacted by the inflation?

The ASX 200 share has a global customer base, so anything can happen, but I think younger shoppers are less likely to be impacted by rising rates because they're less likely to have a mortgage.

Lovisa's FY23 result – which was in the thick of the higher inflationary period earlier this decade – saw (on a comparable 52-week basis) revenue growth of 33.1% and net profit growth of 20.1%.

Past profit growth is not a guarantee of future profit growth, but I think the ASX 200 share's ongoing store rollout will help sustain revenue and earnings growth during this period.

According to the projection on Commsec, the business is currently forecast to generate 88.3 cents of earnings per share (EPS) in FY26, putting it at under 25x FY26's estimated earnings.

With the company's expanding global network of stores, I think its scale benefits will continue to improve, giving it the ability to grow its gross profit margin (and other margins), even if costs are rising.

The ASX 200 share's growth option

The final positive I want to point out is that the business has recently opened up another growth avenue with the fact that it has opened several Jewells stores in the UK. Jewells says sells trend-led affordable jewellery for everyday use, with sterling silver, gold vermeil and gold-plated designs.

There are already a lot of jewellery businesses out there, but this gives Lovisa another way to grow revenue and earnings with products at a different price point.

If Lovisa can grow Jewells to a sufficient scale, it can start boosting earnings, and this would help diversify its profit base further (beyond the great geographic exposure it already has).

Over time, it could become a material contributor to the overall business.

The post Here's what I consider to be the very best ASX 200 share to buy in April appeared first on The Motley Fool Australia.

Markets have been unsettled, some sectors have sold off sharply, and sentiment is still a bit fragile. 

But that is often when I like to start building positions in businesses with strong long-term potential.

Right now, three ASX shares stand out to me for very different reasons.

DroneShield Ltd (ASX: DRO)

DroneShield is one of the more interesting opportunities on the market right now, in my opinion.

What draws me to the company is its exposure to a rapidly evolving area of defence technology.

The use of drones in modern conflicts is increasing, and with that comes the need for effective counter-drone solutions. DroneShield is positioning itself right in the middle of that shift.

I see this as a structural trend rather than a short-term one. Defence spending is rising globally, and technologies that can detect, track, and neutralise drones are becoming more important. That creates a large and expanding addressable market.

Of course, this is not without risk. Smaller companies can be volatile, and contract timing can impact results.

But from a long-term perspective, I think DroneShield offers exposure to a theme that could play out over many years.

Netwealth Group Ltd (ASX: NWL)

Netwealth is a very different type of business. Where DroneShield is more thematic and emerging, Netwealth is a proven compounder benefiting from a structural shift in financial services.

The move toward independent financial advice and platform-based investing continues to gain momentum, and Netwealth has been one of the key beneficiaries.

What I like most here is the consistency. Funds under administration have grown steadily over time, supported by strong inflows and adviser adoption. That creates a recurring revenue base that can scale as the platform grows.

There will be competition, and valuations can fluctuate. But I think the long-term trend is clear, and Netwealth is well positioned within it.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa adds a different flavour again. This ASX 200 share is a jewellery retail business that has demonstrated an ability to expand globally and grow earnings through its store rollout strategy.

What stands out to me is the pace of expansion. The company continues to open new stores across multiple regions, and that growth is supported by strong margins and a relatively simple operating model.

Retail can be cyclical, and consumer spending is not always predictable. But Lovisa's focus on affordable fashion and fast product turnover gives it a level of flexibility.

I think it is one of the better examples of an Australian retailer successfully scaling internationally.

Foolish takeaway

As April arrives, I am not looking for one type of opportunity. I am looking for a mix.

DroneShield offers exposure to a powerful defence and technology trend, Netwealth provides steady platform-driven growth, and Lovisa brings global retail expansion. They are very different businesses, but each has a clear pathway to long-term growth.

The post Why I'd buy DroneShield and these ASX 200 shares next month appeared first on The Motley Fool Australia.

It's not often that some of the most compelling businesses trade at extremely low prices.

We saw great prices during 2022 and 2023 as high inflation caused concerns about economic conditions and rising interest rates. It seems the same thing is happening again, which I believe will be a great opportunity to buy and hold these Australian stocks for the long term.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle says it's an investment business that is growing a diverse family of world-class investment management businesses (affiliates).

Along with holding stakes in these affiliates, Pinnacle provides seed funding, global institutional, retail distribution, and "industrial-grade" middle office and infrastructure services.

By doing this, Pinnacle enables the investment professionals to focus on delivering investment returns for clients.

Pinnacle has a growing portfolio, which includes Aikya, Antipodes, Coolabah Capital, Firetrail, Hyperion, Life Cycle, Metrics, Pacific Asset Management, Resolution Capital, and more.

For a business that has a large chunk of its earnings linked to funds under management (FUM) performance, it's understandable why the Pinnacle share price has declined during this period. But the fall of more than 20% this year seems like an overreaction.

Pinnacle's affiliates have a strong collective track record of outperforming their benchmarks over the long term, and they also have a history of attracting net inflows from clients. This has helped drive the underlying net profit (excluding performance fees) of Pinnacle over the long term. I believe FUM growth will return (or continue) after this period.

With the current market pessimism, I think this is a great time to look at the Australian stock while it's trading at under 20x FY26's estimated earnings, according to CMC Invest.

Lovisa Holdings Ltd (ASX: LOV)

Another business I think would be a great buy during this market volatility is Lovisa, a retailer of affordable jewellery that has a global store network.

The business has built an impressive market position and continues to grow at an impressive rate.

Its financial growth and store rollout are two of the main reasons to consider this Australian stock, in my view, along with the fact that the Lovisa share price has dropped more than 25% this year, making the valuation much more appealing.

Excluding its new start-up business Jewells, Lovisa reported in HY26 that revenue grew by 22.7%, with comparable store sales growth of 2.2%. Underlying operating profit (EBIT) increased by 20.4%, and net profit increased 21.5% despite the fact that the company is investing significantly in long-term growth.

Its global store count increased by 152 (or 16%) year over year to 1,095. Store growth is happening in numerous countries, including Australia, South Africa, China, Vietnam, the UK, Zambia, Ireland, Spain, France, Germany, the Netherlands, the USA, Canada, and Mexico.

As long as the Australian stock continues to deliver positive comparable store sales growth, I think the store rollout will be a positive for both total revenue and long-term profit margins.

I'm not expecting the new Jewells business to become a major contributor to the company, but it may have a promising future if it can reach a certain scale.

The Lovisa share price is currently valued at 24x FY26's estimated earnings, according to CMC Markets. This seems like a very promising time to invest, in my view.

The post 2 strong Australian stocks to buy now with $8,000 appeared first on The Motley Fool Australia.

Broker forecasts can be useful here. While they're not always right, they do highlight where professional analysts see value based on earnings expectations and company outlooks.

Right now, two ASX 200 shares stand out to me because analysts are pointing to potential upside of 60% or more.

Life360 Inc. (ASX: 360)

Life360 has had a tough run recently, with its share price sitting at $18.98. 

That weakness appears to have caught the attention of Bell Potter, which has a buy recommendation and a $37.75 price target on the stock. That is almost double the current share price.

A key part of the broker's view comes down to the company's history of outperforming expectations. It said:

We note, however, the company has a good track record of beating guidance and, for instance, upgraded the 2025 guidance at the Q2 and Q3 results last year, then upgraded again in January and beat at adjusted EBITDA in March.

That kind of consistency is something I think investors often underestimate, especially with growth companies. Even when near-term guidance looks conservative, businesses that regularly exceed expectations can still deliver strong returns over time.

Bell Potter also points out that Life360 has guided to relatively modest growth in the near term, which could leave room for a small beat, particularly on margins. It added:

We therefore believe that, after setting expectations relatively low for Q1, there is some chance of a small beat, perhaps more in the adjusted EBITDA margin rather than MAU growth.

I think that dynamic is important. Expectations matter just as much as performance when it comes to share prices. If expectations are set low, it doesn't take much for sentiment to improve.

For me, Life360 still looks like a high-quality growth business with a large global opportunity. The recent pullback doesn't remove the risks, but it could be creating a more attractive entry point for long-term investors with this ASX 200 share.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a very different type of business, but I think it's just as interesting right now.

The fashion jewellery retailer's shares are trading at $22.80, and Morgans has a buy recommendation with a $36.80 price target. That suggests upside of more than 60% from current levels.

The broker was encouraged by the company's recent first-half result, noting:

LOV reported a strong underlying 1H26 result with EBIT up 20.4%, ~6% ahead of our expectations, driven by store network growth and strong gross margins.

That combination of sales growth and margin strength is exactly what I like to see in a retail business. It suggests the company isn't just expanding, but doing so profitably.

Lovisa's store rollout is another key part of the growth story. Morgans highlighted that the company added a net 64 new stores during the half, taking its total footprint to 1,095 locations globally.

But with its shares tumbling despite the positives, the broker thinks an opportunity has opened up. It said:

We see the pull back in share price as a buying opportunity at ~23x FY27 PE.

I think that's a fair point. The share price has come back, but the underlying business appears to still be performing well. That disconnect is often where long-term opportunities can emerge.

Foolish takeaway

Both of these ASX 200 shares could be worth considering at these prices, in my opinion.

Life360 offers a technology-driven growth story with recurring revenue and a history of beating expectations. Lovisa provides exposure to a global retail brand that continues to expand its footprint while maintaining strong margins.

The post 2 ASX 200 shares that now have 60% upside: Analysts appeared first on The Motley Fool Australia.

Concerns around artificial intelligence (AI) disruption, rising interest rates, and global uncertainty have weighed heavily on valuations. However, for long-term investors, these pullbacks can create opportunities to buy high-quality businesses at more attractive prices.

Here are three ASX growth shares that analysts think could be worth considering after the recent weakness.

Lovisa Holdings Ltd (ASX: LOV)

The first ASX growth share that could rebound strongly is Lovisa.

The fast-fashion jewellery retailer has built a highly scalable global store network, with a simple and repeatable model that continues to perform across different markets. Its ability to roll out new stores quickly and generate strong returns on capital has been a key driver of its success.

Despite what the recent share price weakness might suggest, the company's expansion story remains intact, with significant opportunities to grow its store footprint internationally.

Morgans is positive on its outlook and has a buy rating on Lovisa shares with a $36.80 price target. This implies potential upside of around 60% from current levels.

Megaport Ltd (ASX: MP1)

Another ASX growth share that could be worth a look is Megaport.

The company operates a global software-defined network that enables businesses to connect to cloud providers and data centres with speed and flexibility. As demand for cloud computing and data-intensive applications grows, the need for this type of connectivity continues to increase.

Megaport also recently announced the major acquisition of Latitude that expands its addressable market significantly. Management highlights that the Latitude deal creates "an industry-leading Compute and Network-as-a-Service platform to power high-performance applications and AI workloads globally."

According to Morgans, the company's outlook remains attractive. The broker has a buy rating on its shares with a $16.00 price target, suggesting potential upside of approximately 100%.

Xero Ltd (ASX: XRO)

A final ASX growth share that could rebound strongly is Xero.

The accounting software company provides cloud-based financial tools to small and medium-sized businesses globally.

While sentiment towards software stocks has weakened recently due to AI disruption fears, Xero believes that AI will be supportive and not disruptive to its business. This leaves it well-positioned to continue benefitting from increasing adoption of digital accounting solutions and opportunities to expand its platform with additional services.

UBS is bullish on the company's prospects and has a buy rating with a $174.00 price target. This implies potential upside of around 130% from current levels.

The post 3 ASX growth shares that could rebound strongly after the selloff appeared first on The Motley Fool Australia.

At the time of writing, Lovisa shares are down 0.62% to $20.94. The stock is now trading not far above its 52-week low of $19.30 and remains well below levels seen earlier in the past year.

This comes after billionaire Brett Blundy increased his stake in the jewellery retailer, marking his first on-market purchase in more than a decade.

Let's take a closer look.

Blundy lifts stake after long absence

According to two separate ASX filings, Brett Blundy has been buying shares in Lovisa across multiple on-market transactions in March.

In the first notice, Blundy acquired 332,000 shares between 12 March and 19 March. These purchases were made at prices ranging from approximately $20.35 to $20.50 per share.

A second filing shows an additional on-market purchase of 263,000 shares on 20 March at around $20.32 per share.

Combined, this takes total recent buying to 595,000 shares, representing an investment of roughly $12 million.

Following these transactions, Blundy now holds approximately 43.3 million shares directly. He also maintains an additional indirect interest through associated entities, taking his total exposure to more than 43.5 million shares.

This marks his first on-market buying activity in Lovisa since December 2014.

Stock drifts despite insider buying

Despite the insider buying, the share price has failed to respond positively.

Lovisa shares have been trending lower in recent months, with the stock down 30% this year alone.

Recent weakness reflects pressure across discretionary retail stocks, alongside a valuation reset after a strong multi-year run through last year.

From a technical perspective, the stock has been making lower highs and lower lows, indicating a sustained downtrend. Momentum indicators have also softened, with the relative strength index (RSI) sitting in the lower range.

The share price is now trading near the lower end of its recent range, which has previously acted as a support zone.

What's weighing on sentiment?

While Lovisa continues to expand its global store footprint, investor focus has shifted towards margin pressures and growth sustainability.

Higher costs, including wages and rent, are weighing on profitability across the retail sector. At the same time, consumer spending remains uneven, particularly in discretionary categories.

This has led to a more measured stance toward retail names that previously commanded premium valuations.

Lovisa's rapid international expansion remains a key part of its long-term strategy, with more than 1,000 stores now operating across over 50 markets. However, the pace of growth also brings execution risk.

Foolish Takeaway

Blundy's return to buying shares may be seen as a signal of long-term confidence, particularly given his deep history with the business.

However, the lack of a positive share price reaction suggests broader market factors are currently outweighing insider activity.

With the stock trading near its 52-week lows and momentum still weak, near-term movement is likely to remain tied to retail conditions.

The post Billionaire buying isn't enough to lift this ASX retail stock. Here's why appeared first on The Motley Fool Australia.

After initially plunging almost 2% this morning, the ASX 200 pared back those losses and ended up closing 0.74% lower today. That loss leaves the index at 8,365.9 points.

This coldwater start to the trading week for Australian investors comes after a tough end to the American trading week on Saturday morning (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) was hit hard, falling by a horrid 0.96%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was hit even harder, dropping 2.01%.

But let's get back to this week and the local markets now with a look at how the various ASX sectors handled today's trading conditions.

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

When growing companies experience a significant decline, it can mean investors can buy businesses at a much better price-to-earnings (P/E) ratio.

Two of the leading ASX growth shares that I'm excited about, outside of the tech space, are the following:

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is an affordable global jewellery retailer that aims to provide younger shoppers with attractive, good-value products.

I'm impressed by how much the business has already grown – to more than 1,000 global stores – and it's still expanding at a pleasing pace.

In the FY26 half-year results, it reported 152 additional stores than in HY25, bringing its total to 1,095. I think the ASX share still has plenty of store growth potential in countries like Canada, Mexico, Germany, China, Vietnam, the UK, the US, Taiwan, and Hong Kong. The new brand that Lovisa has started, Jewells, could also be another useful growth avenue.

The company's core revenue and net profit both increased by more than 20% in HY26, so it's improving at a strong rate.

The share price is down about 50% over the last six months and has dropped 30% this year, so this looks like an opportune time to invest.

Using the projection on CMC Invest, the Lovisa share price is now valued at just 23x FY26's estimated earnings. That puts the PEG ratio at close to 1, making it an appealing pick today.

The ASX share is expected to pay an annual dividend per share of 97 cents in FY26, according to CMC Invest, giving the business a possible forward dividend yield of 4.75%. I'm expecting the dividend to grow at roughly the same speed as net profit in the coming years.

Guzman Y Gomez Ltd (ASX: GYG)

GYG is a Mexican food restaurant business with big ambitions. At the end of the FY26 half-year period, it had 237 locations in Australia – it wants to reach 1,000 restaurants within 20 years.

On top of that, the ASX share has a growing Asian network. I believe Asia gives GYG significant earnings growth potential beyond Australia, which the market is underestimating. It now has 22 locations in Singapore and five in Japan. I'm hopeful the US can deliver profitable growth, but I'm not counting on it.

HY26 saw Australia network sales increase 17.4% to $632 million, while Asian network sales grew 19.3% to $42 million. GYG's overall net profit jumped 44.9% to $10.6 million.

If the company can continue to expand its restaurant count, comparable sales, and profit margins, then it should be on a very appealing journey to a great bottom line in the coming years.

It has dropped by more than 30% in the past six months, so this is an appealing time to invest, in my view.

The forecasts on CMC Invest suggest that the Guzman Y Gomez share price could be valued at 36x FY28's estimated earnings, with a possible FY28 grossed-up dividend yield of 3.4%, including franking credits.

The post 2 ASX shares that I rate as buys today for both growth and dividends! appeared first on The Motley Fool Australia.

It's not often that share prices go through a decline of 10% or more. Widespread selling is painful as a shareholder but there are lower valuations (almost) across the board for brave prospective investors.

Sell-offs give us the chance to search across the S&P/ASX 300 Index (ASX: XKO) (or smaller) to find beaten-up opportunities which could then bounce back when market confidence returns.

Assuming the investment still has a positive long-term outlook, a large decline is a great opportunity to see big returns if/when there's a recovery.

For example, if a share price drops by 50%, then returning to the previous position would be a return of 100%! Of course, it's not as easy as that to find the right opportunities. I'd only go for investments I believe can deliver higher earnings in three years from now.

Where I'm seeing exciting ASX share opportunities

In my view, there are multiple areas where the market is being too bearish on certain ASX shares.

The ASX tech share (and tech-related) space is awash with names that have been hit by AI worries, then hit again by the prospect of inflation and higher interest rates. I'm thinking of names like Siteminder Ltd (ASX: SDR), TechnologyOne Ltd (ASX: TNE), Xero Ltd (ASX: XRO), REA Group Ltd (ASX: REA) and Pro Medicus Ltd (ASX: PME).

Businesses in the funds management space are certainly feeling the pain of lower share markets, as well as a hit to market confidence. I think the businesses of Pinnacle Investment Management Group Ltd (ASX: PNI), L1 Group Ltd (ASX: L1G) and Australian Ethical Investment Ltd (ASX: AEF) are very compelling options right now.

The ASX retail share space is appealing as well because market confidence in them can be cyclical. I think growing retail businesses could be particularly good long-term investments during this period, such as Temple & Webster Group Ltd (ASX: TPW), Lovisa Holdings Ltd (ASX: LOV), Universal Store Holdings Ltd (ASX: UNI) and Nick Scali Ltd (ASX: NCK).

Finally, I want to highlight some other ASX growth shares that have been caught up in the sell-off but could be generate significantly higher profit in three to five years. I'm attracted to Breville Group Ltd (ASX: BRG), Sigma Healthcare Ltd (ASX: SIG), Tuas Ltd (ASX: TUA) and Guzman Y Gomez Ltd (ASX: GYG).

The post Why buying ASX shares in March could supercharge your wealth appeared first on The Motley Fool Australia.

It's clear to see why this is the case. Instead of picking individual shares, investors can buy a single ETF and gain exposure to dozens or even hundreds of businesses at once. 

For investors looking for broad exposure to Australian shares, one of the most favoured options is the Vanguard Australian Shares Index ETF (ASX: VAS).

So if I had $2,000 ready to invest, would I consider putting it into this ETF? Personally, I think it could be a very sensible option.

VAS ETF offers exposure to many of Australia's biggest shares

One of the biggest advantages of the VAS ETF is diversification.

The ETF tracks the S&P/ASX 300 Index, which means it provides exposure to roughly 300 companies listed on the Australian share market. This includes many of the country's largest and most established businesses.

Major holdings include companies such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), CSL Ltd (ASX: CSL), and National Australia Bank Ltd (ASX: NAB).

At the same time, the fund also includes smaller companies that many investors might not otherwise own individually. Businesses like TechnologyOne Ltd (ASX: TNE), Lovisa Holdings Ltd (ASX: LOV), and Netwealth Group Ltd (ASX: NWL) are also part of the index.

That mix gives investors exposure to both the stability of large blue chips and the growth potential of smaller companies.

A simple way to back the Australian economy

Another reason I like broad-market ETFs such as the Vanguard Australian Shares Index ETF is that they effectively allow investors to back the long-term growth of the Australian economy.

Over time, companies rise and fall, industries evolve, and new businesses emerge. Because the VAS ETF tracks the index, it naturally adjusts as the market changes. In fact, we are currently in the process of the latest quarterly rebalance.

If one company declines in importance and another grows, the index gradually reflects that shift.

For investors who prefer not to constantly research and select individual ASX shares, this can be an easy way to stay invested in the broader market.

A slightly better entry point after the pullback

Like many parts of the market, the VAS ETF has experienced some volatility recently.

After hitting a record high not long ago, the fund has pulled back roughly 6%.

While that is not a huge decline, it does make the entry point a little more attractive than it was just a few weeks ago.

Long-term investing still matters most

Of course, buying an ETF doesn't guarantee positive returns in the short term.

The share market will continue to experience periods of volatility, and prices can move both higher and lower in the months ahead.

But historically, long-term investors who remain invested in diversified share portfolios have benefited from the growth of corporate earnings and dividends over time.

The Vanguard Australian Shares Index ETF provides a simple way to capture that long-term trend.

Foolish takeaway

If I had $2,000 to invest and wanted broad exposure to Australian shares, the Vanguard Australian Shares Index ETF could be a very reasonable option.

It provides diversification across hundreds of companies, exposure to both large and smaller businesses, and a simple way to participate in the long-term growth of the Australian share market.

The post Should I invest $2,000 in the VAS ETF? appeared first on The Motley Fool Australia.

Lovisa sells affordable jewellery through its global store network that's across every continent. It also has a start-up business called Jewells in the UK.

A jewellery retailer may not instantly strike investors as a good opportunity, but it has already demonstrated a very strong capability to deliver pleasing and growing dividends.

Let's take a look at what makes it an appealing buy today after its fall.

Strong passive income credentials

The business has already delivered massive dividend payout growth over the past decade. The total of its last two dividends has increased by close to 10x compared to the annual payment in 2016.

I'm not expecting the dividend to grow by another ten times in the upcoming decade, but I do think that its store growth and total sales growth will help send the Lovisa share price and dividend substantially higher in the coming years.

Broker UBS projects that the business could pay an annual dividend per share of 79 cents in FY26. That would be a dividend yield of 3.8%, excluding the effect of any franking credits.

UBS then suggests that the ASX dividend stock could then pay an annual dividend per share in FY27 of 93 cents – a rise of 17.7% year-over-year. That translates into a possible dividend yield of 4%, excluding any franking credits.

The broker thinks the Lovisa payout could continue climbing each year to FY30, reaching a potential payment per share of $1.33. This would be an increase of 68% compared to the estimated FY26 payout. The forecast payout would translate into a dividend yield of 6.4% by FY30, excluding franking credits.

In my mind, there are few ASX dividend shares capable of providing a dividend yield of around 4% (or more) in FY26 and delivering a strong rate of growth over the next few years.

Why this is a good time to invest in the ASX dividend stock

I doubt there will be many times that the share price will decline 50%. It currently looks like an especially attractive buying opportunity for long-term returns.

The FY26 half-year result delivered compelling growth, with 85 new stores opened to end the period with 1,095 locations. Underlying revenue grew 22.7% to $498.1 million and underlying net profit increased 21.5% to $69.6 million.

It's difficult to say how much the current events in the Middle East will affect its financials in FY26 and FY27, but I'm confident about the long-term.

Based on the current profit predictions by UBS, it's valued at just 21x FY27's estimated earnings. With its global growth plans and the potential for its margins to steadily climb higher thanks to operating leverage, I think the long-term still looks very bright.

The post 1 ASX dividend stock down 52% I'd buy right now appeared first on The Motley Fool Australia.

Whether that money is being used to start a new position, add to an existing holding, or simply take advantage of opportunities in the market, the key question becomes the same: Which companies are worth backing right now?

If I had $10,000 available to invest today, these are five ASX 200 shares I would be happy buying.

HUB24 Ltd (ASX: HUB)

One company that continues to impress me is HUB24.

The wealth platform provider has become one of the fastest-growing financial technology businesses on the Australian share market. Its platform continues to attract strong inflows as financial advisers move client assets onto modern technology platforms.

That shift away from legacy systems toward newer digital platforms still appears to have a long runway. HUB24 has consistently been gaining market share and growing funds under administration, which, in turn, supports rising revenue and earnings.

What I like most about its platform model is the operating leverage. As funds grow on the platform, the company can generate increasing revenue without needing to grow costs at the same pace.

Sigma Healthcare Ltd (ASX: SIG)

Sigma has become a much stronger business following its merger with Chemist Warehouse.

The combined group now brings together one of Australia's largest pharmaceutical distribution networks with one of the most recognisable pharmacy retail brands in the country.

That combination gives Sigma a powerful position across the healthcare supply chain. It also provides access to the scale and customer reach of the Chemist Warehouse brand, which has expanded rapidly across Australia and internationally.

Healthcare demand tends to be resilient, and with a much larger and more integrated business model in place, Sigma looks positioned to benefit from that demand over the long term.

Lovisa Holdings Ltd (ASX: LOV)

In my view, Lovisa is one of the most impressive retail growth stories on the ASX.

The jewellery retailer has built a simple but highly scalable business model focused on affordable fashion jewellery and rapid product turnover. That model has translated well internationally, allowing Lovisa to expand aggressively across new markets.

What stands out is the pace of store openings. The company continues to add new locations across Europe, North America, and Asia, steadily expanding its global footprint.

With thousands of potential store locations still available worldwide, Lovisa appears to have a very long growth runway ahead. This could be boosted further by its new brand, Jewells. However, it is still early days for its rollout.

BHP Group Ltd (ASX: BHP)

BHP remains one of the most important ASX 200 shares on the Australian market.

The mining giant owns some of the world's largest and longest-life resources assets, spanning iron ore, copper, coal, and potash.

What particularly attracts me today is BHP's growing exposure to copper. Copper is expected to play a critical role in electrification, renewable energy, and the global energy transition, which could drive strong demand in the years ahead.

While commodity prices fluctuate, companies with large, low-cost resources often become long-term winners.

Woolworths Group Ltd (ASX: WOW)

Every portfolio benefits from having some defensive businesses.

For me, Woolworths is one of the clearest examples of that on the ASX. The company operates Australia's largest supermarket chain and generates billions of dollars in recurring grocery sales each year.

Supermarkets tend to perform relatively consistently because people still need to buy food regardless of economic conditions.

Woolworths also continues investing in its supply chain, digital capabilities, and retail network. Those investments should help it maintain its leadership position in the years ahead.

Foolish Takeaway

When I'm looking for ASX 200 shares to buy, I'm usually searching for businesses with strong competitive positions and long-term growth opportunities.

HUB24, Sigma, Lovisa, BHP, and Woolworths each have qualities that I believe make them compelling long-term investments.

The post 5 incredible ASX 200 shares I'd buy with $10,000 appeared first on The Motley Fool Australia.

What has happened to the ASX 200 stock's share price?

There hasn't been any price-sensitive news out of Lovisa recently to explain the share price tumble today. 

But the company is facing an overall dip in confidence following its half-year FY26 announcement last month. The announcement raised concerns about the company's earnings and raised a red flag about its sales momentum.

Lovisa posted a revenue increase of 23.3% to $500.7 million, with comparable store sales up 2.2%. Its underlying net profit came in at $69.6 million, up 21.5%, while the net profit including one-offs was $58.4 million. Lovisa also raised its interim dividend to 53 cents, 50% franked, up from 50 cents.

The ASX 200 company's profit result missed analysts' expectations by a wide margin. Markets estimated that Lovisa would report a net profit of $68.1 million for the six-month period.

The share price has now crashed over 33% since the announcement.

Despite the share price drop this year, Lovisa shares have performed very strongly over the past five years. It's possible that after a 12% hike between the beginning of January and mid-February this year, investors have decided it's time to take their profits off the table.

Can the share price recover?

Analysts seem to think so.

After the heavy pullback, some brokers think that the company's expansion plans and robust revenue growth imply we could see much more from the jewellery retailer this year.

Lovisa is steadily increasing its global footprint, pushing further into North American and European markets. At the same time, it has managed to maintain strong momentum in established markets. Lovia's store rollouts are central to its growth strategy, and management has now demonstrated that it is able to execute growth across various regions. 

While its latest results missed market expectations, it's worth noting that the company has still managed to lift revenue in the first half of FY26, despite broad retail-sector weakness. 

TradingView data shows that analyst sentiment about the outlook for Lovisa shares is mixed, but they all appear to agree that the current trading price is below fair value.

Out of 16 analysts, seven have a buy or strong buy rating on the stock, and another eight have a hold rating. The average target price is $30.85 a piece, which implies a 50.22% upside at the time of writing.

But others are more bullish. The team at Morgans has a buy rating and a $36.80 target price on the stock, implying a 79.21% upside at the time of writing.

The broker said its result was ahead of its expectations, driven by store network growth and strong gross margins. The team see the pullback in share price as a buying opportunity at 23x FY27's price-to-earnings (P/E) ratio.

The post Why is this ASX 200 stock crashing 9% today? appeared first on The Motley Fool Australia.

But, given how share prices have drifted lower this year, I'm seeing a great opportunity for investors to grab ASX shares while dividend yields are higher.

Don't forget, we saw a few years ago how some businesses were able to accelerate their revenue growth amid the inflationary period – they were not just helpless bystanders in the situation.

Why do interest rates matter for ASX shares?

Interest rates play an important role in how much investors are willing to pay for an asset. It acts like gravity – when interest rates go lower, asset prices can jump higher. But, the opposite is typically true when interest rates go up – it's a significant headwind for asset valuations.

But, share prices can still go up in a rising rate environment if the operating profit/net profit of the business or asset increases. The multiple of earnings that investors are willing to pay is just one part of the equation.

Warren Buffett, the legendary American investor from Omaha, once explained why interest rates are so important for valuations. Buffett said:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

Investor expectations of rate rises this year has led to lower share prices for some businesses, along with the oil price volatility.

How does it affect the passive income?

When the share price of an ASX dividend share falls, it can lead to a double whammy of a better valuation and a better dividend yield.

A dividend yield is determined by the size of the payout and the valuation of the business. When share prices go lower, the dividend yield increases.

For example, if a business had a dividend yield of 5% and the share price falls 10%, the dividend yield becomes 5.5%. If it fell 20%, the dividend yield would be 6%.

I like investing at times like these, as it really boosts the potential dividend yield.

Is it a once-in-a-decade opportunity to buy passive income shares? The 2020s have already seen COVID-19, the inflation and tariff related sell-offs, so the declines have been more than once-in-a-decade.

But, this is certainly a rare opportunity to buy ASX dividend shares with a good dividend yield.

What I'd invest in

There are a wide range of ASX dividend shares that are trading at attractive prices with a good dividend yield.

I'm thinking names like Charter Hall Long WALE REIT (ASX: CLW), Centuria Industrial REIT (ASX: CIP), Medibank Private Ltd (ASX: MPL), Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), Coles Group Ltd (ASX: COL), Australian Foundation Investment Co Ltd (ASX: AFI), WCM Global Growth Ltd (ASX: WQG), JB Hi-Fi Ltd (ASX: JBH), Universal Store Holdings Ltd (ASX: UNI), Nick Scali Ltd (ASX: NCK) and Lovisa Holdings Ltd (ASX: LOV).

I'm optimistic that the above names can provide investors with a diversified and growing source of passive income over time.

The post A once-in-a-decade chance to earn a supersized passive income from ASX shares? appeared first on The Motley Fool Australia.

I'm not about to suggest that Aussies go out there and try to find a 15% dividend yield.

But, if we invest right, investors could end up generating a 15% yield on their initial investment. It will take some patience, though.

It's important to remember that some large dividend yields may not stand the test of time. A dividend cut may be on the cards for businesses that seem to have huge yields because investors have pushed the share price lower, betting that earnings and the payout are going to drop in the near future.

 I think there are two ways where we can unlock a large dividend yield of 15% (or more). Let's look at how.

Big starting dividend yield

I wouldn't expect any business to offer a sustainable starting dividend yield of 15%. But, there are some with yields of between 9% to 11% where I expect the business can maintain and slowly grow its payout in the coming years.

While it might take a while to reach 15%, I think this sort of business could deliver a big dividend yield at the start and become even larger over time.

There are some names that come to mind for large payouts such as WAM Microcap Ltd (ASX: WMI), Hearts and Minds Investments Ltd (ASX: HM1) and Shaver Shop Group Ltd (ASX: SSG).

With those sorts of dividend yields, if someone invested $10,000 then they could unlock $1,000 of annual income straight away.

Dividend growth

While huge yields may appeal to some investors, it could be a better call to look at businesses that are growing their payout at a faster pace. That could lead to stronger total shareholder returns (TSR) and eventually the yield could surpass what a higher-yielding business offers.

For example, if a 10% yielding business grows its payout by 2% per year, it becomes 15% yield in around 20 years. A business with a 5% dividend yield that's growing the payout at 10% per year becomes a 15% dividend yield on the initial investment after 12 years.

Of course, we can't know for sure what businesses are going to do with their payouts over the next decade or more.

What sort of businesses have a solid starting payout today and could deliver strong dividend growth over the longer-term?

I'd look at apparel retailer Universal Store Holdings Ltd (ASX: UNI), jewellery retailer Lovisa Holdings Ltd (ASX: LOV), investments business Pinnacle Investment Management Group Ltd (ASX: PNI) and ethical fund manager Australian Ethical Investment Ltd (ASX: AEF).

Either way, I think there are some very exciting investments out there for investors looking for a lot of passive income.

The post How to invest $10,000 to aim for a 15% dividend yield appeared first on The Motley Fool Australia.

To narrow things down, let's take a look at a few that Morgans has been running the rule over recently.

Does it rate them buys, holds, or sells? Let's find out:

Guzman Y Gomez Ltd (ASX: GYG)

Morgans remains positive on this quick service restaurant operator despite its poor performance in the US market.

It continues to believe that the burrito seller can make a success of its global expansion. As a result, it has a buy rating and $24.00 price target on its shares. It said:

GYG came to market with a strategy for global expansion that was breathtakingly ambitious. The first big opportunity was the US. Unfortunately, the pace of network expansion in the US so far has been pedestrian and the restaurants it has opened have lost more money than expected. It was a further step-up in US losses that disappointed investors most today and caused group EBITDA to fall 7% short of our forecast.

We do believe global growth will click into gear at some point to complement a very healthy Australian business. We maintain a BUY rating, though our revised 12-month target sees the share price recovering to $24.00 rather than the $32.30 we had before. GYG has a bit to prove, but we can be certain it is going to give it all it's got to ultimately realise its growth ambitions.

Lovisa Holdings Ltd (ASX: LOV)

Another expanding ASX share that Morgans has been looking at is fashion jewellery retailer Lovisa.

It was pleased with its performance in the first half of FY 2026. As a result, it has retained its buy rating on its shares with a $36.80 price target. It commented:

LOV reported a strong underlying 1H26 result with EBIT up 20.4%, ~6% ahead of our expectations, driven by store network growth and strong gross margins. During the period, the pace of store rollout continued with a net of 64 new stores in the period, bringing the total count to 1,095. We have increased our EBIT by 3%/1% respectively in FY26/27, driven by higher sales and gross margin offset by higher costs and D&A. We see the pull back in share price as a buying opportunity at ~23x FY27 PE. Our valuation lowers to $36.80 (from $40) and we retain our BUY recommendation.

Newmont Corporation (ASX: NEM)

This gold miner has caught the eye of Morgans. However, due to its current valuation, it has only put an accumulate rating and $187.00 price target on Newmont's shares. It explains:

4Q25 earnings result was a material beat. Key positives: earnings well ahead of expectations and 2026 guidance in-line with expectations. Key negatives: no increase in per share dividend, elevated spend over next few years, limited clarity on when NEM intends to reach its 6Mozpa target. Move to an ACCUMULATE rating with a A$187ps Target Price.

The post Buy, hold, sell: Guzman Y Gomez, Lovisa, and Newmont shares appeared first on The Motley Fool Australia.