That sort of decline can sound the alarm bells. But when I step back, I still see two companies with strong growth engines, large addressable markets, and business models that still appear intact.

So, if I had $2,500 to invest today, I would be comfortable splitting it between these two.

Life360 shares

Life360 is easy to underestimate because of what it looks like on the surface. It is often seen as just a location-sharing app.

But the reality is much broader. The company now has a global network of nearly 100 million monthly active users and operates across more than 180 countries, with strong engagement and retention across its user base.

What I like is how this platform is evolving. Life360 is building a full ecosystem around family safety and coordination. That includes subscription services, hardware like Tile devices, and an expanding advertising and data platform.

This creates multiple ways to monetise the same user base over time.

Importantly, penetration is still relatively low in many markets. The company is still in the growing or scaling phase across much of its global footprint, which suggests there is meaningful runway ahead.

I also think the freemium model is a major advantage. A large free user base feeds into paid subscriptions, advertising, and partnerships. That creates a flywheel effect that can strengthen over time.

When I combine that with strong engagement, network effects, and new monetisation layers, I think the long-term opportunity remains compelling.

The recent share price weakness looks more like a reset in sentiment than a breakdown in the underlying business.

Pro Medicus shares

Pro Medicus sits in a very different space, but the appeal is just as clear to me.

This is a global healthcare imaging software company with a highly specialised product in Visage 7. It has been built over decades and incorporates deep domain expertise that is not easy to replicate.

What I find particularly interesting is the strength of its pipeline and contract momentum.

The company recently secured multiple new deals across major hospital systems, with total contracted volumes now exceeding $1 billion over the next five years.

That gives it strong revenue visibility. At the same time, Pro Medicus continues to expand its footprint across the US and Europe, with high-profile institutions helping to reinforce its position in the market.

Another key point is the scalability of the model. This is a capital-light, software-only business with very high margins and strong operating leverage. As more clients are added and existing ones expand usage, profits can grow faster than revenue.

I also think concerns around AI disruption have been overdone in this case.

Management has been clear that its platform is highly specialised and deeply integrated into hospital workflows, making it difficult to replicate. In fact, AI may end up enhancing productivity rather than replacing the need for its systems.

To me, that reinforces the durability of its competitive position.

Foolish takeaway

Both Life360 and Pro Medicus shares have seen sharp pullbacks despite continuing to deliver strong results.

Life360 is building a global platform with multiple monetisation levers and significant runway still ahead. Pro Medicus continues to execute in a specialised, high-margin niche with strong demand and long-term contracts.

They are very different businesses, but they share one key trait. Both are still growing into large opportunities. That is why I would be comfortable putting $2,500 to work across them today.

The post Why I'd invest $2,500 in Life360 and Pro Medicus shares today appeared first on The Motley Fool Australia.

The healthcare tech stock is down 6% over the past five days, yet still up 19% over the past month. Zoom out further, and it's a different story, as shares have fallen more than 50% over the past six months. Hectic is one word for it.

So what's really going on?

Landing new contracts

Start with the fundamentals. Pro Medicus remains a high-quality business. Its imaging software platform is widely used by hospitals and radiology groups, particularly in the US, and continues to win new contracts. The company benefits from a sticky customer base, high margins, and strong recurring revenue once systems are embedded.

The long-term growth story is still intact. Demand for advanced imaging solutions continues to rise, and Pro Medicus shares are well positioned to capture that trend. It's also expanding within existing customers, which can drive incremental revenue without the need for entirely new deals.

Broad market de-rating

So why the share price volatility? The main culprit is sentiment, not operations.

High-growth healthcare and tech stocks have been hit by a broad market de-rating, and Pro Medicus has been caught in the crossfire. Even after the sell-off, the stock still trades on a price-to-earnings ratio above 60, leaving it sensitive to any shift in investor expectations.

That dynamic has flowed through to broker views. Morgans recently retained its buy rating but trimmed its price target to $210, which suggests a 50% upside at the time of writing. The broker adjusted its model to reflect more conservative growth assumptions, including slower implementation revenue and updated currency settings. Even so, it maintained that the underlying business remains strong and long-term demand is intact.

More broadly, analyst sentiment remains favourable. According to TradingView data, 11 out of 15 brokers rate the stock as a buy or strong buy. The average 12-month price target sits at $194.38, implying around 38% upside, while the most bullish forecasts suggest gains of up to 75%.

Valuation risk

Still, risks remain. Valuation is the big one. Even after a sharp pullback, Pro Medicus shares continue to trade at a premium to most ASX stocks. That leaves less margin for error if growth slows or expectations aren't met.

Execution is also key. Investors are closely watching the pace of contract wins and how quickly those deals translate into revenue. Any delays or weaker-than-expected growth could weigh on sentiment further.

Foolish Takeaway

Pro Medicus remains a high-quality growth company, but it's also a stock driven heavily by expectations. When sentiment is strong, it can rally quickly. When it shifts, the downside can be just as sharp.

For now, the business looks solid. The price of Pro Medicus shares, however, may continue to be anything but.

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

The healthcare imaging software stock is down 1.15% to $140.59 in afternoon trade. That leaves it roughly 36% lower in 2026 so far.

That is a significant shift for a stock that has historically traded at a premium. It also raises questions about how the market is now pricing the business.

With attention now turning to whether the sell-off has gone too far, the key question is what happens from here.

A high-quality business, but priced for growth

Pro Medicus operates in a niche corner of healthcare technology, supplying imaging software to hospitals and diagnostic providers.

Its Visage platform allows clinicians to process and interpret medical images quickly, which has helped it build a strong position in large hospital networks, particularly in the United States.

The business model is built around long-term contracts, high margins, and deep integration into hospital systems. Once installed, switching costs are high, which supports recurring revenue and strong visibility over future earnings.

That structure has underpinned years of consistent growth. Its interim results showed revenue and earnings continuing to rise, supported by a growing base of contracted work.

More recently, contract momentum has remained strong. Pro Medicus has secured roughly $100 million in wins and renewals since February, often at higher pricing, with cardiology-related upsell starting to gain traction.

Why the share price has pulled back

The weakness in the share price has been driven more by sentiment than operations.

High-growth healthcare and tech stocks have faced a broad de-rating, and Pro Medicus has not been immune. With a price-to-earnings (P/E) ratio still sitting above 60, the stock remains sensitive to changes in market expectations.

That has been reflected in broker updates.

Morgans recently retained its 'buy' rating but reduced its price target to $210. The broker noted it has updated its model to reflect more achievable growth assumptions, staging implementation revenue more conservatively and marking foreign exchange to spot.

Even with those changes, it said the business itself remains strong, and long-term demand is still there.

Bell Potter has taken a similar view. It maintained a positive stance while trimming its target price to $226, still implying material upside from current levels.

What investors are watching now

At current levels, the focus is on delivery.

Pro Medicus continues to win new contracts and expand within existing customers, which is central to its growth outlook. The pace of those wins, and how quickly they convert into revenue, will be closely watched.

At the same time, valuation remains a key factor. Even after the recent fall, the stock still trades at a premium to most of the ASX.

That leaves less room for disappointment if growth slows.

Foolish takeaway

Pro Medicus remains a high-quality business with strong margins and recurring revenue.

The share price fall appears tied more to valuation than any clear change in the business.

And broker support is still there, even with lower price targets.

The recent pullback could be an opportunity for long-term investors if the company continues to grow as expected.

The post Are Pro Medicus shares a buy right now? appeared first on The Motley Fool Australia.

Each sector has a benchmark index that tracks the performance of ASX-listed companies in that sector.

Healthcare and tech shares in focus

Recently, the two worst-performing sectors have been ASX healthcare and technology.

Year to date, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is down 16%. 

Meanwhile, the S&P/ASX 200 Health Care Index (ASX: XHJ) is down 17%. 

This is relevant for investors to monitor because when sectors are heavily sold off, it creates buying opportunities. 

Quality, blue-chip stocks can be oversold and scooped up as value plays by savvy investors. 

However, in the last month, there has been a sharp difference between these two sectors. 

Many technology shares have begun to recover, experiencing sharp gains since the end of March. 

In fact, since March 30, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has rocketed 19%.

Healthcare shares, on the other hand, have remained relatively flat.

Why are healthcare shares still flat?

The Information Technology Index experienced an extraordinary 48% sell-off between August 29 and March 30, driven by investor fears about high valuations and the potential for AI tools to wipe out SaaS companies.

Sentiment has now shifted, driven by a combination of value investing and a belief that AI will enhance some of these platforms rather than destroy them. 

Meanwhile, unlike tech, healthcare isn't getting the same sentiment-driven bounce because its headwinds are more structural.

Upheaval at the US FDA under the Trump administration has created regulatory uncertainty for many Australian biotechs with US ambitions.

Additionally, healthcare companies tend to generate most of their profits well into the future. 

This means rising interest rates hit them harder than most. 

Higher rates make those future earnings worth less in today's dollars, dragging on share prices even when the underlying businesses are performing fine.

Where is the opportunity for healthcare shares?

For investors focused on long-term returns, many healthcare companies are priced at relative values right now due to these headwinds. 

Some of the ASX healthcare stocks that have fallen the furthest include: 

• Australia's largest healthcare company, CSL Ltd (ASX: CSL), is down 42% in the last year
• Sleep technology company ResMed Inc (ASX: RMD) shares are down almost 13% year to date
• Medical imaging technology company Pro Medicus Ltd (ASX: PME) shares are down 36% year to date
• Cochlear Ltd (ASX: COH) is a cochlear implant device manufacturer. Its share price has fallen 35% year to date  

Foolish Takeaway 

The headwinds impacting healthcare stocks are unlikely to subside in the short term. 

However, many of these companies are structurally sound and are suffering from broader factors rather than structural issues. 

This leaves plenty of room for growth in the long term. 

The post Are ASX healthcare shares the next to rally? appeared first on The Motley Fool Australia.

To narrow things down, let's take a look at what Morgans is saying about three popular ASX 200 shares.

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

Collins Foods Ltd (ASX: CKF)

Morgans is feeling positive about this KFC-focused quick service restaurant operator ahead of its upcoming results.

While it has trimmed its estimates to reflect a number of items, this is partially offset by a stronger than expected performance in the Australian market.

As a result, it has retained its buy rating with a slightly reduced price target of $12.50. It said:

We revise our CKF forecasts ahead of the FY26 result in June, trimming underlying NPAT to reflect deferred store openings, reset German acquired store economics, and a lower EU SSS assumption to better capture the Netherlands-skewed mix for FY26, partially offset by a marginal AU SSS upgrade on sustained KFC Australia momentum. We maintain our BUY recommendation and reduce our price target to $12.50 (from $12.70).

Netwealth Group Ltd (ASX: NWL)

This investment platform provider delivered a third-quarter update that was slightly ahead of expectations.

And with the new quarter starting strongly for financial markets, Morgans appears to believe it could build on this.

This has seen the broker put an accumulate rating and $29.00 price target on Netwealth's shares. It commented:

NWL's 3Q26 net-flows of $3.96bn came in modestly ahead of expectations, however market volatility during the period eroded this solid performance to see 3Q26 FUA ending the quarter flat QoQ at A$125.8bn, (vs. Consensus A$129.8bn). Despite ongoing volatility and uncertainty tied to a US/Middle East conflict and a potential resolution, market momentum has recovered from peak pessimism in the March Quarter, with the ASX All Ordinaries +5.6% month-to-date in April'26, which will have seen FUA growth momentum improve post quarter end.

Looking through this near-term volatility NWL remains on track deliver solid growth FY26F and well placed to capitalised on the long runway of opportunity ahead. We retain our ACCUMULATE rating, with a Price target of $29.00/sh.

Pro Medicus Ltd (ASX: PME)

Finally, after adjusting its model for Pro Medicus to reflect more achievable growth estimates, the broker continues to see a lot of value in its shares.

The broker has retained its buy rating on Pro Medicus shares with a reduced price target of $210.00. It commented:

In this note, we deploy a new PME model where we have deliberately set a lower bar. Our remodelled estimates prioritise achievability over optimism, staging implementation revenue conservatively and mark FX to spot. We see this as the right framework for a stock where sentiment has been fragile.

On the business operations front, the story remains untarnished. Contract newsflow since February has been exceptional: ~$100m in wins and renewals, all at higher pricing, with cardiology upsell gaining traction. The demand story is not in question. We re-emphasise our positive long-term conviction on the name although lower our valuation to reflect current but potentially fleeting headwinds. Our target price is reduced to A$210 p/s and we retain our Buy recommendation.

The post Buy, hold, sell: Collins Foods, Netwealth, and Pro Medicus shares appeared first on The Motley Fool Australia.

Right now, that shift is starting to show up in parts of the ASX tech sector.

After a sharp sell-off through late 2025 and early 2026, several high-quality names have fallen well below previous highs. In some cases, the underlying business has kept improving while the share price moved the other way.

That gap is what stands out.

If I were looking for positions with strong re-rating potential from current levels, these are the three ASX stocks I would focus on.

WiseTech Global Ltd (ASX: WTC)

WiseTech is a clear example of sentiment disconnecting from business performance.

The company continues to expand its CargoWise platform globally, with revenue lifting strongly following the e2open acquisition. In its latest result, revenue rose 76% to $672 million, while EBITDA increased 31%.

At the same time, the share price has been under heavy pressure. The stock is still well below its 2025 highs after falling rapidly over the past year.

Some of that reflects margin compression tied to acquisitions and governance concerns. But those are not structural issues with the core platform.

CargoWise remains deeply embedded across global logistics networks. Once in place, it is difficult to replace, which supports recurring revenue and pricing power.

If sentiment stabilises, this is the type of stock that can move quickly.

Pro Medicus Ltd (ASX: PME)

Pro Medicus sits at the premium end of the ASX tech space, but the business model continues to justify that position.

The company delivers medical imaging software to major hospital networks, mainly in the United States. Its contracts are long-dated, high-margin, and often include minimum usage volumes.

That creates strong revenue visibility.

Recent results showed revenue up 28.4% and EBIT up 29.7%, with more than $1 billion in forward contracted revenue.

The key point here is consistency. Growth has remained strong even as the share price pulled back over the past year.

It is a high-quality operator that has been repriced with the sector.

Xero Ltd (ASX: XRO)

Xero offers a different angle, but the same setup.

The company continues to grow its global subscriber base, with users reaching 4.59 million in the latest half. Revenue increased 20% to $1.19 billion, with improving EBITDA margins.

At the same time, the share price has fallen heavily alongside the broader tech sell-off.

There are still execution risks, particularly around US expansion and competition. But the core model remains strong.

Xero generates recurring subscription revenue and continues to lift pricing through product improvements.

If growth holds and sentiment shifts, there is room for the multiple to expand again.

Foolish takeaway

All three of these companies have seen large drawdowns despite continuing to grow.

This is not about finding unknown ASX small-caps. These are established businesses that have already proven their models at scale.

The risk is that sentiment stays weak or growth slows.

But if the market continues rotating back into tech, these are the types of companies that are likely move the most.

Personally, I see this more as a sentiment reset than a change in fundamentals. That is why I would be looking here first.

The post Want to double your money in 2026? This is what I'd buy appeared first on The Motley Fool Australia.

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

Collins Foods Ltd (ASX: CKF)

According to a note out of Morgans, its analysts have retained their buy rating on this KFC-focused quick service restaurant operator's shares with a slightly reduced price target of $12.50. While the broker has trimmed its net profit forecast to reflect deferred store openings, reset German acquired store economics, and lower European same store sales assumptions, it remains very positive. This is partly due to the strong performance of the KFC Australia business and its attractive valuation. Morgans sees potential upside of over 40% for investors from current levels. The Collins Foods share price is trading at $8.56 on Monday.

NextDC Ltd (ASX: NXT)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating on this data centre operator's shares with a trimmed price target of $19.00. The broker believes the market is underappreciating the structural growth in areas like cloud computing, GPU demand, and artificial intelligence (AI). It believes this will drive significant growth for data centre capacity, which bodes well for NextDC. In fact, it estimates that the data centre market could grow as much as 27% per annum through to 2030, under its bull case scenario. In light of this, the broker believes NextDC shares could be worth buying at current levels. The NextDC share price is fetching $14.12 at the time of writing.

Pro Medicus Ltd (ASX: PME)

Another note out of Morgans reveals that its analysts have retained their buy rating on this health imaging technology company's shares with a reduced price target of $210.00. Morgans has been fine-tuning its financial model for Pro Medicus, which includes deliberately setting a lower bar. It notes that its remodelled estimates prioritise achievability over optimism, stage implementation revenue conservatively, and mark foreign exchange to spot. Morgans believes this is the right framework for a stock where sentiment has been fragile. That said, the broker believes Pro Medicus' story remains untarnished, highlighting that contract news flow since February has been exceptional. This includes ~$100 million in wins and renewals, all at higher pricing, with cardiology upsell gaining traction. The Pro Medicus share price is trading at $145.57 on Monday afternoon.

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

Last week, tech shares rallied in what investors will be hoping is a long term rebound. 

Despite the rally, the S&P/ASX 200 Information Technology Index (ASX:XIJ) remains down 17% year to date.

Meanwhile, the S&P/ASX 200 Health Care Index (ASX: XHJ) is down more than 16%. 

For comparison, the S&P/ASX 200 Index (ASX: XJO) is up just over 2%. 

Looking at these sectors, there is a significant opportunity for investors to buy low on quality companies. 

Let's look at three examples that could bring strong returns if ASX 200 shares return to broker estimates in the next 12 months. 

Pro Medicus Ltd (ASX: PME)

Pro Medicus is one of the largest ASX healthcare stocks by market cap. 

It has fallen significantly over the last year, including 33% year to date. 

However, broker estimates now indicate it is heavily undervalued.

In a note out of Morgans today, the broker updated its price target to $210 per share for this ASX 200 stock. 

From today's opening price of approximately $146.74, this indicates a potential upside of more than 43%. 

If Pro Medicus shares were to reach that price target in the next 12 months, a $10,000 investment could potentially grow to $14,310. 

CSL Ltd (ASX: CSL)

CSL is another ASX 200 healthcare stock that has been struggling in the last 12 months. 

In 2026 alone, this blue-chip healthcare stock has fallen nearly 20%. 

It has opened trading today at roughly $138 per share. 

However, broker estimates place its fair value at roughly $201.41 per share. 

That's a 46% upside potential. 

If a $10,000 investment reached that target in the next 12 months, investors would be enjoying a $4,600, for a total value of $14,600. 

The Motley Fool's Grace Alvino also investigated the upside potential of CSL shares should they return to previous highs. 

Back in 2020, CSL shares peaked at $342.75 per share. 

Her estimates show that a $10,000 investment could more than double should they ever reach that level again. 

WiseTech Global Ltd (ASX: WTC)

WiseTech shares have been one of the hardest hit technology shares this year. 

However they have enjoyed a rebound over the last week. 

The company is a provider of logistics software that aims to improve the world's supply chains, however has suffered due to AI disruption fears. 

Due to this negative sentiment, WiseTech shares are down 33% year to date. 

If these tech shares can rally to consensus targets of $78.30, a $10,000 investment would reach just over $17,000 in the next 12 months. 

The post How much could a $10,000 investment in these undervalued ASX 200 shares be worth in a year? appeared first on The Motley Fool Australia.

Both ASX 200 companies have fallen significantly in 2026. 

In a note out of Morgans, the broker lowered its price target for both companies. 

Despite the target price reduction, the broker still sees more than 40% upside for both stocks.

Collins Foods Ltd (ASX: CKF)

Collins Foods is engaged in the operation, management, and administration of chain restaurants in Australia and Europe.

The company's recognisable brand names are KFC and Taco Bell. The majority of the company's revenue comes from KFC restaurants in Australia.

Year to date, its share price is down more than 17%.

In a note out of Morgans, the broker revised its forecasts ahead of the FY26 result in June. 

We revise our CKF forecasts ahead of the FY26 result in June, trimming underlying NPAT to reflect deferred store openings, reset German acquired store economics, and a lower EU SSS assumption to better capture the Netherlands-skewed mix for FY26, partially offset by a marginal AU SSS upgrade on sustained KFC Australia momentum.

The broker has retained its buy recommendation. 

However it has now reduced its price target to $12.50 (from $12.70).

From today's opening price of roughly $8.58, this price target still indicates an upside potential of 45%. 

Pro Medicus Ltd (ASX: PME)

Pro Medicus provides of medical imaging technology. 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.

Pro Medicus shares have been amongst many healthcare stocks that have struggled in 2026. 

Its share price is down 33% year to date. 

In a note out of Morgans, the broker said it has deployed a new model and deliberately set a lower bar. 

Our remodelled estimates prioritise achievability over optimism, staging implementation revenue conservatively and mark FX to spot. We see this as the right framework for a stock where sentiment has been fragile. On the business operations front, the story remains untarnished.

Contract newsflow since February has been exceptional: ~$100m in wins and renewals, all at higher pricing, with cardiology upsell gaining traction. The demand story is not in question. We re-emphasise our positive long-term conviction on the name although lower our valuation to reflect current but potentially fleeting headwinds.

The broker has retained its buy recommendation on PME shares and reduced its price target to $210. 

From today's opening price of around $148.74, this new price target indicates an upside potential of 41%. 

The post Why did Morgans just lower its outlook on Collins Food and Pro Medicus shares? appeared first on The Motley Fool Australia.

Unfortunately, the team at Bell Potter thinks that this leaves the ASX 200 tech stock fairly valued now and has downgraded it.

What is the broker saying?

The broker highlights that TechnologyOne's shares now trade at a significant premium to WiseTech Global Ltd (ASX: WTC), Pro Medicus Ltd (ASX: PME), and Life360 Inc. (ASX: 360). It explains:

We downgrade our recommendation on Technology One from BUY to HOLD given the rally in the share price to above our target price. We believe the stock now looks fairly valued on FY26 and FY27 EV/EBITDA multiples of c.32x and 28x which [we] note are the highest in our coverage of S&P/ASX 100 technology stocks and well above that of WiseTech Global on c.22x and 18x.

We acknowledge that Technology One is probably the best placed amongst our coverage of technology stocks to withstand AI disruption given its large proprietary data assets and mostly government and higher education customer base. The company is also embedding agentic AI across its product suite which will both improve the customer experience and further strengthen its position against disruption. But the recent outperformance of the stock relative to others in the sector like WiseTech, Pro Medicus and Life360 now makes it look relatively expensive and we see better value elsewhere.

Downgraded to hold

According to the note, the broker has downgraded the ASX 200 tech stock to a hold rating with an improved price target of $31.00 (from $29.00).

This is largely in line with the current TechnologyOne share price of $30.83.

Commenting on the company, Bell Potter said:

With the recent rebound in technology stocks we have increased the multiples we apply in the PE ratio and EV/EBITDA valuations from 55x and 30x to 60x and 32.5x. and also modestly reduced the WACC we apply in the DCF from 8.4% to 8.3%. The net result is a 7% increase in our target price to $31.00 which is only a modest premium to the share price so is consistent with the downgrade to a HOLD recommendation.

We note there is perhaps a lack of catalysts for the stock with the company already – and unusually – providing full year guidance at the AGM in February (this is usually provided at the H1 result in May). There is also a greater-than-usual earnings skew to H2 this year due to higher investment in H1 so we do not see much if any potential of an upgrade to the guidance at the H1 result.

The post Which ASX 200 tech stock has Bell Potter just downgraded? appeared first on The Motley Fool Australia.

Pro Medicus Ltd (ASX: PME) surged 8% on Thursday, extending its five-day gain to 22%, while Aristocrat Leisure Ltd (ASX: ALL) added another 3%.

Yet despite the recent bounce, both remain firmly in the red for the year. Pro Medicus is still down around 33%, while Aristocrat has slipped 15%.

Hectic? Absolutely. But for long-term investors, the bigger question is simple: has the market created opportunity in two high-quality operators?

Let's break it down.

Pro Medicus: high-margin healthcare tech with global reach

This ASX healthcare stock sits in a rare category on the ASX — a pure-play, high-margin healthcare technology company with global scale.

Its flagship Visage platform is used by major hospitals and medical institutions to rapidly process and interpret medical imaging. That might sound niche, but it's exactly this focus that has created its competitive advantage.

High switching costs, long contracts, and deep integration into hospital systems make its revenue base sticky and highly scalable. Once embedded, customers rarely leave.

Despite recent volatility, analysts remain constructive. Bell Potter just retained its buy rating on Pro Medicus, albeit with a slightly reduced price target of $226 (from $240). At current levels around $148.88, that implies potential upside of roughly 52% over the next 12 months.

Of course, risks remain. Valuation sensitivity is high, and any slowdown in contract wins or hospital spending could quickly weigh on sentiment. But the long-term growth story — driven by digitisation of healthcare — remains firmly intact.

Aristocrat: gaming dominance with global scale

Aristocrat Leisure Ltd is another ASX heavyweight that has found itself under pressure this year.

But beneath the share price volatility, the core business continues to deliver.

Aristocrat generates strong earnings from gaming machines, digital gaming content, and its fast-growing online segment, particularly in the US. That mix gives it exposure to both traditional casino demand and the structural growth of digital entertainment.

Importantly, underlying demand trends in US gaming remain resilient, even as sentiment has cooled.

Macquarie remains bullish on the ASX stock. The broker has maintained its outperform rating and set a $63.00 price target, implying potential upside of around 28% from current levels.

In other words, the market may be underestimating the strength and consistency of Aristocrat's earnings engine.

There are risks, of course. Gaming is cyclical, regulation can shift, and consumer spending can fluctuate. But Aristocrat's scale, content pipeline, and global footprint help cushion those swings.

Foolish Takeaway

Both Pro Medicus and Aristocrat have been hit by volatility this year. But neither ASX stock has lost its competitive edge.

For investors willing to look beyond short-term noise, these two ASX leaders still offer something rare: high-quality businesses trading in less-than-perfect sentiment. And that's often where long-term opportunities begin.

The post 2 high-quality ASX stocks to buy and hold long term appeared first on The Motley Fool Australia.

However, you can't just put it in any old share. The key is focusing on businesses with scalable models, strong tailwinds, and the ability to keep growing earnings over time.

While there will always be volatility along the way, the right companies can reward patient investors.

Here are three ASX growth shares that analysts think could be worth considering.

Pro Medicus Ltd (ASX: PME)

The first ASX growth share that could be a standout pick is Pro Medicus.

It operates in medical imaging software and has built a reputation as one of the highest-quality growth companies on the ASX.

What makes it particularly compelling is its business model. The company wins large, long-term contracts with hospitals and healthcare providers, creating recurring revenue and strong visibility over future earnings.

It also operates with very high margins, which means a large portion of its revenue flows through to profit.

The team at Bell Potter thinks recent share price weakness has created a buying opportunity. Earlier this week, it put a buy rating and $226.00 price target on its shares.

Life360 Inc (ASX: 360)

Another ASX growth share that could be worth considering is Life360.

Life360 has built a global platform focused on family safety and location sharing, with almost 100 million active users.

The company is increasingly monetising its platform through subscriptions, partnerships, advertising, and new services. This is underpinning significant recurring revenue.

And with management confident that 2026 will see further strong user growth, Life360 looks likely to deliver another year of stellar revenue and profit growth.

Bell Potter is also bullish on this one and recently put a buy rating and $35.50 price target on its shares.

WiseTech Global Ltd (ASX: WTC)

A third ASX growth share that could be worth considering is WiseTech Global.

It provides software solutions for the global logistics industry, with its CargoWise platform deeply embedded in customer operations.

This creates strong switching costs and recurring revenue, both of which are attractive traits in a growth company.

The company continues to expand its product offering and global reach, positioning itself at the centre of increasingly complex supply chains.

With global trade becoming more digitised, WiseTech has a long runway for growth.

Last week, the team at Morgan Stanley put an overweight rating and $70.00 price target on its shares.

The post 3 ASX growth shares to buy with $10,000 appeared first on The Motley Fool Australia.

• 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.

That combination gives you the best of both worlds: long-term capital growth and immediate passive income. For an investor thinking a decade ahead, that's the kind of ASX share mix that can help build both wealth and retirement income.

Let's take a closer look.

Pro Medicus Ltd (ASX: PME)

The growth pick is Pro Medicus. The $14 billion ASX share has lost 38% of its value in 2026. Even after its sharp sell-off earlier this year, this remains one of the highest-quality growth businesses on the ASX.

The radiology imaging software specialist recently delivered another strong half, with revenue and profit surging, and it continues to land long-duration US hospital contracts. In just the past two weeks, Pro Medicus has landed two significant US contracts and that's starting to shift sentiment.

Importantly, the February result-driven plunge pushed the stock to a fresh 52-week low near $108, despite record earnings. That disconnect is exactly what makes the ASX healthcare share interesting.

This is a business with world-class margins, no debt, sticky healthcare clients, and a huge US expansion runway. Its Visage imaging platform is deeply embedded into hospital workflows, making switching incredibly difficult.

While the valuation still isn't cheap, quality software leaders rarely are. In light of the recent weakness, most brokers see Pro Medicus as a strong buy, with the maximum average 12-month price target set at $275. That's a potential 100% upside, at current price levels.

For patient investors, this looks like a rare chance to buy a premium ASX growth share well below its highs.

GQG Partners Inc. (ASX: GQG)

The funds management giant continues to stand out as one of the market's most attractive dividend plays, currently offering a double-digit yield above 11% based on recent payouts. Morgans is expecting very generous dividend yields of 11% in FY 2026 and FY 2027.

What I like most is that GQG's dividend isn't just high for the sake of it. The ASX share throws off serious cash, boasts strong profit margins, and still trades on a relatively modest earnings multiple.

If global equity markets remain supportive and funds under management (FUM) continue to grow, investors could enjoy both juicy income and capital upside. On Monday GQG reported FUM of US$162.5 billion as at 31 March 2026. That included net outflows of US$8.6 billion for the quarter, a clear red flag for the market.

Despite the recent setback, Morgans recently upgraded the ASX share to a buy rating (from accumulate) and lifted its price target from $1.89 to $2.03. That implies around 19% upside from the current share price of $1.70 over the next 12 months.

The post One ASX share to double, one yielding 11% — ASX picks for April appeared first on The Motley Fool Australia.

While markets will inevitably have ups and downs, high-quality growth companies can often look through that noise.

Here are five ASX growth shares that could be worth buying and holding for the next five years.

Breville Group Ltd (ASX: BRG)

The first ASX growth share that could be a strong long-term pick is Breville.

Breville has built a premium global brand in kitchen appliances, with a focus on innovation and design. What makes the company particularly compelling is its international expansion.

A large portion of its revenue now comes from overseas markets, giving Breville exposure to a much larger opportunity than the domestic market alone. Combined with its leadership position in the thriving coffee market, this leaves it well-placed for sustainable growth.

Life360 Inc (ASX: 360)

Another ASX growth share to consider is location technology company Life360.

Life360 is transitioning from just a user growth story into a user growth and monetisation story. Its platform has almost 100 million users globally, but the focus is now on converting that scale into sustainable earnings.

Subscription growth, partnerships, and new features are helping drive revenue higher, while improving operating leverage is supporting profitability.

If the company continues executing well, it could evolve into a highly scalable global platform business.

Pro Medicus Ltd (ASX: PME)

A third ASX growth share that stands out is Pro Medicus.

Pro Medicus provides medical imaging software and has built a reputation for winning large, long-term contracts with leading hospitals.

What sets it apart is its high-margin business model and strong competitive positioning. Once its technology is in place, switching costs are high, leading to recurring revenue and strong retention.

ResMed Inc (ASX: RMD)

A fourth ASX growth share that could be worth considering is ResMed.

ResMed operates in the sleep apnoea and respiratory care market, combining medical devices with digital health platforms.

Its business benefits from recurring revenue, as patients continue to purchase masks, software, and accessories over time. There are also strong structural tailwinds, including ageing populations and increasing awareness of sleep health.

With ongoing innovation and a growing global footprint, ResMed appears well placed to deliver sustainable growth long into the future.

WiseTech Global Ltd (ASX: WTC)

A final ASX growth share that could be worth considering is WiseTech Global.

WiseTech is building the software backbone for global logistics through its CargoWise platform. Its solutions are deeply embedded in customer operations, creating strong switching costs and recurring revenue.

The company continues to expand its capabilities and increase its reach across global supply chains.

As trade becomes more complex and digitised, WiseTech's platform could become even more critical, supporting long-term growth.

The post 5 ASX growth shares to buy and hold for 5 years appeared first on The Motley Fool Australia.

Not just companies with strong recent performance, but businesses with durable advantages, long growth runways, and the ability to keep compounding over time.

Here are three ASX shares that fit that description and could be worth a closer look following recent share price weakness.

Cochlear Ltd (ASX: COH)

The first ASX share that stands out is Cochlear. It is a medical device company that operates a highly specialised global ecosystem built around hearing implants.

What makes it a quality business is not just its technology leadership, but the longevity of its customer relationships. Once a patient enters the system, they often remain within it for decades through upgrades, servicing, and support.

This creates a steady and growing revenue base that is less dependent on constant new customer acquisition.

With hearing loss becoming more prevalent globally and access to treatment still expanding, Cochlear has a long runway ahead. For investors focused on quality, that combination of recurring revenue and structural demand is hard to ignore.

Life360 Inc (ASX: 360)

Another ASX share that could appeal to quality-focused investors is Life360.

This family safety technology company has been growing at a rapid rate for many years and has around 100 million monthly active users (MAUs) now.

From these users, the company is generating significant subscription revenues and a growing stream of advertising income.

And with management confident that its strong growth can continue in 2026, the future is looking bright for this one. This is especially the case given its plans to expand its offering into pet tracking and other areas.

The company is essentially building a product that integrates into everyday life. And that kind of engagement can be a powerful foundation for long-term value creation.

Pro Medicus Ltd (ASX: PME)

A third ASX share that fits firmly in the quality category is Pro Medicus.

Pro Medicus operates in medical imaging software, but what sets it apart is its business model.

The company focuses on winning large, long-term contracts with leading hospitals and healthcare providers. Once embedded, its solutions become critical to operations, creating high switching costs and strong customer retention.

What is particularly compelling is its ability to scale without a corresponding increase in costs. This has led to exceptional margins and strong cash generation.

Despite already delivering significant growth, Pro Medicus continues to win new contracts globally, particularly in the United States.

And with its shares down heavily from their highs, now could be an opportune time to invest for the long term.

The post 3 high-quality ASX shares to buy while they are cheap appeared first on The Motley Fool Australia.

That's the view of analysts at Bell Potter, who are urging investors to buy the health imaging technology company's shares while they are down.

What is the broker saying?

Bell Potter was pleased with news that Northwestern Medicine has renewed with the ASX 200 tech stock for a further five years on improved terms. It said:

Northwestern Medicine has signed a 5 year extension with PME for the Visage Viewer at increased rates and with an increased minimum deal value. Northwestern is one of the largest healthcare providers in the state of Illinois and a leading academic medical centre and remains a highly valuable client. Contract value is upgraded from $22m to $37m over five years.

PME continues to win new business in the United States, last week announcing the signing of a five year $23m deal with University of Maryland Medical System covering Visage 7 Viewer and Visage Workflow – but again no archive (Maryland already has an off premises archive). We understand the incumbent was Carestream (a company owned by Phillips).

Outside this, Bell Potter has trimmed its revenue forecast slightly to reflect a delay in revenues from the major Trinity Health contract and a weaker US dollar. It adds:

FY26 revenue forecast is reduced by a further 3.4% to $261m owing to amendments in the commencement date for exam revenues on major new contract implementations at Trinity Health and U. Colorado. The weaker US$ is also expected to have a material impact on revenues in the current period.

Longer term, the outlook remains strong with PME FY27 exam revenues expected to benefit from full period benefit of implementations in the current half including the two largest cohorts of the Trinity Health contract plus the Big Bang implementation at U. Colorado covering radiology and cardiology.

Time to buy this ASX 200 tech stock?

According to the note, the broker has retained its buy rating on the ASX 200 tech stock with a slightly reduced price target of $226.00 (from $240.00).

Based on its current share price of $132.38, this implies potential upside of 70% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

PME continues to win new work and retains 100% of its existing client base. The stock is trading 60% below it all time high – not all attributable to the re-rating of its software revenues stream i.e. the law of large numbers is catching up, hence harder now for the company to maintain +30% EPS growth. Retain buy, PT amended to $226 following earnings amendments.

The post This dirt cheap ASX 200 tech stock could rise 70% appeared first on The Motley Fool Australia.

That's a strong move, but zoom out and the picture looks very different. Pro Medicus shares are still down roughly 40% in 2026, following a sharp reset in valuation.

So, what's changing?

Major US contracts

In just two weeks, Pro Medicus has landed two significant US contracts and that's starting to shift sentiment.

The latest win came via its wholly owned US subsidiary, Visage Imaging, which has signed a five-year contract renewal with Northwestern Medicine.

This is no small client. Northwestern Medicine is a leading academic health system based in Chicago, anchored by top-ranked hospitals including Northwestern Memorial Hospital. It spans more than 200 sites across Illinois and serves as the primary teaching affiliate for the Northwestern University Feinberg School of Medicine.

The deal itself is valued at $37 million and centres on Pro Medicus' flagship Visage 7 Viewer platform, a high-performance imaging solution that continues to win traction in the US healthcare system.

And it doesn't stand alone. Just last week, Pro Medicus secured another five-year agreement, this time with the University of Maryland Medical System. That contract is worth $23 million and will see its cloud-based Visage 7 Enterprise Imaging Platform rolled out across the network, delivering a unified imaging solution for diagnostics.

Expanding US penetration

Two major wins. Two weeks. Real momentum for Pro Medicus shares. This is exactly what investors want to see from a premium-priced growth stock, continued contract flow, expanding US penetration, and validation of its technology at the highest levels.

And make no mistake, this is a high-quality business.

Pro Medicus operates in a niche but critical space. Its imaging software is deeply embedded in hospital workflows, making it sticky, high-margin, and difficult to replace. Its cloud-based model also positions it well as healthcare systems modernise infrastructure.

Valuation and concentration risk

But there are risks. The biggest one? Valuation.

Even after a 40% pullback, Pro Medicus still trades at a premium to the market. That leaves little room for execution missteps. Any slowdown in contract wins or delays in implementation could quickly hit sentiment again.

There's also concentration risk. Large contracts are lumpy, and revenue visibility can fluctuate depending on deal timing.

Still, the recent news suggests demand remains strong, particularly in the lucrative US market.

What next for Pro Medicus shares?

So, is this a sentiment changer? Brokers seem to think so.

According to TradingView data, 13 out of 14 analysts rate Pro Medicus shares as a hold, buy, or strong buy. The average 12-month price target sits at $199.60, implying potential upside of around 50% from current levels.

And the bulls are even more ambitious. The most optimistic forecasts tip the stock could climb back to $275, suggesting a potential gain of 107%.

The post Still down 40%, are Pro Medicus shares primed to break out? 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 jump

The Australian share market looks set for a strong session on Tuesday following a positive start to the week in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 122 points or 1.35% higher. On Wall Street, the Dow Jones was up 0.6%, the S&P 500 rose 1%, and the Nasdaq pushed 1.2% 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 overnight. According to Bloomberg, the WTI crude oil price is up 1.5% to US$98.00 a barrel and the Brent crude oil price is up 3.4% to US$98.39 a barrel. Traders were buying oil after the US blockaded Iranian ports.

Buy Pro Medicus shares

The team at Bell Potter remains bullish on Pro Medicus Ltd (ASX: PME) shares following the announcement of a new contract renewal. In response, the broker has retained its buy rating and $226.00 price target. It said: "Longer term, the outlook remains strong with PME FY27 exam revenues expected to benefit from full period benefit of implementations in the current half including the two largest cohorts of the Trinity Health contract plus the Big Bang implementation at U. Colorado covering radiology and cardiology"

Gold price falls

ASX 200 gold shares such as Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a relatively subdued session on Tuesday after the gold price fell overnight. According to CNBC, the gold futures price is down 0.5% to US$4,763.3 an ounce. A stronger US dollar put pressure on the precious metal.

Hold A2 Milk shares

On Monday, A2 Milk Company Ltd (ASX: A2M) shares crashed 13% following a guidance downgrade. This morning, Bell Potter has responded by retaining its hold rating with a reduced price target of $8.35 (from $9.55). It said: "While some of the issues are likely to be temporary in nature (such as elevated air freight) they may well persist into 1Q27e as in-market inventory levels are restored. The deterioration in FY26e margin expectations, when supply chain issues were flagged by SM1 in Feb'26 and are now below Aug'25 guidance levels on a higher revenue base is somewhat concerning, given returning ingredient COG inflation."

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

You need businesses that can keep moving forward without constant intervention.

That usually means ASX 200 stocks with durable demand, strong competitive positions, and the ability to grow without relying on perfect conditions.

With that said, here are three stocks that I think fit that description.

Hub24 Ltd (ASX: HUB)

Hub24 is a business that sits quietly behind the scenes of the wealth industry.

It provides the infrastructure that advisers use to manage client portfolios, which means it benefits as more money flows into professionally managed investments.

What I find interesting is how growth compounds. It is not just about attracting new clients. Existing accounts can grow as markets rise and as additional funds are added over time. That creates a layered effect, where growth builds on itself.

I also think the shift toward more sophisticated investment platforms is still playing out. As advisers look for better technology and reporting tools, platforms like Hub24 are well positioned to capture that demand.

For a buy and hold investor, I think that steady, structural growth is appealing.

ResMed Inc. (ASX: RMD)

ResMed is a business that I think benefits from a problem that is not going away.

Sleep apnoea and respiratory conditions are widespread and, in many cases, underdiagnosed. That creates a large and ongoing pool of potential patients.

What stands out to me is how the company monetises that. It is not a one-off product sale. There is an ongoing relationship with patients through devices, masks, and connected services that support long-term therapy.

That recurring revenue element is powerful. It creates visibility over future revenue and strengthens the company's position within the healthcare system.

For long-term investors, I think businesses tied to essential health needs can be easier to hold through market cycles.

Pro Medicus Ltd (ASX: PME)

Pro Medicus approaches healthcare from a different angle.

Instead of physical products, this ASX 200 stock focuses on software that helps doctors and hospitals interpret medical images more efficiently.

What I like here is the business model. The company typically signs long-term contracts with major healthcare providers, just like it did today, which can create a pipeline of revenue that extends well into the future.

At the same time, its technology is designed to improve workflow and speed, which makes it valuable to customers once implemented.

That combination of long contracts and high switching costs can support durability, and could ultimately underpin strong earnings growth over the next decade.

Foolish takeaway

For me, buy and hold investing is about finding ASX 200 stocks that can keep progressing over many years.

Hub24 benefits from long-term growth in managed investments, ResMed is tied to ongoing healthcare demand, and Pro Medicus provides critical software with long-term contracts and strong customer relationships.

They are different in what they do, but I think each has qualities that could make them well suited to a long-term approach.

The post Why these ASX 200 stocks could be perfect for buy and hold investors appeared first on The Motley Fool Australia.