The latest recovery follows a brutal 12 months for the sector.

The S&P/ASX 200 Health Care Index (ASX: XHJ) fell 39% over the year to a nine-year low on 3 June 2026. Since then, the sector has bounced roughly 20% in a single month.

The broader S&P/ASX 200 Index (ASX: XJO) has risen just 0.1% over the same period.

So which stocks deserve a spot on your watchlist right now?

Let's take a look at three.

Why ASX healthcare stocks are rebounding

Healthcare was the worst-performing sector on the ASX in FY26.

Why? A stronger Australian dollar, higher costs, and regulatory uncertainty all weighed on returns.

When a sector falls that far that fast, bargain hunters tend to circle, and that is exactly what has been happening since early June.

Institutional investors have rotated out of resources and into beaten-down healthcare names.

Here are three ASX healthcare stocks riding that recovery.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is one of the highest-quality software businesses on the ASX.

The company's Visage platform helps hospitals view, manage, and share medical images.

Over the last year, Pro Medicus shares have been on a wild ride.

Shares sank to a 52-week low of $107.75 on 24 February before rebounding sharply. In good news for the company, the recovery has largely been fuelled by a run of new contract wins and renewals.

Brokers remain optimistic, too.

According to Morgans, the broker has reaffirmed an accumulate rating and $230 price target on Pro Medicus shares. Citi is even more upbeat, with a buy rating and a $240 target.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix Pharmaceuticals is the ASX's flagship radiopharmaceutical company.

The company develops targeted radiation products for imaging and treating cancer.

Unfortunately, the stock has been volatile over the past year, but there is plenty happening beneath the surface.

Telix has struck a strategic radiopharma collaboration with US biotech Regeneron under which the two companies will co-develop and co-commercialise next-generation radiopharmaceutical therapies on a 50/50 cost-and-profit-sharing basis. Under this deal, Telix will gain access to Regeneron's antibody platform. Telix will also be able to expand its reach in solid-tumour radiopharma without bearing the full development burden itself.

The company also has several FDA catalysts in 2026, led by the resubmitted NDA for TLX101-Px, branded Pixclara, an investigational PET imaging agent for glioma that the FDA accepted in April.

Perhaps as a result, management has guided to FY26 revenue of US$950 million to US$970 million.

For investors comfortable with greater levels of risk, Telix is an intriguing option among ASX healthcare stocks.

CSL Ltd (ASX: CSL)

CSL is the giant of these three ASX healthcare stocks.

The blood products and vaccines business lost around half its value over the past year, a de-rating that has wiped out years of gains.

However, the tide may be turning.

CSL shares have surged about 35% since their early-June low to $122.89.

Broker views remain split.

Morgans has a buy rating and $147.59 price target on CSL shares, whilst the consensus target sits near $140.15, implying roughly 14% upside.

The key test for CSL shares comes with the FY26 result on 19 August.

Foolish Takeaway for ASX healthcare stocks

These three ASX healthcare stocks each tell a different story.

Pro Medicus offers quality and momentum. Telix offers pipeline optionality. CSL offers a potential turnaround at a beaten-down price.

All three carry risk, and recoveries can stall.

But for investors hunting the next leg of the rebound, these ASX healthcare stocks are well worth watching.

The post Top 3 ASX healthcare stocks to watch appeared first on The Motley Fool Australia.

Here, we review three fresh buy, hold, and sell calls from expert market analysts.

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price soared 414% in FY26 to finish at $8.35 per share.

This was a vastly different performance to many of its peers, which suffered major declines amid a broader tech sector rout. 

Weebit develops advanced semiconductor memory technology.

Mark Elzayed from Investor Pulse reckons there's more growth ahead for this ASX tech share.

He explains his buy rating on The Bull this week:

Licensing deals with Texas Instruments and onsemi have contributed to company performance. Revenue guidance of $10 million in full year 2026 and a recent capital raising of $102 million fortifies the balance sheet for artificial intelligence and research development.

The shift towards a recurring royalty model generates long term operating leverage.

Momentum and news flow are positive, although the multi year path from licence to royalty income remains the key execution risk.

Metals X Ltd (ASX: MLX)

The Metals X share price ripped 142% to close out FY26 at $1.32.

Elzayed has a hold rating on this ASX materials share.

He explained:

The company is Australia's largest tin producer. It has a 50 per cent equity interest in the Renison tin operation in Tasmania.

Revenue of $285 million in full year 2025 was up 30 per cent on the prior corresponding period.

However, much of this tin market tightness and consolidation now appears priced into the stock.

The stock is already reflecting a bullish structural tin thesis.

So, in our view, MLX is better suited to holding than buying at these levels.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price fell 29% in FY26 amid a savage healthcare sector downturn. 

However, the stock price of this medical imaging software provider has been recovering strongly since hitting a 52-week low of $107.75 in February.

Pro Medicus shares are up by more than 70% since hitting that floor.

The broader healthcare sector pivoted on 3 June and is also rapidly rising.

Tony Locantro from Alto Capital has a sell recommendation on this ASX 200 healthcare share.

Locantro explained:

The company recently delivered an outstanding first half result in full year 2026. Underlying earnings before interest and tax was up 29.7 per cent and revenue was up 28.4 per cent amid securing more than $A280 million in new contract wins.

Despite these exceptional fundamentals, the company's premium valuation reflects high market expectations and leaves limited room for disappointment.

While Pro Medicus remains a best-in-class business with strong long term prospects, the current risk-reward balance supports a view to trim holdings at current levels.

The post Buy, hold, sell: Weebit Nano, Metals X, Pro Medicus shares appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) health imaging company closed on Friday trading for $187.11. As we head into the Monday lunch hour, shares are swapping hands for $188.83 each, up 0.9%.

For some context, the ASX 200 is up 0.2% at this same time.

With today's intraday lift factored in, Pro Medicus shares are now up an impressive 74.6% since notching a one-year closing low of $108.15 on 24 February.

That strong rebound followed months of heavy selling after the stock hit an all-time closing high of $330.48 a share on 17 July 2025.

As you may be aware, that selling pressure came amid a broader global sell-down of Software as a Service (SaaS) stocks.

The so-called SaaSpocalypse hit Pro Medicus and many other stocks dependent on their proprietary software amid concerns that artificial intelligence might replace the services these companies provide.

But with those concerns clearly fading for Pro Medicus over the past five months, is the ASX 200 healthcare share still a good buy today?

Should I buy Pro Medicus shares now?

Alto Capital's Tony Locantro recently ran his slide rule over the ASX 200 stock (courtesy of The Bull).

"The company provides medical imaging software and services to hospitals and healthcare groups across the world," he said.

Locantro noted:

The company recently delivered an outstanding first half result in full year 2026. Underlying earnings before interest and tax was up 29.7% and revenue was up 28.4% amid securing more than A$280 million in new contract wins.

But following the strong rebound in Pro Medicus shares since February, Locantro issued a sell recommendation on the stock.

He concluded:

Despite these exceptional fundamentals, the company's premium valuation reflects high market expectations and leaves limited room for disappointment. While Pro Medicus remains a best-in-class business with strong long-term prospects, the current risk-reward balance supports a view to trim holdings at current levels.

What else did the ASX 200 healthcare share report for H1 FY 2026?

Atop the strong earnings and revenue growth Locantro mentioned above, Pro Medicus shares have also been grabbing investor attention amid surging profits.

The company reported first-half net profit after tax of $171.2 million, up 230.9% year on year.

"Our profits continue to grow strongly even though our biggest implementation during the period in Trinity Cohort 1 went live towards the end of October so had limited impact on the half," Pro Medicus CEO Sam Hupert said on the day of the results release.

The post Up 75%, are Pro Medicus shares still a good buy now? appeared first on The Motley Fool Australia.

While this is disappointing for shareholders, it could have created a compelling buying opportunity for others.

That's the view of analysts at Bell Potter, who believe the ASX tech stock could have huge upside potential.

What is the broker saying?

Bell Potter notes that there has been a bit of a rally in the tech sector recently. However, WiseTech shares have missed out due to a number of reasons. It said:

There has been a tech rally of sorts on the ASX over the past couple of months and this has been led by some of the large cap names including Pro Medicus, Block and Life360. One large cap which has not rallied, however, is WiseTech and this is likely due to a number of factors including further negative press reports around founder and Chief Innovation Officer Richard White, concern around the potential future loss of key customer DSV and risk around both the FY26 result and FY27 guidance and whether each meets market expectations. 

The good news is that Bell Potter believes that a change could be coming for its shares. This is especially the case given its belief that WiseTech will deliver on its guidance for FY 2026 and provide guidance that meets expectations. It adds:

In our view, however, these negatives will start to dissipate over the coming months and indeed have already commenced with the appointment earlier this month of Raelene Murphy to Chair which we regard as a positive move. We also believe the company will achieve its FY26 guidance when it reports next month – albeit with some risk around revenue but this should be made up by the margin – and the FY27 guidance will meet expectations following downgrades by the sell-side (ourselves included) over the past few months. 

This potential reduction in negatives could lead to a rally in the share price and this may have already started with the appointment of the new Chair. Some positive outlook statements at the result next month could provide further impetus and, as examples, may include expectations of large freight forwarders shifting to the new pricing model in FY27 and DSV shifting more DB Schenker volumes onto CargoWise.

WiseTech shares tipped to double

According to the note, the broker has retained its buy rating and $71.75 price target on the company's shares.

Based on its current share price of $34.95, this implies potential upside of 105% over the next 12 months.

Commenting on its buy thesis, Bell Potter said:

There is also no change in our target price of $71.75 and we maintain the BUY. We believe the stock looks value on an FY27 EV/EBITDA multiple of c.15x and is trading at an excessively large discount to the Technology One multiple of c.27x. We note WiseTech has higher forecast earnings growth than Technology One over the next few years given the expected margin recovery post the e2open acquisition.

The post Why WiseTech shares could rocket 100% appeared first on The Motley Fool Australia.

If I had $10,000 to invest in ASX 200 shares this month, I would want a mix of global growth, specialist technology, and businesses with long runways.

Here are three shares I would consider buying.

Breville Group Ltd (ASX: BRG)

I would start with Breville. An investment in the appliance company could give investors exposure to a business that has taken ordinary kitchen categories and turned them into premium global products.

Breville is best known for coffee machines, cooking appliances, food preparation products, and other household equipment.

The reason it stands out is that its products are often tied to habits, not just purchases. A coffee machine can become part of the morning routine, while cooking products can sit at the centre of how people prepare food at home.

That gives the brand more depth than a simple appliance label.

Breville is still exposed to consumer spending cycles, and premium products can face pressure when households become cautious. But its global footprint, strong product design, and brand positioning give it a long runway if management keeps executing well.

Hub24 Ltd (ASX: HUB)

Another top ASX 200 share to buy could be Hub24.

The company operates an investment and superannuation platform used by financial advisers to manage client portfolios, reporting, administration, and investment options.

This is not the most obvious growth story on the ASX, but it is an important one. Australia has a large and growing pool of wealth sitting in superannuation and investment accounts. Advisers need better technology to manage that money, and clients increasingly expect clearer reporting, broader choice, and more efficient administration.

Hub24 has been taking market share from older platform providers by offering a more modern service to advisers and wealth professionals.

Competition remains a risk, and platform margins can attract pressure over time. But if the company keeps winning advisers and attracting funds, it could continue benefiting from one of the biggest structural tailwinds in Australian finance.

Pro Medicus Ltd (ASX: PME)

Finally, Pro Medicus could be an ASX 200 share to buy with the funds.

Pro Medicus is one of the ASX's highest-quality software shares. Its Visage imaging platform is used by hospitals and radiology groups to view, manage, and distribute medical images across large healthcare networks.

The business solves a problem that is becoming more demanding. Medical scans are getting larger, imaging volumes continue to rise, and healthcare providers need systems that can move quickly across complex environments.

That is where Pro Medicus has built its reputation. Its contracts can be large, long term, and difficult to displace once the software is embedded inside hospital workflows.

The main risk is valuation. Pro Medicus often trades on high expectations, which means any disappointment can hit the share price hard.

But as a long-term holding, its mix of healthcare demand, specialist software, and global expansion potential remains compelling.

The post Where to invest $10,000 in ASX 200 shares in July appeared first on The Motley Fool Australia.

Let's see if it is bullish, bearish, or something in between. Here's what the broker is saying:

Pro Medicus Ltd (ASX: PME)

Morgans remains positive on this medical imaging technology company after reviewing its financial model. This week, the broker has reaffirmed its accumulate rating and $230.00 price target on Pro Medicus shares. It said:

We have identified an error in the previously published financial summary tables, where a number of figures did not pull through correctly from our underlying model. The error was presentational only. The underlying financial model is unchanged, with no impact on any forecast, assumption or valuation input. No change to our ACCUMULATE rating or A$230.00 DCF-based target price.

ResMed Inc. (ASX: RMD)

The broker has been looking at ResMed's decision to sell one of its software businesses. Morgans supports the decision and believes ResMed remains well-placed for growth through to FY 2028.

In response, it has retained its buy rating with a $40.97 price target. It explains:

MatrixCare will be divested for US$490m cash (c9x earnings), crystallising a disappointing financial outcome (paid US$750m (25x) in 2018) for a business that expanded software capabilities but delivered modest earnings growth. Strategically, however, we believe the transaction makes sense, as it simplifies the portfolio and retains Brightree and MEDIFOX DAN, while exiting a lower-growth, non-core software business. Importantly, net proceeds will largely be returned to shareholders via an accelerated share repurchase (ASR), which should substantially offset earnings dilution from both the MatrixCare disposal and the recently completed Noctrix acquisition, while FY26 guidance has been reaffirmed. We make modest adjustments to FY26-28 forecasts, with our target price moving to A$40.97 (from A$41.72). BUY.

Worley Ltd (ASX: WOR)

Morgans isn't feeling as positive on this engineering company. It thinks investors should probably keep their powder dry for the time being due to challenging trading conditions. As a result, it has put a hold rating and $10.80 price target on its shares. It said:

The late June trading update lifted the FY26 Middle East impost to $60m EBITA (from $30-40m) and quantified the 2H FX impact as $50m. Medium term, WOR should see some earnings support from Middle East repair activity and a broader uplift in global upstream hydrocarbon spending driven by renewed energy security concerns. However, consensus already embeds strong growth into FY27 (Visible Alpha EBITA +12% YoY) which is well above industry forecast growth rates. With capex expectations continuing to soften in the key Energy end-market and the order book likely to roll over at the FY26 result, we retain our conservative view. We reduce our EBITA forecasts by 8-9% across our forecast period and cut our target price to $10.80 (from $11.80). HOLD maintained.

The post Buy, hold, sell: Pro Medicus, Worley, and ResMed shares appeared first on The Motley Fool Australia.

Here, John Athanasiou from Red Leaf Securities shares his insights on three ASX 200 shares (courtesy The Bull). 

Are they a buy, hold, or sell in the new financial year? 

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price dropped 28% in FY26 to close out the year at $29.47.

ASX 200 tech shares were smashed between late August through to 30 March this year.

Since then, tech shares have recovered almost 20% while TechnologyOne stock has lifted 16%.

Athanasiou has a buy rating on TechnologyOne shares, commenting:

This technology company holds an embedded position in enterprise resource planning software across government, education and the corporate sector.

The business benefits from long duration contracts, expensive switching costs and a highly recurring revenue base underpinning strong earnings visibility.

The company has consistently delivered double-digit earnings growth, while maintaining disciplined cost control.

While the valuation remains elevated, it's broadly supported by earnings visibility and structural digitisation tailwinds.

In a market favouring predictable cashflows and defensiveness, TechnologyOne remains a core long duration compounder.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price tumbled 29% in FY26 amid a broader healthcare sector rout. 

However, the ASX 200 healthcare share has been recovering ahead of its peers since hitting a 52-week low of $107.75 in February.

Pro Medicus shares are up 82% since that trough. The broader sector did not turn until 3 June but is rapidly rising.

Athanasiou explained his hold rating on Pro Medicus shares:

Pro Medicus remains a premium healthcare technology compounder with a dominant position in US medical imaging software.

The company exhibits strong operating leverage, minimal churn and structurally high returns on capital.

However, valuation is the binding constraint.

The market already embeds sustained high growth over an extended horizon, reducing the margin of safety.

PME remains a high quality hold, with upside dependent on continuing US market expansion and incremental large scale contract wins.

PLS Group Ltd (ASX: PLS)

The PLS Group share price soared 275% to close out FY26 at $5.02. 

PLS Group has reaped the rewards of strongly rebounding lithium prices over the past 12 months.  

Athanasiou has a sell rating on the ASX 200 lithium share, explaining:

PLS is a leading Australian lithium producer. Lithium remains structurally linked to electrification, but near term fundamentals are challenged by expanding supplies.

While PLS asset quality remains strong, earnings are highly leveraged to spot prices, generating volatility through the cycle.

Balance sheet strength provides a buffer, but doesn't offset cyclical earnings pressure.

PLS remains a high risk recovery trade dependent on the timing of lithium re-balancing, with limited near term visibility.

The post Buy, hold, sell: TechnologyOne, Pro Medicus, PLS Group shares appeared first on The Motley Fool Australia.

Brokers have indicated continuing confidence in several ASX 200 shares this week.

Let's take a look.

Telstra Group Ltd (ASX: TLS)

The Telstra share price is $4.99, up 0.1% today and up 2.2% over 12 months.

Morgan Stanley reiterated its buy rating on Telstra shares on Wednesday.

The broker lowered its 12-month share price target from $5.40 to $5.30.

This implies potential capital gains of 6% in FY27.

Liontown Ltd (ASX: LTR)

The Liontown share price is $1.47, down 0.5% today and up 83% over 12 months.

The lithium producer was one of the 5 top ASX 200 mining shares for capital growth in FY26.

Macquarie renewed its buy rating on Liontown shares with a $2.30 target this week.

This suggests a potential 57% upside ahead.

Life360 Inc (ASX: 360)

The Life360 share price is $25.82, down 0.4% today and down 21% over 12 months.

Citi reiterated its buy rating on Life360 shares on Tuesday.

The broker raised its target from $28.25 to $31.95.

This implies potential capital gains of 24% ahead.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price is $199.48, down 5.1% today and down 37% over 12 months.

However, that 12-month performance belies this ASX 200 healthcare share's incredible comeback in CY26.

Pro Medicus shares hit a 52-week low of $107.75 on 24 February. Since then, they've ripped 85% higher.

And since the broader healthcare sector pivoted on 3 June, Pro Medicus shares have outperformed with a 25% gain.

That compares to a 21% increase in the S&P/ASX 200 Health Care Index (ASX: XHJ) since 3 June.

Citi sees more room for growth, and reiterated its buy rating with a $240 target this week.

This suggests another 20% upside ahead.

South32 Ltd (ASX: S32)

The South32 share price is $4.02, up 5.2% today and up 32% over 12 months.

Morgan Stanley maintained its buy rating on the ASX 200 mining share this week.

The broker shaved its 12-month target down from $4.85 to $4.75.

This implies a potential 18% upside ahead.

BHP Group Ltd (ASX: BHP)

The BHP share price is $58.28, up 2.5% today and up 52% over 12 months.

Morgan Stanley renewed its buy rating on BHP shares with a $67.50 target this week.

This suggests a potential 15% upside in the new financial year.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is $34.24, down 1.1% today and down 70% over 12 months.

This tech share was the fastest faller of the ASX 200 in FY26.

Citi anticipates a strong recovery for WiseTech shares and renewed its buy rating this week.

However, the broker cut its 12-month target significantly from $65.65 to $52.

This still implies potential capital gains of 52% in FY27.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is $10.15, up 5.1% today and up 46% over 12 months.

Morgan Stanley kept its buy call on the ASX 200 energy share but lowered its target from $13.65 to $11.95 this week.

This suggests a potential 17% upside ahead.

Coles Group Ltd (ASX: COL)

The Coles share price is $23.58, down 0.4% today and up 15% over 12 months.

UBS renewed its buy rating on the ASX 200 consumer staples share with a $25.50 target on Monday.

This suggests a potential 8% upside ahead.

The post 9 ASX 200 shares with reiterated buy calls this week appeared first on The Motley Fool Australia.

Brokers have reduced their ratings on many ASX 200 shares this week.

Let's take a look at their new ratings and 12-month share price targets.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is $157.90, down 3.6% today.

Over the past 12 months, this ASX 200 mining share has climbed 47%.

Morgan Stanley downgraded Rio Tinto shares to a sell rating today.

The broker has a 12-month price target of $149.

This implies a potential 5% downside ahead.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is $10.15, down 3.6% today.

Magellan was one of the top 5 ASX 200 financial shares for capital growth in FY26, rising 13%.

The highlight of the year was Magellan's proposed merger with boutique investment bank, Barrenjoey Capital Partners.

Magellan and Barrenjoey completed the merger on 1 July. 

Morgans downgraded Magellan shares to a hold rating on Monday.

The broker lifted its 12-month price target slightly from $11.19 to $11.29.

This implies a potential 11% upside ahead.

Magellan will ask shareholders to vote on a company rebrand to Barrenjoey Group at the AGM in October.

Lottery Corporation Ltd (ASX: TLC)

The Lottery Corporation share price is $5.48, up 0.2% today.

This ASX 200 consumer discretionary share has risen 2.1% over the past year.

Citi downgraded the stock to a sell rating with a $5 target this week.

This indicates a possible 8% decline ahead.

Transurban Group (ASX: TCL)

The Transurban share price is $14.69, up 0.2% today.

This ASX 200 industrials share has risen 9.5% over 12 months.

UBS downgraded Transurban shares to a hold rating with a $14.50 target.

This suggests a potential 1% downside ahead.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is $11.01, down 3.7% today.

This ASX 200 gold share has stormed 51% higher over the past year.

Macquarie downgraded Evolution shares to a hold rating yesterday.

The broker lowered its 12-month price target from $13 to $12.

This suggests potential capital growth of 8% over the next year. 

Worley Ltd (ASX: WOR)

The Worley share price is $10.78, up 0.5% today.

This ASX 200 industrials share has tumbled 18% over the past 12 months.

Ord Minnett downgraded Worley shares from accumulate to hold with a $12.70 target on Wednesday.

This still implies a potential 18% upside ahead.

The broker said:

There remains considerable uncertainty over short-term earnings for Worley and its peers.

More broadly, we highlight the change in Worley's business mix, with a modest shift to engineering, procurement and construction (EPC) work, i.e. larger developments and responsibility for full project delivery, a business segment that is higher risk than traditional consultancy and advisory.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo share price is 89 cents, up 0.2% today.

Judo shares were sold off in June after the bank downgraded its profit guidance.

Ord Minnett downgraded Judo shares from a buy to a hold rating yesterday.

The broker slashed its 12-month price target from $2.40 to $1.60.

This implies a potential 80% upside ahead.

Ord Minnett commented:

We also cut our recommendation on Judo to Hold from Buy despite the apparent value on offer, given uncertainty around the company's processes and the time it will take for management to rebuild market confidence.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price is $209.07, down 1.4% today.

Pro Medicus shares hit a 52-week low of $107.75 on 24 February. Since then, the ASX 200 healthcare share has ripped 94% higher.

Jefferies thinks the stock has overshot. The broker downgraded Pro Medicus shares to a hold rating yesterday.

The broker lifted its share price target substantially from $147 to $192.60.

But with Pro Medicus shares already trading well above that, the broker recommends investors sit tight.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is $18.79, down 1% today.

This ASX 200 financial share has fallen 9.7% over 12 months.

Jarden downgraded Suncorp shares to a hold rating on Monday.

The broker raised its 12-month price target slightly from $19.10 to $19.60.

This implies a potential 4% upside ahead.

The post 9 ASX 200 shares downgraded by analysts this week appeared first on The Motley Fool Australia.

On The Bull this week, two experts give us their views on three ASX 200 shares as the new financial year gets underway.

Let's check them out. 

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price fell 28.64% in FY26 amid a broader sector rout. 

However, that 12-month statistic hides the dramatic nature of the Pro Medicus share price rebound since February. 

Since its 52-week low of $107.75 on 24 February, Pro Medicus shares have skyrocketed 94%! 

Morgans has a buy rating on this ASX 200 healthcare share. 

In a note issued last week, the broker said:  

PME has re-gained positive momentum (MoMo) off its multi-year lows. The move reflects a closing of the value gap flagged in our recent note (1 June), not any change to the underlying business.

With a >50% price move in June and heavy buying across the network in the mid to low $100s, taking some profits on new and overweight positions is hard to argue against, but absolutely view maintaining positions in PME as a core growth holding.

With the near-term upside/downside skew now less favourable, happy to lock in some outsized profits while maintaining a core growth holding.

Morgans increased its 12-month price target on Pro Medicus shares to $230. 

BHP Group Ltd (ASX: BHP)

The BHP share price soared 62% to finish FY26 at $59.40. 

James Bills from Shaw and Partners has a hold rating on the market's largest ASX 200 mining share. 

Bills said: 

BHP remains a cornerstone of the Australian sharemarket, underpinned by its scale, diversified commodity exposure and strong balance sheet.

While iron ore continues to drive earnings, BHP is increasingly leveraged to future-facing commodities, including copper, where demand is expected to increase significantly due to growth in data centres and electric vehicles.

Despite near term volatility in commodity prices and sensitivity to global growth, the company's disciplined capital management and strong cash generation support shareholder returns.

Holding remains appropriate given its quality asset base and exposure to long term structural demand trends.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price rose 28.67% to $40.03 in FY26.

This made Woolworths shares the best performer within the consumer staples sector last year.

The defensive sector had a strong year in FY26 amid resurgent inflation and rising interest rates. 

The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) rose 10.09% and delivered total returns of 13.72%. 

Bills has a sell rating on Woolworths shares. 

The analyst explains: 

Woolworths is facing increasing competitive pressure in the supermarket sector, along with possible margin compression driven by higher operating and supply chain costs.

While the share price has made a notable recovery since October 2025, the outlook is challenging given increasing cost of living pressures among price sensitive shoppers.

With a relatively modest dividend yield and limited short term catalysts, it may be prudent to reduce exposure and redeploy capital into opportunities with stronger growth prospects.

The post Buy, hold, sell: Pro Medicus, BHP, Woolworths shares appeared first on The Motley Fool Australia.

These ASX shares have risen by over 500% and 125% respectively since the start of the year. 

This huge rise is difficult to ignore for growth investors, and experts have provided updated commentary on these soaring stocks. 

Here is what brokers are saying. 

Volatility expected for Echo IQ

A new report from Bell Potter has included updated guidance on Echo IQ shares. 

It is an ASX-listed medical technology company utilising proprietary, AI-driven software (the EchoSolv platform) to analyse echocardiographic data to aid clinicians in diagnosing serious conditions like aortic stenosis (AS) and left ventricular dysfunction more accurately.

Its share price has stormed higher in 2026 on the back of key US deals and AI development.

A note out of Bell Potter indicates it could experience some volatility moving forward. 

Looking on the positive side, the broker said Echo IQ is making good progress by developing new products and securing long-term funding.

A major positive was partnering with Pro Medicus Ltd (ASX: PME), which gives credibility to its EchoSolv platform.

However, winning new hospital and radiology customers in the US will take time – likely years, not months.

Price target increased 

Bell Potter has increased its price target to $1.75 per share (from $1.65).

The higher valuation reflects the stronger financial position after the capital raise.

However, the broker expects the share price to remain volatile because:

• Revenue growth is expected to be modest over the next two years.
• The company will continue to spend significant cash.
• The share price will likely move based on announcements of new customer wins.

The broker now has a speculative hold recommendation, and based on the updated price target, sees limited share price upside in the next 12 months. 

Last week, these ASX shares closed trading at $1.65. 

Sunrise Metals could keep rising 

Sunrise Metals shares have also rocketed higher in 2026. 

The company is focused on the development and application of ion-exchange technology for extracting valuable metals in the mining industry and for purifying and recycling wastewater.

Positive development updates have helped swing momentum to the positive side for these ASX materials shares. 

According to analyst views via TradingView, this could continue. 

These ASX shares closed last week trading at $17.75 per share. 

The average analyst forecast indicates Sunrise Metals shares could hit $20.00 per share in the next 12 months. 

From last week's closing price, this indicates a further 12% upside. 

The post What are experts saying about these red hot ASX shares? appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) lifted 0.92% in the final trading week of FY26. 

The ASX 200 finished the week at 8,844.4 points.

This is the second time in three weeks that ASX 200 healthcare shares have been out in front. 

A sector rotation appears underway as value investors swoop on blue-chip favourites like CSL Ltd (ASX: CSL) and Pro Medicus Ltd (ASX: PME). 

The healthcare sector appears to have turned on 3 June when the S&P/ASX 200 Health Care Index (ASX: XHJ) hit a 9-year low.

That represented a 39% decline over 12 months. You can read comprehensive analysis of why the healthcare sector struggled in FY26 here.

Since then, healthcare shares have increased 20% in just one month compared to an 0.7% rise for the ASX 200 overall. 

In a new note, top broker UBS said ASX 200 healthcare shares and US biotech stocks both rose strongly in June, commenting:

There was limited company specific news to explain this recovery, suggesting it was due to broader market forces including sector rotation.

Healthcare was the worst performer among the 11 market sectors in FY26. You can read more about the market's winners and losers in FY26 here. 

Now, let's review some individual stock performances from last week.

Healthcare shares led the ASX sectors last week

The CSL share price rose 6.05% to $121.81 last week, and it's up 32% since 3 June. 

Pro Medicus shares jumped 11% to $209.65 on Friday, and are up 31% since 3 June. 

Resmed CDI (ASX: RMD) shares ascended 5.39% to $30.50 last week, and are 18% higher since 3 June. 

Sonic Healthcare Ltd (ASX: SHL) shares rose 4.06% to $21.25 last week, and are up 13.1% over the month. 

The Ramsay Health Care Ltd (ASX: RHC) share price lifted 2.46% to $44.16 last week, and is up 21% since 3 June. 

The Cochlear Ltd (ASX: COH) share price increased 5.87% to $124.96 last week, and is up 31% since 3 June. 

Telix Pharmaceuticals Ltd (ASX: TLX) shares ripped 10.11% to $16.88 on Friday, and are up 38% over the month.

Respiratory imaging technology company 4DMedical Ltd (ASX: 4DX) rose 2.16% to $4.25 per share on Friday. 

4DMedical shares are up 12% since 3 June. 

The ASX 200 healthcare share was the best performer of the entire ASX 200 in FY26 after skyrocketing 1,786%. 

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post Healthcare shares lead the ASX 200 again as sector rotation gathers pace appeared first on The Motley Fool Australia.

Listed below are ten ASX shares that I think could be worth buying in FY 2027.

Breville Group Ltd (ASX: BRG)

The first ASX share to consider is Breville, which sells premium kitchen appliances across global markets.

Its coffee machines, cooking products, and food preparation appliances have turned everyday household routines into a strong brand-led growth story. International expansion gives the company a long growth runway.

Goodman Group (ASX: GMG)

Goodman owns and develops industrial property across key global markets.

Its assets are used for logistics, warehousing, ecommerce, and data infrastructure. Demand for well-located industrial space remains strong, and Goodman's data centre development pipeline gives it room to keep creating value.

Macquarie Group Ltd (ASX: MQG)

Macquarie gives investors exposure to global asset management, commodities, markets, banking, and infrastructure-related finance.

Its earnings can move around from year to year, but this ASX share has a strong record of finding opportunities across market cycles.

Megaport Ltd (ASX: MP1)

Megaport provides flexible digital infrastructure through cloud connectivity and its move into compute.

Its Latitude.sh acquisition has broadened the story beyond network-as-a-service. Contract wins in this newer area suggest the ASX share could be building a larger opportunity.

Netwealth Group Ltd (ASX: NWL)

Netwealth operates an investment platform used by financial advisers and wealth professionals.

It has benefited from demand for better technology, reporting, and administration in wealth management. Australia's growing retirement savings pool gives the business a powerful long-term tailwind.

Pro Medicus Ltd (ASX: PME)

Another ASX share to consider is Pro Medicus. It develops medical imaging software for hospitals and radiology groups.

Pro Medicus' Visage platform helps clinicians handle large imaging files quickly across complex healthcare networks. Major contract wins in the United States show the strength of its product and long-term opportunity.

ResMed Inc (ASX: RMD)

ResMed is a global leader in sleep apnoea treatment and connected respiratory care.

Its devices, masks, software, and support services help patients manage long-term breathing conditions. With many sufferers still undiagnosed, the company has a large market opportunity ahead.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne provides enterprise software for governments, universities, and large organisations.

Its software is used for finance, payroll, planning, and administration. The shift to software-as-a-service has strengthened its annual recurring revenue base and could support many more years of growth.

Wesfarmers Ltd (ASX: WES)

Wesfarmers owns a collection of high-quality businesses, including Bunnings, Kmart, Officeworks, and industrial operations.

The company has a long record of disciplined capital allocation. That mix of retail strength, portfolio flexibility, and management quality makes it a dependable blue-chip candidate.

Xero Ltd (ASX: XRO)

Finally, Xero could be an ASX share to buy in FY 2027. It provides cloud accounting software for small businesses and advisers.

The company's platform helps with invoicing, payroll, bank feeds, reporting, and compliance. The company could keep growing as small businesses move more of their financial admin into digital systems.

The post 10 of the best ASX shares to buy in FY 2027 appeared first on The Motley Fool Australia.

Why are Echo IQ shares doing so well?

The company's shares have been performing strongly recently, shooting up by more than 50% when they announced a deal with fellow Australian imaging company Pro Medicus Ltd (ASX: PME).

The shares were trading at levels around $1.12 in mid-June but are now changing hands for $1.72, up 6.5% on Thursday.

Echo IQ said the new agreement with Advara Heartcare, "provides Echo IQ access to between 500,000 and 1,000,000 de-identified echocardiography studies and associated relevant clinical datasets''.

The company added:

The proposed dataset includes echocardiographic images together with associated clinical information, including de-identified patient demographics where applicable and appropriate, referral pathways, diagnostic findings and relevant clinical outcomes. Access to both large-scale imaging data and linked clinical datasets is expected to significantly enhance Echo IQ's ability to develop, train and validate future AI models across a broad range of cardiovascular conditions. The Company believes access to large, high-quality imaging datasets will become increasingly important as cardiovascular AI evolves from single-disease applications towards broader multi-condition diagnostic and predictive platforms. The Advara dataset is expected to materially strengthen the Company's future product development capabilities by providing a substantial imaging resources capable of further supporting algorithm development, model refinement and validation activities across multiple cardiovascular indications.

Strong deal flow good news for Echo IQ

The new agreement follows the Pro Medicus deal, under which the larger company agreed to invest an initial $10 million in Echo IQ through a subscription for secured convertible notes, with the right to subscribe for a further $10 million once Echo IQ had its EchoSolv HF product cleared by the US Food and Drug Administration.

EchoSolv HF is an AI-powered heart failure detection software.

Pro Medicus has also agreed to become a reseller for EchoSolv, "providing potential access to an extensive network of leading US health systems, academic medical centres and enterprise healthcare customers".

Echo IQ Chief Executive Officer Dustin Haines added at the time:

The execution of this binding Heads of Agreement with Pro Medicus represents a transformational milestone for Echo IQ and a significant validation of both our technology and long-term commercial strategy, while also providing exceptional financial flexibility to accelerate our commercialisation activities in the US.

Echo IQ also raised $110 million in new capital off the back of the Pro Medicus deal at $1.45 per share.

The post Up more than 550% in a year, why is this ASX biotech charging even higher? appeared first on The Motley Fool Australia.

Here's what the broker is saying about these three popular shares:

Collins Foods Ltd (ASX: CKF)

Morgans is positive on this quick-service restaurant operator following the release of its FY 2026 results.

However, the broker has cut its valuation to reflect disappointment in Europe. Morgans has a buy rating and $10.60 price target on Collins Foods shares. It said:

In our view, CKF reported a solid result in light of tough conditions. NPAT grew 17.6%, at the mid-point of guidance. COGS are expected to be flat to modest in FY27, which is better than feared. KFC Australia 1H27-to-date SSS of +4.0% is a stronger-than-expected start. Europe disappointed with early 1H27 SSS tracking deeply negative, though attributable to factors outside CKF's control.

Balance sheet remains strong with ND/EBITDA of 0.8x, keeping CKF well placed to fund the German expansion, accelerate Kwench rollout, and pursue further German bolt-on acquisitions. While the composition of our forecasts has changed, the net profit impact is minor. We believe CKF remains undervalued for its growth profile. Despite the tough consumer environment, CKF proves resilient regardless of numerous challenges and continues to deliver solid growth. We retain our BUY recommendation and revise our price target to A$10.60 from A$12.50.

Karoon Energy Ltd (ASX: KAR)

Another ASX share that Morgans has been looking at is Karoon Energy.

Following a rollercoaster month, the broker has upgraded the energy producer's shares to a buy rating with a $1.77 price target.

The broker appears to believe investors should be taking advantage of recent weakness caused by a Middle East peace agreement and guidance downgrade. It explains:

The last 30 days have been the toughest part of the rollercoaster, with KAR's share price -36% on an initial Middle East peace agreement and guidance downgrade. The start to 2026 was always going to be a tough period for KAR: a) heavy H1 investment spend, b) key Bauna well restart (SPS-92) and c) conflict uncertainty.

Now at the end of H1, the first two of those three factors have been resolved, with KAR moving back into positive FCF generation with most of its 2026 capex now sunk. KAR also announced the next phase of its on-market buyback starting in July 2026. We upgrade our rating to BUY (from Hold) with a A$1.77 target price (was A$1.67).

Pro Medicus Ltd (ASX: PME)

Morgans remains positive on this medical imaging technology company. However, due to a recent rally, the broker has downgraded Pro Medicus shares to an accumulate rating with an improved price target of $230.00.

Commenting on the downgrade, Morgans said:

PME has re-gained positive momentum (MoMo) off its multi-year lows. The move reflects a closing of the value gap flagged in our recent note (1 June), not any change to the underlying business. With a >50% price move in June and heavy buying across the network in the mid to low $100s, taking some profits on new and overweight positions is hard to argue against, but absolutely view maintaining positions in PME as a core growth holding.

With the near-term upside/downside skew now less favourable, happy to lock in some outsized profits while maintaining a core growth holding. TP upgraded to A$230.

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

The S&P/ASX 200 Health Care Index (ASX: XHJ) is down 37% over the past year, making it one of the worst-performing sectors on the entire ASX over that period. 

The benchmark S&P/ASX 200 Index (ASX: XJO) itself is up nearly 2% over the same stretch.

That gap is extraordinary. And it has created a situation that appears, on close inspection, to be an overreaction rather than a permanent impairment.

Three names in particular are well-positioned to bounce back after a tough run.

CSL: The world's second-largest plasma therapies company at a 15-year low valuation 

CSL Ltd (ASX: CSL) has had one of the most difficult years of any large-cap ASX healthcare stock in recent memory.

Earnings downgrades, a CEO change, and roughly $5 billion in non-cash impairments tied to the CSL Vifor acquisition have combined to send the share price down more than 50% over the past year.

Yet the business underneath those headline numbers remains the world's second-largest plasma-derived therapies company. The company benefits from barriers to entry that have taken more than a century to build and that no competitor can easily replicate. 

CSL trades at approximately 14.7 times forecast FY 2026 earnings, a valuation not seen in well over a decade.

Furthermore, three company directors, including chair Carolyn Hewson and interim CEO Gordon Naylor, have bought shares on market in recent weeks. This is a strong signal that those closest to the business believe the sell-off has overshot. 

Morgans retains a buy rating on CSL with a price target of $147.59, implying significant upside from current levels.

FY27 is the year the recovery either shows up or doesn't. Management itself has pointed to a new CEO and improving Behring division revenue as the specific catalysts the market should watch. 

ResMed: A global sleep apnoea leader whose recovery from AI-fear selling is already underway 

ResMed Inc (ASX: RMD) was sold down aggressively in 2025 on fears that GLP-1 obesity drugs would sharply reduce demand for its sleep apnoea devices. 

The real-world data have not supported that fear at the scale the market priced in. ResMed posted double-digit revenue and profit growth in Q3 FY26, with management confident about continued momentum.

Sleep apnoea remains one of the most underdiagnosed conditions in the developed world.

Management estimates there are over 1 billion sufferers globally, with the vast majority still untreated.

As awareness grows and diagnosis rates improve, demand for ResMed's devices, software, and cloud-based care management tools should continue expanding well beyond any GLP-1 headwind. 

ResMed's shares remain down heavily from their highs. But the recovery in underlying performance is already showing up in the numbers.

For investors who sold on fear rather than on evidence, FY27 looks more promising for this ASX healthcare stock.

Pro Medicus: AI is strengthening the moat rather than eroding it

Pro Medicus Ltd (ASX: PME) is the most counter-intuitive of the three, because the fear that drove its sell-off, that AI would displace radiology software, has been directly rebutted by the company's own actions.

Recently, Pro Medicus signed a binding agreement with EchoIQ Ltd (ASX: EIQ) to expand its AI cardiology offering. The company invested up to $20 million to acquire and resell AI-powered cardiac diagnostic technology to its existing hospital network. 

That move positions Pro Medicus as the platform through which AI cardiology tools reach hospitals, rather than the platform being displaced by them. 

Furthermore, Pro Medicus has demonstrated what that moat actually looks like in commercial terms.

The Allegheny Health Network contract was renewed at higher fees than before, and the Trinity Health contract runs to $330 million over ten years. As a result, five-year contracted revenue now sits at approximately $1.1 billion.

James Gerrish from Shaw and Partners has said Pro Medicus is one of the few names where AI is more likely to enhance the moat than erode it. The analyst has described the company as the most defensively positioned software business on the ASX.

Foolish Takeaway for ASX healthcare stocks

CSL, ResMed, and Pro Medicus have each been sold down for different reasons, and each has a different FY27 recovery story.

CSL's recovery depends on management delivering on the Behring margin improvement and earnings trajectory.

ResMed's recovery depends on the real-world GLP-1 data continuing to disappoint the bears.

Pro Medicus' recovery depends on investors accepting that AI is making its platform more valuable rather than less.

All three are looking quite cheap at the moment and deserve investors' attention heading into FY27. 

The post Top 3 ASX healthcare stocks to buy today appeared first on The Motley Fool Australia.

The best ASX growth shares are businesses that can keep expanding their markets, deepening customer relationships, and increasing earnings over many years.

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

Life360 Inc (ASX: 360)

Life360 could be an ASX growth share to buy for long-term wealth creation.

The company's app helps families stay connected through location sharing, safety alerts, driving reports, crash detection, and emergency support features.

That may sound like a simple consumer app, but the more interesting point is how embedded it can become in family life.

Parents use it to keep track of teenagers. Families use it to coordinate school runs, travel, late-night arrivals, and daily routines. Once a product becomes part of household behaviour, it can be difficult to replace.

Life360 also has a large freemium user base, giving it a pathway to convert more users into paying subscribers over time.

The company still needs to keep proving that it can grow profitably, expand average revenue per user, and build trust around privacy. But if it keeps turning everyday family safety into a paid digital service, it could have a very long runway ahead.

Light & Wonder Inc (ASX: LNW)

Light & Wonder is another ASX growth share with a global opportunity.

The company provides gaming content, technology, and systems for casinos, digital gaming operators, and social casino platforms.

While the US is its main market, a successful gaming title can travel across venues, jurisdictions, and digital channels. That gives Light & Wonder multiple ways to monetise its intellectual property rather than relying on one market alone.

The company also has exposure to the continued shift toward digital gaming. As more operators invest in online content and omnichannel experiences, Light & Wonder can use its game library and development capability across both physical and digital environments.

Gaming is a competitive industry and regulatory settings can vary by market. But a business with strong content, distribution, and technology can still create significant value if it keeps producing games that operators and players want.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is one of the ASX's highest-quality growth shares.

Its Visage imaging platform helps hospitals and radiology groups view, manage, and distribute medical images quickly across large healthcare networks.

The business sits in a demanding part of healthcare, where speed, reliability, data handling, and workflow can directly affect how clinicians do their jobs. That gives Pro Medicus a strong market position.

Medical imaging volumes continue to rise, and healthcare providers need systems that can handle large files, integrate with complex environments, and support specialists working across different sites.

Pro Medicus has also shown that it can win major contracts in the United States, where large health systems have the scale to support meaningful long-term growth. I believe it can continue this trend long into the future given the quality of its offering.

The post 3 fantastic ASX growth shares to buy to build real wealth appeared first on The Motley Fool Australia.

Shares in Pro Medicus Ltd (ASX: PME) have surged around 48%, while Megaport Ltd (ASX: MP1) has rallied approximately 44%.

After such explosive gains, investors might be wondering whether there's any upside left.

Here's what continues to drive both companies.

Pro Medicus: significant AI cardiology deal

Pro Medicus develops imaging software used by hospitals and healthcare providers to store, view, and analyse medical scans. Its flagship Visage platform has become a global leader in enterprise imaging, particularly across the US.

While the price of the ASX growth share has rebounded sharply over the past month, it's still down around 29% over the past year.

Importantly, the underlying business never really missed a beat. Pro Medicus continues to generate some of the highest operating profit (EBIT) margins on the ASX. That means much of every new dollar of revenue flows straight through to earnings, giving the company significant flexibility to invest, grow dividends, or strengthen its balance sheet.

Contract wins also continue to pile up. The company has consistently secured new hospital customers while renewing existing agreements, providing strong visibility over future revenue.

Management is also looking beyond radiology. Recently, Pro Medicus announced it is exploring a partnership with EchoIQ Ltd (ASX: EIQ) to bring AI-powered cardiovascular diagnostic technology to its customers. If successful, cardiology could become another significant growth avenue.

Analysts remain overwhelmingly positive. According to CMC Invest, nine of the 10 analysts covering the stock currently rate it a buy, with the remaining analyst recommending a hold.

The average price target sits at $203.15, implying modest upside of around 3%. However, the most bullish analyst believes the shares could climb to $245.13, representing upside of approximately 24%.

Megaport: AI-related contract wins

The rally of this $5 billion ASX growth share has been even more remarkable. The network connectivity specialist is up around 44% over the past month, 79% year to date, and more than 220% from its three-year low reached earlier this year.

The latest surge has been driven by a combination of improving fundamentals and growing investor enthusiasm for artificial intelligence infrastructure.

One major catalyst has been a series of reported AI-related contract wins worth approximately US$275 million, strengthening confidence in Megaport's long-term growth pipeline.

Recurring revenue also continues to impress. At its first-half FY26 result, the company reported annualised recurring revenue of $338 million, up an impressive 49% from a year earlier. That level of recurring growth provides investors with increasing confidence in future earnings.

Broker views, however, are becoming more divided. Macquarie Group Ltd (ASX: MQG) remains one of the biggest supporters of the stock, maintaining its buy rating and $27.80 price target. That implies around 37% upside from current levels.

By contrast, Morgans recently downgraded the shares from buy to accumulate following the sharp rally. Its $21 target suggests only limited gains from here.

The post These ASX growth shares are up 40%. Can they keep climbing? appeared first on The Motley Fool Australia.

As the above chart shows, it's actually down 40% since that July 2025 peak. So, after significant volatility over the past year, is it good value or overvalued?

Let's take a look at what analysts think of the business at its current valuation.

Expert views on Pro Medicus shares

According to CMC Invest, there have been 10 analyst ratings on the business. Of those ratings, nine were buys, and one was a hold.

Clearly, investors are feeling very positive about the business right now, though it has already regained some of its lost ground after rising more than 40% over the last month.

Experts still think the Pro Medicus share price could rise from here. The average price target of those 10 ratings is $203.15. That suggests it could rise more than 7% in the next year.

The most optimistic price target is $245.13, suggesting it could rise another 30% from where it is at the time of writing.

Why is the Australian stock still attractive?

The business has continued to deliver excellent financials for shareholders, which is the only thing Pro Medicus can truly control.

Its operating profit (EBIT) remains one of the highest on the ASX. This means much of the new revenue it's winning is turning directly into usable EBIT that can help grow the bottom line, pay larger dividends, and/or strengthen the balance sheet.

The company continues to win new and renew existing contracts from valuable clients, giving it tailwinds for shareholder returns.

Additionally, Pro Medicus continues to strive to offer the best service, which is why it recently announced it's exploring a partnership with EchoIQ Ltd (ASX: EIQ) to provide Pro Medicus customers with AI-powered cardiovascular diagnostic technology. Cardiology could be a great growth avenue for Pro Medicus.

The company's earnings per share (EPS) is expected to continue rising at a strong pace. According to Commsec's forecast, the business is projected to grow EPS by around 30% in FY27 and by another 25% in FY28.

Can any other very profitable S&P/ASX 200 Index (ASX: XJO) share grow EPS as much in percentage terms between FY26 and FY28? Time will tell, but I think the Australian stock has a very promising future.

The post Up 230% in 5 years! Is this still a top Australian stock to buy? appeared first on The Motley Fool Australia.

A $500 investment needs simplicity. A $5,000 investment gives more room for choice. A $50,000 investment allows investors to think more carefully about diversification, income, growth, and risk.

Here is how investors could think about putting each amount to work.

How to invest $500 in ASX shares

With $500, the most important thing is getting started sensibly.

A smaller investment does not leave much room to build a portfolio of individual shares. Brokerage costs can also impact you more when the investment amount is modest.

That is why an ASX exchange traded fund (ETF) could be a useful starting point.

A fund such as the iShares S&P 500 ETF (ASX: IVV) gives investors exposure to 500 of the largest listed companies in the United States through one trade.

That includes businesses across technology, healthcare, financial services, consumer goods, communication services, and industrials.

This can be a simple way to gain instant diversification and global exposure. It also removes the pressure of trying to choose the perfect first share.

The first $500 may not transform a portfolio overnight, but it can create momentum. Once the first investment is made, investors can add more over time and allow compounding to do more of the work.

How to invest $5,000

With $5,000, investors have more flexibility.

One option would be to split the money between a broad ETF and one or two high-quality ASX shares.

For example, an investor could use part of the money for the IVV ETF or the Vanguard MSCI Index International Shares ETF (ASX: VGS), then put the remainder into a quality ASX blue chip.

Wesfarmers Ltd (ASX: WES) could be one option. The company owns Bunnings, Kmart, Officeworks, and industrial businesses, giving investors exposure to a collection of strong brands and cash-generating assets.

Another possibility is Goodman Group (ASX: GMG), which has exposure to logistics property, industrial assets, and data centres across key global markets.

The advantage of this approach is balance. The ETF provides diversification, while the individual shares allow investors to start building positions in companies they believe can compound over time.

At this level, investors should still avoid spreading the money too thinly. Owning too many small positions can make the portfolio harder to follow and may reduce the impact of the best ideas.

How to invest $50,000

A $50,000 investment opens up more choices. At this size, investors can build a more complete ASX portfolio with a mix of ETFs, growth shares, dividend shares, and defensive holdings.

A possible structure could include a core allocation to broad ETFs such as the IVV, VGS, or the Vanguard Australian Shares Index ETF (ASX: VAS). These funds can provide exposure to large baskets of local and international companies.

From there, investors could add selected ASX shares.

For growth, companies such as Xero Ltd (ASX: XRO), Pro Medicus Ltd (ASX: PME), and Goodman could be worth considering. These businesses give exposure to cloud software, medical imaging technology, and global property infrastructure.

For income, investors may look at shares such as Transurban Group (ASX: TCL), APA Group (ASX: APA), or Rural Funds Group (ASX: RFF). These offer exposure to toll roads, energy infrastructure, and agricultural property assets.

With $50,000, risk management becomes more important. Investors can spread money across different sectors, avoid relying too heavily on one company, and keep some cash available for future opportunities.

Build the habit

The best approach will depend on an investor's goals, time horizon, risk tolerance, and need for income.

But the broad idea is quite simple. Start with diversification when the investment amount is small, add quality shares as the portfolio grows, and build a stronger mix of growth, income, and defensive exposure once the capital base becomes larger.

The post How to invest $500, $5,000, and $50,000 on the ASX appeared first on The Motley Fool Australia.