Wesfarmers Ltd (ASX: WES), Xero Ltd (ASX: XRO), and Aristocrat Leisure Ltd (ASX: ALL) are all very different businesses, but I think each could be worth buying this month, and I'm not alone.

Analysts from Morgans have spoken positively about all three recently. 

Wesfarmers shares

Wesfarmers is not a stock I would usually expect to look obviously cheap.

The market recognises this is a high-quality business and often prices the company accordingly. But after a weaker period for the share price, I think the valuation looks more reasonable than it did a year ago.

Morgans notes that Wesfarmers shares have fallen 9% over the past 12 months and 7% over the past six months. The broker says the stock is now trading on 26.5 times forecast FY27 earnings, compared with a peak one-year forward P/E multiple of around 37 times in August 2025.

That is still a premium valuation, but I think it is more digestible for a business of this quality.

What appeals to me is Wesfarmers' ability to keep improving its businesses over time. This is not just about owning strong retail brands. It is about the group's culture of discipline, cost control, operational improvement, and reinvestment.

Morgans highlights Wesfarmers' healthy balance sheet, proven management team, and strong value propositions across its retail divisions. It also sees a possible medium-term earnings boost from better lithium prices.

The broker has recently upgraded the stock to accumulate and lifted its target price slightly to $81.10. I would go a step further and call Wesfarmers a buy for long-term investors.

Xero shares

Xero is another ASX 200 share I think looks attractive in June.

The small business software company recently delivered better-than-expected FY26 results and an FY27 outlook, according to Morgans. The broker also notes that earnings momentum continues to improve relative to consensus expectations.

I think the key attraction is that Xero is becoming more valuable to small businesses over time.

Accounting remains the foundation, but the opportunity is broader. Xero can help with invoicing, payments, payroll, tax, reporting, cash flow, and increasingly automated financial tasks.

The market has been nervous about artificial intelligence (AI) disruption. I understand that concern. AI could change how customers use software and what they are willing to pay for.

But I think Xero is better placed than many to turn AI into an advantage. If it can make its platform faster, simpler, and more useful for business owners, AI could deepen customer reliance rather than weaken it.

Morgans also points out that management was confident enough to announce a buyback and hint at potential capital management in FY28. The broker has retained its buy rating and $111 target price.

I agree with the positive view. Xero still has execution risk, particularly around the US and AI monetisation, but I think the long-term opportunity remains excellent.

Aristocrat Leisure shares

The third ASX 200 share I would buy in June is Aristocrat Leisure.

This is one of the ASX's best global growth businesses in my view.

Aristocrat has built a powerful position in gaming content, cabinets, digital gaming, and interactive entertainment. What I like most is that its success is not built on one product cycle alone. It has a deep content engine, a global customer base, and the balance sheet strength to invest through changing conditions.

Morgans was positive on the company's first-half result, noting that gaming was the clear standout. The broker highlighted strong outright sales, continued demand for the Baron cabinet, and solid leased additions.

There were weaker areas in Product Madness and Interactive, but Morgans still lifted its earnings per share forecasts and increased its target price to $67. It retained its buy rating.

I think financial strength is important because it gives Aristocrat the room to buy back shares, invest in content, pursue acquisitions, and continue strengthening the business.

Foolish Takeaway

What I like about this group is that the investment cases are not built on one narrow theme.

Each business has a different way to create value, and each has enough quality to remain interesting beyond June.

Morgans is positive on all three, and while I am slightly more bullish on Wesfarmers than the broker's accumulate rating, I think the broader message is clear: these are ASX 200 shares worth considering while valuations and sentiment still look reasonable.

The post Are Wesfarmers, Xero and this ASX 200 share buys in June? appeared first on The Motley Fool Australia.

Well, brokers are bullish on the three ASX growth shares below, which could make them worth a closer look this month. Here's what you need to know:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville.

Breville has turned kitchen appliances into a global premium brand. That may sound simple, but it is not easy to do. Consumers can buy cheap alternatives in almost every category Breville operates in, yet the company has built a reputation that allows it to compete on design, quality, and performance.

Its strength is not just one product. Coffee machines, ovens, food preparation, and other categories give Breville multiple ways to grow across different markets.

The company is also still early in its global opportunity. It has already proven that its brand can travel, but there remains room to deepen its presence in North America, Europe, and other regions.

Morgans is bullish on the company. It recently put a buy rating and $36.75 price target on its shares.

NextDC Ltd (ASX: NXT)

Another ASX growth share that could be worth buying is NextDC.

NextDC owns and develops data centres. These are becoming a critical part of the modern economy as companies need more computing power, storage, connectivity, and access to cloud platforms.

The next wave of demand could be even more powerful. Artificial intelligence (AI) is increasing the need for high-performance digital infrastructure, and many organisations will need more capacity to manage the workloads that come with it.

NextDC is investing heavily to meet this demand. That can weigh on near-term earnings and cash flow, but it also gives the company a larger platform to grow from over the next decade.

Ord Minnett is a fan of NextDC. It has a buy rating and $21.50 price target on its shares.

Xero Ltd (ASX: XRO)

A third ASX growth share for investors to consider is Xero.

Xero has spent years building a platform that small businesses rely on to manage their finances. But the long-term opportunity is not just accounting software.

Small businesses often have fragmented systems for invoicing, payroll, payments, reporting, tax, and adviser communication. Xero's opportunity is to bring more of that work into one connected platform.

That is important because time is one of the most valuable resources for small business owners. Software that removes admin tasks, improves visibility, and helps businesses make better decisions can become very sticky.

The company also has a large international runway. Its growth in markets such as the United Kingdom and North America could be important if it continues increasing customer numbers and revenue per user.

Macquarie is very bullish and has an outperform rating and $235.80 price target on Xero's shares. This is almost triple its current share price.

The post 3 amazing ASX growth shares to buy with $15,000 appeared first on The Motley Fool Australia.

So far, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has recovered by an impressive 26% in just over two months.

By comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) has lifted 2.5% over the same time period.

Fears over how artificial intelligence (AI) may impact software-as-a-service (SaaS) businesses, in particular, contributed to the 48% rout.

However, James Gerrish from Shaw and Partners reckons software stocks have now bottomed, and there are good buys to be had.

In his regular Market Matters newsletter this week, Gerrish named three ASX 200 tech shares that his team is "long and bullish" on.

He says these stocks are well-placed for growth in 1H FY27, and all three are held in the team's Active Growth Portfolio.

Let's find out why.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is $40.12, down 3% today and down 41% in the calendar year to date (YTD).

Since the ASX 200 tech sector turned a corner on 31 March, Wisetech shares have underperformed, lifting just 10%.

The Market Matters team sees 30% to 40% upside over the next 12 months for Wisetech shares.

Gerrish explained:

… we view WiseTech as more likely to be an AI beneficiary than a victim.

Its enormous logistics dataset, entrenched customer relationships and central position within global supply chains provide a strong foundation for embedding AI into the platform, potentially improving productivity, automation and customer outcomes while further strengthening its competitive moat.

The company has already said AI will allow it to reduce its workforce by around 30%, which, if executed well, would have a meaningful positive impact on margins and the bottom line.

With the stock now trading around 60% below its five-year valuation average — albeit from very elevated growth multiples — the risk/reward looks increasingly appealing in our opinion.

Xero Ltd (ASX: XRO)

The Xero share price is $80.96, down 3.5% today and down 28% YTD.

Since 31 March, Xero shares have recovered 15%. Like Wisetech, Xero is underperforming its ASX 200 tech sector peers for now.

Gerrish commented:

Despite the launch of its premium Ultra tier, the rollout of Xero's AI-powered assistant and continued momentum in the US, the market remained focused on disruption risk, particularly following Anthropic's unveiling of AI tools aimed at small businesses.

The bear case is that increasingly capable AI agents could automate many of the bookkeeping, reconciliation and administrative tasks that have traditionally underpinned accounting software.

The bull case is that Xero's competitive advantage extends far beyond the user interface, encompassing proprietary transaction data, deep banking integrations, regulatory compliance capabilities and thousands of bank feeds that would be difficult for any AI-native challenger to replicate at scale.

With Xero now trading ~65% below its 5-year valuation, albeit extremely high in the first place, we like the risk/reward ~$80.

We can initially see ~20% upside for XRO from the $80 area…

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price is $32.35, down 2.2% on Thursday and up 16% YTD.

Since the ASX 200 tech sector pivoted on 31 March, TechnologyOne shares have lifted 22%.

Gerrish said:

We regard TNE as one of the best-positioned local software names to capitalise on AI.

Its strength lies in deep domain expertise across local government, higher education, healthcare and corporate services — specialised sectors where AI can enhance productivity, but where generic models often struggle with regulatory complexity, data security and operational nuance. Management has also been proactive in embedding AI across the product suite.

The core attraction remains TechnologyOne's business model. Its software supports mission-critical functions including finance, payroll, human resources, assets and student administration, creating high switching costs and strong revenue visibility.

… TNE's entrenched customer base, sector-specific expertise and recurring revenue model position it as one of the few ASX software companies whose competitive advantage may actually strengthen as AI adoption accelerates. The market clearly agrees for now.

We like the risk/reward around ~$32, initially seeing 20–25% upside from current levels.

The post 3 ASX 200 tech shares to buy now: expert appeared first on The Motley Fool Australia.

The ASX 200 spent the entire session in red territory, and ended up closing with a 0.057% loss. That drags the index down to 8,724.4 points.

This rather uninspiring Tuesday session for the local markets comes after a more positive start to the American trading week up on the US markets last night.

The Dow Jones Industrial Average Index (DJX: .DJI) had a wild ride, but managed to pull off a win, gaining 0.091%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was a little more decisive, rising 0.42%.

But let's return to the ASX boards now and take stock of what the different ASX sectors were up to amid today's challenging trading conditions.

Winners and losers

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

At the time of writing, the ASX 200 is down 0.49% to 8,686 points.

The index has moved between early weakness and selective buying, showing that the market is still struggling for direction.

The result is a choppy session where a few strong pockets are being offset by wider weakness across the market.

Let's take a closer look at what is moving the ASX 200 today.

Retail stocks feel the wage pressure

Retail stocks are under pressure today after the Fair Work Commission handed down its latest wage decision.

Minimum award wages will increase by 4.75% from 1 July, while the national minimum wage will rise to $26.44 an hour, or $1,004.90 a week.

The decision affects around 2.8 million workers, so it is good news for Australians dealing with higher living costs.

The share market, however, is focused on what the wage rise means for company costs.

Retailers are already dealing with cautious shoppers and rising costs, so today's wage decision adds another cost for investors to factor in.

Businesses with large store networks and distribution teams are the ones most exposed, because even small cost increases can become significant across the group.

That concern appears to be weighing on several consumer stocks today.

Woolworths Group Ltd (ASX: WOW) shares are down 1.6% to $34.50, while Coles Group Ltd (ASX: COL) shares have slipped 0.7% to $21.55.

Wesfarmers Ltd (ASX: WES) is also weaker, with its shares down 1% to $78.89. JB Hi-Fi Ltd (ASX: JBH) has fallen 4% to $72.09, while Harvey Norman Holdings Ltd (ASX: HVN) is also down 1% to $4.54.

Economic data adds another concern

There is also some caution around the broader economy after the latest trade numbers.

ABS data showed Australia recorded a seasonally adjusted goods trade deficit of $1.84 billion in March.

It was the first monthly goods trade deficit since December 2017.

Imports jumped 14.1%, helped by a surge in data processing equipment, while exports fell 2.7%.

The Australian reported that Australia's broader net trade position is expected to weigh on March quarter GDP, with imports of data centre equipment playing a major role.

At the same time, today's wage decision has kept inflation and interest rates in focus.

Reuters reported some economists expect the wage rise could add inflation pressure, giving the RBA another issue to weigh closely.

Tech keeps the market from looking worse

Tech shares are helping limit the damage today, even though the broader ASX 200 is still trading lower.

Xero Ltd (ASX: XRO) shares are up 6.25% to $86.01, while WiseTech Global Ltd (ASX: WTC) shares are 5.98% higher at $41.49.

Those gains are helping offset some of the weakness elsewhere across the market.

The buying follows another strong session for AI-linked stocks in the US, where Nvidia shares rose after unveiling its latest AI-focused products.

That has flowed through to parts of the local tech sector, even though the wider market is still struggling.

The S&P/ASX 200 Resources Index (ASX: XJR) is also lending some support, with the sector up 0.58%.

Northern Star Resources Ltd (ASX: NST) is one of the standout moves, with its shares up 13.37% to $20.99.

The gold miner is rallying after reports that Elliott Investment Management has built a stake and is pushing for change.

The post Why's the ASX 200 falling today despite another tech rally? appeared first on The Motley Fool Australia.

This follows a 3.7% decline over the prior two months and rising 2% year on year.

That is not a dramatic number on its own.

But in the context of a labour market that has been softening since mid-2022, it represents a potential inflection point.

Senior economist Callam Pickering noted that Victoria and New South Wales recorded the strongest growth for the month, and that Queensland and Western Australia have been the two best performers over the past year.

Three ASX shares in particular stand to benefit from an improving jobs market, each through a different mechanism.

Seek Ltd (ASX: SEK)

The most direct beneficiary of rising job ads is Seek.

Australia's dominant online employment marketplace earns revenue primarily from employers paying to advertise job vacancies.

When ad volumes fall, Seek's revenue growth slows. When they rise, the trend goes in the other direction.

Seek shares are down approximately 47% year to date in 2026, battered by the prolonged decline in ad volumes since mid-2022.

Despite those volume headwinds, Seek's first-half FY 2026 result demonstrated resilience.

Revenue grew 21% to a record $765 million, driven by AI-enabled product innovations that boosted pricing and yield even as raw volumes softened.

Seek's placement share in the Australian recruitment market stands at 4.9 times its nearest competitor, a dominance that gives the company significant pricing power regardless of short-term volume fluctuations.

Today's data, combined with a second consecutive month of trend improvement per SEEK's own May employment report, is the first tangible evidence that the ad volume trough may be approaching.

Citi carries a buy rating on Seek with a price target of $26.

This would imply significant upside from current levels. Citi describes the stock as meaningfully undervalued given its dominant market position.

Xero Ltd (ASX: XRO)

Xero benefits from a rising labour market through a less obvious but equally important channel.

When Australian businesses hire more staff, they need payroll software to manage those employees.

Xero is the payroll and accounting platform of choice for the vast majority of Australian small businesses.

Every new employee added to an Australian small business payroll is a potential trigger for an existing Xero customer to upgrade their subscription tier or add payroll module functionality.

That dynamic makes Xero's revenue growth positively correlated with Australian employment activity in a way that few investors fully appreciate.

Xero shares are down 56% over the past twelve months, battered by a combination of sector-wide software selling and concerns about Melio acquisition costs.

Nevertheless, the underlying business continues to deliver.

In FY 2026, Xero reported operating revenue of $2.75 billion, up 31% on FY 2025, with adjusted EBITDA growing 18% to $757.4 million.

The board also authorised a $550 million share buyback for FY 2027, a clear signal of management confidence in the business at current prices.

For patient investors, the combination of a recovering labour market, a dominant small business platform, and a buyback-supported share price makes Xero one of the more interesting beaten-down technology stocks on the ASX today.

Peoplein Ltd (ASX: PPE)

For investors prepared to accept higher risk in exchange for a more direct earnings link to the jobs market, Peoplein offers the most leveraged exposure of the three.

Formerly known as People Infrastructure, Peoplein is an ASX-listed workforce solutions company operating across healthcare and community, professional services, and industrial and specialist services.

The company directly places contract workers with clients, meaning its revenue rises and falls with employment activity.

Hospitality, education and training, and nursing were among the sectors contributing the most to job advertisement growth in May. Peoplein operates directly across these three verticals, with its 26 brands across Australia and New Zealand.

Foolish Takeaway

It may be too early to say whether improving job ads data signals a full labour market recovery.

Despite the uptick in May, figures remained 2% below the recent February peak, and ANZ economist Madeline Dunk expects the economy to slow over the coming months, with the unemployment rate gradually rising.

However, for Seek, Xero, and Peoplein, even a stabilisation in labour market conditions removes a meaningful headwind that has weighed on each business throughout 2026.

This week's data is the first positive macro signal these three ASX shares have received in some time.

The post Job ads rose for the first time in three months. Here is why that is good news for these ASX shares appeared first on The Motley Fool Australia.

We're going to look at two of the most highly rated businesses on the ASX right now. It's interesting when one analyst likes a business, but its an even better sign when numerous experts think a business is a buy. Of course, forecasts are not guaranteed.

For me, I like how both of the businesses are among the leaders in the local market, with successful overseas expansion that could suggest a significant growth runway in the long-term.

Xero Ltd (ASX: XRO)

Xero is one of the leading ASX tech shares with its accounting, business analysis and taxation reporting software.

The company has carved out a significant market share in New Zealand and Australia. It's also growing in places like the UK, South Africa, Singapore, the US and so on. It has an extremely loyal subscriber base, which gives the company the confidence to hike its subscription price.

A rising average revenue per user (ARPU) helps a number of metrics including annualised monthly recurring revenue (AMRR), the total lifetime value (LTV) of subscribers and obviously operating revenue.

In the FY26 result, Xero reported that its total number of customers rose 11% to 4.9 million, ARPU grew 23% to $55.44, AMRR grew 37% to $3.27 billion and LTV increased by 17% to $21 billion. Operating revenue increased by 31% to $2.75 billion.

The ASX share's net profit decreased in FY26, but I think it will rise rapidly for the foreseeable future now that the Melio acquisition has been concluded and integrated.

According to CMC Invest, there have been nine different analyst ratings on the business in the last three months, with eight of them being a buy. The average price target of those nine ratings is $126.57, which at the time of writing suggests a possible rise of close to 70% in the next year.

Guzman Y Gomez (ASX: GYG)

GYG is a Mexican food business, which has proven a big hit in Australia to date. It already has well over 200 locations in Australia and it's aiming for over 1,000 locations within the next 20 years.

On top of that, the business has a presence in both Singapore and Japan. It now has 24 restaurants in Singapore and it had five locations in Japan at the end of the FY26 third quarter.

The FY26 third-quarter showcased its excellent growth rate, with network sales growth of around 20% in Australia and growth of 15% in Asia.

It recently took the decision to end its growth efforts in the US because of the expected cost of reaching good profitability for that market. But, this should help the company's bottom line for the foreseeable future.

The ASX share expects the Australia and Asia division to generate $85 million of underlying operating profit (EBITDA), representing 29% growth year over year.

According to the forecast on CMC Invest, GYG could generate 64.2 cents of earnings per share (EPS) in FY28 putting it at just over 30x FY28's estimated earnings.

On CMC Invest, there have been 10 analyst ratings on the business within the last three months, with eight of those being a buy. The average price target of those 10 ratings is $24.33, suggesting a possible rise of 23% over the next year.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

After starting the week's trading at an opening loss this morning, the ASX 200 spent most of the day bouncing around, but ended up closing down 0.026%. That leaves the index at 8,729.4 points.

This cold-shower start to the trading week for Australian investors follows a rosier finish to the American week on Friday night (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) was in decent form, rising a confident 0.72%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) wasn't quite as enthusiastic, but still managed a 0.2% gain.

But let's get back to this week and the local markets now, and check out how the various ASX sectors traversed today's tough trading conditions.

Winners and losers

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

I think this could make it a good time to look at some of the sector's best names.

Concerns about artificial intelligence (AI) disruption and the so-called SaaSpocalypse have weighed on sentiment recently. But I think the strongest ASX tech companies can use AI to improve their products, rather than be replaced by it.

With several quality ASX tech shares still down heavily from their highs, I think these three could be worth buying now.

WiseTech Global Ltd (ASX: WTC)

WiseTech Global has been one of the most heavily sold-off ASX tech shares, but I think the long-term business remains highly attractive.

The company's CargoWise platform is used by logistics providers and freight forwarders to manage global trade. That is a complicated area involving shipments, customs, compliance, documentation, warehousing, and transport networks.

This is the sort of market where software can be extremely valuable.

I do not see AI as a simple threat here. In fact, I think it could make WiseTech's platform more useful over time. Logistics still involves a lot of manual work, repetitive data entry, document checks, and exception handling.

If AI can help reduce those pain points, customers may become even more reliant on powerful workflow software.

Xero Ltd (ASX: XRO)

Xero is another ASX tech share I would buy into the rebound.

The company has a strong position in small business accounting software, but I think the bigger opportunity is to become more central to how small businesses manage their finances.

That means more than bookkeeping. It can include invoicing, payroll, payments, tax, reporting, cash flow tools, and better financial insights.

Small business owners do not want more admin. They want software that helps them save time, understand their numbers, and make better decisions.

This is why I think AI could become an opportunity for Xero rather than just a risk. If the company can use AI to automate basic tasks, surface useful insights, and make the platform easier to use, it could strengthen the customer proposition.

The US opportunity also remains important. It will not be easy, but Xero does not need to win the whole market to create meaningful long-term value.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is arguably the steadier name in this group.

It provides enterprise software to governments, councils, universities, and large organisations. These customers need reliable systems for finance, payroll, assets, student administration, and other important functions.

I like that because the software is not a nice-to-have extra. It supports core operations.

TechnologyOne has built a strong record of execution, recurring revenue, and customer retention. It also has a long-term growth opportunity in the UK, where it is trying to repeat some of the success it has achieved in Australia.

The valuation can be demanding at times, so investors need to be comfortable paying for quality. But I think this is one of the ASX tech shares best placed to keep compounding over time.

Foolish takeaway

I do not think the AI debate is going away. Investors will keep questioning which software companies are threatened and which ones can become stronger.

That is why I prefer ASX tech shares with important customer workflows, proven products, and room to keep improving their platforms.

This rebound may not move in a straight line. But after the heavy selling across parts of the sector, I think these three ASX tech stocks are worth buying before confidence returns more fully.

The post 3 ASX tech shares I'd buy as they rebound from the AI selloff appeared first on The Motley Fool Australia.

Unfortunately not all stocks ended the month on a high, some oversold shares are now trading for rock-bottom prices, and they're too cheap to ignore this month.

Life360 Inc (ASX: 360)

Life360 shares tumbled just over 4% in May, closing the month at $19.33 a piece. 

At the time of writing, the US-based software development company's shares are now around 65% below an all-time high recorded in October last year, and 40% lower for the year-to-date.

The tech stock has been caught up amid an ongoing tech-sector-wide sell-off.

Investors sold up their tech shares amid a growing fear that companies' core services could be replaced by AI. At the same time, there has been some concern that tech sector share prices, including Life360, had become overpriced.

The tech sector suffered its latest sector-wide selloff in mid-May, with tech shares down across the board.

But I think the oversold ASX shares show great potential for growth.

The company reported a 38% increase in its total revenue in its latest quarterly results in mid-May. This was primarily driven by a 32% increase in subscription revenue and 36% increase in core subscription revenue.

Life360 upgraded its FY26 revenue guidance to US$650 million to US$685 million, up from previous guidance of US$640 million to US$680 million. This implies year-on-year growth of 33% to 40%.

Life360 also raised its adjusted EBITDA guidance to a range of US$130 million to US$140 million, up from US$128 million to US$138 million previously. This implies an expected margin of around 20%.

It's clear the business is performing well and is profitable. I think that once sentiment catches up its share price could climb higher quickly. 

At the time of writing, brokers rate the ASX shares as a strong buy. The also tip a potential upside of 75% to $33.73.

Xero Ltd (ASX: XRO)

Xero shares fell just over 6% throughout May. The oversold ASX shares are now down 33% for the year-to-date and 61% lower than an all-time high recorded in June last year.

The tech stock was also smashed by the latest tech-sector wide sell-off.

But I think the shares are now way oversold and trading well below fair value.

Xero shares are a great option for investors looking for an attractive long-term investment. 

The company has a sticky subscription revenue, which means its customers are likely to keep paying for its services and products over a long time. This makes Xero's revenue predictable. 

At the same time, the ASX tech stock still has a relatively small position in the market, which means there is potential to unlock a large amount of growth. 

Global growth opportunities include expansion in the UK and US, as well as payroll and workflow automation offerings. Xero is also actively expanding its presence and its product suite. 

The company's latest FY26 result was impressive too. In mid-May, Xero reported a 31% hike in operating revenue in mid-May, and its adjusted EBITDA is up 18%.

At the time of writing, brokers rate the ASX shares as a strong buy. They tip a potential 88% upside to $141.56 a piece.

The post Are these 2 oversold ASX shares too cheap to ignore in June? appeared first on The Motley Fool Australia.

The ASX tech stock has faced several major headwinds over the past 12 months. 

The falling share price is mostly the result of a sector-side sell off of technology stocks. This followed rising concerns that AI could disrupt traditional software models. 

In late-2025 and early-2026 many investors were spooked by the idea that smarter, cheaper tools could reduce the need for subscription platforms like Xero. Sentiment for tech shares quickly turned south. 

At the same time, a sharp increase in the value of some ASX tech shares in 2025, including Xero, also sparked concerns that tech companies were overvalued and overdue a price correction. 

Where are Xero shares trading now?

At the time of writing, Xero shares are trading at $74.16 a piece.

For the year to date, the shares are now around 34% lower and they're 60% below the trading value in late May last year.

Are Xero shares now too cheap to pass up?

Analysts are incredibly bullish on Xero shares, with widespread anticipation that we'll see some significant upside over the next 12 months.  

Market Index shows brokers have a strong buy rating on the shares. They tip a 87% upside to $141.56 over the next 12 months.

TradingView data shows something similar. Out of 15 analysts, 14 have a buy or strong buy rating and one has a hold rating. They tip a potential average upside of up to 76% to $130.81 a piece over the next 12 months.

However, some analysts think the increase could be far steeper. The maximum $236.45 target price implies that Xero shares have the potential to soar 218% higher. It's also an increase from a maximum $229.49 target price the analysts had a month ago.

What is expected to drive the tech shares higher?

I see Xero as an attractive long-term investment.

The company has a sticky subscription revenue, which means its customers are likely to keep paying for its services and products over a long time. Switching to an alternative accounting, invoicing, and payroll system would be time-consuming for businesses, so many customers could easily stay subscribed for years. 

This makes Xero's revenue more predictable. 

At the same time, the company is still a relatively small market player. This means there is a huge amount of potential future growth globally. 

These growth opportunities include expansion in the UK and US, as well as payroll and workflow automation offerings. Xero is also actively expanding its presence and its product suite. 

The company's latest FY26 result shows the company is growing, too. It posted a 31% hike in operating revenue in mid-May, and its adjusted EBITDA is up 18%.

The post Is it time to get greedy with Xero shares? appeared first on The Motley Fool Australia.

In fact, some of the market's highest-quality names have been sold down heavily over the past 12 months, potentially creating a buying opportunity for investors.

With that in mind, here are three oversold ASX 200 shares that could be in the buy zone in June:

Cochlear Ltd (ASX: COH)

The first ASX 200 share to look at is Cochlear.

The hearing solutions leader's shares have fallen more than 60% over the past 12 months following a disappointing performance in FY 2026.

This is a big move for a company with a long history of innovation, global market leadership, and exposure to a large medical need. Cochlear's products can make a meaningful difference to patients with severe hearing loss, and demand for hearing solutions should continue to grow as populations age.

For patient investors, this could be a chance to look again at a high-quality healthcare business after a major reset.

CSL Ltd (ASX: CSL)

Another ASX 200 share that looks oversold is CSL. The biotherapeutics giant has also fallen around 60% over the past 12 months, which is a remarkable decline for one of the ASX's traditional blue-chip shares.

CSL has faced a difficult period as investors reassessed both its growth outlook and valuation. Weak earnings updates, restructuring plans, and softer medium-term guidance all weighed heavily on sentiment, particularly after management lowered expectations around growth in key areas such as flu vaccines and China albumin sales.

Despite these challenges, CSL's core business remains exposed to important areas of healthcare, including immunology, haematology, vaccines, and iron deficiency. Healthcare demand is not driven by short-term consumer sentiment. That gives CSL a more defensive foundation than many cyclical businesses.

If management can restore confidence in the earnings outlook, this fallen giant could have plenty of recovery potential.

Xero Ltd (ASX: XRO)

A final ASX 200 share to consider is Xero. The cloud accounting software provider has fallen approximately 60% over the past 12 months, reflecting the broader pressure on software valuations.

Xero's share price may be under pressure, but its platform remains deeply embedded in small business finance. Once customers connect invoicing, payroll, payments, bank feeds, reporting, and advisers to the platform, switching can be difficult.

The company also has room to keep expanding its role beyond accounting, helping small businesses manage more of their financial operations.

The road back may not be smooth. But after such a heavy fall, Xero could be a top ASX 200 recovery idea for June.

The post Down 60%: 3 oversold ASX 200 shares to buy in June appeared first on The Motley Fool Australia.

I would not rush just because the financial year is ending. The market will still be there in July. But if I had $20,000 ready to invest, I would use this period to add quality, global exposure, and long-term growth to my portfolio.

Here is how I would think about it.

I'd start with a global core

The first place I would look is an exchange-traded fund (ETF) with broad international exposure.

For me, the iShares S&P 500 AUD ETF (ASX: IVV) would be a strong candidate.

The IVV ETF gives investors exposure to America's largest listed companies. I like that because the US market has a depth of world-class businesses that is difficult to replicate on the ASX alone.

This is not just about owning the biggest technology names. The S&P 500 includes companies across healthcare, financial services, consumer brands, industrials, digital platforms, payments, software, and communication services.

I'd consider a quality ASX blue chip

I would also look for direct exposure to a high-quality Australian business.

One ASX share I would consider is Macquarie Group Ltd (ASX: MQG).

Macquarie is not just a bank. It is a global financial group with exposure to asset management, infrastructure, commodities, markets, private capital, and the energy transition.

That makes earnings less predictable than a traditional domestic bank, but I think it also gives Macquarie more ways to grow over time.

I like businesses that can adapt as markets change. Macquarie has shown over many years that it can move capital and expertise into areas where it sees opportunity. That flexibility is valuable.

I'd keep room for an ASX tech stock

Finally, I would consider using part of the $20,000 to buy Xero Ltd (ASX: XRO) shares.

Xero has built a strong position in small business accounting software, but I think the bigger opportunity is broader than that.

It can help businesses with invoicing, payroll, tax, payments, cash flow, reporting, and more automated financial tasks over time.

The share price can be volatile, and investors still need to watch valuation and execution. But I think Xero has the sort of global software opportunity that can reward patience.

Foolish takeaway

If I were investing $20,000 before the end of FY26, I would focus on quality and long-term growth rather than trying to predict what the market will do over the next month.

A mix of global exposure, high-quality Australian businesses, and a world-class ASX tech stock would be my preference. That gives the portfolio several ways to grow without making the whole plan depend on one stock or one theme.

The end of the financial year can be a useful prompt to review a portfolio. But the real goal is much bigger than 30 June. I would want these investments working for me for years.

The post How I'd invest $20,000 in ASX shares before the end of FY26 appeared first on The Motley Fool Australia.

They should not be followed blindly. Brokers can be wrong, forecasts can change, and target prices can move quickly. But when a broker's thesis lines up with my own view, I think it is worth paying attention.

Morgans currently has buy recommendations on the three ASX 200 shares in this article. I also rate all three as buys.

Xero Ltd (ASX: XRO)

The first ASX 200 share is Xero.

The small business accounting software company recently reported a better-than-expected FY26 result, and Morgans believes the FY27 outlook commentary was also ahead of expectations.

What I like about Xero is that it is no longer just an accounting software business in the narrow sense. It has the chance to become a more complete financial operating system for small businesses.

That could include accounting, payroll, invoicing, payments, tax, reporting, cash flow tools, and eventually more artificial intelligence (AI)-driven support.

Morgans noted that investors appeared cautious about the risk and reward from AI disruption. I can understand that. AI could change the way small businesses interact with software over time.

But I see AI as more of an opportunity than a simple threat for Xero. If management can use it to make the platform more valuable, save customers time, and unlock new monetisation options, I think the long-term runway remains attractive.

Morgans has retained its buy recommendation and $111 target price on the stock.

Breville Group Ltd (ASX: BRG)

Breville is another ASX 200 share I like.

This is a premium appliance business with a strong position in coffee machines, kitchen products, and other higher-quality household appliances.

What makes Breville interesting to me is the way it has built a global brand around better design, performance, and the at-home coffee routine. It is not just selling appliances. It is selling products that can become part of a daily habit.

Morgans is also positive on the stock. The broker pointed to encouraging updates from relevant offshore peers, including businesses with premium appliance exposure, innovation-led product development, coffee exposure, and geographic expansion.

That is a useful read-through for Breville because it suggests premium appliance demand has not disappeared, even with a challenging consumer backdrop.

I still think investors need to be realistic. Breville can be affected by consumer confidence, currency movements, tariffs, and competition.

But I like the company's brand, product pipeline, and international growth opportunity. In my view, it remains one of the better consumer growth shares on the ASX.

CSL Ltd (ASX: CSL)

The third ASX 200 share is CSL.

This has been a painful stock for many investors. The healthcare giant has faced downgrades, weaker confidence, and concerns around its plasma business.

Morgans recently reduced its forecasts and target price following CSL's downgrade of guidance. The broker pointed to issues including China albumin price pressure, US immunoglobulin channel inventory normalisation, paused Iran sales, and weaker sales in some areas.

However, the important point is that Morgans still has a buy recommendation, with a target price of $147.59.

I agree with the broader thinking. CSL's issues look serious, but I do not think they prove the business is structurally broken.

The company still has global leadership positions, large end markets, and exposure to healthcare demand that should continue to grow over time. Recovery may take years, and investors should not expect the old CSL story to simply reappear overnight.

But the valuation now looks much more interesting. If management can improve execution and rebuild confidence, I think patient investors could be rewarded.

Foolish takeaway

I like all three of these ASX 200 shares, but for different reasons.

What stands out is not simply that Morgans has buy ratings on them. It is that each stock has a credible path to being worth more over time, despite some clear risks.

Xero has a larger software opportunity ahead, Breville has a premium global brand, and CSL has recovery potential from a much lower level of confidence. For investors willing to be patient, I think all three are worth considering today.

The post 3 popular ASX 200 shares that experts rate as strong buys appeared first on The Motley Fool Australia.

Higher interest rates, valuation concerns, and questions about artificial intelligence (AI) have all put pressure on parts of the market. But that does not mean investors should ignore the sector.

For example, the two ASX tech shares in this article are solving important problems, building sticky customer relationships, and expanding into large markets. Here's why they could be top buy and hold picks:

Pro Medicus Ltd (ASX: PME)

Pro Medicus is one ASX tech share that has been an extraordinary performer over the long term.

It provides medical imaging software to hospitals, radiology groups, and healthcare networks. Its Visage platform helps customers view, manage, and distribute medical images quickly and efficiently.

That is a niche but important market. Medical imaging volumes continue to grow as healthcare systems rely more heavily on scans to diagnose and manage patients. This creates a need for fast, reliable, and scalable imaging technology.

Pro Medicus has built a strong reputation in this area, with its software consistently being selected by a number of major healthcare institutions. This speaks to the quality of its platform and the importance of performance in this field.

The company also benefits from a highly attractive business model. Its contracts can be large, long-term, and sticky. And once a customer is using Pro Medicus' software across critical workflows, switching to another provider is not a simple decision.

Its valuation is often demanding, and investors should expect volatility if market expectations shift. But Pro Medicus has a rare combination of global growth potential, high margins, and mission-critical software.

Xero Ltd (ASX: XRO)

Xero is already a well-known ASX tech share, but its growth story is far from over.

The company's software sits at the centre of small business finance. Once a business has its invoicing, payroll, bank feeds, reporting, payments, and adviser relationships connected to one platform, switching becomes a hassle.

That gives Xero an attractive level of customer stickiness. It also gives the company room to expand beyond basic accounting software.

The bigger opportunity is to become a broader financial operating system for small businesses. That means helping customers manage more of the work that sits around accounting, including payments, payroll, insights, automation, and compliance.

This is important because small businesses often have limited time and resources. Tools that save time, reduce admin, and improve financial visibility can be valuable even in tougher economic conditions.

Xero also has international growth potential. The company estimates that it has a global addressable market in the region of 100 million small to medium sized businesses. This arguably gives Xero a multi-decade growth runway.

The post 2 incredible ASX tech shares you'll wish you bought and held appeared first on The Motley Fool Australia.

Xero shares are down around 60% from their high, while WiseTech Global Ltd shares are down almost 70% from their high.

Falls that large can make investors nervous, but they can also create opportunity when the underlying businesses remain strong.

I rate both of these ASX tech shares highly. In fact, I would be happy to own both in a long-term portfolio. But if I had to choose only one today, this becomes a much harder decision.

Why I like Xero shares

Xero is one of the best software businesses on the ASX in my view.

The company started with accounting software, but I think the bigger opportunity is becoming a broader financial operating system for small businesses.

Small business owners need help with invoicing, payroll, payments, tax, reporting, cash flow, and financial decision-making. Xero sits close to those daily workflows, which can make the platform very sticky once customers rely on it.

The US opportunity is a key reason I rate Xero highly. It will not be easy, given the competitive landscape, but even modest success in that market could add meaningfully to the company's long-term growth runway.

The risk is valuation and execution. Xero still needs to keep growing, improving margins, and proving it can win outside its strongest markets.

But I think the share price fall has made a high-quality software business look very attractive.

Why I like WiseTech shares

WiseTech is also a world-class ASX technology share.

Its CargoWise platform is used in complex global logistics and freight forwarding workflows. This is not light, optional software. Global trade involves documentation, customs, compliance, routing, pricing, transport, and endless exceptions.

That complexity is why I like the business. When software becomes deeply embedded in a customer's operations, it can be difficult to replace. WiseTech has built a strong position in a specialised industry where domain knowledge is very important.

I also think AI could be genuinely useful for WiseTech. Logistics still involves a lot of manual data entry, document checking, compliance work, and exception handling. If AI agents can reduce some of that workload, WiseTech's platform could become even more valuable to customers.

The acquisition of e2open also gives WiseTech a broader opportunity across trade, supply, demand, and connected supply chain networks. That adds complexity, but it also expands the possible prize.

Which would I buy?

This is close, because I think both businesses have strong long-term potential.

But if I had to buy only one today, I would choose WiseTech.

The main reason is the combination of share price weakness and embedded industry position. A fall of almost 70% from its high is not something to ignore, and there are clearly risks around execution, integration, valuation, and investor confidence.

But I think WiseTech's role in global trade software is extremely hard to replicate. The business operates in a complex market, serves mission-critical workflows, and has a practical AI opportunity that could help customers save time and reduce errors.

Xero remains a share I would happily buy as well. Its small business platform opportunity is excellent. But at today's prices, WiseTech edges ahead for me because the risk/reward looks slightly more compelling.

Foolish takeaway

This is not a case of one good ASX tech share and one bad one.

I think Xero and WiseTech are both high-quality businesses with long growth runways. Both could be much larger in a decade if management executes well.

But if I had to make the difficult choice today, I would buy WiseTech first. The sell-off has been severe, the business remains deeply embedded in global logistics, and the AI opportunity looks directly tied to real customer pain points. 

For patient investors, I think that makes it the more compelling buy right now.

The post Xero shares vs WiseTech shares: Which ASX tech share would I buy today? appeared first on The Motley Fool Australia.

That is why I think quality should sit at the centre of the portfolio.

Three ASX shares I think could suit that role are named in this article.

ResMed Inc (ASX: RMD)

ResMed is an ASX healthcare share I would be happy to own in an SMSF.

The company is a global leader in sleep apnoea treatment and connected respiratory care. Its devices help patients start therapy, while masks, accessories, software, and data tools support ongoing treatment.

I like that model for a long-term portfolio. The initial device sale is only part of the story. Patients often need replacement masks, cushions, tubing, and other supplies. That creates a recurring element that can support high margins and long-term earnings growth.

The sleep health market also remains underpenetrated. Many people with sleep apnoea have not been diagnosed or treated, which gives ResMed a long runway if awareness and testing continue to improve.

There are risks from competition and new treatment options, but I think ResMed's brand, scale, and patient ecosystem remain valuable.

Xero Ltd (ASX: XRO)

Xero is another world-class business I would consider for an SMSF.

This ASX share provides cloud accounting and financial software for small businesses, accountants, and bookkeepers.

What I like is that Xero can become part of the operation of a small business. Invoicing, payroll, payments, tax, reporting, and cash flow are not occasional tasks. They are central to how a business runs.

That gives the platform a strong position if it continues improving.

Xero also has a large international opportunity. Australia and New Zealand are strong markets, but the UK and US could provide a much longer runway if management executes well.

Artificial intelligence (AI) could add another growth engine. Small business owners often spend too much time on admin. If Xero can automate more of that work, its software could become even more valuable.

For an SMSF, I think Xero offers exposure to a global software business with many years of growth still ahead.

Macquarie Group Ltd (ASX: MQG)

Macquarie Group would give an SMSF a very different type of world-class exposure.

It is not a traditional Australian bank. Macquarie has operations across asset management, commodities and global markets, banking, financial services, and investment banking.

That variety is one reason I like it. The group can benefit from infrastructure investment, energy transition, commodities volatility, private markets, capital flows, and specialist financing.

Earnings can be uneven from year to year. That is part of owning a business exposed to markets and investment activity.

But over long periods, Macquarie has shown an impressive ability to adapt and find attractive areas to deploy capital.

I think that adaptability is valuable for an SMSF with a long horizon.

Foolish Takeaway

An SMSF portfolio does not need to be filled with only defensive assets. I think there is room for high-quality growth shares that can compound over many years.

ResMed, Xero, and Macquarie share one useful trait: they have built strong positions that would be difficult for competitors to copy quickly.

That is the kind of business I would want working inside a super portfolio for the long term.

The post I would buy these world-class ASX shares for an SMSF appeared first on The Motley Fool Australia.

For many investors, the more realistic path is putting money to work each month and letting time do the heavy lifting.

A regular $500 monthly investment may not sound life-changing on its own. But combined with patience, discipline, and a sensible mix of quality ASX shares, it could grow into something much more substantial.

The type of shares that could help

To aim for strong long-term returns, investors would likely need exposure to growth assets.

That could mean combining different types of ASX shares. A healthcare technology leader such as Pro Medicus Ltd (ASX: PME) could provide growth, while Goodman Group (ASX: GMG) offers exposure to logistics and data infrastructure.

Defensive names such as Woolworths Group Ltd (ASX: WOW) and Telstra Group Ltd (ASX: TLS) could add more stability, while software shares such as TechnologyOne Ltd (ASX: TNE), WiseTech Global Ltd (ASX: WTC), and Xero Ltd (ASX: XRO) bring long-term earnings potential.

Together, shares like these could give an investor a mix of growth, resilience, and income.

Of course, there is no guarantee that any portfolio will deliver a 10% average annual return. But this is a reasonable long-term assumption to use for illustration, given historical share market returns.

What the numbers show

If an investor put $500 a month into ASX shares and achieved an average return of 10% per annum, the portfolio could grow to approximately $500,000 in around 23 years.

That is the power of compounding.

The investor would contribute about $135,000 over that period. The rest would come from investment returns building on previous returns.

This is why time matters so much. In the early years, progress can feel slow because most of the growth comes from contributions. But as the balance gets larger, compounding starts doing more of the work.

Why monthly investing helps

Investing monthly also has a practical advantage.

It removes the pressure of trying to pick the perfect time to buy. Instead, investors buy through different market conditions.

This is known as dollar-cost averaging.

Some months, shares will be expensive. Other months, they will be cheaper. Over time, regular investing can smooth out entry prices and help investors stay consistent.

That discipline is important because markets will not rise in a straight line. There will be selloffs, disappointing results, and periods where patience is tested.

Diversification is essential

The recent struggles of CSL Ltd (ASX: CSL) are a useful reminder that even high-quality companies can go through very difficult periods.

That is why diversification matters. A portfolio should not rely too heavily on one company, one sector, or one theme. Spreading money across different types of businesses can reduce the damage when one holding underperforms.

The goal is not to avoid every setback. That is impossible. The goal is to build a portfolio that can keep moving forward even when some parts are struggling.

Foolish takeaway

Turning $500 a month into $500,000 is not about luck.

It is about investing regularly, owning quality assets, staying diversified, and giving compounding enough time to work.

Time, patience, and discipline are the ingredients that can turn a simple monthly habit into serious long-term wealth.

The post How to turn $500 a month into $500,000 with ASX shares appeared first on The Motley Fool Australia.

The market can be noisy in the short term. Interest rates, inflation, consumer confidence, earnings downgrades, and global events can all move share prices around quickly.

But over 10 years, I think business quality, growth options, balance sheet strength, and management execution tend to do far more of the heavy lifting.

Two ASX 200 shares I think look interesting for that kind of timeframe are named in this article.

Xero Ltd (ASX: XRO)

The first ASX 200 share I would be happy to buy for the next decade is Xero.

Xero has already built a strong position in small business accounting software, but I do not think the opportunity ends there.

To me, the bigger picture is that Xero can become more important to small businesses over time. Accounting is the starting point, but the platform can also help with invoicing, payroll, payments, tax, reporting, cash flow, and financial decision-making.

That gives Xero a lot of ways to deepen its relationship with customers.

Small business owners do not usually want more admin. They want tools that save time, reduce mistakes, and help them understand how their business is performing. Xero is well placed for that because its software sits close to the financial heartbeat of a business.

I also think artificial intelligence (AI) could become a useful tailwind over time. I am not expecting AI to magically transform the company overnight. But over the next decade, automation could make Xero's products more valuable by helping customers with tasks such as reconciliation, forecasting, document handling, reminders, and simple business insights.

The US opportunity is another reason I like the stock. Xero is already a much larger business than it used to be, but its global runway still looks meaningful. Expanding in the United States will not be easy, given the competitive landscape. But if Xero can keep improving its product and growing its brand, I think it could be a materially larger company in 10 years.

Goodman Group (ASX: GMG)

Another ASX 200 share I would consider buying for the long term is Goodman.

Goodman has been one of the more impressive ASX 200 growth stories over the years, and I think its opportunity has evolved in an interesting way.

The company is best known for industrial property, including logistics facilities that support ecommerce, supply chains, and modern distribution networks. That part of the business still looks attractive to me. Companies need well-located, efficient space close to customers, transport routes, and major cities.

But I think Goodman's data centre opportunity could be the bigger long-term driver.

The growth of cloud computing, AI, streaming, digital services, and enterprise software is creating huge demand for data centre infrastructure. These facilities need more than just land. They need the right locations, planning capability, capital, customers, and access to power.

That is where Goodman's skill set could be valuable. This is not a low-risk opportunity. Data centres can be capital-intensive, and expectations for Goodman are already high. If growth disappoints, the share price could be vulnerable.

But I like that Goodman is not chasing a short-term trend from a standing start. It already has deep property expertise, global relationships, and a long record of developing high-quality assets in constrained locations.

Foolish takeaway

I would not expect either of these ASX shares to move in a straight line over the next decade. In fact, I would be surprised if they did.

Xero and Goodman both trade on expectations of growth, and that can make them sensitive to market mood. But I think both businesses are exposed to changes that could keep playing out for many years.

For patient investors, that is the kind of setup I like. The next 12 months may be uncertain, but a decade gives quality businesses time to reinvest, adapt, and become much larger than they are today.

The post 2 ASX 200 shares I'd buy for the next 10 years appeared first on The Motley Fool Australia.

But after years of strong growth, the question is whether the cloud accounting company still has enough runway to be a genuine buy and hold option for the next decade.

I think the answer is yes.

A platform at the centre of small business

The strength of Xero is that it sits inside one of the most important parts of a small business: its finances.

Accounting software is not something a business owner changes lightly. Once invoices, payroll, payments, reporting, bank feeds, and adviser relationships are connected to a platform, switching becomes disruptive.

That gives Xero a sticky customer base and a strong foundation to build from.

The company is no longer just trying to sell cloud accounting subscriptions. It is building a broader financial operating system for small businesses, bringing together accounting, payroll, payments, insights, and automation.

That is important because the more jobs Xero can solve, the more valuable the platform becomes.

The US opportunity remains important

Xero already has strong positions in Australia, New Zealand, and the UK.

But the United States remains the market that could change the company's long-term profile.

The acquisition of Melio gives Xero a stronger payments capability in the US, which is important because accounting and payments are closely linked for small businesses.

Xero's recent result showed US revenue increased strongly, with the company reporting 240% headline growth and 30% organic growth excluding Melio. Its US customer base also increased to 424,000.

The US will not be easy. It is competitive and will require investment. But if Xero can keep building traction, it gives the company a far larger growth opportunity than its home markets alone.

AI could deepen the moat

Artificial intelligence (AI) is both a risk and an opportunity for software companies.

For Xero, it looks more like an opportunity.

The company already has deep customer data, financial workflows, bank feed connections, tax integrations, payment rails, and trusted adviser relationships. These are not easy for a new AI tool to replicate.

Xero is using AI to automate more of the work small businesses and accountants do every day. Its recent update highlighted more than 40 million transactions reconciled through auto bank reconciliation, with reported accuracy of 97%. It also said more than 500,000 customers had adopted new GenAI features launched in the past 18 months.

Clearly AI is not just a buzzword here. It can help make the product more useful, improve customer efficiency, and potentially support future revenue growth.

Should you buy and hold Xero shares?

I would be comfortable buying and holding Xero shares for 10 years.

The company has a sticky product, a large global market, a growing payments opportunity, and a strong position in small business financial workflows.

There will be risks. But for patient investors, I see Xero as one of the best ASX growth shares to hold for the long term.

The post Should you buy and hold Xero shares for 10 years? appeared first on The Motley Fool Australia.