Investing $500 a month may not sound like it could become anything meaningful. But you would be wrong.

Over time, it can quietly become one of the most powerful financial decisions an investor makes. The key is not the monthly amount on its own, but what happens when consistent investing meets time and compounding.

To explore what is possible, let’s see what could happen if you put $500 a month into ASX shares and earned an average return of 10% per annum over the long term.

Start with quality ASX shares

Before looking at the numbers, it is worth setting the foundation.

A long-term plan like this relies on owning quality ASX shares rather than constantly trading in and out of the market. That typically means businesses with strong balance sheets, strong and sustainable demand, and the ability to grow earnings over time.

Companies like ResMed Inc. (ASX: RMD), Goodman Group (ASX: GMG), and Cochlear Ltd (ASX: COH) are examples of high-quality ASX shares that could be suitable for long-term investing.

What $500 a month could look like after 5 years

After five years, you would have contributed $30,000 in total.

At an average return of 10% per annum, which is not guaranteed but in line with historical averages, the portfolio would be worth around $39,000. At this stage, most of the value comes from your contributions rather than returns, which is why progress can feel slow early on.

This is often the hardest phase psychologically, even though it is the most important.

What happens after 10 years

After ten years, total contributions rise to $60,000.

With compounding starting to play a larger role, your portfolio would grow to around $100,000. At this point, returns are doing meaningful work alongside new investments. A strong year in the market can add more to the portfolio than several months of contributions.

This is often when investing starts to feel rewarding rather than purely disciplined.

The impact after 20 years

After two decades, you would have contributed a total of $120,000.

At a 10% average annual return, the portfolio would now be worth around $360,000.

What stands out here is how much of the total value now comes from growth rather than contributions.

Your ASX share portfolio has momentum. Compounding is no longer subtle. It is finally doing the heavy lifting.

The long-term effect after 30 years

After a total of thirty years, your total contributions reach $180,000.

At the same 10% average return, your portfolio would grow to approximately $1 million.

By this stage, the majority of the value has come from returns on previous returns, not from the money invested each month.

This is why time is often described as the most powerful asset an investor has.

Foolish takeaway

Investing $500 a month in ASX shares is not about quick wins. It is about committing to a process that allows compounding to work quietly in the background.

History shows that long-term investors who stay consistent and focus on quality give themselves a realistic chance of building substantial wealth over time.

The hardest part is staying invested long enough for the numbers to matter.

The post How much could I make investing $500 a month in ASX shares? appeared first on The Motley Fool Australia.

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• As reporting season looms, where will the market head next and what should you be buying?
• Where to invest $5,000 in ASX 200 shares to try and beat the market
• How to build an ASX share portfolio for income and growth

Motley Fool contributor James Mickleboro has positions in Cochlear, Goodman Group, and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear, Goodman Group, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Cochlear and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

More reading

• My 3 higher-risk, high-reward ASX stock recommendations for February 2026
• Why Life360, Northern Star, Objective Corp, and Rox shares are charging higher today
• Up 29% today. Why Life360 shares are surging on record results
• Insignia Financial responds to ASX on disclosure and governance
• ASX gold shares go crazy as gold price rips toward US$5,000 on Friday

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Sports, Life360, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Catapult Sports and Life360. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Markets are good at reacting to headlines, but not always good at maintaining attention. Some ASX shares fall out of favour not because their businesses stop working, but because near-term uncertainty or past disappointment dominates the narrative.

That can create situations where a share price reflects scepticism rather than a clear deterioration in long-term prospects. Here are three ASX shares that, to me, look like they are being paid less attention than their underlying businesses might deserve.

Megaport Ltd (ASX: MP1)

Megaport operates a global network that allows enterprises to connect their data infrastructure on demand. The appeal of the model lies in its flexibility. Customers can scale connectivity up or down as needs change, rather than locking into long-term, rigid arrangements.

What seems to be overlooked is how closely the business aligns with longer-term trends in cloud adoption, artificial intelligence, and hybrid IT environments. As companies continue to distribute workloads across multiple platforms and regions, the need for simple, programmable connectivity remains.

Past volatility in earnings and expectations has clearly weighed on sentiment. But the core product still addresses a real operational challenge for large organisations and has a huge market opportunity. That disconnect is what makes Megaport interesting to me.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store sits in a part of retail that is easy to dismiss during periods of consumer uncertainty. Apparel spending is discretionary, and youth-focused brands can quickly fall out of favour.

What is often missed is how disciplined the business has been in managing its store rollout and brand portfolio. Rather than chasing scale for its own sake, Universal Store has focused on maintaining relevance, controlling costs, and adjusting inventory to demand.

While sales can fluctuate with consumer confidence, its business model is more adaptive than many investors give it credit for. And with interest rates falling last year, I am optimistic that consumers will be opening their wallets again in 2026 as cost-of-living pressures ease.

Breville Group Ltd (ASX: BRG)

Breville is sometimes treated as a pandemic-era winner that has simply reverted to normal. That framing risks underestimating what the company has built over a much longer period.

The business designs and markets premium kitchen appliances with a strong focus on product development and brand positioning. It does not compete primarily on price, but on functionality and design, which helps support margins and customer loyalty.

While demand can ebb and flow with household spending, Breville’s global footprint, at-home coffee market exposure, and innovation pipeline provide levers for growth beyond any single market or cycle. The company’s consistency over many years suggests it is more than just a short-term beneficiary of unusual conditions.

Foolish takeaway

Being ignored by the market does not automatically make a stock attractive. But when sentiment drifts away faster than the business fundamentals change, it can be worth taking a closer look.

Megaport, Universal Store, and Breville operate in very different sectors, yet all appear to be navigating periods where attention has faded. For long-term investors, those quieter moments are often a great time to consider building a position.

The post 3 outstanding ASX shares the market seems to be ignoring appeared first on The Motley Fool Australia.

More reading

• How to turn ASX dividends into long-term wealth
• 3 of the best ASX dividend stocks to buy now
• 2 undervalued ASX shares worth buying today
• Here are the top 10 ASX 200 shares today
• 5 ASX 200 shares I think could beat the market in 2026

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX silver shares are flying on Friday as the silver price nears US$100 per ounce.

At the time of writing, the silver price is 3.1% higher at US$99.10 per ounce, which is a new record.

Other precious metals are also soaring as investors digest new US data showing GDP growing at its fastest pace in two years.

The gold price rose 0.5% to reach a record US$4,958 per ounce in earlier trading. Gold is up 7.4% this week and 80% year over year.

Platinum is also up 3.3% today to a record US$2,661 per ounce. Platinum has risen 6.9% this week and is up 171% year over year.

Palladium is up 2.1% to $1,969 per ounce, and has lifted 5.2% this week and 98% year over year.

Why is the silver price charging higher?

Trading Economics analysts said investors were reassessing resilient US growth alongside signs that inflation remains contained.

US GDP increased at an annual rate of 4.4% in the third quarter of 2025, according to an updated estimate from the Bureau of Economic Analysis (BEA).

This compares to a second-quarter increase of 3.8% and a first-quarter decline of 0.6%.

The BEA said:

The acceleration in real GDP in the third quarter reflected upturns in investment, exports, and government spending, as well as an acceleration in consumer spending.

Imports decreased less in the third quarter than in the second.

Regarding the impact on the silver price, Trading Economics analysts said:

While the upward revision to Q3 GDP growth to 4.4% reinforced the view that the economy remains strong and reduced the urgency for near term policy easing, recent inflation data signaled steady disinflation rather than renewed overheating, helping stabilize expectations around future policy restraint.

That balance limited downside pressure from growth resilience and allowed silver to recover, even as easing geopolitical rhetoric around Greenland tempered immediate safe haven demand.

The analysts said silver continues to benefit from persistent supply constraints in a fourth consecutive year of global supply deficits.

Silver has increased relevance in the global economy today.

It’s a key input in solar panels, tech devices, electric vehicles, and data centres due to its superior electrical conductivity to copper.

Silver was the best-performing metal or mineral of 2025, rising 147% in just 12 months.

Like gold, silver and other precious metals are also seen as investment safe havens when global geopolitics and economics are uncertain.

Let’s see what’s happening with the few silver miners listed on the ASX today.

ASX silver shares rising strongly

ASX 200 large-cap mining share South32 Ltd (ASX: S32) hit a near three-year high of $4.46 in earlier trading, up 1.4%.

South32 owns the Cannington mine in north-west Queensland, which is one of the world’s largest producers of silver and lead.

The South32 share price has since retreated to $4.36, down 0.9%.

Silver Mines Ltd (ASX: SVL) shares are up 5.45% to 23 cents.

The Sun Silver Ltd (ASX: SS1) share price is up 6.05% to $2.28.

Unico Silver Ltd (ASX: USL) shares are up 4.5% to $1.05.

Iltani Resources Ltd (ASX: ILT) shares are up 7% to 70 cents apiece.

Boab Metals Limited (ASX: BML) shares are up 12.37% to 55 cents.

The Argent Minerals Limited (ASX: ARD) share price is up 12.4% to 55 cents.

The post ASX silver shares streak higher as silver price nears US$100 appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Netwealth, Santos, and South32 shares
• Lynas, South32, Liontown: Can these surging shares go higher?
• Here are the top 10 ASX 200 shares today
• South32 shares hit a 12-month high after a solid first-half performance
• Why Cogstate, DroneShield, Premier Investments, and South32 shares are storming higher

Motley Fool contributor Bronwyn Allen has positions in South32. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

As global energy markets face rising geopolitical risk and growing power demand, an ASX stock is emerging as a potential breakout candidate in 2026. That stock is Paladin Energy Ltd (ASX: PDN).

Paladin operates in the uranium sector, which is attracting renewed attention as countries seek reliable, low-emissions power capable of supporting baseload demand.

Governments are reassessing energy security, grid stability, and emissions targets, and nuclear power is increasingly seen as part of the solution. This shift is driving fresh investment across the uranium sector.

Nuclear demand is building

There are currently more than 70 nuclear reactors under construction globally, with dozens more planned or proposed. Each new reactor requires long-term uranium supply contracts, often locked in years in advance.

At the same time, geopolitical tensions have disrupted traditional uranium supply chains. Western nations are actively reducing reliance on Russian nuclear fuel and enrichment services. That shift is forcing utilities back into the market to secure supply from alternative producers.

This backdrop is tightening the uranium market and pushing prices higher.

Uranium prices have climbed steadily in recent months, with term prices moving into the mid US$80s per pound. Some analysts expect prices could push higher again in 2026 as utilities accelerate contracting activity and inventories remain tight.

Why Paladin stands out

Paladin Energy is one of the few Australian-listed uranium producers with strong near-term production leverage.

In its December 2025 quarterly report, Paladin delivered a 16% increase in uranium production compared to the previous quarter. The company produced 1.23 million pounds of U3O8 and sold 1.43 million pounds at stronger realised prices.

Costs also moved in the right direction, supporting improved margins as the company continues to ramp up operations at its Langer Heinrich Mine in Namibia.

Management reaffirmed full-year FY26 production guidance of between 4 and 4.4 million pounds of uranium. Importantly, Paladin remains on track for full mining and processing operations by FY27, which could further lift output and cash flow.

Beyond Namibia, Paladin also holds exposure to the Patterson Lake South project in Canada. This asset is widely regarded as one of the highest-grade undeveloped uranium deposits globally and offers longer-term growth potential.

Balance sheet strength

Paladin entered 2026 in a stronger financial position after completing a successful share purchase plan and restructuring its debt facilities late last year.

The company finished the December quarter with more than US$278 million in cash and investments, alongside lower debt levels. That balance sheet strength provides flexibility as uranium markets remain volatile and capital requirements increase during ramp-up phases.

Foolish Takeaway

Uranium is emerging as a strategic energy commodity once again. Rising nuclear demand, geopolitical risks, and tightening supply are reshaping the market outlook.

Paladin Energy offers direct exposure to those trends through growing production, improving costs, and high-quality assets. While uranium stocks remain volatile, Paladin appears well-positioned if uranium prices continue to strengthen in 2026.

For investors looking beyond traditional ASX energy stocks, this Australian uranium producer could be one to watch closely.

The post An Australian energy stock poised for major growth in 2026 appeared first on The Motley Fool Australia.

More reading

• Best 3 ASX 200 uranium shares of 2025
• Should you buy Paladin Energy shares after its strong update?
• Here are the top 10 ASX 200 shares today
• Why Evolution Mining, Lynas Rare Earths, Paladin Energy, and Sovereign Metals shares are racing higher today
• Why are Paladin Energy shares jumping 12% to a 52-week high?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Whilst the past 12 months have been generally kind to the S&P/ASX 200 Index (ASX: XJO), there have been many swings and roundabouts amongst the prices of some of the ASX’s most popular dividend shares.

A lot has happened on the world stage between January 2025 and today. We have seen tariffs, trade wars, precious metals hitting record highs, interest rate cuts, and stubborn inflation. As such, the prices of many high-quality ASX shares have been volatile. And this gives the discerning ASX investor some buying opportunities.

One such opportunity could be the Wesfarmers Ltd (ASX: WES) share price.

Wesfarmers shares have had a far more interesting 12 months than the ASX 200 Index. Back in October, this ASX dividend share was riding high, and minted a fresh new all-time record of $95.18 a share.

But since then, Wesfarmers has come off the boil. Today, the ASX 200 industrial and retailing conglomerate and dividend share is going for $83.05 (at the time of writing). That’s down a hefty 12.74% from the all-time high we saw just a few months ago.

Despite this share price dip, I still believe Wesfarmers will excel as a long-term investment.

Why this ASX dividend share is set to excel

The drop that we’ve seen over the past few months with Wesfarmers shares seems to have been a tacit acceptance that Wesfarmers shares might have run too high. Initial reactions were positive to the company’s August full-year earnings, which showed revenues growing by 3.4%, and a 3.8% rise in underlying profits. Satisfactory numbers to be sure, but perhaps not enough to justify the near-37 price-to-earnings (P/E) ratio the company was trading at the time.

When Wesfarmers told investors in late October that “trading conditions remain challenging, with earnings impacted by subdued demand across the mining and resources sectors”, investors may have gotten a little spooked.

But I think Wesfarmers remains a compelling long-term investment for the patient investor.

Wesfarmers has a long track record of delivering for its shareholders. Yes, its most profitable businesses – Bunnings, Kmart and OfficeWorks – are highly sensitive to broader economic conditions, and we should expect to see fluctuations in their financial health from year to year.

But Wesfarmers has shown that it has what it takes to survive when times are tough and thrive when the going gets better.

We can see this in action with Wesfarmers’ dividend history. Between 2020 and 2025, Wesfarmers increased its annual dividend from $1.52 per share to $2.06. That’s a compounded annual growth rate of 5.11%, well above the rate of inflation.

This is exactly what income investors look for on the ASX – passive income rises that grow in real value over time.

With the recent drop in Wesfarmers shares, the company’s dividend yield is back to a respectable, if unimpressive, 2.5% or so. Of course, I don’t think Wesfarmers shares are at a bargain-basement price today. But I think they still have a lot to offer for investors looking for a compelling long-term investment.

The post 1 ASX dividend share set to excel long term, even while down 13% appeared first on The Motley Fool Australia.

More reading

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• Why is everyone talking about the Wesfarmers share price this week?
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• Wesfarmers vs Coles: Which ASX share is the best buy?
• My simple 5-share ASX retirement portfolio

Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The team at Morgans has been busy running the rule over a number of ASX shares this week.

Three popular options that it has been looking at are named below. Does the broker rate them as buys, holds, or sells? Let’s find out:

Netwealth Group Ltd (ASX: NWL)

This investment platform provider’s second quarter update was in line with expectations for funds under administration. And while its margin guidance disappointed, it notes that this was due to an increase in operating expenditure to accelerate its investment in capabilities.

In response, the broker has upgraded Netwealth’s shares to an accumulate rating (between buy and hold) with a $28.90 price target. It said:

NWL delivered 2Q26 net flows of $4.16bn, and total FUA of $125.6bn, which was broadly in-line with consensus expectations and sees the group on track to deliver NWL’s FY26 net-flow targets. Revised FY26 EBITDA margin guidance will however see a larger step-up in opex than previously flagged as NWL looks to further accelerate investment in capabilities to support the broader push into the Broker and UHNW markets, with the view to accelerating revenue growth.

We decrease our NPAT forecasts by -2/-8%/-6%, reflecting NWL’s FY26 EBITDA margin guidance and the inclusion of debt to fund NWL’s First Guardian client remediation. Following a ~52% decline in share price over the last 6 months, we now see NWL trading on an FY27F P/E of ~40x (vs. HUB on 57x), with TSR of +18% based on our revised price target of $28.90/sh. This sees us move to an ACCUMULATE rating (previously HOLD).

Santos Ltd (ASX: STO)

Morgans was relatively pleased with Santos’ performance during the fourth quarter. Though, it concedes that there were a couple of negative updates on growth projects, which took some of the shine off the result.

As a result, the broker has held firm with its hold rating and $6.60 price target on Santos’ shares. Commenting on its recommendation, the broker said:

STO posted a largely in line 4Q25 production and revenue result, although updates on its two key growth projects did flag some incremental negatives. Barossa ramp-up is dealing with an expected ~2-month delay vs planned. Pikka Phase 1 saw a ~US$200m upgrade in capex budget on a combination of cost pressures. Hiccups aside STO has done a good job executing, with Barossa and Pikka startups set to help the cash flow equation. Trading closed at a modest discount to our A$6.60 Target Price and we maintain our Hold rating.

South32 Ltd (ASX: S32)

Finally, this diversified miner delivered a second quarter update that was ahead of expectations.

In light of this and its exposure to rising copper, aluminium, and silver prices, the broker has retained its buy rating on South32’s shares with an improved price target of $5.00. It said:

2Q26 was a modest beat at a group level operationally. Supported by strong alumina and silver output. FY26 guidance on operated assets unchanged, Brazil Aluminium under review. We have applied updated house precious metal forecasts to our estimates. Post-Illawarra divestment, S32 is ~90% base metal producer with limited execution risk (ex-Hermosa) and enjoying a healthy (and material) upgrade cycle from copper, aluminium and silver prices. Positioned to benefit from the upcycle, we maintain our BUY rating with a A$5.00 Target Price (was A$4.30).

The post Buy, hold, sell: Netwealth, Santos, and South32 shares appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• Lynas, South32, Liontown: Can these surging shares go higher?
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• South32 shares hit a 12-month high after a solid first-half performance

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

VanEck Gold Miners AUD ETF (ASX: GDX) is up 4.9% to $157.96 as gold stocks and ETFs rebound from a marked decline yesterday.

The gold price ripped to a new record of US$4,958 per ounce in earlier trading on Friday.

Analysts at Trading Economics say the gold price is on track for its strongest week since March 2020.

This is primarily due to high levels of ongoing central bank buying, lingering geopolitical risks, and a weaker US dollar. 

Amid these tailwinds, GDX ETF has delivered stunning gains to ASX investors.

In CY25, GDX produced a total return of 143.76%, making it the second-best-performing ETF of the 423 on the market.

The gold price rose by 65% in 2025 and 27% in 2024 as central banks sought to diversify their reserves from the US dollar.

Central banks also see gold as a safe-haven investment amid unpredictable geopolitics.

US tariffs and uncertainty over the US President’s next moves on global trade have weakened the US currency.

Expectations of further US interest rate cuts also continue to support gold, and investors are highly optimistic.

Large inflows into international gold ETFs and ASX gold ETFs in the second half of 2025 provided more support for the gold price.

What is GDX ETF?

The GDX ETF seeks to mirror the performance of the NYSE Arca Gold Miners Index (AUD) Index.

ASX GDX invests in 93 stocks, with 44% in Canada, 20% in the US, 11% in Australia, and 6% in China.

Its largest holding is also Newmont Corporation (ASX: NEM) shares.

It also holds Northern Star Resources Ltd (ASX: NST) shares at 2.7% of investments and Evolution Mining Ltd (ASX: EVN) at 2%.

Let’s consider what would have happened if you invested $10,000 in GDX a year ago.

Total investment return on $10,000

On 23 January 2025, GDX ETF closed at $60.13 apiece.

If you had invested $10,000 then, it would have bought you 166 units (for $9,981.58).

There’s been capital growth of $97.83 per unit since then, which equates to a staggering $16,239.78 in dollar terms!

So, your GDX holding is now worth $26,221.36.

GDX ETF also paid a 63-cent dividend last year, which gave you $104.58 in income.

Your capital gain of $16,239.78 plus your dividends of $104.58 represent a total return of 164% over 12 months.

Now, just for fun, calculate in your head how many months of wages it would take to earn the $16,344.26 that GDX earned for you.

The mind boggles.

The post $10,000 invested in GDX ETF a year ago is now worth… appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Higher-risk shares are not for everyone. They can be volatile, sentiment can swing quickly, and short-term results do not always reflect long-term potential. But for investors willing to accept uncertainty, they can also offer outsized rewards if the underlying business executes.

If I were looking to add a small allocation to higher-risk, higher-reward opportunities heading into February, these are three ASX stocks I would be seriously considering.

Catapult Sports Ltd (ASX: CAT)

Catapult is a leading provider of wearable technology and software platforms that are now embedded across many of the world’s top sports teams. This includes Manchester United, Kansas City Chiefs, Cricket Australia, and Golden State Warriors.

The higher-risk element comes from valuation sensitivity and reliance on continued subscription growth. The reward lies in Catapult’s operating leverage. As revenue grows, margins have the potential to expand meaningfully, particularly as the company shifts further toward software-led earnings.

If Catapult continues to execute on cost discipline while growing its installed base, I think even modest beats on expectations could have an outsized impact on its share price.

DroneShield Ltd (ASX: DRO)

DroneShield is firmly in the high-risk, high-reward category. Its technology addresses counter-drone detection and defence, a market that has expanded rapidly due to rising geopolitical tensions and the increasing use of unmanned systems.

Revenue visibility can be lumpy, driven by contract timing and government procurement cycles. That uncertainty makes the stock volatile. However, the addressable market continues to grow, and DroneShield’s technology is already deployed across multiple defence and security agencies globally.

If order flow continues to scale and convert into repeat customers, I believe the upside could be substantial relative to the company’s size.

Nanosonics Ltd (ASX: NAN)

Nanosonics is a different type of higher-risk opportunity. It already has a proven core product in trophon, but the investment case now hinges on successful innovation and commercial execution.

The FDA clearance of trophon3 and the trophon2 Plus upgrade created a meaningful upgrade cycle opportunity across tens of thousands of existing devices globally. Faster cycle times, deeper digital integration, and expanded traceability improve the value proposition for hospitals and clinics, while supporting higher software-driven revenue over time.

More importantly, the De Novo clearance for the CORIS system opens an entirely new market in flexible endoscope reprocessing. This represents a step beyond ultrasound disinfection and, if successfully commercialised, I think it could significantly expand Nanosonics’ long-term revenue base. The phased rollout approach highlights the execution risk, but also reflects a disciplined strategy.

If CORIS gains traction through FY26 and beyond, I believe the long-term payoff could be material.

Foolish Takeaway

These are not low-risk, set-and-forget investments. Each comes with execution risk, valuation sensitivity, and the potential for short-term disappointment.

But for investors prepared to tolerate volatility and take a long-term view, I think Catapult, DroneShield, and Nanosonics each offer credible pathways to meaningful upside if their respective strategies play out.

The post My 3 higher-risk, high-reward ASX stock recommendations for February 2026 appeared first on The Motley Fool Australia.

More reading

• Why Capstone Copper, Dateline, DroneShield, and Lindian shares are falling today
• The bulls are coming: 2 of the best ASX growth shares to buy now to get ahead
• Here are the top 10 ASX 200 shares today
• Why Cogstate, DroneShield, Premier Investments, and South32 shares are storming higher
• Is the DroneShield share price heading to $5.00?

Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Sports, DroneShield, and Nanosonics. The Motley Fool Australia has positions in and has recommended Catapult Sports. The Motley Fool Australia has recommended Nanosonics. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is having a mildly positive finish to the week. In afternoon trade, the benchmark index is up 0.15% to 8,863.3 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are climbing:

Life360 Inc (ASX: 360)

The Life360 share price is up 28% to $33.99. Investors have been fighting to get hold of the location technology company’s shares after it released a very strong fourth quarter update. Life360 revealed that its monthly active users (MAU) reached 95.8 million, up 20% year on year. This comprises US MAU of 50.6 million and international MAU of 45.3 million. Another positive was that its Paying Circles (paid users) grew 576,000 to 2.8 million. This was the largest annual net addition on record. In light of this, FY 2025 revenue is now expected to be between US$486 million and US$489 million. This represents a year on year increase of 31% to 32%.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is up 6% to $27.78. This follows a jump in the gold price overnight, which is lifting most gold miners today. In addition, a note out of Bell Potter reveals that its analysts have retained their buy rating on its shares with an improved price target of $31.10. It said: “Despite the lower production and higher costs, NST managed to generate A$648m of operating mine cash flow (A$129m net mine cash flow) over the quarter. As the business comes to the end of the KCGM mill expansion we expect the business to generate materially higher FCF which may be distributed to shareholders or re-invested.”

Objective Corporation Ltd (ASX: OCL)

The Objective Corporation share price is up 4% to $16.48. This morning, this content, collaboration, and process management solutions provider revealed plans to buy back shares. Starting next month, Objective Corporation will commence an on-market buy-back of up to approximately 9.6 million shares.

Rox Resources Ltd (ASX: RXL)

The Rox Resources share price is up 7% to 59 cents. As well as getting a big lift from the rising gold price, this morning this gold stock released its quarterly update. Its managing director and CEO, Phillip Wilding, spoke very positively about the quarter and its future. He said: “Rox has had a transformational quarter with the release of the DFS, commencement of underground mining and completion of the planned equity funding component of the project financing. Our DFS confirmed the financial and technical viability of the Youanmi Gold Project, with strong metrics, low costs and a moderate capital requirement.”

The post Why Life360, Northern Star, Objective Corp, and Rox shares are charging higher today appeared first on The Motley Fool Australia.

More reading

• Up 29% today. Why Life360 shares are surging on record results
• ASX gold shares go crazy as gold price rips toward US$5,000 on Friday
• Brokers name 3 ASX shares to buy today
• Life360 posts record Q4 as revenue and EBITDA top guidance
• Objective Corporation launches on-market share buy-back

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Objective. The Motley Fool Australia has positions in and has recommended Life360 and Objective. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.