The S&P/ASX 200 Index (ASX: XJO) enjoyed a happy hump day session this Wednesday, pushing the value of many ASX shares higher after yesterday’s rough start to the short trading week.

It was a bit of a wild session for the ASX 200 today, with the index dipping into the red at one point. But investors regained their optimism, and the index finished 0.57% higher at 8,653.3 points.

This successful session for Australian investors comes after a mixed night on the American markets.

The Dow Jones Industrial Average Index (DJX: .DJI) fared decently, rising by 0.17%.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) went the other way, dropping a chunky 0.97%.

But let’s return to the local markets now and dive a little deeper into what the different ASX sectors were up to today.

Winners and losers

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

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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 Light & Wonder Inc, Steadfast Group, and Super Retail Group. The Motley Fool Australia has positions in and has recommended Steadfast Group and Super Retail Group. The Motley Fool Australia has recommended Aub Group, Light & Wonder Inc, and Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DroneShield Ltd (ASX: DRO) is one of the more closely watched growth shares on the ASX.

That is easy to see why. The company sits in a market that has moved from niche defence technology to a major global security issue.

Drones are now cheap, flexible, and increasingly capable. That creates a serious challenge for militaries, airports, prisons, public events, critical infrastructure, and government sites.

I think DroneShield shares remain a buy in June for three key reasons.

The market is getting bigger

The first reason is the size of the opportunity. Counter-drone technology is no longer a theoretical theme. Governments and security agencies are now dealing with real drone risks across battlefields, borders, cities, and infrastructure.

That creates demand for systems that can detect, track, identify, and defeat hostile or unwanted drones.

I like DroneShield because it is positioned across several parts of that chain. The company is not simply selling one piece of equipment. Its offering includes sensors, electronic warfare systems, command-and-control software, and portable systems that can be used across different environments.

That breadth could be important as customers look for practical solutions rather than one-off products.

The market will not always grow in a straight line, and defence procurement can be slow. But I think the direction of travel is clear. Drones are becoming more central to modern conflict and security planning, which should keep demand for counter-drone capability rising.

Contract momentum is building

The second reason is that DroneShield is converting the theme into real customer activity.

This is important because a good theme is not enough on its own. Investors need to see that customers are willing to spend money, sign contracts, and deploy the company’s technology.

Recent contract wins suggest DroneShield is gaining traction in important markets. These wins also help build credibility. Defence and government customers can be demanding, so each deployment can make the business more visible to other potential buyers.

I also like the potential for follow-on work. Counter-drone systems can require software, training, subscriptions, warranties, maintenance, upgrades, and additional units over time. If DroneShield can become trusted by customers, the relationship may extend well beyond the first order.

There are still risks to think about. Contract timing can be uneven, large orders can be hard to predict, and the company needs to keep scaling production and support. But I think the recent momentum gives investors more evidence that DroneShield’s technology is being taken seriously.

The valuation looks more interesting

The third reason is value. DroneShield has been a volatile share, and investors have seen just how quickly expectations can move. Trading around $2.77, its shares are now down almost 60% from their high.

I think that makes the risk/reward more interesting.

The business is still exposed to a powerful long-term theme, but the share price is no longer sitting near its peak. For investors who missed the earlier run, the pullback may offer a better entry point.

That does not automatically make the stock cheap. DroneShield is still a growth company, and its valuation depends heavily on future contract wins, margin performance, production scaling, and customer adoption. If orders disappoint, the share price could remain under pressure.

But I think the lower share price gives investors more room for things to go right.

If DroneShield continues winning work, growing revenue, and proving that counter-drone demand can translate into a much larger business, today’s price could look attractive with the benefit of hindsight.

Foolish takeaway

DroneShield shares are not for investors looking for a quiet blue-chip stock.

This is a growth company in a fast-moving defence technology market, and the share price could remain volatile.

But I think June is still a good time to consider buying. The drone threat is becoming more serious, customers are spending real money on counter-drone capability, and the recent pullback has made the valuation more appealing than it was near the highs.

For patient investors who can handle the risk, I think this remains one of the more compelling growth stories on the ASX.

The post 3 reasons to buy DroneShield shares in June appeared first on The Motley Fool Australia.

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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 DroneShield. 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.

Some ASX growth shares are exciting because they are attached to a hot theme.

I prefer businesses with more practical growth stories. They help families, advisers, consumers, and households solve real problems, and they still have room to grow over time.

The three ASX growth shares in this article all look very different. But I think each could be a strong long-term wealth creator if management continues to execute successfully.

Life360 Inc. (ASX: 360)

Life360 is one ASX growth share I would consider buying for exposure to the changing way families use technology.

The company is best known for its family location and safety app. That may sound simple, but I think the emotional value of the product is what makes it interesting.

Parents want to know their kids have arrived safely. Families want to stay connected without sending constant messages. Drivers want support if something goes wrong. Older family members may want an extra layer of reassurance.

That gives Life360 a role in everyday family life, not just occasional app usage.

The business also has several avenues for growth from here. Subscriptions remain important, but advertising, roadside assistance, driving insights, location-based tools, and artificial intelligence (AI) features could all add to the opportunity over time.

What I like most is that Life360 already has scale with almost 100 million monthly active users. A large user base gives the company room to improve monetisation without needing every dollar of growth to come from new users.

There are risks to consider, including privacy expectations, competition, and the need to keep users engaged. But I think Life360 has the sort of global consumer platform that could become much more valuable over the next decade.

Hub24 Ltd (ASX: HUB)

Hub24 is another ASX growth share I rate highly.

The company provides investment platform technology used by financial advisers and their clients.

I think it is a very attractive niche. Financial advice is becoming more demanding. Clients may have superannuation, managed accounts, pensions, tax considerations, estate planning needs, and changing goals. Advisers need systems that help them manage that complexity without drowning in administration.

Hub24 sits right in that workflow.

The appeal is not only about the growth of funds under administration. It is the way modern platforms can become central to an advice practice. Once advisers are using a platform every day, switching can be inconvenient and costly.

I also think there is still plenty of room for market share gains. Wealth management in Australia is large, and advisers continue to look for better technology, better service, and more efficient tools.

Competition remains strong, and platform businesses can be sensitive to market falls. But I think Hub24 has built a strong brand in an industry where trust and service quality matter.

Breville Group Ltd (ASX: BRG)

Breville is a different kind of growth share.

It is not a software platform or app business. It is a premium appliance company with a global brand.

What I like about Breville is that its best products can become part of daily routines. Coffee machines are the clearest example. For many customers, at-home coffee is not a one-off purchase decision. It becomes a habit.

That gives Breville a strong foundation if it can keep designing products that feel premium, useful, and worth paying more for.

I also think the company still has international growth potential. A good brand can travel if the product quality, design, distribution, and pricing are right.

There are risks around consumer spending, competition, tariffs, and currency movements. But I like Breville’s mix of brand strength, product innovation, and global opportunity.

Foolish takeaway

The shares I like most for long-term growth are not always the loudest names in the market.

I am drawn to companies that can become more useful to their customers over time. Life360 can deepen its role in family safety, Hub24 can become more important to financial advisers, and Breville can keep building a global premium appliance brand.

If these businesses keep improving, I think they could reward patient investors over the years ahead.

The post 3 ASX growth shares I’d buy to build long-term wealth appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Pro Medicus Ltd (ASX: PME) shares are down more than 40% over the past 12 months, and in the next couple of weeks, the price might come under more pressure.

Index changes loom

That’s because S&P Dow Jones has just issued its quarterly rebalancing of the various indices, and Pro Medicus is set to be dropped from the S&P/ASX 50 Index (ASX: XFL), with minerals analysis company ALS Ltd (ASX: ALQ) to join.

The removal of Pro Medicus comes despite the company recently announcing several contract wins, including a five-year, $28 million contract renewal with Allegheny Health Network in the US.

Removal from an index can trigger the selling of a stock, as funds that track indices sell out of dropped stocks and buy into added ones.

With regard to the S&P/ASX 100 Index (ASX: XTO), uranium company Paladin Energy Ltd (ASX: PDN) will join the index, while grocery company Metcash Ltd (ASX: MTS) will be dropped.

Paladin shares are currently up 43.9% over a 12-month period, with Macquarie recently issuing a price target of $13.25 for Paladin shares compared to $9.52 currently.

Macquarie said Paladin had successfully ramped up production at its Langer Heinrich mine in Namibia and was also making “real progress” on its Patterson Lake South approvals in Canada.

Paladin recently reported that for the March quarter it had produced 1.29 million pounds of uranium at Langer Heinrich, up 5% from the previous quarter, “driven by strong processing plant performance”.

The Patterson Lake South Project had also had its environmental impact statement approved.

In the S&P/ASX 200 Index (ASX: XJO), there will be nine changes in all, with Elevra Lithium Ltd (ASX: ELV), Electro Optic Systems Ltd (EOS), Firefly Metals Ltd (ASX: FFM), and Kingsgate Consolidated Ltd (ASX: KCN) being added.

The companies being removed are Minerals 260 Ltd (ASX: MI6), Guzman Y Gomez Ltd (ASX: GYG), IDP Education Ltd (ASX: IEL), SiteMinder Ltd (ASX: SDR), Temple & Webster Group Ltd (ASX: TPW), and Web Travel Group Ltd (ASX: WEB).

Elevra shares are up an impressive 310.4% over the past year; however, the stock has come off a bit recently.

The company raised $275 million in an institutional placement in mid-May at $12.20 per share; however, the shares are now changing hands for $10.46.

Another large capital raise

Electro Optic Systems meanwhile is in the midst of a capital raise, having raised $150 million at $8 a share.

Shareholders in the company were also able to subscribe for up to $30,000 worth of shares at the same price, with that process ongoing this week.

EOS shares are currently changing hands for $9.98, meaning the raise is well in the money at the moment. Shareholders will find out on Friday how many shares they have been allocated.

The index rebalances will take effect from 22 June.

The post Why might Pro Medicus shares soon be under pressure? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has positions in Electro Optic Systems and Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems, SiteMinder, and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Pro Medicus and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I have owned Wesfarmers Ltd (ASX: WES) shares for many years now. I love the company, and its shares are a proud pillar of my personal ASX share portfolio.

The Wesfarmers shares that I purchased years ago have done very well for me, delivering both healthy capital growth and a treasured source of passive dividend income.

Wesfarmers brings many benefits to my portfolio. For one, it is an inherently diversified business. Most investors know Wesfarmers for its retail crown jewels – Kmart, OfficeWorks, Target, and last but not least, Bunnings. But Wesfarmers is much more than these four names. It also owns the Priceline pharmacy chain, chemicals and fertiliser manufacturing businesses, industrial safety operations, and many more facets.

For another, those crown jewel retailers are some of the most successful businesses in the country. Most of us are familiar with the Bunnings success story. But Wesfarmers has also managed Kmart, OfficeWorks and Target with aplomb. Kmart’s success with its Anko brand is a notable achievement for Wesfarmers in recent years.

Wesfarmers has proven itself to be an astute manager of capital over many decades. It has delivered for shareholders, in both the growth and income arenas.

Yet, I haven’t added to my Wesfarmers position for a very long time. I have no plans on doing so.

Why?

Well, it all comes down to price and value. As Warren Buffett once famously said, “price is what you pay, value is what you get”.

Wesfarmers shares: Price and value

At the current Wesfarmers share price, I simply don’t see much value.

At the present price of $82.22, you are buying a company worth about $93.3 billion, trading on an earnings multiple of 30.45.

For this, you are getting a company that generated $45.7 billion in revenue over FY2025 and an underlying net profit after tax of $2.65 billion. That latter metric represented a 3.8% rise over what Wesfarmers rang up over FY2024.

This all looks pretty expensive. To illustrate, companies that are growing at far faster rates than Wesfarmers are currently trading at far lower prices. Google-owner Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) and Facebook-owner Meta Platforms Inc (NASDAQ: META) grew profits by a lot more than 3.8% over their most recent financial years. And both currently ask well under an earnings multiple of 30.45. As of recent pricing, Alphabet is at 27.8, while Meta is at 21.2.

Of course, that is not an overly useful comparison, as Wesfarmers is a metaphorical apple and US tech titans are oranges. But, to labour the point, I think this shows just how pricey Wesfarmers shares are at their current ask.

One only has to look at CSL Ltd (ASX: CSL) and Commonwealth Bank of Australia (ASX: CBA) shares to see what happens when valuations get stretched. This is another apples-to-oranges comparison, but again, I think it is an apt point to highlight.

So, long story short, I won’t be buying any more Wesfarmers shares at the current valuation. I would love to increase my exposure to this stellar ASX blue-chip stock. But at the current price we are being asked to pay, I don’t see much value we might get.

The post I love Wesfarmers shares. Here’s why I’m not buying more appeared first on The Motley Fool Australia.

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

James Hardie Industries plc (ASX: JHX) shares have climbed higher into the green in Wednesday’s trade.

At the time of writing, the shares are up around 5% for the day, and changing hands at $32.74 a piece.

Today’s increase means the cement manufacturer’s shares have now rebounded around 26% from a six-month dip in mid-May. The shares have also recouped any losses shed after a dip yesterday.

James Hardie shares are now just over 6% higher year to date, but are still 20% lower than 12 months ago.

Why are James Hardie shares rebounding?

James Hardie’s share price dipped to just $26.02 on the 18th of May as dwindling investor sentiment caused many to shy away from the stock.

But the following week, the global fibre cement manufacturer’s shares started climbing higher after it posted its fourth-quarter FY26 results.

The result was mixed but came in ahead of expectations and some previous guidance figures. 

The company posted a 25% year-on-year increase in net sales driven by additional sales from its acquisition of AZEK, a US-based outdoor building products company.

Excluding that acquisition, organic net sales declined by 2% from FY25. And on the bottom line, the company reported a 75% year-on-year decline in NPAT.

Meanwhile, adjusted EBITDA was up 17% year on year, coming in above previous guidance figures.

It looks like the stabilised earnings result reignited investor confidence.

Why are the shares climbing higher today?

The share price has rebounded again after a temporary dip on Tuesday. 

In a statement to the ASX yesterday, James Hardie said it has been served with a group proceeding filed in the Supreme Court of Victoria.

The company said the proceeding includes allegations that it breached the Corporations Act, the ASIC Act, and the Australian Consumer Law. The claim also includes allegations relating to continuous disclosure obligations and statements made about expected financial performance.

But James Hardie pushed back against the allegations. It said it considers that it has complied with its disclosure obligations at all times, that it denies any liability, and will “vigorously defend” the proceedings.

After a brief sell-off, it seems that investors have concluded that James Hardie shares are still a good buy at the current trading price.

The question now is, how much further can the shares climb?

What do analysts tip for James Hardie shares over the next 12 months?

Brokers are very bullish on the outlook for James Hardie shares and some tip a large upside ahead.

TradingView data shows that 17 out of 22 analysts have a buy or strong buy rating on the stock. The average $36.61 target price implies a potential upside of around 12% at the time of writing. Meanwhile, the $43.16 maximum target price suggests the shares could increase by around another 32% over the next 12 months.

Morgans currently has a buy rating and $29 target price on the shares. The broker said it still sees the shares as undervalued at current levels. Morgans added that FY26 could be “chalked up” as a transformational but financially dilutive year. 

The post James Hardie shares rebound 26% from a dip last month: Buy, sell or hold? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.

Northern Star Resources Ltd (ASX: NST) shares are having another rough session on Wednesday.

At the time of writing, the Northern Star share price is down 2.97% to $18.65.

The latest decline puts more pressure on a stock that has already had a difficult run. Northern Star shares are now down around 12% over the past month and more than 30% in 2026.

That’s a heavy fall for one of Australia’s largest gold miners, especially while gold prices remain elevated.

Here’s what has investors watching the stock today.

Northern Star pushes back on sale talk

The latest focus is on activist investor Elliott Investment Management.

Elliott has built a stake in Northern Star and has been pushing the company to consider bigger changes, including a potential sale or strategic review.

But Northern Star’s board has now made clear it does not believe this is the right time to run a sale process.

According to The Australian, Chairman Michael Chaney told investors the board is happy to engage with Elliott and consider constructive suggestions.

However, he also said the company remains focused on its own plans, including the search for a new Chief Executive.

Northern Star is looking for a replacement for outgoing boss Stuart Tonkin.

The board is also looking to add a new Director with deeper gold mining experience, while Chaney is due to retire in November.

Why investors are selling

It appears that some investors may have been hoping for a bigger response from the company.

A formal sale process could have opened the door to a takeover premium, especially after such a heavy fall in the share price.

Instead, Northern Star appears to be taking a slower path. The company wants to sort out its leadership transition before making any major call on a sale.

The board has said it remains open to serious outside approaches. It has also held talks about potential combinations with other companies in the past, although those discussions did not lead to a deal.

Northern Star has also looked at possible asset spin-offs, but the board appears comfortable keeping the current portfolio under review.

Ultimately, this seems to have disappointed investors who were looking for a faster fix.

Is the sell-off creating value?

After a 30% fall this year, Northern Star is starting to look cheaper than it did a few months ago.

The company still has a large gold portfolio, a market capitalisation of about $26.6 billion, and a dividend yield close to 3%.

That may catch some bargain hunters, but the discount comes with a few unanswered questions.

Investors still need to see who takes over as CEO, how the board responds to Elliott, and whether the portfolio review leads to any meaningful changes.

Until there’s more clarity, many would be happy to watch from the sidelines.

The post Northern Star shares tumble as takeover hopes fade appeared first on The Motley Fool Australia.

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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.

Elon Musk’s SpaceX (NASDAQ: SPCX) IPO is almost here, with retail investors expected to play a bigger part in the offer than usual.

The company is expected to begin trading on the Nasdaq this week under the ticker SPCX, with the IPO price reportedly set at US$135 per share.

That would value SpaceX at about US$1.77 trillion, making it one of the largest companies on the US market from day one.

But the size of the float isn’t the only reason this listing is getting attention.

SpaceX is giving everyday investors a bigger piece of the pie than they normally get in a float of this size.

Retail investors are getting a bigger slice

According to The Wall Street Journal, Musk is expected to reserve a large portion of the SpaceX IPO for individual investors.

The report said retail buyers could receive around 20% or more of the offer, compared with the 5% to 7% often seen in major floats.

That gives us smaller investors a rare chance to buy into a company that has been private for more than two decades.

SpaceX is already a household name by IPO standards.

Its reusable rockets, Starlink satellite internet business, NASA work, defence contracts, and longer-term space ambitions have made it one of the best-known private companies in the world.

So, there will be plenty of investors who want exposure to the SpaceX brand before looking too closely at the numbers.

This is why the retail allocation deserves a closer look.

Getting access to a popular IPO can feel like a win. But investors are still being asked to buy into SpaceX at one of the highest valuations ever attached to a market debut.

And while the stock may still list strongly, investors should not mistake the size of the allocation for a bargain.

A quick Nasdaq-100 path

The other part to watch is what happens after SpaceX starts trading.

Nasdaq has reportedly given the company a quicker route into the NASDAQ-100 Index (NASDAQ: NDX), with SpaceX potentially eligible after just 15 trading days.

If SpaceX is added to the index, funds that track the Nasdaq-100 would likely need to buy the stock. That could add more demand soon after the IPO, especially if only a small number of shares are available to trade at first.

It also means some investors may end up owning SpaceX indirectly through ETFs or super funds, even if they decide not to buy the shares themselves.

However, the S&P 500 Index (SP: .INX) is a different story.

Reports suggest S&P has rejected a fast entry for SpaceX because companies usually need to be profitable before joining the index.

SpaceX reportedly lost US$4.9 billion last year, which makes the S&P 500 decision less surprising.

Foolish Takeaway

Without doubt, SpaceX is a remarkable company, and the IPO will probably attract huge demand.

A famous founder, a huge brand, a limited supply of shares, and forced index buying could all help support the stock early on.

But at nearly US$1.8 trillion, SpaceX is coming to market with a lot of future growth already built into the price.

That leaves very little room for disappointment if profits take longer to arrive, or if investors start looking past the SpaceX excitement.

The post Elon Musk wants everyday investors in the SpaceX IPO. Is that a red flag? appeared first on The Motley Fool Australia.

More reading

• Why might Pro Medicus shares soon be under pressure?
• I love Wesfarmers shares. Here’s why I’m not buying more
• James Hardie shares rebound 26% from a dip last month: Buy, sell or hold?
• Northern Star shares tumble as takeover hopes fade
• How high could Wesfarmers shares go?

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.

Wesfarmers Ltd (ASX: WES) shares have climbed into the green again in Wednesday’s trade. 

At the time of writing, the Australian conglomerate’s share price is up around 3% and trading at $82.04 per share.

Today’s price increase follows a run of gains over the past three weeks. Since bottoming at a 52-week low in mid-May, Wesfarmers shares have rebounded over 15%.

Now the question is, can they keep going?

What happened to Wesfarmers shares this year?

Global volatility, concerns about inflation, and the rising cost of living smashed the retail giant’s shares in early 2026. 

Wesfarmers reported a solid half-year profit earlier this year, with NPAT up 9.3%, but investors focused on weaker-than-expected trading in the early weeks of the second half. On paper, the result looked good, but investors weren’t impressed, and many quickly sold up their shares.

The downturn was exacerbated by an overall shift in the market from retail-heavy stocks, such as Wesfarmers, to energy assets during periods of peak volatility.

After initially climbing around 9% through the first six weeks of the year, Wesfarmers shares crashed over 20% to a low in mid-May.

But it looked like investors then concluded the Wesfarmer share sell-off had become excessive.

Why did sentiment turn?

Over the past month, markets have become more optimistic about the potential for future interest rate cuts, and investors have started buying back shares in high-quality stocks in the dip.

A couple of good-news announcements also helped rally investors.

Earlier this month, Wesfarmers announced a major business restructuring, stating that the Industrial and Safety businesses, Blackwoods and Workwear Group, will transition into Wesfarmers-owned Bunnings Group on the 1st of July.

Wesfarmers shares are pushing higher again today after the company posted its 2026 Strategy Briefing Day presentation. The company said it is accelerating its growth and productivity agenda, has a portfolio of high-quality businesses with a mix of growth and resilience, and retains a strong balance sheet with the flexibility to invest. 

Can the conglomerate’s shares keep climbing higher in 2026?

It looks unlikely.

In fact, it seems that analysts now consider Wesfarmers shares to be trading above fair value, with many tipping a downside ahead.

Market Index data shows the majority of brokers rate Wesfarmers shares as a hold. The $78.05 target price implies a potential downside of around 2.5% at the time of writing.

TradingView data also shows that the majority (seven out of 12 have a hold rating on the stock). However, the average target price of $74.36 implies Wesfarmers shares could drop around 10% from the current trading price.

John Athanasiou from Red Leaf Securities has a hold rating on Wesfarmers shares. He said that while Wesfarmers is able to generate steady returns across cycles, near-term growth is likely to remain subdued. 

Meanwhile, Philippe Bui from Medallion Financial Group is a little more bearish. He put a sell rating on this ASX 200 consumer discretionary share earlier this month. The broker said that while Wesfarmers is a high-quality business, the outlook is softening. 

The post How high could Wesfarmers shares go? appeared first on The Motley Fool Australia.

More reading

• I love Wesfarmers shares. Here’s why I’m not buying more
• Why Develop Global, IDP Education, JB Hi-Fi, and Wesfarmers shares are pushing higher today
• Why are Wesfarmers shares pushing higher today?
• 5 things to watch on the ASX 200 on Wednesday
• 3 ASX stocks I’d buy during a sharemarket crash

Motley Fool contributor Samantha Menzies 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 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.

Coles Group Ltd (ASX: COL) shares are charging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $22.61. During the Wednesday lunch hour, shares are changing hands for $23.09 apiece, up 2.1%.

For some context, the ASX 200 is up 0.3% at this same time.

Taking a step back, Coles shares have also strongly outpaced the benchmark index so far in 2026.

While the ASX 200 has dropped 1.1% year to date, Coles stock is up 8.3%.

And that doesn’t include the fully-franked 41 cents per share dividend the company paid eligible stockholders on 30 March.

Adding in the 32 cents final dividend, paid on 22 September, and Coles trades on a 3.2% fully-franked trailing dividend yield.

And looking ahead, Morgans’ Damien Nguyen believes Coles is well-placed to keep outperforming over the coming months (courtesy of The Bull).

Here’s why.

Should I buy Coles shares today?

“The supermarket operator offers a resilient, non-discretionary earnings base,” Nguyen said.

“Demand for consumer staples remains stable through economic cycles, and Coles benefits from pricing discipline across a duopolistic market structure,” he added, citing the first reason he has a buy rating on Coles shares.

And, despite outperforming the ASX 200, Coles stock remains down more than 4% from last September’s highs.

“Recent share price weakness, driven partly by broader cost-of-living and regulatory scrutiny concerns, has created a more attractive entry point for long term investors,” Nguyen said.

Which brings us to the third reason you might want to buy the ASX 200 supermarket giant today.

Namely, passive income.

“The company also offers a solid dividend yield and improving operational leverage,” Nguyen concluded.

What’s been happening with the ASX 200 supermarket?

Coles shares closed up 3.7% on 1 May after the company reported its third-quarter (Q3 FY 2026) results, covering the 12 weeks from 5 January to 29 March.

Highlights from the quarter included a 3.1% year-on-year increase in revenue to $10.70 billion.

Coles’ eCommerce division showed particularly strong growth, with eCommerce sales up 24.8% year on year to $1.33 billion.

“We delivered another strong sales result reflecting the strength of our customer offer and disciplined execution against our strategic priorities,” CEO Leah Weckert said.

Weckert noted:

Achieving consistent sales momentum for the period over multiple years demonstrates our commitment to remaining focused on long term outcomes whilst successfully navigating short term volatility in market conditions and supply chains.

Looking at what could impact Coles shares in the months ahead, the company said it expects to maintain supermarket sales growth into the fourth quarter (Q4 FY 2026).

The post 3 compelling reasons to buy the rebound in Coles shares today appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Coles, BHP, CBA shares
• Why Coles and Woodside shares are being tipped as buys
• Here’s the dividend forecast out to 2028 for Coles shares
• This beaten-down ASX 200 stock just jumped 5%. Is the market too negative?
• Top brokers name 3 ASX shares to buy now

Motley Fool contributor Bernd Struben 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.