Data centre companies have been a hot property over the past year as the rapid uptake in artificial intelligence has driven the need for large amounts of computing power.

One of the beneficiaries of this has been Megaport Ltd (ASX: MP1), which delivered a record first-half result back in February.

The Citi team have had a look at the company and has a seriously bullish price target on the company’s shares, which we’ll get to later.

Strong demand for services

Firstly, let’s look at why they’re so enthusiastic about this stock.

One of the reasons is the rapid take-up of Megaport’s compute as a service offering, Latitude, which the company acquired in November last year.

The company said at the time:

This acquisition brings Megaport’s global Network as a Service (NaaS) platform together with Latitude.sh’s compute platform to build an industry-leading platform where network and compute converge globally. This positions Megaport at the heart of the hybrid cloud and AI-driven future.

The Citi team said Latitude’s graphics processing unit (GPU) capacity was sold out, which was a big positive.

According to Latitude’s announcement, they had added 1,000 GPUs earlier this year and assuming a per GPU monthly rental rate of ~US$1,500 and assuming 100% utilisation would imply incremental annual recurring revenue (ARR) of US$18 million from the new GPUs. This is likely overstated as there could be discounts that could be provided but compares to our incremental ARR forecast of US$12.5 million in 2H26 and US$19 million in 1H27. The surge in GPU rental demand, Latitude’s GPUs being sold out, as well as Latitude increasing prices, suggest upside risks to our Latitude ARR and FY27 revenue forecasts all else equal.

Citi said prices seem to have gone up as well.

Big first half

Megaport themselves said, in releasing their first-half results in February, that it was a record half, with ARR up 49% year on year to $338 million.

Chief Executive Michael Reid said at the time:

Our team delivered an outstanding first half performance, demonstrating the strength and resilience of the underlying business. Importantly, we achieved this while completing two strategic acquisitions and executing a successful capital raise. These initiatives extend our platform into adjacent markets and position Megaport for accelerated growth across Network, Compute, and AI.

Megaport’s guidance for the full year was for revenue of $302 to $317 million, and EBITDA of 21% to 24% of revenue.

Citi’s price target on Megaport shares is $14.65, compared to the current price of $8.49.

Megaport was valued at $1.45 billion at the close of trade on Thursday.

The post Shares in this $1.4 billion ASX data centre company could jump by 72% Citi says appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 stocks leaping higher in this week’s slumping market
• 3 ASX 300 shares that could be much bigger in 5 years
• Down 50%, but could these top ASX tech stocks double from here?
• Where to invest $10,000 in ASX shares in April
• Leading brokers name 3 ASX shares to buy today

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Cameron England has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week in the red. At the time of writing, the benchmark index is down 0.35% to 8,923.1 points.

Four ASX shares that are falling more than most on Friday are listed below. Here’s why they are ending the week in the red:

Dateline Resources Ltd (ASX: DTR)

The Dateline Resources share price is down 11% to 32.5 cents. This follows media reports about legal proceedings in the United States. The company notes that the proceedings relate “to the exercise of the long standing valid existing rights to conduct mining activities at the Colosseum Gold and Rare Earths Project.” The company stated: “Dateline considers that the reporting and the position advanced by the applicants, as described, do not fully reflect the relevant historical context, including the status of valid existing rights associated with the Colosseum Gold and Rare Earths Project, and the Company does not agree with the assumptions made.”

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down 2.5% to $23.73. Investors have been selling Northern Star shares despite there being no news out of it. However, it is worth noting that most ASX gold stocks are falling today. This has seen the S&P/ASX All Ordinaries Gold index drop 2.2% in afternoon trade.

Rox Resources Ltd (ASX: RXL)

The Rox Resources share price is down 5% to 44.7 cents. This morning, this gold developer released its quarterly update. For the quarter, the company recorded a cash outflow of $31.9 million. However, it finished the period with a hefty cash balance of $200.4 million. Management also advised that it is taking steps to protect itself from the impacts of the war in the Middle East. This includes an increase in fuel storage capacity at Youanmi. It has increased its fuel storage from 190kL in March to over 430kL in mid-April. An additional fuel supply contract has been entered into.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is down 1.5% to $72.88. This may have been driven by a broker note out of Citi this morning. According to the note, the broker has downgraded the Bunnings owner’s shares to a sell rating (from neutral) and cut its price target to $69.00 (from $90.00). Citi believes that elevated fuel prices and interest rates will weigh on consumer spending in the near term.

The post Why Dateline Resourcs, Northern Star, Rox Resources, and Wesfarmers shares are dropping today appeared first on The Motley Fool Australia.

More reading

• Why this ASX mining high-flyer just dropped 14% in a day
• Should you buy Wesfarmers shares amid rising profits and revenues?
• 5 things to watch on the ASX 200 on Thursday
• 10 years to retirement? Here’s how to build a solid income
• How I would build the ultimate beginner portfolio with $10,000

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 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.

With only a few hours of trade left before Friday’s closing bell, the S&P/ASX 200 Index (ASX: XJO) is down 0.4% for the week, despite the best lifting efforts of these three ASX 200 stocks.

All three of the outperforming stocks on my list for the week have strong technology links. And all three are up more than 20% for the week.

Which fast-rising ASX 200 shares am I talking about?

Read on!

WiseTech Global Ltd (ASX: WTC) shares join tech rally

WiseTech Global shares are setting the bar high this week.

Shares in the logistics software solutions company closed last Friday trading for $37.63. At the time of writing, shares are swapping hands for $46.50.

That sees this ASX 200 stock up 23.6% in this week’s slumping market.

There’s no price-sensitive news out from WiseTech this week. But ASX tech stocks have broadly outperformed this week, as witnessed by the 9.8% weekly gain in the S&P/ASX All Technology Index (ASX: XTX).

This broader outperformance comes amid hopes of successful negotiations in the Iran war. An end to the conflict would ease global inflationary pressures and the resultant pressures for central banks to boost interest rates. And tech stocks like WiseTech have proven to be sensitive to rate increases.

Moving on…

ASX 200 stock Megaport Ltd (ASX: MP1) rebounds from lows

The second ASX share screaming higher in this week’s sinking market is Megaport.

Shares in the network-as-a-service solutions provider closed last week trading for $6.71 and are currently changing hands for $8.53 each. That sees this ASX 200 stock up 27.1% for the week.

There’s also no fresh price-sensitive news out from Megaport this week. Like WiseTech, the stock looks to be benefiting from broader improved investor sentiment in the tech sector. And with Megaport shares trading at a multi-year closing low last Friday, investors look to have been bargain hunting.

Zip Co Ltd (ASX: ZIP) shares rocket on Q3 results

The fastest rising stock on my list for the week is Zip.

Shares in the buy now, pay later (BNPL) company closed last Friday trading for $1.85. At the time of writing, shares are trading for $2.37 each, putting this ASX 200 stock up a whopping 28.1% over the week.

A lot of those gains are being delivered today.

Zip shares are up 15.4% in afternoon trade following the release of the company’s third-quarter (Q3 FY 2026) results.

Investors are piling into Zip shares today, with the BNPL stock reporting a 22.4% year-on-year increase in total transaction volume (TTV), which reached $4 billion.

And Zip achieved all-time high quarterly earnings, with earnings before tax, depreciation and amortisation (EBTDA) of $65.1 million, up 41.5% from Q3 FY 2026.

Zip also upgraded its full-year FY 2026 cash EBTDA guidance to no less than $260 million.

The post 3 ASX 200 stocks leaping higher in this week’s slumping market appeared first on The Motley Fool Australia.

More reading

• Shares in this $1.4 billion ASX data centre company could jump by 72% Citi says
• Why Eden Innovation, Elsight, Paladin Energy, and Zip shares are racing higher today
• Why Paladin Energy, Alcoa and Zip shares are making headlines on Friday
• Why are Zip shares rocketing 24% today?
• Zip Co posts record cash EBTDA and upgrades FY26 guidance

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 positions in and has recommended Megaport and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Qantas Airways Ltd (ASX: QAN) shares are drifting lower on Friday, giving back ground despite a steady recovery earlier this month.

At the time of writing, the Qantas share price is down 0.60% to $9.105. That leaves the stock sitting roughly 12% lower for 2026, even after bouncing from recent lows.

The move comes as fresh filings and external reporting highlight activity happening behind the scenes.

Here’s what investors are looking at.

A large institutional buyer steps in

According to The Australian, AustralianSuper has been building a position in Qantas as the share price weakened through March.

Regulatory filings show the super fund has now emerged as a substantial holder, with a stake of about 5.3%. That equates to roughly $723 million at current market prices.

The buying appears to have been spread across several weeks. The largest single-day purchase was around $100 million worth of shares on 20 March.

Accumulation has continued into April, including further buying around the time Qantas flagged a material increase in fuel costs.

The purchases were made during a period of share price weakness and rising fuel cost concerns.

Buying through weakness raises interest

Qantas has been dealing with a mix of falling share prices and elevated cost pressures.

Management recently indicated that higher fuel prices could add between $500 million and $800 million to its fuel bill. The airline has also flagged capacity adjustments and pricing responses.

These factors have weighed on the share price across recent months.

Despite that, AustralianSuper has continued to build its position, pointing to a longer-term view on earnings instead of focusing on near-term cost pressure.

The fund already has exposure to airport infrastructure through IFM Investors, including stakes in Melbourne and Sydney airports.

Share price still reflects a reset year

Even with recent buying support, the share price still shows the impact of changing expectations in 2026.

After a strong run in prior periods, the stock has spent much of this year adjusting to a different operating backdrop.

Fuel costs, capacity settings, and pricing power have all come back into focus. This has changed how the market is valuing near-term earnings.

The recent lift shows buying at lower levels, though the stock is still below earlier highs.

Foolish Takeaway

I see Qantas as one of those stocks many investors end up owning over time. It is Australia’s national carrier, with a position that is hard to replicate and tied closely to domestic travel demand.

People still need to fly, whether for work, family, or holidays, which underpins demand across the cycle. Earnings can move with fuel costs and economic conditions, but the core business remains well supported.

For me, it sits more as a long-term hold than a short-term trade.

The post Why a $700 million move into Qantas shares is turning heads today appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
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• Why Westpac, Cleanaway and Qantas shares are catching ASX investor interest on Tuesday
• Qantas shares dip after fresh market update puts FY26 in focus

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.

If I were lucky enough to have $5,000 to invest today, I would focus on finding a handful of businesses that are building something durable, with growth supported by long-term trends.

Here are four ASX 200 shares I think offer these qualities, and I would be looking at today.

Hub24 Ltd (ASX: HUB)

Hub24 is a business that benefits from momentum. Not the kind you see in share price charts, but the kind that builds within an industry over time. Once a financial adviser adopts an investment and superannuation platform, integrates it into their workflow, and brings clients onto it, that decision tends to stick.

What I like is how that creates a layering effect. New clients are added, existing clients grow their portfolios, and over time, the platform becomes more deeply embedded in the advice process. Growth does not rely on a single catalyst; it builds gradually as the ecosystem expands.

For me, it is a business where scale can quietly do a lot of the work over the long term.

REA Group Ltd (ASX: REA)

REA Group is one of those ASX 200 shares where the product is almost unavoidable.

Anyone who has searched for property in Australia has likely interacted with its platform, and that kind of reach creates a strong position in the market.

What I like in particular is how pricing power shows up. Agents are not just paying for a listing; they are paying for visibility in a highly competitive environment. When demand for property is strong, that visibility becomes even more valuable.

It is a business that sits at the heart of real estate activity and digital advertising, and I think that combination gives it a unique ability to grow over time without needing to constantly reinvent itself.

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare is another ASX share I’d look at buying with the $5,000.

Following its merger with Chemist Warehouse, the business now sits across both distribution and retail, which creates a more integrated model than it had in the past.

What I find compelling is how that changes its position in the supply chain. Instead of being one step removed, the company is now more directly connected to the end customer. That can create efficiencies, improve margins, and open up new opportunities over time.

It is still early days for this combined structure, but I think the long-term potential lies in how those two sides of the business work together.

ResMed Inc (ASX: RMD)

ResMed has had a tough run, with the share price hitting a 52-week low on Friday.

That kind of move can draw attention, but what matters more to me is what is happening within the business.

ResMed operates in sleep and respiratory care, and demand in that area is closely linked to awareness and diagnosis. As more people recognise the importance of sleep health, more patients enter the system, which can support long-term growth.

As well as devices, the company has a growing software business. It is about managing patient outcomes over time, which can create a more connected and recurring relationship with users.

In my opinion, that combination of hardware and software is what makes the business stand out.

Foolish Takeaway

If I had $5,000 to invest today, I would focus on ASX 200 shares that are building long-term momentum in different ways.

Hub24 is benefiting from structural growth in platform-based investing, REA Group continues to strengthen its position in digital property advertising, Sigma Healthcare is evolving into a more integrated healthcare business, and ResMed is building a broader ecosystem around sleep and respiratory care.

I think they offer a mix of growth drivers that could play out over time and deliver attractive returns.

The post If I had $5,000 to invest in ASX 200 shares today, here’s what I’d buy appeared first on The Motley Fool Australia.

More reading

• Down 38% this year, is it finally time to buy low on CSL, ResMed and Pro Medicus shares?
• Why I’d buy these ASX 200 stocks if I were a beginner
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• 5 ASX growth shares to buy and hold for 5 years
• Where to invest $500 in ASX shares right now

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 ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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.

The S&P/ASX 200 Index (ASX: XJO) is having a subdued finish to the week. In afternoon trade, the benchmark index is down 0.3% to 8,925.3 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Eden Innovations Ltd (ASX: EDE)

The Eden Innovations share price is up 22% to 22 cents. Investors have been buying the concrete admixture developer after it announced the EdenShield division. It is a new dedicated Defence, Military and Infrastructure division. Management advised that it has been created to commercialise the company’s product suite across critical infrastructure and national security applications. This includes drones, data centres, bunkers, military bases, hospitals, and defence-related buildings. Eden Innovations’ executive chair, Greg Solomon, said: “The establishment of EdenShield represents a significant strategic step for Eden as we position our technologies to address the rapidly growing global demand for defence capability and infrastructure resilience.”

Elsight Ltd (ASX: ELS)

The Elsight share price is up almost 6% to $7.19. This may have been driven by a broker note out of Bell Potter this morning. This morning, the broker retained its buy rating on the shares of the supplier of communication modules to drone manufacturers with an improved price target of $8.00 (from $5.80). It said: “We retain Buy. We believe ELS has developed a market leading product that is leveraged to the proliferation of unmanned systems in both a defence and commercial context. We believe ELS shares offer relative value versus listed peers at 43x CY26e EV/EBIT given its recurring revenue, high ROIC business model and defensible niche.”

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is up 3% to $14.57. This morning, this uranium producer released an update on its performance in FY 2026. It advised that its Langer Heinrich Mine (LHM) has achieved year-to-date FY 2026 production of 3.6Mlb U3O8. As a result, management now expects U3O8 production of 4.5Mlb to 4.8Mlb for the 12 months. This is up from its previous guidance range of 4Mlb to 4.4Mlb.

Zip Co Ltd (ASX: ZIP)

The Zip share price is up 16% to $2.38. Investors have been fighting to get hold of the buy now pay later provider’s shares following the release of its third-quarter update. Zip reported record cash EBTDA of $65.1 million for the third quarter, which represents a 41.5% increase on the prior corresponding period. In light of its stronger than expected performance, management now expects group cash EBTDA of at least $260 million for the full year. This is up from its previous guidance of approximately $248.6 million.

The post Why Eden Innovation, Elsight, Paladin Energy, and Zip shares are racing higher today appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 stocks leaping higher in this week’s slumping market
• Up more than 10-fold over the past year, this ASX small-cap stock just jumped another 33%
• Why Paladin Energy, Alcoa and Zip shares are making headlines on Friday
• Looking for another DroneShield? Check out this buy-rated ASX defence stock
• Why are Zip shares rocketing 24% today?

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 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.

There is always something exciting happening in the share market.

A new technology trend, a speculative fast-growing company, or a sector that suddenly captures everyone’s attention. It is easy to get drawn toward those stories.

But over time, I think a different group of ASX shares tends to do a lot of the heavy lifting.

The ones that quietly grow, generate steady cash flow, and keep showing up year after year.

The appeal of predictable ASX shares

One of the things I value more as an investor is predictability.

Businesses that sell essential products or services often have a clearer path forward. Their revenue is not dependent on a single breakthrough or a narrow window of opportunity.

Companies like Woolworths Group Ltd (ASX: WOW) fall into that category.

Grocery retail is not the most exciting industry, but it is deeply embedded in everyday life. That creates a level of demand that can support consistent earnings over time.

For me, that consistency can make a big difference when holding a share for many years.

Compounding does not need excitement

The idea of compounding is simple, but the way it plays out is often underestimated.

A business that can grow earnings steadily, reinvest capital, and return cash to shareholders can build significant value over time, even if it does not attract much attention along the way.

That is part of what I see in ASX shares like Transurban Group (ASX: TCL).

Its toll road assets generate revenue from everyday usage, and those cash flows tend to grow gradually alongside population and economic activity.

It is not a story that changes dramatically from year to year, but that can be what supports long-term returns.

Stability can support better decisions

Another benefit of owning more predictable businesses is how they influence behaviour.

When a share price moves sharply, it can lead to more reactive decisions. Investors may feel the need to act, even when nothing fundamental has changed.

With steadier businesses, I think it can be easier to stay focused on the long term.

That is one reason I like companies such as Coles Group Ltd (ASX: COL) and Telstra Group Ltd (ASX: TLS).

They operate in a competitive industry, but demand for groceries and telco services remains consistent. That creates a level of stability that can make it easier to hold them through different market conditions.

The trade-off is worth understanding

Boring ASX shares are not perfect.

They may not deliver the same upside as faster-growing companies, and they can still face challenges over time. But they often offer something that I think is just as valuable.

A clearer path forward. That clarity can make it easier to stay invested, which is often one of the most important factors in long-term success.

Foolish Takeaway

The share market will always offer exciting opportunities. But for me, there is also value in owning businesses that quietly do their job and continue to grow over time.

I think Woolworths, Transurban, Coles, and Telstra highlight how the ASX shares that feel the least exciting are the ones that are easiest to hold, and that can make a meaningful difference over time.

The post Why I think ‘boring’ ASX shares could make you richer over time appeared first on The Motley Fool Australia.

More reading

• ASX 200 shares with renewed buy ratings this week
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• How to invest $300 a month in Australian shares to target a $50,000 annual second income
• The ASX shares I’d buy for passive income in April and beyond
• Just starting out? These 5 ASX shares could be the perfect first buy

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

Dateline Resources Ltd (ASX: DTR) shares are under heavy pressure on Friday, with the high-flying small cap pulling back after an extended run higher.

At the time of writing, the Dateline share price is down 13.70% to 31.5 cents. That extends a pullback of nearly 30% over the past week.

Despite the recent drop, the overall trend remains strong. The stock is up around 40% in 2026 and more than 5,000% over the past 12 months.

Today’s decline follows a fresh update released to the ASX.

Company responds to US legal coverage

According to the announcement, Dateline issued a response to recent media reporting in the United States tied to legal proceedings involving the Colosseum Gold and Rare Earths Project in California.

The proceedings have been brought by the National Parks Conservation Association and name US federal agencies as respondents. Dateline itself is not a named party in the case.

Management said the reporting does not fully reflect the historical context or the status of existing mining rights linked to the project. The company also stated it does not agree with some of the assumptions made in the coverage.

Dateline reiterated that activities at the Colosseum project are continuing in line with its approved plan of operations and existing rights.

The company added that it will keep monitoring developments and update shareholders on any material changes.

Flagship project remains central

The Colosseum Gold and Rare Earths Project remains the key asset driving investor interest.

Dateline owns 100% of the project, which sits in California’s Walker Lane Trend. The site has an existing gold resource and is also being assessed for rare earth potential.

Previous updates have pointed to economics supported by a gold price assumption above US$2,900 per ounce. The company has also been progressing work linked to rare earth exposure near the historic Mountain Pass region.

That combination has been a major factor behind the stock’s re-rating over the past year, as investors seek exposure to US-based critical minerals assets.

Volatility follows a rapid re-rating

Moves of this size are not unusual for the Dateline stock.

The share price surged through late 2025 and into 2026, driven by higher gold prices, rare earth interest, and project updates.

After such a strong run, the stock can become more sensitive to shifts in sentiment, even without any operational change.

Foolish takeaway

The company has not flagged any impact to operations, but the update adds some uncertainty around how the project may be viewed.

After such a large run, swings like this are not surprising.

From my side, I would rather watch this one from the sidelines. The volatility is high, and there are more stable opportunities elsewhere on the ASX.

The post Why this ASX mining high-flyer just dropped 14% in a day 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.

Wesfarmers Ltd (ASX: WES) shares are sliding today.

Shares in the diversified S&P/ASX 200 Index (ASX: XJO) conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks, and Priceline – closed yesterday trading for $74.06.

As we head into the Friday lunch hour, shares are changing hands for $72.60 apiece, down 2%.

For some context, the ASX 200 is down 0.5% at this same time.

Longer term, Wesfarmers shares are down 2.6% over 12 months, trailing the 13.9% one-year gains posted by the benchmark index.

Though that doesn’t include the $2.53 in fully-franked dividends the company has paid eligible stockholders over this time. Wesfarmers stock trades on a fully-franked trailing dividend yield of 2.5%.

Which brings us back to our headline question.

Should you buy Wesfarmers shares today?

Shaw and Partners’ Jed Richards recently ran his slide rule over Wesfarmers stock (courtesy of The Bull).

“This company continues to deliver reliable earnings through its diversified portfolio of quality retail and industrial businesses,” he said.

Digging into Wesfarmers’ half-year results (H1 FY 2026), released on 19 February, Richards said:

Company net profit after tax rose 9.3% in the first half of 2026 when compared to the prior corresponding period. Revenue was up 3.1%. Hardware giant Bunnings lifted total sales by 4%. Total sales at Officeworks were up 4.7%. Strong balance sheet discipline and management execution support resilience across economic cycles.

Despite that solid growth, Richards doesn’t believe now is the best time to buy Wesfarmers shares. He concluded:

Much of this is already reflected in the share price, limiting near term upside, in my view. While it remains a high-quality core holding, we believe a hold rating is appropriate until a lower share price or growth catalyst emerges.

Commanding a market cap of almost $83 billion, Wesfarmers shares trade on a price-to-earnings (P/E) ratio of around 27 times.

What’s the latest from the ASX 200 stock?

The last price-sensitive news out from Wesfarmers was the half-year report Richards mentioned above.

With profits up 9.3%, the company rewarded passive income investors with a fully franked interim dividend of $1.02 per share, up 7.4% from the prior year’s interim dividend payout.

Commenting on the half-year results, Wesfarmers managing director Rob Scott said, “Wesfarmers’ increase in profit was supported by strong earnings contributions from our largest divisions – Bunnings, Kmart Group and WesCEF.”

Scott added:

During the half, Wesfarmers’ divisions benefited from productivity initiatives to navigate ongoing challenging market conditions… The divisions performed well, driving productivity to mitigate cost pressures and keep prices low for customers.

Wesfarmers shares closed down 5.6% on the day of the results release.

The post Should you buy Wesfarmers shares amid rising profits and revenues? appeared first on The Motley Fool Australia.

More reading

• 10 years to retirement? Here’s how to build a solid income
• How I would build the ultimate beginner portfolio with $10,000
• Just starting out? These 5 ASX shares could be the perfect first buy
• Buy, hold, sell: CBA, Reece, and Wesfarmers shares
• 3 ASX dividend shares I’d buy for reliable passive income

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 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.

Shares in medical technology company Echo IQ Ltd (ASX: EIQ) hit a record high of $1.25 in early trade on Friday, but according to the team at Morgans, there’s potential for them to surge even higher.

Key new technology

So what does the company do?

EchoIQ has developed a technology it calls EchoSolv HF, which is software which allows clinicians to identify patients with heart failure using data from echocardiograms.

The company last month said it had struck an agreement with the Mayo Clinic in the US, which paved the way for the technology to be rolled out once it was approved by the US Food and Drug Administration.

As the company said at the time, the agreement with the Mayo Clinic followed a collaboration between the two organisations.

The expanded agreement follows a validation study conducted through the Mayo Clinic Platform validation program. The study met its primary endpoint, with EchoSolv HF demonstrating a sensitivity of 99.5% in identifying patients with heart failure and a specificity of 91.1% in correctly identifying patients without heart failure. These results have not been reviewed or cleared by the FDA and are subject to the FDA’s regulatory review process. Following this study, the Company lodged its market clearance application for EchoSolv HF with the FDA via the 510(k) premarket notification pathway. The Company advises that it is currently progressing through the FDA review process and will provide additional updates as developments materialise.

The company said the clearance had the potential to unlock a significant market opportunity, with heart failure a “substantial and growing burden on the US healthcare system”.

Share price upside remains

EchoIQ shares have appreciated substantially over the past year as the company has progressed its technology, improving from a low of 16.5 cents to be trading at a year-high of $1.25 today.

This is close to the Morgans target price of $1.30, but the analyst team at Morgans have flagged there’s further significant upside possible following FDA approval.

As they said:

We initiate coverage with a Speculative Buy rating and $1.30 price target with potential upside to $1.68 on approval/reimbursement, underpinned by near‑term FDA clearance, reimbursement progression, and a credible pathway to US commercial scaling. We expect a positive outcome from the EchoSolv HF FDA 510(k), due imminently, which unlocks the large, structurally undiagnosed US cardiac market. Combined with attractive unit economics and clear patient and hospital benefits, we see a high probability of rapid US adoption and monetisation.

Echo IQ was valued at $759.9 million at the close of trade on Thursday.

The post This ASX health tech stock just hit a new record high. Could it go even higher? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.