A new report from VanEck has highlighted the impressive resilience of the Australian market in recent years. 

It has weathered the pandemic, inflation and the fastest interest-rate tightening cycle in decades without falling into recession.

However VanEck believes this resilience should not be mistaken for strength. 

While inflation has eased from its peak, underlying price pressures remain among the highest in the developed world, business hiring intentions are softening and consumer confidence remains subdued. Together, they point to an economy that is slowing rather than stalling.

This combination of factors reinforces that investors’ portfolios should not be overexposed to the big banks and miners that dominate the ASX 200. 

VanEck contends that there are several reasons investors should look beyond simply tracking the S&P/ASX 200 Index (ASX: XJO). 

Trailing global equities

VanEck argues that simply buying the index is not always the most effective way to build wealth. 

The past financial year has brought this case to the fore more than ever.

Since the start of 2010, the S&P/ASX 200 has trailed the MSCI World, which tracks developed markets globally, in 11 of the past 17 financial years.

But the bigger concern is that the underperformance is getting worse. FY26 saw the underperformance run extend to four consecutive years, and the second biggest performance gap since 1996.

If Australia’s economy is entering a period of more subdued growth, investors should not be surprised if earnings growth becomes harder to find domestically. That strengthens the case for looking beyond a standard S&P/ASX 200 index fund.

The case for mid-caps 

According to the report, one option for investors looking to avoid overconcentration is to target mid-caps. 

One way to do this is through the VanEck S&P/ASX MidCap ETF (ASX: MVE). 

The fund focuses on Australia’s mid-cap companies, a part of the market that has historically offered an attractive balance between earnings growth and business maturity.

VanEck believes this could be a “sweet spot” of the market. 

They are typically more established than emerging small companies but still have meaningful scope to grow earnings. Analysts expect company profits in this part of the market to grow much faster than Australia’s largest companies, while valuations are still around their long-term averages.

MVE provides exposure to this often-overlooked part of the market through the S&P/ASX MidCap 50 Index. For investors looking to complement a large-cap Australian allocation, it offers access to businesses with greater growth potential, without moving too far down the risk spectrum.

The post The growing case for ASX mid-caps: Expert appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• PLS shares are down 28%. Are they a buy, hold, or sell?
• Why are Light & Wonder shares flying 9% higher today?
• 4 ASX shares rated a strong buy and with upsides of up to 109%
• This ASX gold stock could jump 150%: Broker

Motley Fool contributor Aaron Bell 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.

The S&P/ASX 200 Index (ASX: XJO) had a very interesting day indeed this Tuesday. For most of the session, it looked as though the market was destined for a red day. However, investors pick up the buying in late afternoon trading.

The ASX 200 didn’t record a gain for the day, though. It didn’t record a loss either. Instead, it ended the day exactly where it started. Yep, the index was completely flat this Tuesday, moving precisely 0.00% and finishing at the 8,808.5 points it was sitting at 24 hours ago. A rare occurrence indeed.

This fascinating result for the local markets followed a decisively negative night to kick off the American trading week on Wall Street, though.

The Dow Jones Industrial Average Index (DJX: .DJI) wasn’t in a good mood, dropping 0.26%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared even worse, falling 1.55%

But let’s return to ASX shares now, though and take stock of how the different ASX sectors navigated this Tuesday’s tepid trading conditions.

Winners and losers

As you may expect, we had a fairly even break between winners and losers this session.

Leading the latter were real estate investment trusts (REITs). The S&P/ASX 200 A-REIT Index (ASX: XPJ) was hit hard today, tumbling 1.64%.

Consumer staples shares didn’t hold their value either, with the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) tanking 0.81%.

Financial stocks also had a rough time. The S&P/ASX 200 Financials Index (ASX: XFJ) retreated 0.54%.

Industrial shares were on the nose too, illustrated by the S&P/ASX 200 Industrials Index (ASX: XNJ)’s 0.47% slide.

That’s it for the res sectors though, so let’s get to the winners. Leading said winners were energy stocks. The S&P/ASX 200 Energy Index (ASX: XEJ) rocketed 1.98% this Tuesday.

Utilities shares were in demand as well, with the S&P/ASX 200 Utilities Index (ASX: XUJ) soaring 1.37%.

Mining stocks ran hot too. The S&P/ASX 200 Materials Index (ASX: XMJ) surged 0.67% by the closing bell.

Healthcare shares were right behind that, as you can see by the S&P/ASX 200 Healthcare Index (ASX: XHJ)’s 0.66% jump.

Gold stocks were als in that ballpark. The All Ordinaries Gold Index (ASX: XGD) leapt 0.62% higher this session.

Consumer discretionary shares came next, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) advancing 0.39%.

Communications stocks got out ahead as well. The S&P/ASX 200 Communication Services Index (ASX: XTJ) lifted 0.21% today.

Finally, tech shares were lucky to come out intact, evident by the S&P/ASX 200 Information Technology Index (ASX: XIJ)’ was hit hard, plunging 2.48%.’s 0.07% bump.

Top 10 ASX 200 shares countdown

Gaming technology company Light & Wonder Inc (ASX: LNW) took out this Tuesday’s top spot. Light & Wonder shares vaulted 7.98% higher today to finish at $111.60 each. We dove into this jump earlier today.

Here’s how the other winners pulled up at the kerb: 

ASX-listed company	Share price	Price change
Light & Wonder Inc (ASX: LNW)	$111.60	7.98%
Domino’s Pizza Enterprises Ltd (ASX: DMP)	$16.75	4.95%
Seek Ltd (ASX: SEK)	$13.92	4.98%
IperionX Ltd (ASX: IPX)	$3.71	4.51%
WiseTech Global Ltd (ASX: WTC)	$34.75	4.29%
Karoon Energy Ltd (ASX: KAR)	$1.50	3.81%
Treasury Wine Estates Ltd (ASX: TWE)	$4.70	3.75%
Evolution Mining Ltd (ASX: EVN)	$11.78	3.15%
Aurizon Holdings Ltd (ASX: AZJ)	$4.24	2.91%
Yancoal Australia Ltd (ASX: YAL)	$5.56	2.77%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

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

More reading

• Why are Light & Wonder shares flying 9% higher today?
• 4 ASX shares rated a strong buy and with upsides of up to 109%
• Steadfast Group takeover bid update: KKR joins consortium
• Here’s what $10,000 invested in ASX tech shares 5 years ago would be worth now
• 4 ASX shares which could improve by 25% to more than 100%

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 Domino’s Pizza Enterprises, Light & Wonder Inc, Treasury Wine Estates, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates and WiseTech Global. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

PLS Group Ltd (ASX: PLS) shares were under pressure again on Tuesday afternoon, falling 1% to $4.43.

That extends what has been a painful month for shareholders, with the ASX lithium stock down 28% over the past four weeks.

But don’t let that fool you. Zoom out and the picture looks far brighter. PLS shares remain up around 6% year to date and have rocketed roughly 190% over the past 12 months.

The reason? Lithium prices went on an absolute tear. Spodumene prices almost tripled over the 12 months to June 2026, propelling ASX lithium producers to some of the market’s biggest gains.

Then June arrived. Spodumene prices slipped around 12% during the month, and investors hit the sell button just as enthusiastically as they had bought weeks earlier.

So, after the sharp correction, should investors be buying the dip, sitting tight, or heading for the exits?

Lithium giveth, lithium taketh away

PLS has long been regarded as the ASX’s highest-beta lithium stock.

When lithium prices surge, PLS shares often leave rivals in the dust thanks to the company’s enormous production base, operating leverage, and world-class Pilgangoora mine.

When lithium prices head south, however, the reverse usually happens. Investors tend to reduce exposure to the sector’s biggest name first, making PLS one of the hardest-hit stocks during corrections.

That appears to be exactly what’s unfolding today. Chinese lithium carbonate futures have continued retreating after a spectacular rally earlier this year. Much of the recent weakness appears to reflect profit-taking, with traders questioning whether prices simply ran ahead of market fundamentals.

Since lithium prices remain the biggest driver of earnings expectations, weaker futures have inevitably weighed on PLS shares.

The business is still firing

Importantly, there’s little evidence the company’s operations are weakening.

PLS delivered an outstanding first-half FY26 result. Revenue jumped 47% to $624 million as higher lithium prices combined with stronger sales volumes. Underlying EBITDA exploded 241% to $253 million, while EBITDA margins expanded from 17% to an impressive 41%.

That’s exactly what investors want to see. The numbers highlight the enormous operating leverage within the business. As lithium prices rise, profits can grow at an even faster pace.

Meanwhile, Pilgangoora remains one of the world’s largest and lowest-cost hard-rock lithium operations, giving PLS shares a competitive advantage that many smaller producers simply can’t match.

The next key milestone will arrive on 31 August when the company reports its second-half FY26 results. Investors will be watching production, costs, shipments, and any commentary around lithium demand. Updates on the P2000 expansion project will also be closely monitored.

Buy, hold, or sell?

Broker sentiment has become more cautious following the recent rally. According to TradingView data, eight of the 19 analysts covering PLS rate the stock as a buy, six recommend hold, and five have a sell rating.

The average price target sits at $5.77, implying roughly 30% upside from current levels.

Opinions vary widely, though. The most bullish analyst believes PLS shares could climb to $7.30, representing upside of around 65%, while the most bearish sees the stock falling to $3.00, or about 32% below current levels.

UBS recently downgraded PLS from buy to neutral, arguing that much of the easy money from the lithium recovery has already been made.

Meanwhile, Catapult Wealth and Red Leaf Securities remain bearish, citing concerns that growing global lithium supply could place renewed pressure on prices.

The post PLS shares are down 28%. Are they a buy, hold, or sell? appeared first on The Motley Fool Australia.

More reading

• Lithium prices are cooling. Here’s what that means for these ASX lithium shares
• Experts name 3 big-name ASX 200 shares to sell
• Buy, hold, sell: TechnologyOne, Pro Medicus, PLS Group shares
• 5 ASX All Ords shares that ripped 200% to 400% in FY26
• Top 5 ASX 200 lithium shares of FY26

Motley Fool contributor Marc Van Dinther 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.

Light & Wonder Inc (ASX: LNW) shares have rebounded around 9% in Tuesday lunchtime trade.

At the time of writing, the ASX gaming shares are changing hands at $112.57 a piece.

The rebound is good news for investors after the stock tumbled around 39% from an all-time high in early January. 

Despite the latest rebound, Light & Wonder shares are still down around 28% year to date and 24% below the trading levels seen this time last year.

What has happened to Light & Wonder shares today?

There hasn’t been any price-sensitive news out of the company today to explain the latest increase, but Light & Wonder has posted an update to the ASX this morning, which could have helped reinvigorate investor confidence in the company’s outlook.

The company announced that it plans to release its financial results for the Q2 FY26, ending 30 June, before the ASX opens on the 5th of August.

Also, as part of the announcement, the company reiterated its 2026 outlook and said it continues to expect mid-to-high single-digit growth and consolidated adjusted EBITDA growth for the year, despite broad macroeconomic uncertainty.

The company also confirmed it is committed to deleveraging its balance sheet toward the mid-point of its targeted net debt leverage ratio range during 2026, and to below 3.0x in the first half of 2027, subject to the continuation of share repurchases. 

Approximately US$180 million remains under its ongoing share repurchase program. 

Do brokers rate the ASX gaming stock as a buy, sell, or hold?

The experts are uniformly bullish about the outlook for Light & Wonder shares over the next 12 months. And it looks like we could see a huge upside ahead, even after today’s share price spike.

Market Index data shows that brokers agree on a strong buy consensus on the stock, and the $192.75 target price implies a 72% upside ahead.

TradingView data shows that some experts are even more bullish. The majority (20 out of 23) have a buy or strong buy rating on the shares. Another three have a hold rating.

The average target price is a little lower, at $176.2, but it still implies a potential 57% upside ahead, at the time of writing. But some analysts forecast that Light & Wonder shares could rise by up to 99% to $222.79 over the next 12 months.

My view on Light & Wonder shares

Light & Wonder has been reshaping its business in recent years, focusing on recurring revenue and higher-quality earnings. If the company’s next results are able to confirm that execution has continued improving and there is potential to build value over the long term, investor confidence and its share price could follow suit.

The post Why are Light & Wonder shares flying 9% higher today? appeared first on The Motley Fool Australia.

More reading

• 4 ASX shares which could improve by 25% to more than 100%
• 3 ASX blue-chip shares that could be strong long-term value plays
• Here are the top 10 ASX 200 shares today
• 3 fantastic ASX growth shares to buy to build real wealth
• 4 ASX 200 shares I’d buy before the end of June

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 Light & Wonder Inc. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX shares have been under pressure this week off the back of escalating conflict in the middle east, a rise in oil prices, and concerns about how weaker commodity prices will affect miners

But periods of uncertainty are a great time to focus on investment opportunities that have strong growth potential.

Here are four ASX shares that brokers rate as strong buys, with potential upside of up to 109%.

Life360 Inc (ASX: 360)

Life360 shares have softened in July after rebounding around 55% from an annual low. They’re still another 55% below an all-time high set in October last year, however. The ASX shares were caught up in a tech-sector-wide sell-off over the past nine months which saw investors sell their tech shares amid growing fears that companies’ core services could be replaced by AI. But I think they’re now oversold and there is huge growth potential ahead. The company reported a 38% increase in total revenue in its latest quarterly results in mid-May. This was primarily driven by a 32% increase in subscription revenue and 36% increase in core subscription revenue. Life360 also upgraded FY26 guidance for its revenue and adjusted EBITDA. Market Index data shows brokers rate Life360 shares as a strong buy. They tip a 27% upside to an average $32.01 target price, at the time of writing.

Catalyst Metals Ltd (ASX: CYL)

It’s been a volatile year for this ASX gold producer this year, with its share price ranging anywhere between a low of $4.71 and a high of $9.80 over the past 12 months. Its share price spiked to an all-time high in January after it announced a significant new high-grade discovery at its Plutonic Gold Belt. But it has now lost around 42% of its value mostly thanks to a significant increase in mining costs and a weaker gold price after a strong run late last year. Global instability has also led many investors to sell their gold shares and rotate into larger, more stable assets in 2026. But I like that Catalyst Metals has shown a long period of operational consistency and organic growth. The miner expects production to increase towards the latter half of FY26 as well. Analysts rate the ASX shares as a strong buy and tip an average target price of $9.58. That implies a potential 71% upside at the time of writing.

WiseTech Global Ltd (ASX: WTC)

WiseTech is another ASX tech stock which has been swept in the tech-sector wide sell off this year. The company also recently faced headwinds following media reports that the Australian Federal Police is investigating founder Richard White over alleged trafficking matters. The company responded and said that the alleged investigation relates to Richard White in a personal capacity. It added that there is no suggestion in this media commentary of an investigation into WiseTech. But it didn’t stop investors rushing for the exit. I still see WiseTech as having a strong competitive advantage in the global logistics industry. And I think the company’s future hinges primarily on its FY26 results. If WiseTech manages to reach or exceed its upgraded guidance, I think we’ll see a turnaround in the share price. Market Index shows that the majority of brokers (seven out of eight) have a buy rating on the shares. The average $72.84 target price implies a potential 109% upside over the next 12 months, at the time of writing.

Predictive Discovery Ltd (ASX: PDI)

Gold miner Predictive Discovery also faced headwinds this year. Including higher mining costs, weaker gold prices, and an overall investor rotation away from ASX gold shares into larger, more stable assets. After a rally late last year, however, the gold miner’s shares have performed strongly. They’re now 54% higher than 12 months ago. Its production numbers are expected to increase in the latter half of the year too, with the miner actively developing gold deposits in Guinea’s Siguiri Basin. Market Index data shows brokers agree to a strong buy rating on the ASX shares. The maximum target price is $1.35 per share, which implies a potential 106% upside at the time of writing.

The post 4 ASX shares rated a strong buy and with upsides of up to 109% appeared first on The Motley Fool Australia.

More reading

• Here’s what $10,000 invested in ASX tech shares 5 years ago would be worth now
• 3 ASX ETFs with strong long-term growth potential
• 3 ASX shares I’d buy with $5,000 this week
• Should I invest $2,500 into WiseTech shares?
• 10 fantastic ASX shares to buy for FY27

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 Life360 and WiseTech Global. The Motley Fool Australia has positions in and has recommended Life360 and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Yandal Resources Ltd (ASX: YRL) this week reported new drilling results from its Siona prospect, which have piqued the interest of analysts at Shaw and Partners.

They have a buy rating on the company, albeit labelling it high risk, and a bullish share price target, which we’ll get to shortly.

First, let’s see what the company announced.

Encouraging new gold exploration results

Yandal, in a statement to the ASX, reported the results from nine shallow exploration holes at Siona, with gold grades of up to 5 grams per tonne over a 3m intersection reported.

The company said regarding the drilling:

Results have demonstrated a coherent horizontal (flat) zone of gold mineralisation within the upper regolith profile occurring broadly to the southwest of the Primary Siona mineralisation.

Yandal Resources Managing Director Chris Oorschot said:

Our previous RC and diamond drilling across the Siona gold discovery (in late 2024 and early 2025) included a number of mineralised intervals that were either outside of, or presenting a different geometry relative to the main Siona mineralised trend. These nine shallow RC holes were focussed on a possible trend situated to the southwest of the main mineralised structure. The results show an almost horizontal zone of gold mineralisation that includes some discrete higher-grade intervals. The shallow nature and consistent geometry are very encouraging and will certainly add to the Mineral Resource potential of the Siona Prospect.

Further exploration drilling will kick off in the coming weeks, the company said.

A broader exploration program will also be made public following a strategic review in late July, with the company adding that it was in a strong cash position.

Shares looking cheap

Shaw and Partners said in their note to clients that they envisaged the gold resource at the project growing substantially.

YRL already has 450koz of Resource gold largely on existing mining leases, with strong extension potential and in the vicinity of multiple gold mills owned by other corporates. Further, ongoing drill results already suggest YRL has a realistic path to reach ~1Moz of Resources within a year. Upside to our price target could come from YRL’s attractive ongoing exploration potential. Additionally, corporate optionality in the Yandal region could add further upside potential to our stock valuation.

Shaw and Partners has a 51-cent per share price target on the company, compared to 20 cents currently.

If achieved, this would constitute a 153.9% return. Yandal Resources is valued at $76.3 million.

The post This ASX gold stock could jump 150%: Broker appeared first on The Motley Fool Australia.

More reading

• ANZ, NAB, Westpac and CBA shares: Brokers rate 2 a sell, and 2 a hold
• Here’s the earnings forecast out to 2027 for ANZ shares
• Here’s what brokers tip for Xero shares over the next 12 months
• Steadfast Group takeover bid update: KKR joins consortium
• Are CBA shares still worth buying for the long term?

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.

ASX bank shares have climbed higher in the first few weeks of July as expectations of lower interest rates and stable earnings expectations pique investor interest.  

Escalating geopolitical tensions and continued commodity price volatility have prompted many investors to rotate towards large ASX bank stocks for their long-standing dividends and predictable earnings.

But going forward, some bank shares are expected to fare better than others.

Here’s a rundown of how the four major ASX bank shares are tracking today, and what brokers expect next.

Hold ANZ Group Holdings Ltd (ASX: ANZ) shares

ANZ shares have tumbled into the red on Tuesday. At the time of writing, the shares are down around 1.5% and changing hands at $35.94. ANZ shares are still nearly 2% higher so far in July, and are around 19% higher than this time last year.

The banking giant posted a positive half-year update in May, including a 70% jump in its cash profit and 22% lower operating expenses.

ANZ also confirmed it has achieved 49% of its gross cost-savings target of $800 million for FY26.

Brokers are relatively optimistic about ANZ shares for FY27. TradingView data shows that 7 of 16 analysts have a hold rating on the stock. Another six have a buy or strong buy rating while three have a sell or strong sell rating.

The average $34.91 target price, however, implies a potential 3% downside at the time of writing.

Sell Commonwealth Bank of Australia (ASX: CBA) shares

CBA shares are also tumbling on Tuesday, down around 1% to $169 a piece. The shares have climbed nearly 3% so far in July, but are around 5% below levels seen this time last year.

It’s been a volatile few months for the banking giant. The bank’s most recent disappointing third-quarter capital update in mid-May caused some investor confidence to wane. The bank reported a flat operating income and 1% decline in unaudited cash NPAT.

But every time CBA shares fall, they seem to quickly rebound again. It’s likely CBA’s safe-haven appeal that continues to appeal to investors. In times of market chaos, investors typically flock to well-known and large-scale stocks.

The problem is that CBA shares have been widely considered overvalued for some time now. CBA is currently trading at a price-to-earnings (P/E) ratio of over 26, making it one of the most expensive banking stocks globally. The bumper price tag isn’t supported by the bank’s core strength or earnings either.

TradingView data shows the majority (11 out of 16) of analysts have a strong sell rating on CBA shares. Another three rate the stock as a sell, and two rate it as a hold. The average $126.51 target price implies more than 25% downside ahead, at the time of writing.

Hold National Australia Bank Ltd (ASX: NAB) shares

NAB shares are down around 1% on Tuesday and are trading at $39.63 each. The banking giant’s shares are one of the best performers among the big four so far in July, though, up around 5% in the first two weeks of the month. The shares are roughly flat on the trading level this time last year.

NAB’s half-year FY26 results in May were a miss versus market expectations, and investors reacted negatively. Despite posting a modest earnings growth, including a 6.4% increase in underlying profit and a 3.1% increase in revenue, the share price sell-off accelerated. 

Intense mortgage competition has also put pressure on the bank’s profit margins and raised concerns about future earnings.

The share price has rebounded slightly from a dip in mid-June, most likely reflecting slightly improved market sentiment. But the experts are still cautious.

TradingView data shows that eight out of 16 analysts now rate the ASX bank stock as a hold. Another five have a sell or strong sell rating, and three rate NAB shares as a strong buy. The average $37.72 target price, however, now implies a potential 5% downside, at the time of writing.

Sell Westpac Banking Corporation Ltd (ASX: WBC) shares

Westpac shares are also down around 1% at the time of writing, to $36.50 a piece. The bank shares are around 4% higher so far in July and around 9% higher than 12 months ago.

Westpac posted a solid first-half result in early May. There was a brief share price uptick after the result was announced, but then investor sentiment reversed, and the sell-off resumed. 

The bank’s shares came under even more selling pressure after a court ruling related to ongoing compliance risk weighed on sentiment. 

Westpac is the most mortgage-exposed of the big four bank shares, with approximately 69% of its loan book in residential mortgages. So, while forecasts of lower interest rates are positive news for the bank, its shares have been depressed by earlier hike announcements. 

TradingView data shows that analysts are quite pessimistic about Westpac’s outlook over the next year. The majority (nine out of 16) have a sell or strong sell rating on the bank shares. Another seven have a hold rating. The average $33.41 target price implies a potential downside of around 9% at the time of writing. 

The post ANZ, NAB, Westpac and CBA shares: Brokers rate 2 a sell, and 2 a hold appeared first on The Motley Fool Australia.

More reading

• Here’s the earnings forecast out to 2027 for ANZ shares
• Are CBA shares still worth buying for the long term?
• How to build a successful ASX dividend portfolio
• What did the market look like 10 years ago? Here’s what’s changed for the ASX 200
• 3 of the best ASX dividend stocks to supplement your superannuation

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.

Owning ANZ Group Holdings Ltd (ASX: ANZ) shares usually means getting a good level of passive income. But can it deliver earnings growth? That could be essential for whether the ANZ share price rises or not in the next year or two.

The ASX bank share has been working hard to reduce its cost base, be more efficient, and deliver good performance with its market share.

ANZ has a lot of competition in the banking space, who all want market share, including Commonwealth Bank of Australia (ASX: CBA), Macquarie Group Ltd (ASX: MQG), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), and so on.

A lot of competition may be a headwind for the bank in terms of both growing market share and a strong net interest margin (NIM). But that hasn’t stopped ANZ from generating strong profit growth in the near term.

FY26

The 2026 financial year has finished for many companies, but for ANZ, it doesn’t finish until 30 September 2026.

The latest update we’ve heard from the bank was very promising for what the FY26 result could reveal.

In HY26, compared to the second half of FY25, ANZ reported in cash profit terms that operating income grew 3% and operating expenses fell 22%, leading to profit before provisions jumping 51%. It also noted that the (loan) provision charge reduced 7% and the cash profit soared 70%.

However, some of those numbers received a large boost due to ‘significant items’. Excluding significant items, operating income was flat, operating expenses dropped 9%, profit before provisions grew 12%, and cash profit rose 14%. Customer deposits increased by 3%, while net loans and advances fell by 1%.

I think any of Australia’s domestic banks (excluding Macquarie) would be delighted to report double-digit net profit growth.

The bank is forecast to grow its earnings per share (EPS) in FY26, according to the projection on CommSec. The EPS could reach $2.559 in the 2026 financial year, putting the ASX bank share’s valuation at around 14 times FY26’s estimated earnings.

FY27

I think it’s a great sign to see a business grow earnings, as that’s what justifies higher share prices and larger dividends.

The bank is forecast to deliver earnings growth in the 2027 financial year. However, the current projection is not very exciting.

According to the estimate on CommSec, the ASX bank share is projected to very slightly increase its EPS to $2.561 in FY27. In other words, profit is forecast to be virtually flat. That would mean it’s trading at 14 times FY27’s estimated earnings as well.

The CommSec collation of analyst opinions on the business revealed there are currently two sell ratings, eight hold ratings, and six buy ratings. The experts are more positive than negative, though there could be even better opportunities out there.

The post Here’s the earnings forecast out to 2027 for ANZ shares appeared first on The Motley Fool Australia.

More reading

• Here’s the dividend forecast out to 2027 for ANZ shares
• How much do I need in my superannuation to get $50k per year in passive income?
• How many Westpac shares do I need to buy for $10,000 of passive income?
• 5 best ASX 200 financial shares of FY26
• 9 ASX 200 shares with renewed buy ratings for FY27

Motley Fool contributor Tristan Harrison 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 Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Xero Ltd (ASX: XRO) shares have skipped further into the red in Tuesday morning trade.

At the time of writing, the shares are down around another 2% to $68.58 a piece. At one point this morning, the shares were changing hands as low as $68.48 each. 

This morning’s losses extend yesterday’s 4.3% decline. 

It’s been a long line of share price declines for the ASX tech company over the past year. Since spiking to an all-time high of $193.77 a piece in June 2025, the shares have shed a huge 64% of their value.

They’re now down around 38% for the year to date and 59% lower than this time a year ago.

What happened to Xero shares?

Xero shares have faced several major headwinds over the past 12 months. 

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

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

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

The good news is that despite the continued stock sell-off, there is still enormous potential for Xero and its shares over the next 12 months.

Xero benefits from an incredibly sticky subscription base and high customer retention rates, which means its revenue is relatively stable. 

As a relatively small market player, it also has a lot of growth potential. Xero is working to expand its presence in the UK and the US. It is also focused on expanding its product suite, including payroll and workflow automation offerings. 

What do brokers tip for the ASX tech stock next?

Market Index data shows that the majority of brokers are very bullish on Xero shares and have a buy rating on the stock. The average target price of $145.69 implies an impressive 112% upside at the time of writing.

TradingView data shows something very similar. The majority of analysts have a strong buy rating on Xero shares. They have a slightly lower $130.12 average target price, but that still implies a potential 85% upside ahead.

Some are even more optimistic and forecast the shares to rocket another 237% to a maximum target price of $237.38.

Last month, Morgans upgraded the stock from hold to add and assigned a $215 price target. The broker cited improving sales momentum and disciplined cost management. 

The post Here’s what brokers tip for Xero shares over the next 12 months appeared first on The Motley Fool Australia.

More reading

• Here’s what $10,000 invested in ASX tech shares 5 years ago would be worth now
• 3 ASX ETFs with strong long-term growth potential
• Another CEO share sale has this ASX 100 tech stock sinking today
• 10 fantastic ASX shares to buy for FY27
• Two ASX tech shares hinge on rebuilding trust and growth. Here’s how they can turn around

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

The Steadfast Group Ltd (ASX: SDF) share price is back in the spotlight today, as the company announces a major update on a potential takeover bid, with a non-binding indicative proposal by a consortium now including global investor KKR alongside Amwins and Dragoneer. The offer stands at $6.00 per share in cash.

What did Steadfast Group report?

• Receipt of an updated non-binding, indicative proposal from a consortium now including KKR
• Indicative offer price: $6.00 per share in cash, less any dividends or distributions after 5 June 2026
• No change to the transaction timetable or process as a result of KKR’s involvement
• Current exclusivity and process deed remains in place with Amwins, Dragoneer, and now KKR
• There is no certainty a binding agreement will be reached

What else do investors need to know?

Amwins and Dragoneer confirmed that KKR’s addition to the consortium as co-lead investment partner will not affect the current timetable or process. The participation of KKR is not a condition for Amwins and Dragoneer to enter a binding deal with Steadfast.

Steadfast’s board reminds shareholders that there is no guarantee this proposal will progress to a binding agreement. No action is required by shareholders at this stage, and further updates will be provided as appropriate.

What’s next for Steadfast Group?

Steadfast will continue engagement with the consortium under the current process deed, maintaining strict confidentiality and assessing the proposal thoroughly. The board will update the market as soon as there are any material developments.

For now, the company remains focused on supporting its expansive broker and agency networks across Australia, New Zealand, Singapore, and the USA, and delivering long-term value for shareholders while talks progress.

Steadfast Group share price snapshot

Over the past 12 months, Steadfast shares have declined 12%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

View Original Announcement

The post Steadfast Group takeover bid update: KKR joins consortium appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• ASX 200 drops as soaring oil prices rattle global markets
• 5 things to watch on the ASX 200 on Monday
• ASX 200 energy shares rebound after US-Iran peace deal falls apart

Motley Fool contributor Laura Stewart 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 Steadfast Group. The Motley Fool Australia has positions in and has recommended Steadfast Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.