BHP Ltd (ASX: BHP) shares are enjoying a strong session on Wednesday.

In early afternoon trade, BHP shares are up 4% to $61.12. They’re comfortably outperforming the benchmark S&P/ASX 200 Index (ASX: XJO), which is up 0.4%.

The gains continue a recent rebound for the mining heavyweight. BHP shares have climbed around 6% over the past five trading days, though they remain down roughly 6% over the past month.

Zooming out, however, the picture looks much brighter. BHP shares have rallied about 34% since the start of the year and are up approximately 54% over the past 12 months. By comparison, the ASX 200 has gained around 3% over the same period.

So, what’s driving BHP’s sharp share price jump today?

A sector-wide rally lifts BHP

Unlike some large moves in the past, Wednesday’s rally doesn’t appear to be linked to a major company announcement.

Instead, BHP is benefiting from renewed investor appetite for mining stocks as sentiment towards the resources sector improves. The S&P/ASX 200 Resources Index (ASX: XJR) was up 1.6% around midday.

After a period of weakness driven by concerns over global growth, commodity demand, and geopolitical uncertainty, investors have rotated back into diversified miners. BHP shares have emerged as one of the biggest beneficiaries.

Copper remains the key long-term story

While iron ore remains BHP’s largest earnings driver, investors are increasingly valuing the company as a global copper producer.

The miner has spent several years repositioning its portfolio towards commodities expected to benefit from long-term electrification trends, including copper through assets such as Escondida, Olympic Dam, and the recently acquired OZ Minerals business.

That shift means BHP is often viewed as one of the ASX’s premier large-cap copper exposures.

Interestingly, however, today’s rally wasn’t sparked by a surge in copper prices. Benchmark copper prices were little changed overnight, slipping around 0.2%, and remain modestly lower than they were a month ago.

Even so, prices are still well above year-ago levels. This reflects a constructive long-term outlook supported by growing demand from artificial intelligence infrastructure, renewable energy projects, and electric vehicles.

Looking ahead

With no major company news driving Wednesday’s gains, the rally appears to reflect improving sentiment towards the mining sector rather than a fundamental change in BHP’s outlook.

Investors will now turn their attention to BHP’s upcoming quarterly operational update next month. This should provide fresh insight into production across its iron ore and copper operations.

In the meantime, movements in copper and iron ore prices, as well as any signs of further economic stimulus from China, are likely to remain the biggest drivers of BHP shares.

For long-term investors, today’s rally also highlights an important shift in the investment case.

BHP remains the world’s largest-listed iron ore miner. But its growing exposure to copper means the company’s fortunes are becoming increasingly tied to a metal many analysts expect will play a central role in the global energy transition.

The post Why are BHP shares surging 4% today despite a flat copper price? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Treasury Wine Estates Ltd (ASX: TWE) shares are climbing higher into the green in morning trade on Wednesday. 

At the time of writing, the shares are up around 0.5% and changing hands for $4.72 a piece.

The latest increase represents around a 39% rebound from a 12-year low recorded in late-March. It’s certainly a step in the right direction, but there is still some way before Treasury Wine Estates can recover losses shed through 2025.

For the year to date, the shares are down around 11% and are 41% lower than this time last year.

Why are Treasury Wine Estates shares rebounding?

After hitting the lowest trading value in over a decade in late-March, Treasury Wine Estates shares finally started rebounding after news that the company had begun trading below what its assets are worth. 

The update encouraged bargain-hunting investors to step in while the shares were trading below fair value.

The rebound picked up pace in late-April when the company announced it is transitioning to a new regional operating model to help improve efficiency.

The move is part of TWE Ascent, Treasury Wine’s global transformation program, which is intended to address the headwinds of recent years and position the business for sustainable growth.

The ASX 200 wine stock will switch to the new regional operating model as of the 1st of October. This will see the company operate four regional divisions. These include, the Americas, ANZ (Australia and New Zealand) combined with Europe, Greater China, and the emerging markets (Rest of Asia, Middle East, and Africa).

Treasury Wine Estates shares climbed even higher in early June. The increase followed an investor day update where the company unveiled its latest turnaround strategy. The transformation plan is expected to help simplify the business and help restore earnings growth.

Key updates included a sharper focus on Treasury Wine’s strongest brands, a review of its Americas business, and plans to target $100 million per year in cost reductions. These cost reductions are expected to be fully realised by FY29.

Management also confirmed FY26 EBITS guidance in the range of $480 million to $490 million.

For FY27, management then expects EBITS to be at least equivalent to FY26 while the company continues to rebalance customer inventory levels in China and the United States.

Investors have been thrilled with the company’s developments over the past three months. The renewed confidence has helped push the shares higher and higher.

What do brokers tip next? Can the shares keep climbing higher?

If broker sentiment is anything to go by, we could see a lot more from Treasury Wine Estates shares this year.

Market Index shows a buy consensus for the shares. And the average $5.20 target price implies a potential 11% upside, at the time of writing.

TradingView data shows that some are even more bullish. Out of 15 analysts, seven have a buy or strong buy rating. Another eight rate the ASX wine stock as a hold.

The average $5.34 target price implies a potential 15% upside ahead, at the time of writing. Meanwhile, the maximum $6.50 target price implies that the shares have the potential to jump another 40% higher over the next 12 months.

The post Treasury Wine Estates shares rebound 39% from 12-year low: Can they keep going? 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 positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ANZ Group Holdings Ltd (ASX: ANZ) shares are up around 0.3% in early morning trade on Wednesday, and changing hands for $36.21 a piece.

After a tough start to the year, the bank shares are down around 0.5% for the year-to-date, but they’re still nearly 20% higher than 12 months ago.

Despite ongoing global volatility, interest rate uncertainty, and a slowdown in lending, the banking giant’s shares are now up 2.3% for the year-to-date and 39% above their trading levels this time last year. 

For context, the S&P/ASX 200 Index (ASX: XJO) is up around 2% for the year-to-date, and roughly 3% higher than 12 months ago.

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 4% downside at the time of writing.

Regardless of where ANZ shares will be in 12 months time, there are a few other reasons I think the ASX bank shares are a screaming buy right now.

Here are three of them

1. Cost saving initiatives are working

As part of the bank’s half-year FY26 financial update, it confirmed it has now achieved 49% of its gross cost-savings target of $800 million for FY26.

ANZ has made significant progress reducing costs and simplifying operations, improving its cost-to-income ratio under its ANZ 2030 strategy. 

ANZ’s 2030 cost-saving strategy focuses on simplifying operations, eliminating duplication, and heavily reducing its physical and technological footprint. This includes job cuts, and integration of Suncorp Bank.

2. Earnings are stable and cash flow is growing 

As one of Australia’s major four banks, ANZ is generally considered to have stable earnings and predictable cash flow. The bank has a strong deposit base and a diversified portfolio that means it has defensive qualities.

In early May, the bank reported a 70% jump in its cash profit for the first half of FY26. Statutory profit was also up 62%, operating income was up 3%, and the bank’s operating expenses were 22% lower.

The news beat expectations, delighted investors and instilled some renewed confidence into the stock. ANZ shares spiked higher following the announcement.

The update also followed ANZ’s impressive first-quarter cash profit in February. At the time, it revealed $1.94 billion, up a huge 75% from the second-half average of FY25. Operating income was up 4% and cash return on tangible equity climbed 11.7% over the quarter.

3. The bank pays a great passive income

The bank’s strong performance means it is able to make a reliable and regular dividend payment to shareholders every six months, payable in July and December. 

It also offers both a dividend reinvestment plan (DRP) and a bonus option plan (BOP) as alternatives to receiving cash dividends on ANZ ordinary shares.

Earlier this month ANZ paid its shareholders an 83-cent per share interim dividend payment, franked at 75%. At the time of writing, this translates to a forward dividend yield of around 4.6%.

The 83-cent dividend is the same payout that investors have been receiving every six months since July 2024. Although the latest payout received an additional 5% franking (previously 70%).

Forecasts suggest that ANZ could pay an annual dividend of $1.66 in FY26, and the same again in FY27. At the time of writing that translates to a forward dividend yield of 4.6% for each year.

That’s a decent passive income. It also puts ANZ at the front of the pack with the highest dividend yield offering among the big 4 major banks. 

The post 3 reasons why ANZ shares are a screaming buy right now appeared first on The Motley Fool Australia.

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• Here’s the earnings forecast out to 2027 for ANZ shares
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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.