Stock Pick

  • 2 ASX shares highly recommended to buy: Experts

    Buy now written on a red key with a shopping trolley on an Apple keyboard.

    I think it’s very interesting when numerous analysts are positive about an ASX share with buy ratings.

    It’s not just one investment professional that’s excited about a business, there’s multiple analysts that are calling the business a buy.

    It could indicate that there’s a clear opportunity on offer.

    CAR Group Ltd (ASX: CAR)

    CAR Group describes itself as a global digital marketplace business, with a goal of being the global leader in online vehicle marketplaces. It operates in a number of vehicle categories – automotive, commercial, industrial and leisure.

    It operates in several countries, including Australia (Carsales), South Korea (Encar), the US (Trader Interactive), Chile (Chileautos) and Brazil (it’s the majority shareholder of Webmotors).

    According to Commsec, there are currently 12 buy ratings on the business, making it one of the most positively rated ASX shares right now.

    The business had a solid FY26, reporting revenue growth of 6% to $1.25 billion, net profit growth of 14% to $314 million and full-year dividend growth of 8% to 86 cents per share.

    CAR Group expects to deliver solid growth in FY27. In the 2027 financial year, in constant currency terms, revenue is expected to grow between 11% and 14%, while adjusted operating profit (EBITDA) is expected to grow between 10% and 13%, and adjusted net profit is guided to grow between 9% and 12%.

    In Australia, the business is expecting high single-digit revenue growth. Meanwhile, in North America and Latin America, revenue is expected to grow by double digits. Australia and Latin America are expected to see operating leverage, while other markets are expected to see a lower EBITDA margin as they invest for growth.

    Integral Diagnostics Ltd (ASX: IDX)

    Another highly rated ASX share is Integral Diagnostics. It’s a leading provider of medical imaging services across Australia and New Zealand.

    According to Commsec, there are currently 12 buy ratings on the business, making it one of the most highly rated ASX shares.

    The company delivered strong revenue growth and improving profit margins. In FY26, revenue grew 25.6% to $788.7 million, operating profit (EBITDA) grew 30.3% to $164.8 million (with a margin of 20.9%), and operating net profit increased 50.1% to $47.4 million.

    The ASX share said that it’s focused on network expansion, sustainable revenue growth, EBITDA margin improvement to more than 21%, increased productivity and capacity, and lowering debt levels.

    According to the projection on Commsec, it’s trading at 16x FY27’s estimated earnings, with further growth expected in both FY28 and FY29.

    The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

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    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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended CAR Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • 5 things to watch on the ASX 200 on Wednesday

    Broker looking at the share price.

    On Tuesday, the S&P/ASX 200 Index (ASX: XJO) ended the day with the smallest of gains. The benchmark index rose a fraction to 8,783.9 points

    Will the market be able to build on this on Wednesday? Here are five things to watch:

    ASX 200 to fall

    The Australian share market is expected to fall on Wednesday following a poor session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.35% lower. In the United States, the Dow Jones fell 0.35%, the S&P 500 dropped slightly, and the Nasdaq was down 0.15%.

    Oil prices mixed

    ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch on Wednesday after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 1% to US$94.69 a barrel and the Brent crude oil price is down 0.45% to US$106.16 a barrel. Traders are assessing the impacts of the Russian diesel supply deal and the Saudi-Houthi conflict.

    Buy PLS shares

    The team at Bell Potter has upgraded PLS Group Ltd (ASX: PLS) shares this morning following a period of weakness. Although the broker has reduced its lithium price forecasts, it remains positive and has upgraded PLS shares to a buy rating with a trimmed price target of $4.40 (from $5.20). It said: “We upgrade to a Buy recommendation on recent share price weakness. At current lithium market prices, PLS will generate substantial earnings and cash flow with the restart of the 200ktpa Ngungaju processing plant.”

    Gold price softens

    ASX 200 gold shares Westgold Resources Ltd (ASX: WGX) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Wednesday after the gold price eased overnight. According to CNBC, the gold futures price is down 0.1% to US$4,187.2 an ounce. Traders were selling gold ahead of the release of US inflation data.

    Rio Tinto update

    Rio Tinto Ltd (ASX: RIO) shares will be on watch on Wednesday when the mining giant releases its quarterly update. Investors will no doubt be looking to see if Rio Tinto remains on course to achieve its guidance in 2026. It is targeting copper production of 800kt to 870kt and iron ore sales of 343Mt to 366Mt. Costs are expected to be US$23.5 to US$25 per tonne for iron ore and 30 US cents to 50 US cents per pound for copper. Elsewhere, Commonwealth Bank of Australia (ASX: CBA) is holding its annual general meeting today and will be worth watching.

    The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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    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.

  • Here’s the dividend forecast out to 2029 for AGL shares

    Hand putting a leaf in a piggy bank with a green outdoor background and environment related icons.

    Owning AGL Energy Ltd (ASX: AGL) shares over the years has delivered plenty of passive income in the form of dividends. Investors may be wondering what the future holds for potential payments.

    As one of Australia’s largest energy businesses, AGL has an important role to play in terms of both the energy it generates and its role as one of the largest energy retailers.

    In terms of its energy retailing, in FY26, it reported that it had total AGL customer services of 4.6 million (up 92,000 year-over-year).

    Its energy generation portfolio is currently very diversified across coal-fired power, gas, hydro, wind, solar and batteries.

    The company is currently working on transitioning its energy portfolio. It has ambitions to add 12GW of new renewable and firming capacity by the end of 2035, and is looking at options to accelerate that timeline where possible.

    Given the required capital expenditure for its new energy investments, let’s look at what the upcoming dividends could be.

    FY27

    In the 2026 financial year, the company generated underlying net profit after tax (NPAT) of $631 million (down 2%) and declared an annual dividend per share of 50 cents.

    AGL said that it’s targeting a dividend payout ratio range of between 55% to 60% of underlying net profit for the FY27 dividend and it’s expected to be fully franked.

    According to the projection on Commsec, AGL is forecast to see a slightly lower annual dividend of 49 cents per share, which would represent a decline of 2% compared to FY26. That would be a dividend yield of 5.8% excluding franking credits and 8.3%, including franking credits.

    FY28

    The company’s financials could see a decline of earnings in the 2028 financial year, which could then see a flow-on effect to the dividend. Earnings per share (EPS) could decline by 20% in FY28, which is a sizeable drop.

    According to the projection on Commsec, AGL’s dividend will fall by another 26% to 36.4 cents per share. At the time of writing, that translates into a dividend yield of 4.3% excluding franking credits and 6.2% including franking credits.

    FY29

    In the final year of this series of projections, AGL’s earnings dividend could start climbing again, according to the forecast.

    AGL’s EPS could climb by 22.8% in the 2029 financial year, which could help the dividend rise by 15% to 41.9 cents per share.

    That estimate says that the AGL dividend yield could be 5% excluding franking credits and 7.1% including franking credits.

    If these projections happen, it shows that the AGL dividend yield could remain solid, even if the payout does reduce in FY28.

    The post Here's the dividend forecast out to 2029 for AGL shares appeared first on The Motley Fool Australia.

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    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 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.

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