Stock Pick

  • Brokers tip these 2 ASX shares to jump 46% and 62%

    Smiling couple looking at a phone at a bargain opportunity.

    ASX shares have slumped lower in Wednesday lunchtime trade thanks to a sell-off across the banks and mining sectors, driven by lower commodity prices, a rebound in oil prices, and ongoing inflation headwinds.

    When share markets look uncertain, I like to hunt around for ASX shares which could drive growth going forward. Here are two which stand out today.

    Integral Diagnostics Ltd (ASX: IDX)

    The Integral Diagnostics share price has fallen around 0.5% on Wednesday afternoon, to $2.11 a piece. The ASX small-cap healthcare shares are now down 8% over the past month alone, and 16% lower for the year to date.

    The healthcare business provides diagnostic imaging to general practitioners, medical specialists, and allied health professionals and their patients. It operates over 90 radiology clinics across Australia and New Zealand.

    There hasn’t been any price-sensitive news out of the company since it posted its FY26 results in August. Integral Diagnostics reported a 25.6% increase in revenue, a 30.3% increase in operating EBITDA, and a 50.1% increase in operating NPAT.

    Despite the strong result, the shares have tumbled downwards. It looks like investors may still be taking gains off the table after a strong rally through July and August.

    At the same time, ASX healthcare stocks have generally trended downwards over the past month as a result of pressure from the latest Reserve Bank hike, higher inflation, and a sector wide rotation away from healthcare shares into more stable and defensive assets.

    And Integral Diagnostics wasn’t immune.

    Market Index data shows all brokers have a strong buy rating on the shares. And the $3.07 average target price implies an upside of 46%, at the time of writing.

    Netwealth Group Ltd (ASX: NWL)

    Netwealth Group shares are also down around 1% at the time of writing on Wednesday. They’ve now reached a 12-year low of $16.82 a piece. The shares have crashed around 33% over the past two months, and they’re now down 35% for the year to date.

    Netwealth is a financial services and technology company which provides a wide range of products and services to the Australian financial investment industry, including cloud-based investment administration software as a service (SaaS), a retail superannuation fund, and an administration business.

    The company posted an impressive FY26 result in August, including a 20.6% increase in total income and a 18% increase in EBITDA. 

    Despite the good result, the ASX financial shares were caught up in a board-based sell-off across the financial sector over the past two months, driven by inflation concerns and higher interest rates.

    Then, last month, the company announced that two of its subsidiaries have been served a class action over its failed First Guardian Master Fund.

    Class action was lodged against Netwealth Investments Limited and Netwealth Superannuation Services Pty Ltd concerning First Guardian investment options. 

    Netwealth previously paid around $101 million in compensation to affected members and had already addressed the issue with ASIC. The compensation program was completed in January 2026.

    Netwealth has confirmed it intends to defend the class action.

    Investors might be wary about the stock, but the experts are still bullish.

    Market Index data shows the majority of brokers have a strong buy rating on the shares. And the $27.24 average target price implies an upside of around 62%, at the time of writing.

    The post Brokers tip these 2 ASX shares to jump 46% and 62% 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 Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Down 16% in 2 weeks: The saga of the ASX’s wildest ETF continues

    A boy is wowed at a surge of water from a blowhole.

    About two months ago, I wrote about what I then called the “ASX’s craziest ETF”. This exchange-traded fund (ETF) had, at least at the time, just come off the boil after a 200% gain in a mere 12 months. ‘Off the boil’ is a little generous. This ETF had, in fact, lost more than a third of its value since peaking in late June.

    The ASX ETF we are referring to is none other than the iShares MSCI South Korea ETF (ASX: IKO). For many years, this index fund largely flew under the Australian share market radar, generating the kind of consistent single-digit returns that one would expect for a product like this.

    However, 2025, and more notably, 2026 have seen that turn on its head. The extreme volatility has continued since we last spoke about IKO, too. Yesterday, we saw IKO units close at $231.11 each. That’s down 16.06% since just 5 October, when those same units finished that day at $275.32 each.

    Today, we seem to have turned a corner. At present, the iShares South Korea ETF has jumped by a healthy 3.3% or so and is back up to $238.70 a unit.

    On paper, the iShares South Korea ETF is an index fund, representing the entire Korean stock market. However, in reality, this fund has become a holding vehicle for just two stocks, with another 78 companies or so tacked on the end for a bit of diversity.

    The ASX’s craziest ETF is hostage to just two stocks

    As we’ve documented before, the unbridled success of chipmakers SK Hynix Inc and Samsung Electronics Ltd has had the unusual consequence of elbowing out most of Korea’s other storied names to dominate any index fund that covers the Korean markets. So while you may think a Korean-themed index fund would at least be heavily influenced by companies like Hyundai, Kia, and LG, these companies are now just window dressing for the main attractions.

    Yes, on current numbers, SK Hynix makes up a whopping 24.54% of the entire IKO portfolio. Samsung contributes another 23.17%. The next-largest stock, SK Square, comes in at just 2.93%.

    So, when we see that the iShares South Korea ETF has made a dramatic move, like losing 16% in just over a week, we know where to look for a culprit, or culprits.

    Thus, it won’t shock you to discover that Samsung shares lost 15.94% of their value on the Korean stock exchange between 5 October and yesterday afternoon. SK Hynix stock has fared even worse, shedding 21.6% of its value over that same span.

    It seems fears that Chinese companies are catching up to these two leaders in the chip space were enough for a correction of this magnitude.

    Let’s see what the next chapter in this wildest of ASX ETFs’ story will be.

    The post Down 16% in 2 weeks: The saga of the ASX’s wildest ETF continues appeared first on The Motley Fool Australia.

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    Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

  • Harvey Norman vs Premier Investments: Which founder-led stock is the better buy in 2026?

    CEO leading a board meeting.

    Harvey Norman vs Premier Investments shares

    Deciding between Harvey Norman Holdings Ltd (ASX: HVN) and Premier Investments Ltd (ASX: PMV) promises an interesting founder-led face-off. Both companies are household names in Australian retail, but each brings its own strengths, quirks, and opportunities. If you’re weighing up Harvey Norman vs Premier Investments shares for your 2026 watchlist, here’s a simple, no-nonsense look at which might suit you best.

    The case for Harvey Norman

    Harvey Norman is a stalwart of the Australian retail landscape, famous for its big-box stores selling everything from electronics and computers to furniture and homewares. As the franchisor behind more than 270 company-operated and franchised outlets in eight countries—including Australia, New Zealand, Singapore, and Ireland—Harvey Norman has built scale and a significant property portfolio over decades. Much of its earnings still come from Australia, but its international arm is growing in significance.

    Looking at fundamentals:

    • Market cap sits at $5.15 billion, marking it as a major ASX player.
    • A P/E ratio of 9.80 suggests investors are paying less per dollar of reported earnings than for Premier, although sector differences should be kept in mind.
    • Dividend yield of 6.63%, fully franked, has been consistently healthy with recent final and interim payouts of $0.13 and $0.145 per share respectively in 2026.

    Harvey Norman’s founder, Gerry Harvey, still guides the business, providing the kind of continuity some investors look for in retail. Its extensive history of property ownership also underlines its blend of retail and real asset exposure.

    The case for Premier Investments

    Premier Investments recently reshaped itself after demerging its apparel brands (like Just Jeans and Portmans) into Myer Holdings. Now it’s focused on two growth engines: Peter Alexander, which dominates sleepwear and lifestyle retail, and Smiggle, a favourite among school-aged kids for its playful stationery and backpack range. Both brands are expanding internationally, especially Smiggle in the UK and Asia. Premier also keeps a significant stake in Myer, giving it continued exposure to broader Australian retail.

    Key numbers for Premier:

    • It’s smaller than Harvey Norman by market cap, at $1.98 billion, but packs a punch in yield and earnings.
    • P/E ratio of 15.38, a notable premium, could reflect its stronger growth story or the market’s confidence post-demerger.
    • Dividend yield is impressive at 7.67%, fully franked, and the 2026 interim payout was $0.45 per share, with past years featuring additional special dividends.

    Premier is still under the influence of founder Solomon Lew, renowned for his retail savvy and ability to generate solid returns for shareholders, often through a shrewd capital management style.

    Valuation comparison

    Here’s how some of the standout numbers stack up:

    Metric Harvey Norman Premier Investments
    Market cap $5.15 billion $1.98 billion
    P/E ratio 9.80 15.38
    Dividend yield 6.63% 7.67%
    Dividend per share (2026) $0.26 $1.31
    Earnings per share 0.424 0.902
    Franking 100% 100%

    Note: Both companies are fully franked, which is a major plus for income-focused Aussie investors. Premier’s P/E is higher compared to Harvey Norman, which could reflect its recent strategic reset and growth bets, but the sectors (big-box retail vs. specialist brands) mean caution is warranted on a like-for-like valuation call.

    Recent share price momentum

    Comparing recent share price performance up to12 October 2026:

    • Harvey Norman closed at $4.13, down 0.48% on the day, with its year-to-date return sitting at -36.2%. That’s a hefty slide, suggesting headwinds for the traditional retail model or one-off impacts this year.
    • Premier Investments closed at $12.43, up 0.4% on the day, with a year-to-date return of -7.0%. While negative, it’s nowhere near as steep as Harvey Norman’s decline.

    Which is the better buy?

    If I had to plant my flag on the better founder-led buy for 2026, I’d lean toward Premier Investments. Premier’s portfolio is leaner and much more focused post-demerger, with two high-margin, brand-driven businesses and international ambitions. Its negative YTD return is milder, the dividend yield is higher at 7.67%, and management keeps surprising with special dividends—a sign of strong cash flows and nimble capital management.

    Harvey Norman, by contrast, looks like it’s facing tougher retail conditions, as shown by its much steeper share price fall this year. Yes, its P/E ratio is lower, and it still throws off reliable dividends, but for genuine growth or brand-driven differentiation, Premier now sets itself apart.

    Both companies have storied founders still in the driver’s seat, but for me, Premier’s current trajectory and sharper focus make it the more compelling prospect right now. If dividend income and upside optionality matter to you, my pick would be Premier Investments.

    The post Harvey Norman vs Premier Investments: Which founder-led stock is the better buy in 2026? appeared first on The Motley Fool Australia.

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    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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Premier Investments. 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 draft. 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.

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