Shares in Amplitude Energy Ltd (ASX: AEL) have been a bit unloved over the past year, falling more than 40% over the period.

That has prompted the analysts at Morgans to have a look at the energy company, and they believe there is significant upside to be had by investing in this offshore gas producer.

What has been driving the Amplitude share price lower?

In a note to clients recently, Morgans said there had been some sizeable, albeit short-term catalysts recently which had pushed the share price lower, but added that the shares had de-rated, “to a level we view as unsustainable given the company’s forward earnings profile”.

Morgans’ assessment of the value of the company had dropped 17% due to poor exploration results and weaker spot gas prices, but the shares had fallen 57% since a high in February.

In May, Amplitude bought half of the Artisan gas field in the offshore Otway Basin from Beach Energy Ltd (ASX: BPT) for $58.3 million, which Morgans said was a deal that made sense for the company.

Amplitude Managing Director Jane Norman said regarding the deal:

Producing Artisan through Amplitude Energy’s existing infrastructure allows faster and lower-cost development of this gas for the east coast domestic market. Artisan development costs will significantly benefit from leveraging the existing East Coast Supply Project (ECSP) program and our readily-available infrastructure. This is a win-win for Amplitude, O.G. Energy and Beach with respect to optimising our respective Otway Basin positions. We expect to rapidly move to FID on the development phase of the ECSP over the next few months while the drilling of the Juliet and Annie wells is conducted, with Juliet now brought forward and drilling expected to commence by late July or early August.

Morgans said the deal de-risked the ECSP for Amplitude.

Amplitude shares looking cheap

Morgans added:

While the year-to-date share price performance has been disappointing, driven by gas reservation policy uncertainty and the ECSP drilling results, but in our view the share price pressure has outpaced the change in value and has increased the size of the long-term value upside on offer. While there remains great uncertainty around Australia’s gas reservation policy, which could bring some downside to long-term domestic gas prices (potentially), it is hard not to believe we are near peak negativity on the topic sentiment wise (an appealing marker for value investors).

Morgans has a buy rating on Amplitude shares with a price target of $3, compared to $1.27 currently.

Amplitude is valued at $385.35 million.

The post This ASX gas company could more than double in value: Broker 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.

Zip Co Ltd (ASX: ZIP) shares have fallen back into the red this week.

At the time of writing, the buy now, pay later (BNPL) provider’s shares are down around 8% for the year-to-date, but they’re still around 1% higher than 12 months ago.

Zip shares have been volatile ever since the stock was caught up in an ongoing sector-wide tech sell-off. 

Technology and growth shares have also come under renewed pressure recently as investors reassess valuations and risk appetite. 

The ASX 200 tech shares rebounded an impressive 40% in June, but since the first of July, they have resumed their downward trajectory. 

For context, the S&P/ASX 200 Index (ASX: XJO) is roughly flat for the year-to-date at the time of writing, but around 1.5% higher than 12 months ago.

It’s not all bad news for Zip shares though. Here are three reasons to add the tech stock to your portfolio this financial year, and three reasons to sell up.

3 reasons to buy Zip shares

1. The company is financially sound

Zip’s financial results have been strong through the past few quarters. Its latest third-quarter FY26 results announcement in mid-April showed that growth has started to accelerate. The fintech business also upgraded its FY26 group cash EBTDA guidance to at least $260 million, from previous guidance of around $248.6 million.

2. Zip is aggressively expanding

Zip is rapidly expanding its product range and aggressively expanding its global presence, especially in the US. Late last year, the company announced that its US segment was expanding its partnership with the programmable financial services business Stripe. In early February, the company confirmed it is expanding its US presence by launching a new Pay in 2 product. Zip is also pursuing a dual sharemarket listing on the Nasdaq in the US. This could help drive an even opportunity for business expansion in the area.

3. Brokers tip a huge upside ahead

TradingView data shows that analysts are very bullish on Zip’s outlook over the next 12 months.

Out of 12 analysts, 11 have a buy or strong buy consensus on the shares, and the average $3.87 target price implies a potential 25% upside.

Some are even more optimistic and tip the shares to increase up to 74% to $5.40 a piece, at the time of writing.

3 reasons to sell Zip shares

1. There is increasing competition

Zip competes with major players including Klarna, PayPal, Block (through Afterpay), traditional banks, and credit card providers. Increased competition can pressure the company’s margins and growth.

2. Zip doesn’t pay dividends

If passive income is your goal, Zip isn’t the stock for you. The company is still in the growth phase, which means it is focusing its funds on growing the business rather than distributing products to shareholders.

3. Zip is highly sensitive to volatility

Zip is a growth stock, which means its share price is subject to investor sentiment, changes in interest rates, slower consumer spending, and even employment rates. It’s not a defensive asset which means it isn’t as resilient as some other alternatives during times of sharemarket volatility.

The post Zip shares: 3 reasons to buy and 3 reasons to sell 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 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.

Ten years is long enough for the share market to embarrass short-term opinions.

Themes come and go, but some parts of the global economy look likely to become more important over time.

With that in mind, here are three ASX exchange traded funds (ETFs) that could be worth buying and holding for the next decade.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF could be one of the best ASX ETFs to buy and hold for 10 years.

This fund is often described as a technology ETF, but that undersells it.

This ASX ETF is really a bet on the companies building the operating system of modern life. Search, cloud computing, artificial intelligence, digital advertising, streaming, online shopping, software, chips, smartphones, and payments all sit inside the broader ecosystem that the Nasdaq 100 captures.

The power of this ETF is that investors do not need to know exactly which part of the digital economy wins next.

Maybe artificial intelligence keeps driving spending. Or maybe cloud platforms become even more important, or software, chips, or digital media take the next turn.

The Betashares Nasdaq 100 ETF gives investors exposure to a collection of businesses with the scale, cash flow, and ambition to keep shaping those changes.

Betashares Global Cybersecurity ETF (ASX: HACK)

The Betashares Global Cybersecurity ETF could be a strong option for investors who think the digital world is becoming more vulnerable as it becomes more valuable.

Every new app, cloud platform, connected device, payment system, workplace tool, and artificial intelligence service creates another door that needs a lock.

That is the simple idea behind this ASX ETF. Cybersecurity used to sound like a specialist IT department issue. Today, it is closer to insurance, compliance, infrastructure, and reputation protection all rolled into one.

Companies can cut back on some technology spending when conditions get tougher, but leaving systems exposed is becoming harder to justify.

The Betashares Global Cybersecurity ETF gives investors exposure to businesses trying to solve that problem across networks, identity, cloud security, endpoint protection, and threat detection.

The fund can move sharply because cybersecurity shares often trade on high expectations. But the long-term demand outlook is hard to dismiss.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

Finally, the VanEck Morningstar Wide Moat ETF brings something different to the table.

While the other two funds lean into big growth themes, this ASX ETF is built around business durability.

The fund looks for US companies believed to have sustainable competitive advantages and attractive valuations.

That can mean brands customers keep choosing, networks that are hard to copy, cost advantages, intellectual property, scale, or high switching costs.

The idea is simple enough. Great businesses can stay great for longer than expected when competitors struggle to attack their economics.

The VanEck Morningstar Wide Moat ETF also adds a valuation filter, which can help stop investors from simply chasing quality at any price.

A decade is a long time in markets, and plenty will change along the way. But a portfolio of companies with strong competitive positions and valuation discipline could be well placed to keep doing its job.

The post The best ASX ETFs to buy and hold for 10 years appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.