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.

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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.

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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 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.

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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 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.