S&P/ASX 200 Index (ASX: XJO) shares edged 2.77% higher and generated total returns, including dividends, of 7% in FY26.   

Among the 11 market sectors, materials was the best performer of the year, rising 47% and producing a total return of 52%.

The worst-performing sector was healthcare, which fell 37% and produced a total negative return of 36%.

On The Bull this week, Andrew Wielandt from DP Wealth Advisory lets us in on some stock tips for the new financial year.

L1 Long Short Fund (ASX: LSF)

Wielandt has a buy rating on this ASX listed investment company (LIC), which he holds in his personal self-managed super fund.

He explains:

LSF provides exposure to long and short strategies on a global scale, meaning it takes either a positive or negative view on each position in the portfolio.

The strategy holds between 50 and 100 companies, with 30 per cent or less held offshore.

The fund has delivered returns of 20.2 per cent per annum since its inception in 2014.

LSF has risen from $2.97 on July 10, 2025 to trade at $4.66 on July 9, 2026.

The fund has a strong track record of delivering results and I believe the outlook is bright.

Wesfarmers Ltd (ASX: WES) 

The Wesfarmers share price rose 7% to close out FY26 at $90.40 per share.

Wielandt has a hold rating on the market’s largest ASX 200 consumer discretionary share.

He said:

WES is one of Australia’s largest diversified industrial companies, spanning retail, chemicals, fertilisers, industrials and health.

The retail division, including hardware giant Bunnings, Kmart Group and Officeworks, continues to perform well despite a slowing domestic economy.

Investment in the Priceline pharmacy chain provides upside potential.

WES generates a strong return on shareholders funds, but the stock is trading near a 12-month broker consensus target price, so we retain a hold recommendation.

REA Group Ltd (ASX: REA)

The REA share price tumbled 42% to finish FY26 at $139.19.

Wielandt has a sell rating on this ASX 200 communications share. 

He explained: 

REA is the dominant online property platform in Australia. But competitor Domain Holdings Australia, acquired by US listed company CoStar Group, is expected to provide fierce competition.

Federal Budget changes to capital gains tax and negative gearing leaves property far less appealing to investors.

The Australian property market is slowing, which could impact REA listing volumes moving forward.

Auction clearance rates have been falling in Sydney and Melbourne. Other stocks appeal more at this stage of the cycle.

The post Buy, hold, sell: L1 Long Short Fund, REA, Wesfarmers shares appeared first on The Motley Fool Australia.

More reading

• How much superannuation do you need to earn $5,000 a month in passive income?
• Here are the top 10 ASX 200 shares today
• Up 12% in 2026! Are Wesfarmers shares now too expensive?
• Experts name 3 big-name ASX 200 shares to sell
• If I invest $3,000 in Wesfarmers shares, how much passive income will I earn in FY27?

Motley Fool contributor Bronwyn Allen 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 CoStar Group and Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Monday, the S&P/ASX 200 Index (ASX: XJO) fought hard to finish in positive territory. The benchmark index edged higher to 8,808.5 points.

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

ASX 200 to fall

The Australian share market looks set for a subdued session on Tuesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% lower. In the United States, the Dow Jones dropped 0.25%, the S&P 500 fell 0.8%, and the Nasdaq tumbled 1.55%.

Magellan shares upgraded

Magellan Financial Group Ltd (ASX: MFG) shares have been upgraded by analysts at Morgans. According to the note, the broker has upgraded the fund manager’s shares to an accumulate rating with an $11.26 price target. It said: “With the recent pullback in the share price, we now have more upside (~13%) to our price target and move to an ACCUMULATE recommendation (from Hold).” 

Oil prices jump

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a strong session after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 9.2% to US$78.00 a barrel and the Brent crude oil price is up 9.5% to US$83.25 a barrel. Traders were bidding oil higher after US President Donald Trump reinstated a blockade on Iran.

Gold price sinks

It is likely to be a tough session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price sank overnight. According to CNBC, the gold futures price is down 2.55% to US$4,008.7 an ounce. Surging oil prices have increased interest rate hike expectations.

Buy Forrestania shares

The team at Bell Potter is bullish on Forrestania Resources Ltd (ASX: FRS) shares. This morning, the broker has retained its speculative buy rating with an improved price target of $1.25. Bell Potter was pleased with its acquisition of the Edna May Gold Hub for $300 million. It said: “This is a transformational transaction for FRS. The acquisition of a second permitted processing hub at Edna May, combined with the 3.2Mtpa Lake Johnston plant, establishes FRS as a dual-hub operator with targeted combined milling capacity of 6.1Mtpa by H1 CY27.”

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

More reading

• This ASX gold stock could rocket 200%+ after ‘transformational’ deal
• 2 struggling ASX shares tipped to rebound up to 15%
• Here are the top 10 ASX 200 shares today
• ASX 200 drops as soaring oil prices rattle global markets
• 5 things to watch on the ASX 200 on Monday

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.

There are plenty of options in the gold sector for investors to choose from. 

But one ASX gold stock that could have huge upside potential according to Bell Potter is named below.

ASX gold stock tipped to triple

The gold stock that Bell Potter is positive on is Forrestania Resources Ltd (ASX: FRS).

Bell Potter notes that the company has just signed a transformational deal with Ramelius Resources Ltd (ASX: RMS) for the Edna May Gold Hub. It commented:

FRS has entered into a binding agreement to acquire 100% of the Edna May Gold Hub from Ramelius Resources Limited (ASX: RMS, not rated) for total consideration of A$300m, comprising A$210m in cash and A$90m in FRS scrip (225m shares at A$0.40/sh) (Transaction). The Transaction is accompanied by a A$310m two-tranche equity raising at A$0.40/sh. 

Edna May comprises a 2.9Mtpa conventional CIL processing plant (C&M since April 2025), 945koz Au Mineral Resource Estimate (MRE), ~1,000km² of tenements including the Tampia and Symes satellite deposits, a 185-room accommodation village, airstrip, tailings storage facility and grid power connection. The Transaction is conditional on FRS shareholder approval, regulatory approvals (potentially ACCC), assignment of third-party agreements including the Evolution Mining SPA, and completion of the equity raising. Completion is targeted for September 2026.

‘Transformational transaction’

The broker believes this positions the gold stock to grow its production to 200,000 ounces per annum within 18 months. It explains:

This is a transformational transaction for FRS. The acquisition of a second permitted processing hub at Edna May, combined with the 3.2Mtpa Lake Johnston plant, establishes FRS as a dual-hub operator with targeted combined milling capacity of 6.1Mtpa by H1 CY27. On a pro-forma basis, FRS will have a MRE base of approximately 2.7Moz (incl. Dulcie, ZNC), and a contiguous tenure position spanning the Southern Cross, Forrestania, Westonia and Eastern Goldfields regions. 

The enlarged entity has a credible pathway to steady-state production of >200kozpa across both hubs within 12-18 months, assuming successful commissioning and ramp-up at both plants. FRS will hold pro-forma cash of A$132m and a proposed A$100m debt facility to sufficiently fund the ramp-up period across both hubs.

Big potential returns

According to the note, Bell Potter has retained its speculative buy rating with an improved price target of $1.25. 

Based on its current share price of 38 cents, this implies potential upside of approximately 230%.

Commenting on its investment thesis, Bell Potter said:

The Transaction consideration implies an EV/Resource multiple of approximately A$317/oz based on the 945koz Edna May MRE (or A$100/t installed milling capacity). Adjusting for the ~A$300m replacement value of the existing plant and infrastructure (per FRS), the implied acquisition cost of the resource ounces is effectively negligible on a look-through basis, in our view. Incorporating the Edna May transaction, dualhub production profile, and revised cost and CAPEX assumptions, we raise our Valuation to $1.25/sh and maintain our Speculative Buy recommendation.

The post This ASX gold stock could rocket 200%+ after ‘transformational’ deal appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• $650 million in cash and gold, guidance hit: Why this ASX 200 stock is still falling
• Ramelius Resources achieves FY26 guidance, grows cash flow and completes Edna May sale
• This ASX gold stock could soar 60% thanks to a big announcement
• 6 ASX gold stocks Morgans rates as a buy

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.