CSL Ltd (ASX: CSL), Pro Medicus Ltd (ASX: PME), and BHP Group Ltd (ASX: BHP) shares are turning heads today.

In morning trade on Tuesday, all three of the S&P/ASX 200 Index (ASX: XJO) heavyweights are charging ahead of the 0.1% gains posted by the benchmark index.

Here’s what’s piquing investor interest.

BHP shares jump on 30% profit surge

BHP shares are leaping higher today, up 3.1% and changing hands for $64.12 apiece.

This follows the release of the ASX 200 mining giant’s full-year FY 2026 results.

Among the highlights that look to have investors reaching for their buy buttons, BHP reported a 15% year-on-year increase in revenue to US$58.8 billion. And underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$32.9 billion were up 27%.

The mining giant also achieved a 17% increase in its operating cash flow to US$21.8 billion.

On the bottom line, BHP shares are catching tailwinds with the miner reporting a 30% increase in underlying profit to US$13.2 billion.

On the passive income front, FY 2026 saw US$8.7 billion in dividends determined, equivalent to US$1.72 per share for a 66% payout ratio.

Pro Medicus shares leap on earnings increase

Like BHP shares, Pro Medicus shares are charging higher today following the release of the company’s own FY 2026 results.

Shares in the ASX 200 health imaging company are up a whopping 10.8% at the time of writing, changing hands for $194.78

Investors are piling into Pro Medicus shares after the company reported a 22.9% year-on-year increase in revenue to $261.7 million. And underlying earnings before interest and tax (EBIT) of $196.1 million were up 24.4% from FY 2025.

This helped drive a 24.1% increase in the company’s underlying net profit after tax (NPAT) to $144.7 million.

Pro Medicus also increased its cash and financial assets by 19.7% over the year to $252.3 million.

And the company’s final fully-franked dividend of 37 cents per share is up 23.3% from last year’s payout.

Which brings us to…

CSL shares rocket on profit outlook

Joining Pro Medicus and BHP shares in turning heads – and rocketing higher – today we find CSL.

Shares in the ASX 200 biotech giant are up an impressive 15.4% at the time of writing, trading for $155.37 each. This strong outperformance also follows on CSL’s full-year earnings results.

CSL shares are shooting higher despite the company reporting a 1% year-on-year decline in revenue to US$15.8 billion. And underlying NPATA of US$3.1 billion was down 2% from FY 2025.

Still, management declared a final dividend of US$1.62 per share, in line with last year’s payout.

The big uplift in CSL shares today looks to be driven by the more positive outlook for FY 2027.

“FY26 has been a year of reset. We have taken decisive action and created a clear path to return to sustainable growth,” CSL interim CEO Gordon Naylor said.

Management is forecasting steady revenue in the financial year ahead, while underlying NPAT is forecast to grow by around 5%.

The post Why is everyone talking about CSL, Pro Medicus and BHP shares on Tuesday? appeared first on The Motley Fool Australia.

More reading

• How to find ASX shares that Warren Buffett might buy
• How much do I need in my superannuation to earn $50,000 per year in passive income?
• How many BHP shares do I need to buy for $1,000 per month of passive income?
• Pro Medicus FY26: Strong earnings growth and higher dividend
• BHP Group posts record FY26 earnings and flags copper-led future

Motley Fool contributor Bernd Struben 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 CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended BHP Group, CSL, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Warren Buffett has built one of the greatest investing records in history by owning high-quality businesses for very long periods.

Of course, we cannot know which ASX shares Buffett would actually buy. He may look at the Australian market very differently from me, and price would also play a major role in any investment decision.

What we can do is look at the types of businesses he has historically favoured and ask which ASX shares appear to share some of those characteristics.

Here are three that stand out to me.

Wesfarmers Ltd (ASX: WES)

One trait I associate strongly with Buffett is a preference for businesses that are relatively easy to understand.

Wesfarmers certainly fits that description in my opinion.

Its portfolio includes consumer businesses such as Bunnings, Kmart and Officeworks, which sell products millions of Australians regularly buy. These are established brands with large customer bases and strong positions in their respective markets.

I think Bunnings is particularly interesting from a Buffett-style perspective. Its scale, brand recognition and store network would be extremely difficult for a new competitor to replicate.

Wesfarmers also has a long history of allocating capital across different businesses. That is another characteristic I would look for when trying to identify a company Buffett might appreciate. Strong management teams can create significant value when they have the discipline to invest heavily in attractive opportunities while avoiding poor ones.

The price still has to make sense, but I think Wesfarmers has many of the business qualities I would expect a Buffett-style investor to value.

REA Group Ltd (ASX: REA)

Buffett has often invested in companies with powerful competitive advantages.

REA Group is one ASX share I think fits that profile particularly well.

Its realestate.com.au platform has become an important part of the Australian property market. Buyers naturally want to search where the largest number of properties are listed, while sellers and real estate agents want to advertise where the largest audience is looking.

That creates a powerful network effect. As more buyers use the platform, it becomes more valuable to advertisers. That in turn can attract more listings, which helps keep buyers coming back.

Businesses with this type of competitive advantage can potentially protect their market position for a very long time.

REA Group also benefits from a relatively capital-light digital business model, meaning growth does not necessarily require huge spending on physical assets.

For me, those qualities make it the kind of ASX business that deserves a closer look through a Buffett-style lens.

CSL Ltd (ASX: CSL)

Another Buffett characteristic I would look for is a business with a sustainable leadership position in an industry where replacing an established operator would be difficult.

CSL fits that description for me. The healthcare company has spent decades building its plasma collection network, manufacturing capabilities, scientific expertise and relationships across global markets.

Those assets cannot simply be recreated overnight.

Demand for many of CSL’s therapies is also connected to serious medical needs, giving the business exposure to healthcare demand that can persist through different economic environments.

There is also potential for long-term growth as the company expands production, develops new therapies and reaches more patients around the world.

CSL is more complicated than some classic Buffett investments, but I think its competitive position, global scale and long-term focus give it several qualities he has historically looked for in businesses.

Foolish takeaway

Trying to guess exactly what Warren Buffett would buy is unlikely to get investors very far.

I think the more valuable exercise is studying the qualities behind his investments.

Strong competitive advantages, understandable business models, capable management and the ability to generate attractive returns over many years are all characteristics worth looking for.

Wesfarmers, REA Group and CSL each appear to tick several of those boxes in my view.

The post How to find ASX shares that Warren Buffett might buy appeared first on The Motley Fool Australia.

More reading

• Why is everyone talking about CSL, Pro Medicus and BHP shares on Tuesday?
• Here’s what brokers tip for Wesfarmers shares over the next 12 months
• How much do I need in my superannuation to earn $50,000 per year in passive income?
• 3 reasons to buy this rebounding ASX 200 dividend stock today
• CSL earnings: FY26 sees reset and path to future growth

Motley Fool contributor Grace Alvino has positions in CSL and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Wesfarmers. The Motley Fool Australia has recommended CSL and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wesfarmers Ltd (ASX: WES) shares have fallen into the red in early morning trade on Tuesday.

At the time of writing, shares in the conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks, and Priceline – are down around 1.5% and are changing hands for $83.58 a piece.

Today’s decline follows a 4% drop in the share price yesterday.

Interest rate and inflation concerns, and cost of living pressures have acted as strong headwinds for the company so far this year. 

Wesfarmers shares have been pretty volatile for the year-to-date, swinging anywhere between an annual low of $71.26 in mid-May and a high of $92.96 in mid-July.

The shares are now around 2% higher for the year-to-date but still 7% lower than a year ago.

For context, the S&P/ASX 200 Index (ASX: XJO) is up around 4% for the year-to-date, and roughly 1.5% higher than 12 months ago.

What do brokers tip next for Wesfarmers shares?

Wesfarmers is due to announce its FY26 results on the 27th of August. 

Investors are eager to find out Wesfarmers’ FY26 key group financial metrics and final dividend size. The result is expected to influence the direction of Wesfarmers shares and sentiment about the company’s outlook.

Wesfarmers has already paid a fully-franked interim dividend of $1.02 per share. Consensus estimates point to a final FY26 dividend of around $2.20.

It looks like the experts are pretty bearish on the outlook for Wesfarmers shares ahead of its results announcement.

According to Market Index data, the majority of brokers have a sell rating on the conglomerate’s shares. The $78.16 average target price implies a potential downside of around 7% at the time of writing.

The data is similar on TradingView. Again, the majority (nine out of 15) have a strong sell rating on the consumer discretionary shares. However five still think the shares are a hold and one analyst rates the stock as a buy.

The average $77.56 target price implies a downside of around 7%, at the time of writing. Although some think that the shares have the potential to fall up to 22% to $65.10 over the next 12 months.

Morgan Stanley has a sell rating and a $79 price target. The broker recently warned that the rally in consumer discretionary stocks has “run ahead of fundamentals and is unlikely to prove durable”.

Alto Capital’s Tony Locantro also has a sell rating. He thinks that much of Wesfarmers’ quality and long-term growth outlook is already fully reflected in the current valuation. He added that future upside may be constrained by elevated market expectations.

The post Here’s what brokers tip for Wesfarmers shares over the next 12 months appeared first on The Motley Fool Australia.

More reading

• How to find ASX shares that Warren Buffett might buy
• Reporting season half-time report: 5 lessons from August so far
• How to build a strong ASX retirement portfolio with 10 shares
• Which is the best Vanguard ETF? VAS, VGS and VDHG compared
• Why I’d buy these 2 ASX ETFs for $10,000 a year in passive income

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 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.