The ASX reporting season continues, with ASX majors Electro Optic Systems Holdings Ltd (ASX: EOS), PLS Group Ltd (ASX: PLS), and Bendigo and Adelaide Bank Ltd (ASX: BEN) posting their results this week.

Let’s recap how the shares are tracking today and whether brokers rate them a buy, sell, or hold.

Buy EOS shares

EOS posted a huge 283% hike in its half-year revenue this morning, and a reduced net loss of $32.9 million. Underlying EBITDA swung into profit, and its net assets grew to $391.6 million.

Going forward, EOS expects continued strong demand, driven by defence spending and escalating global interest in counter-drone technologies. 

Management has forecast FY26 revenue (including MARSS) of $360 million to $400 million, assuming global supply chains remain steady. If this comes to fruition, this would be a record result.

Clearly, investors are thrilled with the result. EOS shares are up around 13% in morning trade and changing hands at $9.75 apiece. Today’s increase means the shares are now just 2% lower year to date but a huge 93% higher than 12 months ago.

Brokers are also incredibly bullish about the outlook for EOS shares. TradingView data shows that all analysts rate the stock a strong buy. The average $13.64 target price implies a potential 40% upside at the time of writing.

Buy PLS shares

PLS posted its FY26 earnings results ahead of the market open on Monday morning. The company announced a 152% increase in revenue, a 59% increase in underlying EBITDA, and a swing into profit in NPAT (from a loss in the prior corresponding period).

The company has also announced a 5-cent-per-share, fully-franked final dividend for FY26. This is great news for investors after PLS suspended its dividend payouts in 2024 amid cratering global lithium prices.

PLS shares jumped 7% higher following the results announcement yesterday, but the share price has softened again today. At the time of writing, PLS shares are down around 4% and trading at $5.26 per share. For the year to date, shares are still up 22%.

Analysts’ sentiment about the outlook for PLS shares is divided, but the majority hold a buy/strong buy rating on the shares. The average $5.36 target price implies a potential 2% upside ahead.

Sell Bendigo and Adelaide Bank shares

Bendigo and Adelaide Bank also ported its FY26 results on Monday. The bank reported a 3% increase in cash earnings, statutory net profit after tax of $375.1 million, and a fully-franked final dividend of 33 cents per share.

Investors appear to be mostly neutral about the result, and the share price ended the day around 0.5% lower on Monday. But this morning, there seems to be an injection of confidence back into the bank stock.

At the time of writing, the ASX bank shares are up around 3% and changing hands for $10.76 a piece. The increase means the shares are now around 1.5% higher year to date.

The experts are quite reserved about what’ll happen to Bendigo and Adelaide Bank shares next, however. The majority (nine out of 14) have a hold rating on the shares, and the average $10.33 target price implies a potential 4% downside, at the time of writing.

The post Buy, hold, sell: Bendigo and Adelaide Bank, PLS, EOS shares appeared first on The Motley Fool Australia.

More reading

• EOS shares rocket 13% today. Can the rally keep going?
• What is this broker’s updated view on PLS shares after big results?
• Electro Optic Systems half-year earnings surge on booming defence demand
• 3 great dividend stocks with 6% yields to boost passive income in FY27
• 5 things to watch on the ASX 200 on Tuesday

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 Electro Optic Systems. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Some investments do not need a complicated thesis.

The iShares S&P 500 AUD ETF (ASX: IVV) gives Australian investors access to many of America’s largest companies through a single ASX-listed fund.

For me, that makes it a strong long-term option.

Access to some of the world’s strongest businesses

The IVV ETF tracks the S&P 500 Index, which contains around 500 large US companies, including Apple, Microsoft, Nvidia, Bank Of America, Walmart, Merck & Co, and Verizon.

That gives investors exposure to businesses operating across technology, healthcare, financial services, consumer products, industrials, communication services, and many other areas of the US economy.

I think this is particularly valuable for Australian investors. The ASX has some excellent companies, but our market is heavily influenced by financial and resources businesses. The US market gives investors much greater exposure to areas such as software, semiconductors, digital advertising, medical technology, and global consumer brands.

Many of the companies inside the S&P 500 also generate revenue around the world.

So while the IVV ETF invests in US-listed companies, the underlying businesses can have customers spread across North America, Europe, Asia, and other major markets.

That gives investors exposure to far more than the US economy alone.

The index can evolve over time

Another reason I like the IVV ETF is that ASX investors do not have to predict which companies will dominate the next decade.

The S&P 500 index changes as corporate America changes.

Companies that grow can become increasingly important within the index, while businesses that lose relevance can eventually become smaller holdings or leave the index entirely. For example, today Nvidia is highly important, whereas 50 years ago it was IBM.

I think that is a powerful feature for a long-term investor.

Twenty years from now, some of today’s leading businesses may still be enormous. Others may have been overtaken by companies that are only beginning their growth stories today.

An investor in the IVV ETF does not need to identify those winners in advance.

They can simply continue owning a large collection of leading US businesses as the market develops.

It keeps investing simple

The IVV ETF also suits ASX investors who do not want to spend their spare time reading annual reports and comparing individual companies.

Buying individual shares can be rewarding, but it requires research and comes with the possibility of getting a company-specific decision badly wrong.

With the IVV ETF, one investment spreads money across hundreds of businesses.

That can make it easier to keep contributing through strong markets, weak markets, recessions, and whatever else happens over a long investing career.

For me, this simplicity is one of the fund’s biggest strengths.

A sensible investment strategy that someone can stick with for decades can be far more powerful than a clever strategy they abandon after a difficult year.

There are still risks

The IVV ETF is diversified across hundreds of companies, but it is not immune from large falls.

US shares can become expensive, recessions can hurt corporate earnings, and the index can experience lengthy periods of weak performance.

The largest US companies also account for a meaningful share of the S&P 500 index, so the fund can become quite concentrated at the top.

Australian investors also have currency exposure because the IVV ETF is not hedged back to the Australian dollar. Movements in the Australian dollar against the US dollar can therefore influence returns.

Nevertheless, I would be comfortable accepting those risks with a long enough timeframe.

Foolish takeaway

I think the IVV ETF offers one of the simplest ways for ASX investors to participate in the long-term growth of major global businesses.

There will inevitably be periods when US shares fall out of favour, and I would expect plenty of volatility over the years.

But if I wanted an investment I could keep adding to and potentially hold for decades, the IVV ETF would be high on my list.

The post Why I think the IVV ETF is a strong buy for ASX investors appeared first on The Motley Fool Australia.

More reading

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• Why every Aussie investor should own one of these ASX ETFs
• 15% for 10 years: Is this ASX ETF a no-brainer buy?
• How much is needed in superannuation to target a $40,000 annual passive income?
• Is $2 million really the new superannuation target?

Bank of America is an advertising partner of Motley Fool Money. Motley Fool contributor Grace Alvino 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 Apple, International Business Machines, Merck, Microsoft, Nvidia, Walmart, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Verizon Communications. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fortescue Ltd (ASX: FMG) remains one of Australia’s largest iron ore producers and a popular choice among resources investors.

But if I had $10,000 ready to invest today, I would be looking closely at what the next few years could bring rather than what the company has delivered in the past.

For now, I would keep my money on the sidelines.

The forecasts have moved the wrong way

Fortescue shares are trading around $17.99, which may initially look tempting after periods of weakness.

The problem for me is the earnings outlook. According to CommSec, consensus earnings per share forecasts have been trimmed this week and now stand at $1.34 in FY27, $1.21 in FY28, and $1.13 in FY29.

That implies earnings could fall by around 16% between FY27 and FY29.

I would be more comfortable buying a cyclical miner when the valuation gives me a greater margin for error or when I can see a stronger earnings outlook developing.

At $17.99, Fortescue trades on a PE ratio of roughly 13 times estimated FY27 earnings. By FY29, that rises to almost 16 times because analysts expect profits to decline.

For a business whose earnings remain heavily influenced by the iron ore price, I do not think that looks particularly compelling.

The dividend outlook is also weakening

Fortescue has historically attracted plenty of attention from income investors because it can distribute substantial amounts of cash when iron ore conditions are favourable.

Current forecasts suggest those payments could move lower over the next few years. Consensus estimates point to dividends per share of 85.8 cents in FY27, falling to 77.6 cents in FY28 and 70.7 cents in FY29.

That is still a meaningful amount of income, but I am more interested in the direction of travel.

If those forecasts prove accurate, both earnings and dividends would be declining at the same time.

That makes it harder for me to get excited about investing $10,000 today, particularly when there are other large miners competing for my money.

I still think Fortescue is a strong miner

My hesitation does not mean I think Fortescue is a poor business.

It has built an enormous iron ore operation in Western Australia and has spent years developing the infrastructure, mining expertise, and export network needed to move huge volumes efficiently.

That scale remains a major strength.

Iron ore demand and prices could also turn out stronger than analysts currently expect. If that happens, the earnings and dividend forecasts could eventually move higher again.

Fortescue is also investing beyond its traditional iron ore operations, although I would want to see those newer opportunities make a more substantial contribution before relying on them in my investment case.

For now, the core business remains closely tied to iron ore, and the consensus numbers suggest the next few years may be challenging.

Hold rather than buy

If I already owned Fortescue shares, I would not necessarily rush to sell them.

The company remains a major producer with valuable assets, and commodity markets can surprise in either direction.

But there is a difference between being willing to continue holding a good mining business and deciding that today is an attractive moment to put another $10,000 into it.

I would want either a cheaper entry point or signs that the earnings outlook is beginning to improve before becoming more positive.

Foolish takeaway

I would not invest $10,000 into Fortescue shares at around $17.99 today.

The company itself still has plenty going for it, but the current forecasts do not give me enough reason to buy. Earnings are expected to decline through FY29, dividends are forecast to follow them lower, and the shares would still be trading at almost 16 times FY29 earnings if those estimates prove accurate.

For me, Fortescue is closer to a hold than a buy right now. I would be happy to keep watching and reconsider if the price or earnings outlook becomes more attractive.

The post Should I invest $10,000 into Fortescue shares? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Grace Alvino 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.