Rio Tinto Ltd (ASX: RIO) has been one of the stronger performers in the mining sector over the past year.

After a run like that, it is reasonable to wonder whether much of the opportunity has already been captured.

So, would I still put $5,000 into Rio Tinto shares this week?

The valuation still looks reasonable

Rio Tinto shares are currently trading around $168.84.

According to CommSec, consensus earnings per share estimates stand at $12.07 in FY26 and $12.04 in FY27.

That puts the miner on a forward price-to-earnings multiple of around 14 times in both years.

I think that looks reasonable for a global mining company with substantial exposure to iron ore, aluminium and, increasingly, copper.

There is passive income to consider as well. CommSec expects fully franked dividends of $6.63 per share in FY26 and $6.62 in FY27, which would represent a forecast yield of roughly 3.9% at the current share price.

That gives investors something back while waiting for the longer-term growth story to develop.

Copper is where I get more excited

The copper side of Rio Tinto is becoming increasingly important to my investment case.

Demand for the metal should benefit from spending on electricity networks, renewable energy, electric vehicles, data centres and other infrastructure needed as the global economy becomes more electrified.

Rio Tinto already has major copper operations, and Oyu Tolgoi in Mongolia is giving it a meaningful source of production growth.

Copper production from Oyu Tolgoi increased by 31% to 198,000 tonnes during the first half of 2026 as the underground operation continued ramping up.

I think the longer-term opportunity is even more interesting. Rio Tinto expects Oyu Tolgoi to produce around 500,000 tonnes of copper per year on average between 2028 and 2036 from its open pit and underground operations. At that scale, it is expected to become one of the world’s largest copper mines.

That gives Rio Tinto a growth project already moving towards much higher production at a time when I expect copper to become increasingly valuable.

What would make me cautious?

Rio Tinto shares have risen by around 50% over the past 12 months, so expectations are certainly higher than they were a year ago.

Mining earnings can also change quickly when commodity prices move. Iron ore remains an important contributor, while a weaker copper price could reduce some of the excitement around the company’s expanding production.

The relatively flat consensus earnings forecasts for FY26 and FY27 are a reminder of that cyclicality.

But I think Rio Tinto is becoming a more interesting business for the years ahead. Its copper production is growing, Oyu Tolgoi still has a long ramp-up ahead, and the wider portfolio gives the company several major commodities to work with.

Foolish takeaway

I would invest $5,000 into Rio Tinto shares this week.

The strong share price performance over the past year has made the entry point less attractive than it once was, but I still think around 14 times forecast earnings represents good value.

More importantly, I like where the business could be heading over the next several years as copper becomes a larger part of the story.

For investors prepared to accept the ups and downs that come with mining shares, I think Rio Tinto remains a strong long-term buy.

The post Would I invest $5,000 into Rio Tinto shares this week? appeared first on The Motley Fool Australia.

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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.

PLS Group Ltd (ASX: PLS) shares are pushing higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock– formerly known as Pilbara Minerals – closed yesterday trading for $4.93. In late morning trade on Wednesday, shares are swapping hands for $4.96 each, up 0.6%.

For some context, the ASX 200 is down 0.4% amid renewed concerns over the enduring conflict in the Middle East.

Today’s outperformance is par for the course for the Aussie lithium producer, with PLS shares up 117.7% since this time last year, smashing the 1.6% one-year gains posted by the benchmark index.

Some of that strong performance has been fuelled by the 79% increase in global spodumene (a lithium bearing ore) prices. Though the miner has hardly been sitting idle.

So, with PLS having turned $10,000 into $21,770 in the last 12 months, is the ASX lithium stock still a good buy today?

PLS shares: Buy, hold, or sell?

Dolphin Partners Financial Services’ Arthur Garipoli recently ran his slide rule over the lithium miner (courtesy of The Bull).

“This high-quality pure play lithium producer recently delivered a solid June quarter report in fiscal year 2026,” he said.

“Sales were up 28% compared to the March quarter and group revenue was up 31%,” Garipoli noted.

PLS released those results on 30 July, with shares closing up 2.7% on the day. The revenue boost Garipoli mentioned saw the company report $743 million in revenue for the three months, with sales volumes of 249,900 tonnes.

While Garipoli sounded a positive note on the miner, including renewed dividend potential, he issued a hold recommendation on PLS shares for now.

According to Garipoli:

The company has benefited from rising spodumene prices and sustains a solid balance sheet. Restarting the Ngungaju processing plant is expected to materially lift sales into full year 2027. Speculation exists that PLS may resume paying dividends following stronger than expected cash generation in full year 2026.

In 2023, PLS paid two fully-franked dividends, totalling 25 cents per share. Those passive income payouts were suspended in 2024 amid slumping lithium prices.

What’s ahead for the ASX 200 lithium stock?

Looking to what could impact PLS shares in the months ahead, the company provided FY 2027 spodumene production guidance in the range of 1.03 million to 1.10 million tonnes, with growth spurred by the ramp up at the miner’s Ngungaju plant.

Costs are also expected to rise, with PLS forecasting FY 2027 unit operating costs (FOB) between $575 to $625 per tonne.

PLS also plans to increase its investment spend, forecasting full-year capital expenditure between $620 million to $685 million.

The post Up 118%! Are PLS shares now a buy, hold or sell? appeared first on The Motley Fool Australia.

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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 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.

ASX retail stock Temple & Webster Group Ltd (ASX: TPW) is getting hammered, plunging 17% to a new 52-week low of $4.18 on Wednesday.

The stock is down 70% in 2026 and 82% over 12 months, vastly underperforming the S&P/ASX 200 Index (ASX: XJO).

And yet, the online retailer just delivered record revenue and stronger profitability. So, what’s going on?

Temple & Webster keeps growing

This $600 million ASX retail stock is one of Australia’s leading online retailers, selling hundreds of thousands of homewares, furniture, and home improvement products.

And here’s a key part of the model: most products are shipped directly from suppliers. That gives Temple & Webster a remarkably capital-light model for the sheer volume of products flowing through its platform.

Today’s numbers show the business is still moving forward. Revenue climbed 10.6% to $664.6 million, while EBITDA rose 16.6% to $21.9 million. Strip out foreign exchange effects, and underlying EBITDA jumped an impressive 28% to $25.9 million.

Delivered margin improved 5.5% to $201 million, while the company ended FY26 with $122.7 million in cash after spending $30 million on share buybacks.

Customer metrics were encouraging, too. Market share increased to 2.9%, active customers rose 5% to about 1.3 million, and repeat customers generated 62% of all orders, up from 59%.

There are growth engines beyond the core business, too. Exclusive product lines and adjacent businesses are now generating more than $100 million in annual revenue. The New Zealand operation contributed $3 million since launching in October 2025, while home improvement revenue surged 39%.

Temple & Webster also generated $24 million in operating cash flow, while fixed costs fell as a percentage of revenue.

What did management say?

Executive Chair Mark Coulter said:

Despite a challenging environment, we have been able to deliver record annual revenue of $665 million, while materially improving the underlying profitability of the business through several margin optimisation initiatives. These initiatives, combined with the flexibility of our operating model, resulted in our Underlying EBITDA (excluding unrealised foreign exchange losses) increasing by 28% vs pcp to $26 million.

What’s next for Temple & Webster?

Here’s where things get interesting for the ASX retail stock. Temple & Webster is targeting FY27 EBITDA of $33 million to $40 million, implying roughly 50% to 80% growth from FY26.

Management wants to return to double-digit revenue growth by leaning harder into digital and AI innovation, strengthening its core online offering, and scaling home improvement and New Zealand.

New CEO Susie Sugden is also expected to outline the next phase of the strategy at the AGM and first-half results, with the company targeting further growth in Australia’s $40 billion-plus homewares and furniture market.

Foolish takeaway

The market appears to be demanding faster growth from the ASX retail stock, despite the strong FY26 result.

That disconnect between solid execution and lofty expectations could be the key to understanding this brutal sell-off.

The post Why is this ASX retail stock crashing to new lows today? 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 positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.