Shares in mining heavyweight BHP Group Ltd (ASX: BHP) have finally hit a speed bump. BHP shares have fallen around 10.5% from its recent record high of $65.98, and are down approximately 6.5% over the past five trading sessions.

Despite the pullback, long-term shareholders still have plenty to smile about. BHP shares remain up roughly 30% in 2026 and an impressive 64% over the past 12 months.

So, is this simply a healthy breather after a huge rally, or the beginning of something more concerning?

What do brokers think?

Judging by analyst forecasts, the market isn’t leaning strongly in either direction. According to TradingView data, most brokers are taking a wait-and-see approach.

Of the 19 analysts covering BHP shares, 13 currently rate the $300 billion mining giant as a hold. Four recommend buying the stock, while two recommend selling.

That tells a story of cautious optimism rather than outright enthusiasm. Among the latest broker moves, DZ Bank upgraded BHP from sell to hold. Its $65 price target implies around 10% upside from current levels.

What’s striking, however, is the enormous spread between broker forecasts. The most bullish analyst values BHP at $94.51 a share, suggesting upside of nearly 60%. The most bearish sits at just $40.97, implying downside of around 30%.

When professional investors disagree by that much, it usually reflects genuine uncertainty about where the business is heading.

Why are BHP shares under pressure?

The catalyst for the recent sell-off was BHP’s latest update on its giant Jansen potash project in Saskatchewan, Canada.

Following a comprehensive review, management revealed Stage 2 will cost far more than previously expected. The company now expects the project will require an additional US$4.9 billion to US$5.4 billion beyond earlier estimates. That’s on top of the original US$4.9 billion budget approved in late 2023.

BHP also expects to recognise an impairment charge of around US$2.3 billion relating to Jansen Stage 2 in its FY26 results.

The timeline has deteriorated as well. First production from Stage 2 is now targeted for FY2031, two years later than originally planned.

Little patience for bad news

Unfortunately for BHP shares, this isn’t the first time Jansen’s budget has blown out.

Each successive cost increase has chipped away at investor confidence and raised questions about management’s ability to accurately forecast one of the company’s biggest growth projects.

Stage 1 remains on track for first production in FY2027, although even that project’s cost estimate has drifted higher since it was first approved. BHP has promised another update on Stage 1 before the end of the year.

Timing also mattered

Before the announcement, BHP shares had rallied about 30% since the start of 2026, leaving the stock trading near record highs.

When expectations are elevated, markets tend to punish disappointments more severely. The sell-off likely reflects not only concerns over Jansen, but also some investors taking profits after an exceptional run.

The bigger picture, however, hasn’t changed dramatically. BHP still generates enormous cash flow from its world-class iron ore business, continues to expand its exposure to copper, and retains long-term optionality through potash.

For now, though, the market appears happy to wait for greater clarity on Jansen before pushing BHP shares decisively higher again.

The post BHP shares have lost momentum. Should investors be worried? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Life360 Inc. (ASX: 360) and Zip Co Ltd (ASX: ZIP) have been growing strongly for many years.

But I think the bigger opportunity is still ahead. Life360 is building a family safety and connection platform with a huge user base, while Zip is becoming a more profitable digital payments business with a particularly exciting opportunity in the United States.

Because of this, I think both ASX shares are strong buys for investors willing to accept some volatility.

Life360 shares

Life360 has become one of the more interesting consumer technology shares on the ASX.

The company’s app helps families stay connected through location sharing, driving safety features, alerts, and related services. I think that gives Life360 a useful emotional layer that many apps do not have. It is not just entertainment or convenience. For many families, the product is about reassurance.

That can be powerful if the company keeps building around that relationship.

Life360’s recent quarterly update showed how quickly the business is still growing. In the first quarter of 2026, total revenue grew 38% year over year to US$143.1 million. Monthly active users reached approximately 97.8 million, up 17% year-over-year, while total Paying Circles rose 27% to 3.0 million.

The advertising opportunity is also becoming more meaningful. Advertising revenue reached US$19.7 million in the quarter, up 329% year-over-year.

That is partly what makes Life360 exciting to me. The company has a large free user base, a growing paid subscriber base, and a developing advertising business. If it can keep improving the product without damaging user trust, there could be several ways to grow revenue over time.

There are risks. Consumer apps can be competitive, privacy is crucial, and valuation can move around quickly. But I think Life360 has the ingredients of a much larger business.

Zip shares

Zip is another ASX growth share I think is worth buying.

The buy-now-pay-later company has been through a major reset in recent years, and I think that makes the investment opportunity more attractive. It is not just chasing growth. It is showing better profitability, tighter execution, and momentum in the right markets.

The US business is what I value most. Zip recently said its US operations had 4.6 million active customers and annual transaction volume of around A$12 billion as at 31 March 2026. The company also pointed to a high-growth US business executing strongly in what it sees as an attractive early-stage market.

That is a big opportunity if Zip can keep underwriting customers profitably. The company says it serves Americans who are often overlooked by traditional financial services providers. I think that is an important point. Many customers still want flexible, transparent payment options, particularly when managing everyday expenses.

Zip’s update also showed group momentum. For the third quarter of FY26, total transaction volume rose 22.4% year over year, total income increased 20.2%, and cash EBTDA jumped 41.5%.

That combination of growth and improving profitability is what I want to see.

Foolish takeaway

Life360 and Zip are not low-risk blue-chip ASX shares, but I think both have attractive long-term upside.

Life360 is building a large consumer platform around family safety and connection, with subscriptions and advertising both contributing to growth. Zip is showing that a digital payments business can grow while becoming more profitable, with the US market offering a large runway.

Both companies still need to execute well. But based on their recent momentum, I think Life360 and Zip shares are strong buys today.

The post Why I think Life360 and Zip shares are strong buys 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 positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s been a spectacular year for investors in Australia’s biggest ASX lithium stocks.

Over the past 12 months, shares in Mineral Resources Ltd (ASX: MIN) have surged around 213%, while PLS Group Ltd (ASX: PLS) has done even better, rocketing approximately 301%.

The rally has been driven by a powerful recovery in the lithium sector after several difficult years.

Momentum has cooled in recent weeks, however. Both stocks have retreated over the past month as lithium prices eased.

That’s hardly surprising. Lithium carbonate prices climbed roughly 155% over the past year, providing a major tailwind for producers. But after falling around 14% over the past month, investors are once again questioning how much upside remains.

Even so, anyone who invested $5,000 in either stock a year ago would still be sitting on an eye-catching gain.

Here’s what that investment would be worth today.

$5,000 invested in Mineral Resources

A $5,000 investment in Mineral Resources 12 months ago would now be worth approximately $15,650.

While the company has benefited from the rebound in lithium, it’s not a pure-play producer.

Unlike many ASX lithium stocks, Mineral Resources also has sizeable mining services and iron ore operations, giving investors broader commodity exposure.

That diversification has proven to be valuable. The company recently delivered its strongest half-year result on record, reporting revenue of $3.1 billion and EBITDA of $1.2 billion.

A standout contributor was the rapidly expanding Onslow Iron project, which has emerged as a major earnings driver alongside improving lithium market conditions. The growing iron ore business helps reduce Mineral Resources’ dependence on lithium alone, making earnings less sensitive to swings in a single commodity.

That doesn’t eliminate risk, however. Both iron ore and lithium prices remain important profit drivers, and weakness in either market could weigh on earnings and investor sentiment.

$5,000 invested in PLS Group

The returns have been even more remarkable for PLS Group shareholders.

A $5,000 investment made 12 months ago would now be worth approximately $20,050, effectively quadrupling an investor’s original capital.

Unlike some of its peers, PLS’ rally hasn’t been driven solely by rising lithium prices. The $18 billion mining giant has also delivered impressive operational growth.

In its latest half-year result, the ASX lithium stock reported revenue of $624 million, up 47% from the previous corresponding period as both realised lithium prices and sales volumes increased.

Underlying EBITDA surged 241% to $253 million, while EBITDA margins expanded dramatically to 41%, compared with just 17% a year earlier.

Its flagship Pilgangoora operation remains one of the world’s largest hard-rock lithium mines, providing significant scale and cost advantages as global demand for battery materials continues to grow.

Like every lithium producer, though, PLS remains exposed to commodity prices. If lithium continues to weaken, profitability could come under pressure despite strong production growth.

Foolish takeaway

The recent pullback is a timely reminder that ASX lithium stocks remain highly leveraged to commodity prices. That said, the underlying businesses continue to strengthen. Production is rising, earnings have rebounded sharply, and major growth projects are progressing.

If lithium prices stabilise – or resume their upward trend – both Mineral Resources and PLS Group could find fresh momentum.

The post $5,000 invested in these ASX lithium stocks a year ago is now worth… 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.