The S&P/ASX 200 Index (ASX: XJO) has been seesawing for most of Wednesday.

After climbing as high as 8,791 points earlier in the session, the benchmark gave up its gains and slipped into negative territory.

But the selling didn’t last, with the ASX 200 recovering to 8,769 points in late afternoon trade, putting it 0.13% higher for the day.

That’s a recovery of around 26 points from today’s low of 8,742, with mining shares helping offset weakness across several other sectors.

The index is now up approximately 1.1% over the past week, although it remains 3.2% lower over the past month.

So, is a recovery finally getting underway?

A mixed finish on Wall Street

Investors didn’t get much direction from Wall Street overnight, with the major US indices finishing Tuesday’s session mixed.

The Dow Jones Industrial Average Index (DJX: .DJI) slipped 0.36%, while the S&P 500 Index (SP: .INX) finished basically flat.

Meanwhile, the Nasdaq Composite Index (NASDAQ: .IXIC) gained 0.45%, reaching another record close as tech shares continued to attract buyers.

US banking shares struggled, with the financial sector falling almost 2% and weighing on the wider market.

Oil prices also moved lower, with Brent crude falling below US$100 a barrel amid hopes of improved supply from the Middle East.

Miners are keeping the ASX 200 afloat

Mining shares are providing much of the support today, with several major resource companies trading higher.

BHP Group Ltd (ASX: BHP) has climbed 1.54% to $62.16, while Rio Tinto Ltd (ASX: RIO) is up 0.95% to $167.88.

BHP is also paying its final dividend of US$0.99 per share today, following its ex-dividend date on 3 September.

The buying has extended to gold miners, with several of the larger producers also moving higher.

Northern Star Resources Ltd (ASX: NST) has gained 4.17% to $22.85, and Evolution Mining Ltd (ASX: EVN) is trading 2.89% higher at $14.05.

Banks and energy shares head lower

The major banks are heading in the opposite direction, with Commonwealth Bank of Australia (ASX: CBA) slipping 0.81% to $151.09.

ANZ Group Holdings Ltd (ASX: ANZ) has fallen 1.21% to $37.69, while Westpac Banking Corp (ASX: WBC) is down 0.97% to $34.57.

Energy shares are also struggling following the overnight decline in oil prices, with Woodside Energy Group Ltd (ASX: WDS) falling 2.07% to $31.02.

Elsewhere, Insurance Australia Group Ltd (ASX: IAG) has dropped 2.11% to $7.90 after the ACCC blocked its proposed $1.35 billion acquisition of RAC Insurance.

The ACCC said the proposed acquisition would substantially lessen competition in Western Australia’s motor vehicle and home insurance markets.

Is a recovery on the table?

The ASX 200 has now recovered more than 100 points from its 15 September low of 8,657 points.

However, the benchmark remains well below its August high of 9,220 points, which means there’s still considerable ground to make up.

Investors are also looking ahead to the Reserve Bank’s next interest rate decision on 29 September.

The cash rate currently stands at 4.35%, with Governor Michele Bullock warning that upside risks to inflation may be materialising.

The post ASX 200 turns higher after a rocky start. Is a recovery on the table? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 recommended BHP Group. 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 difficult September for PLS Group Ltd (ASX: PLS) shareholders, despite the lithium miner’s impressive gains over the past year.

The stock has climbed around 85% over the past 12 months, but has fallen more than 22% since closing at $5.48 on 1 September.

Today is offering some relief, though, with the PLS share price rising 2.79% to $4.245 in mid-afternoon trade.

However, despite the company’s improving financial performance, short sellers are still betting heavily against the stock.

In fact, PLS remains one of the most heavily shorted stocks on the ASX.

So, why are traders betting against the lithium miner?

The bears are still circling

According to the latest short-selling data, PLS is currently the 9th most shorted stock on the ASX.

As of 16 September, approximately 11.07% of its shares were held in short positions, representing more than 357 million shares.

That’s a substantial amount of money betting on the lithium miner’s share price falling further.

For those unfamiliar, short sellers borrow shares and sell them, hoping to buy them back at a lower price and pocket the difference.

With lithium prices still volatile, another pullback could take a decent chunk out of PLS’ earnings.

That’s something to watch as the company prepares to lift production again in FY27.

October could be a big test

PLS announced today that its September quarterly activities report will be released on 27 October.

The update will show how the miner is tracking against its FY27 production targets.

The company is forecasting production of between 1.03 million and 1.10 million tonnes this financial year, up from 879,500 tonnes in FY26.

Much of that increase will come from the restart of its Ngungaju processing plant, which began ramping up in July.

PLS is also expecting operating costs of between $575 and $625 per tonne, alongside capital expenditure of $620 million to $685 million.

Personally, I’ll be watching production, realised lithium prices, and cash generation closely.

The short interest is already above 11%, and a solid quarterly result could put some pressure on those betting against the stock.

Could short sellers get caught out?

While short sellers are betting on further weakness, analysts are pointing to a considerably higher share price.

According to TipRanks, the average 12-month price target from 12 analysts is $5.55, implying about 31% upside from today’s price.

7 analysts have buy ratings, 3 recommend holding, and 2 have sell ratings.

With so many shares currently shorted, I think the next few weeks could be very interesting.

The post PLS shares have surged 85% in a year. So why are short sellers circling? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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.

Anyone who bought ANZ Group Holdings Ltd (ASX: ANZ) shares near their 52-week low of $32.46 would be sitting on a pretty decent gain today.

The banking giant has recovered more than 16% from that level, with its shares gaining around 13.5% over the past year and almost 7% since January.

Wednesday hasn’t been quite as positive, with the ANZ share price slipping 1.05% to $37.75 in midday trade.

That leaves the stock around 8% below its 52-week high of $41.

While ANZ has made progress with its turnaround, I think much of that improvement is already reflected in the share price.

Here’s why.

ANZ’s turnaround is gaining traction

ANZ’s latest quarterly results show some encouraging signs, although earnings growth remains fairly modest.

In its August trading update, ANZ reported cash profit of $1.90 billion, up just 1% compared with the quarterly average from the first half.

However, excluding a provision relating to a New Zealand class action, cash profit increased 5% to $1.98 billion.

Business and Private Banking lending grew 4%, while net interest income from its core banking operations increased 2%.

Operating expenses also fell 3% after excluding the legal provision, with management continuing to target a 5% reduction in annual costs.

Meanwhile, ANZ is progressing with its integration of Suncorp Bank, with customer migration scheduled for completion by June 2027.

The bank expects the integration to deliver approximately $500 million in annual pre-tax cost savings by FY29.

Is ANZ getting too expensive?

At $37.75, ANZ is trading on a price-to-earnings (P/E) ratio of around 19.3, with a trailing dividend yield of approximately 4.4%.

The dividend is appealing, but I’m not convinced the current valuation leaves much room for further upside.

TipRanks has an average 12-month price target of approximately $35.40 across 8 analysts, implying around 6% downside from today’s price.

The ratings are fairly mixed, with 3 buys, 4 holds, and 1 sell.

Citi is among the more optimistic brokers, with a $39.25 price target, while Macquarie has a $33.50 target.

Personally, I think ANZ needs to show more meaningful earnings growth before I’d be comfortable paying close to 20 times earnings.

Would I buy ANZ shares today?

Not at $37.75 apiece.

I’d be more interested if the share price pulled back towards $35, particularly if the bank continues delivering on its turnaround plans.

The next opportunity to assess that progress comes in November, when ANZ is scheduled to release its FY26 results.

The post ANZ shares have climbed 13% in a year. Is there still room to run? appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Aaron Teboneras 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 Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.