Sunrise Energy Metals Ltd (ASX: SRL) just delivered one of the wildest sessions on the ASX this year. The $3 billion S&P/ASX 200 Index (ASX: XJO) stock rocketed 13% on Tuesday to $20.48, capping a 165% gain year to date and a staggering 354% surge over 12 months.

For context, the ASX 200 Index itself is actually sitting 0.2% lower than it was a year ago. So while the broader market has gone nowhere, this ASX 200 stock has gone stratospheric. Can it possibly keep this pace up?

What does Sunrise Energy actually do?

Sunrise Energy develops large-scale mining and mineral processing projects built around ion-exchange technology. This is a process used to extract valuable metals for the mining industry and to purify and recycle wastewater.

The real prize is the company’s flagship Syerston Project in central-west NSW, home to one of the world’s largest and highest-grade primary scandium and nickel-cobalt deposits.

Scandium is a critical mineral with genuine supply scarcity. Global demand is climbing fast, but there are barely any credible producers anywhere in the world. That scarcity is precisely why the market has gone berserk over this ASX 200 stock.

The August catalyst that changed everything

In August, Sunrise secured a conditional commitment for up to US$400 million (A$570 million) in 25-year debt financing for the Syerston Scandium Project. That’s not pocket change for a company this size.

Proposed US government funding could substantially cut development and financing risk. Sunrise has also flagged plans to pursue a US stock listing to tap global capital markets, subject to shareholder and regulatory sign-off.

The project’s capital estimate has been revised upward to A$450–475 million (US$315–333 million), reflecting an expanded scope and updated costs. However, a bigger project generally means a bigger payoff too.

The initial build targets 60 tonnes per annum of high-purity scandium oxide across an estimated 32-year mine life. Sunrise has also expanded its plans to include downstream refining capacity in the US, with future scope potentially tripling output down the track.

Early works and procurement are already underway, with first production targeted for late 2028.

A gravity check

Here’s where investors need to keep their feet on the ground. The ASX 200 stock peaked at $22.40 on 11 September and have cooled slightly since then. It’s likely just profit-taking after such an explosive run, rather than any change in the underlying story.

The bigger issue is coverage. Only one broker currently tracks Sunrise Energy, according to TradingView data. That single broker rates it a strong buy with a $20 price target, just below where the stock trades today.

Foolish takeaway

A 354% run in 12 months is the kind of move that demands scepticism, not blind faith. Sunrise has genuine scarcity value in scandium and a real funding pathway taking shape.

But with only one analyst willing to put a number on it, this remains a high-conviction, high-risk bet. Not a sure thing.

The post Best performing ASX 200 stock is up 350%. Can it keep rising? 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.

Broking house Morgans has released a report on the emerging companies on the ASX, noting that volatile share market conditions have hit the sector hard.

That said, they have identified a number of companies they believe could outperform over the next 12 months.

I’ve focused in on three in particular which Morgans believes will rerate substantially.

Let’s see who they like.

Megaport Ltd (ASX: MP1)

Megaport acquired the Latitude compute-as-a-service company during FY26 adding its services into Megaport’s high-speed network.

Morgans said the acquisition had “materially changed” Megaport’s business, winning a large number of contracts in the second half of the financial year, “and in our view more to come”.

The broker said it expects earnings to increase rapidly:

FY27 will be a year of delivering and reinvesting a larger than usual share of incremental earnings back into the business, but we estimate $624m EBITDA in FY28 with the full run-rate of strategic contract wins (announced to date) and GPU pool still ramping. This further lifts to $770m in FY29, once the GPU pool has stabilised, a 10x increase from the $77m EBITDA in FY26.

Morgans said reinvestment into Megaport’s sales team should help accelerate revenue growth in FY27, while building out an ecosystem of services should also help.

The broker said they “remain positive on the structural thematics and AI and cloud momentum.

Morgans has a price target of $26.40 on Megaport shares.

Nextdc Ltd (ASX: NXT)

The broker said FY26 was a significant year for Nextdc, with contracted megawatts up 3.5x.

Morgans predicts EBITDA to increase from $250 million in FY26 to more than $1.1 billion by FY30, “but [Morgans] also [flags] scope for further acceleration to NXT’s current expected deployment profile”.

The broker said Nextdc was trading at earnings ratios “materially cheaper” than its peers.

Morgans has a price target of $23.45 on Nextdc shares.

Superloop Ltd (ASX: SLC)

Morgans says Superloop is gaining market share in the broadband market, with strong momentum in late FY26 understood to have continued into the current financial year.

They added:

On that basis, our analysis suggests SLC could be adding close to 9% of new NBN orders to their customer base vs its ~5% market share. We think this is in an environment where churn is elevated due to price hikes being implemented in July and we consider SLC to have emerged as a net-beneficiary of this trend.

Morgans has a price target of $4.15 on Superloop shares.

The post Morgans tips 3 ASX 200 companies to rise between 35% and 106% appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has positions in Megaport and Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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.

Looking for solid income doesn’t mean settling for a measly term deposit. Plenty of ASX dividend shares hiding in plain sight are quietly throwing off serious cash yields. And once you factor in franking credits, these shares could start looking hard to ignore.

Here are three ASX dividend shares worth putting on the watchlist right now.

Fortescue Ltd (ASX: FMG)

Fortescue built its name on iron ore, not income. But make no mistake, this ASX dividend share can pack a serious punch.

The mining giant paid out $1.08 per share over the past year. With Fortescue shares trading around $16.72, that’s a cash yield of roughly 6.5%. Not bad on its own.

Here’s the kicker: those dividends are fully franked. Gross that up, and the yield jumps to about 9.2% — the kind of number that makes bank hybrids look boring.

But don’t get too comfortable. Fortescue’s profits swing hard with iron ore prices, and so does its ability to keep writing dividend cheques this size. This ASX dividend share is a high-octane bet, not a set-and-forget income play.

Bendigo and Adelaide Bank Ltd (ASX: BEN)

Want banking sector income without piling into one of the Big Four? This ASX dividend share deserves a look.

Bendigo and Adelaide Bank’s recent payout of 63 cents translates into a cash yield of around 6% at current prices. Add in franking credits, and the grossed-up yield pushes above 8%.

It’s not a risk-free ride, of course. Interest rates, bad debts, competition and capital requirements can all squeeze bank earnings and dividends when the cycle turns. Still, for investors hunting franked income outside the usual Big Four suspects, this ASX dividend share earns its spot on the radar.

AGL Energy Ltd (ASX: AGL)

AGL has spent years reinventing itself, but its dividend is still the reason plenty of income investors keep watching.

The energy giant’s FY2026 payout totalled 50 cents per share, including a fully franked 26-cent final dividend. At around $8.45 per share, that’s a cash yield of roughly 5.9%. Gross it up for franking credits, and the yield climbs to approximately 8.5%. And we have another entry on the list of ASX dividend shares punching well above the headline number.

Management is targeting a 55%-60% payout ratio for FY2027, with dividends expected to stay fully franked, that’s always subject to performance and board discretion.

Foolish takeaway

These three ASX dividend shares prove why income investors shouldn’t stop at the headline cash yield. Franking credits can transform an average payout into a genuinely compelling one for Australian shareholders.

But a big number is only half the story. Fortescue’s dividend rides on iron ore prices, Bendigo Bank’s rides on the banking cycle, and AGL’s rides on a rapidly shifting energy market.

The real prize isn’t just finding ASX dividend shares with fat yields today — it’s finding the ones that can actually keep the cash flowing tomorrow.

The post 3 ASX dividend shares offering gross yields of 8% or more 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 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.