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.

More reading

• Why this analyst rates Life360 shares a buy right now
• Why I’d buy CSL and Zip shares before they recover
• 5 ASX growth shares I want in my portfolio in FY27
• 3 reasons to buy the dip on Life360 shares today
• If I’d invested $7,000 in Zip shares 3 months ago, guess what I’d have now!

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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• Up 218% in a year, Mineral Resources shares sinking today amid mine closure news
• Forget PLS shares, this US-focused ASX lithium share could rise 100%+
• These ASX mining stocks soared 185%+, then tumbled. What now?
• PLS shares drop 5%: What’s driving the move?

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.

National Australia Bank Ltd (ASX: NAB) shares have pulled back from their highs, and I think the lower price has made the bank a more attractive investment.

The NAB share price is currently around $37.51. At that level, I think investors are getting a reasonable valuation, a good dividend yield, and exposure to one of Australia’s strongest banking franchises.

Here are three reasons I would buy NAB shares now.

The valuation looks reasonable

The first reason is valuation. According to CommSec, consensus estimates suggest NAB could generate earnings per share of $2.43 in FY26 and $2.53 in FY27.

Based on the current share price, that puts the bank on a price-to-earnings ratio of around 15.4 times FY26 earnings and 14.8 times FY27 earnings.

I would not call that incredibly cheap, but it does look like reasonable value for one of Australia’s major banks.

Bank shares have faced pressure as investors weigh higher interest rates, housing market uncertainty, credit quality, and competition. Those risks are worth taking seriously. But NAB remains a large, profitable business with a major role in Australian banking.

At this price, I think the valuation is much easier to justify than it was when the share price was closer to its highs.

The dividend yield is attractive

The second reason is income. CommSec consensus estimates point to dividends per share of $1.70 in FY26 and $1.72 in FY27.

At the current share price, that implies forward dividend yields of roughly 4.5% and 4.6%.

That is a solid starting yield, in my view, particularly for investors looking for passive income from ASX shares.

A $10,000 investment at around $37.51 per share would buy about 267 shares. Based on the forecast FY26 dividend of $1.70 per share, that investment could generate roughly $453 in annual dividends. Based on the FY27 forecast dividend of $1.72 per share, the income would be around $459.

That is before tax and any franking credits.

Dividends are never guaranteed, and banks can adjust payouts if conditions change. But I think NAB’s forecast income looks attractive, especially when combined with the possibility of capital growth over time.

The business banking exposure is useful

The third reason is NAB’s position in business banking.

Australia’s major banks all have large mortgage books, but NAB has long had a strong reputation in business banking. I think that gives it a key point of difference.

Businesses need loans, deposits, transaction accounts, payment services, working capital support, and relationships with bankers who understand their operations. That creates a large pool of customers that can be valuable over many years.

This does not make NAB immune from an economic slowdown. If business confidence weakens or bad debts rise, earnings could come under pressure.

But over the long term, I like banks that are deeply connected to the real economy. NAB has scale, brand strength, customer relationships, and a large deposit base. Those qualities can help it keep generating profits and supporting dividends through different parts of the cycle.

Foolish takeaway

I think NAB shares look attractive at current levels.

The valuation appears reasonable on consensus earnings forecasts, the forward dividend yield is in the mid-4% range, and the bank has a strong position in Australian business banking.

There are still risks from the economy, competition, bad debts, and regulation. But at around $37.51, I think the balance of income, value, and long-term business quality makes NAB shares worth buying now.

The post 3 reasons to buy NAB shares now appeared first on The Motley Fool Australia.

More reading

• Should I buy NAB shares for passive income?
• Here are the top 10 ASX 200 shares today
• Here’s the dividend forecast out to 2027 for NAB shares
• Is the NAB share price good value after crashing 24%?
• Invested in ASX 200 bank shares for dividends? This fundie prefers other stocks

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.