BHP Group Ltd (ASX: BHP) shares finished last week on a strong note, climbing 2.5% on Friday to close at $58.28.

The ASX mining giant has eased around 4% over the past month, but the bigger picture remains impressive. BHP shares have surged 28% year to date and are up 54% over the past 12 months.

So, after such a powerful rally, should investors still be buying BHP shares in FY27?

What’s driving BHP higher?

BHP shares have ridden a powerful wave of investor enthusiasm for the mining sector, but it hasn’t just been lucky. The company has benefited from an 18% jump in copper prices and a 7% rise in iron ore prices, giving earnings a meaningful boost.

And while BHP remains one of the world’s biggest iron ore miners, it’s increasingly becoming a copper powerhouse. Copper has become the star of the show as demand continues to grow thanks to electric vehicles, renewable energy infrastructure, and expanding electricity networks.

The metal reached a record high of US$6.60 per pound in May, highlighting just how tight the market has become. That shift matters. During the first half of FY26, copper contributed more than half of BHP’s underlying EBITDA, underlining the company’s growing exposure to one of the world’s most sought-after commodities.

Strong operations, cost blowout

Operationally, the news has also been encouraging. In its third-quarter FY26 update, BHP said strong production from its flagship Escondida mine in Chile and Antamina mine in Peru meant full-year group production was expected to finish at the upper end of guidance.

Earlier this year, BHP secured a US$4.3 billion upfront payment through a long-term silver streaming agreement with Wheaton Precious Metals. The deal strengthened the balance sheet while allowing BHP to unlock value from future silver production at Antamina.

Not everything has gone according to plan for BHP shares, however.

On the downside, the company’s Jansen Stage 2 potash project in Canada suffered a sizeable cost blowout. Management of BHP shares now expects the project to cost US$6.9 billion, up from an earlier estimate of US$4.9 billion.

What do the experts think?

Broker sentiment is mixed on BHP shares, although few analysts appear outright bearish.

Morgan Stanley remains one of the most optimistic, retaining its overweight rating and $67.50 price target. That points to a potential 16% upside.

The broker believes recent weakness reflects little more than profit-taking after a strong rally and sees the pullback as a buying opportunity, particularly given its positive outlook for copper.

However, hold remains the dominant rating across the market.

Morgans recently reiterated its hold recommendation while increasing its 12-month target to $59.80.

Meanwhile, Bank of America Corp (NYSE: BAC) maintained its hold rating but lowered its target to $65. CitiGroup Inc (NYSE: C) and Jefferies also kept hold recommendations while trimming their respective price targets to $63 and $65.

Foolish takeaway

BHP enters FY27 in a strong position, supported by rising copper exposure, healthy operations, and a robust balance sheet.

While the easy gains may already be behind investors after the stock’s exceptional run, brokers generally expect BHP to remain well placed if copper prices stay elevated.

For long-term investors seeking exposure to high-quality mining assets, BHP shares continue to make a compelling case.

The post Should you buy BHP shares FY27? Here’s what experts are saying appeared first on The Motley Fool Australia.

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Bank of America is an advertising partner of Motley Fool Money. 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.

S&P/ASX 200 Index (ASX: XJO) shares rose 2.77% and produced total returns, including dividends, of 7% in FY26.    

Here, John Athanasiou from Red Leaf Securities shares his insights on three ASX 200 shares (courtesy The Bull). 

Are they a buy, hold, or sell in the new financial year? 

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price dropped 28% in FY26 to close out the year at $29.47.

ASX 200 tech shares were smashed between late August through to 30 March this year.

Since then, tech shares have recovered almost 20% while TechnologyOne stock has lifted 16%.

Athanasiou has a buy rating on TechnologyOne shares, commenting:

This technology company holds an embedded position in enterprise resource planning software across government, education and the corporate sector.

The business benefits from long duration contracts, expensive switching costs and a highly recurring revenue base underpinning strong earnings visibility.

The company has consistently delivered double-digit earnings growth, while maintaining disciplined cost control.

While the valuation remains elevated, it’s broadly supported by earnings visibility and structural digitisation tailwinds.

In a market favouring predictable cashflows and defensiveness, TechnologyOne remains a core long duration compounder.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price tumbled 29% in FY26 amid a broader healthcare sector rout. 

However, the ASX 200 healthcare share has been recovering ahead of its peers since hitting a 52-week low of $107.75 in February.

Pro Medicus shares are up 82% since that trough. The broader sector did not turn until 3 June but is rapidly rising.

Athanasiou explained his hold rating on Pro Medicus shares:

Pro Medicus remains a premium healthcare technology compounder with a dominant position in US medical imaging software.

The company exhibits strong operating leverage, minimal churn and structurally high returns on capital.

However, valuation is the binding constraint.

The market already embeds sustained high growth over an extended horizon, reducing the margin of safety.

PME remains a high quality hold, with upside dependent on continuing US market expansion and incremental large scale contract wins.

PLS Group Ltd (ASX: PLS)

The PLS Group share price soared 275% to close out FY26 at $5.02. 

PLS Group has reaped the rewards of strongly rebounding lithium prices over the past 12 months.  

Athanasiou has a sell rating on the ASX 200 lithium share, explaining:

PLS is a leading Australian lithium producer. Lithium remains structurally linked to electrification, but near term fundamentals are challenged by expanding supplies.

While PLS asset quality remains strong, earnings are highly leveraged to spot prices, generating volatility through the cycle.

Balance sheet strength provides a buffer, but doesn’t offset cyclical earnings pressure.

PLS remains a high risk recovery trade dependent on the timing of lithium re-balancing, with limited near term visibility.

The post Buy, hold, sell: TechnologyOne, Pro Medicus, PLS Group shares appeared first on The Motley Fool Australia.

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• 9 ASX 200 shares with reiterated buy calls this week
• Why I’d buy and hold ResMed and TechnologyOne shares with $5,000
• Top 5 ASX 200 lithium shares of FY26

Motley Fool contributor Bronwyn Allen 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 Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation is not just a savings vehicle.

For investors who understand how to use it, it is one of the most tax-effective passive income generators available in the Australian financial system.

Earnings inside super during the accumulation phase are taxed at just 15%, compared to marginal rates outside super that can exceed 45%.

In retirement, those earnings become completely tax-free.

That tax advantage, compounded over decades, is what turns ordinary dividend income into extraordinary retirement wealth.

Start with what you actually own inside superannuation

Most Australians sit in a default balanced or growth fund option and have no clear picture of what they actually own.

The first step toward generating passive income from super is understanding your current investment mix and whether it is oriented toward income-producing assets.

Furthermore, the concessional contributions cap just rose to $32,500 from 1 July 2026. This has given investors more room to build a passive income portfolio inside this tax-advantaged structure.

Every additional dollar contributed at the 15% concessional rate rather than at a higher marginal rate is a dollar compounding more effectively toward retirement income.

Here are three ASX stocks known for their ability to generate passive income.

Commonwealth Bank of Australia: the fully franked income anchor

Commonwealth Bank of Australia (ASX: CBA) is the most widely held stock inside Australian superannuation funds for a straightforward reason.

CBA pays a fully franked dividend, expected at approximately $5.15 per share in FY26.

For a super fund in accumulation phase taxed at 15%, the 30% franking credit attached to CBA’s dividend generates an additional net refund. This effectively lifts the after-tax yield above the headline figure.

At the current share price of approximately $169, CBA’s fully franked dividend implies a grossed-up yield of approximately 4.4%.

Inside super, that turns into one of the most tax-effective income stream available from any large-cap ASX stock.

What’s more, CBA has grown its dividend every year since 2021, giving investors a passive income stream that grows consistently each year.

Betashares Australia 200 ETF: instant diversification at the lowest possible cost

For investors who want broad exposure to Australia’s dividend economy without picking individual stocks, the Betashares Australia 200 ETF (ASX: A200) is the most cost-efficient option available.

A200 charges a management fee of just 0.04% per annum. This is the lowest among Australian share ETFs. Furthermore, the ETF pays quarterly distributions with 85.14% franking.

That quarterly income, combined with partial franking credits, gives super fund investors regular cash flow that compounds more frequently than the twice-yearly dividends paid by most individual ASX stocks.

The underlying index has returned approximately 8.53% per annum including dividends since inception.

For investors starting out with passive income investing inside super, A200 is the simplest and most effective starting point available.

BHP: commodity income with a structural growth tailwind

BHP Group Ltd (ASX: BHP) adds a third dimension: commodity income with a strong structural growth story behind it.

The company pays fully franked dividends twice per year. Specifically, BHP pays a trailing twelve-month dividend of approximately $1.96 per share, implying a yield of approximately 3.36% at the current share price of $58.28.

For the first time in BHP’s 136-year history, copper earnings exceeded iron ore contributions in the first half of FY26. This was driven by AI data centre construction, electric vehicle adoption, and grid infrastructure investment.

This structural tailwind supports the earnings that fund BHP’s dividend, giving superannuation fund income investors a defensible long-term outlook.

Foolish takeaway

Passive income from superannuation is the natural result of investing in quality, income-producing assets inside a structure that taxes earnings at 15% rather than your marginal rate.

CBA provides the fully franked income anchor. A200 provides the low-cost diversification with quarterly distributions. BHP provides the commodity income growth tailwind.

Together, they form the foundation of a portfolio that compounds into meaningful passive income over a superannuation career.

The post Do you want to earn passive income from your superannuation? Here’s a guide to get you started appeared first on The Motley Fool Australia.

More reading

• Should you buy BHP shares FY27? Here’s what experts are saying
• Top brokers name 3 ASX shares to buy next week
• If I invest $10,000 in CBA shares, how much passive income will I receive in 2027?
• VAS vs. VHY: Which is the better ASX ETF for retirement?
• How much do I need in my superannuation to get $50k per year in passive income?

Motley Fool contributor Mark Verhoeven 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.