ASX 200 utilities shares led the market sectors with a 3.64% gain last week.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) rose 0.4% to close at 8,716.6 points.

Defensive market sectors represent industries that sell essential goods and services.

They offer stability to investors during tough economic times because consumers continue to buy those goods and services.

Utilities is one example, healthcare and consumer staples are others.

ASX 200 healthcare shares also performed well last week, rising 3.53%.

Consumer staples shares, which incorporate Australia’s supermarkets and food producers, rose 2.31%.

ASX 200 REITs, which are considered somewhat defensive due to their relatively reliable property income, rose 3.58%.

Seven of the 11 market sectors finished the week in the green.

Let’s review.

Utilities shares led the ASX sectors last week

There are only 21 companies in the ASX 200 utilities sector.

Let’s review the performance of individual stocks in order of market capitalisation last week.

The Origin Energy Ltd (ASX: ORG) share price increased 4.31% to $11.37 last week.

The APA Group (ASX: APA) share price rose 2.81% to close at $10.97 on Friday.

Mercury NZ Ltd (ASX: MCY) shares lifted 0.72% to $5.60 per share.

The Meridian Energy Ltd (ASX: MEZ) share price fell 1.14% to $4.34 over the week.

The AGL Energy Limited (ASX: AGL) share price ascended 3.44% to close the week at $8.43.

New Zealand electricity supplier Contact Energy Ltd (ASX: CEN) rose 1.91% to $6.93 per share.

Genesis Energy Ltd (ASX: GNE) shares fell 3.45% to $1.96 per share.

The LGI Ltd (ASX: LGI) share price ripped 23.16% to $2.34 on news of a $22 million acquisition of solar power assets.

Frontier Energy Ltd (ASX: FHE) shares tumbled 13.04% to 20 cents despite no company announcements last week.

The Rivco Australia Ltd (ASX: RIV) share price increased 0.83% to $1.21 per share.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Utilities (ASX: XUJ)	3.64%
A-REIT (ASX: XPJ)	3.58%
Healthcare (ASX: XHJ)	3.53%
Consumer Discretionary (ASX: XDJ)	2.4%
Consumer Staples (ASX: XSJ)	2.31%
Energy (ASX: XEJ)	2%
Industrials (ASX: XNJ)	0.02%
Communication (ASX: XTJ)	(0.19%)
Financials (ASX: XFJ)	(0.31%)
Materials (ASX: XMJ)	(1%)
Information Technology (ASX: XIJ)	(1.97%)

Check out the 17 ASX shares going ex-dividend next week.

The post ASX 200 defensive sectors outperform amid volatile trading appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool Australia has recommended LGI Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

PLS vs Zip shares: Which could be a future multibagger?

When hunting for the next 10-bagger on the ASX, investors often find themselves weighing up established resource plays like PLS Group Ltd (ASX: PLS) and high-growth tech disruptors such as Zip Co Ltd (ASX: ZIP). Both companies have made a splash in their sectors: PLS Group powering Australia’s lithium ambitions, Zip shaking up the way we shop and pay. But which has the better shot at exponential returns? Here’s my breakdown of PLS Group vs Zip shares.

The case for PLS Group

PLS Group, formerly Pilbara Minerals, is a leader in Australia’s booming lithium sector. Its main asset, the Pilgangoora Lithium-Tantalum Project in WA, is one of the world’s biggest hard-rock lithium deposits. The company’s recent move into Brazil with the Colina lithium project expands its international footprint and resource base.

Turning to the key numbers:

• Market cap stands at $12.52 billion, making PLS a heavyweight in the critical minerals space.
• P/E ratio is 23.61, putting it in the “growth at a reasonable price” zone – at least vs. some resource names.
• Dividend yield, though modest at 1.31%, is fully franked – a rarity amongst lithium producers. This means shareholders may enjoy tax benefits on dividends.

Notably, the company posted an earnings per share (EPS) of $0.161 and returned $0.05 per share in dividends over the past year. However, the share price has slid 8.5% year to date, reflecting the volatility often seen in battery minerals.

The case for Zip

Zip is an ambitious fintech, best known for its digital “buy now, pay later” (BNPL) platform that operates across 12 countries. Zip aims to replace old-fashioned credit card debt with flexible, interest-free alternatives. Its two main products, Zip Pay and Zip Money, help customers spread out payments, making it popular among younger consumers and those wary of traditional credit.

Looking at the fundamentals:

• Market cap sits at $2.64 billion – about one fifth the size of PLS Group, but still a major player among local fintechs.
• P/E ratio is 22.85, almost matching PLS Group’s, showing a growth tilt even after a major short-term price pullback.
• Zip has not paid any dividend, choosing instead to reinvest back into international expansion and product development.

EPS for the last period was $0.091. What stands out sharply is its year to date return: down 37.1%, reflecting huge volatility and the ongoing challenges facing the BNPL sector.

Valuation comparison

Here’s how the two companies stack up on core metrics:

Metric	PLS Group	Zip
Market Cap	$12.52 billion	$2.64 billion
P/E Ratio	23.61	22.85
Dividend Yield	1.31% (100% franked)	0.00%
EPS	$0.161	$0.091
YTD Return	-8.53%	-37.08%

Note: Both companies’ P/E ratios are closely matched, but given they sit in very different sectors (resources vs. fintech), direct read-across can be misleading. Also, the EPS and P/E for each seems internally consistent, no red flags on calculation.

PLS Group stands out for actually paying a dividend and offering full franking. Zip, like most growth fintechs, is holding back on payouts to fund further expansion.

Recent share price momentum

Comparins recent share price performance up to 7 October:

• PLS Group closed at $3.88, up 1.8% on the day, but the 2026 year-to-date result is still a decline of 8.5%.
• Zip closed at $2.12, up 2.4% for the session, though still a brutal 37.1% loss year to date.

These readings show both are well off their 52-week highs. PLS Group’s pullback looks mild compared to Zip’s sharp slide, but both have seen some recent short-term positivity.

Which is the better buy?

If I’m searching for a potential ASX 10-bagger, I want explosive upside – but also a business that can deliver sustainable growth, not just hype. Zip, with its bruising share price and no dividend, certainly offers high risk and (in theory) high reward if it can crack profitability at scale and beat competitors. It’s a genuine disruptor but up against tough headwinds and rapidly shifting regulatory sands.

PLS Group, on the other hand, is already profitable, spinning off modest fully franked dividends, and positioned right in the thick of the global energy transition. The lithium market is volatile, but the underlying demand should keep growing as EV adoption increases. PLS Group isn’t without risk – lithium prices can swing wildly, and it is much harder for a $12 billion company to multiply tenfold than it is for a $2 billion upstart.

All things considered, if I had to back a future 10-bagger from these two, I’d lean — albeit cautiously — toward Zip. Its beaten-down share price and scalable business model give it more sheer mathematical upside, despite the clear risks. But this is not a low-risk play: only for those comfortable with volatility and the possibility of further steep losses. PLS Group feels more of a “steady compounder” right now – less likely to lose your shirt, but also less likely to shoot the lights out.

The post PLS Group vs Zip: Which ASX share could be a 10-bagger? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: BHP, Westpac, and Zip shares
• 6 ASX shares to buy in today’s weak market: experts
• Brokers tip these 3 ASX shares to jump 72% to 162%
• Zip vs Block: Which ASX payments share is better?
• Fortescue vs PLS Group: Which ASX mining share is the better buy?

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Not every well-known ASX share looks equally attractive to me right now.

Some have a clear path to stronger earnings over the coming years, while others face a more challenging environment.

With that in mind, here is how I would rate three popular ASX shares today.

BHP Group Ltd (ASX: BHP)

BHP is a buy for me, largely because of how I expect its business to develop over the next decade.

The mining giant already has an enormous copper business, and I think that commodity could become an increasingly important source of earnings.

Demand for copper is expected to grow as countries invest in electricity networks, renewable energy, electric vehicles, and the infrastructure needed to support artificial intelligence (AI).

BHP is positioning itself for that demand through its existing operations and a pipeline of projects across several countries.

I also like that its iron ore business provides substantial cash flow to help fund those ambitions.

Iron ore prices will inevitably fluctuate, particularly given China’s importance to the global steel market. But BHP’s scale and low-cost operations put it in a strong position to navigate those cycles.

The development of its Jansen potash project in Canada should also provide another earnings stream as production ramps up.

For me, BHP offers an attractive combination of established operations, long-term growth opportunities, and the potential for healthy dividends.

Westpac Banking Corp (ASX: WBC)

Westpac is a hold in my view.

There is plenty to like about the bank. It has an established position in Australian mortgages and deposits, a large customer base, and the ability to generate substantial profits through different economic conditions.

It also remains an important dividend payer, which makes it a reasonable option for investors seeking income.

My hesitation comes from the outlook for growth. Higher interest rates can support banking margins, but they also place greater pressure on borrowers and reduce demand for new loans.

With Australia’s housing market facing a more difficult period, I think Westpac could find it challenging to deliver particularly strong earnings growth.

There is also competition to consider. Banks are constantly competing for mortgage customers and deposits, which can limit how much benefit they receive from higher rates.

None of this makes Westpac a poor business. If I already owned the shares, I would be comfortable continuing to collect the dividends and giving management time to deliver.

But for fresh investment, I think there are more compelling opportunities elsewhere on the ASX.

Zip Co Ltd (ASX: ZIP)

Zip is my second buy, although it comes with considerably more risk than BHP shares.

The buy now, pay later company has spent recent years improving its financial position and building a platform for more profitable growth.

I think the opportunity in the United States is particularly exciting. There is still room for Zip to expand its merchant relationships, attract more customers, and capture a larger share of consumer spending.

As transaction volumes increase, the company has an opportunity to spread its operating costs across a larger business. I think that could translate into strong earnings growth over the coming years.

But I would be watching credit quality closely. Zip needs to demonstrate that it can continue to grow without taking on excessive lending risk, particularly as higher interest rates put pressure on household finances.

If management continues balancing growth with disciplined lending, I think the company could become substantially more profitable by the end of the decade.

And with the shares still trading well below their previous highs, I believe there could be significant upside if that happens.

Foolish takeaway

BHP and Zip would both be on my buy list today, although for quite different reasons.

BHP offers exposure to long-term commodity demand, while Zip has the potential to deliver much faster earnings growth.

Westpac remains a solid business, but I would be happy holding rather than buying at this stage.

The post Buy, hold, sell: BHP, Westpac, and Zip shares appeared first on The Motley Fool Australia.

More reading

• PLS Group vs Zip: Which ASX share could be a 10-bagger?
• How many BHP shares do I need to buy for $10,000 of passive income?
• Fortescue vs BHP: Which ASX miner is better for passive income in October?
• Brokers tip these 3 ASX shares to jump 72% to 162%
• Zip vs Block: Which ASX payments share is better?

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