A lot can change in a decade or more, particularly in the ASX share market.

Some companies will struggle to keep up with changing technology and consumer habits, while others could grow into much larger businesses.

For me, the challenge is identifying ASX shares that have what it takes to remain successful over such a long period.

Here are three ASX shares I think could still be thriving in 2040.

Coles Group Ltd (ASX: COL)

Coles is my first pick because I think it has the foundations of a business that can remain successful for decades.

Australians will always need groceries, and Coles has spent years building the stores, distribution networks, and supplier relationships needed to serve millions of customers.

I think that gives it a strong starting point. But what I like most is how the business could evolve between now and 2040.

Coles has been investing heavily in automated distribution centres and more efficient fulfilment operations. These investments should help reduce costs, improve productivity, and support its growing online business.

I also expect technology to play a bigger role in how Coles manages inventory, predicts demand, and serves customers.

If management continues making the right investments, I think the company could become considerably more efficient over time.

Competition will remain strong, and consumers will always be sensitive to grocery prices. Nevertheless, I like Coles’ position in an essential industry and believe it could be a much stronger business by 2040.

REA Group Ltd (ASX: REA)

REA Group is another ASX share I would be comfortable backing over the next 14 years.

Its realestate.com.au platform has become a central part of how Australians search for property. I think that position gives REA a significant competitive advantage.

Homebuyers and renters visit the platform because it has an enormous selection of property listings. Meanwhile, real estate agents want their properties advertised where they can reach the largest audience. That creates a powerful relationship between the platform, its users, and advertisers.

I also think there is considerable scope for REA to keep developing its offering. Property search is only one part of the process of buying or selling a home. REA can continue expanding into related services, including property data, financing, and tools that help consumers make decisions.

Its international operations offer another potential source of growth.

Housing market conditions will influence results from year to year, but I expect digital property services to become even more important by 2040.

And I think REA is exceptionally well positioned to benefit.

TechnologyOne Ltd (ASX: TNE)

My final pick is TechnologyOne, an Australian software company that I think has an excellent opportunity to keep expanding internationally.

TechnologyOne provides enterprise software to organisations including universities, local councils, and government departments.

These customers rely on its systems to manage important functions such as finances, payroll, and administration. Once this technology becomes embedded in an organisation’s operations, replacing it can be expensive and disruptive.

I think that creates a strong foundation for long-term customer relationships.

TechnologyOne has also successfully transitioned customers to its software-as-a-service platform, providing a more predictable revenue base and opportunities to keep improving its products.

Looking towards 2040, I particularly like its potential to grow beyond Australia. The United Kingdom offers a significant opportunity as public sector organisations modernise their technology.

Artificial intelligence (AI) could also help TechnologyOne deliver more capable software and improve productivity for customers.

There will be competition and technological changes to navigate, but I think TechnologyOne has the foundations to become a much larger global software business.

Foolish takeaway

I think the best long-term investments are businesses that can keep finding ways to grow as the world changes around them.

That is what I would be looking for when choosing ASX shares to hold until 2040.

All three of these companies have strong market positions and opportunities to keep building on their success. I would be happy to buy them today and give them the next 14 years to prove their worth.

The post 3 ASX shares I think could still be thriving in 2040 appeared first on The Motley Fool Australia.

More reading

• 6 ASX shares hit by broker downgrades this week
• 3 reasons I would invest $10,000 in Coles shares
• Buying Coles shares? Here’s the dividend yield you’ll get today
• How much could the REA Group share price rise in the next year?
• I screened the ASX for quality and value. These 5 shares stood out

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.

S&P/ASX 200 Index (ASX: XJO) shares are narrowly lower, down 0.03%, at 8,726 points on Thursday.

Meanwhile, three experts explain their latest ratings on three ASX 200 shares.

Let’s review. 

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems shares are $8.54, down 8.1% today and up 38% over 12 months. 

Bell Potter has a buy rating on this ASX 200 industrials share. 

In a new note, the broker raised its 12-month target price from $12.60 to $13.80.

Analyst Baxter Kirk said:

EOS has entered into an agreement with the government of a Middle Eastern Gulf state (GCC member) for a nation-wide counterdrone (C-UAS) defence system valued at £370m (~$700m). This represents the largest contract ever secured by EOS.

EOS expects over 80% of contract revenue to be earned over the initial 12-24 months after the contract becomes unconditional.

Given the security deposit posted in August 2026, we believe this contract award was somewhat priced in by the market, however, we are surprised by the market’s reaction and given upcoming catalysts, believe current levels represent an attractive entry point.

Fortescue Ltd (ASX: FMG)

The Fortescue share price is $15.22, down 0.7% today and down 23% over 12 months. 

Bell Potter has a hold rating on this ASX 200 mining share. 

In a new note, the broker reduced its 12-month target price from $17.10 to $15.80.

Analyst David Coates said: 

FMG has reported a suite of negative metrics in an out-of-cycle preliminary report updating performance for the September 2026 quarter.

Total shipments were down 6% YoY to 46.8Mt (incl. 2.5Mt from Iron Bridge), with a scheduled port shutdown impacting volumes.

Sales of 42.9Mt were 8% below shipments of 46.8Mt, with the 3.9Mt gap attributed to ongoing negotiations with China Mineral Resource Group (CMRG), China’s centralised ore buying agency.

This is the first time FMG has disclosed a material discrepancy between shipments and sales.

Price realisations also weakened to 82% (vs benchmark Platts 61%: US$80/dmt). Absolute price received is down ~US$9/dmt QoQ.

Net debt rose to US$2.8bn (from US$0.9b at 30 June) as cash fell to US$3.2b (from US$5.1b) after US$1.0b final dividend, US$0.9b
of CAPEX and an estimated ~US$300m impact from unsold ore.

FY27 guidance of 197-207Mt at C1 costs of US$20.50-21.75/wmt is unchanged, but is now “subject to negotiations with CMRG”.

We had previously flagged risks to price realisations and we now make a greater allowance and for longer through our forecast period.

Reece Ltd (ASX: REH)

The Reece share price is $17.04, down 0.4% today and up 45% over 12 months. 

Blake Halligan from Gray Perry Wealth Advisers has a sell rating on this ASX 200 industrials share. 

Halligan said (courtesy The Bull): 

Reece is a plumbing supplies company in Australia, New Zealand and the United States.

Statutory sales revenue was up 4.5 per cent in reported currency in full year 2026 when compared to the prior corresponding period. However, earnings before interest and tax in reported currency fell 2.6 per cent.

Housing cyclicality and US execution remain material risks. Any slowdown in housing activity or property prices could weaken demand for plumbing products, placing pressure on revenue, margins and earnings.

In our view, the shares appear expensive relative to these risks.

The post Buy, hold, sell: Reece, Fortescue, Electro Optic Systems shares appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Fortescue, Guzman Y Gomez, and Megaport shares
• Down 29% so far in 2026: What do brokers tip next for Fortescue shares?

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 Electro Optic Systems. 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.

Bank of Queensland Ltd (ASX: BOQ) shares are moving higher on Thursday following the release of the bank’s full-year results.

The shares are up around 1% to $6.56, with investors seemingly encouraged by the progress being made across the business.

But is the latest update enough to make Bank of Queensland shares worth buying? Here’s how I see it.

Some encouraging progress

One thing I liked about the bank’s results was the progress it is making towards becoming a simpler, more efficient bank.

The company has completed the migration of ME customers onto its new digital banking platform, removing an important obstacle in its transformation.

It has also continued investing in technology and improving its operations, with further productivity benefits expected in FY27.

I think these changes could help Bank of Queensland become more competitive and reduce costs over time.

There was also encouraging growth in business banking. Commercial lending increased 16% during FY26, supported by demand across sectors including healthcare, agriculture, and other industries.

This is an area where Bank of Queensland has established expertise, and I think it could become an increasingly important source of growth.

Another positive was the improvement in its net interest margin, which increased six basis points to 1.70%. Combined with continued cost discipline, that suggests management is making progress on some of the issues that have weighed on profitability.

Why I’m still cautious on Bank of Queensland shares

Despite those improvements, I think Bank of Queensland has more work ahead before it becomes a particularly compelling investment.

The bank reported cash earnings of $358 million for FY26, down 7% on the previous year. That decline is disappointing, particularly when the larger Australian banks have generally demonstrated stronger earnings resilience.

Bank of Queensland’s mortgage business also struggled, with home lending contracting 8% during the year.

Management is targeting a return to home lending growth in FY27, supported by its digital platform and expanded distribution. I would want to see evidence of that recovery before becoming more positive.

The economic environment could also make things difficult. Interest rates are expected to remain elevated, with further increases possible as the Reserve Bank attempts to control inflation.

While higher rates can support banking margins, they also place pressure on borrowers and can reduce demand for new lending.

For a smaller bank competing against much larger rivals, I think that creates additional challenges.

What about the dividend?

One reason income investors might remain interested is the bank’s dividend.

The bank declared a fully franked final dividend of 20 cents per share, bringing its ordinary dividends for FY26 to 40 cents.

At $6.56, that represents a dividend yield of approximately 6.1%.

Shareholders also received a fully franked special dividend of 15 cents during the year, although I would not assume that payment will be repeated.

I think its dividend yield is attractive, but maintaining it will depend on the bank delivering more consistent earnings.

Foolish takeaway

I would rate Bank of Queensland shares as a hold following these results.

Management is making worthwhile improvements, and the dividend provides a reason for existing shareholders to remain patient.

For me, though, I would like to see stronger earnings and a return to mortgage growth before putting fresh money into the bank.

Until then, I think there are better opportunities elsewhere on the ASX.

The post Would I buy Bank of Queensland shares after looking at its results? appeared first on The Motley Fool Australia.

More reading

• Bank of Queensland earnings: FY26 profit up 88% as dividends stay steady
• Here are the top 10 ASX 200 shares today
• Bendigo and Adelaide Bank vs Bank of Queensland: Which is better value?
• 6 ASX shares downgraded by experts this week
• Buy, hold, sell: Orica, Bank of Queensland, Megaport shares

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.