S&P/ASX 200 Index (ASX: XJO) shares are 0.7% lower at 8,785.6 points on Tuesday.

Ord Minnett has published new notes on three ASX shares today.

The broker reckons all of them present good buying opportunities. Here’s why.

Fortescue Ltd (ASX: FMG)

The Fortescue share price is $15.27, up 0.2% today and down 24% over 12 months. 

Ord Minnett has a buy rating and a 12-month price target of $19 on this ASX 200 mining share. 

This implies a potential 24% upside ahead.

In a new note, the broker explained its buy recommendation on Fortescue shares:

Fortescue (FMG) provided a preliminary September quarter update that was weaker-than-anticipated.

Iron ore shipments of 46.8 million tonnes (Mt) over the quarter was down 6% year-on-year and below market expectations for 49.7Mt.

While maintenance activity and planned port shutdowns affected shipments, the larger issue remains the unresolved iron ore contract negotiations with the China Mineral Resources Group (CMRG), which meant that sales volumes were even softer at 42.9Mt, as the state-backed buyer restricted deliveries of FMG cargoes.

The key issue in negotiations with CMRG appears to be long-term offtake pricing.

We assume FMG can conclude its negotiations with CMRG by the end of CY26, but if negotiations drag on, management may need to alter mine plans, adjust stockpiling strategies and reconfigure parts of its supply chain to accommodate lower sales volumes.‍

Resmed CDI (ASX: RMD)

The Resmed share price is $34.34, up 0.8% today and down 16% over 12 months. 

Ord Minnett has a buy call and a $36.20 price target on this ASX healthcare share. 

This suggests a potential 5% upside ahead.

The broker commented:

We expect the capital management program to support the shares and earnings. RMD has flagged more than US$1.85 billion will be returned to shareholders through share buybacks and dividends during FY27.

Its sleep business we expect will continue to grow ahead of market, and margins will return to expansion as productivity efficiencies and pricing take effect.

Further, RMD’s forward price-earnings multiple (circa 18x consensus) is not demanding against our EPS growth estimate of 8% in FY27 (in US dollars).

ARB Corporation Ltd (ASX: ARB)

The ARB share price is $16.97, down 0.6% today and down 53% over 12 months. 

Ord Minnett has a buy rating and a $28 price target on this ASX 200 consumer discretionary share.

This implies a potential 65% upside ahead.

The broker said:

ARB-relevant vehicle sales declined 14.4% on the pcp in Sep-26. Key ARB Toyota vehicles were mixed — HiLux sales declined 11.7% and the LandCruiser declined 59.4%, while the LandCruiser Prado grew 6.4%.

The Ford Ranger, another key ARB model, grew 4.0% and was the highest-selling vehicle in the month.

ARB expects FY27 key vehicle sales to be broadly in line with FY26, with upside from improved Toyota supply.

With 1Q27 key model sales 16.3% below the pcp, this requires a recovery over the remainder of the year.

Toyota’s August 2026 data showed further improvement in exports to Oceania, and we continue to forecast a return to earnings growth in FY27, assisted by improved supply, strong gross profit margins and continued offshore expansion.

The post 3 ASX 200 shares to buy and why: Ord Minnett 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 positions in and has recommended ARB Corporation and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended ARB Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’m always interested in companies with the potential to become much bigger businesses over time.

And right now, there are two ASX shares that I think have particularly exciting growth prospects.

Here’s why I would be happy buying them today.

Zip Co Ltd (ASX: ZIP)

Zip is a share I think has plenty of growth ahead of it, especially in the United States.

The buy now, pay later provider has established a growing presence in the American payments market, giving it access to an enormous pool of potential customers and merchants.

What I like is how much more business Zip could generate through its existing platform. As it attracts new merchants and increases transaction volumes, there is an opportunity to generate additional revenue without costs increasing at the same rate.

That could support considerable earnings growth over the next few years. And I think the current valuation makes that opportunity worth considering.

With Zip shares around $2.15, they are trading on a PE ratio of 14 times consensus FY27 earnings, falling to less than 10 times FY29 earnings. I think that could prove very cheap if the company delivers on market expectations.

Of course, there are challenges. Higher interest rates could make funding more expensive and put pressure on Zip’s margins. They could also place additional strain on customers, potentially leading to higher bad debts.

That makes disciplined lending particularly important as the company expands. But if Zip can keep growing its share of the enormous US market while maintaining credit quality, I think shareholders could be rewarded handsomely.

DroneShield Ltd (ASX: DRO)

DroneShield is another ASX share I would buy, although I think it requires considerable patience. The counter-drone technology company’s shares are trading around $1.48 on Tuesday, having fallen sharply from their previous highs.

That weakness comes despite what I believe is an increasingly important long-term market opportunity. Drones have become a major part of modern warfare, and governments are investing in technology capable of detecting and defeating them.

DroneShield has developed a range of systems designed to address these threats, and its growing presence in international defence markets could support substantial sales growth.

The opportunity now is to turn its expanding sales pipeline and procurement agreements into meaningful contracts.

Valuation is a challenge, with DroneShield trading on a very high forward PE ratio. But I don’t think that is the best way to assess the company at this stage.

In some ways, DroneShield reminds me of Zip shares during its earlier rapid-growth phase, when building the business and expanding its market presence were major priorities.

What I want to see is DroneShield developing the scale to convert growing demand into substantial, sustainable profits.

That is far from guaranteed. Defence orders can be unpredictable, competition is increasing, and the company still has execution and regulatory uncertainties to resolve. Nevertheless, I think the potential rewards justify considering the shares as a higher-risk investment.

Foolish takeaway

I would be happy buying both Zip and DroneShield shares today.

There is plenty that could go wrong, but I think both companies have opportunities to become much larger businesses over the coming years.

For investors comfortable with volatility and prepared to take a long-term view, I believe they could deliver excellent returns.

The post Why I'd buy Zip and DroneShield shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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.

ANZ Group Holdings Ltd (ASX: ANZ) has plenty happening behind the scenes.

The banking giant is working to simplify its operations, improve efficiency, and make better use of its position in the Australian and New Zealand markets.

But with interest rates rising and the economic outlook remaining uncertain, is now a good time to buy ANZ shares? Here’s my view.

Why I like ANZ shares

One reason I like ANZ shares is the variety of businesses it operates.

Alongside its Australian mortgage and deposit operations, ANZ has a substantial banking business in New Zealand and a well-established institutional division serving large companies across international markets.

I think that provides several opportunities to generate earnings and build stronger customer relationships.

But what interests me most today is the work management is doing to improve the business. ANZ has been implementing its ANZ 2030 strategy, which aims to simplify the bank, reduce costs, and improve customer experiences.

A significant part of this involves integrating Suncorp Bank and bringing customers onto ANZ’s existing systems. Management is targeting substantial annual cost savings from the integration, with the full benefits expected towards the end of the decade.

I think there is considerable potential here. If ANZ can reduce duplication, improve its technology, and operate more efficiently, it could generate stronger returns from its existing businesses.

That gives me a reason to be positive about its longer-term prospects.

What about the economic outlook?

The next year could still be challenging for ANZ.

Australian interest rates have been rising as the Reserve Bank attempts to bring inflation under control, with further increases possible.

Higher rates can help banks earn more from lending, particularly when their funding costs increase more slowly. But competition for mortgages and deposits can limit those benefits. 

Higher borrowing costs can also reduce demand for new loans and put pressure on households and businesses. I think that helps explain why analysts are expecting relatively little earnings growth in the near term.

Consensus forecasts point to earnings per share of approximately $2.57 in FY26 and $2.55 in FY27. That is hardly an exciting outlook, but I think it is important to look beyond the next financial year.

The benefits of ANZ’s transformation should become more meaningful as its integration and efficiency programmes progress. For me, that provides an opportunity for earnings to improve over the following years.

Is the price reasonable?

ANZ shares are currently trading around $38.86. Based on consensus forecasts, that puts the bank on a price-to-earnings ratio of approximately 15 times FY27 earnings.

I think that is a reasonable price for a major Australian bank with opportunities to improve profitability.

There is also a healthy dividend on offer. Analysts expect ANZ to pay $1.66 per share in dividends in both FY26 and FY27, representing a dividend yield of approximately 4.3% at today’s price.

That provides some income while investors wait for the bank’s transformation to deliver results.

Foolish takeaway

I would be happy buying ANZ shares around $39.

I’m not expecting particularly strong earnings growth in 2027, but I think the work management is doing could leave ANZ in a much better position over the next few years.

With a reasonable valuation and a healthy dividend, I think there is enough on offer to make it worth buying today.

The post Is now a good time to buy ANZ shares? appeared first on The Motley Fool Australia.

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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.