Author: openjargon

I’ve been taking another look at three popular ASX shares.

There are things I like about each of them, but I wouldn’t necessarily buy all three today.

Here’s how I would rate them.

BHP Group Ltd (ASX: BHP)

BHP shares are firmly on my buy list. One reason I like the mining giant is that its portfolio is becoming increasingly geared towards commodities with attractive long-term demand prospects.

Copper is particularly important here. BHP already has substantial copper operations, and I think demand for the metal could increase considerably as the world invests in electricity networks, renewable energy, and digital infrastructure.

The company also has a pipeline of copper growth projects that could help it capitalise on that demand over the coming decade.

I also like the progress being made at its Jansen potash project in Canada, which should eventually give BHP another meaningful source of earnings.

Of course, commodity prices will fluctuate, and BHP’s profits will move with them.

But I think its combination of scale, diversification, and growth opportunities makes it one of the best ASX mining shares to own for the long term.

DroneShield Ltd (ASX: DRO)

DroneShield is another buy for me, although I would approach it with considerably more caution.

The company operates in a market that I think could experience enormous growth over the coming years.

Recent conflicts have demonstrated how drones are changing modern warfare, creating an urgent need for technology capable of detecting and defeating them.

DroneShield has developed a range of solutions to address these threats, and its growing international presence puts it in a position to compete for defence contracts.

I am particularly encouraged by its progress in the United States, where it recently secured access to a major counter-drone procurement programme. The opportunity now is to convert that access, alongside its broader sales pipeline, into substantial orders.

There are still uncertainties surrounding defence procurement, competition, and the company’s ongoing regulatory scrutiny. And with DroneShield shares prone to sharp price movements, I would expect considerable volatility.

Nevertheless, I think the long-term growth potential makes it worth considering for investors comfortable with higher risk.

Lynas Rare Earths Ltd (ASX: LYC)

Lynas is a hold in my view. I recently suggested that the shares could be a buy for investors with diversified portfolios who specifically want exposure to the rare earths industry.

I still stand by that assessment. Lynas has established itself as an important rare earths producer outside China, giving it a valuable position as governments seek to diversify supply chains.

Its proposed acquisition of Meteoric Resources Ltd (ASX: MEI) could also strengthen its long-term growth prospects by expanding its access to rare earths resources.

But developing new projects requires substantial investment, and the company’s earnings remain sensitive to rare earths prices. That creates a more concentrated set of risks than I would ideally want from a core mining investment.

For someone specifically looking to benefit from the growing importance of rare earths, I think Lynas remains worth considering.

But if I were simply looking to increase my exposure to the mining sector, I would prefer a company with a broader commodity portfolio. That is why I would hold Lynas shares rather than add to my position today.

Foolish takeaway

BHP shares would be my preferred choice for long-term mining exposure, while DroneShield offers a more speculative opportunity to benefit from growing defence spending.

I remain positive on Lynas’ future, but I would be more comfortable adding to a diversified mining business at this stage. For me, that leaves two buys and one hold.

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

More reading

• Here are the top 10 ASX 200 shares today
• 9 ASX 200 shares experts are backing for growth amid market weakness
• I investigated 3 ASX shares that have fallen sharply. Are they bargains or value traps?
• 5 ASX 200 stocks analysts have upgraded this week
• I compared 5 of the ASX’s best shares. Here’s which one I’d buy today

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

Although I am not approaching the official retirement age of 67 any time soon, I am someone who has always invested in ASX shares with the idea that they will one day allow me to retire early. Perhaps I will hang up the proverbial boots before age 67. Perhaps I won’t. But it will be nice to have the option. Not just any ASX share will do for my goals, though. It’s my belief that a stock that can fund a long and comfortable retirement – a retirement stock, if you will – needs to fulfil three criteria.

3 things to look for in a retirement stock

Firstly, it needs to demonstrate some signs of possessing what legendary investor Warren Buffett would call a wide economic moat. This concept refers to an intrinsic competitive advantage that a company can possess, which it can use to fend off its competitors and keep its customers coming back. That could be a price advantage, a powerful and trusted brand, or offering a good or service that customers find difficult to avoid using.

Secondly, it needs to have a strong and resilient earnings base. The world is an ever-changing and unpredictable place. As an investor, we need to be as confident as we possibly can that a company we invest our hard-earned dollars into will be able to make its crust in all kinds of economic weather. After all, if a retirement is to last for two, three, or even four decades, it must be funded by companies that can navigate whatever the world can throw in their way.

Thirdly, a company must be able to pay a reliable and meaningful dividend, preferably with full franking credits attached. When the rubber hits the road on our retirement, retirement stocks need to be able to pay us an income. We can never know for sure what kind of dividend a company will pay in the future. But it’s my belief that what it has paid in the past is one of the best indicators of what to expect going forward.

So, now that we have our three criteria unpacked, let’s talk about five retirement stocks that I think check all three boxes.

Coles Group Ltd (ASX: COL)

First up, we have the grocery giant Coles. Almost all readers would be familiar with this company thanks to its dominant network of eponymous supermarkets across the country. Coles also owns the Liquorland chain of bottle shops.

Coles clearly checks all three of our selection criteria. Starting off, it arguably possesses two moats: a well-known and trusted brand, as well as a clear price advantage when it comes to food and household essentials. Most people would assume that their local Coles store is one of the cheapest places to do the weekly grocery shop, and that the products that Coles sells can’t be purchased at a meaningfully lower price elsewhere.

It also has one of the most resilient earnings bases on the ASX. We all need to stock our households with food and essentials on a regular basis. That is irrespective of whether the economy is booming or busting, or whether inflation is high or low. As such, it is pretty clear that Coles will have customers walking through the door no matter the economic weather outside.

Coles also has an exceptional dividend track record. It has paid a reliable dividend every six months since it first hit the ASX in its own right back in late 2018. What’s more, Coles has managed to increase its annual dividend total every single year since then too. Given this company’s payouts also tend to come with full franking credits attached, I think this could be a great retirement stock.

Transurban Group (ASX: TCL)

Next, let’s talk Transurban. This is a company that any motorist in Sydney or Melbourne, and perhaps in Brisbane too, would be intimately familiar with. It owns the vast majority of this nation’s tolled arterial roads. This in itself is enough to tick our first box. A toll road network is, by definition, a form of moat, given that customers find it difficult to avoid using. This moat is widened by the fact that Transurban often enjoys exclusive, decades-long contracts which allow it to increase its tolls by at least the rate of inflation.

That bleeds into our second retirement stock criteria too. This exclusive right to roll some of the country’s most vital road corridors gives Transurban a highly defensive earnings base. Sure, it may see some reduced traffic if there is a severe recession. But given we will always need to get to work, and move goods around our cities, Transurban is a solid choice for a retirement stock, in my view.

This plays out in the company’s dividend history. Transurban has a staircase-like pattern of delivering dividend increases over the past two decades, with the only major hiccups coming in COVID-ravaged 2020 and 2021.

Telstra Group Ltd (ASX: TLS)

Our third retirement stock to discuss is Telstra. This telco is another household name, thanks to its long history as Australia’s major telecommunications provider. Not only does Telstra continue to benefit from this powerful brand association, it also enjoys another form of moat. This company’s mobile network is almost universally regarded as the best in Australia, covering many rural and regional areas that its competitors don’t.

This means that many customers have no choice but to use Telstra for their mobile connectivity.

Telstra’s nature as a telco provider also grants it a defensive earnings base. Fixed-line and mobile internet connectivity are vital, essential services in today’s modern world. If times do get tougher, consumers will arguably pull back on spending on many other things before they will cut back on their internet and phone use. That makes Telstra a fantastic stock for investors looking for a stable retirement investment.

Let’s talk cash now, though. Telstra is one of the ASX’s most famous dividend payers. It has always paid out a strong dividend, which usually comes with at least some franking credits attached. Telstra has been growing its annual payouts every year for many years now as well.

Commonwealth Bank of Australia (ASX: CBA)

Our penultimate retirement stock today is yet another company most Australians would be familiar with. Commonwealth Bank of Australia is, without question, our strongest and best-run bank. Like Telstra, it has a history as a government-owned company, which gives CBA a lot of legacy brand goodwill.

That forms part of CBA’s moat, which is supplemented by its status as our largest bank, lending CBA strength and scale.

However, CommBank is probably our least resilient stock on this list. Banks are notoriously vulnerable to economic shocks, given the crucial role they play in providing credit in the economy. CBA has cut its dividend in the past when the economy has been under pressure. Saying that, this bank’s payouts have always bounced back quickly and have gone on to hit new heights. Over the cycle, CommBank should provide a healthy stream of fully-franked dividend income, and thus, makes for a valuable retirement stock.

Wesfarmers Ltd (ASX: WES)

Our fifth and final retirement stock is not exactly a household name. However, the plethora of successful Australian companies that it runs most certainly are. Wesfarmers is the sprawling industrial and retailing conglomerate behind Bunnings Warehouse, OfficeWorks, Target, and Kmart. The company also owns a range of other businesses, which span from fertiliser and chemical manufacturing to healthcare and mining.

These high-quality individual businesses stitch together to form a formidable moat that surrounds Wesfarmers’ earnings base. The company has so many fingers in so many pies that it tends to survive just fine when economic conditions are tough, and thrive when optimism returns.

Wesfarmers has a long history of looking after its shareholders. The company has delivered above-market returns for decades, coming from both capital growth and a rising dividend.

Wesfarmers has always paid a reliable dividend, which usually comes with full franking credits attached. 2026 was the sixth year in a row that investors have enjoyed an annual dividend pay hike. Given this ASX share’s long-term focus and diverse earnings base, I think it can be called the perfect retirement stock.

The post I look for 3 things in a retirement stock. These 5 shares have them all appeared first on The Motley Fool Australia.

More reading

• 9 ASX 200 shares experts are backing for growth amid market weakness
• How much do I need in my superannuation to generate a $108,000 annual passive income?
• Telstra vs ANZ: Which ASX blue chip is better for retirees?
• CBA shares jump 3% today: Is this the start of a rebound?
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Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group and Transurban Group. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) enjoyed an exceptionally happy end to the trading week this Friday, pushing the value of many ASX shares decisively higher. After what has been a rather lacklustre week thus far, investors were clearly in the mood to party today, with the ASX 200 opening well ahead and staying in green territory all session.

By the time the markets closed, the index had added a flat 1% to its total, leaving it at 8,806.7 points as we head into the weekend.

This jubilant session for ASX investors followed a rosy morning over on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) was firing on all cylinders, rising a solid 1.08%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was more muted though, gaining just 0.076%.

Let’s return to our local markets now and check out what was happening amongst the different ASX sectors .

Winners and losers

Despite today’s solid rises, we still had a few corners of the market that missed out.

Most prominent of those sectors were consumer staples shares. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) was left out in the cold this Friday, slumping 0.53%.

Financial stocks weren’t in favour either, with the S&P/ASX 200 Financials Index (ASX: XFJ) diving 0.52%.

Real estate investment trusts (REITs) had a rough one too. The S&P/ASX 200 A-REIT Index (ASX: XPJ) sank 0.28% today.

Energy shares were in that ballpark too, illustrated by the S&P/ASX 200 Energy Index (ASX: XEJ)’s 0.26% retreat.

Communications stocks were our final losers. The S&P/ASX 200 Communication Services Index (ASX: XTJ) saw its value dip 0.01%.

Let’s get to the green sectors now. Leading the charge were tech shares, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) exploding 5.62% higher.

Gold stocks had a day to remember too. The All Ordinaries Gold Index (ASX: XGD) surged up 3.99% this session.

We could say the same for broader mining shares, as you can see by the S&P/ASX 200 Materials Index (ASX: XMJ)’s 3.18% jump.

Healthcare stocks also ran hot. The S&P/ASX 200 Healthcare Index (ASX: XHJ) vaulted up 2.49%.

Consumer discretionary shares saw decent demand as well, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) leaping 1.07% higher.

Next came industrial stocks. The S&P/ASX 200 Industrials Index (ASX: XNJ) added 0.89% to its total today.

Finally, utilities shares finished the week on a positive note, evidenced by the S&P/ASX 200 Utilities Index (ASX: XUJ)’s 0.72% bounce.

Top 10 ASX 200 shares countdown

Chip stock Weebit Nano Ltd (ASX: WBT) was our best stock on the index this Friday, beating out some stiff competition. Weebit Nano shares roared 17.07% higher today to close the week at $2.88 each.

This came after the company reported its quarterly cash flows this morning, which were clearly impressive.

Here’s the rest of today’s best:

ASX-listed company	Share price	Price change
Weebit Nano Ltd (ASX: WBT)	$2.88	17.07%
Sunrise Energy Metals Ltd (ASX: SRL)	$15.73	12.76%
Electro Optic Systems Ltd (ASX: EOS)	$9.40	10.07%
DroneShield Ltd (ASX: DRO)	$1.56	9.86%
PDI Gold Ltd (ASX: PDI)	$4.38	9.77%
Elsight Ltd (ASX: ELS)	$3.37	9.06%
WiseTech Global Ltd (ASX: WTC)	$37.61	9.01%
NextGen Energy (Canada) Ltd (ASX: NXG)	$12.39	8.30%
Life360 Inc (ASX: 360)	$20.38	7.66%
IperionX Ltd (ASX: IPX)	$2.08	7.49%

Enjoy the weekend!

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Sebastian Bowen 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 DroneShield, Life360, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Life360 and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

SKS Technologies Group Ltd (ASX: SKS) shares are $6.99 apiece, up 3.1% on Friday.

This has been a bad week for SKS Technologies investors, who have seen their stock plummet 20% in value.

A couple of factors are likely playing into the share price drop.

Let’s investigate.

Why have SKS Technologies shares dropped?

SKS Technologies specialises in the design and installation of electrical technologies and digital infrastructure, including data centres.

It appears the company has been affected by the fallout from the much-anticipated Firmus ASX IPO not going ahead.

Firmus designs and operates data centres. The founders confirmed that the ASX IPO would not proceed last Friday.

Over the past five days, SKS Technologies shares have fallen 20%.

On Tuesday, SKS Technologies responded to a price query from the ASX.

The ASX noted that SKS Technologies shares had traded at an intraday peak of $8.605 before closing at $6.89 on high trading volumes.

SKS Technologies said:

The Company notes that there have been recent announcements involving participants in the broader data centre sector which may have influenced investor sentiment toward companies exposed to the sector.

The Company is not aware of any information that will adversely impact existing projects, or future opportunities relevant to SKS.

The Company’s work in hand and pipeline remains consistent with the ASX announcement as disclosed on Tuesday 7 October.

SKS continues to maintain a strong pipeline of opportunities and remains actively engaged in converting those opportunities into secured
work.

The Company has not received any communication indicating that any future opportunities have been delayed or cancelled and, in recent months, has continued to receive additional inbound opportunities that further support its future growth prospects.

Firmus shareholder and electrical infrastructure contractor, Maas Group Holdings Ltd (ASX: MGH), was also affected by the IPO cancellation.

The Maas share price has fallen 17% this week.

What else has happened?

SKS Technologies Executive Chair Peter Jinks, Executive Director Greg Jinks, and an associated entity of CEO Matthew Jinks sold 10 million shares on-market last Wednesday, 7 October.

That was a day after SKS Technologies announced the awarding of an additional $38 million of work at a Melbourne data centre project.

The majority of the 10 million shares sold belonged to Peter and Greg Jinks.

The sale represented approximately 30% of the shares held by the Jinks family.

ASX disclosures show the shares sold for an average $10.48 apiece.

Peter and Greg Jinks each sold 4,457,000 SKS Technologies shares worth a combined $94.4 million.

SKS Technologies issued a statement explaining why the family had sold such a large position.

The company said:

The Share Sale was in response to a high level of inbound interest from investors, and the Vendors determined that the Share Sale will support the marketability and liquidity of SKS shares, as well as for wealth diversification purposes.

The Jinks family will hold ~21% of the Company and will remain the majority shareholder following completion of the transaction.

SKS Technologies added:

The Jinks family retains strong conviction in the future prospects of the Company and have no intention to conduct further sales for the foreseeable future.

The SKS Technologies share price fell 12% on the day investors learned of the sell-down.

SKS Technologies will hold its annual general meeting (AGM) on Thursday, 26 November.

The post SKS Technologies shares tank 20% after Firmus IPO flop and directors' $94M sale 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 recommended Sks Technologies Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Materials Index (ASX: XMJ) is up 9% in 2026, further capitalising on last year’s 32% growth.

The materials sector, which is dominated by ASX mining shares, was the best-performing sector of 2025.

This year, it’s running fourth behind energy (up 31%), consumer staples (17%), and utilities (10%).

Commodity prices have been resilient in 2026, which has supported mining stock valuations.

The green energy transition and other factors are providing strong drivers for new long-term growth in Australia’s mining sector.

However, over the next five years, the government forecasts many commodity prices to peak in FY27 and decline through to FY31.

With that said, let’s look at some ASX 200 mining shares with buy recommendations from Bell Potter.

PLS Group Ltd (ASX: PLS)

The PLS Group share price is $3.02, up 1.7% today.

This ASX 200 lithium mining share has tumbled 30% in the calendar year to date (YTD).

Bell Potter upgraded PLS Group shares to a buy rating on Wednesday.

The broker cut its 12-month price target from $5.20 to $4.40.

This suggests a potential 45% upside ahead.

Analyst James Williamson said:

We upgrade to a Buy recommendation on recent share price weakness.

At current lithium market prices, PLS will generate substantial earnings and cash flow with the restart of the 200ktpa Ngungaju processing plant.

P2000 and Colina development studies are being progressed, providing organic growth optionality in markets with strong underlying EV and BESS-led long term demand fundamentals.

Minerals 260 Ltd (ASX: MI6)

The Minerals 260 share price is 81 cents, up 6.6% today.

This ASX 200 gold mining share has ripped 88% YTD despite a 3% fall in the gold commodity price.

Bell Potter maintained a speculative buy rating on Minerals 260 shares this week.

The broker kept its 12-month target of $1.45 in place.

This suggests a potential 79% upside ahead.

Analyst David Coates said:

MI6 offers gold exposure via the 6.2Moz BGP, valuation uplift through exploration success, project advancement and de-risking as the BGP progresses towards production.

MI6 is now largely funded to develop the BGP and on track to complete a DFS and make a FID in early CY27, plus secure long-lead items and commence early site works.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is $44.67, up 0.7% today.

This ASX 200 lithium and iron ore mining share has fallen 19% YTD.

Bell Potter reiterated its buy call on Mineral Resources shares on Wednesday.

The broker slashed its 12-month price target from $75 to $63.

This suggests a potential 41% upside ahead.

Analyst James Williamson said:

Completion of the US$765m MIN-POSCO lithium transaction is expected in the current half, and will accelerate balance sheet deleveraging paired with strong cash flows from iron ore and lithium operations.

MIN’s mining services platform delivers a stable earnings stream that is expected to expand with internal and third-party volume
growth. The company is strongly positioned to execute its next phase of growth, having reinstated dividends.

The post 3 ASX 200 mining shares to buy with 41% to 79% upside ahead: broker appeared first on The Motley Fool Australia.

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• 9 ASX 200 shares experts are backing for growth amid market weakness
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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 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 up 0.8% to 8,795 points on Friday.

Let’s take a look at some new ratings from Morgans.

Paladin Energy Ltd (ASX: PDN) 

The Paladin Energy share price is $7.40, up 7% today and down 25% over 12 months. 

Morgans has a buy rating on this ASX 200 uranium mining share.

In a new note, Morgans shaved its 12-month price target down from $13.30 to $13.10.

The broker said: 

PDN’s 1Q27 result reflected the anticipated slow start to FY27, with Langer Heinrich Mine (LHM) uranium production of 1.0Mlbs below consensus expectations of 1.16Mlbs. Uranium sales of 1.16Mlbs were in line with consensus expectations of 1.13Mlbs.

The result was impacted by the flagged and planned July plant shutdown and weaker recovery rates due to ore characteristics.

Mining momentum and realised pricing – mining performance improved qoq following strong performance in 4Q26 and realised pricing increased 12% to US$79.4/lb, a record at LHM.

Following recent share price weakness, we upgrade our rating to BUY (previously ACCUMULATE) with a price target of A$13.10ps (previously A$13.30ps).

Rio Tinto Ltd (ASX: RIO)

Rio Tinto shares are $154.23, up 1% today and up 19% over 12 months. 

Morgans has a hold rating on this ASX 200 mining share. 

In a new note, the broker increased its 12-month target on Rio Tinto shares from $159 to $162.

Morgans said: 

RIO delivered a largely steady quarter, with slight beats from copper and alumina, iron ore inline, while lithium trailed estimates.

Oyu Tolgoi was the highlight in 3Q26, enough to offset lower output from Escondida and Kennecott.

RIO’s share price has traded sideways so far through 2026, in a ~20% range.

Our new forced ranking is now RIO then South32 Ltd (ASX: S32), BHP Group Ltd (ASX: BHP), and Fortescue Ltd (ASX: FMG).

Fortescue Ltd (ASX: FMG)

The Fortescue share price is $15.32, up 2% today and down 23% over 12 months. 

Morgans has a sell (trim) rating on this ASX 200 iron ore share.

In a new note, the broker slashed its 12-month target from $18.70 to $15.40.

Morgans said:

We have long argued that investing material capital in near-term loss-making projects (magnetite and new energy) has not diversified Fortescue, and has instead left group earnings more exposed to the iron ore price.

Magnetite adds more iron ore exposure but at a higher cost, while new energy investment, and US$0.9-1.3bn of FY27 decarbonisation spend, are funded from hematite cash flow. This dynamic is starting to show in the numbers.

Fortescue flagged that net debt rose US$1.9bn in 1Q27, equal to the final dividend (US$1.0bn) plus quarterly capex (US$0.9bn), implying negative FCF for the quarter.

We attribute this mainly to weaker hematite cash flow after the central buying group China Mineral Resources Group (CMRG) reportedly halted purchases of two of Fortescue’s products during the quarter, leaving shipments 6% and actual sales 14% below Visible Alpha (VA) consensus in 1Q27.

The post Buy, hold, sell: Paladin Energy, Fortescue, Rio Tinto shares appeared first on The Motley Fool Australia.

More reading

• I investigated 3 ASX shares that have fallen sharply. Are they bargains or value traps?
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• 5 ASX 200 stocks analysts have upgraded this week
• 3 ASX shares tipped by brokers to return 41% to 85% in the next 12 months
• Buy, hold, sell: Reece, Fortescue, Electro Optic Systems 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 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.

S&P/ASX 200 Index (ASX: XJO) shares are up 0.8% today but down 3% over 12 months.

The market has been volatile this year amid the US-Iran war, persistent inflation, and now rising interest rates at home and in the US.

The market has weakened significantly since hitting a 52-week high in August.

Amid the weakness, brokers see opportunities to invest in some ASX 200 sector heavyweights.

Let’s take a look.

BHP Group Ltd (ASX: BHP)

The BHP share price is $59.47, up 2.5% today.

Over the past month, this ASX 200 mining share has fallen 1%.

Morgan Stanley renewed its buy rating on BHP shares on Monday.

The broker raised its 12-month price target from $68 to $69.

This suggests a potential 16% upside ahead.

Telstra Group Ltd (ASX: TLS)

The Telstra share price is $4.74, down 1.2% today.

Over the past month, this ASX 200 telco share has fallen 3%.

Citi reaffirmed its buy rating on Telstra shares with a 12-month target of $5.25.

This suggests a potential 11% upside ahead.

CSL Ltd (ASX: CSL)

The CSL share price is $190.41, up 1.9% today.

This ASX 200 healthcare share has risen 9% over the past month.

Morgan Stanley reiterated its buy rating on CSL shares this week.

However, the broker has a 12-month target of $182, which implies a 4% downside from here.

Xero Ltd (ASX: XRO)

The Xero share price is $61.14, up 5.9% today.

Over the past month, this ASX 200 tech share has fallen 8%.

RBC Capital renewed its buy rating on Xero shares this week.

The broker upped its 12-month price target from $85 to $96.

This suggests a potential 57% upside ahead.

Santos Ltd (ASX: STO)

The Santos share price is $9.17, down 0.2% today.

Over the past month, this ASX 200 energy share has increased 5%.

UBS reaffirmed its buy rating on Santos shares on Tuesday.

The broker raised its 12-month target from $8.30 to $9.50.

This suggests a potential 3% upside ahead.

PLS Group Ltd (ASX: PLS)

The PLS share price is $3.04, up 2.2% today.

This ASX 200 lithium share has tumbled 29% in just one month.

Jefferies renewed its buy rating on PLS shares on Monday.

The broker lowered its price target from $6.30 to $5.50.

This implies potential capital growth of 81% over the next year.

Stockland Corporation Ltd (ASX: SGP)

The Stockland share price is $4.21, down 0.8% today.

This ASX 200 property share has risen 2% over the past month.

Jarden reiterated its buy rating on Stockland shares on Wednesday.

The broker decreased its 12-month target from $5.69 to $5.

This still implies a potential 19% upside ahead.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is $8.56, up 0.9% today.

This ASX 200 financial share has ascended 6% over the past month.

UBS reiterated its buy rating on IAG shares with a price target of $9.10.

This implies a potential rise of 6% ahead.

Newmont Corporation CDI (ASX: NEM)

The Newmont share price is $165.26, up 3.4% today.

This ASX 200 gold mining share has fallen 5% over the past month.

Jefferies renewed its buy rating on Newmont shares with a $224.12 target.

This implies potential capital growth of 35% over the next year.

The post 9 ASX 200 shares experts are backing for growth amid market weakness appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. 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 CSL, Jefferies Financial Group, and Xero. The Motley Fool Australia has positions in and has recommended Telstra Group and Xero. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX shares have come off the boil over the past couple of months as September’s highly anticipated interest rate hike, surprisingly high inflation figures, and mortgage market pressures grip investor attention.

Add geopolitical uncertainty and shifting commodity trends into the mix, and it’s no wonder that investors are spooked.

Some ASX shares have been worse-affected than others, and it’s easy to just flee falling stocks in times of stress.

The thing is, some of these share price crashes actually present investors with a great opportunity to buy into a company for cheap.

But the theory isn’t universal. Buy into the wrong stock, and you could quickly see your investment go down the drain.

And it made me wonder: How do I tell which is which?

I decided to investigate three depressed high-profile ASX shares to determine if they’re a bargain buy or a value trap.

Was their share price crash warranted, and are there signs the company can turn it around?

Here’s what I found.

Xero Ltd (ASX: XRO)

It’s no secret that Xero shares have been under incredible pressure over the past 12 to 18 months, and that selling pressure has continued through most of 2026. Xero showed positive signs of recovery through the month to late August, rebounding 44% in just four weeks.

But sentiment quickly turned again and, at the time of writing, the shares have fallen 33% over a seven-week period, to just $59.53. In fact, in early October, the ASX shares dropped to a seven-year low of $55.31.

But what is interesting about Xero’s latest fall from grace is that it isn’t driven by a breakdown of the company’s core operations or a company crisis. Instead, the latest downturn looks like a combination of the latest macroeconomic stresses and general investor uncertainty.

And this caught my attention.

The Melio acquisition in the US is still weighing on confidence. The short-term effect of the acquisition is clear, but there isn’t much indication that the long-term effect will be negative. It’s mostly speculative at the moment.

In my view, Melio could plug a gap in Xero’s product suite by adding features it doesn’t have. And that could unlock a huge pool of untapped revenue and improved gross margins.

I think we could soon see concrete proof that the new products are turning into sales. If that happens, I expect Xero could pull forward its timeline of profitability (the company is currently guiding the second half of FY28), which would, in turn, quickly drive the share price higher.

So, are Xero shares a bargain buy, or a value trap?

My verdict: Bargain buy.

Fortescue Ltd (ASX: FMG)

The iron ore miner’s shares were relatively resilient through the first half of 2026. But investor sentiment tumbled in early June, sending the share price crashing. And it’s continued falling ever since. At the time of writing, the ASX iron ore shares have fallen 32% over the past four months. They’re now down 31% year to date, and trading at $15.07.

Unlike Xero, Fortescue’s sharp share price decline is multifaceted. 

The company generates a substantial amount of its cash flow from its large iron ore operations, so while rising iron prices act as a tailwind, falling iron ore prices do the opposite. Iron ore prices have crashed to around a four-year low of just over US$90 per tonne at the time of writing, severely affecting the miner’s margins.

The miner has also faced ongoing tensions and contract negotiations with China’s state-backed buyer, China Mineral Resources Group (CMRG). The group has urged Chinese mills to curb delivery of iron ore from major miners while it negotiates with domestic steelmakers. It plans to force major miners into lower pricing agreements

Understandably, the falling iron ore price and contract issues have caused a significant drop in shipments, which in turn has put pressure on the miner’s earnings.

There’s more, though. Fortescue has also been criticised for heavy spending on its green energy expansion, including green hydrogen and renewable grids in the Pilbara. Earlier this year, the miner said it had committed an additional US$680 million to the project, bringing the total investment to US$6.88 billion.

It’s clear that Fortescue’s investment outgoings and revenue are out of kilter. But the key question is, will any of these headwinds soon turn into tailwinds?

I don’t think so.

It would depend on three things. A rebound in iron ore prices, settlement with the CMRC, and tighter capital expenditure.

The price of iron ore is heavily tied to China’s infrastructure growth. So we’d need to see a monetary injection into the sector to create a pickup in steel mill production, and a pickup in iron ore demand.

We’d also need to see a resolution of the CMRG’s negotiations with major iron ore companies. And one that doesn’t translate to significantly lower pricing agreements for Fortescue.

Fortescue’s green energy transition is expected to eliminate an 800 million-litre annual diesel bill in the Pilbara by 2030. That’s great, but it’s another four years away.

So, are Fortescue shares a bargain buy, or a value trap?

My verdict: Value trap.

DroneShield Ltd (ASX: DRO)

DroneShield shares have fallen out of favour with investors this year following concerns about an ASIC investigation and questions about whether its share price had run too far ahead of true value.

At the time of writing, the ASX shares are $1.43 a piece. The ASX shares have crashed 37% since posting a disappointing first-half FY26 result in August. They’re down 57% year to date.

The counter drone operator’s shares were firmly on my radar earlier this year. And while I think the sell-off has been overdone, I understand why investors have reacted so strongly.

DroneShield’s revenue came in line with guidance expectations. But recurring revenue was a miss, at $11.5 million versus guidance of $14.2 million for the six-month period.

The update came amid an ongoing ASIC investigation that relates to market announcements and share trading in November 2025.

And recently, the company appointed a chief financial officer, Rebecca Lowde, and a new non-executive director, Lynne Saint. It’s not uncommon for investors to sell up on leadership changes because it implies potential for new uncertainties, but the timing makes me question if there are more issues deeply rooted in the business.

Can DroneShield turn its business around?

At the moment, I’m not sure. 

The company continues to win new deals and contracts and recently confirmed it has committed $261 million of FY26 revenue, which is the midpoint of its FY26 revenue outlook range. It’s likely that DroneShield will reach its full-year target, but what I’m interested in is whether the company can maintain the same trajectory into FY27.

That’s what I’m unsure about. 

Achieving the same sort of scale next year depends heavily on whether it can convert its procurement contracts into actual binding ones. That’s where there is a legal requirement to deliver the order. 

Perhaps the new leadership change might be exactly what the business needs to move into the next stage of growth.

Or perhaps DroneShield will take one step backwards before going forward again.

So, are DroneShield shares a bargain buy, or a value trap?

My verdict: Value trap.

The post I investigated 3 ASX shares that have fallen sharply. Are they bargains or value traps? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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 DroneShield and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The recent decision by the Reserve Bank of Australia to increase official interest rates once again has pushed the share price of seven of the nation’s major real estate companies to 12-month lows, raising the question: Are they becoming even more attractive dividend plays?

Since the start of October, Arena REIT (ASX: ARF), Charter Hall Long WALE REIT (ASX: CLW), HomeCo Daily Needs REIT (ASX: HDN), Waypoint REIT (ASX: WPR), GPT Group Ltd (ASX: GPT), Vicinity Centres Ltd (ASX: VCX), and BWP Group Ltd (ASX: BWP) have all hit 12-month lows, with the dips concurrent with the RBA’s rates decision.

Low share prices translating to good yields

Each of these real estate companies is now trading with a healthy trailing dividend yield. The question will be, can they maintain it?

Examples of some of the yields include Charter Hall with a yield of 7.94% unfranked, HomeCo on 8.03% unfranked, and BWP on 5.49%.

Arena REIT is trading with a trailing yield of 7.76%. The company, in releasing its full-year results in August, gave guidance of 18 cents per share in distributions for the current financial year, which, at the current share price, would be a yield of 7.4%.

However, this estimate assumed the company would derive no income from the Arena properties occupied by Edge Early Learning Centres, which had entered administration.

Arena has subsequently told the ASX that all 27 of these properties are in the process of being leased to new owners; however, the deals are yet to settle.

As such, no dividend or guidance update has been made.

Interest rates a key focus

With real estate companies generally having large amounts of debt, their share prices could once again come under pressure if the RBA lifts interest rates again at its next meeting on 3 November.

ANZ Senior Economist Jasmine Zheng said this week a rate rise was “more likely than not”, while Betashares Chief Economist David Bassanese was also predicting a hike.

The RBA’s minutes from the meeting on October 6 indicated that further rate rises could be on the cards.

As they said:

Members discussed the challenges of judging how large the upside risks to inflation were or could become. They noted that the outlook for inflation would depend, among other things, on developments in the Middle East, the path of external demand, the extent of domestic capacity pressures and on how that influenced the pass-through of cost shocks and the evolution of inflation expectations. Members noted that it was possible these factors could continue to place upward pressure on inflation. Against that backdrop, members agreed that they would remain attentive to incoming data and the evolving assessment of the outlook and risks when making their decisions.

The post Dividend yields in focus as seven ASX real estate companies hit 12-month lows appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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 HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Mesoblast Ltd (ASX: MSB) share price is in focus today after the company reported a 44% jump in Ryoncil net revenue to US$28 million and an 85% improvement in net operating cash spend for the first fiscal quarter.

What did Mesoblast report?

• Net revenue from Ryoncil sales rose 44% to US$28 million (Q1 FY25: US$19 million)
• Net operating cash spend improved 85% to just US$2.3 million (prior period: US$14.9 million)
• Strong cash position: US$99 million at 30 September 2026
• Record new patient starts in September after seasonal July/August slowdown

What else do investors need to know?

Mesoblast attributes its revenue growth and improved cash position to greater penetration and adoption of Ryoncil across 54 onboarded treatment sites. Ryoncil is the first and only FDA-approved mesenchymal stromal cell therapy for children under 12 with steroid-refractory acute graft-versus-host disease.

The company is also focusing on disciplined capital management to support its commercial manufacturing and late-stage clinical programs. All reported results are preliminary and subject to audit.

What’s next for Mesoblast?

Looking ahead, Mesoblast plans to expand the reach of Ryoncil, further increasing adoption among eligible hospitals and clinics. The company is also progressing additional pipeline products targeting inflammatory diseases and is strengthening commercial partnerships overseas.

Disciplined capital use and investment in late-stage clinical trials remain priorities. Management is focused on building sustainable growth while maintaining strong cash reserves.

Mesoblast share price snapshot

Over the past 12 months, Mesoblast shares have declined 29%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post Mesoblast reports Ryoncil revenue surge and improved cash spend appeared first on The Motley Fool Australia.

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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 summary of the company announcement. 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.