Author: openjargon

Zip vs WiseTech shares: which is the stronger growth prospect?

If you’re considering ASX growth shares for your portfolio, two very different technology names you might be weighing up are Zip Co Ltd (ASX: ZIP) and WiseTech Global Ltd (ASX: WTC). Both operate in tech-driven industries and have ambitious aims, but their fundamentals, business models, and recent share price action make for an intriguing comparison. Let’s look at Zip vs WiseTech shares to see which could be better positioned for strong growth from here.

The case for Zip

Zip is an Australian fintech focused on point-of-sale credit, best known for its buy-now, pay-later (BNPL) products like Zip Money and Zip Pay. Founded in 2013 with ambitions to disrupt the credit card sector, Zip has quickly broadened its reach and according to its most recent public description, now operates in 12 countries spanning Australia, New Zealand, and the US.

The BNPL sector is famously competitive, and after a hot run a few years back, many of the major players have struggled with profitability and regulation risks. For Zip, several fundamentals stand out:

• Market cap of $2.69 billion places it firmly in the mid-cap camp.
• Its P/E ratio is 23.84, which is relatively moderate for a tech business—if earnings can keep growing.
• Zip pays no dividend (Dividend Yield 0.00%), consistent with its growth focus.
• Year-to-date (YTD) Return is deeply negative at -34.4%, suggesting a tough period for the stock price.

Zip’s business now spans several countries and it continues to target both consumers and merchants with its fee-based and interest-free payment services. With net positive EPS reported ($0.091 per share), there are signs that Zip is moving toward profitability, but ongoing sector pressure and regulatory scrutiny may weigh on near-term growth.

The case for WiseTech

WiseTech Global is a heavyweight in Australian technology, specialising in logistics and supply chain software. Its main product, CargoWise One, helps some of the world’s largest freight companies—including Toll and DHL—manage logistics operations efficiently. Founded in 1994, WiseTech has spent decades building its global presence, now supporting customers across all continents according to its most recent profile.

Key numbers for WiseTech:

• It boasts a much larger market cap of $11.31 billion, showing its global scale and sector influence.
• The P/E ratio is higher at 44.0, reflecting considerable market optimism and perhaps the premium placed on scalable software.
• Dividend Yield is modest at 0.65%, but importantly, all dividends are fully franked (Franking 100%), which is attractive to many Australian investors.
• Earnings per share come in at $0.485, with a dividend per share of $0.22.
• Like Zip, the stock has underperformed in 2026 so far: the YTD Return is a challenging -50.6%.

While its business is less consumer-facing and more focused on enterprise software than Zip, WiseTech operates in a logistics sector where efficiency and global reach are increasingly prized. Regular fully franked dividends show WiseTech’s ability to return capital to shareholders, even as it continues to chase global growth.

Valuation comparison

With both companies squarely in the tech sector but operating different models, their fundamental ratios tell an interesting story:

Metric	Zip	WiseTech
Market Cap	$2.69 billion	$11.31 billion
P/E Ratio	23.84	44.00
Dividend Yield	0.00%	0.65% (fully franked)
Earnings per Share	$0.091	$0.485
Dividend per Share	N/A	$0.22

It’s worth noting that WiseTech’s higher P/E ratio suggests much loftier market expectations for growth, even as its recent share price has stumbled. Only WiseTech offers a (small, franked) dividend at present. Zip’s more modest P/E may indicate more downbeat expectations, but it also signals less pricing in of future growth (or potentially more risk).

Recent share price momentum

Comparing price movements as of 9 October 2026:

• Zip closed at $2.16, up 3.85% for the day, but down sharply YTD (-34.4%). Recent volatility was high, with a double-digit one-day fall in late September.
• WiseTech closed at $33.63, up 4.25% for the day, but carries a steeper YTD decline of -50.6%. In the late September to early October period, it also displayed big swings but managed some strong daily rebounds.

Which is the better buy?

Looking at Zip vs WiseTech shares, I’d lean toward WiseTech as the stronger growth prospect from here—despite its recent underperformance and high valuation. WiseTech operates in a global market that’s only becoming more vital with the rise of e-commerce, supply chain digitalisation, and global trade complexity. While the P/E multiple (44x) is steep, WiseTech combines positive earnings, a consistent (if modest) dividend, full franking, and a broad, defensive customer base. That’s a solid foundation for recovery and future growth if the company executes.

Zip, while interesting as a potential turnaround, remains heavily exposed to the fortunes of the BNPL sector—a space facing consumer fatigue, intensifying competition, and ongoing regulatory risk. Its lack of dividend and sharply negative share price momentum make it a more speculative play in my view.

Neither stock has delivered great returns YTD. But for long-term growth, my pick would be WiseTech. I think its sticky enterprise relationships and recurring revenue could underpin a stronger rebound and compounding power over time, whereas Zip feels like a riskier bet whose story will need a major catalyst to reignite.

The post Zip vs WiseTech: Which is the superior ASX growth stock today? appeared first on The Motley Fool Australia.

More reading

• 3 dirt cheap ASX shares I think are undervalued today
• Here are the top 10 ASX 200 shares today
• Nextdc vs WiseTech: Which ASX tech stock is better for a 25 year old investor?
• Down more than 50%, are Zip shares too cheap to ignore?
• These are the 10 most shorted ASX shares

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 positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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.

Cheap ASX shares can be deceptive.

Sometimes a low valuation is simply the market recognising that earnings are about to fall. Other times, though, the share price does not seem to reflect just how much a business could be earning a few years from now.

That second group is what interests me.

I have found three ASX shares where the forward numbers look increasingly difficult to ignore. They operate in completely different industries and come with very different risks, but I think all three could be worth considerably more if current earnings expectations prove even broadly correct.

The first one is already reasonably priced today. Look another year or two ahead, though, and the valuation starts to look extraordinary.

Northern Star Resources Ltd (ASX: NST)

Northern Star shares are trading around $24.76 at the time of writing.

On FY27 earnings alone, I would not necessarily describe that price as dirt cheap.

Consensus estimates point to earnings per share (EPS) of $1.35, putting the gold miner on a forward price-to-earnings (P/E) ratio of around 18 times.

That looks reasonable enough for one of Australia’s largest gold producers. But the investment case changes materially when I look further ahead.

Analysts expect EPS to jump to $2.41 in FY28 and $3.31 in FY29. At today’s share price, those estimates imply P/E ratios of roughly 10 times and 7.5 times, respectively.

That is where Northern Star starts to look seriously undervalued to me.

The dividend outlook moves in the same direction. Consensus forecasts point to dividends per share of 51.6 cents in FY27, 73 cents in FY28, and 86.2 cents in FY29. At the current share price, the FY29 forecast would represent a dividend yield of around 3.5%.

Of course, there is an important reason the market may be reluctant to fully price those estimates in today. Northern Star sells gold, and the gold price will have a major influence on whether those earnings forecasts are achievable.

If the gold price remains higher for longer and production growth plans are delivered, I think it is very likely there will be a large increase in Northern Star’s profits.

But it is important to acknowledge that if gold falls sharply instead, those EPS estimates could come down just as quickly.

That commodity sensitivity is the main risk I would keep in mind. But for investors who want gold exposure and are comfortable with that uncertainty, I think the potential reward is substantial.

An ASX share trading at around 7.5 times FY29 forecast earnings does not need everything to go perfectly to get my attention.

And Northern Star is only the first of my three picks.

Universal Store Holdings Ltd (ASX: UNI)

My second pick comes from a completely different corner of the market.

Universal Store shares are trading around $8.04 at the time of writing, and I think the current valuation leaves plenty of room for the business to keep delivering.

The retailer sits behind brands including Universal Store, Perfect Stranger, and Thrills, giving it exposure to younger consumers across fashion and lifestyle categories.

Consensus estimates currently point to EPS of 57.8 cents in FY27, rising to 63.2 cents in FY28, and 68.9 cents in FY29.

At $8.04, that puts the shares on roughly 14 times FY27 earnings, falling to around 13 times FY28 earnings and less than 12 times FY29 earnings. I think that is a low price to pay if Universal Store can continue growing profits at the rate analysts expect.

The dividend makes the valuation even more interesting. Consensus forecasts point to dividends of 45 cents per share in FY27, 48 cents in FY28, and 53 cents in FY29.

At today’s price, the FY27 estimate represents a dividend yield of around 5.6%. By FY29, that potential yield rises to approximately 6.6%.

But retail shares obviously come with risks. Consumer spending can weaken, fashion preferences can change quickly, and a retailer still has to get its product, pricing, inventory, and store strategy right.

But at the current valuation I am not being asked to pay a growth-stock multiple for Universal Store. At around 14 times FY27 earnings, I think there is already a reasonable amount of caution built into the price.

If the company can keep lifting EPS towards 69 cents over the next few years while maintaining a strong dividend, I think the current share price could ultimately prove too low.

Zip Co Ltd (ASX: ZIP)

Zip is probably the highest-risk pick of these ASX shares, but it may also offer the most obvious valuation upside.

The shares are trading around $2.23 at the time of writing. Consensus forecasts point to EPS of 15 cents in FY27, 18 cents in FY28, and 22 cents in FY29. That means investors are paying around 15 times FY27 earnings today.

Already, I think that looks quite reasonable for a business expected to grow profits strongly.

But again, the outer years are where things become much more interesting. The P/E ratio falls to around 12.4 times FY28 earnings and just over 10 times FY29 earnings if the forecasts are achieved.

Meanwhile, EPS would increase by almost 47% between FY27 and FY29. That combination is what makes Zip look undervalued to me.

The company does still have plenty to prove. I want to see Zip continue taking a greater share of the payments market in the United States and Australia, while growing transaction volumes and its customer base.

Just as importantly, that growth needs to be disciplined. Adding users is not particularly valuable if bad debts rise too quickly alongside them. Credit quality needs to remain under control as the business gets larger.

If Zip can balance those two sides of the equation, growing payment volumes while maintaining sensible lending standards, I think the earnings forecasts become much easier to believe.

And if the company eventually earns 22 cents per share while continuing to grow, I struggle to see why investors would permanently value it at around 10 times earnings.

That does not mean the path will be smooth. Zip shares have been extremely volatile before, and sentiment towards buy now, pay later businesses can change quickly.

But at the current price, I think the valuation gives me enough room to accept that uncertainty.

Foolish takeaway

I think the market is being too cautious about what these businesses could earn over the next few years.

There is certainly some uncertainty surrounding all three, but I believe their growth prospects make the current valuations hard to ignore.

I’d be happy to buy at today’s prices and give them time to prove their worth.

The post 3 dirt cheap ASX shares I think are undervalued today appeared first on The Motley Fool Australia.

More reading

• Evolution Mining vs Northern Star Resources: Which gold stock is better for a $1,000 investment?
• Here are the top 10 ASX 200 shares today
• Down more than 50%, are Zip shares too cheap to ignore?
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Grace Alvino has positions in Northern Star Resources. 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 Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Scentre Group vs GPT Group shares: Which ASX REIT is the better buy?

If you’re weighing up Scentre Group (ASX: SCG) and GPT Group (ASX: GPT) shares, you’re not alone. Both are heavyweights in the Australian real estate investment trust (REIT) sector, and each brings something different to the table. For investors keen on passive income and exposure to commercial property, these ASX REITs offer a compelling head-to-head — especially with both now trading below where they started the year. Which is more likely to beat the ASX 200 from here? Let’s take a closer look.

The case for Scentre Group

Scentre Group is best known for owning and operating 42 Westfield shopping centres across Australia and New Zealand, including many of the region’s flagship retail destinations. Formed in 2014 from the restructure of Westfield Group, Scentre has built a diversified, marquee portfolio with more than $51 billion in retail assets under management, as of its company profile. The group’s strategy centres on anchoring with major retail tenants, while attracting a wide mix of specialty retailers, entertainment, and lifestyle operators.

Several fundamentals jump out. Scentre’s market cap stands at $18.04 billion, putting it among the ASX’s largest landlords. The shares trade on a price-to-earnings (P/E) ratio of 9.17, with an earnings per share (EPS) of $0.376 and a dividend yield of 5.25%. Year to date, though, the share price has lagged, dropping 13.5%. On the dividends front, Scentre’s most recent payments show little franking, and its last interim payout was $0.0922 per share.

The case for GPT Group

GPT Group brings a broader property focus. One of Australia’s oldest listed trusts, GPT’s $8.72 billion market cap reflects a substantial, though smaller, footprint than Scentre. GPT owns and manages a spread of retail, office, and logistics assets with funds under management topping $36 billion, according to its most recent public description. Uniquely among large ASX REITs, GPT has steadily grown its industrial property portfolio — roughly 28% as of its last update — which could position it well if e-commerce and warehousing trends persist.

GPT currently sits on a P/E multiple of 8.29 and EPS of $0.549. Its dividend yield is a touch higher than Scentre’s at 5.33%, with the last interim dividend coming in at $0.1225 per share (again, with no franking). Like Scentre, GPT’s shares have struggled so far this year, down 13.8% year-to-date.

Valuation comparison

Both Scentre Group and GPT Group are trading at relatively similar valuation multiples, but there are a few notable differences worth spelling out:

	Scentre Group	GPT Group
Market Cap	$18.04b	$8.72b
P/E Ratio	9.17	8.29
Dividend Yield	5.25%	5.33%
Dividend per Share	$0.18	$0.24
EPS	0.376	0.549
Year-to-Date Return	-13.5%	-13.8%

Note: GPT’s P/E and EPS numbers are mathematically consistent, but Scentre’s are less so, suggesting the P/E may be based on an alternative earnings measure.

Scentre is the bigger company by market capitalisation and has a marginally higher P/E. GPT edges ahead slightly on dividend yield and dividend per share, with both offering yields well above cash rates — a big draw for income-focused investors. Both have paid unfranked dividends lately, so franking isn’t a distinguishing factor.

Recent share price momentum

Let’s see how both performed recently. Using closing prices from 9 October 2026 — the most recent shared date in the data:

• Scentre closed at $3.45 per share, up 0.29% on the day, but still down 13.5% year-to-date.
• GPT closed at $4.55 per share, up 1.11% on the day, with a yearly decline of 13.8%.

While both stocks have suffered through the year, GPT showed a slightly stronger daily move on this shared date. Overall, though, they’ve tracked a remarkably similar negative trend during 2026, each surrendering well over 13% of their value since the start of the year.

Which is the better buy?

For my money, I’d lean towards GPT Group for a shot at outperforming the ASX 200 from here. Both businesses offer similar dividend yields and have taken a beating this year, but GPT’s portfolio mix could be a quiet advantage, particularly its growing industrial and logistics component. That gives GPT a bit more exposure to property trends beyond retail shopping centres — an area that’s seen pockets of resilience and growth recently.

GPT also scores slightly better on headline valuation metrics: its P/E multiple is lower, its dividend yield is marginally higher, and its EPS is well ahead of Scentre’s. Scentre is by far the larger landlord and operator of blue-chip retail assets, but the challenging retail backdrop and comparable yield make GPT look more interesting to me on risk/reward grounds right now.

Of course, both are trading well below their 2026 highs — not unusual for REITs in a rising interest rate environment. As ever, investors looking for outperformance versus the ASX 200 will want to keep an eye on further shifts in rates and property values. But today, my pick would be GPT Group: it’s cheaper, offers a better income stream, and has that diversified edge that could help it rebound sooner.

The post Scentre Group vs GPT Group: Which ASX REIT is more likely to beat the market? appeared first on The Motley Fool Australia.

More reading

• GPT Group vs Dexus: Which ASX REIT is better value right now?
• 5 buy-rated shares in the ASX real estate sector to consider
• 2 ASX blue-chip shares offering big dividend yields
• How much superannuation do I need to earn $70,000 per year in passive income?

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.

It was a volatile and barely successful day for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Tuesday.

After yesterday’s strong start to the trading week, investors were far more sober this session, with the ASX 200 starting the day in negative territory and only recovering in the late afternoon. By the time trading wrapped up, the index had advanced a minuscule 0.008% to finish at 8,783.9 points.

This middling day for the ASX came after a mixed start to the American trading week on Wall Street this morning.

The Dow Jones Industrial Average Index (DJX: .DJI) managed to crawl upwards, gaining 0.38%.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) wasn’t so lucky and dropped 0.44%.

Let’s get back to the local markets now and take stock of what the various ASX sectors were doing this Tuesday.

Winners and losers

Despite the market’s flat day, we had plenty of both winners and losers.

Leading the latter were tech stocks. The S&P/ASX 200 Information Technology Index (ASX: XIJ) was slammed, tanking by 4.37%.

Mining shares weren’t popular either, with the S&P/ASX 200 Materials Index (ASX: XMJ) plunging 2.03%.

Gold stocks were no safe haven either. The All Ordinaries Gold Index (ASX: XGD) ended up cratering by 1.26%.

Real estate investment trusts (REITs) were a little tamer, though, as you can see from the S&P/ASX 200 A-REIT Index (ASX: XPJ)’s 0.31% dive.

Healthcare shares were our final losers this Tuesday. The S&P/ASX 200 Healthcare Index (ASX: XHJ) saw its value corrected by 0.1%.

Let’s turn to the winners now. Leading the gains were utilities stocks, with the S&P/ASX 200 Utilities Index (ASX: XUJ) roaring 1.8% higher.

Financial shares had a great day too. The S&P/ASX 200 Financials Index (ASX: XFJ) surged 1.39% this session.

Consumer staples stocks also ran hot, illustrated by the S&P/ASX 200 Consumer Staples Index (ASX: XSJ)’s 1.31% jump.

Energy shares were in demand as well. The S&P/ASX 200 Energy Index (ASX: XEJ) soared up 1.22% today.

Next, we had consumer discretionary stocks, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) enjoying a 0.91% bounce.

Industrial shares were sent higher, too. The S&P/ASX 200 Industrials Index (ASX: XNJ) finished the day 0.23% ahead of where it started.

Finally, communications stocks got over the line, evidenced by the S&P/ASX 200 Communication Services Index (ASX: XTJ)’s 0.02% inch higher.

Top 10 ASX 200 shares countdown

Topping the index charts this Tuesday was energy generator and retailer AGL Energy Ltd (ASX: AGL). AGL shares had a strong session, shooting 4.09% higher to close at $8.90.

This sizeable move occurred despite there being no news or announcements from the company.

Here’s how the other top stocks tied up at the dock:

ASX-listed company	Share price	Price change
AGL Energy Ltd (ASX: AGL)	$8.90	4.09%
Bank of Queensland Ltd (ASX: BOQ)	$6.69	2.92%
Origin Energy Ltd (ASX: ORG)	$11.55	2.76%
ARB Corporation Ltd (ASX: ARB)	$17.34	2.54%
Commonwealth Bank of Australia (ASX: CBA)	$154.50	2.32%
Lovisa Holdings Ltd (ASX: LOV)	$24.40	2.31%
Judo Capital Holdings Ltd (ASX: JDO)	$0.91	2.25%
Bendigo and Adelaide Bank Ltd (ASX: BEN)	$10.60	2.22%
Insurance Australia Group Ltd (ASX: IAG)	$8.42	2.18%
Lottery Corporation Ltd (ASX: TLC)	$5.22	2.15%

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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• 5 things to watch on the ASX 200 on Tuesday
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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 ARB Corporation, Lovisa, and The Lottery Corporation. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool Australia has recommended ARB Corporation, Lovisa, and The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX dividend shares are a fantastic way for income-focused investors to earn an easy passive income.

By buying shares in one of these companies, you’re able to reap the benefits of a regular dividend payment, paid out annually, twice per year, or possibly even each month.

And there are several options available depending on what yield you want to earn and the risk appetite of your portfolio.

Here are three great ASX dividend shares that each yield 7%, or even more.

Atlas Arteria Ltd (ASX: ALX)

When it comes to global road toll operators and developers, Transurban Group Ltd (ASX: TCL) is a popular choice, but Atlas Arteria does a very similar thing. And it pays its shareholders a much higher yield, too.

I like toll road operators because they’re generally considered defensive shares, making them a great long-term income investment. 

Atlas Arteria owns, operates, and develops five toll roads in France, Germany, and the United States. The company’s main asset is an estimated 31% stake in Autoroutes Paris-Rhin-Rhone, or APRR, which owns concessions to toll more than 2,300 kilometres of motorways in eastern France. The company also wholly owns the Dulles Greenway toll road in the US state of Virginia.

Atlas Arteria operates essential infrastructure, often under long-term contracts, which means it can usually generate a strong and stable inflation-linked cash flow. 

The company has consistently paid its shareholders 40 cents per unit, unfranked every year – one 20-cent payment in April, and another in October – dating back to 2022. At the time of writing, this translates to a dividend yield of around 10.5%.

Premier Investment Ltd (ASX: PMV)

Premier Investments is an Australian company that owns and operates specialty retail brands, including Peter Alexander, Smiggle, and a stake in Breville Group Ltd (ASX: BRG). The company underwent a major restructure in 2025, merging its apparel brand business into Myer Holdings Ltd (ASX: MYR) and distributing stakes to streamline its business into its existing core brands.

In August, the company paid its first dividend to shareholders following the restructure. It paid a 45-cent interim dividend, fully-franked. At the time of writing, that implies a forward dividend yield of 7.2%.

Not only does the ASX dividend company pay its shareholders a decent dividend distribution, but brokers also widely expect the share price to climb a lot higher over the next 12 months. And that means its payout will be higher too.

Market Index data shows that all brokers have a strong buy rating on the shares, and the $16.15 average target price implies an upside of around 30% at the time of writing.

Peet Ltd (ASX: PPC)

Peet develops and markets master-planned residential communities as well as medium-density townhouses and apartments across Australia. The company was founded in 1895 and is among Australia’s largest ASX-listed land developers.

The company is a residential land developer rather than a landlord, which means its income is tied to cyclical property development cycles rather than a predictable, recurring income like Atlas Arteria. But it’s worth noting that cyclical companies often outperform during times of economic recovery.

The company has a long history of paying dividends to its shareholders, dating back to 2005.

In FY26, the company paid a total 13-cent dividend – a 6.5-cent dividend in March, and another 6.5-cent dividend last month, both fully franked – to its shareholders.

At the time of writing, that implies a dividend yield of 8.3%.

The post 3 great ASX dividend shares with 7%+ yields appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target $2,000 a week in passive income
• If I invest $15,000 in Atlas Arteria shares, how much would I get in dividends?
• Here are the top 10 ASX 200 shares today
• Atlas Arteria flags French tax hikes may impact toll road revenues
• Buy, hold, sell: Premier Investments, New Hope, Xero shares

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 Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended Myer and Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX shares have fallen into the red in Tuesday lunchtime trade, driven by a sell-off of mining and technology shares, and higher oil and gold prices.

Here are four ASX shares that brokers expect to outperform broader indexes over the next 12 months.

Centaurus Metals Ltd (ASX: CTM)

Centaurus shares have slumped around 6% in Tuesday afternoon trade to 40 cents apiece. The shares have fallen 14% over the past months, and they’re now just over 30% lower year to date.

The ASX shares jumped 5% on Monday after the company confirmed that its offtake agreement with Glencore, announced to the ASX on 16 March 2026, remains binding and effective. In a statement to the ASX, Centaurus said that Glencore has been kept up to date on the progress of the Jaguar Project development and has now confirmed its intention to maintain the binding offtake agreement on the previously announced terms.

On the 2nd of October, Centaurus said it was at an advanced stage of negotiations and final documentation for additional offtake and strategic funding for the Jaguar Nickel Project. 

It looks like investors were thrilled with the update. It’s likely that today’s sell-off is the result of investors taking their gains off the table after a subdued year. At the same time, the ASX nickel shares have suffered continued headwinds from soft sentiment in the nickel sector.

But Market Index data shows that the experts are optimistic that we’ll see a turnaround in the ASX shares this year. All brokers have a strong buy rating. The $1.09 average target price implies a potential 169% upside, at the time of writing.

Light & Wonder Inc (ASX: LNW)

Light & Wonder shares are up around 1% on Tuesday afternoon, trading at $114.56 per share. It’s been a volatile ride for the shares over the past 12 months, and they’ve swung anywhere between $96.79 and $193 a piece. They’re now down 27% year to date and 8% lower than a year ago.

The company has been reshaping its business in recent years, including a focus on its recurring revenue and higher-quality earnings. 

Light & Wonder’s latest second-quarter FY26 earnings results suggest the reshape is starting to translate into revenue. The company posted a 2% increase in revenue and a 26% increase in net income year on year. 

It looks like investors are still wary about whether the company’s earnings can keep improving. But the experts are confident a growth period is coming. Market Index data shows all brokers have a strong buy rating on the shares. The $196.20 average target price implies an upside of around 71%, at the time of writing.

Generation Development Group Ltd (ASX: GDG)

Generation Development Group shares are down around 1% at the time of writing, to $2.70 a piece. The diversified financial services company’s shares have climbed around 4% higher from a two-year low recorded late last week, but they’re still down 54% for the year to date.

There hasn’t been any price-sensitive news out of the company to explain the ongoing decline. The sell-off is most likely the result of a continued broad-based rotation away from financial shares following the latest interest rate increase, higher inflation figures, and sky-high bond yields.

But the company believes that it is well-placed to benefit from strong structural tailwinds from the superannuation, retirement, and managed account markets in FY27. This is due to recent superannuation legislation changes and an aging demographic.

Brokers are bullish too. Market Index shows that all brokers have a strong buy rating on the ASX shares, and the $5.62 average target price implies an upside of around 108% at the time of writing.

CAR Group Ltd (ASX: CAR)

CAR Group shares are up around 0.5% in Tuesday afternoon trade to $22.67 per share. The increase is great news for investors after the company, which runs online global marketplaces for cars, motorcycles, boats, and commercial vehicles, tumbled 25% over the past two months.

The company has been hit by broad market volatility since mid-August. And many investors have also been taking their gains off the table after a strong rally following the company’s FY26 results announcement.

As part of the announcement, CAR Group said it expects 11% to 14% revenue growth and 10% to 13% adjusted EBITDA growth in FY27. It is also planning for high single-digit revenue growth in Australia and double-digit growth in North America, Latin America, and Asia.

Investors still look to be a little reserved about the company’s outlook. But brokers are bullish that the ASX shares could jump higher over the next 12 months. After a strong sell-off, Market Index data shows all brokers have a strong buy rating on the shares. The $34.07 average target price implies an upside of around 50% at the time of writing.

The post 4 ASX shares tipped by brokers to return 50% to 169% appeared first on The Motley Fool Australia.

More reading

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• I screened the ASX for quality and value. These 5 shares stood out
• Here are the top 10 ASX 200 shares today
• NextDC, Generation Development, Fortescue shares hit 52-week low. Can they rebound?
• 3 ASX shares tipped to fly 109% to 322% higher

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 Light & Wonder Inc. The Motley Fool Australia has recommended CAR Group Ltd, Generation Development Group, and Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Demand for data centres is growing rapidly as businesses invest more in cloud computing and artificial intelligence (AI).

And one share on the S&P/ASX 200 Index (ASX: XJO) is positioning itself to benefit from that spending, with a substantial amount of future business already secured.

I think its long-term prospects look very promising despite what its recent share price weakness might suggest.

Here’s why.

NEXTDC Ltd (ASX: NXT)

NEXTDC is one of Australia’s leading data centre operators, providing the infrastructure that businesses need to store and process enormous amounts of information.

I like its position in the market because building data centres is becoming increasingly complicated.

Companies need access to suitable locations, reliable electricity supplies, and high-quality connectivity. NEXTDC has spent years developing these capabilities and establishing relationships with major customers.

With demand for AI and cloud services continuing to increase, I believe the company has a significant opportunity to expand its operations.

And there is already evidence of that growth. The ASX 200 share generated underlying EBITDA of $216.7 million in FY25, which increased 15% to $248.8 million in FY26.

Management is now guiding for underlying EBITDA of between $385 million and $410 million in FY27. That represents potential earnings growth of approximately 55% to 65% in just one year.

But I think the longer-term outlook is even more exciting.

NEXTDC has secured substantial customer commitments for data centre capacity that is still being developed.

As those facilities become operational and customers start paying for their contracted capacity, the company expects its existing contracts to eventually support more than $1 billion in annualised contracted EBITDA.

That is approximately four times what NEXTDC generated in FY26, demonstrating just how much larger the business could become in the not-so-distant future.

Why is this ASX share falling?

Despite this outlook, this ASX 200 share has fallen to a 52-week low of $9.75 on Tuesday, around 42% below its 52-week high of $16.78.

I suspect concerns about the enormous investment required across the AI infrastructure industry are contributing to the weakness.

The recent failed IPO of Firmus Technologies has also raised questions about investor confidence in the sector.

NEXTDC faces its own challenges. Building new facilities requires substantial capital, and construction delays, rising costs, or funding pressures could affect its growth plans.

Nevertheless, I think the strength of its contracted demand provides some reassurance.

Customers have already committed to substantial future capacity, giving NEXTDC a clearer growth path than many companies hoping to benefit from the AI boom.

Foolish takeaway

I think NEXTDC shares are a strong buy at around $9.75.

The next few years will involve substantial investment and execution, but the earnings potential is becoming increasingly clear.

For me, the prospect of this ASX 200 share growing into a much larger business makes today’s share price an opportunity I would be happy to take.

The post Why I think this ASX 200 share at a 52-week low is a strong buy appeared first on The Motley Fool Australia.

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• NextDC, Generation Development, Fortescue shares hit 52-week low. Can they rebound?

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.

Energy stocks have been in focus over the past few months, with the conflicts in the Middle East and Ukraine sending oil prices higher and raising broader concerns about energy supplies.

Today I’m looking at two very different energy stocks – a refiner and a uranium company – which brokers have tipped for solid share price gains over the next 12 months.

Let’s have a look at who they like.

NexGen Energy Ltd (ASX: NXG)

NexGen is a Canada-focused uranium project developer that is focused on developing the Rook 1 Project in the southwestern Athabasca Basin of Saskatchewan.

The project’s Arrow deposit has a mineral resource of 257 million pounds of uranium, and the company recently said it had intersected numerous other mineralised zones adjacent to Arrow, which will be subject to further exploration to assess their economic potential.

NexGen has recently won a number of key approvals for the project, including to establish a temporary airstrip and to expand the exploration camp.

Broker Barrenjoey has just started covering NexGen shares and has an overweight rating on the stock with a price target of $14.80, compared to the current price of $12.24.

The broker said Rook was a “very high-grade deposit”, with first production expected in 2029-30.

They said the company could have the option to expand total production from 234 million pounds of uranium to 333 million pounds through the development of nearby resources.

Barrenjoey said the long-term outlook for the uranium price was strong, with their forecast of US$100 per pound higher than consensus estimates of US$87 per pound.

Viva Energy Ltd (ASX: VEA)

Viva Energy shares are up more than 80% over the past 12 months, but Macquarie’s analyst team believes they still have a way to go.

Macquarie has just released a new research note on Viva with an overweight recommendation and a price target of $4 compared to the current price of $3.16.

They are also forecasting a strong dividend yield of 8.1% this year, falling to 4.7% next year.

Macquarie has increased its forecast for Viva’s refining margins, saying the market remains tight despite a gradual recovery in trade through the Strait of Hormuz.

They said refining tailwinds were likely to persist through CY27, although soft retail fuel margins appear to be a larger drag in the second half of 2026.

Macquarie said tobacco sales were improving and new management strategies around product range and rotation were likely having some early effect.

Viva Energy is valued at $5.26 billion.

The post 2 ASX energy players that could return 20% to 30% over the next year appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Santos vs Viva Energy: Which ASX energy stock gets my vote today?
• Viva Energy, Codan, AMP shares reach 52-week highs: How much higher can they go?

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

Evolution Mining vs Northern Star Resources shares

Australia boasts some world-class gold stocks, but if you’re mulling a $1,000 investment, should you go for Evolution Mining Ltd (ASX: EVN) or Northern Star Resources Ltd (ASX: NST)? Both are ASX giants in the gold space, each with their own strengths and quirks. Here’s my take on how Evolution Mining vs Northern Star Resources shares stack up for an investor today.

The case for Evolution Mining

Evolution Mining is one of Australia’s biggest listed gold miners, with a portfolio spanning both domestic and Canadian operations. Its key projects include the Cowal mine in New South Wales—often flagged as Evolution’s main earnings engine—alongside assets in Queensland, Western Australia, and Canada.

In terms of the numbers, a few points stand out. First, Evolution Mining trades on a P/E ratio of 18.07, which is noticeably lower than Northern Star’s, making it appear more attractively valued relative to earnings. Its dividend yield sits at 3.12%, also above its peer—a sign of a shareholder-friendly payout policy. Every dividend in recent years (and those forecast) is fully franked, which can be a draw for Aussie investors looking to maximise after-tax returns. The company’s year to date (YTD) share price return is a positive 6.94%. That positive momentum, combined with a market cap of $26.89 billion, underlines Evolution’s strong standing in the local resources scene.

Evolution’s consistent 100% franking on dividends and a steady payout track over the past decade make it a solid choice for those seeking reliable income streams.

The case for Northern Star Resources

Northern Star Resources is another major Australian gold producer with a global reach, owning mines across Western Australia and North America. The company’s flagship production centres are at Kalgoorlie and Yandal (WA), and Alaska’s Pogo goldfields. Northern Star has grown rapidly through clever acquisitions and puts plenty of focus on ongoing exploration to keep its pipeline healthy.

Looking at the data, Northern Star boasts a market cap of $34.75 billion—making it the larger player in this comparison. Its stated earnings per share (EPS) of 1.157 is quite a bit ahead of Evolution’s (though see the note below about EPS/P/E calculation consistency). However, the P/E ratio is 21.08, higher than Evolution’s, so the market is effectively paying more for each dollar of Northern Star’s earnings.

On the dividend front, the current yield is 2.26%, with a mixed history for franking—recent dividends have shifted between 0% and 100% franking, whereas Evolution’s are uniformly fully franked. Notably, despite higher total dividends per share in the most recent period, the actual yield trails Evolution due to the higher share price. The company’s share price is down 6.7% YTD, indicating some recent underperformance versus Evolution.

Valuation comparison

Here are the key valuation and yield metrics side-by-side:

	Evolution Mining	Northern Star Resources
Market Cap	$26.89 billion	$34.75 billion
P/E Ratio	18.07	21.08
Dividend Yield	3.12%	2.26%
Dividend per Share	0.42	0.55
Franking	100%	Varies (recently mixed 0%/100%)
Earnings per Share (EPS)	0.660	1.157
YTD Return	6.94%	-6.70%

Note: Northern Star Resources’ reported P/E ratio may be based on a different earnings measure (e.g. underlying or forward earnings) than the EPS figure shown, which is why they may appear inconsistent.

Which is the better buy?

Both Evolution Mining and Northern Star Resources are established, profitable, and highly regarded gold stocks on the ASX. For my $1000 today, though, I’d lean toward Evolution Mining. Here’s why: Evolution offers a meaningfully higher dividend yield (3.12% vs 2.26%), with fully franked payments—maximising take-home value for local investors. Its current P/E ratio is lower, which might indicate better value compared to Northern Star at current prices. Evolution has also delivered positive share price momentum this year, while Northern Star has gone backwards. While Northern Star is the larger of the two and boasts higher stated EPS, the mixed franking and higher P/E make it less appealing at the moment, especially with its 2026 share price still lagging. For ASX investors chasing strong potential returns and fully franked income in gold, my pick would be Evolution Mining on today’s numbers.

The post Evolution Mining vs Northern Star Resources: Which gold stock is better for a $1,000 investment? appeared first on The Motley Fool Australia.

More reading

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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 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.

The S&P/ASX Small Ords Index (ASX: XSO) is down 14% in the calendar year to date (YTD).

Meanwhile, the S&P/ASX All Ords Index (ASX: XAO) has edged 1% lower in 2026 so far.

Let’s check out some new buy recommendations from three experts on three ASX small-cap shares.

Challenger Gold Ltd (ASX: CEL)

The Challenger Gold share price is $1.46, down 1.9% today and down 51% over 12 months. 

Challenger is developing the Hualilan gold project in Argentina.

Philippe Bui from Medallion Financial Group has a buy rating on this ASX small-cap mining share. 

On The Bull this week, Bui said: 

A 35,000 metre drilling program provides near term catalysts through resource growth and mine-plan optimisation. Management is targeting commercial production from this operation by early 2029.

We see potential for a re-rating as engineering, approvals and financing progresses. CEL is suitable for investors who are comfortable with higher risk.

Janus Electric Holdings Ltd (ASX: JNS)

The Janus Electric share price is 52 cents, down 2.8% today and up a staggering 420% over 12 months. 

Janus is a heavy transport electrification company.

It converts diesel prime movers into electric vehicles using a patented zero-carbon battery-swap system in Australia and the US.

Tom Fairchild from Lazarus Capital Partners has a speculative buy call on this ASX small-cap utilities share. 

He explained: 

The macro case is compelling as Australia imports about 87 per cent of its diesel. Freight transportation uses almost half of the imported diesel. Electrifying trucks means owners don’t have to rely on imported diesel.

Conversions appeal in terms of fuel savings over the longer term and reduced emissions.

Revenue is growing, but the company reported a $9.1 million statutory loss after tax in full year 2026. However, the share price has risen from 14 cents on July 1 to trade at 69 cents on October 8.

The outlook appears prosperous, but a speculative buy at these levels.

Artrya Limited (ASX: AYA)

The Artrya share price is $3.10, up 1.6% today and up 9% over 12 months. 

Artrya is a commercial-stage medical technology company.

Mark Gardner of MPC Markets has a buy rating on this ASX small-cap healthcare share. 

Recently on The Bull, Gardner said: 

Artrya is a commercial stage medical technology company, providing exposure to AI-led coronary imaging as the US commercial roll-out begins. The company’s Salix platform reads coronary CT scans and flags patients at risk of a heart attack.

The US Food and Drug Administration has cleared the Salix coronary plaque module.

The company is establishing a platform for recurring revenue growth, although revenue is relatively small at this stage. US foundation partners have converted to paying contracts.

The recent share price sell-off has created an appealing entry level prior to the next US hospital announcement.

The post 3 ASX small-cap shares to buy amid sector weakness: experts appeared first on The Motley Fool Australia.

More reading

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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.