Author: openjargon

While it is disappointing to see ASX shares fall significantly from their highs, it can create opportunities for investors.

That does not mean every decline is a buying opportunity. Sometimes the market is reacting to real and lasting challenges.

But in other cases, I think sentiment can overshoot.

Here are three ASX shares that have been under pressure but could have the potential to rebound strongly over time.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster has seen its share price fall heavily over the past year, which reflects both a slowdown in consumer spending and changing expectations around growth.

The business operates in online furniture and homewares, which is naturally tied to housing activity and discretionary spending.

That creates some short-term uncertainty. But I think it is worth looking at the bigger picture.

The shift toward online retail is still playing out, and Temple & Webster remains one of the leading pure-play operators in that space in Australia.

If consumer conditions stabilise and housing-related activity improves, I think there is scope for the business to regain momentum.

Megaport Ltd (ASX: MP1)

Megaport is another name that has been through a significant reset.

Its share price has been volatile, reflecting both its growth profile and the challenges of scaling a global network business.

What I find interesting is the underlying role it plays. Megaport connects businesses to cloud infrastructure and data centres, which are becoming increasingly important as digital demand grows.

The company has also been expanding its offering, including moving into adjacent areas like compute and GPU services. That broadens its opportunity set.

If execution improves and growth continues, I think there is potential for sentiment to shift.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa’s share price has also pulled back, despite the business continuing to expand globally.

This is a fast-fashion jewellery retailer with a strong track record of store rollout and international growth.

What stands out to me is the scalability. The company continues to open new stores across multiple regions, and its model has proven to be repeatable in different markets.

Short-term pressures, such as cost inflation or softer consumer spending, can weigh on performance.

But over a longer period, I think the growth opportunity remains significant.

Foolish Takeaway

Beaten-down ASX shares can be risky, but they can also offer meaningful upside if the underlying business remains intact.

Temple & Webster, Megaport, and Lovisa have seen sentiment weaken while still operating in areas with long-term potential.

For me, that is often where the possibility of a strong rebound begins.

The post 3 beaten-down ASX shares that I think could rebound strongly appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• 3 ASX shares tipped to grow 100% or more in the next 12 months
• Why Bell Potter just downgraded its valuation of this popular ASX 200 share
• 2 ASX 200 tech shares this fund manager backs to survive the AI threat
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Grace Alvino has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Megaport, and Temple & Webster Group. The Motley Fool Australia has recommended Lovisa and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Southern Cross Gold Consolidated Ltd (ASX: SX2) has extended the gold strike at its Sunday Creek gold and antimony project in Victoria to 460m below its last best exploration results.

Encouraging gold results

The company said in a statement to the ASX on Thursday that new exploration drilling had intersected mineralisation at a depth of about 1236m, with gold mineralisation present including an intersection of 0.9m at 5.4 grams per tonne gold equivalent.

The company added:

The hole extended approximately 460 m below the defined exploration target at Golden Dyke, materially expanding the potential depth extent of the deposit and confirming scale comparable to mineralization depths discovered at the Rising Sun prospect.

Southern Cross chief executive officer Michael Hudson said the results were significant.

He added:

This is a milestone hole for Sunday Creek. SDDSC194W1 was designed to answer a simple but critical question: does the system persist at depth well beyond our current exploration target? The answer is yes. In a bold step-out to untested depths, at 1,236 m below surface and 460 vertical metres below the last known mineralisation at Golden Dyke, we intersected 66 m of dyke and altered sediment with gold present. This is the deepest hole on the property to date. The thesis was to test whether the host sequence continued at depth – that thesis has been emphatically proven, and that we hit gold across a 28 m true thickness zone was an absolute bonus.

Mr Hudson said the geochemistry of the mineralisation was also encouraging.

The arsenic-to-antimony ratios we’re seeing at depth are exactly what the epizonal model predicts, the fluid chemistry signature is right, and it tells us we are still within the productive part of the plumbing system. We are well below the antimony zone and into the sulphosalt area within the brittle-ductile transition – exactly where we expect to find robust, deep gold systems in the Victorian orogenic gold province. That’s a powerful vectoring tool as we plan the next series of holes into this area.

More potential even deeper

Mr Hudson said adjacent deposits in Victoria were being tested at depths of more than 2km, and he was confident Sunday Creek could continue to more than 2km below the surface.

He added:

In this style of mineralisation, the veins form the rungs of a ladder, and drilling sub-parallel to those rungs can easily miss them entirely. The fact that we intersected a 28 m true thickness altered and veined zone with anomalous gold throughout confirms that the host sequence is thick, repeatable, and fertile at these depths. An exciting result.

Southern Cross Gold shares were 0.8% lower in nearly trade at $9.69. The company was valued at $2.53 billion at the close of trade on Wednesday.

The post This ASX gold company has reported ‘exciting’ new exploration results appeared first on The Motley Fool Australia.

More reading

• This ASX gold and antimony developer has announced good drilling results at its Victorian project

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 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.

Bendigo and Adelaide Bank Ltd (ASX: BEN) shares are jumping on Thursday.

At the time of writing, the ASX bank stock is up 7.5% to $11.24.

Why is this ASX bank stock jumping?

Investors have been buying the regional bank’s shares today after it announced strategic partnerships and released a third-quarter trading update.

According to the release, Bendigo and Adelaide Bank has revealed the second phase of the Productivity Program to accelerate its progress towards its 2030 strategy.

It notes that it is evolving its operating model to be simpler and more efficient, accessing leading global capabilities to drive innovation for customers, and support operational excellence.

Following the Google partnership announced in November, it has now entered into two new strategic partnerships with leading providers of technology services and business operations.

The first is a seven-year technology service partnership with Infosys (NYSE: INFY), which will significantly improve its IT service delivery capability and provide access to enhanced capabilities, software engineering, and AI talent to deliver greater capacity to innovate.

The second is a six-year business operations partnership with Genpact (NYSE: G), which will bring deep expertise in process optimisation and delivery to drive greater productivity and support stronger risk management across the bank.

These changes are expected to result in an annual run rate expense benefit of approximately $65 million to $75 million, which will be realised by FY 2028. However, it also expects to incur upfront transition costs of approximately $85 million to $95 million. The majority of this will be incurred in FY 2027.

The ASX bank stock’s CEO and managing director, Richard Fennell, commented:

Decisions that impact our people are never easy. We acknowledge this will be a challenging time for our people and we are committed to lead these changes with care and respect. The operational efficiencies delivered through this change will support our previous stated guidance of business as usual expenses to be no higher than inflation through the cycle.

Trading update

The ASX bank stock also released a trading update this morning.

The bank revealed that it achieved unaudited cash earnings of $137.9 million during the third quarter. This is up 7.6% on the quarterly average during the first half.

Unaudited statutory net profit after tax was $109.4 million in the quarter.

This reflects a 6 basis points increase in its net interest margin to 1.98%, lending growth of 5.6%, and a 4.1% reduction in operating expenses to $305.1 million.

The post ASX bank stock jumps 7% on strategic partnerships and trading update appeared first on The Motley Fool Australia.

More reading

• Bendigo and Adelaide Bank lifts profit and launches strategic partnerships
• ASX bank stocks: Buy, sell, or hold?

Motley Fool contributor James Mickleboro 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 Alphabet. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool Australia has recommended Alphabet. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Orora Ltd (ASX: ORA) shares are on the slide on Thursday morning.

At the time of writing, the ASX 200 share is down 16% to $1.63.

Why is this ASX 200 share sinking today?

Investors have been selling the packaging company’s shares following the release of a trading update, which included a downgrade to earnings expectations for its Saverglass business.

According to the release, Orora now expects FY 2026 underlying EBIT for Saverglass to be in the range of 63 million euros to 68 million euros. This is down from previous guidance of broadly in line with FY 2025 EBIT of 79.2 million euros.

On a reported basis, EBIT is expected to fall further to between 52 million euros and 59 million euros.

Middle East conflict weighing on earnings

Management highlighted that the downgrade reflects both direct and indirect impacts from the ongoing Middle East conflict.

Directly, the company expects a 9 million euro to 11 million euro hit to second half earnings due to disruptions at its Ras al Khaimah (RAK) facility in the United Arab Emirates.

Shipping routes and overland access have been disrupted, forcing Orora to transition the facility into a closed-loop hot operation. This means the furnace is kept running, but no bottles are produced.

The RAK facility accounts for approximately 15% of Saverglass production capacity, with output now expected to shift to Mexico over time.

Softer demand and mix shift

In addition to the direct impact, Orora flagged weaker-than-expected trading conditions.

The company said volumes are now expected to be lower than previously forecast, with a shift in product mix also weighing on margins.

Specifically, there has been a greater-than-anticipated shift toward wine and champagne relative to premium spirits, alongside softer customer demand following the onset of the conflict.

This combination is expected to reduce earnings by a further 11 million euros to 16 million euros in the second half.

Other impacts

The ASX 200 share also noted that inventory levels have increased due to slower customer offtake and rising competitive pressures.

In response to the uncertainty, the company has decided to pause its on-market share buyback program while it monitors the situation.

Nevertheless, despite these challenges, management emphasised that the company’s balance sheet remains strong, with leverage expected to stay below 1.5 times by June 2026.

The post Why is this ASX 200 share sinking 16% today? appeared first on The Motley Fool Australia.

More reading

• Orora updates FY26 outlook as Saverglass earnings take a hit

Motley Fool contributor James Mickleboro 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 Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DroneShield Ltd (ASX: DRO) shares are rebounding on Thursday after a sharp selloff in the previous session following news of leadership changes.

However, with the dust beginning to settle, investors appear to be refocusing on the company’s underlying fundamentals and long-term growth opportunity.

At time of writing, the counter-drone technology company’s shares are up 3% to $3.55.

A structural growth story that remains intact

After the market close on Wednesday. DroneShield released an investor update that has gone down well with investors.

The update reminded the market that the company operates in one of the fastest-growing areas of defence technology.

But more importantly, the size of the opportunity is significant. The global counter-drone market is estimated to exceed US$60 billion, spanning both defence and civilian applications. With drones now a core feature of modern warfare and increasingly used in civilian settings, demand for detection and mitigation technologies is accelerating.

This is being driven not just by conflict zones, but also by airports, infrastructure operators, and law enforcement agencies responding to evolving security risks.

Strong momentum and a massive pipeline

DroneShield’s recent performance has been impressive.

The company’s presentation reminded investors that it delivered record results in 2025 and has carried that momentum into 2026.

In the first quarter alone, it generated $62.6 million in revenue, up 88% year on year, alongside record customer cash receipts of $77.4 million.

Looking ahead, DroneShield has already secured $140 million in committed revenue for FY 2026 and boasts a $2.2 billion sales pipeline across 312 projects globally.

This pipeline is spread across regions including the United States, Europe, Asia, and the Middle East, providing diversification and visibility on future growth.

Technology edge and expanding product offering

A key part of the investment case is DroneShield’s technology advantage.

The company highlights that it offers an end-to-end suite of counter-drone solutions, combining hardware such as detection sensors and jamming devices with AI-powered software platforms.

Its DroneSentry system acts as a central command-and-control hub, integrating multiple detection and defence technologies into a single ecosystem.

Furthermore, DroneShield points out that it is increasing its focus on software and recurring revenue. SaaS offerings are expected to become a growing portion of revenue over time, supported by ongoing product upgrades and AI-driven capabilities.

A rebound with more to come?

The sharp selloff earlier this week appears to have been driven more by uncertainty than a deterioration in fundamentals.

With a large addressable market, strong revenue growth, a deep sales pipeline, and increasing exposure to high-margin software, DroneShield remains a compelling growth story.

If management can continue executing on its strategy, particularly around scaling production and converting its pipeline into revenue, the recent weakness could prove to have been a buying opportunity rather than the start of a longer-term decline.

The post DroneShield shares rebound on investor update appeared first on The Motley Fool Australia.

More reading

• DroneShield shares tumble 17% as CEO exit revives leadership fears
• Should you buy the 20% dip in the DroneShield share price?
• Why are DroneShield shares getting smashed today?
• DroneShield posts record revenue and unveils leadership changes
• Why I think BHP, CBA, and DroneShield shares are buys in April

Motley Fool contributor James Mickleboro 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 is short shares of DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX small-cap industrials stock AMA Group Ltd (ASX: AMA) has had a rough year to date. 

The company operates in the wholesale vehicle aftercare and accessories market in Australia and New Zealand. 

Its operations include smash repair shops, automotive and electrical components, vehicle protection equipment, and servicing workshops for brakes and transmissions.

The Vehicle Collision Repairs segment is a major revenue driver for the company. It serves major insurance companies through more than 130 vehicle repair sites in all Australian states. 

For the to date, this ASX industrials stock has fallen roughly 34%. 

However, yesterday it recovered an impressive 8%. 

A new report from Bell Potter suggests this could be the beginning of a longer rally. 

Here’s what the broker had to say. 

Bell Potter expecting a good third quarter

In yesterday’s report from Bell Potter, the broker said it expects this ASX industrials stock to provide a Q3 update later this month. 

It said it continues to expect a good quarter with forecast normalised EBITDA pre-AASB 16 of $17.6m.

Importantly, however, our forecast is well above the Q2 result of $10.4m and reflects the typically seasonally stronger volumes in Q3 which we believe were not materially affected by the war in Iran and higher fuel prices.

Petrol prices a major factor

Bell Potter said higher petrol prices are not expected to materially impact Q3 earnings, with the company still on track to achieve around $17.6m in normalised EBITDA. 

However, there is some risk to Q4 forecasts if fuel prices remain elevated due to the ongoing Iran conflict, as this could reduce driving activity and, in turn, repair volumes.

Despite this risk, the company may still deliver EBITDA above $20m in Q4 if volumes hold up, as the prior corresponding period was affected by a one-off inventory provision. 

Overall, petrol prices are seen as a demand-side risk – affecting how much people drive – rather than a direct cost issue, and a decline in fuel prices would improve the earnings outlook.

Strong upside in tact 

Based on this guidance, Bell Potter has slightly reduced its price target to $1.200 (previously A$1.250). 

The broker has retained its buy recommendation.

Despite this slight decrease, this target indicates a potential upside of approximately 128% from yesterday’s closing price of $0.52. 

We have reduced the multiple we apply in the EV/EBITDA valuation from 6x to 5.5x and increased the WACC we apply in the DCF from 10.4% to 10.5% purely for conservatism. We note there is a large difference between the two valuations – $0.92 and $1.47 – but even the lower EV/EBITDA is still a significant premium to the share price. The net result is a 4% decrease in our target price to $1.20 and we retain the BUY recommendation.

The post This ASX industrials stock could be set to double according to one broker appeared first on The Motley Fool Australia.

More reading

• Bell Potter says this cheap ASX stock can rocket 100%

Motley Fool contributor Aaron Bell 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.

ASX materials stocks roared back to life yesterday as investors gobbled up shares on the back of positive negotiations in the Middle East. 

The S&P/ASX 200 Materials Index (ASX: XMJ) rose 4.4% yesterday. Investors will be cautiously optimistic the rally can continue.

It appears Morgans is optimistic about the sector bouncing back, as it has initiated coverage on two ASX materials stocks with buy recommendations. 

Here’s what the broker had to say. 

Many Peaks Minerals Ltd (ASX: MPK)

Many Peaks Minerals is an Australia-based mineral exploration company. The company focuses on advancing gold and copper projects and other mineral sector assets in West Africa.

Morgans has initiated coverage on the ASX materials stock with a speculative buy recommendation. 

The broker said the company is exploring the Ferke Gold Project (76.5%) in Cote d’Ivoire. 

Our modelling suggests the Ouarigue South system has already exceeded 1Moz Au ahead of an imminent Maiden MRE. 

At Ferke, our thesis is driven by geometry and early-stage economics rather than in-situ ounces.

Broad widths deliver favourable geometry supporting low strip ratios and unit costs, meaning scale doesn’t need to be excessive to deliver robust economics. Our mining scenario outlines an initial 7.5-year operation producing ~110kozpa at an AISC of ~A$2,525/oz, with underground and regional potential providing a clear runway for mine life extensions and project scale growth.

Morgans has placed a price target of $1.92 on the ASX materials stock assuming an effective 76.5% ownership, including government free carry. 

From yesterday’s closing price of $0.98, this indicates an upside potential of approximately 96%. 

Deterra Royalties Ltd (ASX: DRR)

This ASX materials stock manages a portfolio of mining royalty assets.

Morgans has just initiated coverage on the company with a buy rating and $4.85 target. 

DRR offers a rare capital-light exposure to tier-1 iron ore via a 1.232% Gross Revenue Royalty over BHP’s Mining Area C (a 45yr+ mine life asset with near-zero operating risk for the royalty holder) which delivers a 93% EBITDA margin. 

The Trident acquisition (Sep-24) added Thacker Pass, a 1.05% Gross Royalty Revenue (GRR) over a global-scale lithium deposit (85yr mine life, General Motors-backed). 

This provides genuine battery metals optionality worth A$0.40/share risked, diversifying the revenue base beyond iron ore. DRR trades at 9.7x FY27F EV/EBITDA, a 32-46% discount to global royalty peers (Franco-Nevada 19x, Wheaton 18x) that we believe is excessive given robust earnings platform, path to net cash, and emerging capital return optionality.

From yesterday’s closing price of $4.17, this price target indicates a potential upside of approximately 16%. 

The post Morgans just placed buy ratings on these ASX materials stocks appeared first on The Motley Fool Australia.

More reading

• This ASX gold company has reported ‘exciting’ new exploration results
• ASX bank stock jumps 7% on strategic partnerships and trading update
• Why is this ASX 200 share sinking 16% today?
• DroneShield shares rebound on investor update
• This ASX industrials stock could be set to double according to one broker

Motley Fool contributor Aaron Bell 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.

The All Ordinaries Index (ASX: XAO) is down 0.5% today, despite the best lifting efforts of this surging ASX All Ords mining stock.

The outperforming stock in question is Strickland Metals Ltd (ASX: STK), which is primarily focused on its Rogozna Gold and Base Metals Project, located in Serbia.

Strickland Metals shares closed yesterday trading for 21.5 cents. In early morning trade on Thursday, shares are changing hands for 23 cents apiece, up 7%.

This sees the Strickland Metals share price up a sizzling 187.5% since this time last year, smashing the 20.6% one-year returns delivered by the benchmark index.

Now, here’s what’s catching investor interest today.

ASX All Ords mining stock lifts on drill results

Strickland Metals shares are lifting off after the miner reported on the latest batch of positive assay results. The results stem from the diamond drilling campaign at the Obradov Potok prospect, situated within Strickland’s Rogozna Project.

The ASX All Ords mining stock said the drilling has confirmed the presence of carbonate-replacement lead (Pb), Zinc (Zn), and Silver (Ag) mineralisation at Obradov Potok. Importantly, these results were intercepted along an existing, promising trend.

For our geologically minded readers, Strickland reported that the mineralisation is consistent with “an outer carbonate-replacement style halo proximal to copper gold skarn”, which is dominant at Rogozna.

The ASX All Ords mining stock now plans further drilling in the area to target the interpreted core of the copper-gold skarn system.

Management highlighted that Strickland is well-funded to carry on further exploration. As at 31 December, the miner held cash and liquids of $38 million. That’s not including the $55 million it raised from a recently completed institutional placement.

What did Strickland Metals management say?

Commenting on results helping boost the ASX All Ords mining stock today, Strickland Metals managing director Paul L’Herpiniere said the confirmation of significant zones of carbonate-replacement lead zinc-silver mineralisation has elevated Obradov Potok as a priority target for follow-up exploration.

“This represents another important breakthrough by the team, validating our exploration model and reinforcing the potential for a major new discovery,” he said.

“Importantly, the target area also sits along strike from the cornerstone Gradina and Copper Canyon deposits, further enhancing its prospectivity,” L’Herpiniere added.

Looking ahead, L’Herpiniere concluded:

Following recent discoveries at Red Creek and Kotlovi, these results continue to highlight the scale and endowment of the broader Rogozna system.

We are looking forward to undertaking follow-up drilling as part of the 2026 field season targeting the interpreted core of the system at Obradov Potok, where we see a compelling opportunity to make a major new discovery.

The post Up 188% in a year, why is this ASX All Ords mining stock surging again today? appeared first on The Motley Fool Australia.

More reading

• This ASX gold company has reported ‘exciting’ new exploration results
• ASX bank stock jumps 7% on strategic partnerships and trading update
• Why is this ASX 200 share sinking 16% today?
• DroneShield shares rebound on investor update
• This ASX industrials stock could be set to double according to one broker

Motley Fool contributor Bernd Struben 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.

The ASX-listed exchange-traded fund (ETF) space is a smart place to look for retirement investing.

Some Australians may want to find funds that are weighted towards businesses with strong capital growth potential. Other investors may want to own investments that provide a pleasing level of passive income.

There are advantages (and disadvantages) to each type of ETF strategy, so I think it’s wise to look at both ideas.

Capital growth

The power of compounding can help capital growth deliver very pleasing wealth-building over time.

Capital growth would suggest that the businesses involved are growing revenue/profit at a useful speed to help send the share price higher over time.

I don’t think investors can go too far wrong with an international-focused ASX ETF that provides pleasing exposure to high-quality, growing businesses such as Vanguard MSCI Index International Shares ETF (ASX: VGS) and iShares S&P 500 ETF (ASX: IVV).

But, I’m a big believer in the idea that higher-quality businesses will outperform average businesses over the long-term, particularly when the market/economy goes through a rough patch.

I like the following international-focused ETFs because of how they build a portfolio based on quality attributes: Global X S&P World Ex Australia GARP ETF (ASX: GARP), VanEck MSCI International Quality ETF (ASX: QUAL), Betashares Global Quality Leaders ETF (ASX: QLTY) and VanEck Morningstar Wide Moat ETF (ASX: MOAT).

I believe the four options above are great to consider for building wealth and they can also be great options for Australians looking to invest in retirement.

For starters, a retiree may still have decades ahead that their portfolio needs to last, so capital growth is a useful feature.

Secondly, when in retirement, Australians can unlock income by selling a portion of their investment holding each year. For example, if they have $100,000 in an ASX ETF, they could sell $4,000 to unlock a 4% cash flow ‘yield’. Its long-term capital growth may be strong enough for the portfolio/ETF value to outpace the sales.

For example, if a $100,000 investment grows in value by 10% over a year it becomes $110,000 and a sale of $4,000 would mean $106,000 remaining for the next year. That’s a combination of capital growth of $4,000 of income to spend.

ASX ETFs that provide dividends

Some retirees may not want to sell anything. Instead, their preference may be just to hold an investment and receive passive income from it.

A lot of internationally-focused ASX ETFs don’t have a large dividend yield because the underlying shares don’t have a large yield either, meaning there’s not much income for the ETF to pass on.

Some people may like the Vanguard Australian Shares High Yield ETF (ASX: VHY) because it invests in high-yielding ASX shares, enabling it to give investors a lot of passive income. However, the compound earnings growth of the businesses in this fund are typically low, so I’m not a huge fan.

That’s why I like ASX ETFs that have a pleasing targeted distribution yield while still providing investors with a good dividend yield.

One of my favourite ideas in this space is WCM Quality Global Growth Fund (ASX: WCMQ), which targets a distribution yield of 5%. Growth of the fund’s net asset value (NAV) can unlock distribution growth for investors.

The post Which ASX ETFs I’d buy for retirement investing appeared first on The Motley Fool Australia.

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• Where to invest $7,000 in ASX shares during April
• 5 ASX ETFs to buy and hold for five years
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• How I’d invest $100,000 for retirement income on the ASX right now
• Where to invest $1,000 in ASX ETFs for beginners in April

Motley Fool contributor Tristan Harrison has positions in VanEck Morningstar Wide Moat ETF, VanEck Msci International Quality ETF, and Wcm Quality Global Growth Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended iShares S&P 500 ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF, Vanguard Australian Shares High Yield ETF, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Orora Ltd (ASX: ORA) share price is in focus following a trading update, with the company revising down FY26 EBIT guidance for its Saverglass division due to the ongoing Middle East conflict. Saverglass’ underlying FY26 EBIT (€) is now forecast at €63–68 million, compared to previous guidance of around €79.2 million.

What did Orora report?

• FY26 Saverglass underlying EBIT (€) expected at €63m–€68m (down from €79.2m in FY25)
• FY26 reported EBIT (€) for Saverglass now forecast at €52m–€59m
• Direct 2H26 EBIT impact from Middle East conflict: €9m–€11m
• Indirect 2H26 EBIT impact due to weaker volumes and negative mix: €11m–€16m
• No change to existing FY26 guidance for Cans or Gawler divisions
• Leverage ratio expected to remain below 1.5x at June 2026

What else do investors need to know?

The Ras al Khaimah (RAK) facility in the UAE is safe and undamaged, but production has shifted to a closed-loop ‘hot’ mode due to shipping and overland route closures. Orora assures all team members are accounted for and safety is the top priority.

Production from the RAK facility, representing about 15% of Saverglass capacity, will be shifted to Mexico for the North American market, with bottle moulds transported to the Acatlán facility. Orora has paused its on-market buyback while monitoring the conflict’s ongoing impacts.

What’s next for Orora?

Orora continues to monitor the Middle East situation and remains committed to safety and operational continuity. Shifting production from the RAK facility to Mexico is expected to help maintain supply for key customers, with mitigation strategies aiming to reduce energy cost pressures.

The company retains a strong balance sheet and expects leverage to stay below 1.5x by the financial year-end. The paused buyback may resume once there is greater certainty around external risks.

Orora share price snapshot

Over the past 12 months, the Orora share price has risen 16%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 21% over the same period.

View Original Announcement

The post Orora updates FY26 outlook as Saverglass earnings take a hit appeared first on The Motley Fool Australia.

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• Bendigo and Adelaide Bank lifts profit and launches strategic partnerships
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