Author: openjargon

With only a few hours remaining before the end of trading on Friday, the S&P/ASX 200 Index (ASX: XJO) is up 0.5% for the week, with these four ASX 200 stocks racing ahead of those gains.

Which stocks smashed the benchmark returns this week?

I’m glad you asked!

Domino’s Pizza Enterprises Ltd (ASX: DMP)

First up, we have Domino’s Pizza.

Shares in the fast-food pizza retailer closed last Friday trading for $15.72. At the time of writing, shares are changing hands for $17.36 each, putting this ASX 200 stock up 10.4% for the week.

There’s been no fresh price-sensitive news out from the company in some time. But with Domino’s shares kicking off this week down 28% year to date, investors may believe that the turnaround story is finally in play.

ALS Ltd (ASX: ALQ)

ALS shares are also enjoying a strong week of outperformance.

Shares in the testing services company closed last Friday trading for $22.20, and are currently trading for $24.29. That sees this ASX 200 stock up 9.4% for the week.

ALS shares look to have enjoyed a belated bump, following Monday’s release of the company’s full-year FY 2026 results.

Highlights for the 12 months included a 10.7% year-on-year increase in revenue to $3.32 billion. And on the bottom line, ALS reported underlying net profit after tax (NPAT) of $381 million, up 25.8% from FY 2025.

James Hardie Industries PLC (ASX: JHX)

The third ASX 200 stock smashing the benchmark returns this week is James Hardie.

James Hardie shares closed last week at $26.94 and are currently trading at $28.94 apiece, up 7.4%.

On Wednesday, James Hardie released its own full-year FY 2026 results.

The building materials company reported a 25% year-on-year increase in net sales, reaching US$4.84 billion over the 12 months. That growth was spurred by additional sales from the company’s acquisition of AZEK, a United States-based outdoor building products company.

Excluding that acquisition, James Hardie’s organic net sales were down by 2% from FY 2025.

Which brings us to…

Guzman Y Gomez (ASX: GYG)

Guzman Y Gomez shares are enjoying a welcome week of outperformance.

Shares in the Mexican fast-food restaurant chain closed last Friday trading for $17. At the time of writing today, shares are trading for $20.79, which sees this ASX 200 stock up an impressive 22.3% for the week.

Most of those gains are being delivered today.

Guzman Y Gomez shares are up 15% in early afternoon trade after the company announced that it was exiting its US market, where it’s struggled to achieve sales growth.

However, management offered a bullish assessment of Guzman Y Gomez’s Australia business, lifting full-year FY 2026 Australia Segment earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance to around $85 million.

That’s 29% higher than the company’s FY 2025 EBITDA in Australia.

The post 4 ASX 200 stocks rocketing higher this week appeared first on The Motley Fool Australia.

More reading

• 4 ASX shares scoring upgraded ratings this week
• Morgans says this top ASX 200 share could rise over 30%
• Why is everyone talking about Guzman Y Gomez, Tuas and Appen shares on Friday?
• Macquarie names 3 ASX shares to buy for 40%+ returns
• 7 ASX shares with strengthened buy ratings this week

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 positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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) is pushing higher again on Friday as investors take a more positive lead from Wall Street.

At the time of writing, the benchmark index is up 0.48% to 8,663 points.

The move has taken the ASX 200 to a 5-day high, with the index earlier trading as high as 8,672 points today.

It also follows a strong session on Thursday, when the index rose 1.47% after several rough days for local investors.

The ASX 200 is still down around 0.6% in 2026 and about 3.2% over the past month, so today’s move is not exactly a clean breakout.

But after a choppy stretch, buyers are starting to return to the market.

Here’s what is moving the index this afternoon.

Miners do the heavy lifting

Resources stocks are doing most of the work on Friday, with the S&P/ASX 200 Resources Index (ASX: XJR) up around 1.3%.

BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) are both trading higher, helping pull the ASX 200 further into positive territory.

They are up 1.35% and 2.30%, respectively.

Other resources names are also climbing, with gains across gold, rare earths, lithium, and diversified mining stocks.

The buying follows a stronger lead from Wall Street and a more positive session across global markets.

Oil prices have also eased from recent highs, which has taken some pressure off inflation concerns.

Brent crude is sitting around US$104 a barrel as investors watch for signs of progress in the Middle East conflict.

Wall Street gives investors a lift

Local investors also had a stronger lead from the United States.

The Dow Jones Industrial Average Index (DJX: .DJI) rose around 0.6% to a record close of 50,286 points, its first record since February.

The S&P 500 Index (SP: .INX) also edged higher, while the Nasdaq finished slightly in the green despite weakness in Nvidia.

The stronger US session helped set up a better start for the Aussie market, with ASX 200 futures pointing higher before the open.

Guzman y Gomez shares jump on US exit

Guzman y Gomez Ltd (ASX: GYG) is one of the strongest movers on the market today.

The fast-food stock jumped after announcing plans to exit the US market and focus on Australia and selected offshore markets.

The company said it would close its Chicago restaurants after deciding the US operations were no longer justified for further shareholder investment.

At the time of writing, the Guzman y Gomez share price is up 15.04% to $20.80.

Foolish Takeaway

Today’s rise gives the ASX 200 some breathing room after a difficult month.

Still, the index remains below its recent highs, and the 2026 return is still slightly negative.

Investors may be feeling better today, but the market still needs more than one strong session to rebuild confidence.

The post ASX 200 hits 5-day high as miners lead another rebound appeared first on The Motley Fool Australia.

More reading

• Fletcher Building: Construction division sale now unconditional
• Tuas terminates M1 acquisition
• Guzman y Gomez exits US market, boosts Australia growth outlook
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Aaron Teboneras 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 Nvidia. The Motley Fool Australia has recommended BHP Group and Nvidia. 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 0.55% higher at 8,669.7 points on Friday.

Meanwhile, brokers have indicated new confidence in several ASX shares this week.

Let’s take a look.

Iluka Resources Ltd (ASX: ILU)

The Iluka Resources share price is $8.09, up 5.8% today.

This ASX 200 mining share is having a strong year, up 37% so far in 2026.

Ord Minnett upgraded Iluka Resources shares to a buy rating on Monday.

The broker upped its 12-month price target from $8 to $9.

This implies a potential 11% upside ahead.

Qualitas Ltd (ASX: QAL)

The Qualitas share price is $2.88, down 0.4% today.

Over the past month, this ASX 200 financial share has soared 22%.

Morgans upgraded Qualitas shares to a buy rating on Monday.

The broker increased its 12-month price target from $2.60 to $3.50.

This suggests a potential 21% upside ahead.

The broker said:

Following QAL’s recent 3QFY26 update, the announced changes to residential real estate investment in the Federal Budget and the sale of a further interest in the comparable Metrics Credit, we have upgraded QAL to a BUY with a $3.50/sh price target.

Our valuation and recommendation change was driven almost entirely by a reduction to our discretionary valuation discount (+75 cps), reflecting our lower perceived risk as a) the company reiterates that FUM commitments continue to increase and b) FUM deployments set new records.

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman Y Gomez share price is $20.58, up 13.7% today on news that the Mexican restaurant chain has abandoned its US expansion.

As a result, Guzman Y Gomez has closed its Chicago restaurants.

The company also announced increased FY26 earnings guidance for its Australian segment.

Guzman y Gomez now expects underlying FY26 earnings before interest, taxes, depreciation, and amortisation (EBITDA) of approximately $85 million, up 29% year over year.

Earlier this week, RBC Capital upgraded this ASX 200 retail share to a buy rating.

The broker gave Guzman Y Gomez shares a 12-month price target of $22, up from $20 previously.

Following today’s news, there’s just 4% upside left over the next year, based on the broker’s target.

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price is $29.13, down 0.1% on Friday.

This ASX 200 tech share has fallen 23% over 12 months.

Morgans upgraded TechnologyOne shares from hold to accumulate this week.

This follows recent weakness in the TechnologyOne share price and the company’s 1H FY26 results.

The broker said:

TNE’s 1H26 result came in largely as expected, albeit with some FX headwinds, which otherwise would have seen its underlying result land ahead of consensus.

The group enters 2H26, with a strong pipeline of ‘Plus’ leads, which sees TNE well positioned to achieve the top end of its re-affirmed FY26 ARR/PBT Guidance.

Morgans lifted its 12-month target from $31.20 to $32.30, implying 11% potential upside ahead.

The post 4 ASX shares scoring upgraded ratings this week appeared first on The Motley Fool Australia.

More reading

• 4 ASX 200 stocks rocketing higher this week
• Why is everyone talking about Guzman Y Gomez, Tuas and Appen shares on Friday?
• Why are Guzman Y Gomez shares surging more than 15% higher?
• Guzman y Gomez exits US market, boosts Australia growth outlook
• This ASX tech stock just raised its dividend by 21%

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 Technology One. The Motley Fool Australia has recommended Qualitas and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are looking for an ASX 200 share to buy, then it could be worth considering the blue chip in this article.

That’s because the team at Morgans believes it could be seriously undervalued at current levels and is tipping major upside over the next 12 months.

Which ASX 200 share?

The share that Morgans is positive on is James Hardie Industries plc (ASX: JHX). It is a global leader in high-performance fibre cement building materials.

In case you missed it, earlier this week James Hardie released its FY 2026 results and reported net sales of US$4.84 billion. This was up 25% from US$3.88 billion in FY 2025.

However, it is worth highlighting that this was largely supported by the contribution from the AZEK acquisition. On an organic basis, James Hardie’s net sales declined 2% for the year.

Management advised that full-year exterior product volumes fell high single digits, with single-family volumes down low double digits as softer construction conditions weighed on demand.

This ultimately led to statutory net income falling 75% to US$104 million, compared with US$424 million in FY 2025.

James Hardie’s CEO, Aaron Erter, was pleased with the “transformational” year. He said:

Fiscal 2026 was a transformational year for James Hardie, highlighted by the closing of the AZEK acquisition. As we integrate the businesses, we are seeing continued progress across both cost and commercial synergies, further strengthening our belief in the long-term value creation opportunity from the combination. For the full fiscal year, we delivered solid financial performance despite a challenging operating environment. Despite our markets declining mid-to-high single digits for the year, our organic net sales declined just 2% year over year.

Should you invest?

As mentioned at the top, after reviewing its results, Morgans thinks the ASX 200 share could be undervalued at current levels.

It has put a buy rating and $39.00 price target on its shares. Based on the current James Hardie share price of $28.95, this implies potential upside of 35% for investors over the next 12 months.

Commenting on its recommendation, Morgans said:

FY26 result was in line with Consensus (and a slight beat vs prior guidance), while Consensus for FY27 was at the top end of guidance. To this end, the company is forecasting FY27 pro forma growth of 4-8%, with siding back to organic growth. Market conditions remain subdued, citing lower builder activity and affordability pressures – looking forward management assumes no market recovery in FY27.

As such, FY26 can be chalked up as a transformational but financially dilutive year, while FY27 is about margin and cash-recovery driven by synergies rather than any improvement in the housing market. Buy retained, with a A$39.00/sh price target.

The post Morgans says this top ASX 200 share could rise over 30% appeared first on The Motley Fool Australia.

More reading

• 4 ASX 200 stocks rocketing higher this week
• Macquarie names 3 ASX shares to buy for 40%+ returns
• 7 ASX shares with strengthened buy ratings this week
• Here are the top 10 ASX 200 shares today
• How high could James Hardie shares go? Brokers have their say

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 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.

Guzman Y Gomez (ASX: GYG), Tuas Ltd (ASX: TUA) and Appen Ltd (ASX: APX) shares are turning head today.

Two of the popular stocks are charging ahead of the 0.6% gains posted by the S&P/ASX 200 Index (ASX: XJO) as we head into the Friday lunch hour, while one is mired in the red.

Here’s what’s catching investor interest.

Appen shares rocket on bullish AI outlook

Appen shares are off to the races today.

At time of writing, shares in the ASX All Ords AI applications data solutions provider are trading for $1.27 apiece up 13.4%.

The stock is turning heads following its annual general meeting (AGM) today.

Amid the ongoing artificial intelligence revolution, Appen CEO Ryan Kolln noted, “Appen plays a critical role in the AI ecosystem by providing high quality data that is used to build and monitor AI models.”

Pleasingly, the ASX tech stock also reaffirmed its fully year FY 2026 revenue guidance to be in the range of $270 million to $300 million. That compares to FY 2025 revenue of $231 million.

“We remain confident in the AI data market and in Appen’s ability to meaningfully contribute to the development of leading foundation models,” Kolln said, offering a bullish outlook for Appen shares.

Tuas shares sink further on axed M1 acquisition

Tuas shares are sliding today.

Shares in the ASX 200 Singapore-based telecom stock are down 1.3%, changing hands for $2.28 each.

This comes after the company announced the termination of its agreement to acquire Singapore telecom company M1 Limited. Tuas had reported its intentions to acquire M1 last year.

Today, management said that with several conditions precedent remaining unfulfilled by the required date, the company would not move forward with that purchase.

Tuas shares closed down a sharp 16.9% on Wednesday, when news broke that the company’s SIMBA mobile business “may have been using radio frequency bands that it was not authorised to use”.

Which brings to…

Guzman Y Gomez shares surge on US exit news

Joining Tuas and Appen shares in turning heads today we find Guzman Y Gomez shares.

Shares in the ASX 200 Mexican fast food restaurant chain are up 15.4% at time of writing, swapping hands for $20.87 apiece.

Investors are piling into Guzman Y Gomez shares after the company reported that it was exiting the United States market, where it’s been struggling to achieve sales growth.

But investors look to applauding the move, with management stating that the company’s Australian business is in “a solid position, with strong growth, world class unit economics and a significant network growth opportunity”.

With renewed focus on Australia, Guzman Y Gomez increased its full year FY 2026 Australia Segment earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance to around $85 million. That’s 29% higher than FY 2025 earnings in Australia.

The post Why is everyone talking about Guzman Y Gomez, Tuas and Appen shares on Friday? appeared first on The Motley Fool Australia.

More reading

• 7 ASX shares with strengthened buy ratings this week
• This ASX AI stock is surging 9% today after a wild month
• Why are Guzman Y Gomez shares surging more than 15% higher?
• Tuas terminates M1 acquisition
• Guzman y Gomez exits US market, boosts Australia growth outlook

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 positions in and has recommended Appen. 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 diversified industrial company SGH Ltd (ASX: SGH) held an investor day this week, which gave analysts the opportunity to get a good handle on how the company is travelling.

Macquarie has issued a research note to its clients following the ASX 200 company’s presentations, and it’s fair to say they liked what they saw.

Macquarie said the company reiterated its full-year EBIT growth guidance of low to mid-single digits.

Disciplined growth

The Macquarie analyst team added:

SGH’s drive toward continuous improvement across its businesses remains a core tenet, seeking incremental gains at scale across businesses. For Boral, it means EBIT margins >15%, Coates seeks to drive further gains in time utilisation from the current 62% and WesTrac to extract further aftermarket service productivity. AI is seen as a key enabler of execution.

Macquarie said SGH had been successful over time in acquiring and improving assets, then deleveraging and acquiring again.

They said it was clear that “SGH seeks to continue this formula, with an emphasis on Australia, even if it is open to offshore opportunities too – this is a shift in intent, without any specifics”.

They added:

The group seeks EBIT growth of 10% through the cycle, balancing organic and inorganic growth roughly equally, on average. SGH sees identified growth opportunities in Property development, Crux, data centre build-out and exposure to growth thematics in infrastructure (and residential building when the cycle improves), mining production and energy.

Macquarie said while macroeconomic conditions remained complex, SGH’s execution remains strong, “and Boral likely continues to support the majority of near-term growth”.

They also said they remained focused on the company’s M&A strategy.

Macquarie increased its price target on SGH marginally from $50.35 to $50.40, compared with the current share price of $41.90.

Gas focus

Fellow broker RBC Capital Markets also recently released a report on SGH, with a price target of $47.

RBC argued that a key to the stock’s rerating would be the company’s interest in the Crux project in Western Australia, a joint venture with global giant Shell.

As RBC says in a report published this week:

We believe SGH is likely to make an announcement on Crux, a gas project that it has a 15.5% stake in (Shell owns the balance) that will begin backfilling volumes in the Prelude Floating LNG terminal, which we believe will act as a positive catalyst for the stock. We conservatively expect the project to start producing gas in late (2H28), and have taken the view that it will hit full production in FY30.

RBC estimates that Crux would generate $350 to $375 million in EBITDA to SGH each year, “yet consensus forecasts show no step-change in group earnings through the ramp period”.

SGH is valued at $16.74 billion.

The post How high does Macquarie think SGH shares will go? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• How high does RBC Capital think SGH shares will 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 positions in and 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.

S&P/ASX 200 Index (ASX: XJO) shares are higher on Friday after a strong lead from Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) rose 0.55% to a record close of 50,381.41 points overnight.

The US market surged as oil prices dropped amid hopes of a peace deal between the US and Iran soon.

Meanwhile, ASX 200 shares are up 0.53% to 8,668.2 points at the time of writing.

However, the ASX 200 remains in the red, down 0.71%, for the calendar year to date.

Amid volatile trading conditions, brokers have reduced their ratings on several ASX 200 shares this week.

Let’s take a look.

ASX 200 shares downgraded this week

Telstra Group Ltd (ASX: TLS)

The Telstra share price is $5.43, down 0.7% today.

The ASX 200 telco share has risen 15% over the past 12 months.

Macquarie downgraded Telstra shares from outperform to neutral today.

The broker shaved its 12-month price target by 1.2% to $5.57.

This suggests just 4% upside ahead.

IAG Australia Group Ltd (ASX: IAG)

The IAG share price is $7.87, down 3.5% today.

Over the past year, this ASX 200 financial share has fallen 10%.

Citi downgraded IAG shares from buy to hold with an $8.50 price target on Friday.

This still implies a potential 8% upside ahead.

Brambles Ltd (ASX: BXB)

The Brambles share price is $16.77, down 1.2% today.

Over the past month, Brambles shares have fallen 26%.

Morgans downgraded the ASX 200 industrial share from accumulate to hold on Tuesday.

The broker also reduced its 12-month price target from $25.50 to $18.70.

This still implies a potential 11% upside ahead.

Nick Scali Ltd (ASX: NCK)

The Nick Scali share price is $13.20, down 3.6% today.

Over the past six months, this ASX 200 retail share has fallen 43%.

Jefferies downgraded Nick Scali shares from buy to hold on Friday.

Analyst Michael Simotas forecasts lower profits ahead due to falling consumer sentiment amid higher interest rates and proposed changes to capital gains tax (CGT) in the Federal Budget.

Simotas attributed his profit forecast downgrades to “operating deleverage in Australia, New Zealand and U.K. due to softening macroeconomic conditions and given Nick Scali’s sales are strongly correlated to housing market”.

The broker slashed its 12-month price target by 44% to $14 per share.

This indicates only a small potential uplift ahead.

Elders Ltd (ASX: ELD)

The Elders share price is $5.77, up 2.7% today.

This ASX 200 agribusiness has lost 23% of its market valuation over the past six months.

Canaccord Genuity downgraded Elders shares to hold after the company released its 1H FY26 results.

The broker cut its 12-month target from $8.64 to $5.34.

This suggests a potential 7% downside ahead.

The post 5 ASX 200 shares downgraded by the experts this week appeared first on The Motley Fool Australia.

More reading

• Here’s a 9% ASX dividend stock to consider for a monthly passive income
• Should I invest $5,000 in Telstra shares before the end of May?
• 2 ASX 200 shares I’d buy today and hold for years
• 3 ASX stocks expected to increase their dividends in 2026
• Brokers say these ASX 300 shares are too cheap to ignore

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

ASX 200 defence stock Codan Ltd (ASX: CDA) shares are adding to their huge run on Friday after investors were handed another defence technology update.

At the time of writing, the Codan share price is up 2.60% to $40.64.

The move continues a remarkable stretch for shareholders. The ASX 200 stock has gained around 40% in 2026 and more than 130% over the past year.

Codan has long been known for its metal detection business, but its defence and communications exposure is getting a lot more attention lately.

Here’s what was announced.

Codan adds another US defence specialist

According to the release, Codan’s wholly owned subsidiary, DTC Communications, has entered into a binding agreement to acquire Adaptive Dynamics.

Adaptive Dynamics is a US-based engineering company that develops technology for mission-critical communications.

Its main focus is anti-jamming and interference mitigation. The technology is designed to help communications systems keep working when signals are being disrupted, blocked, or attacked.

This can be useful in defence and national security settings, where secure communications are critical and operating conditions can be difficult.

Adaptive Dynamics also works in Assured Positioning, Navigation and Timing, known as APNT.

These systems help maintain reliable location, navigation, and timing data when normal signals are under pressure.

Codan said Adaptive Dynamics has more than 20 years of experience in advanced algorithms and radio frequency technologies.

Its capabilities include interference cancellation, signal enhancement, and adaptive filtering.

The company said the acquisition is expected to improve DTC’s technical capabilities in unmanned systems and next-generation defence programs.

The price tag and deal structure

The acquisition consideration totals about $21 million.

This includes upfront and contingent payments, subject to agreed technology development and integration milestones over the next 2 years.

Codan also said a tiered royalty payment will be payable on technology licences sold over the 5 years after completion.

The transaction is expected to be earnings neutral in the first year of ownership.

Management said the main focus will be integrating Adaptive Dynamics’ technology into DTC’s existing product portfolio.

Completion is expected in early H1 FY27, subject to the typical regulatory conditions.

What this adds to Codan

The deal is not huge compared with Codan’s current market value, which sits above $7.3 billion.

But investors are likely looking at what Adaptive Dynamics adds to the business.

The ASX 200 defence stock has been building its communications division through DTC and Zetron, while Minelab remains its best-known metal detection business.

Adaptive Dynamics gives DTC more specialist defence technology at a time when secure communications are getting more attention from the current geopolitical landscape.

DTC president and executive general manager Paul Sangster said the acquisition strengthens the company’s ability to deliver communications systems that operate in difficult conditions.

He also said the technology adds to DTC’s positioning in next-generation defence opportunities requiring resilient communications, electronic warfare resilience, AI-based integration, and mission assurance.

The post This red-hot ASX 200 defence stock is rising again. Here’s why appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Cleanaway, Codan, and Tuas shares
• This ASX tech stock has exploded 137%, time to cash out?
• 5 ASX shares with upgraded ratings this week
• ASX tech shares vs. ATEC ETF: How they fared during sector downturn
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Aaron Teboneras 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.

It has been another busy week for many of Australia’s top brokers. This has led to a number of broker notes being released.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone right now:

Bega Cheese Ltd (ASX: BGA)

According to a note out of Morgan Stanley, its analysts have initiated coverage on this diversified food company’s shares with an overweight rating and $6.70 price target. The broker believes that Bega Cheese is good value at current levels. It highlights the undemanding valuation multiple its shares trade on and positive earnings growth outlook. In fact, the broker believes Bega Cheese could grow earnings per share at an average of 20% per annum between FY 2025 and FY 2028. This is being supported by increased protein consumption, cost savings, and optimisations. The Bega Cheese share price is trading at $5.42 on Friday.

Energy One Ltd (ASX: EOL)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this software provider’s shares with a trimmed price target of $17.10. Bell Potter believes artificial intelligence (AI) displacement concerns are unwarranted. This is because Energy One serves a deeply regulated and sticky industry with mission-critical solutions. In addition, it highlights that tailwinds remain regarding growing complexity in energy markets, surging European trading volumes, and increasing distributed energy resources. It believes these trends reinforce the strength of the company’s positioning as a one-stop-shop provider of software and services, rather than a collection of individual tools. It also notes that it remains attracted to the company’s strong growth profile, expanding margins, and impressive SaaS metrics. The Energy One share price is fetching $12.21 at the time of writing.

Temple & Webster Group Ltd (ASX: TPW)

Another note out of Bell Potter reveals that its analysts have retained their buy rating on this online furniture retailer’s shares with a reduced price target of $7.00. The broker has reduced the target multiples for Temple & Webster’s shares to 9x EV/EBITDA. Despite this, the broker still sees plenty of value in Temple & Webster’s shares. In fact, it notes that the continuous decline in the share price means that its shares are back at the levels of the last profit optimisation cycle in 2022. However, this time around its shares are trading on a more attractive EV/sales multiple. Overall, it sees long term valuation support in a high-quality ecommerce retailer with range, pricing/scale advantages, AI/data capability backed by a strong balance sheet to take up inorganic growth opportunities. The Temple & Webster share price is trading at $5.09 this afternoon.

The post Brokers name 3 ASX shares to buy right now appeared first on The Motley Fool Australia.

More reading

• This mid-cap ASX tech share could be 30% higher in 12 months
• These ASX 200 shares have been smashed. I think patient investors should pay attention
• 5 things to watch on the ASX 200 on Friday
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Motley Fool contributor James Mickleboro has positions in Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Energy One and Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been a time to own shares of ASX mining giant Rio Tinto Ltd (ASX: RIO). This diversified mining stock has been delivering for investors in spades of late.

To illustrate, consider that the Rio share price has risen 36.5% in 2026 alone. That includes today’s healthy 1.3% bump that we are seeing at the time of writing to $184.02 a share.

Zooming out, Rio shares are also up an even more impressive 65% over the past 12 months. Rallying commodity prices and high inflation expectations seem to be responsible for this desire from investors to buy mining stocks like Rio.

But many ASX investors don’t hold Rio Tinto shares for the capital growth potential. Rio has always been a popular choice for dividend investors, too. That’s thanks to a long history of Rio funding large, and usually fully franked, dividend payments to shareholders. Being a mining stock, these payments do tend to be cyclical. But they can be massive if Rio is enjoying an upswing in commodity markets.

With that in mind, let’s dive into what kind of dividends one could expect from owning Rio shares today.

Rio Tinto shares: What kind of dividends are on offer today?

Well, at the current share price, Rio Tinto stock is trading on a trailing dividend yield of 3.2%. This hails from the two dividend payments that Rio has made over the past 12 months. The first was the 2026 interim dividend, paid out last month, worth $3.67 per share. The second, the interim dividend from September, was worth $2.22 per share.

Both dividend payments came with full franking credits attached, as is Rio’s habit. However, both dividends were below those received over the prior 12 months.

Saying all of this, 3.2% is not what investors should expect if they buy Rio shares today, as it is only a trailing dividend yield metric.

We can’t know for sure what kind of income any ASX share will pay before it tells us.  We can look at what’s likely to happen, though. Rio’s last two payments were historically high for the miner. However, the current yield doesn’t reflect that, thanks to the massive share price appreciation Rio has enjoyed over the past 12 months. These are all signs that Rio is nearing the top of its cycle, at least in my view.

These factors should make investors think twice about buying Rio shares for income today. There’s little doubt that this mining stock will continue to be a reliable dividend payer going forward. It’s just a question of whether buying Rio shares after the 65% rise since this time last year is the best entry point for income investors.

The post Buying Rio Tinto shares? Here’s the yield you’ll get today appeared first on The Motley Fool Australia.

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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 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.