Author: openjargon

DroneShield Ltd (ASX: DRO) shares flew into some turbulence in April.

On 31 March, shares in the S&P/ASX 200 Index (ASX: XJO) drone defence company closed trading for $3.81. When the closing bell rang on 30 April, shares were changing hands for $3.54 apiece.

That saw DroneShield shares down 7.1% in April, materially trailing the 2.2% gains posted by the ASX 200 over the month just past.

Here’s what’s been happening.

High-flying DroneShield shares under new leadership

Before looking at some specifics from April, it’s worth noting that despite the recent underperformance, DroneShield shares remain up 173.9% (at the time of writing on Monday) over the past 12 months.

So, some occasional profit-taking is not unexpected. Especially with the US entering into a ceasefire with Iran in April, which investors may relate to potentially lower future demand for drone defence technologies.

Now, on to those specifics.

DroneShield shares closed down a sharp 13.5% on 8 April after the company announced that CEO Oleg Vornik was stepping down from his role after more than 10 years in the top spot.

Investors also learned that chairman Peter James was retiring from the board and will not seek re-election.

Chief product officer Angus Bean – who joined DroneShield in 2016 – took over as managing director and CEO on the day of the announcement.

Outgoing CEO Oleg Vornik said:

I joined DroneShield as its first employee in 2015 and have led its growth from a market capitalisation of $27 million at its Initial Public Offering in 2016 to entering the ASX200 in September 2025 with a market capitalisation of nearly $4 billion.

Commenting on Bean’s appointment, James said:

Angus led the development of the products that we are best known for in the market, and is the key architect of our current and next generation of technologies. He has built DroneShield’s 350-plus engineering team and has been a prominent representative of the business to many of our major customers over the years.

Investors had other reasons for optimism in April as well.

ASX 200 drone defence stock sees revenue surge

DroneShield shares closed flat on 22 April, despite the company releasing a strong first-quarter (Q1 2026) update.

Highlights for the three months included all-time high customer cash receipts of $77.4 million, up 360% from Q1 2025.

And revenue of $74.1 million was up 121% year on year, marking the company’s second-highest quarterly revenue in its history.

Following a strong quarter, DroneShield reported a 13% year-on-year increase in its cash balance to $222.8 million at quarter end.

Looking at what might impact DroneShield shares longer term, management said the company’s $2.2 billion potential sales pipeline – spanning 312 projects in some 60 countries – is the largest ever.

The post Why did DroneShield shares tumble more than 7% in April? appeared first on The Motley Fool Australia.

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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 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.

Endeavour Group Ltd (ASX: EDV) shares are taking a hit on Monday after the company released a fresh trading update.

At the time of writing, the Endeavour share price is down a sizeable 7.75% to $3.155.

That extends a tough run for the stock, which is now down around 24% over the past 12 months.

Here’s what the company reported.

Growth slows across retail and hotels

According to the release, Endeavour reported a mixed set of numbers across its retail and hotels divisions.

For the second half to date, retail sales are up 2.9%, while hotels have grown 3.7% over a similar period.

Retail sales came in at around $2.398 billion, with hotels contributing $531 million.

It appears recent trading has been slower than earlier in the half, with the pace cooling off.

Retail growth eased to 0.7%, down from 2.9% in the prior 13-week period, with management pointing to a tougher consumer backdrop.

The company said customers are still spending, but demand remains softer outside of key events like Easter.

Hotels have held up better, with stronger trading across bars, gaming, and accommodation, though growth also slid back through March.

Costs are creeping higher

Alongside the softer numbers, costs are moving higher.

Endeavour flagged higher fuel and freight expenses tied to supply chain pressures, which are expected to lift costs by $6 million to $8 million in FY26.

The added costs are likely to show up in margins, particularly across the retail business.

The group is already working with suppliers and adjusting operations to offset some of the impact, but it still leaves another headwind.

A bigger push on cost-cutting

Management is stepping up efforts to reduce costs across the business.

The company is targeting $100 million in savings by FY27 as part of a broader transformation plan.

That includes changes across store operations, procurement, and support functions.

There is also a near-term impact on working capital, with inventory levels expected to rise by up to $400 million to support availability.

What I’m watching

There is not much here that makes me want to rush in.

The retail environment feels weak right now, and that is the part that usually needs to carry more weight.

At the same time, costs are starting to rise, which does not leave much room if growth slows.

I am more interested in seeing whether spending actually improves outside of the usual seasonal bumps.

I would want to see retail demand pick up again before taking a closer look.

The post Why this $5.7 billion ASX stock is getting sold off today appeared first on The Motley Fool Australia.

More reading

• Endeavour Group Q3 sales rise as retail and hotels gain ground
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• Buy, hold, or sell? Bubs, Soul Patts, and Endeavour shares
• Which of these ASX stocks near 52-week lows is worth buying?

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.

There are a lot of ASX shares to choose from on the local market.

To narrow things down, let’s see what analysts are saying about three big names, courtesy of The Bull.

Are they buys, holds, or sells this week? Let’s find out:

Aristocrat Leisure Ltd (ASX: ALL)

The team at Baker Young has labelled gaming technology company Aristocrat Leisure as a hold this week.

Although it thinks that its valuation is reasonable, it has a few concerns with promotional intensity. It said:

Aristocrat Leisure designs, develops and distributes gaming content, platforms and systems. The company has experienced a steep share price fall despite a solid underlying operational performance. Attention is likely to focus on promotional intensity and machine level margins in the upcoming interim result.

Outside the early COVID-19 period, the stock was recently trading towards the lower end of its historical range. Supported by a modest dividend yield and ongoing buy-back capacity, we consider the current valuation reasonable and maintain a hold position.

TPG Telecom Ltd (ASX: TPG)

Baker Young is more bullish on this telco and believes its shares could be a buy this week.

The broker highlights TPG Telecom’s strategic shift away from infrastructure ownership as a positive. And compared to peers, it feels that the company’s shares are attractively priced. It said:

Following several years of asset sales and restructuring, TPG has emerged as a more focused telecommunications provider with a stronger balance sheet and increasing exposure to the structurally attractive mobile segment, now contributing close to half of group revenue. Full year 2025 results highlighted accelerating subscriber growth and improving revenue per user, indicating positive operating momentum.

The company’s strategic shift away from infrastructure ownership and lower-margin fixed line broadband positions it for higher quality earnings growth. The stock screens as relatively attractive compared to peers.

Westpac Banking Corp (ASX: WBC)

Over at Fairmont Equities, its team has put a sell rating on Westpac shares this week.

It has concerns over current trading conditions, with higher interest rates potentially causing challenges for the bank. It said:

We had previously been bullish on the banks when they were trending higher from high levels of momentum. However, they are stalling at current levels. A recent trading update by WBC indicated economic conditions could be getting tougher in response to rising interest rates, inflation and potential fuel shocks. In our view, challenging economic conditions are likely to impact lending activity and credit quality. Even a robust dividend yield may not be enough to prevent a further slide in WBC’s share price.

The post Buy, hold, sell: Aristocrat, TPG Telecom, and Westpac shares appeared first on The Motley Fool Australia.

More reading

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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.

There are a certain group of ASX shares that are highly rated by multiple analysts at the same time.

If many investment professionals are attracted to a certain business, it could suggest there’s a significant opportunity.

We’re going to look at two businesses with the group of ASX shares that currently have the most buy ratings.

Coles Group Ltd (ASX: COL)

Coles is one Australia’s largest supermarket businesses. It also has a liquor division which includes Coles Liquor and Liquorland.

According to CMC Invest, there are currently 11 analyst buy ratings on Coles, with no hold ratings and no sell ratings.

The business recently announced its FY26 third-quarter update for the 12 weeks to 29 March 2026.

That third quarter saw supermarket growth of 4% to $9.78 billion, with comparable sales growth of 3.6%. Excluding tobacco, supermarket sales grew by 5.7%. Total revenue grew 3.1% to $10.7 billion, though liquor sales declined by 3.9% to $781 million.

Coles boasted that it achieved above market growth in supermarkets demonstrating “consistent execution over multiple years”.

The supermarket business also said that its e-commerce sales grew by 24.8%, with online penetration reached 13.6%.

Coles said that in the early part of the fourth quarter, supermarket sales revenue growth “remained broadly in line with the third quarter”, which provides a solid outlook for the ASX share.

The company noted that it has seen an increase in supplier cost price increase requests and higher costs within its own operations, particularly in fuel, freight and packaging. It’s actively managing this and will “will mitigate impacts where possible, while balancing the needs of customers and suppliers”.

According to the projection on CMC Invest, Coles shares are valued at under 25x FY26’s estimated earnings, with a possible grossed-up dividend yield of 4.9%, including franking credits.

Nextdc Ltd (ASX: NXT)

Nextdc describes itself as Asia’s most innovative data centre as a service provider – the ASX share is building the infrastructure platform for the digital economy, delivering the critical power, security and connectivity for global cloud computing providers, enterprises and government.

According to CMC Invest, it has seen recent 10 analyst buy ratings on the business, with no holds and no sells. Those analysts are expecting big returns from the business, with an average price target of $19.84 – that implies a possible rise of around 40% over the next year, from where it is at the time of writing.

The ASX share is seeing rapid growth of demand for its data centre services thanks to the growth of AI and cloud computing.

On 20 April 2026, the business reported that, as a result of recent customer contract wins, its pro forma contracted utilisation as at 31 March 2026 had increased by approximately 250MW (or 60%) to 667MW since 31 December 2025

Nextdc also said that its pro forma forward order book as at 31 March 2026 has increased by 247MW (83%) to 544MW since 31 December 2025.

The pro forma forward order book is expected to progressively convert to billing utilisation, revenue and operating profit (EBITDA) over FY26 to FY30. The ASX share continues to bank longer-term financial growth.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

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• Why are Coles shares falling today?

Motley Fool contributor Tristan Harrison 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 have been a shining light in what has otherwise been a turbulent 2026 for the ASX. 

The S&P/ASX 200 Materials Index (ASX: XMJ) is up 9% year to date. 

This has significantly outpaced the S&P/ASX 200 Index (ASX: XJO), which is almost even with where it began the year.

ASX materials stocks have outperformed in 2026 largely due to momentum from a strong 2025, elevated and sometimes rising commodity prices (especially metals tied to electrification), and investor rotation into inflation-resistant “real asset” sectors.

One such ASX materials stock that has enjoyed this sector outperformance is Nickel Industries Ltd (ASX: NIC). 

This ASX materials stock is a producer of nickel pig iron , a key ingredient in stainless steel. It is also engaged in exploring, mining, acquiring, and developing nickel projects globally.

Its share price is up 18% year to date and almost 80% over the last 12 months. 

More upside to come for this ASX materials stock

For those worried they missed the boat on this ASX materials stock, the team at Bell Potter are predicting more upside. 

In a recent report, the broker provided updated guidance following the company’s quarterly activities report.

The broker said NIC’s March 2026 quarter was broadly in line with expectations. 

It produced about 30,300 tonnes of nickel in NPI, slightly below forecasts, with attributable production also a bit under expectations. 

Costs were close to forecasts at around US$10,450 per tonne, but rose 4% from the previous quarter due to lower ore grades and higher electricity prices.

Additionally, the Hengjaya mine recovered strongly after earlier delays, selling about 3.0 million tonnes of ore, slightly above expectations.

Overall, NIC reported strong earnings, with EBITDA of about US$136 million – well above forecasts and up sharply from the previous quarter. 

Our key takeaway is the nickel price leverage demonstrated with this result. RKEF operations stood out, where EBITDA was up 145% from US$35m to US$86m, driven almost entirely by NPI pricing (up 19%) rather than volume (down 4%).

Buy recommendation unchanged 

Based on this guidance, Bell Potter has retained its buy recommendation on this ASX materials stock. 

The broker has also reaffirmed its price target of $1.450. 

From last week’s closing price, this indicates an upside potential of 40%. 

NIC offers nickel price leverage and diversified margin exposure across an integrated value chain. Retain Buy, our $1.45/sh Target Price is unchanged.

The post This ASX materials stock could be set to boom 40% or more appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
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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 up 6.7% over the past full year, with ASX All Ords gold stock Strickland Metals Ltd (ASX: STK) up 70% over those 12 months before Monday’s opening bell.

But stockholders are giving back some of those outsized gains today.

In early morning trade on Monday, Strickland Metals shares are down 11.8% trading for 15 cents apiece. The All Ords is down 0.1% at this same time.

This follows the release of the miner’s latest exploration update at its 100%-owned 8.6-million-ounce gold equivalent Rogozna Project, located in Serbia.

Here’s what’s happening on and under the ground.

ASX All Ords gold stock hammered on permit delays

This morning, Strickland reported that it has now finalised its drilling plans for 2026.

However, the ASX All Ords gold is under pressure after noting that it has not yet received the required final approvals from the Ministry of Mines and Energy for the expanded exploration drilling work plans covering its main (Shanac) license at Rogozna.

Despite this unexpected delay, Stickland said it is preparing to commence drilling in the coming weeks at two other prospects within Rogozna, where it has existing approval for the works.

The ASX All Ords gold stock said its overall exploration and drilling strategy at the project remains focused on supporting the Pre-Feasibility Study (PFS), which is targeting high value resource growth and testing high priority discovery targets.

And Strickland remains well-funded for ongoing exploration in 2026, reporting cash and liquid investments of $81 million as at 31 March.

What did Strickland Metals management say?

Commenting on the ASX All Ords gold stock’s 2026 drilling plans, Stickland Metals managing director Paul L’Herpiniere said:

We are very encouraged by the scale of opportunity emerging across the Rogozna Project, with our 2026 drilling plans designed to deliver meaningful resource growth and further strengthen the foundations of our Pre-Feasibility Study expected to be completed in mid-2027.

The results achieved during 2025 have reinforced our confidence in the high-grade potential across the project and we see significant upside through targeted infill and extension drilling, particularly within the gap zones, along strike and at depth.

Addressing the unexpected setback in the final approvals that is pressuring Strickland shares today, L’Herpiniere added:

While we have experienced some timing delays associated with the approval process for expanded drilling at the Shanac licence (which contains our resource deposits), we continue to advance a range of field-based activities and studies across the project.

Importantly, we retain the ability to commence near-term drilling at our Obradov Potok and Jezerska Reka Prospects, with a Magnetotelluric (MT) geophysical survey also set to commence imminently, ensuring exploration momentum is maintained.

The post Why is this high-flying ASX All Ords gold stock crashing 12% today? appeared first on The Motley Fool Australia.

More reading

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• Up 188% in a year, why is this ASX All Ords mining stock surging again today?

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.

National Australia Bank Ltd (ASX: NAB) shares are falling on Monday morning.

At the time of writing, the ASX 200 bank stock is down 1% to $39.36.

This follows the release of the big four bank’s half-year results before the market open.

NAB shares are falling on results day

Investors appear to be responding negatively to NAB’s half-year results, which showed modest earnings growth.

For the six months ended 31 March, NAB reported a statutory net profit of $2.75 billion and cash earnings of $2.64 billion. However, cash earnings were impacted by a $949 million after-tax large notable item relating to a change in the bank’s software capitalisation policy.

Excluding this large notable item, cash earnings were $3.59 billion, up 2.3% on the second half of FY 2025 and broadly flat compared to the prior corresponding period.

Its underlying profit grew at a strong rate of 6.4%. This was underpinned by a 3.1% increase in revenue compared with the second half of FY 2025 and a modest reduction in expenses (excluding the large notable item).

A key driver of this was its Business and Private Banking division, where cash earnings excluding large notable items rose 9.9% to $1.85 billion.

Dividend maintained

Income investors may be pleased to see NAB maintain its interim dividend.

The board has declared a fully franked interim dividend of 85 cents per share, which is in line with both the prior period and prior corresponding period.

This represents a cash dividend payout ratio of 72.5% when excluding large notable items, which remains broadly consistent with recent periods.

Balance sheet strengthened

NAB ended the half with a Common Equity Tier 1 capital ratio of 11.65%, down slightly from September 2025 but still above its target level.

The bank also reminded the market that its dividend reinvestment plan will include a 1.5% discount and be partially underwritten. Together, this is expected to raise approximately $1.8 billion and support a pro forma CET1 ratio of 12.05%.

This move appears to be designed to strengthen the bank’s capital position at a time of heightened geopolitical and economic uncertainty.

Credit provisions rise

One area investors will be watching is credit quality.

NAB’s credit impairment charge increased to $706 million, up from $485 million in the previous half. This included a $300 million increase in forward-looking provisions linked to potential stress from the Middle East conflict.

Despite this, NAB said underlying asset quality outcomes generally improved during the half.

Management commentary

NAB’s CEO, Andrew Irvine, was pleased with the half. He said:

Continued disciplined execution of our strategy and ongoing momentum across our business is reflected in NAB’s 1H26 operating performance. Changes to our software capitalisation policy this period, consistent with the rapidly changing technology environment, have lowered cash earnings by $949 million. Excluding this large notable item (LNI), cash earnings were 2.3% higher than 2H25 with underlying profit up 6.4% supported by strong growth of 5.4% in Business & Private Banking (B&PB).

We made further progress against our three key priorities of growing business banking, driving deposit growth and strengthening proprietary home lending in 1H26. Australian business lending rose 5.6% with market share gains in both SME and total business lending(1). Australian home lending drawdowns via proprietary channels improved from 41.4% in 2H25 to 47.7% in 1H26(2). Deposit balances in B&PB and Personal Banking (PB) increased 4.7% including 8.0% growth in transaction accounts (excluding offsets).

Irvine appears cautiously optimistic on the bank’s outlook. He adds:

Geopolitical tensions have created a more volatile macro economic environment. We enter this period in good shape and actions taken in 1H26 to bolster our balance sheet will allow us to continue to grow and support customers. […]

We are well placed to navigate a period of increased volatility. We will continue to manage our business for the long term to deliver sustainable growth and attractive returns for shareholders.

The post NAB shares fall despite $3.59 billion cash profit appeared first on The Motley Fool Australia.

More reading

• NAB posts higher cash earnings, keeps dividend firm
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• Which of the big four bank shares has the most upside?

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.

If you are searching for an ASX gold stock to buy with big potential, then it could pay to listen to what Bell Potter is saying about the one in this article.

That’s because if it is on the money with its recommendation, the gold developer’s shares could almost triple in value over the next 12 months.

Which ASX gold stock?

The gold stock that Bell Potter is recommending to clients with a high tolerance for risk is Santana Minerals Ltd (ASX: SMI).

Bell Potter highlights that the New Zealand-based gold developer has continued to de-risk the Bendigo-Ophir Gold Project. It said:

During the quarter, SMI completed a major capital raise ($130.0m at $0.90/sh), which has left it well-funded with $184m cash at quarter end and a further $17m settling in April. This has enabled SMI to commence permitted early site works and secure long-lead items, de-risking the development schedule for the Bendigo-Ophir Gold Project (BOGP). It also represents the equity funding component of pre-production CAPEX of $277m, with the balance expected to be debt funded.

The broker highlights that despite the de-risking, which normally boosts a share price, the ASX gold stock has retreated due to Fast-track Approval (FTA) Determination concerns. It said:

SMI has achieved major de-risking milestones during the quarter, securing a major portion of project funding and leveraging this to advance the development schedule. Exploration success also saw the estimation of an additional 0.5-1.5Moz Exploration Target, making a case for material mine life extension and reinforcing the economic significance of the BOGP.

Despite the technical progress, the share price has traded lower on perceived risk around the pending FTA Determination. In our view, the project is technically robust and designed to exacting standards and conditions. An encouraging precedent has been set with Newmont’s Waihi Gold Mine approved.

Huge potential returns

According to the note, Bell Potter has retained its speculative buy rating on the ASX gold stock with an unchanged price target of $1.70.

Based on its current share price of 57 cents, this implies potential upside of approximately 200% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

The BOGP is one of the most advanced and highest margin greenfield gold projects on the ASX. The BOGP has been further financially and technically re-risked during the quarter. We make no changes to earnings, valuation or recommendation.

The post This ASX gold stock is being tipped to rise almost 200% appeared first on The Motley Fool Australia.

More reading

• 6 ASX All Ords shares elevated to strong buy status after March sell-off

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.

Not every quality ASX share is a good buy at every price.

That is how I am thinking about parts of the ASX 200 right now. There are still high-quality businesses I would be happy to buy and hold, but there are also some names where I think the share price has run ahead of the opportunity.

With that in mind, here are two ASX 200 shares I would buy and two I would consider selling.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of the ASX 200 shares I would be happy buying for the long term.

The company owns a collection of high-quality businesses, including Bunnings, Kmart, Officeworks, and other industrial and healthcare operations. What I like is that these businesses give Wesfarmers exposure to everyday consumer spending, home improvement, value retail, and longer-term growth options.

But for me, the real attraction is not just the brands. It is the way Wesfarmers manages capital.

This is a company that has shown it can invest where returns are attractive, walk away from areas that no longer make sense, and keep reshaping the portfolio over time. That kind of discipline can be very valuable over a decade or more.

Bunnings remains the key engine, and I think it still has room to grow through network expansion, digital improvements, trade sales, and ongoing efficiency gains. Kmart also gives the group exposure to value-conscious consumers, which I think remains useful in the current environment.

Goodman Group (ASX: GMG)

Goodman is another ASX 200 share I would put in the buy column.

It owns, develops, and manages industrial property, with a strong focus on logistics warehouses and data centre opportunities. That combination is what makes it interesting to me.

The logistics side benefits from long-term demand for modern warehousing close to major cities. Supply chains are becoming more complex, and businesses need well-located facilities to move goods efficiently.

But the bigger growth angle now is data centres. Goodman owns land in strategic locations, and I think that gives it a powerful advantage as demand for digital infrastructure continues to grow. Artificial intelligence, cloud computing, and data-heavy applications all require significant physical infrastructure.

Westpac Banking Corp (ASX: WBC)

Westpac is a quality bank, and I don’t think this is a negative call on the business itself.

It has a large customer base, a strong deposit franchise, and an important role in the Australian financial system. It also remains a major dividend payer, which will appeal to many income investors.

But after a strong run, I think the valuation looks less compelling and I would be a seller rather than a buyer.

Santos Ltd (ASX: STO)

Santos is another ASX 200 share I would place in the sell column, despite it being a quality energy business.

The company has valuable oil and gas assets and exposure to global energy demand. It can generate strong cash flows when commodity prices are supportive.

But after a strong share price run, I think the investment opportunity here looks less appealing.

Foolish takeaway

For me, this comes down to price and positioning.

Wesfarmers and Goodman are the two I would buy because I think they have durable growth drivers and strong long-term compounding potential.

Westpac and Santos are quality businesses, but after strong runs, I think the risk-reward looks less attractive.

In a market like this, I would rather be selective than simply buy what has already been working.

The post 2 ASX 200 shares I’d buy and 2 I’d sell this month appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 3 ASX blue chip shares to buy with $10,000
• What happened with ASX 200 banks stocks NAB and CBA in April?
• Should you sell in May and stay away?
• How to invest $10,000 for passive income in superannuation

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

As the ASX heads for a relatively flat open this week, the team at Bell Potter has issued updated guidance on two ASX small-cap stocks. 

These options could attract investors looking for high upside companies. However, investors should also be aware of the volatility often experienced by small-cap stocks. 

Alpha HPA Ltd (ASX: A4N) 

A4N’s is an Australian mining company specialising in high purity alumina (HPA). HPA is a key component of lithium-ion batteries, LED lighting, and has other essential commercial applications.

A4N’s HPA First Project in Gladstone (Queensland) is aiming to supply high-purity aluminium-based products to the semiconductor, lithium-ion battery and light emitting diode (LED) manufacturing sectors. The project’s proprietary technology is expected to disrupt incumbent HPA production through delivering ultra-high purity products with significantly lower unit costs.

This ASX small-cap has dropped roughly 15% year to date, however did rebound during April. 

It closed last week at 65 cents per share. 

However the team at Bell Potter is anticipating a significant rise over the next 12 months. 

The broker has a price target of $1.50, along with a speculative buy rating. 

This target indicates an upside potential of 130%. 

Much of this optimism was reinforced by the company’s recent quarterly activities report. 

The broker said the March 2026 quarterly report illustrates increasing interest and demand for its high purity aluminium products from the semiconductor sector. 

Quarterly sales from the Stage 1 facility increased to 4.2t (prior quarter 2.0t), at a weighted average unit price of US$30.53/kg (prior quarter US$28.85/kg).

A4N’s process delivers products with unmatched purity and bespoke morphology which provide value-in-use advantages in these applications. The rollout of AI data centres is driving demand for higher computing efficiency; A4N is increasingly leveraged to this theme.

Strike Energy Ltd (ASX: STX)

Strike Energy Ltd. engages in the exploration and development of oil and gas resources. Its projects include Copper Basin and Perth Basin.

This ASX small-cap has fallen significantly in the last 12 months, but is receiving a positive outlook from Bell Potter. 

Over the past year, its share price has fallen 33%. 

It closed last week at 12 cents per share. 

However, the team at Bell Potter has a speculative buy rating. Additionally, the broker has a price target of 16 cents, indicating a 33% upside. 

The broker said this ASX small cap is leveraged to the Western Australia energy market where electricity and gas prices are expected to remain supportive.

The post Two ASX small-caps to add to your watch list this week appeared first on The Motley Fool Australia.

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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.