Author: openjargon

Beating the market is a challenging proposition, so it pays to turn to the experts if you’re looking for shares which might be undervalued.

I’ve had a look at the research coming out of Macquarie over the past week and selected three ASX shares which the analyst team thinks will do well, and which they believe can deliver about 50% upside, and 77% in one case.

Let’s see who they’re tipping to perform.

James Hardie Industries Plc (ASX: JHX)

The building products maker reported its full year results this week, and the shares initially fell after it was revealed  net profit attributable to shareholders was down 75% to US$104 million.

But the analysts have looked through the results, and picked up on the fact that underlying EBITDA was above the guidance range, and the synergies from the company’s takeover of US company AZEK were being realised.

 The Macquarie team said:

Cost and operational execution was solid, with productivity benefits from operational improvements and plant optimisation (including a coming ~$25m from closures) helping offset volume pressure.

Macquarie said there were some soft elements in the business, and the US market looked challenging.

They reduced their price target on the company to $39.60, but this remains well above the $28.87 the shares were changing hands for on Friday.

Jumbo Interactive Ltd (ASX: JIN)

Macquarie has also cut its price target for this ASX share, but again, the price target is still much higher than where the shares are trading right now.

Jumbo is a lotteries technology and management company, and Macquarie said trackable Australian lotteries volumes were down 2% year on year.

Macquarie said the majority of Jumbo’s revenue comes from a reseller agreement with Lottery Corp, which is up for renewal in August 2030.

The analyst team said Jumbo shares were trading on a valuation which suggested the renewal did not take place, “providing a free option on the outcome”.

Macquarie values Jumbo shares at $10.50 compared with $7.08 currently.

Web Travel Group Ltd (ASX: WEB)

Once again, Macquarie has downgraded its price target for this ASX share, but their target is particularly bullish on this travel operator.

Macquarie said Web Travel Group is exposed to the Middle Eastern market which presented risk at the moment, “as traveller caution remains high, and the region is having difficulties restimulating demand”.

The Macquarie team also said the company was exposed to foreign exchange headwinds from the strong Australian dollar and also mentioned the uncertainty around a recently-revealed audit of the company’s Spanish operations.

They said:

Whilst near-term visibility is low due to travel market disruption and Spanish audit uncertainty, we remain constructive on WEB’s ability to improve margins when the travel market recovers, as it scales over the medium term.

Macquarie has a price target of $4.34 on Web Travel Group shares compared with $2.37 currently.

The post Macquarie names 3 ASX shares to buy for 40%+ returns appeared first on The Motley Fool Australia.

More reading

• 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
• Buy, hold, sell: James Hardie, TechnologyOne, and Webjet shares
• Sell alert! Why this expert is calling time on Temple & Webster and James Hardie shares

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 Jumbo Interactive. The Motley Fool Australia has recommended Jumbo Interactive. 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 0.5% higher at 8,662.2 points on Friday.

Among the 11 market sectors, materials is in the lead today, up 1%, while utilities is the laggard, down 1%.

Let’s take a look at some stocks that have received renewed buy recommendations from the experts this week.

Tuas Ltd (ASX: TUA)

The Tuas share price is $2.27, down 1.7% today.

The ASX 200 telco share is down 63% since news dropped that the company has allegedly been using spectrum it doesn’t own.

Morgan Stanley kept its buy rating on Tuas shares with a $10 target this week.

This implies a massive potential capital gain of 325% over the next year.

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

The Dalrymple Bay Infrastructure share price is $5.60, down 0.8% today.

Over the past six months, this ASX 200 industrial share has leapt 25%.

Citi reaffirmed its buy rating and raised its 12-month target from $5.75 to $6.10 on Thursday.

This suggests a potential 8% upside ahead.

Graincorp Ltd (ASX: GNC)

The Graincorp share price is $4.75, up 0.9% today.

This ASX 200 agribusiness share has tumbled 45% over six months.

Canaccord Genuity renewed its buy rating with a $6.88 target on Monday.

This implies potential capital growth of 45% over the next year.

Megaport Ltd (ASX: MP1)

The Megaport share price is $12.98, up 1.2% today.

Over the past month, this ASX 200 technology share has ripped 48% higher.

Morgans renewed its buy rating and raised its target from $13.50 to $15.50 this week.

This suggests a potential 19% upside ahead.

The broker commented:

MP1 has announced a series of large contract wins which are financially and strategically significant.

MP1 will use its globally unique communications platform to connect servers and GPU clusters in numerous DCs across the US.

DC power constraints are a growing issue and MP1 was uniquely able to stitch together multiple sites to provide consolidated inference solutions.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The Electro Optic Systems share price is $8.98, up 12% on Friday.

Over the past month, this ASX 200 defence share has fallen 16%.

Canaccord Genuity renewed its buy rating and raised its target from $12.50 to $14 this week.

This suggests a potential 24% upside ahead.

Charter Hall Group (ASX: CHC)

The Charter Hall share price is $19.35, up 0.5% today.

This real estate investment trust (REIT) has declined 21% over the year to date.

Morgan Stanley reiterated its buy rating with a price target of $26.89 on Monday.

This implies a potential near-40% upside ahead.

James Hardie Industries plc (ASX: JHX)

The James Hardie share price is $29.10, up 4% today.

This building materials supplier is the largest non-mining company in the ASX 200 materials sector.

James Hardie shares have fallen 19% over 12 months.

This week, James Hardie released its FY26 results.

Amid subdued construction activity, broker Morgans said FY26 could 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”.

Morgans reiterated its buy rating with a price target of $39.

This implies potential capital gains of 34% ahead.

The post 7 ASX shares with strengthened buy ratings this week appeared first on The Motley Fool Australia.

More reading

• Tuas terminates M1 acquisition
• Which of these shares hitting 52-week lows can bounce back?
•  3 ASX shares that could be future blue chips
• 3 ASX 200 shares I’d buy before the market wakes up
• Here are the top 10 ASX 200 shares today

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 Electro Optic Systems and Megaport. 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.

Investors will have to wait until next week to see where Arafura Rare Earths Ltd (ASX: ARU) shares trade next.

The ASX rare earths stock was placed in a trading halt on Friday after unveiling a major funding update for its Nolans project in the Northern Territory.

Arafura shares last changed hands at 31 cents, leaving the stock up around 15% in 2026 and almost 90% over the past year.

After such a strong run, investors now have a major capital raising to weigh up.

Let’s take a closer look.

A big raise at a discount

According to the release, Arafura has launched a $350 million institutional placement and a $25 million share purchase plan (SPP).

The placement will be priced at 26 cents per new share.

That is a 16.1% discount to the company’s last closing price of 31 cents and a 15.5% discount to its 5-day volume weighted average price.

The placement will be split into 2 tranches. The first is expected to raise $175.5 million, while the second is expected to raise $174.5 million.

Existing eligible shareholders will also be able to apply through the SPP at the same 26 cents price.

Arafura’s largest shareholder, Hancock Prospecting, has committed to subscribe for about $85 million under the placement.

After the raising, Hancock is expected to hold around 17.5% of the company.

What the money is funding

The money is aimed at pushing the Nolans Project in the Northern Territory closer to construction.

Arafura says the placement, together with existing cash and other funding commitments, will fully fund the equity component needed for the project.

Once the placement is settled, the company expects to have a pro forma cash balance of about $911 million.

The update follows Arafura’s final investment decision (FID) on Nolans, which the company describes as the world’s third fully integrated rare earth ore-to-oxide operation outside mainland China.

Rare earths are used in electric vehicles, wind turbines, defence, robotics, phones, medical imaging, and other technology.

Arafura says Nolans is construction-ready, has approvals in place, and has a mine life of more than 38 years.

The company is targeting the start of construction around September 2026.

Funding support takes shape

Arafura says the raising will also help satisfy equity conditions linked to government-backed funding support in Australia and Germany.

The company also pointed to further progress with offtake, saying it has now secured about 93% of its binding offtake target.

This includes agreements and support involving customers and agencies across Europe, Korea, Australia, and the United States.

Still, Nolans is a big project to deliver.

It will require major capital spending, careful construction, and higher rare earths prices that support development.

The post This ASX rare earths stock is halted after a monster 12-month run appeared first on The Motley Fool Australia.

More reading

• This ASX rare earths stock is rocketing 14% on big news
• Why Arafura, Aristocrat, BHP, and Perenti shares are racing higher today
• Up 106% in a year, why is this ASX 300 rare earths stock leaping higher again 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.

I would not say any ASX growth share is guaranteed to double in value. Far from it. Valuations can change, earnings can disappoint, and even strong companies go through rough patches.

But I think the three ASX growth shares in this article have the potential to grow at a rate that could support a doubling in under seven years.

That would need a return of just over 10% per year. Here’s why I think they could achieve this.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is one of the more interesting global retail growth stories on the ASX.

The jewellery retailer has already expanded into more than 50 markets, but I do not think the store rollout opportunity is finished. In fact, that is the main reason I think the business could still have a lot of growth ahead.

Lovisa’s model is attractive because it is simple, repeatable, and relatively capital-light compared with many larger-format retailers. It sells affordable fashion jewellery, has small stores, and can take the format into many different shopping centres and markets around the world.

It opened 85 new stores in the first half of FY26, with strong growth across Europe and the Americas.

Importantly, it achieved this with an attractive margin profile. Lovisa reported an underlying gross margin of 82.9% in the half. That gives the business a lot of room to invest in growth while still producing strong profitability.

There are risks. Retail execution matters, consumer spending can weaken, and international expansion is never easy. But if Lovisa can keep opening profitable stores and improving performance in existing markets, I think the business could be materially larger by the early 2030s.

Breville Group Ltd (ASX: BRG)

Breville is another ASX growth share I think has the right ingredients to outperform.

This is not just an appliance business. I think of Breville as a premium global consumer brand built around product quality, design, and the at-home coffee trend.

Coffee remains a major part of the growth story. Many consumers are still willing to spend on better machines, grinders, and accessories if it improves their daily routine. Breville has built a strong position in that market, particularly with its espresso machine range.

The company’s record first-half performance was driven by double-digit revenue growth led by coffee. While tariffs have created pressure, Breville has been working through production diversification, pricing, and distribution mix to reduce the impact.

This is not a risk-free story either. Currency, tariffs, freight, consumer weakness, and competition can all affect earnings. But I think Breville has the kind of brand strength and global runway that could support strong long-term compounding if management keeps executing well.

Netwealth Group Ltd (ASX: NWL)

Netwealth is the third ASX growth share I think could double in under seven years.

The wealth platform business benefits from a powerful long-term trend. Financial advice is becoming more complex, and advisers need efficient platforms to manage client portfolios, reporting, administration, managed accounts, and investment options.

Netwealth has built a strong position as an independent platform, and its recent quarterly update showed the momentum is still there.

Total funds under administration reached $125.8 billion at the end of March, up 20.9% on the prior corresponding period. The company also reported $4 billion of net flows for the quarter, which helped offset weaker market movements.

That tells me the platform is still winning support from advisers and clients, even during volatile markets.

The key risk for me is valuation. High-quality platform businesses often trade on demanding multiples, so earnings need to keep growing. Competition from other platforms also remains a factor.

But if Netwealth can keep winning flows, adding accounts, and increasing platform scale, I think the long-term opportunity remains attractive.

Foolish Takeaway

I would not buy these ASX growth shares expecting a smooth ride. Lovisa depends on retail execution, Breville is exposed to global consumer demand, and Netwealth needs to keep attracting adviser flows in a competitive market.

But I think all three have genuine growth runways.

A doubling in under seven years is a high bar, but it does not require miracles. It requires strong businesses to compound faster than 10% per annum. In my view, these three ASX shares have enough quality, market opportunity, and growth potential to make that outcome possible.

The post 3 ASX growth shares I think can double in under 7 years appeared first on The Motley Fool Australia.

More reading

• Analysts say these ASX shares could rise 50% to 75%
• 3 ASX shares that could be much bigger in 10 years
• 3 ASX 200 shares I’d buy with $20,000
• Macquarie says these two ASX 200 companies will benefit from AI, in very different ways
• Buy, hold, sell: Aristocrat, Breville, and Healius shares

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

Some ASX shares are exciting because they are chasing fast growth, new technology, or a major turnaround.

Others are far less exciting.

That is how I would describe Amcor plc (ASX: AMC). It makes packaging. That may not sound like the most thrilling business on the ASX 200, but boring can be useful when it comes with a large dividend yield and defensive demand.

Amcor shares have fallen around 25% over the past 12 months. At the current share price of $53.88, I think income investors may want to take a closer look.

A big dividend yield

According to CommSec, the consensus estimate is for Amcor to pay dividends per share of $3.62 in FY26.

Based on the current share price of $53.88, that would represent a forward dividend yield of approximately 6.7%.

The forecast dividend is then expected to ease to $3.23 per share in FY27 and rise slightly to $3.30 per share in FY28. That would still imply forward yields of around 6% and 6.1%, respectively, based on today’s share price.

Those are large yields in my view.

Of course, estimates can change. Dividends are never guaranteed, and Amcor’s distributions are unfranked, which may reduce the appeal for some Australian income investors compared with fully-franked ASX dividend shares.

But even after allowing for that, I think the forecast income looks attractive.

Defensive packaging demand

The second reason I think Amcor is an interesting ASX 200 dividend share is the nature of its business.

Amcor makes packaging and dispensing products used across areas such as food, beverages, healthcare, nutrition, beauty, wellness, and consumer goods.

That is not a glamorous business, but it is tied to everyday demand.

People still eat, drink, take medicine, buy household products, and use personal care items in weaker economic periods. That does not make Amcor immune to volume pressure, customer changes, input costs, or currency movements. But it does mean the company is exposed to categories that can be more resilient than many discretionary sectors.

The recent quarterly update showed the business facing some challenges, including lower volumes and the impact of the Middle East conflict on cash flow expectations. But it also showed the benefits of scale following the Berry acquisition, with higher adjusted earnings and ongoing synergy delivery.

I do not think investors need to obsess over one quarter. The more important point is that Amcor is a very large global packaging business with customers across essential product categories.

The sell-off may have created value

The third reason is valuation.

A 25% share price fall can be a warning sign. It may signal that investors are worried about debt, integration risks, weaker volumes, or the outlook for cash flow.

Those risks are worth taking seriously, particularly after a large acquisition. Amcor needs to keep delivering on integration benefits while protecting its balance sheet and still funding dividends.

But a lower share price also means the dividend yield has become much more attractive, as I discussed above.

This is where I think the business’ boring nature could actually work in shareholders’ favour. Amcor does not need to become the next market darling to produce a solid return. If it can keep generating cash, deliver merger benefits, and support a healthy dividend, investors buying today could be well rewarded as sentiment slowly improves.

Foolish Takeaway

I would not call Amcor a perfect ASX 200 dividend share. The dividend is unfranked, volumes are not especially strong, and the Berry integration still needs to be handled well.

But I do think it could be a strong buy for investors seeking a big yield from a defensive global business.

The share price fall has made the income case much more appealing. And while packaging may never be exciting, that is not really the point. Sometimes, a boring business with a large dividend yield is exactly the kind of share worth paying attention to.

The post Could this boring ASX 200 dividend share be a strong buy for its big yield? appeared first on The Motley Fool Australia.

More reading

• 3 excellent ASX dividend shares for income investors to buy in May
• Should investors buy low on these ASX shares hitting 52-week lows?
• Why did this broker just lower its price targets on these ASX shares?
• Should you buy Amcor shares for the 7% dividend yield?
• What does Macquarie say Amcor is worth after this week’s quarterly?

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Appen Ltd (ASX: APX) shares are back in the green on Friday after the artificial intelligence (AI) data company gave investors a closer look at its turnaround.

At the time of writing, the Appen share price is up 8.93% to $1.22.

That move comes after a rough month for shareholders, with the stock down around 25% over the past 4 weeks.

Despite the recent slide, Appen shares are still up about 50% in 2026.

So, what did Appen tell the market today?

Why AI demand is driving the update

At today’s Annual General Meeting (AGM), Appen Chief Executive Ryan Kolln focused heavily on the company’s role in the AI market.

Appen provides data used to build and improve AI models. That includes human-generated data, model evaluation, speech and audio work, computer vision, coding tasks, and reinforcement learning environments.

The company argues that this work is becoming increasingly valuable as AI models move beyond public data and require more specialised inputs.

As AI models become more advanced, they need more than internet data. They also need people to review answers, test outputs, label information, check quality, and build datasets in complex areas.

Appen said it is already winning work in areas such as robotics annotation, coding vulnerability testing, reinforcement learning environments, multilingual audio models, and multimodal evaluation.

After years of pressure on revenue and margins, the question now is whether Appen can turn that AI demand into steadier growth.

China growth helps the result

The FY25 result gave investors a few signs that the business is stabilising.

Appen reported group revenue of $230.8 million for FY25, up 4.5% on FY24 when excluding the impact of Google.

Underlying EBITDA before foreign exchange (FX) impacts came in at $12.2 million, up 251% on the prior year.

Gross margin also improved to 40.3%, helped by a better mix of generative AI projects.

Appen China was a strong part of the result, with FY25 revenue rising 75% to $102.9 million. Underlying EBITDA before FX lifted to $10.6 million, with the business benefiting from new and expanding LLM-related projects.

Appen Global was still weaker over the full year, with revenue down 21% to $127.9 million. However, management pointed to a much stronger fourth quarter, helped by generative AI work and cost savings.

FY26 guidance stays in place

The other key point from today’s update is that Appen has reaffirmed its FY26 guidance.

The company continues to expect revenue of $270 million to $300 million.

It is also targeting an underlying EBITDA margin before FX of around 5% to 10%.

Management said the business continues to see positive signals from LLM-related growth across Appen Global and Appen China.

Furthermore, Appen is also trying to keep costs under control while putting money behind the areas showing revenue growth.

Foolish bottom line

Appen is still a highly volatile stock, but today’s update gives investors a few reasons to stay positive.

The company is now seeing stronger demand from AI customers, China is growing quickly, and underlying EBITDA has improved.

The next test is whether Appen can turn the current AI demand into more consistent revenue growth.

The post This ASX AI stock is surging 9% today after a wild month appeared first on The Motley Fool Australia.

More reading

• These under-the-radar ASX AI shares are starting to turn heads
• Why Appen, Gentrack, Magellan, and Regis Resources shares are falling today
• Why Appen, Catalyst Metals, South32, and Woolworths shares are sinking today
• Why Appen shares just crashed 28% despite a return to growth

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 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.

ASX gold stock Felix Gold Ltd (ASX: FXG) is sliding today.

Felix Gold shares closed yesterday trading for 37 cents. In early morning trade on Friday, shares are swapping hands for 36 cents apiece, down 2.7%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.5% at this same time.

Even with today’s intraday loss factored in, the Felix Gold share price is up a whopping 166.6% since this time last year, smashing the 3.6% 12-month gains delivered by the All Ords.

Here’s what the miner just reported.

ASX gold stock slips despite promising drill results

The Felix Gold share price is slipping after the miner announced the final gold and antimony assay results from its 2025 exploratory drilling campaign at its NW Array prospect.

The prospect is located within the ASX gold stock’s Treasure Creek Project, located in the US state of Alaska.

The latest results from the diamond and reverse circulation (RC) drilling confirmed multiple zones of near-surface gold mineralisation. According to the release, that includes higher-grade gold mineralisation within zones of several orientations, as well as broad, lower-grade mineralisation.

The drilling also intercepted new antimony veining zones.

While I’ll assume you’re familiar with gold, that may not be the case for antimony. The silvery metalloid is often used in batteries and to strengthen other metals, including lead. And, crucially for miners like Felix Gold, the United States currently has no secure domestic antimony supply.

Among the top gold results from one drill hole, the ASX gold stock reported 9.1 metres at 1.92 grams of gold per ton from 3.38 metres and 29.26 metres at 2.16 g/t Au from 13.41 metres.

Top antimony results included 2.53 metres at 4.34% antimony, including 0.50 metres at 20.85% Sb.

What did Felix Gold management say?

Commenting on the assay results that have yet to lift the ASX gold stock today, Felix Gold executive director Joseph Webb said, “These final 2025 gold assays close out a drilling year that has delivered consistently on both sides of the NW Array story.”

As for the critical antimony element, he noted:

Felix Gold is building America’s ‘Antimony Solution’, and the gold sitting alongside that antimony in the same structures and drill holes is a meaningful component of the asset’s strategic value.

Webb added:

The 2025 program has now defined gold mineralisation across the central and southern parts of the prospect, and these results add a substantial near-surface intersection in 25TCDC064 – 29.26 metres at 2.16 g/t gold from 13.4 metres, with a 21-metre central zone grading 2.83 g/t.

By any district benchmark that is a meaningful width and grade combination, and it sits inside a system where antimony mineralisation has already delivered some of the highest grades reported globally.

The post Up 167% in a year, why is this ASX gold stock sinking today? appeared first on The Motley Fool Australia.

More reading

• This ASX AI stock is surging 9% today after a wild month
• How to build a $20,000 ASX share portfolio with $100 a month
• Why are Guzman Y Gomez shares surging more than 15% higher?
• Fletcher Building: Construction division sale now unconditional
• Upgrade alert! Top broker upgrades this small-cap ASX share and predicts 75% upside

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.

If you are starting out with investing and want to build a $20,000 ASX share portfolio, I have some good news.

Building a meaningful ASX share portfolio does not require a large starting balance. For many investors, the more realistic path is to start small, invest regularly, and allow compounding to do the heavy lifting over time.

Even $100 a month can make a noticeable difference when it is invested consistently.

The key is patience. A $20,000 portfolio will not happen overnight. But with time, discipline, and sensible diversification, small monthly investments can grow into something far more substantial.

The power of regular investing

Investing $100 a month may not sound like much at first. Over a year, that adds up to $1,200. Over five years, it is $6,000 before any investment returns are included.

The benefit of investing monthly is that it builds a habit. It also means investors are buying through different market conditions. Sometimes prices will be high, sometimes they will be lower. This is known as dollar-cost averaging.

Dollar-cost averaging does not guarantee a profit or protect against losses. But it can remove some of the pressure of trying to pick the perfect moment to invest.

Instead of waiting for the market to look attractive, investors can steadily put money to work in ASX shares or ETFs that suit their goals and risk tolerance.

How long could it take?

Let’s assume an investor puts $100 a month into the ASX and earns an average annual return of 10%.

That return is broadly in line with long-term share market averages, though it is important to remember that it is not guaranteed. Some years will be much stronger, while others could be negative.

Based on that assumption, it would take around 10 years to build a portfolio worth approximately $20,000.

What could investors buy?

One simple approach is to use ASX exchange traded funds (ETFs). These can provide exposure to hundreds or even thousands of stocks in a single investment.

For example, a broad Australian shares ETF could provide exposure to major local companies like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA), while a global shares ETF could add international diversification.

Growth-focused investors may also consider ETFs that provide exposure to areas such as technology, healthcare, or quality global companies. This could mean funds such as Betashares Global Cybersecurity ETF (ASX: HACK) or VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT).

Individual ASX shares can also play a role, but diversification becomes especially important when starting with smaller monthly amounts. Putting too much money into one company can increase risk if that business disappoints.

The aim is to build a sensible collection of assets that can grow over time.

Staying the course

The biggest challenge may not be finding $100 a month. It may be staying invested when markets fall.

Share markets can be volatile, and there will be periods when portfolio values decline. That is normal. For long-term investors, those periods can also provide opportunities to buy at lower prices.

Foolish takeaway

A $20,000 ASX share portfolio is an achievable goal for investors who start small and stay consistent.

With $100 a month, a long-term mindset, and diversified investments, investors can start building wealth.

The post How to build a $20,000 ASX share portfolio with $100 a month appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended BHP Group and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Guzman Y Gomez Ltd (ASX: GYG) shares are charging higher on Friday after the company announced it would exit the US market.

The fast food operator said in a statement to the ASX that it would cease trading its restaurants in Chicago immediately.

Not up to scratch

The company said that while genuine progress had been made in the US market, the operations were not hitting the required benchmarks.

The company said:

GYG has been consistent and transparent about the thresholds the business needed to meet to prove concept in the US. Notwithstanding the progress made by the team on brand and guest experience, the financial performance of the US business has not been acceptable and is not meeting targeted hurdles.

The decision to exit the US market will cost the company US$30 to US$40 million.

GYG Co-Chief Executive Officer Steven Marks said:

I have always been confident in the differentiation of our food and guest experience, however this was not translating to an improvement in sales momentum. Having spent the last 3 months in the US, I realised this was going to take significantly more time and capital than we had expected. In assessing the trajectory of the current network, the Board and I have concluded that the business is unlikely to deliver the performance that would justify continued investment of shareholder capital.

The company said it was the board’s view that the Australian business was in a solid position, with strong growth, “world class unit economics and a significant network growth opportunity”.

The company added:

The quantity and quality of sites in the real estate pipeline continues to grow and GYG remains on track to open 32 restaurants this financial year. In an update to its full year guidance, GYG expects to deliver Australia Segment underlying EBITDA of approximately $85 million in FY26, representing 29% growth on the prior year.

Future still looks bright

Mr Marks said the company had a long runway ahead of it as it sought to hit its long-term target of 1,000 restaurants and underlying EBITDA as a percentage of network sales of 10%.

The company said the decision to exit the US did not mean the company had lost faith in its international ambitions.

The company said:

The decision to exit the US does not alter the Board’s conviction in the global appeal of the GYG brand, or in the long-term opportunity to expand into new geographies in a disciplined and deliberate manner. The performance of GYG’s master franchise markets reinforces the Board’s confidence. In Singapore and Japan, our master franchise partners continue to deliver strong sales growth and healthy unit economics. Both markets are planning new restaurant openings in the next 12 months, with Singapore opening its 24th restaurant earlier this week.  

Guzman Y Gomez shares were 15.4% higher in early trade at $20.86. The company is valued at $1.83 billion.

The post Why are Guzman Y Gomez shares surging more than 15% higher? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Fletcher Building Ltd (ASX: FBU) share price is in focus today as the company announces all conditions have been met for the sale of its Construction Division, now set to complete on 29 May 2026. The transaction price increased to approximately $334 million after new contract signings.

What did Fletcher Building report?

• Sale of Construction Division to VINCI Construction is now unconditional
• Completion of transaction scheduled for 29 May 2026
• Purchase price increased from $315.6 million to around $334 million
• Revised price depends on working capital and net debt adjustments

What else do investors need to know?

The sale price rose as Higgins Contractors signed new Integrated Delivery Contracts covering East Waikato, Bay of Plenty, and Hawkes Bay regions. These additional contracts represent ongoing positive performance in the Construction Division prior to the sale.

Fletcher Building will continue to update shareholders as the transaction progresses towards completion. The divestment is aligned with Fletcher Building’s broader strategy to streamline its business and focus on its core strengths.

What’s next for Fletcher Building?

With the sale now unconditional, Fletcher Building will focus on finalising adjustments for working capital and net debt as part of settlement with VINCI Construction. The transaction’s completion on 29 May 2026 will allow Fletcher Building to redeploy capital and sharpen its business focus across its remaining operations.

Investors may look for further updates regarding use of proceeds and any new strategic initiatives following the divestment.

Fletcher Building share price snapshot

Over the past 12 months, Fletcher Building shares have declined 19%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post Fletcher Building: Construction division sale now unconditional appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.