Author: openjargon

With May just around the corner, I have been thinking about where I would put fresh money to work in the current market.

If I had $5,000 to invest, I would be looking for a mix of scale, earnings potential, and clear drivers over the next few years.

Here are three ASX 200 blue-chip shares I would consider.

Sigma Healthcare Ltd (ASX: SIG)

Sigma has changed a lot over the past couple of years.

The Chemist Warehouse merger has transformed the business into a much larger and more integrated healthcare and retail platform. That has created a very different earnings profile compared to Sigma’s past.

What I find interesting is how this positions the company going forward.

It now has significant exposure across both wholesale distribution and retail pharmacy, which can create scale benefits and improve margins over time. As the integration progresses, there is also potential for cost savings and operational improvements.

With earnings expected to grow strongly over the next few years, I think Sigma could look very different as the combined business settles in.

BHP Group Ltd (ASX: BHP)

BHP is one of the largest and most established companies on the ASX, and I think it offers a compelling setup right now.

Iron ore continues to generate strong cash flow, but copper is becoming the most important contributor. And with demand growing due to electrification and infrastructure, copper could be a meaningful growth driver over the next decade.

There is also the Jansen potash project, expected to come online in mid-2027, which adds another long-term growth lever.

When I look at those pieces together, I see a business that is positioning itself for where demand will be strong in the future.

Qantas Airways Ltd (ASX: QAN)

Qantas is another ASX 200 blue-chip share I’d consider in May.

The airline operates in a relatively rational domestic market, which supports pricing and profitability. At the same time, demand for travel remains strong, both domestically and internationally.

One area I think is important is its fleet renewal program. Management has described it as the largest in the company’s history, with newer aircraft expected to improve fuel efficiency and reduce operating costs over time. That should support margins and earnings as the program progresses.

Qantas has also been strengthening its balance sheet and returning capital to shareholders, which I think adds another layer to the investment case.

Foolish takeaway

If I were putting $5,000 to work in May, I would look for strong, long-term opportunities.

Sigma offers exposure to a transformed healthcare and retail platform, BHP provides scale, strong cash flow, and long-term commodity demand, and Qantas adds a business with strong demand, improving efficiency, and ongoing investment in its future operations.

Together, I think they offer a balanced way to approach the market right now.

The post 3 ASX 200 blue-chip shares I’d buy with $5,000 in May appeared first on The Motley Fool Australia.

More reading

• How to generate monthly income using ASX ETFs
• Is the Qantas share price a buy? Here’s an expert’s view
• 5 years ago, $5,000 bought 118 BHP shares. How many would it buy now?
• 2 ASX mining shares to buy with $2,000
• Why Black Cat, Mirvac, Qantas, and Temple & Webster shares are falling today

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

ASX 200 energy shares are leading the market again today as investors feel increasingly pessimistic that the Iran war will end anytime soon.

The benchmark S&P/ASX 200 Index (ASX: XJO) is down 0.34%, while the S&P/ASX 200 Energy Index (ASX: XEJ) is up 1.3%.

The only other market sector in the green today is utilities.

ASX 200 utilities shares are up 1.1%, indicating the appeal of defensive shares amid the ongoing global energy shock.

A second round of negotiations between the US and Iran in Islamabad is expected to begin within days.

However, investors appear unconvinced that a resolution is near.

This lack of confidence is reflected in the ASX 200’s fourth consecutive day in the red.

ASX 200 shares are down 2.2% since Monday’s close.

Energy commodity prices up 15% to 18% this week

We’ve also seen a sharp increase in energy commodity prices this week.

The Brent Crude oil price has lifted 17.6% this week to US$106.31 per barrel, at the time of writing.

The WTI Crude oil price has also risen 17.3% to US$96.91 per barrel.

Also this week, US heating oil is up 18.1%, US gas prices are up 15.7%, and European gas prices are up 15.1%.

The price spike reflects continued supply disruption, with the Strait of Hormuz remaining effectively shut down.

The scale of the price increase likely also reflects market pessimism that the conflict will be resolved quickly.

Trading Economics analysts said the stalled US-Iran talks and military activities in the Strait were raising anxiety over fuel supply.

Reports indicated that President Donald Trump’s Truth Social posts, along with his decision to maintain a naval blockade of Iranian ports, have complicated prospects for renewed negotiations with Tehran.

In a post on Thursday, Trump said he had ordered the US Navy to “shoot and kill” vessels laying mines in the strait, while US forces also boarded a supertanker carrying Iranian oil in the Indian Ocean.

The ceasefire has been extended indefinitely, with the US claiming it is awaiting a revised peace proposal from Iran.

The US blockade of Iranian ports continues, which means Iran cannot export any of its own oil to its biggest buyer, China.

The effective shutdown of the Strait of Hormuz has disrupted 20% of the world’s oil and gas exports.

How are ASX 200 energy shares performing today?

At the time of writing:

The Woodside Energy Group Ltd (ASX: WDS) share price is up 1.9% on Friday to $32.38.

The Santos Ltd (ASX: STO) share price is $7.83, up 1.5% today.

Karoon Energy Ltd (ASX: KAR) shares are 1.6% higher at $2.24, after reaching a two-year high of $2.26 in earlier trading.

The Ampol Ltd (ASX: ALD) share price is 2.1% higher at $34.19.

The Viva Energy Group Ltd (ASX: VEA) share price is up 2.3% to $2.40.

Beach Energy Ltd (ASX: BPT) shares are up 1% to $1.23.

The post ASX 200 energy shares lift as pessimism over Iran war deepens appeared first on The Motley Fool Australia.

More reading

• Why the Woodside share price has climbed 40% in 2026
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• What key update is fueling Ampol shares today?
• Why Deep Yellow, Develop Global, Resolute Mining, and Santos shares are pushing higher today

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

Newmont Corporation (ASX: NEM), PLS Group Ltd (ASX: PLS), and Fortescue Ltd (ASX: FMG) shares are making financial headlines on Friday.

Two of the large-cap ASX shares are racing ahead of the 0.6% losses posted by the S&P/ASX 200 Index (ASX: XJO) during the Friday lunch hour while one is trailing those losses.

Here’s what’s grabbing investor interest today.

Fortescue shares slide on shipments dip

Fortescue shares are taking a hit today, down 3.8% at $20.16 apiece.

This follows the release of the ASX 200 mining stock’s March quarter update (Q3 FY 2026).

Over the three months, the miner reported total iron ore shipments of 48.4 million tonnes (Mt). While that’s up 5% from Q3 FY 2025, it’s down 4% from last quarter.

Still, Fortescue has notched record shipments of 148.7Mt in the nine months to 31 March. That’s up 4% from the same period last year.

On the cost front, the company’s hematite C1 unit cost of US$18.29 per wet metric tonne (wmt) over the quarter was down 4% quarter on quarter

Fortescue had a cash balance of US$4.2 billion and net debt of US$1.6 billion as at 31 March 2026.

Management reaffirmed full year FY 2026 guidance for total shipments at 195Mt to 205Mt.

Fortescue shares may be under some added pressure today after the miner separately announced a US$680 million cash splash to accelerate the development of its 200MW Pilbara Green Energy Project. That comes atop the miner’s existing US$6.2 billion decarbonisation program.

Management expects the green energy project to be completed by 2028.

 PLS shares jump on revenue surge

Unlike Fortescue shares, PLS shares are charging higher today, up 3.5% at $5.88 each.

PLS shares are also making headlines after the ASX 200 lithium stock released its third quarter update.

Highlights for the March quarter included a whopping 52% quarter on quarter increase in revenue to $567 million. This was fuelled by a 61% increase in the average realised spodumene price PLS received over the three months, which rose to US$1,867 per tonne (SC5.2 equivalent).

PLS shares are also likely getting a lift today, with the miner reporting a 12% increase in production to 232,400 tonnes. The miner sold 195,700 tonnes of spodumene over this period.

As at 31 March, the lithium miner had a cash balance of $1.45 billion, up 52% from 31 December.

Which brings us to…

Newmont shares lift on earnings leap

Joining PLS and Fortescue shares in the financial headlines today, we find Newmont.

Shares in the ASX 200 gold mining giant are up 2.1% at time of writing, changing hands for $157.73 apiece. This also follows the release of the miner’s March quarter update (Q1 2026).

On the negative side of the scale, Newmont’s gold production was down 10% quarter on quarter to 1.3 million ounces.

But the average realized gold price Newmont received increased by US$684 per ounce over the quarter to US$4,900 per ounce.

And net income rocketed to $3.3 billion, an increase of $2.0 billion from the prior quarter.

On the earnings front, Newmont reported adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$5.15 billion, up from US$2.63 billion in Q1 2025.

The post Why Newmont, PLS and Fortescue shares are grabbing headlines on Friday appeared first on The Motley Fool Australia.

More reading

• Why Newmont, Nuix, PLS, and Vulcan Energy shares are rising today
• Newmont shares jump again as record cash flow and buyback boost sentiment
• Guess which ASX iron ore stock could rise 85% (hint, not Fortescue shares)
• PLS shares jump 6% on record quarter and massive cash generation
• Why are Fortescue shares falling 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.

A fresh contract win is putting this ASX infrastructure stock back in focus on Friday.

Genusplus Group Ltd (ASX: GNP) shares are moving higher after the company released a new project update.

The stock is up 2.16% and touched an intraday high of $8.99. That continues a strong run, with the share price now up around 40% in 2026.

Here’s what came through.

New battery project contract secured

Genusplus has been awarded the Koolunga Battery Energy Storage System project in South Australia.

The contract covers engineering, procurement, construction, and commissioning across both the balance of plant and battery installation.

The total contract value is approximately $110 million.

The project will deliver a 200MW/800MWh battery system, adding large-scale storage capacity to the grid.

It is located near Koolunga, north-east of Brinkworth, and will connect into South Australia’s electricity network.

Construction is expected to begin shortly, with completion targeted for September 2027.

Backing from major infrastructure investor

The project is owned by Equitix, a large infrastructure investor with a focus on energy and essential assets.

Genusplus will act as the turnkey contractor across the full delivery scope.

That gives it exposure across multiple stages of the project lifecycle, from design through to final commissioning.

The announcement also points to continued demand for battery storage as more renewable energy enters the grid.

Large-scale storage is becoming more important in balancing supply and demand, particularly in test markets such as South Australia.

Momentum building across the business

This latest contract adds to a growing pipeline of energy and infrastructure work.

Genusplus operates across transmission, distribution, and communications infrastructure.

And battery and grid-related projects are quickly becoming a larger part of that mix.

The company has been building exposure to energy transition work, including renewables and storage.

That shift is showing up in the share price performance over the past year, with the stock up over 220%.

At current levels, Genusplus has a market capitalisation of around $1.6 billion.

What the market is watching

The focus now turns to the delivery of the project.

Large contracts like this bring revenue visibility, but execution is what really matters.

Timing, cost control, and project delivery all feed into the company’s margins.

Furthermore, investors will also be watching how quickly new work comes through.

Battery storage is a growing segment, and competition for these projects is only increasing.

Genusplus is starting to build a track record in this space, which could help with future wins.

Foolish takeaway

The latest contract adds to a growing pipeline and shows the company is winning relevant work in energy infrastructure.

But share price already reflects a lot of that momentum after a strong run.

I’d be watching from here and would be more interested on a pullback or after a few more projects are completed.

The post This ASX stock just landed a $110 million battery project. Shares near record highs. appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week in the red. At the time of writing, the benchmark index is down 0.4% to 8,758 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Newmont Corporation (ASX: NEM)

The Newmont share price is up 1.5% to $156.84. This follows the release of the gold miner’s first-quarter update. The company achieved production of 1.5 million ounces of gold during the quarter, which was broadly in line with expectations. Newmont reported an average realised gold price of around US$2,944 per ounce, which underpinned net income of US$3.2 billion and adjusted EBITDA of US$5.2 billion. Looking ahead, for FY 2026, Newmont is still targeting 5.6 million ounces of gold with costs of US$1,650 per ounce on an all-in sustaining basis.

Nuix Ltd (ASX: NXL)

The Nuix share price is up 12% to $1.49. This has been driven by news that the Federal Court has dismissed the ASIC disclosure case against the investigative analytics and intelligence software provider. The company’s chair, Robert Mactier, said: “We are pleased that the Federal Court has resolved the allegations concerning Nuix’s early 2021 market disclosure and that the cases against both Nuix and the then directors of the company have been dismissed. We are committed to driving shareholder value, supporting our people and customers and using our products and services as a force for good.”

PLS Group Ltd (ASX: PLS)

The PLS share price is up almost 4% to $5.90. Investors have been buying this lithium miner’s shares following the release of a strong third-quarter update. The company posted a 12% quarter-on-quarter increase in spodumene concentrate production to 232.4kt. But the big positive was a 61% increase in its realised price to US$1,867 per tonne. This underpinned a 52% jump in revenue to A$567 million. And with costs reducing to A$520 per tonne, its cash margin from operations came in at A$461 million. This is up 178% quarter-on-quarter. PLS has reaffirmed its guidance for FY 2026. It expects production of 820kt to 870kt with unit operating costs of A$560 per tonne to A$600 per tonne.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan Energy share price is up 3% to $3.66. This follows news that the lithium developer has officially broken ground at its Lionheart lithium chemicals facility in Germany. The company notes that this marks the start of major construction at the site. Vulcan’s CEO, Cris Moreno, commented: “We are delighted to move beyond preparatory works and start full scale construction at our commercial lithium chemical plant. This groundbreaking event follows a similar ceremony held at our upstream lithium extraction plant in Landau late last year and highlights the progress towards our construction schedule and our 2028 commercial start of production target.”

The post Why Newmont, Nuix, PLS, and Vulcan Energy shares are rising today appeared first on The Motley Fool Australia.

More reading

• Why Newmont, PLS and Fortescue shares are grabbing headlines on Friday
• Newmont shares jump again as record cash flow and buyback boost sentiment
• This ASX lithium stock is bouncing back today. Here’s why
• Guess which ASX tech stock is rocketing 22% on big news
• PLS shares jump 6% on record quarter and massive cash generation

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

Markets do not move in a straight line.

After a strong run, it is normal to see pullbacks. When they happen, I think it helps to already know which shares you would want to buy rather than reacting in the moment.

If the market dropped again, these are three ASX shares I would be looking at.

CSL Ltd (ASX: CSL)

CSL has already been through a tough period, with its share price still well below where it was a year ago.

That is part of the reason I would be interested in the biotech if there were further weakness.

The core of the business remains strong. CSL Behring continues to operate in plasma therapies, where demand is tied to chronic conditions that require ongoing treatment. That creates a recurring revenue base.

There is also a pipeline of products and ongoing investment in innovation that can support future growth.

If the share price were to fall further, I think it would start to look increasingly attractive relative to its long-term growth profile.

REA Group Ltd (ASX: REA)

REA Group is a different type of opportunity.

It sits at the centre of Australia’s property market through realestate.com.au. That gives it a strong position and pricing power over time.

The property cycle can move around, which can impact listings and short-term revenue. That is usually when the share price comes under pressure.

But over longer periods, REA has shown an ability to grow earnings by increasing yields per listing and expanding its product offering.

A share market pullback would not change that. It would simply give investors a chance to buy a high-quality ASX share at a lower price.

Macquarie Group Ltd (ASX: MQG)

Macquarie is one I keep an eye on during volatility.

Earnings can move around depending on market conditions, particularly in areas like asset management and commodities trading. That tends to create swings in the share price.

Macquarie has built a global business across infrastructure, energy, and asset management. It has multiple earnings streams and a track record of finding new opportunities.

When markets fall, those cyclical earnings concerns often come to the surface. That can create opportunities to buy into the business at more reasonable valuations.

Foolish takeaway

Market pullbacks are not always comfortable, but they can create opportunities.

The key, I think, is knowing which businesses you would want to own before prices fall.

For me, CSL, REA Group, and Macquarie are three examples of high-quality ASX shares that I would be happy to buy if the market gave me another chance at a cheaper price.

The post 3 ASX shares I’d buy if the market dropped again appeared first on The Motley Fool Australia.

More reading

• Can the beaten-down CSL share price ever reach $300 again?
• 5 ASX 200 shares with renewed buy ratings this week
• CSL’s collapse deepens. Why this ASX giant can’t find a floor
• Prediction: CSL shares could surpass $265 in 2026
• Are ASX healthcare shares the next to rally?

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

Newmont Corporation (ASX: NEM) shares are pushing higher on Friday after the gold giant released its first-quarter results for 2026.

The stock is up 2.87% to $158.91 at the time of writing, continuing a strong run that has seen it climb around 20% over the past month.

Here’s a closer look at how the company performed in the 3 months to 31 March.

Record cash flow and earnings lift

Newmont reported a strong start to the year, supported by higher realised gold prices and steady production.

The company produced 1.5 million attributable gold ounces during the quarter, broadly in line with expectations.

Average realised gold prices came in at around US$2,944 per ounce, which helped drive a clear lift in margins.

That flowed through to earnings and cash generation.

Net income reached US$3.2 billion, while adjusted EBITDA came in at US$5.2 billion.

More notably, free cash flow hit a record US$3.1 billion for the quarter.

Operating cash flow was also strong at US$3.8 billion, even after working capital movements.

Shareholder returns step up

The balance sheet strength has allowed Newmont to return more capital to shareholders.

During the quarter, the company delivered US$2.7 billion in total returns through dividends and share buybacks.

It also confirmed a quarterly dividend of US$0.25 per share.

On top of that, management approved an additional US$3 billion share buyback program.

That sits alongside an existing program, with total buybacks now lifted to US$6 billion.

Costs improve as operations stabilise

Costs moved in the right direction during the quarter.

Gold all-in sustaining costs (AISC) came in at US$1,029 per ounce, down from the prior quarter.

Gold costs applicable to sales (CAS) also declined to US$903 per ounce.

The improvement was driven by stronger by-product credits and steady operating performance across key sites.

There were still some softer spots.

Production was lower at certain operations, including Boddington, following weather disruptions and maintenance.

Despite this, Newmont’s broader cost profile is starting to look more stable.

Guidance holds, with second-half weighted

Full-year guidance has been left unchanged following the March quarter update.

Newmont is still targeting around 5.6 million ounces of attributable gold production for 2026.

Costs are expected to sit near US$1,650 per ounce on an all-in sustaining basis.

What stands out is how the year is expected to unfold.

Production is weighted toward the second-half, with higher grades and stronger volumes expected across several operations later in the year.

That timing is fairly typical for Newmont, but it does mean a larger share of output is still to come.

Foolish bottom line

This was a strong result, driven largely by higher gold prices and a big lift in cash flow.

More of that cash is now being returned to shareholders, which is starting to stand out.

The second-half will matter more, with production expected to build and costs needing to hold where they are.

From my side, I’d still be watching the gold price as much as the operations.

If pricing stays where it is, the outlook looks solid. If it pulls back, sentiment could shift just as quickly.

The post Newmont shares jump again as record cash flow and buyback boost sentiment appeared first on The Motley Fool Australia.

More reading

• Why Newmont, PLS and Fortescue shares are grabbing headlines on Friday
• Why Newmont, Nuix, PLS, and Vulcan Energy shares are rising today
• Newmont declares quarterly dividend for ASX investors
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday

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.

This week, Infrastructure technology stock ikeGPS Ltd (ASX: IKE) delivered a positive fourth quarter report, which the analyst team at Shaw and Partners says backs up their buy recommendation on the company.

Infrastructure play

So what does ikeGPS actually do?

The company offers software products which help infrastructure companies analyse and manage poles and overhead assets, with their customers including electric utilities, communications companies and engineering services companies.

In the company’s fourth quarter report released this week, management made the case that they were well-placed to take advantage of major economic trends.

As they said:

IKE operates at the intersection of several of the most powerful structural investment cycles in the North American economy. US electric utility capital expenditure is projected at between US$1.1 trillion and US$1.4 trillion from 2025 to 2030 — approximately US$194 billion in 2025 alone, growing at an 8.5% five-year CAGR. The United States electric grid must scale from providing 20% to 50% of national energy capacity by 2050.

The company said much of this capital would be in distribution, which was where ikeGPS operates.

They added:

Layered on top of grid capacity investment, 130 million wooden poles across North America are approaching the 45-to-50-year failure threshold. Up to 35 million poles will require replacement or reinforcement by 2035. Severe weather events now account for 80% of major US outages. The requirement for digital pole intelligence is not discretionary — it is increasingly mandated for reliability and resiliency compliance by regulators, by utilities themselves, and by the federal grant programmes investing in distribution network modernisation.

Strong growth forecast

In its update this week ikeGPS reported that it had delivered 33% growth in platform subscription revenue over its full year to the end of March, with revenue coming in at NZ$19.2 million.

The company said it achieved positive EBITDA in the month of March and was expecting another strong year going forward.

As the company said:

We believe IKE enters FY27 with strong momentum across subscription revenue growth, product development, customer acquisition, and market positioning. We expect platform subscription revenue in FY27 at similar growth rates to those achieved in FY26. Our balance sheet is strong, our pipeline is strong, our two new customer council-led products are progressing on plan, and the macro tailwinds underpinning our market are strengthening, not weakening.

Shares looking cheap

Shaw and Partners said in a note to its clients this week that the guidance for similar growth to last year “puts IKE in a rare category”.

The broker has a buy recommendation on ikeGPS with a high risk rating, and a price target of $1.40, compared with the current price of 92 cents.

The post This under the radar ASX tech company could deliver almost 50% returns: Broker appeared first on The Motley Fool Australia.

More reading

• Why Newmont, PLS and Fortescue shares are grabbing headlines on Friday
• This ASX stock just landed a $110 million battery project. Shares near record highs.
• Why Newmont, Nuix, PLS, and Vulcan Energy shares are rising today
• 3 ASX shares I’d buy if the market dropped again
• Newmont shares jump again as record cash flow and buyback boost sentiment

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

Cochlear Ltd (ASX: COH) shares have had a shocker of a week after the massive earnings downgrade the company announced on Wednesday, raising the question, is it time to buy back in?

Shareholders wearing the pain

To put the scale of this week’s fall into raw numbers, the shares are down almost 45% to $92.91 on Friday, from levels close to $170 on Tuesday.

The shares have traded in a wide range over the past year, at one stage changing hands for $319.56, while they hit a 12-month low of $91.33 in recent days.

The enormity of this week’s share price rout is no great surprise when you look at what the company announced to the market.

The hearing implant maker said on Wednesday it now expected its underlying net profit to come in at $290-$300 million, down from a previous range of $435-$460 million.

The company went on to say:

Since January trading conditions for cochlear implants in developed markets have been softer than expected, with revenue flat for the quarter in constant currency. Near term surgical volumes have been affected by a combination of hospital capacity constraints and reduced referral activity from the hearing aid channel. Consumer sentiment has declined in key markets, reaching historic lows in the US. The decline appears to be affecting discretionary healthcare decisions in the adults and seniors segment, adding to demand uncertainty in the near term.  

Cochlear said surgical volumes had been “constrained” in Western Europe, “resulting in growing waiting lists for surgery in markets including the UK and Germany, while industrial action in Italy and Spain has restricted surgical throughput”.

The US had been trading in line with expectations until mid-February, Cochlear said, with volumes then declining in March.

Shares look oversold

So what do the brokers think for Cochlear’s fortunes going forward?

I’ve had a look at recent research reports from the teams at Jarden and Macquarie, and while they both see upside from current levels, their price targets vary dramatically.

The Jarden team said Cochlear management had previously been targeting a net profit after tax margin of 18%, but they were now indicating it would take “a number of years” to recover to this level.

Jarden has reduced its expectations for earnings from the company out to FY28, but added that the shares were now looking cheap.

As the Jarden team said:

Cochlear’s share price reaction seems overdone but is also appropriate given Cochlear’s limited line of sight around earnings. Further, we continue to struggle to see how Cochlear is regaining lost share and expect further softness to continue into FY27 as the competition appears to be capturing share via price. We maintain our Neutral rating.  

Despite their reservations around the company’s prospects, Jarden has a share price target of $169 on Cochlear shares, reduced from $224.

Macquarie has a much more conservative price target on Cochlear shares, while also having a neutral rating.

Macquarie’s 12-month price target is $115, with that having been reduced from $239.

Cochlear is currently valued at $6.51 billion.

The post How high could Cochlear shares bounce back? Brokers disagree appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares too cheap to ignore after sell-offs
• Could these ASX stocks really be set to double after crashing this week?
• 2 ASX 200 shares newly upgraded this week
• What is Morgans saying about Cochlear and Northern Star shares?
• 5 ASX 200 shares with renewed buy ratings this week

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

Fortescue Ltd (ASX: FMG) shares are in the spotlight today after the iron ore giant released its quarterly update.

But the ASX iron ore stock that investors should be focusing more on is Fenix Resources Ltd (ASX: FEX), according to analysts at Bell Potter.

That’s because they believe this iron ore miner’s shares are significantly undervalued at current levels.

What is the broker saying?

Bell Potter was impressed with Fenix’s performance during the third quarter, highlighting that production and sales were ahead of expectations despite the impact of Tropical Cyclone Narelle on operations. It said:

FEX reported quarterly group iron ore production of 1,243kt (BPe 955kt) and sales of 974kt (BPe. 955kt) at an average realised price of US$101/dmt CFR (A$146/dmt; BPe US$97/t), a 2% discount to the 61% Fe benchmark index. Group C1 cash costs were A$70/t (BPe A$78/t), down 7% QoQ. Stockpiles were drawn to support sales following impacts of Tropical Cyclone Narelle, with two shipments (~120kt) deferred into April 2026 due to the temporary Geraldton Port closure.

At 31 March 2026, FEX had cash of $86m (31 December 2025 $79m); we estimate debt (including leases) of around $74m. Key quarterly cash flows include: Operating cash flow +$18m; iron ore prepayments +$13m; capex -$11m; and debt repayments -$8m.

Another positive is that the ASX iron ore stock has reaffirmed its upgraded guidance for the full year despite diesel shortages. It adds:

FEX has maintained guidance (upgraded December 2025) of 4.2-4.8Mt sales at average C1 cash cost of A$70-80/wmt. The company is confident it will maintain sufficient diesel supply for all operational activities. However, costs are expected to rise in the current quarter with higher fuel and freight rates.

At the Beebyn Hub, construction of a new 5Mtpa crushing and screening facility is underway and mining is ramping up as Iron Ridge and Shine near the end of current mine plans. Several workstreams are underway at the broader Weld Range Project aiming to optimise the mine plan and product mix, and advance the permitting pathway ahead of the release of a Definitive Feasibility Study scheduled for 2H CY26.

Big potential returns

According to the note, Bell Potter has retained its buy rating and 63 cents price target on Fenix Resources’ shares.

Based on its current share price of 34 cents, this implies potential upside of 85% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

FEX has outlined a clear pathway to incrementally grow iron ore production to 10Mtpa at significantly lower unit costs, leveraging its integrated logistics network to underpin cash flows and fund its substantial organic growth outlook. FEX holds the largest storage position at the strategic and fast-growing Geraldton Port.

The post Guess which ASX iron ore stock could rise 85% (hint, not Fortescue shares) appeared first on The Motley Fool Australia.

More reading

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• Fortescue invests $680m in Pilbara Green Energy Project
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• Up 67% in a year! The red-hot South32 share price is smashing BHP, Rio and Fortescue

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.