Author: openjargon

When it comes to investing in the energy sector, Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) shares are often front of mind.

But there is another ASX energy stock that Bell Potter is recommending to shareholders.

Which ASX energy stock?

The stock Bell Potter is bullish on is Comet Ridge Ltd (ASX: COI).

It is an energy exploration and development company focused on the Mahalo Gas Hub in Queensland’s Bowen Basin.

Bell Potter notes that the company is raising up to $45 million. These funds will be used partly to settle its acquisition of Santos’ 42.86% interest in the Mahalo joint venture.

The broker highlights that this leaves it well-placed now to focus on its final investment decision (FID), which is due in FY 2027. It said:

COI is now targeting Gas Sales Agreements and releasing Mahalo Gas Project economics by the end of 2026 to support funding approvals and a Final Investment Decision by the end of the March 2027 quarter. On this timeline, COI see first gas production in late 2028.

The Mahalo development will leverage 676PJ of 2P Reserves plus 2C Contingent Resources, successful pilot wells and the permitting already received over some acreage. With the STO transaction now funded, COI must now turn its efforts to funding Mahalo’s development capital costs, the quantum of which will be highly dependent on the development scenarios and project economics now being considered.

Should you invest?

According to the note, Bell Potter has retained its speculative buy rating on the ASX energy stock with a reduced price target of 14 cents.

Based on its current share price of 9.9 cents, this implies potential upside of 41% for investors over the next 12 months.

To put that into context, a $2,000 investment would turn into approximately $2,800 by this time next year if the broker is on the money with its recommendation.

Commenting on its investment thesis, Bell Potter said:

Our COI valuation is based on COI’s Mahalo project which is one of the few development-ready gas projects capable of delivering near-term supply. We are positive on Australian east coast gas markets, with supply shortfalls likely to support higher prices. Funding the Mahalo development remains a risk. COI is a gas development company with prospective operations and cash flows only; our Speculative risk rating recognises this higher level of risk.

The post Bell Potter is tipping this ASX energy stock to rise 40% (It isn’t Woodside) appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Crude oil falls below US$70 as ASX energy shares sell-off
• Why Judo Capital, Minerals 260, Santos, and Worley shares are dropping today
• Is the Woodside share price a buy in July?
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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 team at Bell Potter has identified an ASX 200 share that they believe could generate big returns for investors.

And while no dividend is expected in 2026, it could pay to be patient, with the broker expecting a big dividend yield next year.

Which ASX 200 share?

The share that has caught the eye of Bell Potter is Nickel Industries Ltd (ASX: NIC).

It notes that the nickel producer has announced deals to acquire more production capacity. It said:

NIC has announced it will acquire interests in expansions to the existing ENC HPAL facility (46% NIC) which will lift its attributable nickel in HPAL capacity by ~17ktpa (41%) to 58.6ktpa. NIC will acquire a 17.5% interest in the 36ktpa PT Teluk Metal Industry (TMI) expansion for US$169m cash consideration. Separately, NIC will acquire a 36% interest in the 28ktpa PT Chengsheng New Energy (CNE) expansion via an equity swap with consideration being an 18% interest in the Sampala Project (reducing NIC from 60% to 42%). TMI and CNE are both expected to come online in mid-2027 with ore supply from Sampala.

The TMI acquisition is subject to a Construction Guarantee capping the acquisition cost at US$169m and delivery of nameplate production by September 2027. NIC expects to fund the cash payment, due 26 November 2026, from existing cash and operating cash flow. If needed, NIC’s major shareholder (Shanghai Decent) will provide debt funding on commercial terms. NIC held cash and equivalents of US$212m at end March 2026.

Big potential returns

According to the note, Bell Potter has retained its buy rating on the ASX 200 share with an improved price target of $1.55 (from $1.45).

Based on its current share price of 89 cents, this implies potential upside of almost 75% for investors over the next 12 months.

And as mentioned at the top, no dividend is expected in FY 2026. However, in FY 2027 an unfranked 6 cents per share dividend is forecast, followed by a 14 cents per share dividend in FY 2028.

This implies potential dividend yields of 6.75% and 15.7%, respectively.

Commenting on its buy recommendation, Bell Potter said:

EPS changes in this report are: CY26: +1%, CY27 +5%, CY28 +16%. NIC offers nickel price leverage and diversified margin exposure across an integrated value chain. The HPAL expansion transactions will further balance NIC’s earnings into downstream higher-margin operations and preserve earnings through the nickel price cycle. We lift our Target Price 7% to $1.55/sh and retain our Buy rating.

The post Should you buy this ASX 200 share for its 15% forecast dividend yield? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• This ASX 200 stock is up almost 30% in a year. Now it is making another big move
• Nickel Industries shares: US$169m TMI HPAL investment boost
• This ASX 200 mining stock is up 44% in a year. Why is it climbing again?
• Why AIC Mines, EOS, Flight Centre, and Nickel Industries shares are racing higher today

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.

EchoIQ Ltd (ASX: EIQ) shares were on fire on Friday.

The ASX tech stock rocketed 30% to $1.62 after Pro Medicus Ltd (ASX: PME) announced a major investment in the company and a marketing agreement.

The market appears to see this investment as a stamp of approval from the medical imaging technology provider.

Pro Medicus’ CEO, Dr Sam Hupert, commented:

In addition to providing financial backing, we are looking to offer our Visage 7 Cardiology customers the option of Echo IQ’s technology. This is in line with our AI strategy of offering a curated suite of algorithms that will be a mixture of algorithms created by us, those created in conjunction with our clinical partners and 3rd party algorithms such as Echo-IQ.

Is it too late to buy this ASX tech stock?

The good news is that Bell Potter doesn’t believe it is too late to buy this high-flying share. However, the near-term upside from here could be limited.

According to a note, the broker has initiated coverage on the cardiology-focused medical technology company’s shares with a speculative buy rating and $1.65 price target. This is just a fraction higher than where its shares currently trade.

Bell Potter believes there is a major unmet need that the ASX tech stock could help with. It explains:

The major unmet need in this patient population are those currently asymptomatic (i.e. without obvious symptoms) with severe disease. The vast majority proceed to symptomatic disease within two years and become candidates for aortic value replacement. Recent clinical data has proven that early intervention drives a significant survival benefit.

The data suggest that the majority of these patients are not identified using current screening methods and fewer still receive treatment. Finally, this recent clinical data has been recognised by CMS which recently proposed an update to its National Coverage Determination to extend reimbursement for AS patients with asymptomatic disease.

Commenting on its speculative buy rating, Bell Potter adds:

We commence coverage with a Buy (Speculative) recommendation and valuation of $1.65. We expect EIQ expand rapidly over the short to medium term as healthcare operators and payers recognise the benefit of these diagnostic aides in helping to minimise the long term cost of heart failure to US healthcare.

Overall, this could make it one to watch in the near term.

The post Is this exciting ASX tech stock a buy after its massive news? appeared first on The Motley Fool Australia.

More reading

• Pro Medicus just struck a revolutionary AI cardiology deal. Here’s why that matters
• Why is everyone talking about Mineral Resources, A2 Milk and Pro Medicus shares on Thursday?
• Why A2 Milk, EchoIQ, Lendlease, and Qantas shares are racing higher today
• A deal with Pro Medicus has turned this ASX biotech into a 10-bagger, up more than 30% today
• Pro Medicus shares jump again as AI deal adds fuel to 40% rally

Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investing can be a time-consuming activity. There are individual shares to research, broker notes to read, earnings results to follow, market moves to interpret, and endless opinions about what will happen next.

ASX exchange traded funds (ETFs) can help cut through some of that noise.

They allow investors to spread money across a basket of companies in one trade, which can make portfolio building much simpler and removes the need to pick individual stocks.

But which ASX ETFs could make buy and hold investing easy? Here are three to look closer at:

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The first ASX ETF to look at is the Vanguard MSCI Index International Shares ETF.

This fund gives investors broad exposure to developed share markets outside Australia.

That is important because the Australian market is relatively small and heavily tilted toward banks and miners.

The Vanguard MSCI Index International Shares ETF opens the portfolio to companies listed in markets such as the United States, Europe, Japan, and other developed economies.

It can give investors exposure to global technology leaders, healthcare giants, consumer brands, industrial businesses, and financial companies that are simply not available in the same depth on the local market.

It gives investors a way to reduce home bias, access global growth, and avoid relying too heavily on the fortunes of the Australian economy alone.

Betashares Australian Quality ETF (ASX: AQLT)

But if you do want some exposure to the local market, then it could be worth looking at the Betashares Australian Quality ETF.

This fund gives investors exposure to Australian companies that pass a quality screen.

That makes it quite different from simply buying the largest companies on the ASX. Instead of letting size alone determine the portfolio, the fund looks for businesses with stronger financial characteristics.

This can include companies with more attractive profitability, healthier balance sheets, and better earnings quality. That type of filter can be useful in the Australian market.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

A third ASX ETF to consider is the VanEck Morningstar Wide Moat ETF.

This fund is built around the idea that some companies have stronger defences than others.

In investing terms, a moat is what helps a business protect its profits from competitors. It might come from a powerful brand, cost advantage, network effect, valuable intellectual property, customer loyalty, or a product that is difficult to replace.

The VanEck Morningstar Wide Moat ETF applies that idea to US shares, looking for stock with lasting competitive advantages and fair valuations.

That second part is important because even great businesses can disappoint investors if they are bought at the wrong price.

For long-term investors, this ASX ETF can add a more selective style of US exposure. It is a way to own a portfolio of companies chosen for business strength rather than simply market size.

The post 3 excellent ASX ETFs for easy buy and hold investing appeared first on The Motley Fool Australia.

More reading

• Which ASX ETFs are good options for a $1,000 investment?
• How I’d invest $250 a week in ASX shares to aim for $700,000
• 10 amazing ASX ETFs for the next decade
• Invest like Warren Buffett with these top ASX ETFs
• 5 high-quality ASX ETFs to buy with $5,000

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF and Vanguard Msci Index International Shares ETF. 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 have fallen a long way from their highs.

The NAB share price is currently trading around $37.45, down from a 52-week high of $49.45 and hovering above its 52-week low of $35.48.

For investors focused on passive income, I think this means NAB is worth a close look.

The valuation looks reasonable

The first thing that stands out to me is the valuation.

According to CommSec, consensus estimates suggest NAB could generate earnings per share of $2.43 in FY26 and $2.53 in FY27.

Based on the current share price of around $37.45, that puts the bank on a price-to-earnings ratio of about 15.4 times FY26 earnings and 14.8 times FY27 earnings.

That does not make NAB unbelievably cheap. But I think it looks like good value for one of Australia’s major banks.

Banks are going through a tougher period. Higher interest rates have put pressure on borrowers, competition remains strong, and investors are watching the housing market closely. But NAB still has scale, a major deposit base, strong customer relationships, and a leading position in business banking.

For a passive income investor, I think those qualities are important. The dividend needs to be backed by a business that can keep producing profits across different economic conditions.

The yield is attractive

The second reason NAB stands out is of course passive income.

CommSec consensus estimates point to dividends per share of $1.70 in FY26 and $1.72 in FY27.

At the current share price, that implies forward dividend yields of around 4.5% and 4.6%, respectively.

That is a useful level of income, in my view. It is high enough to be meaningful, while still coming from one of the country’s largest banks.

To put the numbers another way, a $10,000 investment at around $37.45 per share would buy approximately 267 NAB shares.

Based on the forecast FY26 dividend of $1.70 per share, that holding could generate about $454 in annual dividend income. Based on the FY27 forecast dividend of $1.72 per share, the income would be around $459.

That is before considering tax and any franking credits.

Of course, dividends are never guaranteed. Bank dividends depend on earnings, capital requirements, regulation, credit quality, and the broader economy. But the forecast yield does show why NAB may appeal to investors looking for passive income.

Why I’d consider buying NAB shares

I think the income case is stronger because NAB is not only a yield story.

The bank has a large role in Australian business lending, which gives it a different flavour to a purely mortgage-focused bank. Small and medium-sized businesses need credit, transaction accounts, payment services, deposits, and relationship banking as they grow and manage daily operations.

That creates a valuable customer base if NAB can keep serving it well.

The bank also gives investors exposure to the Australian economy. That can create volatility, especially when confidence is weaker, but it also means NAB can benefit if conditions improve over time.

Foolish takeaway

I think NAB shares look attractive for passive income investors at current levels.

The share price has pulled back meaningfully, the valuation looks reasonable on consensus earnings forecasts, and the forward dividend yield is around the mid-4% range.

There are risks, particularly around the economy, housing, bad debts, and banking competition. But I think NAB’s business banking strength and scale make it a useful income share to consider.

For investors wanting ASX passive income with the possibility of capital gains over time, I think NAB shares are worth buying.

The post Should I buy NAB shares for passive income? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Here’s the dividend forecast out to 2027 for NAB shares
• Is the NAB share price good value after crashing 24%?
• Invested in ASX 200 bank shares for dividends? This fundie prefers other stocks
• Where I’d invest $2,000 in ASX 200 shares

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 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 Fortescue Ltd (ASX: FMG) share price has suffered a 16% decline since 14 May 2026, as the below chart shows. When an ASX mining share goes through a large dip, it’s good to consider whether it’s a buy and what could happen to the share price.

Miners can deliver great returns if investors buy them at the right time, given how much resource prices (and profits) can fluctuate.

Mining costs don’t change much year to year, so a shift in the revenue per tonne can make a big difference to the profitability because extra revenue for that tonne largely adds straight onto the operating profit (EBITDA) line, though an iron ore reduction can cut straight into net profit.

Iron ore price reduces

As you may be able to guess, the iron ore price has noticeably fallen in the last several weeks, dropping from more than US$110 per tonne in mid-May to almost US$100 per tonne, at the time of writing, according to Trading Economics.

Considering how that change may hurt Fortescue’s monthly profitability, the decline of the Fortescue share price has not been that bad.

But where to from here? The iron ore price is difficult to predict in the short term, though the market is wary of the influence that increased African iron ore production (including Simandou) could have on the global iron ore price.

Interestingly, to potentially offset that headwind, Fortescue is developing its own African iron ore project and diversifying into copper production.

Where could the Fortescue share price go from here?

It’s important not to anchor to where a share price has recently been and assume it’ll bounce back there quickly.

According to CMC Invest, there have been nine ratings on the business within the last three months.

A price target indicates where analysts expect the share price to be 12 months from the investment call.

The average price target of those nine ratings is $19.05, suggesting (at the time of writing) a slight decline over the next 12 months.

But that’s just the average price target. The most optimistic price target is $21.71, suggesting a rise of more than 12%, while the lowest is $15.79, implying a possible decline of around 18% at the time of writing.

The investment professionals are leaning slightly negative on the ASX mining share. Of those nine ratings, just two were buys, three were holds and four were sells.  

So, it doesn’t seem as though the Fortescue share price is a compelling idea today.

The post How much could the Fortescue share price rise in the next year? appeared first on The Motley Fool Australia.

More reading

• Are Fortescue shares a strong buy or a value trap?
• Why has the ASX 200 given up its early rebound today?
• Is the Fortescue share price a buy for its 8% dividend yield?
• Brokers rate these 4 ASX 200 shares as a sell!
• ASX 200 slips as oil shock puts investors on edge

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.

Woolworths Group Ltd (ASX: WOW) shares are back in favour.

On Thursday, the supermarket giant’s shares hit a 52-week high of $40.10.

That is a strong vote of confidence from the market, particularly after a difficult period for the retail sector more broadly.

Investors appear to be warming again to Woolworths’ defensive qualities, its scale, and the resilience of supermarket spending.

But after such a strong move, is there still value left for investors?

Why Woolworths remains attractive

Woolworths sits in one of the most dependable parts of the Australian economy.

Households may postpone major purchases when budgets are tight, but grocery spending is far harder to avoid.

That gives Woolworths a level of defensive strength that many ASX shares cannot match.

The company also has huge scale. Its supermarkets serve millions of customers each week, supported by a large store network, online operations, loyalty data, supplier relationships, and logistics infrastructure. That scale can be difficult to replicate.

But the valuation is no longer cheap

The main challenge is valuation. At current levels, Woolworths shares are trading on approximately 31 times expected FY 2026 earnings. This is based on forecast earnings per share of $1.30.

Looking ahead to FY 2027, analysts are expecting earnings per share of $1.48. That still places the stock on a forward price-to-earnings ratio of about 27 times.

Those are not bargain-level multiples. Investors are paying a premium for Woolworths’ defensive profile, reliable customer demand, and long-term market position.

That may be justified if earnings growth improves from here. But it also means there is less room for disappointment.

If margins come under pressure, competition intensifies, or sales growth slows, the share price could be vulnerable after reaching a 52-week high.

Woolworths also remains relevant for income investors. Analysts are expecting dividends of 99.5 cents per share in FY 2026 and $1.13 per share in FY 2027. This represents dividend yields of approximately 2.5% and 2.8%, respectively.

That’s not the largest dividend yield you’ll find on the Australian share market, but it is welcome income for investors.

Are Woolworths shares a buy?

Woolworths remains a high-quality ASX blue chip. Its role in everyday household spending, national scale, and strong customer position make it a business that many investors would be comfortable owning for years.

But at a 52-week high, the easy value case has faded.

I would argue that Woolworths looks more like a quality hold than an obvious bargain at today’s price, though long-term investors may still see appeal in its defensive earnings profile.

The post Are Woolworths shares still a buy at a 52-week high? appeared first on The Motley Fool Australia.

More reading

• This ASX 200 giant just hit a 52-week high. Is it getting too expensive?
• Woolworths shares soar to new multi-year high: Buy, sell or hold?
• One ASX dividend and one ASX growth stock to buy now
• How to build an ASX share portfolio that can survive a market selloff
• Woolworths shares vs Coles: Buy, hold, or sell these ASX giants?

Motley Fool contributor James Mickleboro has positions in Woolworths Group. 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 hunting ASX dividend shares to buy for your income portfolio in July, then read on.

That’s because Morgans recently named two that could be among the best to buy right now. Here’s what it is recommending to clients:

Accent Group Ltd (ASX: AX1)

The team at Morgans recently put a buy rating and 85 cents price target on this footwear retailer’s shares.

It made the move after the HypeDC and Platypus owner received an opportunistic takeover offer. It said:

Frasers Group has made an unconditional on-market cash takeover offer for AX1 at $0.65 per share, which represents no premium to the closing share price. We see this offer as opportunistic, given the weakness in the share price over the last 12 months (down 64%), and see scope for Frasers to revise its bid higher. We have made no changes to our forecasts, but have increased our target price to $0.85 (from $0.75) applying a lower discretionary discount. We retain our BUY recommendation.

With respect to dividends, Morgans expects Accent to reward its shareholders with fully franked payouts of 3.8 cents per share in FY 2026 and then 5 cents per share in FY 2027. Based on the current Accent share price of 72 cents, this would mean dividend yields of 5.3% and 6.9%, respectively.

Flight Centre Travel Group Ltd (ASX: FLT)

Morgans thinks that Flight Centre could be an ASX dividend share to snap up.

The broker recently put a buy rating and $14.80 price target on the travel agent’s shares. It said:

Given recent downgrades from other travel industry peers due to the conflict in the Middle East, FLT’s downgrade wasn’t a surprise. Given its balance sheet strength and depressed share price, a new up to A$200m share buyback was announced. We have made only minor changes to our forecasts given FLT’s guidance was broadly in line with our previous forecast.

While a peace agreement and eased travel restrictions are positive, we think 1H27 will still be challenging. We forecast a strong recovery in 2H27. If it wasn’t for this conflict, FLT would have had a great year given its results for the first nine months were strong. We are buyers of FLT because when operating conditions ultimately improve, both its earnings and share price will be materially higher.

As for income, the broker is expecting fully franked dividends of 40 cents per share in FY 2026 and then 48 cents per share in FY 2027. Based on its current share price of $12.06, this represents attractive 3.3% and 4% dividend yields, respectively.

The post 2 of the best ASX dividend shares to buy in July appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares to buy and hold for years of income
• Buy, hold, sell: Flight Centre, Supply Network, Lottery Corporation shares
• 2 ASX shares highly recommended to buy: Experts
• This ASX retail stock just rejected a takeover bid. Is a bigger offer coming?
• Here are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has positions in Accent Group. 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 Accent Group and Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I had $2,000 to invest in ASX tech shares, I would be looking for businesses with large markets, useful products, and room to become more important to customers over time.

Two shares that stand out to me right now are Xero Ltd (ASX: XRO) and Block Inc (ASX: XYZ).

They are in very different positions. Xero shares are trading around $67.85, just above their 52-week low of $65.00. Block shares have been performing far better and are trading around $109.88, which is within sight of their 52-week high of $127.88 and well above their 52-week low of $69.40.

Despite the different share price momentum, I think both are buys.

Xero shares

Xero is the more beaten-down of the two.

The small-business accounting software company has been through a rough period in the market, but I think the long-term opportunity remains attractive.

What I like about Xero is the role it can play in the daily financial life of a small business. Accounting software is the starting point, but the bigger opportunity is much broader than that.

A small business owner needs to send invoices, pay staff, manage tax, track cash flow, connect bank feeds, understand expenses, chase payments, and make decisions with limited time. If Xero can keep bringing more of those jobs into one easy-to-use platform, it can become more valuable to customers.

The company has already built a strong position in markets such as Australia, New Zealand, and the UK. The challenge is growing in the key US market, expanding its usefulness, and using automation and artificial intelligence in ways that save customers time.

The Xero share price being close to its 52-week low does not guarantee a quick recovery. But I think it gives patient investors a more attractive entry point into a high-quality software business with a large global opportunity.

Block shares

Block is a different type of fintech share. The company owns Square, Cash App, Afterpay, and other payment and financial technology businesses. That gives it exposure to merchants, consumers, payments, lending, point-of-sale tools, buy now pay later, and broader financial services.

What interests me is the way Block sits on both sides of commerce.

Square helps businesses accept payments and manage parts of their operations. Cash App is consumer-facing, giving users a way to send, spend, save, and access financial products. Afterpay adds another layer by connecting customers and merchants through instalment payments.

That creates a large ecosystem.

Block is no longer a tiny disruptor, but I still think it has growth potential if it can deepen its relationship with merchants and consumers. Payments are a huge market, and businesses increasingly want tools that help them manage sales, customers, inventory, staff, data, and finance in one place.

The share price has already recovered strongly from its low, so the setup is different to Xero. But I do not think a stronger share price should automatically scare investors away from a business that is executing well.

For me, Block offers exposure to the future of digital payments and small business financial tools.

Foolish takeaway

If I were investing $2,000 into these two ASX tech shares, I would probably split the money across both rather than trying to pick one clear winner.

The appeal is that both businesses are trying to become more useful in areas where money, payments, and small-business operations are increasingly digital. Xero is doing that through software for small businesses, while Block is doing it through a broader fintech ecosystem.

Both companies still need to execute, and both can be volatile. But I like the long-term customer problems they are solving. Small businesses need better financial tools, merchants need smarter payment systems, and consumers keep shifting toward digital ways to manage money. That gives both Xero and Block a large growth runway.

The post Why I’d buy Xero and Block shares with $2,000 appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Is the tech recovery finally here for Xero and Wisetech shares?
• Here are the top 10 ASX 200 shares today
• Why Benz Mining, Collins Foods, WiseTech, and Xero shares are shooting higher today
• US chip stocks were smashed overnight. So why are ASX tech shares rising?

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

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a poor session and dropped deep into the red.  The benchmark index fell 0.7% to 8,748.7 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to rise on Friday despite a mixed night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 14 points or 0.15% higher this morning. On Wall Street, the Dow Jones was up 0.15%, but the S&P 500 was down slightly and the Nasdaq fell 0.45%.

Oil prices recover

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a decent finish to the week after oil prices recovered overnight. According to Bloomberg, the WTI crude oil price is up 2% to US$71.74 a barrel and the Brent crude oil price is up 1.7% to US$75.01 a barrel. This follows reports of an attack on a cargo vessel by Iran.

Buy Minerals 260 shares

Bell Potter thinks Minerals 260 Ltd (ASX: MI6) shares are undervalued and could offer major upside. This morning, the broker has retained its speculative buy rating and $1.35 price target on the ASX gold stock. Commenting on the gold developer, the broker said: “MI6 offers gold exposure via the 4.5Moz Bullabulling Resource, valuation uplift through discovery success, project advancement and de-risking as the BGP progresses towards production. It holds ~$250m cash, sufficient to fund to Final Investment Decision (FID) in early CY27, long-lead items and early site works. We retain our $1.35/sh Valuation and Speculative Buy recommendation.”

Gold price rises

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a good finish to the week after the gold price rose overnight. According to CNBC, the gold futures price is up 0.8% to US$4,040.1 an ounce. The release of US inflation data eased rate hike fears and gave the precious metal a boost.

Buy Nickel Industries shares

Nickel Industries Ltd (ASX: NIC) shares could be good value according to analysts at Bell Potter. This morning, the broker has retained its buy rating with an improved price target of $1.55 (from $1.45). It commented: “NIC offers nickel price leverage and diversified margin exposure across an integrated value chain. The HPAL expansion transactions will further balance NIC’s earnings into downstream higher-margin operations and preserve earnings through the nickel price cycle. We lift our Target Price 7% to $1.55/sh and retain our Buy rating.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• What’s next for BHP shares? Broker forecasts revealed
• Here are the top 10 ASX 200 shares today
• ASX 200 drops again as investors dump banks and miners
• Crude oil falls below US$70 as ASX energy shares sell-off
• Why Judo Capital, Minerals 260, Santos, and Worley shares are dropping today

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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.