Author: openjargon

Short sellers have never been more bearish on Australia’s big four banks than they are right now.

Hedge funds have amassed a record short position nearing $11 billion against the big four banks. This marks the largest dollar value ever recorded for bets against the sector.

The number of shares lent to speculators has reached levels not seen since 2018, following the Hayne Royal Commission.

For the millions of Australians who hold shares in Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), or ANZ Group Holdings Ltd (ASX: ANZ), it demands a clear answer to one question: are the short sellers right?

Who is shorting ASX bank shares and why

The first thing to understand is who is behind this record short position.

Unlike previous bear raids primarily driven by offshore funds betting against Australian property, this current wave is being led by domestic long-short managers. These investors are convinced the banks’ profits and valuations are vulnerable to multiple domestic challenges.

The big four shed A$50 billion in combined market cap in May, after Commonwealth Bank suffered its largest single-day plunge on record.

The federal budget housing changes further spooked markets already nervous about rising provisions and stubborn inflation.

The short sellers were positioned for exactly that kind of event.

The bear case explained

Morgan Stanley believes operating conditions for Australia’s major banks have “deteriorated rapidly”. The broker pointing to three RBA rate hikes, proposed property tax changes, and the global energy shock as pressures landing simultaneously.

Morgan Stanley is now expecting consensus earnings per share forecasts to fall after a soft reporting season.

How? The bear case has four pillars.

First, three RBA rate hikes in 2026 are increasing mortgage stress across the banks’ enormous combined home loan portfolios.

Second, the federal budget’s negative gearing changes are expected to slow investor credit growth by as much as 25%, according to Jarden.

Third, net interest margins are under pressure from intense deposit competition.

Fourth, and most importantly, the big four bank shares are not cheap.

CBA trades at approximately 26 times forward earnings, a valuation that leaves virtually no margin for error if any of these headwinds intensify.

The bull case still exists for ASX bank shares

Shorting Australian banks has historically been described as a widow maker trade.

The big four remain extraordinarily profitable businesses with irreplaceable market positions, government-backed deposit guarantees, and pricing power in a rising rate environment.

In the first half of FY2026, CBA posted statutory net profit of $5.41 billion, up 5% year-on-year, while paying a fully franked interim dividend of $2.35 per share.

Furthermore, the RBA meets in just five days on 16 June, with markets currently pricing a hold at near-certainty.

A definitive pause signal from the RBA would remove the single biggest near-term headwind weighing on bank shares and could trigger a sharp reversal of the short positions.

ANZ is currently the most favoured among analysts, with six of 16 analysts carrying buy or strong buy ratings and some seeing potential upside of 13% from current levels.

What the record short position actually means

A record short position does not necessarily mean ASX bank shares will fall.

It means a large number of professional investors believe they will fall. And professional investors are frequently wrong.

What the record short position does tell us is that the risk-reward for buying bank shares at current prices is less attractive than at almost any point in the past decade.

The valuations, particularly at CBA, reflect little of that risk. And the smart money is positioned for disappointment.

Foolish takeaway

Ordinary investors do not need to panic about the record short position.

The big four banks are not going to collapse and their dividends are not under immediate threat.

What the short sellers are saying is that the share prices, particularly CBA, have run ahead of the earnings reality.

The RBA’s decision on 16 June will be the next significant test of that thesis.

If the RBA holds and signals a pause, the short sellers will feel real pain. If it hikes or signals further hikes ahead, they may have called this one correctly.

The post Hedge funds are shorting the big four bank shares. Should investors be worried? appeared first on The Motley Fool Australia.

More reading

• What are the big 4 banks worth as the housing market falters?
• Sell alert! Why this expert is calling time on Westpac and CBA shares
• Top brokers name 3 ASX shares to buy now
• Payday superannuation starting 1 July could change how every Australian thinks about their retirement
• The next RBA interest rates move will be down, NAB says

Motley Fool contributor Mark Verhoeven 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.

Research is emerging that suggests value investing could be back in vogue after a tough year for the ASX 200. 

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is essentially flat in 2026. 

This is far below the historical average annual return of between 7% and 9%. 

However with inflation persisting and value outperforming, it could be time to scoop up quality companies at a relative discount. 

This is the core philosophy of value investing.

It could be a rare opportunity to gain exposure to blue-chip companies at a low price. 

Here are three ASX 200 stocks that could be buy-low options for investors with long term upside. 

WiseTech Global Ltd (ASX: WTC)

WiseTech shares have fallen close to the furthest of any ASX 200 company in the last 12 months. 

It has been weighed down by broader tech sector negative sentiment. 

However the fundamentals still remain strong, and the share price appears to have fallen beyond a fair price. 

At the time of writing, WiseTech shares are trading for roughly $38 each. 

As my colleague Bronwyn Allen reported recently, the Market Matters team sees 30% to 40% upside over the next 12 months for Wisetech shares.

Elsewhere, 15 analysts offering a one year forecast via TradingView have an average 12 month price target of $71.70 on these ASX 200 shares. 

This indicates an 88% upside from current levels. 

Seek Ltd (ASX: SEK)

Seek is an online classifieds platform which has also suffered from the Aussie tech sell-off this year. 

This ASX 200 stock is down 42% year to date. 

However it now presents as another value option. 

The Motley Fool’s Mark Verhoeven covered last week the tailwinds from increased job ads that could be set to benefit the ASX 200 company. 

Additionally, the analyst team at Jarden believes the shares are oversold and have a price target of $23.25 on Seek. 

From yesterday’s closing price of $13.49, this indicates a 72% upside. 

Guzman Y Gomez Ltd (ASX: GYG)

Another value option right now is Guzman Y Gomez. 

The ASX 200 company (for now) has fallen significantly over the last 12 months, but is showing signs of a rebound after refocussing on the domestic market. 

At the time of writing, shares are trading hands for approximately $19.30 each. 

Amongst brokers, targets are ranging from $24 to $29.40 from Morgans.

These targets indicate an upside potential between 24% and 50%. 

This kind of upside can be hard to come buy for ASX 200 stocks. 

The post Are these the 3 best value ASX 200 shares right now? appeared first on The Motley Fool Australia.

More reading

• Here’s what brokers tip for WiseTech shares over the next 12 months
• Why might Pro Medicus shares soon be under pressure?
• Morgans rates these ASX shares as buys with up to 55% upside
• 5 things to watch on the ASX 200 on Wednesday
• Why are ASX 200 tech stocks like WiseTech, Life360 and Xero shares getting hammered on Tuesday?

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

So far, 2026 has been a down year for the S&P/ASX 200 Index (ASX: XJO). 

Bank shares, consumer discretionary and health care have all struggled mightily for the year to date. 

Because of this, many investors might have seen their portfolio dip, and experienced some volatility this year. 

While it’s no reason to panic, some investors might be weighing up adding some allocation towards small-cap or growth shares to provide some increased upside. 

The case for investing in small-cap stocks is simple: significant upside potential. 

Many of today’s largest companies began as relatively small and under-researched businesses. 

When a small-cap company succeeds, early investors can benefit from substantial share price gains.

It is also important for investors to understand that many small-cap shares rely heavily on funding, are yet to generate a profit, and can experience significant volatility on results and announcements. 

With that in mind, one small-cap worth monitoring is VEEM Ltd (ASX: VEE). 

Company overview

Veem is an Australian Defence manufacturer, designer and manufacturer of disruptive, high-technology marine propulsion and large gyrostabiliser (‘gyro’) systems for the global yacht, fast ferry and commercial workboat market.

For the to date, its share price has fallen 30%. 

On Monday, the company released a trading update.

It announced that it expects revenue for the financial year to be between $50m and $52m with EBITDA between $3.25m and $3.75m driven as previously advised by fulfilment of ASC orders received in late 2025 and the first quarter of 2026.

This will result in a significant increase in defence revenue in 2HFY26 compared to 1HFY26.

VEEM Managing Director Mark Miocevich said: 

We have noted FY26 will be a transition year and 2HFY26 has continued to lay the foundations for a stronger FY27. We are pleased with the progress we have made with the factory extension and imminent arrival of machinery which will facilitate this growth into the future.

Morgans weighs in on the ASX small-cap 

The team at Morgans increased its price target on this ASX small-cap following the trading update. 

The broker said after a challenging 1H26, the company has seen an improvement in 2H26 driven by higher Defence revenue from the fulfilment of ASC orders in hand alongside a recovery in propulsion sales. 

VEE has also completed construction of its ~1,000m2 factory extension, with the additional space to accommodate anticipated future growth in propulsion, defence, and engineering. Management expects FY26 revenue of $50-52m and EBITDA of $3.25-3.75m. Reflecting this guidance, we decrease FY26F revenue by 2% to $51.3m but increase EBITDA by 140% to $3.6m.

The broker has subsequently increased its price target to 85 cents per share (from 80 cents) and maintained a speculative buy rating. 

From yesterday’s closing price of 53 cents, this price target indicates more than 60% upside for the ASX small-cap. 

We believe VEE’s outlook remains positive with multiple growth opportunities across defence (eg, HII, Northrop Grumman, Hunter Class Frigate Program), propulsion (VEEM Extreme, Sharrow), and gyros (Mark III). While the timing of order flow can be uncertain and may drive near-term earnings volatility, the long-term earnings potential from these opportunities remains significant.

The post Meet the ASX small-cap tipped for 60%+ gains appeared first on The Motley Fool Australia.

More reading

• After dropping 9% yesterday, should you buy the dip on these ASX shares?
• 3 ASX ETFs I’d buy if I wanted easy global investing
• Hedge funds are shorting the big four bank shares. Should investors be worried?
• Are these the 3 best value ASX 200 shares right now?
• How to invest $12,500 for passive income in superannuation?

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

Superannuation could be one of the best ways to invest in ASX shares for passive income due to the lower tax rate.

I believe we should focus on the after-tax return for passive income. Therefore, it’s very attractive that superannuation has a lower tax rate than what it would be for a full-time working Australian with their individual tax rate.

Excitingly, for people in retirement, the tax rate in superannuation could be zero.

With that in mind, I believe the two ASX shares below are very effective options for $12,500 in superannuation.

Dexus Industria REIT (ASX: DXI)

Commercial property could be a compelling opportunity right now, with its high yields and significant discounts to underlying property value. After the Federal budget tax changes with residential property, commercial property could be even more attractive.

But instead of going out to buy and manage a portfolio of properties ourselves, we can invest in a high-quality real estate investment trust (REIT) to do all the work for us and ensure passive income stays truly passive. It’s good to enjoy our superannuation and retirement rather than being forced to become a property manager.

This ASX share invests in high-quality industrial warehouses located across major Australian cities, providing sustainable income and long-term capital growth prospects for investors.

Industrial properties have multiple tailwinds, including e-commerce growth and businesses’ commitments to strengthen their local supply chain capabilities.

It’s seeing strong rental growth, which helps support its distribution. In the FY26 half-year results, it reported like-for-like income growth of 7.4%, driven by rental escalations and strong re-leasing spreads (the new contract has higher rents for the property than the old contract).

It expects to pay a distribution per security of 16.6 cents in FY26, which translates into a distribution yield of 6.9%. Its net tangible assets (NTA) were $3.39 per security at 31 December 2025, implying a discount of close to 30%, which I believe is a very appealing valuation.

As an acknowledgement of how undervalued it is, the business is carrying out a share buyback, improving the underlying value of the remaining shares.

L1 Long Short Fund Ltd (ASX: LSF)

The other ASX share I want to highlight for superannuation investors is this listed investment company (LIC), managed by L1 Group Ltd (ASX: L1G).

LICs are very effective for passive income because they can pay reliable (and growing) dividends from profit reserves built from investment returns generated in prior financial years (and the current one).

L1 Long Short Fund invests in both ASX shares and global shares, with long-term investing strategies and short-selling (betting that share prices will fall). With that diverse investment universe, the fund can make positive returns in all economic conditions.

It hasn’t used tech shares to generate the great returns it has delivered – the five sectors that have delivered the biggest returns since 2014 are (in order) mining, industrials, communication services, utilities and financials.

Over the last five years, the LIC’s portfolio has delivered a net return of 17% per year, allowing it to fund a sizeable and growing dividend. Past performance is not a guarantee of future returns, of course.

I expect the next four quarterly dividends to be announced, amounting to a grossed-up dividend yield of 5.1% including franking credits at the time of writing, with ongoing strong dividend growth.

The post How to invest $12,500 for passive income in superannuation? appeared first on The Motley Fool Australia.

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• Forget BHP shares! Buy these ASX dividend shares instead for passive income
• 3 ASX financial shares to buy: experts

Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund. 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.

Here’s a hot take: The upcoming IPO of SpaceX will, in all likelihood, burn most investors.

Before we get into this question, it’s important to note that this is just my personal view, and could well be proven wrong. But let’s go through what we know.

SpaceX is one of the many companies headed up by the controversial yet incredible Elon Musk. However, it is set to become only the second of Musk’s companies to hit the public markets in an initial public offering (IPO) very soon. Musk famously already helms the electric vehicle and battery manufacturer Tesla Inc (NASDAQ: TSLA), which listed back in 2010 and has made some investors enormously wealthy.

SpaceX IPO to make history

SpaceX is set to float on the American NASDAQ exchange later this week on 12 June. It is expected to float at US$135 a share, and at a market capitalisation of US$1.77 trillion. With a ‘T’.

That would immediately make it one of the largest IPOs in history, and make SpaceX one of the largest companies in the world right off the bat. It is to use the ticker code ‘SPCX’.

SpaceX is famous for its cutting-edge rocket and space exploration technology. However, Musk has also lumped his artificial intelligence platform xAI into the company, as well as the social media site formerly known as Twitter, and now known merely as X.

According to CNBC, SpaceX is aiming for retail investors to receive about 30% of the shares being sold in its IPO. That’s well above your typical float, which aims for 5-10%. Not just American retail investors either. Stock market participants all over the world are being invited to join this IPO. Our own CommSec platform has been offering retail investors on the ASX a shot at directly owning SpaceX shares after its float. Even my own beloved, yet usually-stock-market-agnostic, mother asked me about it last week.

As such, many Australians may have already signed up, hopeful that participating in this SpaceX IPO will make them wealthy.

I doubt that will happen.

Weighing the numbers against the hype

Why so serious? Well, there are a few red flags that I have noted that prompted this article.

Firstly, the conspicuous effort to include ordinary retail investors all over the world in this IPO could be construed as an effort to dial up the hype to 11. Musk is already a commanding figure in the investing world. Many loathe him, but many love him, perhaps thanks to his successes at Tesla. Many more may feel tempted to seemingly align their financial fortunes with those of Musk.

As the world’s richest person, the ads sell themselves.

However, even if you call me old-fashioned, I think a company’s numbers should speak louder than all else to attract IPO attention. Instead, it is Musk, his shiny company with the grand name, and his global army of spruikers that are attracting the attention.

If we actually dive into the numbers, there’s a different tale to be told.

CNBC reports that SpaceX “generated [US]$18.7 billion in revenue last year and recorded an operating loss of [US]$4.2 billion”. Yet we are being asked to invest in a company worth, according to its own estimates, almost US$2 trillion. For me, flags don’t get redder than that.

I’m sure SpaceX is an exciting company with a trailblazing path ahead of it. But at that valuation? I see far more risk than reward. IPOs make many people rich. But it is usually not the investors who buy the shares at IPO. Instead, the rewards go to the insiders selling their shares at IPO, and the brokers and bankers that underwrite the process. The investors on the other side may get what’s left, but, as I’ve written about before, are often just left holding the bag.

Foolish takeaway

I’m not saying SpaceX shares will plunge when they hit the market. Depending on the hype, there’s every chance they go ‘to the moon’. However, I think it is likely that once the hype dies down and the SpaceX IPO becomes old news, the shares will be less than US$135 each. As investing pioneer and Warren Buffett mentor Benjamin Graham once said: “In the short run, the market is a voting machine, but in the long run, it is a weighing machine”.

I wouldn’t be surprised if investors ‘vote’ SpaceX shares higher when they hit the market. But I would be surprised if they weigh them afterwards and find they are truly worth a total of US$1.77 trillion.

I could be wrong, of course. No crystal balls here. But I wouldn’t touch this IPO with a ten-foot pole, and unless you know far more about SpaceX than I do, I would recommend an abundance of caution to all.

The post The SpaceX IPO will make lots of people rich. Just not you appeared first on The Motley Fool Australia.

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• ASX investors: Are you overinvested in the Magnificent 7 without knowing it?
• Is this the easiest way to invest in the SpaceX IPO on the ASX?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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.

WiseTech Global Ltd (ASX: WTC) shares had a small reprieve on Wednesday, with the stock ending slightly higher for the day. 

At the close of the ASX on Wednesday afternoon, the shares were 0.13% higher at $38.05 a piece. 

The increase is good news for investors but it barely dents the huge losses the beaten-down tech stock has suffered over the past year.

The shares are still down over 44% for the year-to-date and down 65% over the past 12 months after a tech-sector sell-off saw investors rotate to more stable assets.

For context, the S&P/ASX 200 Index (ASX: XJO) closed 0.57% higher on Wednesday, and is now just 0.77% higher than 12 months ago. 

What do brokers expect next from WiseTech shares?

According to broker forecasts, the upside potential for WiseTech shares is huge over the next 12 months, with some tipping the stock to increase up to 214%.

Market Index data shows the majority brokers have a strong buy consensus on WiseTech shares over the next year. They tip a potential 93% upside to an average $73.89 target price, at the time of writing. 

Over at TradingView, the data shows something similar. Out of 15 analysts, 12 have a buy or strong buy rating on WiseTech shares. Another three have a hold rating. They tip a potential 85% upside to an average target price of $71.70. But some are much more bullish and are tipping the stock to jump as high as 214% to a maximum $119.39 target price, at the time of writing.

Why are the experts so bullish?

The team at Dolphin Partners Financial Services recently named the ASX tech stock as a buy. The broker said it thinks the shares are trading at a deep discount compared to broker valuations following significant share price weakness.

James Gerrish from Shaw and Partners recently said he thinks software stocks have now bottomed, and there are good buys to be had. He pointed to WiseTech shares and said his team sees between 30% and 40% upside over the next 12 months.

Bell Potter also has a buy rating on the shares and said it is eagerly awaiting the FY26 results in August. The broker added that, depending on the FY26 results, WiseTech’s FY27 forecast could even prove to be conservative and has the potential to drive renewed confidence and push up its share price.

Elsewhere, JP Morgan is a little more bearish on the shares. It downgraded its outlook on the stock last week. The broker said WiseTech Global is no longer the market’s biggest tech company after handing over the reins to Xero Ltd (ASX: XRO) last month. As a result, JP Morgan downgraded WiseTech shares to a hold rating with a $40 price target.

The post Here’s what brokers tip for WiseTech shares over the next 12 months appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why are ASX 200 tech stocks like WiseTech, Life360 and Xero shares getting hammered on Tuesday?
• 3 ASX stocks I’d buy during a sharemarket crash
• Why Xero shares could be the best tech pick on the ASX right now
• Forget SpaceX shares and buy these ASX tech stocks

JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Samantha Menzies 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 JPMorgan Chase, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Consumer shares can be hard to own when households are under pressure.

Sales growth can slow, margins can tighten, and investors often become impatient very quickly. But I think this is the type of environment where patient investors can start looking for opportunities before confidence improves.

Two cheap ASX shares I would consider buying before the next consumer recovery becomes more obvious are named in this article.

Accent Group Ltd (ASX: AX1)

Accent Group has been through a painful period, with its share price down around 66% from its high. I think that weakness has created a more interesting setup.

The company owns a large portfolio of footwear and lifestyle banners, including The Athlete’s Foot, Platypus, Hype DC, Nude Lucy, Skechers, and Stylerunner. That gives it exposure to several different customer groups, from performance footwear to streetwear, casual shoes, and youth fashion.

The attraction for me is that footwear is a repeat-purchase category. Customers may delay purchases when budgets are tight, but shoes still wear out, trends change, kids grow, and athletes keep needing product.

I also think the group has more levers than a smaller retailer.

It can adjust store formats, improve ranges, negotiate with landlords, grow stronger brands, and use its scale with suppliers. Its Sports Direct rollout could also add a different growth angle if management executes well.

This is still a higher-risk retail recovery story. Consumer demand could stay weak for longer, and retail turnarounds rarely move in a smooth line.

But I think the market may already be pricing in a very cautious outlook. If trading stabilises and management starts to rebuild earnings, Accent could offer meaningful upside from today’s depressed levels.

Nick Scali Ltd (ASX: NCK)

Nick Scali is another cheap ASX share I would consider before the mood improves. Its shares are down over 40% from their high.

Furniture retail is closely tied to confidence, housing activity, renovation spending, and household budgets. When consumers feel stretched, a new sofa or dining table can be delayed.

That is why the stock can come under pressure during tougher retail conditions.

But I think Nick Scali has a strong long-term position. It has built a premium furniture brand with good margins, a disciplined store model, and a reputation for managing the cycle better than many retailers.

The UK opportunity also makes the story more interesting. Offshore expansion adds execution risk, but it gives the business another way to grow beyond the Australian market.

I like companies that can come through a softer period with their brand still intact and their balance sheet strong enough to keep investing. Nick Scali fits that description for me.

If interest rates ease in 2027, housing turnover improves, or consumers become more willing to spend on the home again, I think the earnings outlook could look better than it does today.

Foolish Takeaway

Consumer recovery stories can feel uncomfortable because the good news is often missing at the point of purchase.

That is part of the appeal. By the time shoppers feel confident again, and earnings momentum is obvious, the share prices may already have moved. I would rather look at businesses with strong brands, repeat demand, and management teams that can keep improving while conditions are difficult.

Accent and Nick Scali both carry risk, but I think they are worth considering before the next consumer upswing becomes clear.

The post Down 40%+! 2 cheap ASX shares I’d buy before the recovery becomes obvious appeared first on The Motley Fool Australia.

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• Could this fully-franked ASX dividend share be too cheap to ignore?

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

The S&P/ASX 200 Index (ASX: XJO) enjoyed a happy hump day session this Wednesday, pushing the value of many ASX shares higher after yesterday’s rough start to the short trading week.

It was a bit of a wild session for the ASX 200 today, with the index dipping into the red at one point. But investors regained their optimism, and the index finished 0.57% higher at 8,653.3 points.

This successful session for Australian investors comes after a mixed night on the American markets.

The Dow Jones Industrial Average Index (DJX: .DJI) fared decently, rising by 0.17%.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) went the other way, dropping a chunky 0.97%.

But let’s return to the local markets now and dive a little deeper into what the different ASX sectors were up to today.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Why might Pro Medicus shares soon be under pressure?
• 3 compelling reasons to buy the rebound in Coles shares today
• Could this struggling ASX 200 stock be about to receive a takeover offer?
• Why Develop Global, IDP Education, JB Hi-Fi, and Wesfarmers shares are pushing higher today
• 3 oversold ASX shares to target right now for 70% gains

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc, Steadfast Group, and Super Retail Group. The Motley Fool Australia has positions in and has recommended Steadfast Group and Super Retail Group. The Motley Fool Australia has recommended Aub Group, Light & Wonder Inc, and Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DroneShield Ltd (ASX: DRO) is one of the more closely watched growth shares on the ASX.

That is easy to see why. The company sits in a market that has moved from niche defence technology to a major global security issue.

Drones are now cheap, flexible, and increasingly capable. That creates a serious challenge for militaries, airports, prisons, public events, critical infrastructure, and government sites.

I think DroneShield shares remain a buy in June for three key reasons.

The market is getting bigger

The first reason is the size of the opportunity. Counter-drone technology is no longer a theoretical theme. Governments and security agencies are now dealing with real drone risks across battlefields, borders, cities, and infrastructure.

That creates demand for systems that can detect, track, identify, and defeat hostile or unwanted drones.

I like DroneShield because it is positioned across several parts of that chain. The company is not simply selling one piece of equipment. Its offering includes sensors, electronic warfare systems, command-and-control software, and portable systems that can be used across different environments.

That breadth could be important as customers look for practical solutions rather than one-off products.

The market will not always grow in a straight line, and defence procurement can be slow. But I think the direction of travel is clear. Drones are becoming more central to modern conflict and security planning, which should keep demand for counter-drone capability rising.

Contract momentum is building

The second reason is that DroneShield is converting the theme into real customer activity.

This is important because a good theme is not enough on its own. Investors need to see that customers are willing to spend money, sign contracts, and deploy the company’s technology.

Recent contract wins suggest DroneShield is gaining traction in important markets. These wins also help build credibility. Defence and government customers can be demanding, so each deployment can make the business more visible to other potential buyers.

I also like the potential for follow-on work. Counter-drone systems can require software, training, subscriptions, warranties, maintenance, upgrades, and additional units over time. If DroneShield can become trusted by customers, the relationship may extend well beyond the first order.

There are still risks to think about. Contract timing can be uneven, large orders can be hard to predict, and the company needs to keep scaling production and support. But I think the recent momentum gives investors more evidence that DroneShield’s technology is being taken seriously.

The valuation looks more interesting

The third reason is value. DroneShield has been a volatile share, and investors have seen just how quickly expectations can move. Trading around $2.77, its shares are now down almost 60% from their high.

I think that makes the risk/reward more interesting.

The business is still exposed to a powerful long-term theme, but the share price is no longer sitting near its peak. For investors who missed the earlier run, the pullback may offer a better entry point.

That does not automatically make the stock cheap. DroneShield is still a growth company, and its valuation depends heavily on future contract wins, margin performance, production scaling, and customer adoption. If orders disappoint, the share price could remain under pressure.

But I think the lower share price gives investors more room for things to go right.

If DroneShield continues winning work, growing revenue, and proving that counter-drone demand can translate into a much larger business, today’s price could look attractive with the benefit of hindsight.

Foolish takeaway

DroneShield shares are not for investors looking for a quiet blue-chip stock.

This is a growth company in a fast-moving defence technology market, and the share price could remain volatile.

But I think June is still a good time to consider buying. The drone threat is becoming more serious, customers are spending real money on counter-drone capability, and the recent pullback has made the valuation more appealing than it was near the highs.

For patient investors who can handle the risk, I think this remains one of the more compelling growth stories on the ASX.

The post 3 reasons to buy DroneShield shares in June appeared first on The Motley Fool Australia.

More reading

• Here are the 10 most shorted ASX shares
• Iran war impact on ASX defence shares and ETFs
• DroneShield shares slump 18% in a month: Has the ASX defence stock finally lost steam?
• Should I buy DroneShield shares after its US contract win?
• Why DroneShield, Pro Medicus, SRG Global, and Woodside shares are charging higher today

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

Some ASX growth shares are exciting because they are attached to a hot theme.

I prefer businesses with more practical growth stories. They help families, advisers, consumers, and households solve real problems, and they still have room to grow over time.

The three ASX growth shares in this article all look very different. But I think each could be a strong long-term wealth creator if management continues to execute successfully.

Life360 Inc. (ASX: 360)

Life360 is one ASX growth share I would consider buying for exposure to the changing way families use technology.

The company is best known for its family location and safety app. That may sound simple, but I think the emotional value of the product is what makes it interesting.

Parents want to know their kids have arrived safely. Families want to stay connected without sending constant messages. Drivers want support if something goes wrong. Older family members may want an extra layer of reassurance.

That gives Life360 a role in everyday family life, not just occasional app usage.

The business also has several avenues for growth from here. Subscriptions remain important, but advertising, roadside assistance, driving insights, location-based tools, and artificial intelligence (AI) features could all add to the opportunity over time.

What I like most is that Life360 already has scale with almost 100 million monthly active users. A large user base gives the company room to improve monetisation without needing every dollar of growth to come from new users.

There are risks to consider, including privacy expectations, competition, and the need to keep users engaged. But I think Life360 has the sort of global consumer platform that could become much more valuable over the next decade.

Hub24 Ltd (ASX: HUB)

Hub24 is another ASX growth share I rate highly.

The company provides investment platform technology used by financial advisers and their clients.

I think it is a very attractive niche. Financial advice is becoming more demanding. Clients may have superannuation, managed accounts, pensions, tax considerations, estate planning needs, and changing goals. Advisers need systems that help them manage that complexity without drowning in administration.

Hub24 sits right in that workflow.

The appeal is not only about the growth of funds under administration. It is the way modern platforms can become central to an advice practice. Once advisers are using a platform every day, switching can be inconvenient and costly.

I also think there is still plenty of room for market share gains. Wealth management in Australia is large, and advisers continue to look for better technology, better service, and more efficient tools.

Competition remains strong, and platform businesses can be sensitive to market falls. But I think Hub24 has built a strong brand in an industry where trust and service quality matter.

Breville Group Ltd (ASX: BRG)

Breville is a different kind of growth share.

It is not a software platform or app business. It is a premium appliance company with a global brand.

What I like about Breville is that its best products can become part of daily routines. Coffee machines are the clearest example. For many customers, at-home coffee is not a one-off purchase decision. It becomes a habit.

That gives Breville a strong foundation if it can keep designing products that feel premium, useful, and worth paying more for.

I also think the company still has international growth potential. A good brand can travel if the product quality, design, distribution, and pricing are right.

There are risks around consumer spending, competition, tariffs, and currency movements. But I like Breville’s mix of brand strength, product innovation, and global opportunity.

Foolish takeaway

The shares I like most for long-term growth are not always the loudest names in the market.

I am drawn to companies that can become more useful to their customers over time. Life360 can deepen its role in family safety, Hub24 can become more important to financial advisers, and Breville can keep building a global premium appliance brand.

If these businesses keep improving, I think they could reward patient investors over the years ahead.

The post 3 ASX growth shares I’d buy to build long-term wealth appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.