Author: openjargon

The recently announced Federal budget changes may make superannuation the best way for full-time working Australians to invest for passive income.

Superannuation has a low tax rate compared to many individuals, trusts, and companies. On top of that, it’s easy to invest for the long-term through the super structure.

One of the most important elements of passive income investing is to understand that the net income we receive from investments is an after-tax figure. Full-time working Aussies investing for passive income in their own name could lose a third of that passive income to tax each year, which is not ideal.

Superannuation is more appealing due to its lower tax rate in the accumulation phase than the usual individual’s tax rate for a full-time earner. In retirement, the tax rate could be 0%.

Every household’s tax situation is different, so we’ll look at a specific income level without mentioning tax from now on.

How much is needed in superannuation for $6,000 of monthly passive income?

Receiving $6,000 in dividends each month equates to an annual goal of $72,000 per year. Plenty of Australians would probably love receiving that amount of dividends each year without needing to do ongoing work for it.

Australian investors will need to consider what sort of investments they want to own and the yield that comes with that. I believe that ASX shares are the best choice for passive income, partly due to the potential for franking credits.

A portfolio with a dividend yield of 6% can be half the size of a portfolio with a dividend yield of 3% and generate the same level of dividend income.

For example, if a portfolio were $1.2 million in size, it would generate $72,000 of annual passive income with a 6% dividend yield. If a portfolio had a 3% dividend yield, it would need to be $2.4 million in size to generate the same level of annual payments.

Different dividend yields would require different-sized portfolios.

A 5% dividend yield would require a portfolio size of $1.44 million to make $72,000 annually.

A 4% dividend yield would require a portfolio size of $1.8 million.

The types of ASX dividend shares I’d want to buy

If an Australian superannuation investor wants to unlock mid-to-higher dividend yields, I’d consider quality companies with franking credits, good value, and reliable real estate investment trusts (REITs) and listed investment companies (LICs) with compelling passive-income track records.

Some of the ASX dividend shares I’d look at that offer a dividend yield of approximately 5% to 6% include farmland landlord Rural Funds Group (ASX: RFF), industrial property owner Centuria Industrial REIT (ASX: CIP), ASX blue-chip-focused LIC Australian Foundation Investment Co Ltd (ASX: AFI), the global quality share-focused fund WCM Quality Global Growth Fund (ASX: WCMQ), ASX share and global LIC investor L1 Long Short Fund Ltd (ASX: LSF), and Australia’s leading telco Telstra Group Ltd (ASX: TLS).

Names with a higher dividend yield that I’d suggest include diversified REIT Charter Hall Long WALE REIT (ASX: CLW) and various LICs, including WAM Leaders Ltd (ASX: WLE), Future Generation Global Ltd (ASX: FGG), Future Generation Australia Ltd (ASX: FGX), and Hearts and Minds Investments Ltd (ASX: HM1).

The post How much is needed in superannuation to target a $6,000 monthly passive income? appeared first on The Motley Fool Australia.

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• Here’s the dividend forecast out to 2028 for Woodside shares
• 5 things to watch on the ASX 200 on Wednesday
• 3 high-quality Australian shares I’d buy with $10,000
• How to stop wasting money and start building wealth with ASX shares

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Future Generation Global, Hearts And Minds Investments, L1 Long Short Fund, Rural Funds Group, and Wcm Quality Global Growth 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 positions in and has recommended Rural Funds Group and Telstra 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 $10,000 to invest in Australian shares today, I would put my money into companies that I believe can become more valuable over time.

With that said, here are three Australian shares I would consider in June.

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare is one Australian share I would be happy to buy with part of that $10,000.

The reason I like Sigma is that it now sits close to everyday health spending.

Customers do not only visit pharmacies when they are sick. They also buy vitamins, skincare and beauty products, personal care items, prescriptions, over-the-counter medicines, and everyday wellness products. That gives the business a level of repeat demand that I find attractive.

I also like the scale of the platform. A large pharmacy network can benefit from supplier relationships, distribution capability, brand recognition, customer data, and strong store traffic. In a cost-of-living environment, value still matters, and I think the Chemist Warehouse brand is well-positioned for shoppers seeking health and wellness products at competitive prices.

There are still risks to consider. Retail execution, pricing, competition, supplier terms, international expansion, and distribution performance all need to be managed well. But I think Sigma has the chance to become one of the most important healthcare retail businesses on the ASX over the next decade.

Goodman Group (ASX: GMG)

Goodman Group is another Australian share I would buy.

This is a property business, but I do not think it should be viewed as a simple landlord. Goodman owns, develops, and manages industrial and logistics assets in key global locations. Increasingly, it is also tied to the demand for data centre infrastructure.

That combination is powerful in my view. Modern supply chains need efficient logistics space close to consumers, ports, transport routes, and major cities. At the same time, cloud computing, artificial intelligence (AI), software, and digital services require more physical infrastructure.

Goodman is exposed to both.

What I like most is that the company has spent years building relationships, developing capability, and gaining access to locations where new supply can be hard to create. That can be a meaningful advantage when customers need high-quality space in the right places.

Interest rates, development costs, and data centre expectations can all affect sentiment. But I think Goodman has the type of asset base and management skill that can create value for many years.

Commonwealth Bank of Australia (ASX: CBA)

The third Australian share I would buy is the Commonwealth Bank of Australia.

CBA is not the cheapest major bank on the ASX. In fact, it often trades at a clear premium to its peers.

But I think that premium is understandable. The bank has one of the strongest deposit franchises in the country, deep customer relationships, and a digital offering that continues to set a high standard. Those things can be easy to underappreciate when investors focus only on the price-to-earnings (P/E) ratio.

Banking is a competitive industry, and margins, funding costs, bad debts, and regulation all need to be watched. But CBA has shown over many years that it can operate from a position of strength.

I also like the fully-franked dividends. They are not the only reason to own the stock, but they can add useful returns while the business continues to serve households, businesses, and investors across Australia.

For me, CBA remains the highest-quality major bank and a share I would be comfortable owning for the long term.

Foolish Takeaway

A $10,000 investment does not need to be built around one type of opportunity.

I like the idea of owning businesses that benefit from different parts of the economy: health and wellness spending, global logistics and digital infrastructure, and high-quality banking.

The share market will always offer plenty of distractions. But if I were investing $10,000 today, I would rather focus on companies with strong positions, clear demand, and the ability to stay relevant for years. That is what makes these three Australian shares stand out to me.

The post 3 high-quality Australian shares I’d buy with $10,000 appeared first on The Motley Fool Australia.

More reading

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• Why Morgan Stanley expects CBA shares to plunge another 22%
• Buy, hold, sell: Coles, BHP, CBA shares
• How to start investing in ASX shares with just $500
• BHP, CBA, and Westpac shares are sells this week: experts

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

Building wealth does not always start with finding the next big ASX share winner.

In many cases, it starts by taking a closer look at where your money is going each month.

Most of us have expenses that creep into our budgets without much thought. Streaming services we rarely use, takeaway meals, impulse purchases, and subscriptions that seemed like a good idea at the time.

On their own, they do not look like much. But over a year, they can add up to thousands of dollars.

The good news is that you do not need to make drastic lifestyle changes to improve your financial future. Sometimes it’s simply a matter of redirecting a portion of that spending into investments.

Turn small savings into investments

The first step is identifying where you can free up some cash.

For example, if you can save just $50 a week by cutting back on unnecessary spending, that’s around $2,600 a year that could be invested instead.

While $50 a week may not sound life-changing, investing that money regularly can make a meaningful difference over time.

Rather than spending it on things you’ll barely remember a few months from now, you could use it to build a portfolio of quality ASX shares or exchange-traded funds (ETFs).

That might mean investing in companies such as Wesfarmers Ltd (ASX: WES), which owns businesses including Bunnings and Kmart, or Woolworths Group Ltd (ASX: WOW), Australia’s largest supermarket operator.

Alternatively, investors could choose an ETF and gain exposure to a broad range of companies through a single investment.

Automate the process

I think one of the easiest ways to stay on track is to make investing automatic.

If money remains in your everyday bank account, there’s always a chance it will get spent. But if a set amount is transferred into an investment account each payday, you’re far more likely to stick with the plan.

The amount does not need to be large. What’s important is consistency.

Many successful investors have built sizeable portfolios not through huge one-off investments, but by investing regularly into ASX shares over long periods and increasing their contributions as their income grows.

Give compounding time to work

One of the most powerful forces in investing is compounding. That may sound cliched, but it is true.

When your investments generate returns, and those returns remain invested, your wealth can begin to grow at an accelerating rate.

For example, investing $300 per month in ASX shares and earning an average annual return of 9% could see a portfolio grow to more than $500,000 over 30 years.

Of course, returns are never guaranteed. Markets go through ups and downs, and there will be periods when portfolios lose value.

However, the longer your investment horizon, the more opportunity compounding has to work in your favour.

Foolish Takeaway

A common mistake investors make is believing that building wealth needs to be complicated or exciting.

In reality, some of the best results come from doing the basics well.

Spend less than you earn. Invest the difference. Focus on quality businesses or diversified funds. Reinvest dividends where possible. And stay invested through market volatility.

It may not be the most exciting strategy, but it has worked for countless investors over the years.

And it all starts with taking money that would otherwise disappear and putting it to work in the share market instead.

The post How to stop wasting money and start building wealth with ASX shares appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Don’t want to buy SpaceX shares? You may not have a choice
• 3 ASX small-cap shares to buy: Morgans
• Up 90% in a month, why did Megaport shares just get downgraded?
• Three ASX shares to buy right now according to Morgans

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

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

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• Three ASX shares to buy right now according to Morgans
• Leading brokers name 3 ASX shares to buy today
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• Why this ASX 200 stock is climbing after a $2 million insider buy

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 Temple & Webster Group. The Motley Fool Australia has recommended Eagers Automotive Ltd, Gqg Partners, Premier Investments, and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It seems that the initial public offering (IPO) of SpaceX (NASDAQ: SPCX) shares is quickly turning into one of the biggest spectacles the investing world has ever seen. I don’t know about you, but I can’t recall a time when the floating of an American company on the American stock markets prompted Australian brokers like CommSec to offer Australian investors the chance to participate.

And participate they seemingly are. Every time I have logged onto CommSec’s website in recent weeks, I have been greeted with “We’re experiencing extremely high call volumes”, followed by a prompt explaining to visitors how they can participate in the IPO. 

To labour the point one more time, this is unprecedented.

SpaceX shares’ IPO to shake up the world of investing

It seems more than a few Australian investors are relishing the opportunity to buy SpaceX shares as soon as they can.

SpaceX, helmed by Elon Musk, is behind some of the world’s most advanced rocket technology. The company has several supplementary divisions, including its Starlink satellite internet services, artificial intelligence platform xAI, and the social media site X, formerly known as Twitter.

Musk already heads up electric battery and vehicle company Tesla Inc (NASDAQ: TSLA). SpaceX will be his second public company, and, if the IPO goes off as planned, the second of Musk’s companies to find a spot in the top ten largest stocks listed on the US markets.

Given this fact, it’s not hard to see why some are speculating that this IPO could well make Elon Musk the world’s first trillionaire.

However, Musk is a divisive figure for a multitude of reasons. Not all Australians would relish the chance to own shares of one of his companies. Unfortunately for those investors, we may not have a choice.

As we’ve already touched on, SpaceX looks destined to become one of the largest public companies in the world when it IPOs. The company is aiming for a market capitalisation of US$2.5 trillion. If hit, that would put it as the USA’s sixth-largest public company, right between Amazon.com Inc (NASDAQ: AMZN) and Broadcom Inc (NASDAQ: AVGO).

This fact makes it almost impossible for Australians to avoid having money tied up in SpaceX shares. Let me explain why.

Index funds and super

Firstly, anyone who owns a US-centric ASX exchange-traded fund (ETF) or index fund will own SpaceX shares. Popular ASX ETFs, whether it be the Vanguard MSCI Index International Shares ETF (ASX: VGS), the iShares S&P 500 ETF (ASX: IVV), or the BetaShares Nasdaq 100 ETF (ASX: NDQ), will all have to hold SpaceX as a relatively major holding. So if you own any of these funds, or the myriad of ETFs that offer exposure to the US markets, a slice of SpaceX stock will indirectly arrive in your brokerage account soon after the IPO fires off.

But even Australians who don’t own an international index fund or ETF will likely be exposed to SpaceX shares.

That’s because the vast majority of our superannuation funds allocate a large chunk of your money for investment in international shares. The US markets typically occupy a large chunk of that allocation, and typically include the market’s largest companies. Of which SpaceX looks likely to join the ranks.

As such, for better or worse, it seems none of us will be able to avoid an investment in SpaceX when the company goes public. Hopefully it works in our favour.

The post Don’t want to buy SpaceX shares? You may not have a choice appeared first on The Motley Fool Australia.

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• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Sebastian Bowen has positions in Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, BetaShares Nasdaq 100 ETF, Broadcom, Tesla, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX small-cap shares are underperforming the broader market in 2026.

An ASX small-cap share typically has a market capitalisation of between approximately $300 million and $2 billion.

The S&P/ASX Small Ords Index (ASX: XSO) is down 9.8% versus a 2.3% dip in the S&P/ASX All Ords Index (ASX: XAO) year-to-date.

However, Morgans sees opportunity with these three ASX small-cap shares.

Let’s find out why.

Tasmea Ltd (ASX: TEA)

The Tasmea share price is $8.14, down 1.1% today and up 94% in the calendar year to date (YTD).

Tasmea is a skilled services company that provides essential maintenance, engineering, and specialised project services.

The company operates in many industries including mining, oil and gas, waste and water, power and renewable energy, and defence.

Morgans has a buy rating on this ASX small-cap share in the industrials sector.

In a new note, the broker raised its 12-month share price target substantially from $5.25 to $9.15 following acquisition news.

Morgans said:

TEA has agreed to acquire Victorian specialist electrical contractor Maxim Group for up to $254m (~5.4x FY26F EV/EBIT).

The deal is ~31% EPS accretive, scales TEA’s Electrical segment to >$100m EBIT and diversifies earnings away from resources into data centres, infrastructure and Battery Energy Storage Systems (BESS).

TEA will look to leverage its regional expertise as data centres increasingly move out of metropolitan areas.

Maxim’s owner-led team is retained and aligned via scrip and a three-year earn-out.

We make meaningful EPS changes of +30-34% in each of FY27 and FY28. BUY maintained.

Vysarn Ltd (ASX: VYS)

The Vysarn share price is 94 cents, up 2.4% today and up 28% YTD.

Vysarn provides production-critical services to the resources, construction, and utilities industries. 

Morgans upgraded this ASX materials small-cap share after Vysarn announced it was buying an irrigations systems company.

The broker lifted its rating from speculative buy to buy, and raised its target price from 90 cents to $1.10.

The broker said:

VYS is acquiring NewGround, adding highly accretive (~25% EPS) annuity-style earnings that, alongside greater customer-base diversification in the industrial division, materially increases earnings visibility.

The limited upfront cash component of $8.3m preserves balance sheet flexibility, providing further capacity to continue building out its integrated water-services platform via acquisitions.

Incorporating NewGround from early October, we raise our EPS forecasts in FY27 and FY28 by +19 and +24% respectively.

Reflecting the improvement in earnings quality and reduced volatility, we upgrade VYS from Speculative Buy to Buy.

While the Kariyarra asset management business carries a binary outcome, at the current share price, investors are getting this optionality for free.

Tourism Holdings Ltd (ASX: THL)

The Tourism Holdings share price is $2.06, up 1.5% today and down 10% YTD.

Tourism Holdings rents and sells holiday campervans in Australia, New Zealand, and the US.

Morgans has a buy rating on this ASX industrials small-cap share with a $2.58 target.

In a new note, the broker said:

Unsurprisingly, given the conflict in the Middle East, THL has revised its FY26 NPAT guidance given weaker than expected RV sales.

The conflict, higher fuel prices and cost of living pressures push out the earnings recovery despite all of THL’s internal initiatives to improve the business.

Tourism Holdings is also listed on the New Zealand Stock Exchange at NZ$2.47 per share.

Morgans notes that BGH Capital and the Trouchet shareholders have issued a revised takeover offer of NZ$3.10 for the company.

The post 3 ASX small-cap shares to buy: Morgans appeared first on The Motley Fool Australia.

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

Megaport Ltd (ASX: MP1) shares rocketed 19% higher last week, and set a new 52-week high of $21.16 on Friday.

The share price spike followed Megaport’s announcement that it had won four new AI infrastructure contracts worth $458.9 million.

The contracts necessitate major capital expenditure, so Megaport launched a fully underwritten $827.3 million entitlement offer.

The company completed the institutional component of the offer, priced at $14.30 per share, on Friday.

Today, Megaport shares are maintaining their upward trajectory despite the broader market sinking into the red.

Megaport shares are 0.65% higher at $18.60 while the S&P/ASX 200 Index (ASX: XJO) is down 0.2%.

Broker downgrades winning ASX 200 tech share

Morgans has just published a new note on Megaport shares.

The broker downgraded the ASX 200 tech share from a buy to accumulate rating.

Morgans points out that it did so following a 90% increase in the Megaport share price over just one month.

The broker also lifted its 12-month target price from $15.50 to $21.

Morgans said:

MP1’s move to expand TAM from comms to compute has paid off handsomely over the last few months with more compute ARR sold in the last 1.5 months than comms ARR has been sold in the last 13 years.

This success in compute is symbiotic with the core communications platform and AI where GPU’s further deepen this symbiotic relationship. Consequently, MP1 is launching an on-demand globally distributed AI Inference cloud.

This, plus recent take-or-pay-style contract wins has prompted a ~A$809m capital raise.

We materially lift our earnings and our Target Price lifts to $21 per share.

It was less than a month ago that Morgans reaffirmed its buy rating on Megaport shares and raised its target from $13.50 to $15.50.

An accumulate rating means Morgans is still optimistic on this ASX 200 tech share, and still recommends buying it.

However, the accumulate rating signals a bit of caution, given the 12-month price target implies only 13% upside from here.

Entitlement offer for retail investors opens Thursday

The institutional component of the entitlement offer raised about $518 million.

Management expects the retail component, to be offered to ordinary investors from Thursday, will raise $309 million.

Investors who already held Megaport shares at 7pm last Friday are entitled to participate in the offer.

The retail component will close at 5pm (Sydney time) on Monday, 29 June.

Under the offer, shareholders are entitled to apply for one new Megaport share for every 3.08 shares they already own.

Details about how to apply for the new Megaport shares will be in the retail offer booklet, available Thursday.

The post Up 90% in a month, why did Megaport shares just get downgraded? appeared first on The Motley Fool Australia.

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

The team at Morgans has issued new research reports this week, setting out the case for buying shares in three very different sectors.

They reckon there’s upside of a minimum 28.4% to be had among the trio, with one share, admittedly a speculative buy, tipped to more than double.

Let’s have a look at the companies they like.

Civmec Ltd (ASX: CVL)

Shares in Civmec recently hit record highs and have delivered a return of more than 70% over the past year.

That’s perhaps not a surprise, given the company’s announcement last week that its order book had hit a record high of $1.5 billion.

This followed the company being awarded a further package of work by Iluka Resources Ltd (ASX: ILU) at its Eneabba Rare Earths Refinery in Western Australia.

Civmec was also awarded the major construction contract for Perth Park, “Western Australia’s premier entertainment and sporting precinct on the Burswood Peninsula”.

The company also said:

Civmec has recently secured a number of new awards, panel agreement extensions and new orders across its maintenance portfolio, increasing utilisation at its permanent regional facilities. The Group has also secured packages of work from long-term clients across the lithium, rare earths, critical minerals, iron ore, coal, alumina and hydrocarbons commodities, as well as manufacturing work to be delivered from its Newcastle facility.

The Morgans analyst team said they believed the Iluka and Perth Park contracts “almost entirely de-risks expectations for strong earnings growth in FY27”.

They added:

We expect Civmec to enjoy a strong 12-24 months given increased earnings certainty and an unprecedented outlook supported by capex programs across a broad range of commodities.

Morgans has a price target of $2.30 on Civmec shares compared to $1.79 currently.

IDP Education Ltd (ASX: IEL)

The Morgans team said on the downside, visa data in IDP’s key markets “remains in deep contraction”, with Australia, Canada, and the UK all experiencing material declines.

But on the upside, China is scaling quickly, they said, “and the group continues to demonstrate pricing power across both IELTS and Student Placement”.

IELTS is the globally recognised standard test for English language proficiency.

Morgans said they viewed IDP’s earnings reset as “cyclical rather than structural”.

They added:

Visa restrictions have tightened across all four key destination markets, compressing volumes materially, but underlying demand for international study remains supported by Asian demographics and IDP retains clear market leadership in both IELTS and student placement. Yield growth through the downturn speaks to genuine franchise pricing power. We see scope for earnings to stabilise and return to growth from FY27, led by the completed A$25m cost-out, China IELTS optionality and a stabilising placement backdrop as policy settings evolve.

Morgans has a price target of $3.15 on IDP shares compared to $2.11 currently.

Comet Ridge Ltd (ASX: COI)

This company recently renegotiated a deal with Santos Ltd (ASX: STO) under which it would acquire the larger company’s interest in the Mahalo gas project.

The renegotiation required a smaller up-front cash payment, and also extended the completion date by three months.

The Morgans team said Comet Ridge had successfully used the uncertainty around Federal gas policy to its advantage.

They said the company was trading at a heavily discounted rate with regard to its gas holdings, and they have a price target of 27 cents on the shares compared to 12.5 cents currently, with a speculative buy rating.

The post Three ASX shares to buy right now according to Morgans appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
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• These shares are being dumped from the ASX 200 index
• This ASX stock just hit a record high. Here’s why investors are buying
• Here are the top 10 ASX 200 shares today

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

ResMed Inc (ASX: RMD) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) sleep disorder treatment company closed on Friday trading for $27.64. In afternoon trade on Tuesday, following the Monday King’s Birthday ASX trading holiday, shares are swapping hands for $27.91 apiece, up 1%.

For some context, the ASX 200 is down 0.3% at this same time.

Taking a step back, however, ResMed shares remain down 28.2% over the past 12 months, materially lagging the 0.2% one-year gains of the benchmark index.

Which brings us back to our headline question.

Resmed shares: Buy, hold, or sell?

MPC Markets’ Mark Gardner recently analysed the outlook for the ASX healthcare stock (courtesy of The Bull).

“ResMed remains a high-quality respiratory care business,” he noted.

Addressing the past year’s selling pressure, Gardner noted:

Concerns about the impact of GLP-1 weight loss drugs have weighed on sentiment, although recent analysis suggests the big undiagnosed sleep apnoea market still provides a long runway for device demand.

He added:

The company continues to benefit from a strong mask and device portfolio, but investors were disappointed management left its fiscal year 2026 outlook unchanged after a solid third quarter result.

Connecting the dots, Gardner issued a hold recommendation on ResMed shares.

“Our hold recommendation balances the quality of the franchise against near term uncertainty around margins, competition and investor expectations,” he concluded.

What’s the latest from the ASX 200 healthcare share?

ResMed released the third-quarter results Gardner mentioned above on 1 May.

Highlights included revenue of US$1.43 billion. That was up 11% year on year, or up 8% in constant currency.

The quarter also saw ResMed achieve an operating cash flow of US$554 million, with US$262 million returned to shareholders through share repurchases and dividends.

ResMed pays dividends on a quarterly basis.

“Our third quarter results reflect the continued strength of our global business, driven by ongoing demand for our market-leading products and disciplined execution of our strategy,” ResMed CEO Mick Farrell said.

Farrell added:

These results highlight the momentum behind our strategy, and the continued progress we are making in shaping the future of sleep health, breathing health, and healthcare in the home.

As we advance through the remainder of our fiscal year 2026, we remain focused on expanding access to care globally, scaling our digital health capabilities, and delivering further strong, profitable growth.

Amid high expectations and potentially the lack of an FY 2026 outlook upgrade, ResMed shares closed down 7.6% on the day of the results release.

The post Down 28% in a year, should I buy the dip on Resmed shares right now? appeared first on The Motley Fool Australia.

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

With so many shares to choose from on the Australian share market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are outlined below. Here’s why they are bullish on them:

CSL Ltd (ASX: CSL)

According to a note out of UBS, its analysts have retained their buy rating on this biotech giant’s shares with a reduced price target of $158.00. UBS is feeling upbeat about the company’s outlook, believing that this year could mark the low point for CSL’s profits. This is particularly the case given the cost savings that the company’s transformation program is targeting and lower plasma costs following a shift in collections. In light of this and the CSL share price trading at a discount to peer multiples, UBS thinks now could be an opportune time for investors to buy shares. The CSL share price is trading at $99.19 this afternoon.

Eagers Automotive Ltd (ASX: APE)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this automotive retailer’s shares with a slightly trimmed price target of $28.00. Bell Potter believes the Eagers Automotive shares look reasonable value trading on PE ratios of ~20x and ~17x in 2026 and 2027. The latter includes the first full year of the CanadaOne investment, which it feels is the more relevant PE multiple to focus on. In addition, Bell Potter believes that the recent trading update at the annual general meeting has effectively wiped the slate clean, so there should be no surprises with its half-year results. The Eagers Automotive share price is fetching $21.53 at the time of writing.

IDP Education Ltd (ASX: IEL)

Analysts at Morgans have upgraded this student placement and language testing platform provider’s shares to a buy rating with a $3.15 price target. According to the note, recent visa data shows that IDP Education’s key destination markets remain in deep contraction, with Australia, Canada, and the UK all experiencing material volume and visa grant rate declines. However, positively, the company’s China IELTS is scaling quickly, the cost base reset is on track, and it continues to demonstrate pricing power across both IELTS and Student Placement. So, with structural demand drivers for international study intact, a leaner cost base, growing China optionality, and ongoing technology/product development, Morgans is willing to look through the near-term backdrop and recommends investors buy its shares while they are trading on a cyclically depressed multiple. The IDP Education share price is trading at $2.11 on Tuesday.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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