Author: openjargon

Woodside Energy Group Ltd (ASX: WDS) shares are rising on Wednesday following the release of a first-quarter update from the energy giant.

This was not necessarily a blowout quarter, but I think there were a few important takeaways that reinforce the longer-term investment case.

Here is how I see it.

Reliability remains a real strength

One of the standout aspects of the update was just how reliable Woodside’s assets continue to be.

Key operations like Sangomar, Pluto LNG, and the North West Shelf all delivered reliability at or above 99% .

That might not sound exciting, but I think it matters more than it gets credit for.

In a business like energy, consistency drives cash flow. High reliability means assets are producing when they should, which supports earnings and helps smooth out volatility over time.

Even with some disruption from cyclones late in the quarter, the company was able to maintain strong operational performance overall.

For me, that reinforces the idea that Woodside’s asset base is high quality.

Production dipped, but pricing improved

Production volumes came in at 45.2 million barrels of oil equivalent, down 8% from the previous quarter .

That was largely due to seasonal weather impacts, which I do not see as a structural issue.

At the same time, pricing moved in the opposite direction. Woodside achieved an average realised price of US$63 per barrel of oil equivalent, up 11% from the prior quarter .

I think this balance is important. Energy companies are always dealing with a mix of volume and price. In this case, lower production was partly offset by stronger pricing, which helps support overall revenue.

It also highlights how sensitive earnings can be to commodity prices. If pricing remains firm, that can do a lot of the heavy lifting.

Growth projects are progressing well

For me, this was probably the most important takeaway.

Woodside continues to make strong progress on its major growth projects, particularly Scarborough, which is now 96% complete and on track for first LNG in the fourth quarter of 2026 .

Other projects like Trion and Louisiana LNG are also advancing and remain on budget. I think this is important because it underpins future production and cash flow growth.

These are long-life assets that can generate returns for years once they come online. Seeing them progress on time and on budget reduces a lot of execution risk.

It also gives investors more confidence in the medium-term outlook.

Are Woodside shares a buy?

I think they are. This update does not change the core story for me.

Woodside continues to operate a portfolio of high-quality assets, benefits from strong commodity pricing, and is steadily bringing major growth projects closer to completion.

There will always be volatility in energy markets. Production can move around, and prices can change quickly.

But when I look at the bigger picture, I think the combination of reliable operations, improving pricing, and a clear pipeline of projects puts the company in a strong position over time.

For investors looking for income and exposure to global energy demand, I believe Woodside shares still look like a solid option.

The post 3 key takeaways from Woodside’s first-quarter result appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why Ramelius, Liontown and Woodside shares are making waves on Wednesday
• Up 40% in 2026: Why are Woodside shares charging higher today?
• Woodside Q1 2026 earnings: Revenue grows, Scarborough and Trion progress
• 5 things to watch on the ASX 200 on Wednesday

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.

When I think about what drives long-term outperformance, I come back to a fairly simple idea. 

The businesses that tend to win over a decade are usually the ones with consistent demand, pricing power, and the ability to quietly grow earnings year after year.

That is why I think Woolworths Group Ltd (ASX: WOW) shares have a real chance to beat the market over the next 10 years.

A business built on everyday demand

Woolworths sits in one of the most resilient parts of the economy. People still need to buy groceries regardless of what interest rates are doing or how the broader market is performing.

That does not make it immune to short-term pressures. Margins can move around, and competition can pick up. But over long periods, this kind of demand tends to be stable and predictable.

That stability matters more than it might seem. It gives Woolworths a consistent base of revenue that can compound over time, even if growth is not explosive in any single year.

Scale that supports earnings growth

One of the key advantages Woolworths has is scale. It operates one of the largest supermarket networks in Australia, which gives it significant buying power and operational efficiency.

Over a 10-year period, even modest improvements in margins, combined with steady sales growth, can lead to meaningful earnings expansion.

A steady compounding profile

Woolworths is not the type of ASX share that typically delivers sudden, dramatic gains. But that is not really the point here.

What matters is consistency. If a business can grow earnings at a steady pace, reinvest into its network, and maintain strong market share, the compounding effect can become quite powerful over time.

It is also worth noting that Woolworths continues to be viewed as a high-quality defensive within portfolios, sitting alongside other stable names that can deliver dependable growth.

That kind of positioning tends to attract long-term capital, which can support valuation over time.

Why time is the key factor

Over shorter periods, Woolworths shares might lag the market. That can happen if growth stocks are leading or if defensive names fall out of favour.

But over a decade, the equation shifts. The combination of steady earnings, strong market position, and essential demand can add up in a way that is easy to underestimate.

For example, over the last 10 years, Woolworths shares have delivered an average total return of 9% per year.

This is not about trying to pick the fastest grower. It is about owning a business that can keep moving forward, year after year, with fewer surprises along the way.

Foolish takeaway

Woolworths is unlikely to be the most exciting share on the ASX. But over 10 years, it does not need to be.

If it continues to grow steadily, defend its market position, and benefit from its scale, I think it has a solid chance of delivering returns that quietly edge past the broader market.

The post Why I think Woolworths shares could beat the market over 10 years appeared first on The Motley Fool Australia.

More reading

• $250,000 to invest for passive income? Here’s how I would build a portfolio
• Is it time for investors to turn back to defensive ASX shares?
• If I had to build a simple ASX portfolio today, this is what I’d do
• Nervous investors turn to ASX 200 defensives as global energy shock drags on
• 5 ASX dividend shares I’d buy for a second income

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

When it comes to companies operating in the gaming and poker machine spaces Australia has a couple of the world majors, with Aristocrat Leisure Ltd (ASX: ALL) being one.

New broker report

RBC Capital Markets has just initiated coverage of the stock, and they have an outperform rating on it, as well as a bullish share price target which we’ll get to shortly.

Interestingly one of the characteristics of gaming spending over the past six weeks has been its resilience in the face of global uncertainty.

AS RBC’s Mark Wilson says in his report on Aristocrat:

Notwithstanding the Iran conflict and cost of living pressures, global gaming markets remain resilient as evidenced by recent gaming expenditure data. In 1Q26, US commercial gaming revenue was up 5% on the previous corresponding period with land-based casino gross gaming revenue (GGR) up 3% and iGaming GGR up 18%.

Mr Wilson said Aristocrat still has room to grow, despite already holding a commanding position in the market.

As he said:

Aristocrat’s recent game performance highlights that it is well-positioned to grow incremental market share, notwithstanding that it has a current 43% share of the North American Gaming Ops market and a 31% share of the Outright Sales market.

Mr Wilson said RBC believes there is upside risk to their earnings forecasts if the company’s Aristocrat Interactive division can achieve its revenue target of US$1 billion by FY29.

He went on to say:

The iGaming market is growing in excess of 20% pa and Aristocrat has just a 3.5% share of the iCasino market, ahead of the launch of Lightning Link.

More broadly Mr Wilson said the company’s balance sheet was in fine shape.

Given the strength of Aristocrat’s recurring revenue businesses, we expect Aristocrat will be able to generate free cashflow in excess of $1.7 billion per annum, which has been one of the key drivers of Aristocrat’s strong balance sheet. This provides the company the ability to seek acquisition opportunities as well as return surplus capital to shareholders via share buybacks. We expect these to be ongoing.

Capital management options

Mr Wilson’s report says the company has just $234 million remaining under its current $1.5 billion buyback program which is scheduled to run until March 2027, raising the prospect that a new buyback could be launched.

RBC Capital Markets has a share price target of $58 on Aristocrat shares, compared with the current price of $47, implying potential upside of 23%.

Aristocrat is valued at $27.86 billion, and pays a dividend yield of 2%.

The post This ASX gaming company could deliver 20%+ returns: RBC Capital Markets appeared first on The Motley Fool Australia.

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• Down 30%! 3 ASX shares I’d buy now
• Down 50% in the past year, are these ASX 200 shares too cheap to ignore?
• Buy, hold, sell: Aristocrat, Lovisa, Bendigo Bank shares

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Building a passive income portfolio is not about chasing the highest dividend yield. For me, it is about finding a balance between reliable income today and the ability for that income to grow over time.

If I had $250,000 to invest for passive income, I would focus on a mix of high-quality ASX dividend shares and a couple of income-focused ASX ETFs to keep things diversified and simple.

Here is how I would approach it.

Start with a core of reliable income stocks

I would anchor the portfolio with a handful of large, established ASX shares that have a track record of paying dividends through different market conditions.

Commonwealth Bank of Australia (ASX: CBA) would be one of my starting points. The major banks are not cheap right now, but they remain some of the most consistent dividend payers on the ASX. CBA, in particular, has shown an ability to deliver relatively stable income, supported by its strong market position.

Telstra Group Ltd (ASX: TLS) would also be on my list. Telstra offers a relatively attractive dividend yield and benefits from recurring revenue through its core telecommunications business. It is not a fast grower, but for income, consistency matters.

Woolworths Group Ltd (ASX: WOW) adds a different layer. Its dividend yield is typically lower than banks or telcos, but the business is defensive. People still need groceries regardless of economic conditions, which can help support more stable earnings and dividends over time.

Add infrastructure for steady cash flows

Transurban Group (ASX: TCL) is another name I would include.

Infrastructure assets like toll roads tend to generate predictable, long-duration cash flows. Many of Transurban’s revenues are linked to traffic volumes and, in some cases, inflation, which can provide a degree of protection for income investors.

This type of exposure helps smooth out the portfolio, especially when more cyclical sectors become volatile.

Include resources for income and upside

BHP Group Ltd (ASX: BHP) would round out the core holdings.

Mining dividends can be more volatile because they depend on commodity prices. However, BHP has historically returned significant cash to shareholders during strong commodity cycles.

I would not rely on it for steady income every year, but it can provide a meaningful boost to portfolio income over time, along with exposure to global demand for resources.

Use ASX ETFs to diversify and simplify

To complement individual stocks, I would allocate part of the portfolio to income-focused exchange-traded funds (ETFs) like the Vanguard Australian Shares High Yield ETF (ASX: VHY) or the BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD).

These ETFs provide exposure to a broader basket of dividend-paying companies, which can help reduce the risk of relying too heavily on any single stock.

They also make the portfolio easier to manage. Instead of needing to constantly adjust individual holdings, the ETF structure does some of that work in the background.

How I would split the $250,000

Rather than overcomplicating things, I would aim for a balanced allocation across these ideas.

Roughly speaking, I would divide the portfolio between core dividend stocks and ETFs. The individual holdings provide targeted exposure to high-quality businesses, while the ETFs add diversification and help smooth income.

The exact percentages would depend on personal preference, but the key idea is to avoid concentrating too much in any one sector, especially banks or resources.

Foolish takeaway

A $250,000 passive income portfolio does not need to be complicated to be effective.

By combining reliable dividend payers like Commonwealth Bank, Telstra, Woolworths, Transurban, and BHP with diversified ASX ETFs such as the VHY or HYLD ETFs, it is possible to build a portfolio that generates income today while still having room to grow over time.

The post $250,000 to invest for passive income? Here’s how I would build a portfolio appeared first on The Motley Fool Australia.

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• Should you buy CBA shares for their ‘consistent profitability’?
• Is it time for investors to turn back to defensive ASX shares?
• How to dollar-cost average your way to passive income with ETFs
• If I’d put $6K in this ASX mining stock 12 months ago I’d have over $20k now

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra Group, Transurban Group, and Woolworths Group. The Motley Fool Australia has recommended BHP Group and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The team at Ord Minnett has just released updated guidance on ASX 200 stock Aurizon Holdings Ltd (ASX: AZJ). 

The company is Australia’s largest rail freight operator. It hauls bulk commodities, largely coal, as well as iron ore and agricultural products.

The company owns one of the world’s largest coal rail networks. The network links around 50 mines to three major ports in Queensland.

The rail network, comprising 2,670 kilometres of lines under a 99-year lease from the Queensland government, accounts for the majority of Aurizon’s earnings.

In 2026, this ASX 200 stock has raced ahead of the broader market. 

Since January, it has risen just over 15%, compared to a flat return for the S&P/ASX 200 Index (ASX: XJO). 

At the time of writing on Wednesday afternoon, shares are trading at $4.14 each. 

What is Ord Minnett’s latest view?

In a note out of Ord Minnett, the broker seemed impressed by the half-year results. 

Aurizon Holdings posted a first-half FY26 net profit around 10% higher than market expectations, driven by lower-than-forecast unit costs and higher-than-anticipated yields from its above-rail coal operations, and launched another share buyback valued at $100 million.

The broker said the key positive from the result was an increase in its dividend payout ratio to 90% (previously 80%). 

Ord Minnett said this is a level the company aims to maintain into the future. 

FY guidance updated

Ord Minnett also highlighted that Aurizon reiterated guidance for FY26 group operating earnings (EBITDA) of $1.68–$1.75 billion, versus market expectation near the midpoint at $1.71 billion, with EBITDA from its network, coal and bulk divisions all “expected to be higher than FY25”.

Dividend guidance for FY26 was also upgraded to $0.22–$0.23 per share from $0.19–$0.20. 

We highlight that incorporating the new dividend guidance and the $250 million in share buybacks already launched in the current fiscal year shows Aurizon is offering a total distribution yield, i.e.dividends plus share buybacks, of circa 7–8% in FY26.

For FY27, incorporating Ord Minnett’s EPS estimates, a 90% dividend payout ratio, and our forecast for another $250 million share buyback given Aurizon has sufficient balance sheet capacity, the total distribution yield would rise to around 9–10%.

Hold recommendation on valuation grounds

Based on this guidance, Ord Minnett raised its earnings per share estimates by 2.7%, 3.5% and 0.9% for FY26, FY27 and FY28, respectively. 

These earnings upgrades led us to increase our target price on Aurizon to $3.50 from $3.10, although we maintained our Hold recommendation on valuation grounds.

Despite the target price increase, this ASX 200 stock is currently trading at $4.14 per share, which is 15% above Ord Minnett’s target. 

The post Is this ASX 200 stock a buy, hold or sell after rising 15% year to date? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

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 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 looking to gain exposure to the beaten down tech sector, then it could be worth considering the two stocks in this article.

That’s because they have been named as buys and are tipped to rise strongly from current levels. Here’s what is being recommended:

Pro Medicus Ltd (ASX: PME)

The first ASX 200 tech stock that could be a buy is Pro Medicus.

It is a healthcare technology company with a specialised focus. Its Visage imaging platform is used by hospitals to process and analyse medical images quickly and efficiently.

The company has built a strong position in the United States, where it continues to win long-term contracts with major healthcare providers. These agreements provide visibility over future revenue and support high margins.

Demand for more efficient medical imaging is growing, particularly as data volumes increase in healthcare systems and radiologist shortages persist.

With a proven product and expanding customer base, Pro Medicus continues to show how specialised software can scale globally.

Morgans recently put a buy rating and $210.00 price target on its shares. Based on its current share price of $134.84, this implies potential upside of more than 55% over the next 12 months.

Putting that in context, a $10,000 investment in Pro Medicus shares would become approximately $15,500 if Morgans’ recommendation proves accurate.

Xero Ltd (ASX: XRO)

Another ASX 200 tech stock that could rise strongly is Xero.

It provides cloud-based accounting software to small and medium-sized businesses. Its platform sits at the centre of financial operations, making it a key tool for managing accounts, payroll, and payments.

The company’s growth opportunity remains significant. There are still many businesses globally that have yet to adopt cloud accounting solutions, and Xero continues to expand its presence in markets such as the United States.

It is also building out additional services, including payments and financial insights, which can increase revenue per user over time.

With a large market opportunity and multiple ways to grow, Xero remains well placed to expand over the long term.

UBS is bullish on this ASX 200 tech stock. The broker recently put a buy rating and $127.00 price target on Xero’s shares. Based on its current share price of $79.30, this implies potential upside of 60% for investors between now and this time next year.

To put that into context, a $10,000 investment would turn into approximately $16,000 if UBS is on the money with its recommendation.

The post These beaten down ASX 200 tech stocks could rise 55% to 60% appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro has positions in Pro Medicus and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Xero. 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.

As May approaches, investors are no doubt looking for opportunities that reflect both recent market moves and longer-term trends.

Some areas have been sold off and could be setting up for a recovery. Others continue to benefit from structural growth or offer exposure to high-quality businesses.

Here are three ASX exchange traded funds (ETFs) that stand out for different reasons.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

The first ASX ETF to look at is the BetaShares S&P/ASX Australian Technology ETF.

It has been caught up in the broader weakness across technology shares this year. That has pushed valuations lower across a number of its holdings, despite their underlying businesses continuing to execute.

Its portfolio includes companies such as NextDC Ltd (ASX: NXT), Pro Medicus Ltd (ASX: PME), and REA Group Ltd (ASX: REA).

With sentiment around tech currently subdued, the BetaShares S&P/ASX Australian Technology ETF offers a way to gain exposure to a group of companies that are still tied to structural growth, but trading on lower multiples than a year ago. This fund was recently recommended by analysts at BetaShares.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

Another ASX ETF worth looking at in May is the Betashares Global Cash Flow Kings ETF.

This fund focuses on companies that generate strong and consistent free cash flow. Rather than chasing emerging themes, it leans toward businesses with established earnings and the ability to reinvest over time.

Its holdings include companies such as Alphabet (NASDAQ: GOOG), Mastercard (NYSE: MA), and Palantir Technologies (NASDAQ: PLTR).

Alphabet is a good example of this approach. Its core search business produces significant cash flow, which supports continued investment in areas like artificial intelligence and cloud computing. That financial strength allows it to expand without needing to rely heavily on external funding. It was also recently recommended by analysts at BetaShares

BetaShares Global Cybersecurity ETF (ASX: HACK)

A third ASX ETF to consider in May is the BetaShares Global Cybersecurity ETF.

Cybersecurity has become a core requirement for businesses as more systems move online and digital threats become more sophisticated.

Its holdings include companies such as Cisco (NASDAQ: CSCO), Palo Alto Networks (NASDAQ: PANW), and Okta (NASDAQ: OKTA).

Okta is a good example of how the sector is evolving. It focuses on identity and access management, helping organisations control who can access systems and data. As businesses adopt more cloud-based tools, this type of service becomes increasingly important.

With demand for cybersecurity continuing to build, the future looks bright for the BetaShares Global Cybersecurity ETF and its holdings.

The post Why these ASX ETFs could be top picks in May appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Nextdc, Pro Medicus, and REA Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, BetaShares Global Cybersecurity ETF, Cisco Systems, Mastercard, Okta, and Palantir Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Palo Alto Networks and Pro Medicus. The Motley Fool Australia has recommended Alphabet, Mastercard, Okta, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s currently the season for quarterly reports, which tends to also be a good time to see what the brokers are saying about companies which have reported, or are just about to.

I’ve selected three reports from Macquarie on companies which fit the bill, two of which reported just in recent days.

So let’s have a look what they’re saying.

Whitehaven Coal Ltd (ASX: WHC)

This week, Whitehaven Coal released its quarterly report. The company revealed it had generated sales of 6.8 million tonnes of coal for the March quarter, broadly in line with the December quarter.

But while production was flat, the company received better prices for both its metallurgical and thermal coal. Given the continued troubles in the Middle East, this is expected to continue.

As the company said:

Long-term demand for seaborne high caloric value thermal coal, together with a structural supply shortfall from underinvestment in new mines and depletion of existing supply, remains a driver for longer-term price support for high caloric value thermal coal. In developing economies, thermal coal continues to play a critical role in delivering affordable and reliable access to electricity. This focus on energy security is expected to further support long-term demand for high-quality thermal coal. Disruptions are likely to continue to impact supply across the global energy complex for a period following cessation of Middle East tensions.

Macquarie has a price target of $9.75 on Whitehaven shares, compared with $8.28 currently.

Aurelia Metals Ltd (ASX: AMI)

Also this week, Aurelia Metals reported gold production of 13,000 ounces for the quarter, and that it had increased its cash balance from $85.6 million at the end of December to $94.7 million at the end of March.

Aurelia also increased its full-year production guidance, saying gold production was now expected to come in at 45,000 to 50,000 ounces, compared with the previous guidance of 35,000 to 40,000 ounces.

Forecast copper production, however, reduced from 3,000 to 4000 tonnes to 2.5-3000 tonnes.

Macquarie said in its research note on the company that gold production came in 17% higher than consensus estimates, although the company’s base metals production was weak.

Macquarie maintained its price target of 40 cents on the company’s shares. This is materially above its current share price of 31 cents, which increased 9.8% on Wednesday.

Amcor Ltd (ASX: AMC)

Amcor is yet to report its quarterly results, which are scheduled to come out on May 6, however Macquarie has put out a research note in advance.

The broker said they were expecting $200-$250 million in adverse working capital movements from an increase in raw materials costs, “which is likely to reduce AMC’s $1.8-$1.9 billion full year free cash flow guidance”.

Macquarie has reduced their earnings per share assumptions and therefore reduced their price target on Amcor from $86.50 to $84.63, however this is still well above the current share price of $54.13.

The post Macquarie names 3 ASX shares to buy appeared first on The Motley Fool Australia.

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• Should you buy Coronado Global and Whitehaven Coal shares?
• Why 29Metals, Aurelia Metals, Codan, and oOhMedia shares are racing higher today
• What are Whitehaven Coal shares worth following their quarterly results? 2 Brokers have their say
• 2 brokers rate this ASX gold stock a buy, with 50% upside forecast

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Amcor Plc and Macquarie Group. 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) and many ASX shares endured yet another red session this hump day, its third in a row this week, and seventh in total. By the time trading wrapped up, the ASX 200 had slid another 0.27% lower, leaving the index below 8,700 points at a flat 8,687.

This rather woeful Wednesday for the local markets comes after a similarly downbeat night over on the American stock exchanges.

The Dow Jones Industrial Average Index (DJX: .DJI) managed to snatch a loss from the jaws of victory, losing 0.053%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was more decisive, though, dropping 0.9%.

But let’s get back to ASX shares and assess the damage from today’s trading amongst the different ASX sectors.

Winners and losers

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

More reading

• Should you buy Coronado Global and Whitehaven Coal shares?
• Why 29Metals, Aurelia Metals, Codan, and oOhMedia shares are racing higher today
• Why is this ASX gold stock slipping despite new gold discoveries?
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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 recommended Lynas Rare Earths Ltd. 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.

APA Group (ASX: APA) shares have climbed another 0.6% to a three-year high of $10.18 at the time of writing. 

The latest increase means the shares are now 13% higher for the year-to-date, having rebounded nearly 19% since mid-January. APA shares are now also 22% higher than 12 months ago.

Why are APA shares climbing higher?

There is no price-sensitive news out of APA recently to explain the latest share price surge. The share price hike is likely the result of investors increasingly rotating into defensive income-generating shares during ongoing volatility.

APA is Australia’s largest energy infrastructure company, owning and operating an extensive portfolio of gas, electricity, solar, and wind assets.

The company is also a major owner and operator of Australia’s gas distribution network, including pipelines, gas-fired power stations, and storage facilities. It transports more than half the natural gas used in Australia. 

Since listing on the ASX in 2000, APA Group has substantially grown its energy assets. More recently, it has added solar farms to its portfolio. 

APA announced its latest expansion plans in February, around the same time it posted an impressive first-half FY26 result.

APA posted a 7.6% jump in underlying EBITDA to $1,092 million and upgraded its organic growth pipeline from $2.1 billion to around $3 billion for FY26 to FY28.

FY26 Underlying EBITDA guidance is unchanged at $2,120–$2,200 million, with expectation to exceed midpoint.

The company also said it is on track to achieve $50 million in full-year cost savings, helped by simplification efforts including the sale of its Networks business and pending divestment of its GDI stake.

It’s this continued long-term revenue which means the company is able to pay a consistent passive income to its shareholders too.

APA paid an interim dividend of 27.5 cents in the first half of FY26 and is guiding a full-year dividend of 58 cents per security. That translates to a forward distribution yield of 5.7%, partially franked, at the time of writing.

Are the shares a buy, sell or hold now?

Despite the latest share price rally, and the company’s attractive passive income, analysts aren’t too optimistic about the outlook for APA shares over the next 12 months.

According to TradingView data, four out of nine analysts have a hold rating on the stock, three have a sell or strong sell rating. Others are more bullish with a buy or strong buy rating.

But, the average target price for APA shares is $8.96, which implies a potential 12% downside at the time of writing.

Even the best-case scenario $10.41 maximum target price implies a minor 3% upside from the current trading price. 

The post Are APA shares a buy after reaching a three-year high? appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.