Author: openjargon

ASX tech stock TechnologyOne Ltd (ASX:TNE) slipped 3% on Tuesday afternoon to $27.80.

That extends the ASX tech stock’s losses to roughly 17% over the past 12 months.

The pullback comes despite another solid result from the enterprise software provider. TechnologyOne delivered its 17th consecutive record first-half profit on Tuesday.

So why are investors selling? Here are three reasons the market may be losing enthusiasm for the ASX software giant.

Extremely demanding valuation

The first issue is valuation of the ASX tech stock.

Even after the recent sell-off, TechnologyOne shares have still been trading on a price-to-earnings ratio above 65 times earnings. That is an extremely demanding valuation.

At those levels, investors are effectively pricing in years of strong growth and near-perfect execution. The problem is that when expectations become too high, even solid results may not be enough.

That appears to have happened with the latest half-year update. The ASX tech stock delivered a 9% increase in profit before tax to $89.1 million. Annual recurring revenue (ARR) also jumped 17% to $598 million.

While the numbers were strong and broadly matched consensus estimates, some investors were clearly hoping for an even bigger upside surprise. When a stock trades on lofty multiples, “good” can quickly become disappointing.

Higher rates hit valuations

The second concern for the ASX tech stock is interest rates. TechnologyOne operates in the technology sector, where valuations are often highly sensitive to changes in bond yields and interest rate expectations.

Higher interest rates generally reduce the present value of future earnings. That can place pressure on growth stock valuations, particularly companies trading on premium multiples.

And while inflation has eased from peak levels, uncertainty around global interest rates remains. If rates stay elevated for longer than expected, expensive technology stocks could continue facing valuation pressure.

AI disruption concerns

The third risk hanging over the ASX tech stock is artificial intelligence. AI is reshaping the broader software industry at a rapid pace.

To be clear, TechnologyOne is not suddenly becoming irrelevant. The company still has a strong customer base, sticky software products, and recurring revenue streams.

But investors are increasingly questioning how AI could alter competitive dynamics over the long term. New technologies can lower barriers to entry, change customer expectations, and disrupt traditional software development models.

Right now, nobody fully knows which software businesses will benefit most from AI and which could struggle to adapt. That uncertainty alone may be enough to keep some investors cautious.

What do the experts think?

Broker Morgans appears concerned about valuation risk. This week, the broker maintained a sell rating on TechnologyOne shares, arguing the stock still looks expensive at current levels.

That said, not everyone is bearish. Analysts at Bell Potter have retained their buy rating on this ASX tech stock with an improved price target of $32.25. This points to a potential 16% upside.

But with valuation concerns, interest rate risks, and AI uncertainty all weighing on sentiment, investors may be questioning whether the premium price tag is still justified.

The post 3 reasons to sell this ASX tech stock appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why are Technology One shares crashing 4% today?
• Why DroneShield, Lynas, PLS, and TechnologyOne shares are falling today
• Why Technology One, Megaport and Mineral Resources shares are turning heads on Tuesday
• Technology One posts 17th consecutive record first-half profit, AI drives FY26 guidance

Motley Fool contributor Marc Van Dinther 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 Technology One. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Australia’s energy system is in the middle of a once-in-a-generation transformation.

Coal-fired power stations are closing, renewable capacity is expanding rapidly, and the federal government has committed to net zero emissions by 2050 with an interim target of a 43% reduction by 2030.

For investors, the question is which companies can capture the most value from this transition.

Three ASX-listed names stand out.

AGL Energy Ltd (ASX: AGL)

AGL Energy is Australia’s largest electricity generator and one of the most active investors in the energy transition, despite its roots in coal-fired power.

The company is deploying $2 billion in growth projects, including the commissioning of the first 250-megawatt tranche of the Liddell Battery in New South Wales.

The full 500-megawatt system expected to reach completion by June 2026.

In addition, AGL reinvested approximately $750 million in proceeds from the sale of its Tilt Renewables stake directly into batteries and flexible generation assets.

At the Macquarie Conference, management narrowed its FY2026 underlying EBITDA guidance to $2.06 billion to $2.18 billion, reflecting strong operational performance and improved plant availability.

Ord Minnett carries a buy rating on AGL with a price target of $13.

The broker believes the market continues to underappreciate the pace and scale of AGL’s transition strategy.

Origin Energy Ltd (ASX: ORG)

Origin Energy approaches the net zero transition from a different angle, combining a large electricity retail franchise with one of Australia’s most ambitious battery storage programs.

The company delivered Eraring Battery Stage 1 on time and within budget, and its full 700 megawatt, 3,160 megawatt-hour Eraring Battery is targeted for completion by early 2027.

This will rank among the largest battery storage assets in the country.

Meanwhile, Origin is expanding its renewables contracting business and progressing its Supernode and Mortlake battery projects.

The company has also upgraded its Energy Markets underlying EBITDA guidance to $1,550 million to $1,750 million for FY2026, reflecting stronger than expected performance in electricity margins.

Furthermore, Origin’s partnership with Octopus Energy and its Kraken technology platform positions the business as a technology-enabled energy retailer, a potential source of future competitive advantage.

Mercury NZ Ltd (ASX: MCY)

Mercury NZ offers Australian investors a distinctive and pure-play exposure to the net zero theme through its 100% renewable electricity generation portfolio in New Zealand.

This portfolio spans hydro, geothermal, and wind assets.

The company posted a 28% lift in EBITDAF to NZ$537 million for the first half of FY2026, alongside a 130% jump in net profit after tax, as improved hydro inflows and disciplined cost management drove a strong result.

Mercury is actively reinvesting in new generation capacity, with its NZ$220 million Ngā Tamariki Geothermal Station expansion unit now operational, and both its Kaiwera Downs Stage 2 and Kaiwaikawe wind farms on track to begin generating during 2026 and 2027.

Management targets NZ$1 billion in EBITDA for FY2026 and has guided a 4% increase in the full-year dividend to 25 cents per share, extending what is now a 17-year consecutive run of dividend growth.

At a time when investors increasingly seek businesses that align with long-term tailwinds, Mercury’s 100% renewable generation model is a strong differentiator.

Foolish takeaway

Australia’s net zero transition will reshape the energy sector for decades.

AGL brings scale.

Origin combines a large customer base with a growing battery portfolio and technology portfolio.

And Mercury offers pure-play renewable exposure with a 17-year dividend growth track record.

Together they represent three very different but equally compelling ways to participate in one of the most important themes of the next decade.

The post 3 ASX shares that could win big from Australia’s push to net zero appeared first on The Motley Fool Australia.

More reading

• Passive income investors: These 3 ASX dividend shares yield 5% (or more)
• AGL shares lifting off on improved $2.1 billion full year earnings expectations
• AGL Energy narrows FY26 guidance as project pipeline grows
• Here are the top 10 ASX 200 shares today
• 6 ASX 200 shares with strengthened buy ratings this week

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.

The ASX dividend share L1 Long Short Fund Ltd (ASX: LSF) may be one of the leading picks for retiree passive income on the ASX.

Retirees may be searching for investments that can offer multiple positives such as a good dividend yield, dividend growth, capital growth and even diversification.

There are some investments that can provide instant diversification such as exchange-traded funds (ETFs). I reckon listed investment companies (LICs), with investment picks chosen by fund managers, are a very underrated option and I believe L1 Long Short Fund can tick all of those boxes.

Diversification

L1 Long Short Fund invests in a mixture of Australian shares and international shares, through a mixture of both long-term investing and short-selling. Short investing is when an investor thinks a share price is going to go down.

Therefore, the LIC is able to make returns whether the market is going up or down. It certainly doesn’t follow an index like the S&P/ASX 200 Index (ASX: XJO), that’s for sure, though it does aim to outperform the ASX 200.

Its typical investment strategy is to aim for businesses with low price/earnings (P/E) ratios, but are expected to deliver solid earnings per share (EPS) growth (with modest debt levels).

Since the start of its long-short strategy, the three sectors that have contributed the most to returns have been ASX mining shares, industrials and communication shares. It has not relied on tech for returns at all.

Dividend yield

With the investment returns generated by the LIC, it can provide a pleasing dividend yield for retirees (and shareholders of other ages).

I expect the next four quarterly dividends will come to 15.4 cents, which translates into a potential grossed-up dividend yield of 5%, including franking credits, at the time of writing.

I believe investors can look forward to the dividend yield growing further (if the L1 Long Short Fund share price weren’t to change).

Dividend growth

The leadership of the ASX dividend share has stated that it intends to continue increasing the dividend for shareholders, and the payout has increased each financial year since 2021, when it first started paying a dividend.

At a time when inflation is elevated, I think it’s a good idea to look for investments that are increasing their passive income payments.

The two FY26 first half’s quarterly dividends were 13.6% higher than the FY25 first-half interim dividend, which is a solid growth rate.

I think the business can continue to hike its quarterly dividend at a year-over-year growth rate of more than 10% in 2026.

Capital growth

Over the last five years, the ASX dividend share’s portfolio has delivered a net return of 16.3% per year, close to doubling its benchmark. Past performance is not a guarantee of future returns, of course.

But, with a return of that size, L1 Long Short Fund has been able to deliver a sizeable dividend and dividend growth, with capital growth from the retained investment profits.

For retirees, I think the LIC is a very attractive.

The post Why this ASX dividend share is a retiree’s dream appeared first on The Motley Fool Australia.

More reading

• Create a river of dividends for passive income alongside work earnings with ASX stocks
• How to invest $5,000 for passive income in superannuation?
• How much is needed in superannuation to target $10,000 of monthly passive income?
• How to boost your income with $50,000 of annual dividends
• How much is needed in superannuation to target a $2,500 monthly passive income?

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.

Blue-chip shares can be a good place to look when building long-term wealth.

The best of them are not just large companies. They have strong market positions, proven management teams, and the ability to keep reinvesting for growth through different market conditions.

With that in mind, here are three ASX 200 blue-chip shares that could be worth buying now.

Goodman Group (ASX: GMG)

Goodman Group has become one of the most important infrastructure businesses on the ASX.

Its warehouses and logistics properties help companies move goods through increasingly complex supply chains. But the company’s opportunity has widened in recent years as digital infrastructure becomes a larger part of its growth story.

Large-scale data centres need land, power access, planning expertise, and customers with deep balance sheets. Goodman has many of the ingredients required to serve that demand.

This gives the company a rare combination. Its core logistics business is still supported by ecommerce and supply chain investment, while its data centre pipeline gives it exposure to cloud computing and artificial intelligence.

ResMed Inc (ASX: RMD)

ResMed is another ASX 200 blue-chip share with a strong long-term case.

The company sits in a part of healthcare where demand is still building. Sleep apnoea remains underdiagnosed globally, and better awareness of sleep health continues to bring more patients into treatment.

ResMed’s strength is that it is not just selling devices. Its masks, machines, software, and connected-care tools create a broader ecosystem that supports patients, clinicians, and healthcare providers.

That is important because healthcare systems are increasingly trying to deliver more care outside hospitals. ResMed’s products fit neatly into that shift, helping people manage chronic conditions at home.

Its latest results also showed the business remains in good shape, with revenue growth, margin expansion, and strong cash generation. That gives investors more confidence that the company can keep investing while still delivering earnings growth.

Wesfarmers Ltd (ASX: WES)

Wesfarmers has earned its blue-chip status through decades of disciplined execution.

The group owns some of Australia’s strongest retail businesses, with Bunnings at the centre. Bunnings is a retail machine with scale, customer trust, strong supplier relationships, and deep relevance to both households and trade customers.

Kmart and Officeworks add further earnings streams, while the group’s chemicals and industrial operations provide exposure outside retail.

What makes Wesfarmers attractive is its capital discipline. The company has a long history of buying, building, selling, and reinvesting with shareholders in mind.

That flexibility is valuable. Wesfarmers does not need every division to fire at the same time. It has multiple levers and a management culture focused on returns.

The post 3 of the best ASX 200 blue-chip shares to buy now appeared first on The Motley Fool Australia.

More reading

• How to build a $150,000 ASX share portfolio from scratch
• 4 ASX 200 shares tipped to jump another 50% to 60%
• Why Wesfarmers could be one of the best blue-chip shares to buy
• Why this fallen ASX 200 blue chip could be a strong buy
• 5 ASX shares that could bounce back in the second half of 2026

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

S&P/ASX 200 Index (ASX: XJO) shares closed 1.2% higher yesterday on renewed hopes of a deal between the US and Iran.

US President Donald Trump posted on Truth Social that he had called off a military strike on Iran that had been scheduled for today.

Trump said he did so after Persian Gulf leaders implored him to wait for details of a deal that they think will be acceptable to the US.

However, Trump also instructed the US military to remain prepared for “a full, large scale assault of Iran” if a deal was not reached.

Meanwhile, the critical Strait of Hormuz, through which 20% of the world’s oil and gas supply is shipped, remains effectively closed.

The war has contributed to the ASX 200 falling into the red for 2026.

ASX 200 shares are down 1.4% in the calendar year to date (YTD).

Despite this, experts say some stocks have strong potential upside ahead. Here is a selection of them.

Nick Scali Ltd (ASX: NCK)

The Nick Scali share price closed at $14.03, up 2%, yesterday.

This ASX consumer discretionary share is down 41% YTD.

Macquarie has renewed its buy rating on Nick Scali shares with a $21.60 target.

This indicates a potential 54% upside ahead.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price finished at $9.98, down 1.9%, on Tuesday.

This ASX 200 travel share is down 33% YTD.

Morgan Stanley has reaffirmed its buy rating on Flight Centre shares with a $16 target.

This suggests a potential 60% capital gain ahead. 

Global Lithium Resources Ltd (ASX: GL1)

The Global Lithium share price closed at 52 cents on Tuesday, up 7.3%.

This ASX lithium share has ripped 186% over 12 months on the back of recovering lithium prices.

As an example, the lithium carbonate price has skyrocketed 57% YTD and 195% over 12 months.

Macquarie has renewed its buy rating with a 12-month target of 80 cents.

This implies 55% capital growth ahead. 

Brambles Ltd (ASX: BXB)

The Brambles share price finished Tuesday’s session is $17.53, down 0.6%.

This ASX industrial share is down 23% YTD.

Citi renewed its buy rating on Brambles shares with a $27.55 price target on Monday.

This suggests a potential 57% upside ahead.

Alkane Resources Ltd (ASX: ALK)

The Alkane Resources share price rose 4.1% to $1.53 yesterday.

MA Financial Group has reiterated its buy call on this ASX 200 gold share.

The broker lifted its price target from $2.25 to $2.30.

This implies a potential 50% capital gain ahead. 

The post 5 ASX shares with 50% to 60% upside ahead: Experts appeared first on The Motley Fool Australia.

More reading

• After this week’s sell-down, is it time to buy Brambles shares?
• Here are the top 10 ASX 200 shares today
• Brambles shares crash 20% in worst fall in more than two decades
• Should investors buy low on these ASX shares hitting 52-week lows?
• Here’s what Flight Centre’s latest trading update tells investors about FY2026

Citigroup is an advertising partner of Motley Fool Money. 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Flight Centre Travel Group, Ma Financial 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.

Have you ever questioned if you have enough money in your superannuation? And how your balance compares to everyone around you?

Here’s a runthrough of the average superannuation balance of Australians aged 51. 

Find out how yours measures up.

What is the average superannuation balance for Australian men at age 51?

There aren’t exact figures, but brackets determined by the Association of Superannuation Funds of Australia (ASFA) provides a good guide.

The data shows that, the average Australian male aged 50-54 has around $254,074 in their superannuation.

What about the average balance for women the same age?

The same data shows that, because Australian women typically take time out of the workforce to raise children, or work fewer hours, and have lower overall incomes, they have a lot less.

The average Australian female aged 50-54 has around $190,175 in their super.

My superannuation is already falling behind. What can I do?

If your balance falls short of the national average, there is still time to catch up.

At age 51, you still have 14 years until you can access your superannuation (regardless of whether you’re retired or not) and 16 years until you can get the Age Pension.

In the meantime, there are five easy steps you can take to turbocharge your superannuation before retirement.

1. Make sure your money is invested in a well performing fund

It’s important to make sure your super fund is performing well. Even slightly underperforming a benchmark such as the S&P/ASX 200 Index (ASX: XJO) over a long period of time can greatly impact the end balance.

2. Check your insurance

Review your life, total and permanent disability, and income protection insurance. The premium comes directly out of your balance so if you’re paying for a coverage you don’t need, it’ll unnecessarily eat into your superannuation balance.

3. Review your investment strategy

With over a decade until retirement, a balanced risk profile might not give you enough growth. Research your options and consider switching to a growth option for higher long-term compounding returns, if your risk appetite can take it.

4. Make extra contributions where you can

The easiest way to boost your super balance before retirement is to add as much money to it as you can. Individuals can make concessional (before-tax) super contributions, such as salary sacrificing, taxed at a reduced rate of 15% and up to an annual cap. You can also make after-tax payments within your annual limits. 

5. Check out government initiatives

Research into any applicable government initiatives that could help boost your balance. For example, there is a downsizer contributions rule, a bring-forward rule, a government co-contribution rule, and many others. 

The post Here’s the average superannuation balance at age 51 in Australia. How does yours compare? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• ASX 200 charges higher as buyers return after Monday’s sell-off
• ASX 200 rebounds as Trump calls off Iran strikes amid potential deal
• How did Australian super funds fare in April after steep falls in March?

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 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.

Wondering where to invest $3,000 in ASX dividend shares?

Let’s take a look at three shares that are forecast to offer attractive dividend yields in the near term and could be worth considering. They are as follows:

Jumbo Interactive Ltd (ASX: JIN)

Jumbo Interactive is the first ASX dividend share to consider.

The company operates digital lottery platforms, including its Oz Lotteries business, and also provides software and services to lottery operators.

This gives Jumbo a capital-light model. It does not need the heavy infrastructure of many traditional businesses, which can allow a greater share of earnings to be returned to shareholders when trading conditions are supportive.

Its earnings can move around with jackpot activity, as larger prizes tend to drive stronger customer engagement. But the longer-term shift from physical lottery purchases to digital channels remains a useful tailwind.

It is forecast to pay a fully franked 34.5 cents per share dividend in FY 2026. Based on its current share price of $7.19, this would mean a dividend yield of 4.8%.

Premier Investments Ltd (ASX: PMV)

Another ASX dividend share worth watching is Premier Investments.

It has changed shape in recent times, but it remains an interesting income idea. The company is now centred on Peter Alexander and Smiggle, two retail brands with strong recognition and clear growth strategies.

Peter Alexander has built a powerful position in sleepwear, while Smiggle gives Premier exposure to colourful stationery and school-related products across multiple markets.

Retail conditions can be uneven, but Premier has a long history of rewarding shareholders.

For example, the market is expecting a fully franked 78 cents per share dividend in FY 2026. Based on its current share price of $11.56, this would mean a dividend yield of 6.7%.

Treasury Wine Estates Ltd (ASX: TWE)

A third ASX dividend share to look at is Treasury Wine Estates.

This is the higher-risk idea on the list. Treasury Wine owns a portfolio of wine brands, including Penfolds, and has historically returned cash to shareholders through dividends.

However, the company is going through a difficult period. It suspended its interim dividend after reporting a heavy half-year loss, driven by a large impairment on its US business and weaker conditions in key markets.

That means Treasury Wine is not a straightforward income share today.

The reason it may still be worth watching is recovery potential. If its transformation program improves profitability, debt reduces, and cash flow stabilises, dividends could eventually return.

The market seems to think this will be the case. It is forecasting dividends of 15 cents per share in FY 2027 and then 24 cents per share in FY 2028. Based on its current share price of $4.34, this would mean dividend yields of 3.5% and 5.5%, respectively.

The post 3 top ASX dividend shares to buy with $3,000 appeared first on The Motley Fool Australia.

More reading

• 3 high-quality ASX shares to buy this week
• Why investors may regret ignoring this ASX wine stock today
• These are the 10 most shorted ASX shares
• Here is what Premier Investments shares are paying shareholders in 2026
• Buy, hold, sell: GrainCorp, Treasury Wine, and Xero shares

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Jumbo Interactive and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Jumbo Interactive and Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It may be time to hit the sell button on Endeavour Group Ltd (ASX: EDV) and A2 Milk Co Ltd (ASX: A2M) shares.

That’s according to Dolphin Partners Financial Services’ Arthur Garipoli (courtesy of The Bull).

Both S&P/ASX 200 Index (ASX: XJO) stocks have come under renewed selling pressure in 2026.

Recently trading at $5.89 a share, A2 Milk shares are 35.9% year to date.

And shares in Endeavour, which owns and operates liquor outlets, hotels and gaming venues, are down some 16.3% this calendar year.

For some context, the ASX 200 is down 1.5% over this same period.

And looking ahead, Garipoli foresees more headwinds for both beaten down stocks.

Here’s why.

Time to sell A2 Milk shares?

“This infant milk formula company recently initiated a voluntary recall of three small batches of product sold in the United States,” Garipoli said. “The company announced the recall was isolated to the US label product.”

Commenting on the company’s 13 April trading update, Garipoli noted:

The shares have remained under pressure since April when the company downgraded guidance in full year 2026. It expects lower infant milk formula sales, mostly related to Chinese labels.

The EBITDA [earnings before interest, taxes, depreciation and amortisation] percentage margin is forecast to decline from previous guidance of between 15.5% to 16% to between 14% to 14.5%.

Investors responded to that news by sending A2 Milk share tumbling 12.0% on the day.

Summarising his sell recommendation on the ASX 200 dairy stock, Garipoli concluded, “Other stocks offer more appealing outlooks. The shares have fallen from $9.24 on April 10 to trade at $6.45 on May 13.”

Which brings us to…

Time to exit Endeavour shares?

Atop recommending exiting A2 Milk shares, Garipoli also has a bearish outlook on Endeavour shares.

“Endeavour operates liquor outlets, hotels and gaming facilities,” he said.

But despite its leading position in Australia, Garipoli expects Endeavour could struggle over the coming months.

He noted:

While Endeavour is a leader in the liquor retailing space, the business is operating in a challenging economic environment involving fierce competition, continuing margin pressure and macroeconomic shocks. Many analysts have cut forecasts to reflect softer trends.

Then there’s the impact of the ongoing Iran conflict.

According to Garipoli:

Increasing fuel costs in response to the Middle East conflict is imposing pricing pressure throughout its supply chain. Increasing cost of living pressures is another challenge. The shares have fallen from $4.04 on March 2 to trade at $3.23 on May 13.

Summarising his sell recommendation on Endeavour shares, he concluded, “Other stocks appeal more in this economic climate of higher interest rates and cash strapped consumers.”

The post Sell alert! Why this expert is calling time on Endeavour and A2 Milk shares appeared first on The Motley Fool Australia.

More reading

• 4 ASX 200 shares tipped to jump another 50% to 60%
• Buy, hold, sell: Endeavour and these popular ASX shares
• Are these 4 ASX All Ords stocks a buy after rebounding from 52-week lows?
• Why experts are selling these 3 ASX shares this week
• Why A2 Milk, Brambles, Elders, and Tuas shares are sinking today

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

It has been a rough year for some once-loved ASX shares.

Several quality companies have been hammered by weaker sentiment, valuation concerns, and broader market uncertainty. In some cases, share prices are down between 17% and 43% in 2026 alone.

But for long-term investors, that could be creating opportunity.

Here are three beaten-down ASX shares that still look like high-quality businesses worth watching closely this week.

Hub24 (ASX: HUB)

Hub24 shares have struggled this year despite the company continuing to deliver strong operational growth.

The ASX financial technology company recently reported quarterly net inflows of $4 billion, while total funds under administration climbed 22% year-on-year to $151.7 billion.

That highlights the strength of its platform business.

More advisers continue adopting Hub24’s ecosystem, and industry trends toward platform consolidation could become a powerful long-term tailwind. The ASX share also benefits from recurring revenue and the potential for expanding margins as scale increases.

Importantly, Hub24 operates in a structurally growing industry.

The biggest risk is valuation and sentiment. Growth and technology shares remain highly sensitive to interest rates and broader market volatility. There is also ongoing uncertainty about how artificial intelligence could reshape parts of the wealth management industry over time.

Even so, after falling roughly 17% this year, the ASX growth stock may now offer a more attractive entry point for patient investors.

Life360 Inc. (ASX: 360)

This $4 billion ASX share has also endured a volatile year.

The family safety app provider remains one of the ASX’s more unique technology businesses, combining subscription revenue, location services, and growing advertising opportunities into a rapidly expanding ecosystem.

The company continues to grow users strongly in the US and has been improving monetisation across its platform. Investors also appear increasingly excited about Life360’s ability to cross-sell new products and services to its large customer base.

Importantly, the company is already profitable on an adjusted EBITDA basis and continues generating strong revenue growth.

However, risks remain. Competition in consumer technology is intense, while concerns around data privacy and changing consumer behaviour could create challenges over time. The ASX share is also highly sentiment-driven and can experience sharp swings during broader technology sell-offs.

After a difficult year for the share – price has dropped 43% year to date – investors may be starting to ask whether the market has become too pessimistic on the company’s long-term growth potential.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine Estates has arguably had the toughest year of the trio.

The ASX wine share has battled weaker consumer demand, softer earnings, and operational pressures across key markets including China and the US.

The company also withdrew FY26 guidance earlier this year and paused its share buyback, which badly hurt investor sentiment.

But there are early signs conditions may be stabilising. Recent quarterly numbers showed improving depletion growth in China, Australia, and the US. Penfolds remains a globally recognised premium wine brand, while operational restructuring efforts could eventually support stronger margins and earnings recovery.

The risks are clear. Consumer spending remains under pressure, the wine industry still faces challenges globally, and dividend expectations have weakened significantly in the short term.

Still, after tumbling heavily over the past year, the ASX wine share looks like a recovery play rather than a broken business. And sometimes, that is where the most interesting long-term opportunities emerge.

The post 3 high-quality ASX shares to buy this week appeared first on The Motley Fool Australia.

More reading

• 3 top ASX dividend shares to buy with $3,000
• Why these 2 ASX superannuation stocks could quietly build serious wealth
• Why this struggling ASX tech stock could surprise investors
• 3 ASX shares that could be much bigger in 10 years
• 5 ASX shares that could bounce back in the second half of 2026

Motley Fool contributor Marc Van Dinther 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 Hub24, Life360, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Life360 and Treasury Wine Estates. 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.

Oil markets have been in the spotlight as geopolitical risks have spiked.

The WTI crude oil price hit US$105.42 a barrel last Friday, up more than 4% in a single session, as escalating Middle East tensions raised fears of supply disruptions.

For ASX energy investors, the question is straightforward: which ASX stocks stand to gain the most?

Santos Ltd (ASX: STO)

Santos is Australia’s second largest oil and gas producer and one of the most direct ways to play rising oil prices on the ASX.

The company operates assets across Australia, Papua New Guinea, Timor-Leste, and Alaska.

Every dollar rise in the oil price flows almost immediately into higher realised revenue for the company.

In Q1 2026, Santos reported a 3% rise in sales revenue to US$1.27 billion, with a 6% jump in average pricing more than offsetting slightly softer volumes.

Santos shares are up more than 30% since the start of the year, reflecting the energy price tailwind.

However, the stock still trades at a discount to many of its global peers.

Woodside Energy Group Ltd (ASX: WDS)

Woodside Energy Group is one of Australia’s largest listed energy companies.

The company has a market capitalisation of approximately $60 billion and major operations spanning Western Australia, the Gulf of Mexico, and other international regions.

Because Woodside sells its production into global energy markets, stronger crude prices translate directly into higher realised prices, stronger operating cash flow, and improved shareholder returns.

In Q1 2026, Woodside posted a 7% quarter-on-quarter increase in operating revenue to US$3.26 billion, driven by an 11% increase in its average realised price to US$63 per barrel of oil equivalent.

The company’s Scarborough Energy Project is 94% complete, with first LNG still targeted for Q4 2026, which should add materially to earnings once the project becomes operational.

Beach Energy Ltd (ASX: BPT)

Beach Energy offers a more leveraged and higher-risk play on rising oil and gas prices.

The potential upside is therefore also higher.

The company posted a 7% lift in production to 4.8 million barrels of oil equivalent in Q3 FY2026, with quarterly sales revenue of $419 million supported by a 19% lift in realised oil prices.

The ramp-up of the Waitsia Gas Plant in Western Australia has been the standout operational development, with production rates returning to above 200 terajoules per day after earlier weather and compressor setbacks.

Moreover, Beach Energy has strengthened its balance sheet, with available liquidity rising to $974 million and net gearing falling to just 11%.

Bell Potter highlights some risks for Beach Energy but maintains a hold rating with a $1.15 price target.

The broker noted that production growth should return in FY27 as capex eases, enabling positive free cash flow and ongoing dividends.

Foolish takeaway

Oil prices remain highly sensitive to geopolitical events and can reverse quickly.

However, with Middle East tensions showing little sign of easing and supply concerns persisting, Santos, Woodside, and Beach Energy each offer a different risk and return profile for investors wanting exposure to elevated energy prices.

The post 3 ASX stocks that could benefit from oil prices hitting US$105 a barrel appeared first on The Motley Fool Australia.

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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.