Author: openjargon

The Vanguard Diversified High Growth Index ETF (ASX: VDHG) could be one of the simplest long-term investing options on the ASX.

It is designed for investors who want a diversified portfolio in a single trade, with exposure to growth assets across Australia and overseas markets.

For those with a long time horizon, this fund could be a strong buy and hold investment.

Here are three reasons why.

Built-in diversification

The first reason to like the VDHG ETF is diversification.

Many investors start by trying to choose individual shares, sectors, or countries. That can work well, but it also requires time, research, and confidence.

The VDHG ETF takes a different approach.

It gives investors exposure to a broad mix of assets through one ASX-listed fund. This includes Australian shares, international shares, and defensive assets such as fixed interest.

That means investors are not relying on one company, one sector, or one market to drive returns.

This can be especially useful for people who want to build wealth steadily without constantly reshaping their portfolio.

The fund can still fall when markets are weak, because it has a strong growth focus. However, its broad spread of investments can help reduce the risk of being too exposed to a single part of the market.

A growth focus for long-term investors

The second reason is its high-growth profile.

The Vanguard Diversified High Growth Index ETF is built for investors with a long investment horizon. Its portfolio is heavily tilted toward growth assets, particularly shares.

That is important because shares have historically been one of the best ways to build wealth over long periods.

Australian shares can provide exposure to banks, miners, healthcare companies, retailers, infrastructure businesses, and industrial groups. International shares add access to global technology leaders, consumer brands, healthcare giants, and other major companies listed overseas.

This gives the VDHG ETF a strong mix of local and global growth potential.

The defensive assets in the portfolio can also play a useful role. They may help smooth returns during difficult periods and provide some balance when share markets are volatile.

This blend makes the fund suitable for investors who want long-term growth but still value a level of diversification across asset classes.

It keeps investing simple

The third reason is simplicity.

One of the biggest challenges that investors face is overcomplication. It is easy to own too many funds, chase too many themes, or constantly adjust a portfolio based on the latest market headlines.

This ASX ETF helps remove some of that noise. The fund gives investors a ready-made diversified portfolio, managed by Vanguard, with asset allocation and rebalancing handled inside the ETF.

This can make it easier to stay invested and add to existing positions.

Overall, for investors who want an easy way to build wealth over many years, the VDHG ETF could be one of the most useful buy and hold investment options on the ASX.

The post 3 reasons why the VDHG ETF could be a top buy and hold investment appeared first on The Motley Fool Australia.

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• Where to invest $5,000 in Vanguard ETFs in June

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

Lynas Rare Earths Ltd (ASX: LYC) shares were under pressure on Tuesday, falling 3% to $18.03 in afternoon trade after the company issued an environmental update regarding a proposed expansion of its operations in Malaysia.

The decline comes despite a remarkable year for shareholders. Lynas shares have surged approximately 95% over the past 12 months, dramatically outperforming the S&P/ASX 200 Index (ASX: XJO), which has gained around 3.7% over the same period.

So, what’s behind today’s pullback?

Critical rare earths player outside China

Lynas is the largest producer of separated rare earth materials outside China, giving it a strategically important position in global supply chains.

The company mines rare earth ore at its Mt Weld operation in Western Australia, then processes and refines it into products used in electric vehicles, wind turbines, defence technologies, electronics, and other advanced manufacturing applications.

As governments and manufacturers increasingly seek non-Chinese sources of critical minerals, Lynas shares have become a key beneficiary of that trend.

That theme has helped drive the company’s strong share price performance over the past year.

Investor enthusiasm accelerated further after China introduced export controls on a range of critical minerals and rare earth products, underscoring the importance of alternative suppliers. At the same time, rising geopolitical tensions have strengthened the investment case for Western rare earth supply chains.

What happened today?

Tuesday’s decline followed an update from Lynas regarding recent media reports covering an environmental impact assessment (EIA) linked to a proposed expansion of its Malaysian operations.

The company sought to clarify the situation after reports raised questions about the assessment process.

According to Lynas:

Lynas’ EIA report has undergone a technical review in accordance with the Malaysian regulatory assessment process. The Malaysian Department of Environment has requested that Lynas submit an updated EIA following that technical review process. Lynas will submit an updated EIA as requested.

In other words, Malaysian regulators have asked the company to provide an updated environmental assessment following a technical review of its original submission.

Importantly, Lynas indicated that the request forms part of the normal regulatory process and confirmed the $18 billion ASX share will provide the updated documentation.

Nevertheless, investors often react cautiously whenever regulatory approvals or environmental reviews become part of the story, particularly for companies undertaking major expansion projects.

What’s next for Lynas shares?

The key issue for investors will be whether the EIA review process creates any meaningful delays to Lynas’ expansion plans in Malaysia.

At this stage, the company has not suggested that the request represents a significant obstacle. Instead, it appears to be continuing through the standard assessment framework.

Longer term, the investment case for Lynas shares remains tied to global demand for rare earth materials and the strategic push to diversify supply chains away from China.

While today’s update has weighed on sentiment, the company’s strong share price performance over the past year suggests investors remain focused on the bigger picture.

The next catalyst for Lynas shares will likely come from progress on its expansion projects, rare earth pricing trends, and continued growth in demand for critical minerals.

The post Lynas shares retreat on Malaysia expansion news appeared first on The Motley Fool Australia.

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• Why is the ASX 200 stuck in the red today?

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 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.

Westpac Banking Corp (ASX: WBC) shares have climbed into the green in Tuesday lunchtime trade.

At the time of writing, the ASX banking giant’s share price is up around 0.5% and changing hands at $35.36 a piece.

The increase is good news for investors after the ASX bank stock hit a 10-month low of $34.50 nearly two weeks ago.

But there is still a long way to go before Westpac shares recover losses shed over the past couple of months. Even after today’s uptick, the shares are still down around 9% for the year to date and are 17% lower than an all-time high recorded in early April.

For context, the S&P/ASX 200 Index (ASX: XJO) is down around 0.1% at the time of writing, but is around 1% higher for the year to date.

What has happened to Westpac shares recently?

Westpac posted a solid first-half result in early May. Westpac’s statutory net profit was 3% higher year on year but 5% lower compared to the second half of FY25. Its total lending and deposit growth also climbed 7% year on year.

There was a brief share price uptick after the result was announced, but then investor sentiment reversed, and the sell-off resumed. 

Confidence about the outlook for Westpac remains low, and broad bank-sector weakness has also helped pull its share price lower. 

The bank’s shares came under even more selling pressure last month after a court ruling weighed on sentiment. The ruling related to ongoing compliance risk at the bank. 

The good news is that the Reserve Bank’s latest interest rate hold decision has alleviated some pressure for Westpac this month. Westpac is the most mortgage-exposed of the big four bank shares, with approximately 69% of its loan book in residential mortgages. 

But, it looks like the reprieve is only temporary. The bank’s own economists do expect the cash rate to begin rising again in late 2026.

The question now is, if you own Westpac shares, what should you do with them?

Should you sell up ahead before the share price falls again? Hold tight and wait it out? Or buy more in the dip?

Here’s what the experts think.

Are Westpac shares a buy, sell, or hold?

It’s clear that, even after the latest declines, the market still considers Westpac shares as overpriced and above fair value.

Market Index data shows that the majority of brokers have a strong sell rating on the banking giant’s shares. The $32.96 average target price implies a potential 7% downside at the time of writing.

TradingView data also shows that the majority (nine out of 16) have a sell or strong sell rating on the shares. The average $33.48 target price implies a potential 6% downside at the time of writing. However, some expect Westpac’s shares to fall up to 17% to $29.41 over the next 12 months.

Christopher Watt from Bell Potter Securities is one broker with a sell rating on this ASX bank share. 

He said that while the business is improving on the metrics that matter, the operating backdrop is weakening. He added that mortgage applications are down, and proposed tax and negative gearing changes have soured sentiment. With the stock trading near the top of its range, Watt sees more downside than upside ahead for Westpac shares.

My view of Westpac shares

I think that continued competition in the mortgage market, the uncertain outlook for cash rate movements, and dwindling analysts’ confidence point to more downside ahead.

I’m not sure I’d sell up just yet, but I certainly wouldn’t be adding more Westpac shares to my portfolio without some visibility of a potential turnaround ahead.

The post Down 17%: What should I do with my Westpac shares now? appeared first on The Motley Fool Australia.

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• Why CSL, Westpac, and this big-name ASX 200 share could be sells
• Invested in ASX 200 bank shares for dividends? This fundie prefers other stocks
• If I invest $8,000 in Westpac shares, how much passive income will I receive in 2027?
• Why has the ASX 200 given up its early rebound today?

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.

Some big name ASX shares have been under significant pressure over the past 12 months.

While this is disappointing for shareholders, it could have created a buying opportunity for others.

Let’s now look at three cheap ASX shares that could be hiding in plain sight:

CSL Ltd (ASX: CSL)

CSL is one of the most interesting cheap ASX blue-chip ideas on the market.

The biotech giant has had a difficult period, with investors losing confidence in its earnings outlook and growth profile.

That has left the share price trading at levels that would have seemed hard to imagine a few years ago.

But I think CSL remains interesting because its business has been built on foundations that competitors cannot quickly copy.

Its plasma operations require collection centres, specialist manufacturing, strict regulatory approvals, and deep relationships with healthcare systems. Those foundations take years to develop and give the company a level of scale that remains difficult to replicate.

If execution improves and confidence returns, the selloff could eventually look like an attractive entry point into a business with genuine global scale.

Treasury Wine Estates Ltd (ASX: TWE)

Another cheap ASX share that could be worth watching is Treasury Wine Estates.

The wine company has been through a rough period as investors have questioned demand, margins, inventory levels, and its growth outlook.

That pressure has weighed heavily on sentiment. However, Treasury Wine still owns a portfolio of wine brands with value in key markets. Its investment case is tied to brand strength, distribution, pricing power, and the ability to capture demand for premium wine over time.

This is a business where confidence can change meaningfully if trading conditions stabilise.

There are risks, especially around consumer demand and execution. But when investors turn against a branded consumer company, the share price can sometimes fall further than the long-term fundamentals justify.

If Treasury Wine can show that its premium portfolio still has earnings power, the current weakness could prove to be a compelling opportunity.

WiseTech Global Ltd (ASX: WTC)

A third cheap ASX share to consider is WiseTech.

The logistics software company has fallen heavily from its highs, leaving it trading at a fraction of the valuation the market was once willing to pay. In fact, its shares hit a multi-year low of $29.48 on Tuesday.

A good portion of this decline comes from concerns over allegations relating to its founder Richard White.

But if you look beyond the leadership uncertainty, WiseTech is a high-quality business with a strong offering.

Its CargoWise platform helps freight forwarders and logistics operators manage the complexity of global trade.

That includes customs, documentation, compliance, shipment management, invoicing, and cross-border workflows.

The business solves a difficult problem in a large global industry. Logistics is complex, fragmented, and full of manual processes, which gives software a meaningful role to play.

If WiseTech can rebuild confidence and move on from its founder concerns, its share price could have significant recovery potential.

The post 3 cheap ASX shares that could be hiding in plain sight appeared first on The Motley Fool Australia.

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• Why A2 Milk, Calix, CSL, and Ioneer shares are charging higher today
• Down 53%, is it time to throw in the towel on CSL shares?
• WiseTech shares rebound 5%, responds to media reports: Is it time for investors to buy back in?
• Should I buy CSL and ResMed shares right now?
• WiseTech shares just crashed. Can investors look past the company’s governance issues?

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

Xero Ltd (ASX: XRO) shares are having another tough session on Tuesday as selling pressure continues to build on the ASX 200 tech stock.

At the time of writing, the Xero share price is down 3.19% to $66.43. By comparison, the S&P/ASX All Technology Index (ASX: XTX) is 1.14% lower to 2,891 points.

Earlier in the session, Xero shares fell as low as $66.30. That puts the stock around levels last seen during the early stages of the COVID market sell-off in March 2020.

It has been a brutal run for shareholders. Xero shares are now down more than 40% since the start of 2026 and around 65% lower than this time last year.

Why Xero shares are being sold off

There hasn’t been any new price-sensitive announcement from Xero today.

Instead, the latest fall looks to be part of the wider sell-off in tech shares, with growth stocks still out of favour.

Xero is still one of the biggest software names on the ASX, but the market is clearly not willing to pay the same price it once did.

That comes as investors focus more closely on earnings, margins, and how much companies are spending to grow.

Xero’s latest result showed another year of strong revenue growth. However, lower statutory profit, acquisition costs, and the Melio deal have given the market more to think about.

The business is still growing

Keep in mind, the sell-off doesn’t mean Xero has stopped growing.

In its FY26 result, Xero reported operating revenue of NZ$2.8 billion, up 31% on the prior year. Excluding Melio, organic revenue growth was 21%.

Its customer base also increased 11% to 4.92 million, with the company adding 506,000 net customers during the year.

Adjusted EBITDA rose 18% to NZ$757.4 million, while free cash flow came in at NZ$554 million.

Xero is also putting more focus on artificial intelligence (AI) and automation. This includes adding AI features to its platform and partnering with Anthropic to bring Claude into Xero.

Can the Xero share price recover from here?

The biggest question now is whether the share price fall has gone too far.

Xero is still growing revenue, adding customers, and producing free cash flow. The company has also guided to adjusted EBITDA of NZ$860 million to NZ$920 million in FY27.

However, the market still has a few reasons to be cautious.

The Melio deal still needs time, and the market may not be ready to pay up for software stocks just yet.

The post Xero shares just crashed to COVID-era lows. Is this ASX 200 tech stock broken? appeared first on The Motley Fool Australia.

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

Life360 Inc (ASX: 360) shares are tumbling today.

Shares in the S&P/ASX 200 Index (ASX: XJO) location sharing software developer closed yesterday trading for $23.19. During the Tuesday lunch hour, shares are changing hands for $22.49 apiece, down 3.0%.

For some context, the ASX 200 is up 0.1% at this same time.

Taking a step back, Life360 shares have slumped 29.7% over the past 12 months.

The company has faced a few headwinds, including the broader selling pressure that hit many Aussie and global Software as a Service (SaaS) stocks. That pressure followed growing investor concerns that artificial intelligence could replace a lot of the services these companies offer.

More recently, the ASX 200 tech stock has been enjoying a strong rebound. Indeed, shares are up 18.6% over the past month, smashing the 1.4% gains delivered by the benchmark index over this same period.

And looking ahead, Bell Potter Securities’ Christopher Watt believes Life360 is well-placed to keep outperforming in the months ahead (courtesy of The Bull).

Here’s why.

Why Life360 shares could keep marching higher

“This information technology company provides a mobile networking safety app for families,” Watt said.

Citing the first reason he’s bullish on the ASX 200 stock he noted, “Active user growth is rebounding following a technical issue, while paying circle growth, which drives revenue, recently exceeded expectations.”

As for the second reason you might want to buy Life360 shares today, Watt added, “Guidance has been upgraded. Once focus returns to paying circles, I expect a re-rating to follow.”

Then there’s the recent share price rebound and the company’s pending half year (H1 2026) results.

According to Watt:

The upcoming August result is a catalyst. The company has been enjoying strong price momentum, with the shares rising from $17.91 on May 20 to trade at $22.54 on June 18.

What’s the latest from the ASX 200 tech stock?

The last release deemed price sensitive to Life360 shares was the company’s Q1 2026 update on 12 May.

Among the highlights, the company reported quarterly revenue of US$143.1 million, up 38% from Q1 2025. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$17.1 million were up 7%.

As for the guidance upgrade Watt mentioned above, Life360 raised its full-year 2026 revenue guidance to between US$650 and US$685 million. That was up from prior revenue guidance of US$640 million to US$680 million.

Management also expects to deliver improved earnings, boosting Life360’s full-year adjusted EBITDA guidance to US$130 to US$140 million, up from the prior guidance of US$128 million to US$138 million.

The post 3 reasons to buy the dip on Life360 shares today 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 Life360. The Motley Fool Australia has positions in and has recommended Life360. 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) is having a mildly positive session on Tuesday. In afternoon trade, the benchmark index is up slightly to 8,822.7 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are climbing:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up 3% to $6.97. Investors have been buying this infant formula company’s shares this week after it received approval from the State Administration for Market Regulation (SAMR) to transition two China label infant milk formula (IMF) product registrations. A2 Milk’s CEO, David Bortolussi, said: “SAMR approval marks a significant milestone in our China growth strategy and Supply Chain transformation. It supports long-term growth in our core IMF business through market access and innovation, accelerates the development of advanced nutritional manufacturing capability, and captures attractive financial returns through incremental brand contribution and vertical margin capture.”

Calix Ltd (ASX: CXL)

The Calix share price is up 9.5% to 40 cents. This morning, this industrial technology company announced a joint development agreement (JDA) with Ambuja Cements Limited (Ambuja Cements). It is a subsidiary of the Adani Group. The two parties will work together on a commercial scale project at the Sanghi cement plant in Gujarat, India. Ambuja Cements’ director, Karan Adani, said: “The cement industry’s transition to a lower-carbon future will require bold thinking, technological innovation and collaboration across the value chain. Our partnership with [Calix subsidiary] Leilac reflects our commitment to evaluating next-generation technologies that can reduce process emissions while improving energy efficiency and supporting long-term sustainable growth. This initiative aligns with our vision of building world-class manufacturing operations for the future.”

CSL Ltd (ASX: CSL)

The CSL share price is up 2.5% to $115.66. This is despite there being no news out of the biotechnology giant on Tuesday. However, it is worth noting that CSL’s shares have been rebounding from their multi-year low this month. So much so, CSL shares have risen by 22% since the start of the month.

Ioneer Ltd (ASX: INR)

The Ioneer share price is up 18% to 16.5 cents. This morning, the lithium developer announced strategic non-binding letters of intent (LOIs) with the Korea Overseas Infrastructure & Urban Development Corporation and Hyundai Engineering Co. These will see the parties work together to advance the development of the Rhyolite Ridge Lithium-Boron Project. Ioneer’s managing director, Bernard Rowe, said: “Rhyolite Ridge has been a decade in the making — through ongoing partnerships, permitting, and financing. Working with trusted Korean partners with a track record of on-time and on-budget delivery brings us closer to breaking ground and delivering urgently needed lithium and boron. We’re delighted to work with KIND and Hyundai Engineering and look forward to what we’ll accomplish together.”

The post Why A2 Milk, Calix, CSL, and Ioneer shares are charging higher 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. 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) is fighting hard to stay in positive territory. At the time of writing, the benchmark index is up a fraction to 8,821 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Centuria Capital Group (ASX: CNI)

The Centuria Capital share price is down over 6% to $2.04. This follows the successful completion of an institutional placement and entitlement offer. Centuria Capital has raised $265 million at $2.00 per new share. This represents a discount of 8.25% to its last close price. Centuria’s joint CEOs, John McBain and Jason Huljich, commented: “The Centuria and ResetData combination has created a differentiated NVIDIA neocloud partner with scalable sovereign AI Factories and access to Centuria’s real estate, land and potential 200MW+ power pipeline. ResetData is one of three Australian NVIDIA Cloud Partners and is uniquely placed to take advantage of an upswing in international demand for the establishment of Australian-based AI Factory capacity uptake. It is worth noting that comparable neocloud platforms in Australia have experienced rapid re-ratings as contracts and scale have emerged and we have this firmly in mind as we respond to increased AI demand and build out our capability in this area.”

Iluka Resources Ltd (ASX: ILU)

The Iluka Resources share price is down 11% to $7.24. This is despite the mineral sands and rare earths company announcing a major offtake agreement this morning. Iluka revealed that it has signed a binding, multi-year agreement for the supply of magnet rare earth oxides to a global automotive company. The agreement sets pricing at the higher of minimum and market-linked prices for each product to balance the dual risks of downside price volatility and security of supply. Iluka advised that its minimum revenue over the contract period is US$155 million. But assuming industry forecast pricing, Iluka’s revenue over the contract period would be US$172 million.

Metcash Ltd (ASX: MTS)

The Metcash share price is down 3% to $3.02. This may have been driven by a broker note out of Ord Minnett this morning. The broker has downgraded the wholesale distributor’s shares to a hold rating (from buy) with a reduced price target of $3.50 (from $3.70). While Metcash’s FY 2026 result was in line with expectations, Ord Minnett was disappointed with its trading update for the first seven weeks of FY 2027.

Reliance Worldwide Corporation Ltd (ASX: RWC)

The Reliance Worldwide share price is down 2.5% to $3.58. Investors have been selling the plumbing parts company’s shares after it revealed that it is closing its brass casting, forging, and machining operations in Melbourne, along with additional smaller sites. This is part of its ongoing optimisation of its global manufacturing operations. Management revealed that it expects to recognise a one-off net charge of US$100 million to US$110 million in FY 2026.

The post Why Centuria Capital, Iluka, Metcash, and Reliance Worldwide shares are falling today appeared first on The Motley Fool Australia.

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

Santos Ltd (ASX: STO) shares are pushing higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $7.30. As we eye the Tuesday lunch hour, shares are swapping hands for $7.33 apiece, up 0.4%.

For some context, the ASX 200 is just about flat at this same time.

Taking a step back, Santos shares have gained 19.4% in 2026, smashing the 1.1% year-to-date gains posted by the benchmark index.

And that’s not including the 14.5 cents per share in unfranked dividends Santos paid out to eligible stockholders on 25 March. If we add that back into the current share price, the stock’s cumulative value has risen 21.6% this year.

Santos trades on a 4.8% partly-franked trailing dividend yield.

One of the bigger tailwinds for the Aussie energy giant has been the surging oil price. Currently trading for US$78 per barrel, the Brent crude oil price is up 28% since 1 January

As you’re likely aware, global oil and gas prices have been spurred by the conflict in the Middle East and resultant closure of the vital Strait of Hormuz shipping lane.

But with global oil prices coming off the boil – the Brent crude oil price is down more than 34% since 29 April – is Santos still a good buy today?

Santos shares: Buy, hold, or sell?

Peak Asset Management’s Niv Dagan recently analysed the outlook for Santos’ outperforming stock (courtesy of The Bull).

“Santos is a global energy company,” he said. “Much of the near-term upside depends on successful execution of major projects.”

Commenting on those projects, Dagan noted, “Barossa is online and ramping up, while the Pikka phase 1 in Alaska has started production, with both expected to materially increase free cash flow at plateau rates.”

Dagan added that the ASX 200 energy stock is also aiming to materially deleverage over the next three to four years.

“Management is also targeting at least 60% of free cash flow for shareholder returns and a $2.5 billion reduction in net debt by 2030,” he said.

Summarising his hold recommendation on Santos shares, Dagan concluded:

However, the investment case still relies on commodity prices, capital discipline and the delivery of a large multi-year development pipeline across Australia, Papua New Guinea and Alaska.

What’s the latest from the ASX 200 oil and gas stock?

Santos shares may be getting a lift today, with the company announcing this morning that it has commenced continuous production operations at the Pikka Phase 1 oil project in Alaska.

Commenting on the milestone, Santos CEO Kevin Gallagher said:

The first production wells are now online and delivering continuous production. We will commence pressure support through seawater injection and bring more wells online progressively, building production toward our plateau target of approximately 80,000 barrels per day in the third quarter of this year.

The post With oil prices falling, should I still buy Santos shares now? appeared first on The Motley Fool Australia.

More reading

• The US-Iran peace deal just wavered. Here is what this means for these ASX shares
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• Brokers name 3 ASX shares to buy right now

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.

S&P/ASX 200 Index (ASX: XJO) shares are barely in the green on Tuesday as investors wait for more news about US-Iran negotiations.

Trading Economics analysts say there are signs of progress from talks between American and Iranian officials in Switzerland.

The analysts said:

In a key development, Washington granted Iran a 60-day license to sell oil on international markets, raising expectations of a quicker recovery in global supply.

Traffic through the Strait of Hormuz has also picked up, with producers including Kuwait and the United Arab Emirates finding alternative routes to export energy, while Iran shipped more than 30 million barrels over the past week. 

Meanwhile, two experts give us their views on three ASX shares.

Let’s check them out. 

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is $11.85, down 0.75% today and down 21% in the calendar year to date (YTD). 

Belinda Moore from Morgans has a buy rating on this ASX 200 consumer discretionary share. 

Moore was not surprised after the company downgraded its guidance because of the Iran war.

Due to strong cash reserves and a depressed share price, Flight Centre also announced a new buyback of up to $200 million.

Moore said: 

Given recent downgrades from other travel industry peers due to the conflict in the Middle East, FLT’s downgrade wasn’t a surprise.

While a peace agreement and eased travel restrictions are positive, we think 1H27 will still be challenging.

We forecast a strong recovery in 2H27. If it wasn’t for this conflict, FLT would have had a great year given its results for the first nine months were strong.

We are buyers of FLT because when operating conditions ultimately improve, both its earnings and share price will be materially higher.

Lottery Corporation Ltd (ASX: TLC)

The Lottery Corporation share price is $5.55, down 0.2% today and up 7% YTD. 

Toby Grimm from Baker Young has a hold rating on Lottery Corporation shares.

On The Bull this week, Grimm explained:

Securing a 40-year extension as Victoria’s exclusive lottery operator adds certainty given the importance of the contract and its longer than expected duration.

However, operating performance has been subdued amid challenging consumer conditions and unfavourable jackpot outcomes.

The company continues to identify cost savings, which will help fund digital investment.

The stock is trading at fair value, but we believe the stock appeals in the longer term, supported by a fully franked dividend yield.

Supply Network Ltd (ASX: SNL)

The Supply Network share price is $32.74, down 0.6% today and up 2% YTD. 

Grimm has a sell rating on this ASX 300 consumer discretionary share. 

He said: 

The truck and bus parts supplier has built a leading position in an industry benefiting from an ageing fleet on our roads. Group sales revenue of $200.1 million in the first half of 2026 was up 16.9 per cent on the prior corresponding period.

However, in our view, the stock screens as expensive given it was recently trading on about 33 times estimated earnings in 2026.

Current fuel price uncertainties present another challenge and may impact freight demand in the near term.

The post Buy, hold, sell: Flight Centre, Supply Network, Lottery Corporation shares 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 Supply Network Ltd and The Lottery Corporation. The Motley Fool Australia has recommended Flight Centre Travel Group, Supply Network Ltd, and The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.