Author: openjargon

The S&P/ASX 200 Index (ASX: XJO) is up 0.7% in afternoon trade on Thursday, with three large-cap ASX 200 stocks trading in new 52-week-plus highs.

Here’s what’s happening.

AMP Ltd (ASX: AMP)

AMP shares are up 0.7% at the time of writing, changing hands for $2.15 apiece.

That marks a multi-year high for the diversified financial services company, with the ASX 200 stock now trading at its highest levels since July 2019.

There’s no fresh news out from AMP today. But the share price has enjoyed a strong run over the last week since the company lifted its first-half (H1 FY 2026) profit expectations last week.

On 16 July, management revealed they expect H1 underlying net profit after tax (NPAT) to come in the range of $170 million to $180 million. That’s a big increase from H1 FY 2025 NPAT of $131 million.

Management attributed the profit increase to a stronger contribution from AMP’s China partnerships, favourable investment income spurred by rising interest rates, and the recognition of $13 million related to the partial sale of AMP’s remaining assets within a legacy fund.

AMP shares closed up 9.8% on the day of the announcement.

Ampol Ltd (ASX: ALD)

Also notching new one-year-plus highs today is Aussie fuel supplier Ampol.

Ampol shares are up 0.6% at the time of writing, trading for $39.17 each.

You’d have to go back to April 2024 to find the ASX 200 stock trading at higher levels.

Ampol shares are now up 49% since this time last year, boosted by increased profits and production.

Today’s lift looks to be fuelled by the increasing oil price.

With attacks still ongoing in and around Iran, coupled with new Yemeni Houthi attacks on oil tankers in the Red Sea, the Brent crude oil price is up 3.4% overnight to US$94.07 per barrel, according to data from Bloomberg.

The oil price is now up more than 31% since the beginning of July.

Which brings us to…

Vicinity Centres (ASX: VCX)

Joining the list of ASX 200 stocks notching new 52-week highs is shopping centre owner and manager Vicinity Centres.

Vicinity Centres shares are up 0.4% at the time of writing, swapping hands for $2.65 each.

That’s the highest level since November 2019.

There’s also no fresh price-sensitive news out from Vicinity Centres. But after jumping from a one-year closing low of $2.26 a share on 12 March, investors have been reassessing the valuation of this ASX REIT.

The post 3 ASX 200 stocks smashing new 52-week-plus highs today appeared first on The Motley Fool Australia.

More reading

• 8 ASX 200 shares downgraded by experts this week
• 2 ASX shares highly recommended to buy: Experts
• AMP shares have surged 80% since March. What’s next?
• Ampol shares rallied 40% to hit fresh 2-year high. Buy, sell or hold?
• Here are the top 10 ASX 200 shares 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.

Core Lithium Ltd (ASX: CXO) shares are racing higher in Thursday lunchtime trade.

At the time of writing, the ASX lithium stock is up around 9% to 26 cents a piece.

Today’s increase means the shares are now up 114% higher than 12 months ago.

But, thanks to a share price crash in March this year, the shares are still trying to claw back losses shed in 2026. For the year to date, the shares are down around 9%, at the time of writing.

Why is the ASX lithium stock climbing higher again today?

There isn’t any price-sensitive news out of the company this week to explain the latest share price rally.

It looks like the shares are rising on the back of an upswing in investor interest in the ASX lithium explorer and developer. Core Lithium shares were also sold off heavily over recent weeks, so a bounce-back is likely, with investors buying back in for cheap.

The lithium sector has been in the spotlight over the past week after news that a wave of mine restarts in China will tip the market back into oversupply next year. Trading Economics data shows that Lithium carbonate prices have fallen below CNY145,000 this month, their lowest in five months.

But it looks like Core Lithium shares are unfazed by the latest update. In fact, the share price is quickly travelling in the other direction.

Fact is, prices are still hugely higher than the CNY90,000 levels seen in January this year, and demand is still booming. EV sales continue to increase globally, and grid-scale battery storage is growing rapidly. Both markets are heavily reliant on lithium supply.

The successful restart of Core Lithium’s flagship Finniss operation in the Northern Territory is also likely to be attracting attention.

Late last month, the company announced that its underground decline development has now started at the BP33 deposit. This is a major step for Finniss, which sits about 88 kilometres by sealed road from Darwin Port.

The company said BP33 is expected to provide a long-life, low-cost underground production base, with a mine life of more than 10 years. It also remains open at depth, which means there could be room to extend the operation over time.

The underground development will run alongside the current open-pit mining at Grants.

Are Core Lithium shares a buy, sell, or hold?

According to the experts, there could be a huge upside ahead over the next 12 months.

TradingView data shows that three out of four analysts have a buy or strong buy rating on the shares.

The average target price of 39.5 cents implies a 53% upside at the time of writing. But some think the lithium shares have the potential to rocket 169% higher to 70 cents each over the next 12 months. 

The post Why is this ASX lithium stock racing 9% higher today? appeared first on The Motley Fool Australia.

More reading

• SpaceX shares continue to slide. What’s the next catalyst for a recovery?
• 9 ASX 200 shares with refreshed buy ratings this week
• 3 ASX 200 stocks smashing new 52-week-plus highs today
• Why Sandfire, Domino’s and Macquarie shares are making waves on Thursday
• 8 ASX 200 shares downgraded by experts this week

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.

Domino’s Pizza Enterprises Ltd (ASX: DMP), Sandfire Resources Ltd (ASX: SFR), and Macquarie Group Ltd (ASX: MQG) shares are grabbing financial headlines today.

Two of the large-cap stocks are underperforming the 0.7% gains posted by the S&P/ASX 200 Index (ASX: XJO) during the Thursday lunch hour, while one stock is racing ahead of those gains.

Here’s why all three are grabbing investor attention today.

Macquarie shares dip on CEO transition

After posting gains this morning, Macquarie shares have dipped into the red at the time of writing, down 0.1% at $254.65 each.

This comes after the ASX 200 diversified financial services company announced that Shemara Wikramanayake will step down from her role in November. Wikramanayake has held the top post for eight years.

Greg Ward will take over the reins following Wikramanayake’s retirement. Ward is currently Macquarie’s Head of Banking and Financial Services.

Commenting on the transition, Wikramanayake said:

I take confidence in the strength of the team, and particularly in Greg’s ability to build on the legacy of our six decades of history. We have worked together for 30 years, and his track record, leadership and integrity make him an excellent candidate to be Macquarie’s next CEO.

Sandfire shares lift on record quarterly sales

Unlike Macquarie shares, Sandfire shares are outperforming today, up 4.3% to $19.49 apiece.

Sandfire shares are making waves following the release of a strong June quarter update (Q4 FY 2026).

Among the highlights, the ASX 200 copper stock reported a 38% increase in copper equivalent (CuEq) production to 47,600 tonnes. This saw the miner achieve annual production guidance, producing 154,200 tonnes of CuEq in FY 2026.

Likely spurring investor spirits, Sandfire achieved record quarterly sales revenue of $574 million.

On the earnings front, underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at $343 million. Management expects full-year FY 2026 underlying EBITDA to reach $867 million.

Turning to the balance sheet, as at 30 June, Sandfire had a net cash position of $353 million. That compares favourably to the company’s $123 million in net debt a year earlier.

Which brings us to…

Domino’s shares slip on court ruling

Like Macquarie shares, Domino’s shares are trailing the benchmark today.

Shares in the ASX 200 fast food pizza retailer are down 0.2% at the time of writing, changing hands for $16.85 apiece.

This follows news that the Federal Court ruled that Domino’s engaged in “misleading and deceptive conduct regarding the application of certified enterprise agreements”.

The ruling is part of a broader class action addressing alleged underpayment of franchisee employee wages from 2013 to 2018.

The ruling only relates to Mr Gall, the lead applicant’s claim. The court assessed Gall’s loss at just under $12,000.

Domino’s said it is reviewing the court’s judgment to assess the potential for appeal. The company noted that the potential liability for broader group members remains “highly uncertain and unquantifiable”.

The post Why Sandfire, Domino’s and Macquarie shares are making waves on Thursday appeared first on The Motley Fool Australia.

More reading

• Domino’s Pizza Enterprises faces court ruling in class action earnings update
• Sandfire Resources posts record sales and cash in strong FY26 finish
• Macquarie Group announces new CEO as Shemara Wikramanayake prepares to retire
• This UK bank plans to disrupt CBA, ANZ, NAB and Westpac
• These ASX shares could generate $12,000 per year in passive income

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 Domino’s Pizza Enterprises and Macquarie Group. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and Macquarie Group. 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 0.6% higher at 8.875.9 points on Thursday.

This week, brokers have reduced their ratings on several ASX 200 shares.

Let’s take a look.

Cochlear Ltd (ASX: COH)

The Cochlear share price is $110.20, down 1.7% today and down 65% over 12 months.

RBC Capital downgraded the ASX 200 healthcare share to a hold rating.

The broker reduced its 12-month price target from $125 to $117.

This implies a potential 6% upside ahead.

AMP Ltd (ASX: AMP)

The AMP share price is $2.15, up 0.7% today and up 29% over 12 months.

Jarden downgraded AMP shares to a hold rating, but increased its price target from $1.65 to $2.

This suggests a potential 7% downside ahead for the ASX 200 financial share.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is $88.76, down 1.3% today and up 6.8% over 12 months.

Morgan Stanley downgraded the ASX 200 consumer discretionary share to a sell rating today.

The broker lifted its 12-month price target slightly from $78.70 to $79.

This implies a potential 11% downside ahead.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price is $38.93, down 0.9% today and up 25% over 12 months.

JP Morgan downgraded the ASX 200 consumer staples share to a hold rating.

The broker raised its 12-month price target from $37 to $39.50.

This indicates a potential capital gain of just 1% over the next year. 

Coles Group Ltd (ASX: COL)

The Coles share price is $23.50, up 0.4% today and up 16% over 12 months.

JP Morgan downgraded Coles shares to a hold rating with a $23.50 target.

This suggests the stock is fully valued at today’s price.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is $11.80, down 0.3% today and down 12% over 12 months.

Citi downgraded the ASX 200 travel share to a hold rating with a $13.20 target.

This suggests a potential 12% upside ahead.

Centuria Industrial REIT (ASX: CIP)

The Centuria Industrial REIT share price is $3.01, up 1.9% today and down 4% over 12 months.

Bell Potter downgraded the real estate investment trust (REIT) to a hold rating with a $3.25 target yesterday.

This suggests potential capital growth of 8% over the next year. 

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is $14.95, up 0.6% today and down 30% over 12 months.

RBC Capital downgraded the ASX 200 tech share to a hold rating with an $18 target.

This still implies a healthy potential 20% upside ahead.

The post 8 ASX 200 shares downgraded by experts this week appeared first on The Motley Fool Australia.

More reading

• How much could a $100,000 ASX share portfolio pay in dividends?
• How much does Morgan Stanley think Wesfarmers shares will fall?
• Canaccord Genuity picks its top 3 ASX industrial shares
• How many Cochlear shares do I need to buy for $10,000 of passive income?
• Are Telix shares a buy, hold or sell following results?

JPMorgan Chase is an advertising partner of Motley Fool Money. 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 Cochlear, JPMorgan Chase, Telix Pharmaceuticals, and Wesfarmers. The Motley Fool Australia has recommended Cochlear, Flight Centre Travel Group, Telix Pharmaceuticals, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Corporate Travel Management Ltd (ASX: CTD) share price is in focus after the company formally confirmed Ana Pedersen as its new Managing Director and Group Chief Executive Officer, following her time as Acting CEO. The appointment is effective 23 July 2026, marking a significant leadership update for Corporate Travel shareholders.

What did Corporate Travel Management report?

• Ana Pedersen confirmed as Managing Director and Group CEO, effective 23 July 2026
• Ms Pedersen previously served as Acting Group CEO since 2 February 2026
• Total annual fixed remuneration set at $1.2 million
• Short-term incentive opportunity of $500,000 (FY26), subject to performance
• Long-term incentive opportunity of $1 million (FY26), also performance-based

What else do investors need to know?

Ana Pedersen brings more than 20 years’ global experience in corporate travel and technology, with senior leadership roles across Australia, Asia, and North America. Prior to joining CTM in October 2024, she held executive roles with BCD Travel and HRS Group, leading significant growth initiatives and managing global commercial strategies.

Her new permanent appointment replaces her interim role and follows a period described by Corporate Travel as “particularly challenging.” The Board has highlighted her steady leadership and focus on client delivery during this time.

What did Corporate Travel Management management say?

Managing Director and Group Chief Executive Officer Ana Pedersen said:

I am pleased to continue leading Corporate Travel, and our focus is on advancing our priorities with discipline and clarity, while working toward fair and timely outcomes for those affected. We remain committed to delivering for our clients and supporting our people, who are at the heart of our business. We know there is more to do, and we are doing everything we can to make meaningful progress.

What’s next for Corporate Travel Management?

Ms Pedersen’s appointment signals continuity in Corporate Travel’s strategy, with a continued emphasis on supporting clients and staff while navigating ongoing industry challenges. The Board voiced confidence that her leadership will help position Corporate Travel for long-term success and steady delivery on key objectives.

Looking ahead, incentive arrangements for the new CEO involve both short- and long-term performance targets, aligning her interests with sustained growth for shareholders. Further updates about performance or strategy may follow in future announcements.

View Original Announcement

The post Corporate Travel Management names Ana Pedersen as new CEO appeared first on The Motley Fool Australia.

More reading

• Corporate Travel Management updates investors on delayed FY25 results and UK remediation

Motley Fool contributor Laura Stewart 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 Corporate Travel Management. The Motley Fool Australia has positions in and has recommended Corporate Travel Management. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

S&P/ASX 200 Index (ASX: XJO) stock Generation Development Group Ltd (ASX: GDG) is racing higher today.

Shares in the diversified financial services business closed yesterday trading for $3.34. In late morning trade on Thursday, shares are changing hands for $4.45 apiece, up 33.2%.

For some context, the ASX 200 is up 0.6% at this same time.

This strong outperformance follows the release of Generation Development’s decidedly positive June quarter update (Q4 FY 2026).

Here’s what’s got investors stirred up.

ASX 200 stock rockets on funds management growth

The June quarter saw Generation Development complete the full integration of the Evidentia and Lonsec managed account businesses.

And this looks to be paying off.

The ASX 200 stock reported a 36% year-on-year increase in group funds under management (FUM) to $46.4 billion as at 30 June 2026.

Generation Life achieved a 35% increase in FUM from Q4 FY 2026 to $5.95 billion. The division reported record quarterly sales inflows of $442 million, up 39% year on year.

In what management called “one of the most significant alliances secured by Generation Life”, the June quarter saw Colonial First State (CFS) select Generation Life as its strategic retirement solutions provider. CFS manages and administers more than $180 billion in investments.

Evidentia also enjoyed strong growth, with FUM increasing by 37% to $40.5 billion. The company credited the strong performance to both organic client growth and strategic transitions.

And Lonsec Research and Ratings increased the number of products it researched by 9% year on year to more than 2,000, up 9%, while iRate subscribers grew 13% to 5,629. The ASX 200 stock said that its ongoing investment in research capability and governance solutions positions Lonsec well for further commercial expansion.

What did management say?

Commenting on the results sending the ASX 200 stock surging today, Generation Life CEO Grant Hackett said, “With the integration of Evidentia and Lonsec managed accounts, we’ve created a stronger, more resilient platform for future growth. “

Looking ahead, Hackett said, “Structural and legislative tailwinds supporting long-term growth remain favourable.”

He added:

Australia’s ageing population, increasing demand for retirement income solutions and continued need for financial advice are expected to support demand across our investment bonds and LifeIncome products, managed accounts and research businesses over time.

The combination of Generation Life, Evidentia and Lonsec creates a differentiated wealth platform spanning product manufacturing, investment implementation and independent research.

We believe this integrated operating model positions GDG to continue delivering sustainable long-term growth into FY27 and beyond.

The post Guess which $1.8 billion ASX 200 stock is leaping 33% on Thursday! appeared first on The Motley Fool Australia.

More reading

• Generation Development Group posts 36% lift in FUM and record inflows for FY26
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares 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 recommended Generation Development Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX dividend shares are a great way for investors to build financial security, take advantage of compounding, and create an extra passive income stream.

A common misconception is that investors need to invest millions of dollars (or more) to make it worth it.

The reality is that you could earn a good passive income off a portfolio of around $100,000.

But what could that passive income actually look like?

Let’s break it down.

How much could I earn off a $100,000 ASX share portfolio?

The easiest way to calculate your passive income is by multiplying your total portfolio value by your dividend yield.

The tricky part is that the answer varies widely depending on the dividend yield of your portfolio.

For example, $100,000 x 3% = $3,000 per year in dividend payments.

But if your portfolio has a dividend yield of around 6%, your passive income will be double the size. That’s because $100,000 x 6% = $6,000 per year in dividend payments. 

And so on. As your dividend yield increases, the passive income you can earn from your $100,000 portfolio also increases.  

These figures are based on cash dividends before any tax or franking credit benefits.

Of course, this type of money isn’t going to become a primary income stream, but it’ll certainly help create an extra buffer.

Which ASX shares could earn me $3,000 per year in dividends?

To earn an annual passive income of around $3,000, your portfolio will need to yield around 3%.

A 3% dividend yield is very achievable, and there is a wide range of high-quality ASX dividend shares that pay out around that level. 

For example, major blue chips like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) pay around the 3% mark. As do long-standing ASX dividend players like Washington H. Soul Pattinson and Co Ltd (ASX: SOL), ASX healthcare giant CSL Ltd (ASX: CSL), and Coles Group Ltd (ASX: COL).

What ASX shares could help me earn around $6,000 per year in dividend payments?

To earn an annual passive income of around $6,000, your portfolio will need to yield around 6%.

This is a little higher than the average across the index, but there are still plenty of options available.

For example, long-standing ASX dividend payer APA Group Ltd (ASX: APA) pays around 6%. Metcash Ltd (ASX: MTS) also pays around a 6% yield, as does energy provider AGL Energy Ltd (ASX: AGL).

What about if I wanted to earn $10,000 per year in dividends? Is that possible?

Technically, yes, although your portfolio would need to average a dividend yield of around 10%. 

There are options around this level, but they generally come with higher risk.

Some good high-yielding ASX shares are IPH Ltd (ASX: IPH) and non-bank lender Liberty Financial Group Ltd (ASX: LFG). Meanwhile, GQG Partners Inc (ASX: GQG) yields even higher, at around 16%.

Of course, it’s important to note that, ideally, you want to build a portfolio comprising a mix of different yielding shares for diversification, rather than a portfolio of just one stock.

The post How much could a $100,000 ASX share portfolio pay in dividends? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Apa Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group, CSL, Gqg Partners, and IPH Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shaw and Partners analysts believe there is now a disconnect between the share prices of Australian uranium producers and developers and the global uranium market, which has demonstrated significantly improved fundamentals.

The broker has this week published a research report naming its top picks in the sector and share price targets for each, which we’ll get to shortly.

First, let’s see what they’re saying about the sector overall.

Energy security driving uranium demand

To start with, Shaw and Partners said there is a divergence between company share prices and the improving uranium price.

They said:

The Global X Uranium ETF is down 31% over the past three months and has given back the gains in Jan/Feb to be down 9% in CY26. That is despite the long term uranium price improving to US$95.5 per pound – a record high, and with strong momentum to move higher. We view the pullback as an excellent buying opportunity.

Shaw and Partners said the drivers behind the strong uranium price continued to strengthen.

They said:

Nuclear energy has returned to favour with governments focused on energy security and decarbonisation. The conflict in the Middle East adds additional focus on energy security. On top of that, demand for clean, baseload energy for data centres and AI will add further demand for nuclear power. The US, China and India have all set ambitious targets to expand their nuclear industries. There are now 38 countries pledged to triple nuclear energy by 2050.

The broker said the World Nuclear Association estimates there are currently 372 gigawatts of nuclear capacity online; however, this is expected to grow to 686 gigawatts by 2040.

They added:

Existing mine production is only about 150Mlb of U3O8, so we need to add ~240Mlb of new mine supply in the next 14 years. When you consider depletion of existing mines, the required new supply is more likely to be >350Mlb. It is difficult to see where more than 150Mlb of that supply will come from. Sovereign strategic buyers have recognised the urgency to lock in nuclear fuel supply next decade. India and China are leading the way, and we expect to the US follow suit.

Massive share price upside for ASX uranium companies tipped

In terms of the Australian companies they like, they are: NexGen Energy Ltd (ASX: NXG) with a price target of $24.80, Paladin Energy Ltd (ASX: PDN) with a price target of $19.10, Silex Systems Ltd (ASX: SLX) with a price target of $14.30, Bannerman Energy Ltd (ASX: BMN) with a price target of $7.60, Boss Energy Ltd (ASX: BOE) with a price target of $3.08, Peninsula Energy Ltd (ASX: PEN) with a price target of 81 cents, and Atomic Eagle Ltd (ASX: AUE) with a price target of $1.70.

The post 7 ASX uranium stocks one broker says have massive upside appeared first on The Motley Fool Australia.

More reading

• Why Paladin Energy shares could rise 60%
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Why is everyone talking about Resolute Mining, Westgold and Paladin shares on Wednesday?
• Paladin Energy sets FY2027 Langer Heinrich uranium guidance

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.

James Hardie Industries PLC (ASX: JHX) shares are storming higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) building materials company closed yesterday trading for $34.85. In earlier morning trade on Thursday, shares jumped to $37.89, up 8.7%. After likely profit-taking, shares are currently trading at $36.87 each, up 5.8%.

For some context, the ASX 200 is up 1% at this same time.

Today’s boost continues the strong upward trend for James Hardie shares since the recent lows in mid-May. Indeed, since market close on 18 May, the ASX 200 stock has gained an impressive 41.7%.

Here’s what’s stoking investor interest today.

James Hardie shares surge on Q1 guidance beat

James Hardie shares are outperforming today following the release of the company’s preliminary first-quarter FY 2027 results. ASX investors can expect to see the final audited results on 7 August.

As for the preliminary results, the company reported consolidated net sales of US$1.449 billion to US$1.475 billion. That result is being well received by the market today, as it is materially above Q1 sales guidance of US$1.315 billion to US$1.354 billion.

Earnings also topped expectations, with earnings before interest, taxes, depreciation and amortisation (EBITDA) ranging from US$399 million to US$407 million. That compares favourably to Q1 EBITDA guidance of US$354 million to US$375 million.

James Hardie’s Siding & Trim division performed strongly, achieving Q1 net sales of US$846 million to US$860 million. That also exceeds first-quarter sales guidance for the division of US$758 million to US$781 million.

In other core financial metrics, James Hardie reported preliminary consolidated GAAP net income for the quarter in the range of US$102 million to US$104 million.

What did management say?

Commenting on the results lifting James Hardie shares today, CEO Aaron Erter said, “Our first quarter results are expected to exceed our prior guidance, primarily as a result of better-than-expected sales in Siding & Trim”.

Erter continued:

Siding & Trim net sales reflected strong sell through and underlying demand for our products. Our performance in Deck, Rail & Accessories was driven by channel inventory normalization and sell-through that improved throughout the quarter.

First-quarter Deck, Rail & Accessories net sales came in at US$296 million to US$305 million.

Erter concluded:

We believe our performance reflects our team’s execution and growth above market, rather than a meaningful improvement in the overall US housing market. That said, we are encouraged by the positive traction from our initiatives to grow our fibre cement business, continued conversion in decking and the positive contribution from sales and cost synergies.

The post Why are James Hardie shares jumping 9% on Thursday? appeared first on The Motley Fool Australia.

More reading

• James Hardie posts strong Q1 FY27 earnings above guidance
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• Buy, hold, sell: James Hardie, Adairs, Minerals 260 shares
• Here are the top 10 ASX 200 shares 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.

Wesfarmers Ltd (ASX: WES) shares have climbed substantially over the past three months, but broker Morgan Stanley warns the rally could be overdone.

Where to now for the Wesfarmers share price?

The shares have improved from levels in the low $70 range in April and May to be changing hands for $89.90 now, up a modest 8.16% over the past 12 months.

But Morgan Stanley warns that the re-rating in discretionary spend stocks has “run ahead of fundamentals and is unlikely to prove durable”.

Looking at the consumer sector broadly, the broker has downgraded its industry view to cautious from in-line, “following capital gains tax and negative gearing changes and the expected drag on housing activity, wealth effects, sentiment, and discretionary spending”.

They said that since the announcement of the tax changes, their cautious view had not changed, and they see the risk of derating as high.

Sector-wide, Morgan Stanley said companies were trading at high multiples, not far off 10-year highs.

They added:

Historically, valuation premiums at these levels vs. the market have required either accelerating earnings estimate revisions or a supportive macro backdrop. We see neither today, suggesting that the risk/reward balance has become increasingly unfavourable ahead of reporting season.

The broker has downgraded Wesfarmers to underweight, “following a period of strong share price performance that has pushed the stock’s valuation ahead of the likely earnings trajectory”.

They added:

While we expect Kmart to be a beneficiary of trade-down and range expansion (K home), we expect a moderation vs. consensus expectations in Bunnings’ sales growth, given the emerging correction in domestic property markets. Bunnings remains a high quality business with strong market positioning, attractive returns on capital, and structural opportunities across range, digital, loyalty, and store productivity. However, near-term expectations appear demanding. The emerging correction in domestic property markets is likely to weigh on housing turnover and renovation-related expenditure, particularly in larger-ticket and project-led categories. Maintenance and repair demand should remain comparatively resilient, but we expect softer discretionary spending to result in sales growth below current consensus assumptions.

Kmart, on the other hand, should be a beneficiary of pressure on household budgets, Morgan Stanley said, as consumers seek greater value for money.

They added:

Ongoing range expansion, including K home, provides an additional avenue for category growth and market share gains. Nevertheless, expectations for Kmart are already elevated following several years of strong execution.

What share price to expect

Morgan Stanley slightly increased its price target for Wesfarmers shares, upping it from $78.70 to $79.

The broker is expecting the dividend yield to be 2.7% this year.

The post How much does Morgan Stanley think Wesfarmers shares will fall? appeared first on The Motley Fool Australia.

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