Author: openjargon

Data centre companies have been in demand on the ASX over the past year, but not all of them are created equal.

I’ve selected two broker reports published in the past week which profile companies the brokers think will perform well following their recent results announcements.

Let’s see who they like.

Nextdc Ltd (ASX: NXT)

This data centre operator reported net revenue of $405 million for FY26, up 16%, with net profit improving from a $60.5 million loss to an $82.1 million profit.

The company spent $3.39 billion on capital expenditure in FY26, and expects to follow that with $2.7-$3 billion in spending this year, “reflecting additional land acquisitions and accelerated delivery of contracted capacity”.

Nextdc Chief Executive Officer Craig Scroggie said of the results:

FY26 was the largest contracting year in Nextdc’s history. Contracted utilisation tripled to 740.1MW on a pro forma basis, and we exceeded guidance on both net revenue and Underlying EBITDA. Our Forward Order Book of 565MW is now more than 3.2 times our billing utilisation, and our focus is on delivering that capacity and converting it into revenue and cash inflow. Since August 2025 we have also raised $9.75 billion of new capital, taking pro forma liquidity from $5.5 billion to $8.7 billion and providing significant capital to deliver the contracted capacity and grow our development pipeline.

Nextdc is expecting to grow its net revenue by 52%-58% this year and underlying EBITDA by 55%-65%.

UBS said the profit result was better than expectations, and they expected large consensus upgrades to earnings across FY27-FY29.

UBS has a price target on Nextdc of $22.55, well above the current share price of $13.99.

Macquarie Technology Ltd (ASX: MAQ)

This data centre operator reported its twelfth straight year of EBITDA growth, posting FY26 earnings of $115.9 million, up 2%.

During the year the Federal Government also invested $200 million into Macquarie Technology, ”via the National Reconstruction Fund Corporation (NRFC) – a sovereign investment fund to support nationally significant technological innovation, digital infrastructure, defence and national security”.

After the end of the financial year the company also completed the acquisition of a 34,200sqm site in Macquarie Park, which underpins a proposed 200MW Macquarie Engineering & Technology Campus.

On the outlook for the current year the company is expecting modest growth in EBITDA.

Broker Macquarie said the FY26 result was largely in line with expectations, while the outlook was slightly softer than expected.

Macquarie has a price target of $87.80 on Macquarie Technology shares, compared to $57.27 currently.

The post 2 ASX data centre stocks rated a buy appeared first on The Motley Fool Australia.

More reading

• 9 ASX 200 shares with strengthened buy ratings this week
• 5 things to watch on the ASX 200 on Friday
• NEXTDC share price in focus after record FY26 earnings and strong outlook
• Macquarie Technology: Twelve years of EBITDA growth
• Investing in AI stocks on the ASX? Here’s what you should buy

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

It was a pleasant end to the trading week for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Friday. Investors shook off the negativity that we saw yesterday right off the bat this morning, pushing the market higher at open.

The ASX 200 stayed in green territory all session, steadily climbing to close with a 0.6% gain. That leaves the index at 9,092.3 points as we head into the weekend.

This happy day for Australian investors followed an upbeat Thursday session for US markets overnight.

The Dow Jones Industrial Average Index (DJX: .DJI) enjoyed a modest 0.1% gain.

Meanwhile, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) ran much hotter, rising 1.57%.

But let’s get back to the local markets now for an examination of how the various ASX sectors fared amid today’s pleasant trading conditions.

Winners and losers

There were only a couple of sectors that weren’t invited to today’s ASX party.

The most conspicuous absentee was real estate investment trusts (REITs). The S&P/ASX 200 A-REIT Index (ASX: XPJ) was left out in the cold, slumping 0.78%.

The other unlucky corner of the market was utilities shares, with the S&P/ASX 200 Utilities Index (ASX: XUJ) slipping 0.09%.

Let’s get to the winners now, though. Leading said winners this Friday were tech shares. The S&P/ASX 200 Information Technology Index (ASX: XIJ) was on fire, shooting 2.31% higher.

Mining stocks were in high demand too, illustrated by the S&P/ASX 200 Materials Index (ASX: XMJ)’s 0.98% surge.

Gold shares were also popular. The All Ordinaries Gold Index (ASX: XGD) roared 0.9% higher this session.

Financial stocks had a day to remember as well, with the S&P/ASX 200 Financials Index (ASX: XFJ) soaring 0.75%.

Energy shares didn’t miss out. The S&P/ASX 200 Energy Index (ASX: XEJ) enjoyed a 0.66% jump this Friday.

We could say something similar for consumer discretionary stocks, as you can see by the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ)’s 0.44% leap.

Its consumer staples counterpart was a little less enthusiastic. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) still managed a 0.3% improvement, though.

Communications stocks were our next corner of the market, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) advancing 0.25%.

Healthcare shares were decent performers, too. The S&P/ASX 200 Healthcare Index (ASX: XHJ) put on 0.08% today.

Finally, industrial shares only just got over the line, evidenced by the S&P/ASX 200 Industrials Index (ASX: XNJ)’s 0.04% bump.

Top 10 ASX 200 shares countdown

Gold stock Pantoro Gold Ltd (ASX: PNR) was our chart-topper this Friday.

Pantoro shares rocketed up 5.88% to close at $2.88 each today. That was despite no news or announcements from the company today.

Here’s the rest of today’s best:

ASX-listed company	Share price	Price change
Pantoro Gold Ltd (ASX: PNR)	$2.88	5.88%
Vulcan Energy Resources Ltd (ASX: VUL)	$2.71	5.04%
Xero Ltd (ASX: XRO)	$85.64	4.78%
Liontown Ltd (ASX: LTR)	$1.20	4.37%
Resolute Mining Ltd (ASX: RSG)	$1.44	4.36%
IperionX Ltd (ASX: IPX)	$3.05	4.10%
PLS Group Ltd (ASX: PLS)	$5.36	4.08%
IGO Ltd (ASX: IGO)	$8.58	3.50%
TechnologyOne Ltd (ASX: TNE)	$32.74	3.48%
Alcoa Corporation (ASX: AAI)	$71.00	3.06%

Enjoy the weekend!

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

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

More reading

• Why the ASX 200 is pushing higher as rate hike fears grow
• Buy, hold, sell: Ramsay Health Care, PLS Group, Woolworths shares
• Xero shares just jumped 8%. Is $100 next?
• How I’d aim to build a $1 million ASX share portfolio in 20 years
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.

With earnings season in full swing on the ASX this week, we heard from two titans of the ASX, and two companies that almost all of us visit at least once a week. Yep, both Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) have just dropped their results. Coles stock reported on Tuesday, while Woolies shares followed up on Wednesday.

The market reacted positively to both companies’ numbers. By the time trading had wrapped up on Tuesday, the Coles share price had jumped 4.9%. Woolworths shares had gained 3.42% by the close of trading on Wednesday.

Both reports were arguably positive, with plenty of green numbers. You can read more about Coles’ FY2026 here, or about Woolies’ year here, if you’re curious.

But today, I want to focus exclusively on the final dividends that both companies declared, and assess which was the more pleasing announcement.

Coles stock or Woolies shares: Which had the better final dividend?

Let’s go through Woolworths shares’ new dividend first. Woolies revealed that its final dividend for 2026 will come in at 52 cents per share. Like all dividends from this ASX 200 stock, it will come with full franking credits attached. This final dividend represents a 15.56% increase over the equivalent payouts that shareholders enjoyed in 2025, worth 45 cents per share.

It takes Woolworths’ full-year payouts for 2026 to 97 cents per share. That’s up 15.48% from the 84 cents that shareholders bagged in 2025.

Meanwhile, owners of Coles stock are set to receive a final dividend of 37 cents per share for 2026. It will come fully franked. 37 cents per share is up 15.6% on the 32 cents investors bagged this time last year. It pushed Coles’ full-year payouts up to 78 cents per share, which was up 13% from the 74 cents the company paid out over 2025.

So on the surface, it appears these two ASX stocks have delivered markedly similar dividend results this August. And they have. However, I still think there’s a clear winner here.

Coles has given its income investors far more certainty over the past few years than Woolworths. 2026 marks the seventh year in a row that Coles has raised its annual dividends. In stark contrast, Woolies’ recent dividends have been far more yo-yo-like. To illustrate, the company doled out $1.04 per share over 2023, $1.44 per share in 2024, and then 84 cents per share in 2025.

Finally, Coles stock is sitting on a trailing dividend yield of 3.3% right now, while Woolworths shares are trading on a 2.46% yield. Enough said.

The post Coles stock vs Woolworths shares: Who had the better dividend this week? appeared first on The Motley Fool Australia.

More reading

• 9 ASX 200 shares with strengthened buy ratings this week
• Buy, hold, sell: Ramsay Health Care, PLS Group, Woolworths shares
• How much passive income can I earn off a $1 million superannuation balance?
• How much could $10,000 in Woolworths shares be worth in a year?
• 37 ASX shares going ex-dividend next week

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Minerals 260 Ltd (ASX: MI6) share price is in focus after the company announced the granting of an expanded Mining Lease at its Bullabulling Gold Project and the acquisition of additional regional tenements, expanding its total project area to 1,527km².

What did Minerals 260 report?

• The expanded Mining Lease now covers the full mining and processing area defined in its Pre-Feasibility Study.
• Minerals 260 entered a binding agreement to acquire 367km² of additional tenure from Kalgoorlie Mining Associates Pty Ltd.
• Total project area now stands at 1,527km², up significantly from the original 130km² acquired in April 2025.
• The Bullabulling Gold Project hosts a gold resource of 190Mt at 1.0g/t Au for 6.2Moz (JORC 2012 Mineral Resource Estimate as of July 2026).
• Board’s Final Investment Decision is on track for Q1 CY2027, with project approvals progressing as planned.

What else do investors need to know?

The newly granted Mining Lease, along with the acquisition of strategic nearby tenements, gives Minerals 260 Limited control over the largest and most prospective land package along the Bullabulling fault. This move broadens its exploration potential and underpins the scale of the Bullabulling Gold Project.

The acquisition deal consists of $250,000 in cash and $1,000,000 in Minerals 260 shares, based on a 20-day volume-weighted average price to 26 August 2026. The transaction is expected to complete within two business days, subject to standard conditions.

Pre-feasibility plans and approvals continue on schedule, supporting the path towards a Board-level investment decision next year and targeted first production in 2028.

What did Minerals 260 management say?

Minerals 260 Managing Director, Luke McFadyen, said:

The granting of the expanded Mining Lease for Bullabulling is a significant step for the Project and reflects the continued de-risking activities the Company is focussed on to achieve our first production target in 2028. The newly acquired tenure enables Minerals 260 to add further potential targets to its ongoing regional exploration program, which is a focus for the Company to drive longer term value for shareholders.

What’s next for Minerals 260?

Looking ahead, Minerals 260 plans to integrate the newly acquired tenements into its regional exploration activities to identify additional gold targets. The company maintains its focus on advancing project permits and technical studies, with key milestones including a final board decision in early 2027 and ambitions for first gold production in 2028.

Management remains optimistic that a larger, unified landholding will enhance long-term value and flexibility as development proceeds.

Minerals 260 share price snapshot

Over the past 12 months, Minerals 260 shares have risen nearly 600%, far outpacing the All Ordinaries Index (ASX: XAO).

View Original Announcement

The post Minerals 260 expands Bullabulling project with new lease and tenement acquisition appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Minerals 260 drilling update: high-grade hits boost Bullabulling gold confidence
• 8 ASX 200 shares with fresh buy ratings this week
• How high does UBS think Minerals 260 shares will go?
• Here are the top 10 ASX 200 shares today

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 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. 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 All Ords Index (ASX: XAO) shares are 0.5% higher at 9,290.9 points on Friday.

As earnings season nears its end, brokers have updated their ratings as 12-month price targets on many ASX All Ords shares.

The following four shares have major upside potential over the next 12 months, according to the experts.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is $4.75, up 2.8% today and down 80% over 12 months. 

Canaccord Genuity reiterated its buy call on this ASX retail share following the online furniture seller’s FY26 results.

The broker has a 12-month target price of $9, which implies a potential 89% upside from here.

betr Entertainment Ltd (ASX: BBT)

The betr Entertainment share price is 20 cents, up 1% today and down 34% over 12 months.

Morgans maintained its buy rating on this ASX consumer discretionary share after the company’s FY26 results.

The broker kept its target price at 36 cents, implying a potential 82% upside from here.

Morgans said:

BETR Entertainment (BBT) finished the year strongly, with normalised EBITDA of $6.1m in the second half against guidance of $5m to $8m, a $19.3m swing on the first half.

Full year normalised EBITDA of -$7.1m was a touch below our -$6.2m, with a gross profit beat offset by a higher cost of doing business.

Encouragingly, current trading remains healthy. Through the first eight weeks of FY27, turnover is up more than 20%, new customers have almost doubled, CPA is down 31% and promotional cost is down 9%, all excluding the FIFA World Cup.

The company announced the launch of its new first to market ‘Wildcards’ same game multi (SGM) feature that will launch during the Wildcard AFL round this weekend.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo Capital share price is $1.01, down 0.8% today and down 42% over 12 months. 

Morgans reiterated its buy recommendation on this ASX bank share after reviewing Judo’s FY26 results.

The broker said: 

FY26 PBT landed towards the top end of the revised guidance range and FY27 guidance was reaffirmed offering strong earnings growth.

EPS forecasts moderated 2-6%.

The broker trimmed its 12-month price target from $1.47 to $1.42, suggesting a potential 40% upside ahead.

DigiCo Infrastructure REIT (ASX: DGT)

The DigiCo Infrastructure REIT share price is $2.62, up 1.2% today and down 12% over 12 months. 

Morgans kept its buy rating in place on this ASX real estate investment trust (REIT) after DigiCo’s FY26 results.

The broker has a 12-month price target of $3.60, implying a 37% upside ahead.

The broker said: 

The signed Letters of Intent (LOIs) over the remaining 52MW would take the Australian portfolio to full capacity — a strong demand signal that de-risks management’s pathway to $250m of EBITDA.

However the ramp-up in earnings is back-ended, hence FY27 guidance was ~8% below MorgansF and ~13% below Consensus.

Liquidity of ~$1.2bn funds the ~$1.2bn capex bill, with management calling out no need for additional equity.

We still see clear value, but the cashflows are pushed out — this is now an FY28-into-FY29 story.

The post 4 ASX All Ords shares with 40% to 90% upside post-results: experts appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Breville, Car Group, Temple & Webster shares
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Judo Capital, Healius, BHP shares
• Buy, hold, sell: DigiCo Infrastructure REIT, CBA, Telstra shares
• 2 ASX shares that could rise up to 45% following earnings results 

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

Northern Star Resources Ltd (ASX: NST) shares are having another good day on Friday.

At the time of writing, the gold miner’s shares are up 1.13% to $24.61.

It continues a strong run over the past month, with Northern Star shares now up around 21% since the end of July.

That bounce has helped the stock claw back some of its earlier losses. The shares are now up around 30% over the past 12 months, although they are still down roughly 8% in 2026 and remain well below their 52-week high of $31.96.

So, what’s been giving Northern Star shares a lift lately?

Gold prices are helping

One thing working in Northern Star’s favour right now is the gold price.

Gold is trading around US$4,583 an ounce and has climbed almost 13% over the past month, which is giving gold miners a nice tailwind.

Northern Star’s FY26 result also showed just how much that stronger gold price can help.

Revenue rose 19% to $7.62 billion, even though gold sold fell 6% to 1.54 million ounces. Helping offset the lower sales volume was the average realised gold price, which jumped 26% to $4,925 an ounce.

Underlying EBITDA increased 22% to $4.27 billion, while statutory net profit rose 24% to $1.66 billion.

Shareholders also got a fully franked final dividend of 30 cents per share.

Investors clearly liked what they saw, with the stock jumping 6.2% on 20 August when the result was released.

What happens next at KCGM?

A lot now comes down to how the KCGM expansion plays out.

Northern Star is now commissioning the larger processing plant, with the project expected to play a bigger role in production and cash flow over the coming years.

Management is guiding to FY27 gold production of 1.5 million to 1.65 million ounces, with all-in sustaining costs (AISC) of $3,050 to $3,450 an ounce.

Spending is still going to be high, though. Capital expenditure is expected to come in between $2.55 billion and $2.94 billion as work continues across KCGM and the Hemi project.

Keep in mind that this investment weighed on FY26 underlying free cash flow, which fell 64% to $190 million.

Managing director Stuart Tonkin called the company an “important inflection point”, with the KCGM expansion expected to help lift free cash flow as the ramp-up continues.

What are brokers saying?

Despite the recent rally, brokers aren’t all convinced there is much upside left.

According to TipRanks, the average 12-month price target is $23.08, which sits below where Northern Star shares are trading today.

Of the 11 analyst ratings, 2 are ‘buys’, 8 are ‘holds’ and 1 is a ‘sell’.

Jefferies is more positive, though. The broker kept its ‘buy’ rating after the FY26 result and lifted its price target to $27.

With the shares now at $24.61, Jefferies still sees the stock heading a little higher from here.

The post Northern Star shares are closing in on $25. Can the rally keep going? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 2 ASX 200 shares I’d buy and 2 I’d avoid amid a surging Aussie dollar
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Monday
• Brokers name the ASX 200 winners and losers from the first half of reporting season

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 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 0.4% higher at 9,070.7 points on the second last day of earnings season.

Brokers have been busily reviewing earnings results and updating their ratings and 12-month price targets accordingly.

Here is a sample of ASX shares that have scored upgraded ratings, and why.

Sigma Healthcare Ltd (ASX: SIG)

The Sigma Healthcare share price is $2.68, up 2.2% today and down 13% over 12 months.

Sigma Healthcare released its FY26 results this week.

Morgans upgraded the ASX 200 healthcare share from accumulate to buy today.

The broker shaved its 12-month price target from $3.30 to $3.19.

This implies a potential 12% upside ahead.

Morgans said:

SIG has posted its FY26 result which was in line with our and consensus forecasts. Highlights included EBIT growth of >20%, Australia CW LFL sales were 13.4% (1H 15.0%; 2H: 11.8%), International CW LFL sales of 12.2%.

We note the slight moderation in 2H in Australia was driven by a later start to the cold and flu season and cycling a very strong pcp.

SIG is targeting double-digit revenue and earnings growth for FY27.

The market has marked the shares down 7% post the FY26 results and possible sell down by some of the founders (up to 4.7% of issued capital).

We believe the share price fall is overdone and provides us with an opportunity to move our recommendation to BUY (from ACCUMULATE).

Adairs Ltd (ASX: ADH)

The Adairs share price is $1.41, down 2.1% today and down 49% over 12 months.

Adairs released its FY26 report this week.

Morgans upgraded the ASX consumer discretionary share to a buy rating.

The broker has a 12-month price target of $1.80, suggesting 27% upside from here.

Morgans said:

ADH reported FY26 underlying EBIT of $55.0m which was down 0.4% on the pcp and within guidance range of $53.5-55.5m.

Adairs and Mocka delivered strong EBIT growth (+14.9%/ +32.1%).

Focus on Furniture remains a drag with EBIT down 67.6% to $3.8m (~$2.0m loss in 2H) with management now guiding a two-year turnaround.

Given the underperformance, ADH recognised a non-cash impairment charge of $63.5m ($56.7m post tax).

We see the core Adairs banner set to deliver strong growth in FY27 driven by GM improvement and cost control, along with solid growth in Mocka offsetting weakness in Focus.

Given the share price weakness, we have upgraded to a BUY recommendation (from ACCUMULATE).

Polynovo Ltd (ASX: PNV)

The Polynovo share price is $1.04, up 1% today and down 24% over 12 months.

Polynovo released its FY26 earnings this week.

Bell Potter upgraded Polynovo shares to a buy rating today.

The broker increased its 12-month price target from $1 to $1.22.

This suggest a potential 18% upside ahead.

Bell Potter said:

The key concerns underpinning our July downgrade have eased sufficiently to restore confidence in the earnings outlook.

US trading improved into year-end and July, gross margin pressures appear largely temporary, and better-than-expected cost control
provides greater operating leverage as revenue scales.

We also see incremental upside from SynPath, with management now outlining a clearer strategy for entry into the US outpatient market, which is not yet reflected in our forecasts.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is $21.60, up 0.4% today and down 38% over 12 months.

Netwealth released its FY26 earnings this week.

Morgans raised the ASX 200 financial share to a buy call with a $27.50 target.

This implies potential gains of 28% ahead for Netwealth shares.

Morgans said:

NWL reported FY26 Revenue +21%; EBITDA +18%; and NPAT +16% on pcp, which was largely in line with MorgF / Consensus expectations.

Whilst flows momentum 1Q27 to date has seen a slower start, NWL reaffirmed its FY27 Flows guidance of $18-20bn, with the cadence of flows from MS and other sources expected to step up over the course of the year.

The post 4 ASX shares scoring upgrades in the final week of earnings season appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Netwealth, Sigma Healthcare, and Wesfarmers shares
• 3 ASX 200 shares to buy post-results: broker
• Why now is the time to buy low on these ASX healthcare shares with up to 84% upside
• 5 things to watch on the ASX 200 on Friday
• 3 excellent ASX shares I’d buy for long-term wealth creation

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 Adairs, Netwealth Group, and PolyNovo. The Motley Fool Australia has positions in and has recommended Adairs and Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Electro Optic Systems Holdings Ltd (ASX: EOS) shares are taking a breather on Friday following a huge run over the past month.

At the time of writing, the EOS share price is down 5.54% to $10.40 apiece.

The stock opened at $10.82 and traded as high as $11.10 earlier in the session.

But the pullback follows a very strong run over the past few weeks.

Even after today’s fall, EOS shares are still up around 40% over the past month. And if you zoom out a little further, the shares have almost doubled since February this year.

So, are investors simply taking some money off the table, or is there more going on?

What is weighing on EOS shares today?

There doesn’t appear to be any fresh company news behind the drop, so this looks more like some profit-taking after a stellar few weeks.

EOS shares jumped 23% on Tuesday after the company released its half-year result, before adding another 6.2% on Wednesday. They then slipped 2.1% on Thursday and are giving back more ground today.

The rebound has been even more impressive since the end of July. EOS shares closed at just $6.10 on 30 July, meaning the stock has climbed more than 70% from that level in less than a month.

Given how quickly the shares have climbed, it’s easy to see why some investors might be cashing in some gains.

Why did the shares jump this week?

The half-year result gave investors plenty to get excited about.

Revenue from continuing operations surged 283% to $168.8 million, helped by a big increase in activity across its defence systems business. Underlying EBITDA also swung to a $21.6 million profit from a $14.9 million loss a year earlier.

There was still a $33.7 million loss from continuing operations, although that included a $34 million non-cash fair value loss tied to the MARSS acquisition.

The order book was probably one of the biggest numbers in the result. Contracted work reached around $846 million at 30 June, up from just $170 million a year earlier.

Management is now guiding to full-year 2026 revenue of $360 million to $400 million.

If EOS can hit that range, it would deliver record annual revenue and show investors just how quickly the business is growing.

Foolish takeaway

After climbing so fast over the past month, EOS shares could stay volatile in the near term.

I’d keep an eye on the $10 level first, which has become an important area for the shares this year. Above that, Thursday’s intraday high of $11.98 is another level to watch, before the stock runs into its 52-week high of $12.58.

Bell Potter also remains positive after the result, keeping its ‘buy’ rating and $12.60 price target.

That target sits right around the previous high, so the next test is whether EOS can keep winning contracts.

The post EOS shares are sinking 5% today. Is the huge rally running out of steam? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• What is Bell Potter saying about EOS shares after its results?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Bendigo and Adelaide Bank, PLS, EOS shares

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

The team at Morgans has been busy running the ruler over a number of results this week.

Three popular ASX shares that have come under the spotlight are listed below. Does the broker rate them as buys? Let’s find out.

Netwealth Group Ltd (ASX: NWL)

This investment platform provider delivered a result that was largely in line with expectations.

And while fund inflows have started slowly in FY 2027, Morgans remains positive and has upgraded Netwealth shares to a buy rating with a $27.50 price target. It said:

NWL reported FY26 Revenue +21%; EBITDA +18%; and NPAT +16% on pcp, which was largely in line with MorgF / Consensus expectations. Whilst flows momentum 1Q27 to date has seen a slower start, NWL reaffirmed its FY27 Flows guidance of $18-20bn, with the cadence of flows from MS and other sources expected to step up over the course of the year. We make minor changes to our NPAT forecasts of +1% in FY27-29F, overall, this sees our price target unchanged at A$27.50/sh. We move to a BUY rating.

Sigma Healthcare Ltd (ASX: SIG)

Another ASX share that has been upgraded is Chemist Warehouse owner Sigma Healthcare.

Morgans was pleased with the company’s FY 2026 results, which were in line with expectations. In response, the broker has upgraded Sigma Healthcare shares to a buy rating with a $3.19 price target. It explains:

SIG has posted its FY26 result which was in line with our and consensus forecasts. Highlights included EBIT growth of >20%, Australia CW LFL sales were 13.4% (1H 15.0%; 2H: 11.8%), International CW LFL sales of 12.2%. We note the slight moderation in 2H in Australia was driven by a later start to the cold and flu season and cycling a very strong pcp. SIG is targeting double-digit revenue and earnings growth for FY27. 

We have reduced our forecast by ~3.5%, which sees our TP reduce to A$3.19 (was A$3.30). The market has marked the shares down 7% post the FY26 results and possible sell down by some of the founders (up to 4.7% of issued capital). We believe the share price fall is overdone and provides us with an opportunity to move our recommendation to BUY (from ACCUMULATE).

Wesfarmers Ltd (ASX: WES)

Bunnings and Kmart owner Wesfarmers delivered a result that was largely in line with expectations. 

However, it has started FY 2027 slightly softer than expected. Nevertheless, Morgans has retained its accumulate rating with an improved price target of $85.00. It said:

WES’s FY26 result was broadly in line with expectations, although trading in early FY27 was slightly softer, with management also flagging higher capex in FY27. Earnings from Bunnings, Kmart Group and Health were largely in line with expectations, while Officeworks was slightly above our forecasts. WesCEF was modestly weaker than anticipated. Management noted that while consumer demand remains resilient, cost-of-living pressures persist and customers continue to be value-conscious. 

We make minimal changes to FY27-29F group EBIT but decrease underlying NPAT by 1-2% due to higher net interest expense. Despite these changes, our target price rises to $85.00 (from $81.10) as we believe the increased investments WES is making in the near term will drive sustainable growth over the long term. This is particularly evident across its retail businesses (Bunnings, Kmart Group, Officeworks and Priceline), where investment should strengthen customer value propositions in a subdued consumer environment and position the divisions to capture stronger growth when economic conditions improve. ACCUMULATE rating maintained.

The post Buy, hold, sell: Netwealth, Sigma Healthcare, and Wesfarmers shares appeared first on The Motley Fool Australia.

More reading

• 4 ASX shares scoring upgrades in the final week of earnings season
• 3 ASX 200 shares to buy post-results: broker
• Why now is the time to buy low on these ASX healthcare shares with up to 84% upside
• 5 things to watch on the ASX 200 on Friday
• Everything you need to know about the Wesfarmers dividend

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

I love receiving dividends from my ASX share portfolio. That’s why a significant portion of my portfolio is focused on ASX dividend shares.

I like to own businesses that pay passive income to my bank account, while also delivering long-term capital growth.

All three of the names I’ll highlight each have a weighting of more than 10% in my portfolio. Let’s run through the appeal of each of them.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

This business has been one of my favourites for a very long time and I imagine it will continue to be so for decades to come.

The investment conglomerate has built a diversified portfolio across a range of sectors including resources, energy, financial services, property, retirement living, swimming schools, electrification and so on.

Its investments are themselves growing, while the business can also expand its portfolio with retained earnings each year. It’s this combination that helps the company’s net asset value (NAV) and share price.

Soul Patts has increased its annual dividend per share every year since 1998, which is the best record for longevity on the ASX. Additionally, it has paid a dividend every year in its 120-year-plus history.

I think this business is one of the best options for a combination of long-term capital and passive income growth. The current grossed-up dividend yield is 3.5%, including franking credits.

MFF Capital Investments Ltd (ASX: MFF)

MFF is another leading business for passive income. The company’s regular annual dividend has increased every year for the past several years.

The listed investment company (LIC) invests in high-quality shares that are competitively advantaged (strong economic moats) with compelling growth outlooks.

With an excellent, diversified portfolio, MFF has achieved strong investment returns and this has funded very good dividends.

In FY26, the company grew its annual dividend per share by 23.5% to 21 cents. I expect the business will increase its FY27 annual dividend by 19% to 25 cents per share.

I think it’s a great option to get exposure to impressive global blue-chips as well as strong passive income.

I believe its FY27 grossed-up dividend yield will be 6.7%, including franking credits, at the time of writing.

L1 Long Short Fund Ltd (ASX: LSF)

The third ASX dividend share that’s a major position in my portfolio is this LIC, which uses a mixture of long-term investing and short-selling through ASX shares and international shares to generate strong returns.

The L1 team generally like to look at businesses with low price/earnings (P/E) ratios, solid earnings growth and a good outlook. That generally means avoiding (long-term) investing in tech shares and instead focusing on names in areas like resources, energy and unloved names in other sectors.

L1 Long Short Fund is paying a quarterly dividend to investors and this payout is increasing every quarter, which is a pleasing growth trajectory.

I expect the FY27 annual dividend will grow by at least 11% year-over-year, translating into a potential grossed-up dividend yield of 4.6%, including franking credits.

With the above three ASX dividend shares, I believe my dividend cash flow is on a very good course.

The post Why these 3 top ASX dividend shares are my biggest holdings appeared first on The Motley Fool Australia.

More reading

• How much do I need to retire on $120,000 a year at 55?
• I’d buy 164,557 shares of this ASX stock to aim for $500 a week of passive income
• Why I’d buy this top ASX dividend share for major passive income today
• How much is needed in superannuation to target a $5,500 monthly passive income?
• How ASX dividend growth shares can build lasting income

Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund, Mff Capital Investments, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Mff Capital Investments and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.