Author: openjargon

S&P/ASX All Ords Gold Index (ASX: XGD) shares are barely in the green for 2026 as the Iran war continues to impact the safe-haven asset.

The gold price is trading at US$4,782 per ounce, up 11.5% in the year to date, following a major sell-off in the first few weeks of the war.

ASX investors sold down their gold shares and ETFs last month, but experts say there are still good buys in the market.

In a newsletter this week, Blackwattle Mid Cap Quality Fund portfolio managers Tim Riordan and Michael Teran said:

… the structural drivers for gold remain firmly intact, with Central Banks continuing to diversify reserves away from US Treasuries and geopolitical uncertainty providing an ongoing floor for demand.

Sprott Managing Partner, Paul Wong, said the gold price drop last month represented a rush to liquidity, not an end to gold’s bull run.

Wong added: “Structural pressures are building toward renewed monetary support—historically a powerful catalyst for gold.”

With that in mind, here are two ASX 200 gold shares that experts are backing for long-term growth.

Newmont Corporation CDI (ASX: NEM)

Newmont Corporation CDI shares dropped 14% in March but have recovered 5% in April so far to $159.07 per share.

Riordan and Teran said Newmont Corporation is the largest, lowest-cost, and most diversified gold miner in the world.

We continue to see material upside for NEM as an ‘enduring high-quality’ business and view NEM as the highest quality gold miner globally.

We expect NEM to execute on numerous multi-year internal levers to maintain and improve business quality, including organic production expansion, operating cost reductions, a net cash balance sheet and further capital returns.

This should allow NEM to deliver a higher quality, lower cost and increasingly diversified asset base through 2026 and 2027, and the March share price weakness represents a highly attractive entry point for a long-term compounder.

Evolution Mining Ltd (ASX: EVN)

The Evolution share price fell 24% in March, and has recovered 8% in April to $13.60 per share.

Morgans upgraded its rating on this ASX 200 gold mining share from hold to accumulate last week.

The upgraded rating followed Evolution’s March quarter report and a separate exploration update.

However, the broker reduced its 12-month price target from $17.16 to $16.10.

This still implies a potential near-20% upside ahead.

Morgans said:

Gold production met expectations despite weather and maintenance impacts, with weaker copper and higher AISC driven by Ernest Henry disruptions.

Strong 4Q26 expected to achieve FY26 guidance. Achieves net cash position with an updated capital management policy expected at its FY26 result in August.

We upgrade to an ACCUMULATE (from HOLD) following recent weakness across the gold sector which we believe has uncovered value in a high-quality name, despite a strong share price reaction post the result.

The post 2 ASX gold shares backed by experts for growth appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• 3 reasons to buy this ASX gold stock in April
• Newmont shares slip as Cadia update puts investors on alert

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

If you are in the market for some new portfolio additions, then it could be worth hearing what Morgans is saying about the shares in this article.

That’s because the broker recently named all three ASX 200 shares as buys. Here’s what you need to know:

Magellan Financial Group Ltd (ASX: MFG)

This fund manager could be worth considering according to the broker. It believes the merger with Barrenjoey is a game-changer and provides “additional pathways for growth.”

Morgans has put a buy rating and $11.99 price target on Magellan’s shares. It said:

MFG has given an end-to-March 2026 quarterly FUM update. FUM (A$37.5bn) was down 6% for the quarter due to a combination of outflows across most funds and market movements. Overall this was a softer quarter at the headline level, albeit some impacts from market volatility are unsurprising. We downgrade our MFG FY26F/FY27F EPS by -1%/-8% due to slightly weaker FUM assumptions and also applying more conservatism to our future Barrenjoey earnings forecasts.

Our PT falls to A$11.99 (from A$12.43). Whilst MFG’s Investment Management performance remains patchy, we think the Barrenjoey merger fundamentally changes MFG’s overall outlook, strengthening the business and providing additional pathways for growth. MFG also retains a strong balance sheet (~A$650m of liquidity, post deal). BUY maintained.

Nufarm Ltd (ASX: NUF)

Another ASX 200 share that has been given the thumbs up is agricultural chemicals company Nufarm.

In response to a better-than-expected performance in FY 2026, the broker put a buy rating and $4.05 price target on its shares. It said:

Pleasingly, NUF’s 1H26 EBITDA guidance was slightly higher than expected and it has had a strong 1H. Importantly, its leverage guidance is materially better than expected. Initial outlook comments for the 2H26 were positive and a new A$50m cost out program has been announced.

Given the appreciation in active ingredient and fish oil prices, NUF’s previous FY26 guidance could prove to be conservative. NUF is our key pick of the ag and chemical sector. The company is materially undervalued and we reiterate our BUY rating with a new price target of A$4.05.

Sigma Healthcare Ltd (ASX: SIG)

Morgans is also bullish on Chemist Warehouse owner Sigma Healthcare.

Due to its strong growth outlook and recent share price weakness, the broker has put a buy rating and $3.36 price target on the ASX 200 share. It explains:

SIG is a leading healthcare wholesaler, distributor and retail pharmacy franchisor with operations in Australia, NZ, Ireland and the UAE. We are forecasting ~20% EBIT growth p.a. over the next few years driven by strong LFL sales growth, store rollout (domestically and internationally), operating efficiencies and $100m p.a. synergies by FY29. Given the share price weakness, we have upgraded our recommendation to BUY (from ACCUMULATE) with an unchanged target price of $3.36 and 26% upside.

The post Morgans names 3 ASX 200 shares to buy now appeared first on The Motley Fool Australia.

More reading

• 2 top ASX shares to buy and hold for the next decade
• I think these are some of the best ASX 200 shares to buy now
• If I had $5,000 to invest in ASX 200 shares today, here’s what I’d buy
• Buy, hold, sell: Evolution Mining, Netwealth, and Nufarm shares
• Why this ASX 200 share could be heading 40%+ higher

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.

The S&P/ASX 200 Index (ASX: XJO) has jumped 14.5% higher over the past 12 months, but there is one stock strongly outpacing the index. Better still, it’s tipped to keep going.

Codan Ltd (ASX: CDA) shares ended the day 4.5% higher on Tuesday afternoon, at $36.47 a piece. The latest increase brings the ASX 200 stock 26% higher over the year-to-date and nearly 150% higher over the past 12 months.

Here’s why the ASX 200 stock is soaring

Codan develops electronics solutions for government, military, corporate, and consumer markets globally. The company provides products and services in communications, metal detection, and mining technology. 

Essentially its business is split into two divisions: communications and metal detection.

Like other defence-related companies, Codan shares have risen higher this year off the back of rising geopolitical tension and an uptick in demand for defence technology systems. Communication systems are one of the first things which the military upgrades because things like radios and communication systems are critical in conflict situations.

Elsewhere, Codan’s metal detection business (Minelab) has been well supported by strong gold detector sales. Its gold detectors are typically used by small-scale miners and are particularly popular in remote parts of Africa. The company also has solid demand across recreational markets globally. A lot of the demand for metal detectors has followed booming gold prices. Gold rush activity typically sees more individuals and smaller players try their hand at hunting for gold.

It’s not just defence and gold sector tailwinds pushing the Codan price higher though.

The ASX 200 stock’s strong earnings growth and robust financial performance has attracted a flurry of interest in its shares over the past 12 months.

Codan’s standout results point to long-term growth

The company revealed a huge surge in earnings when it posted its first-half FY26 results in February. 

Codan announced a 29% increase in group revenue, a 55% hike in NPAT and a 52% rise in EBIT. They’re some impressive numbers.

Most importantly, company growth was attributed to strong growth in both of its business segments. 

Codan’s communications division experienced revenue growth of 19% and maintained profit margins despite temporary headwinds in the Zetron Americas business.

It’s metal detection (Minelab) business delivered a standout half. Its revenue increased 46% and segment profit up 86% thanks to gold detector demand in West Africa and robust sales globally.

The company also said it will continue to invest in engineering and new product development. This will help to maintain its competitive edge and diversify its earnings base. 

What upside do analysts expect from Codan shares?

Market Index data shows that three brokers have a buy rating on Codan shares and another two have a hold rating. 

But what they can agree on is that there will be an upside ahead.

The average target price for Codan shares over the next 12 months is $39.68. This implies more than 10% upside for investors. 

It isn’t the same level of growth we’ve seen over the past year, but it suggests that there is plenty more to come out of the electronics solutions business.

The post This ASX 200 stock has jumped 149% in a year, and brokers tip more upside to come appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 5 ASX 200 shares I’d buy as the share market rebounds
• 3 of the best ASX 200 shares to buy this month with $6,000
• 3 strong ASX growth shares I want to buy in April

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.

If you have a high risk tolerance and want some exposure to the small side of the market, then read on.

That’s because Morgans has just put buy ratings on two small-cap ASX shares. Here’s what it is recommending to clients:

Many Peaks Minerals Ltd (ASX: MPK)

Morgans thinks this gold developer could be a small-cap ASX share to buy now.

Following the release of a stronger than expected mineral resource estimate (MRE) for the Ferke Gold Project, it has reaffirmed its speculative buy rating with an increased price target of $2.48 (from $1.92). The broker commented:

MPK delivered a maiden MRE of 26.7Mt at 1.54g/t Au for 1.32Moz at the Ferke Gold Project, a material beat vs our estimate of 1Moz at 1.1g/t Au. Importantly, 1.1Moz of the MRE sits within the Measured and Indicated category, forming the basis of our production scenario. We expect 80-90% of this to convert to reserve given the ideal geometry of the resource and its amenability to mining.

We see further upside as assumptions are refined (geotechnical inputs, process recoveries and additional drilling) as the project progresses toward PFS. We maintain our SPECULATIVE BUY recommendation and lift our price target to A$2.48ps (previously A$1.92ps).

SKS Technologies Group Ltd (ASX: SKS)

Another small-cap ASX share that is highly rated by Morgans is SKS Technologies. It designs, supplies and installs audio visual, electrical, and communication products and services.

The broker likes the company due to its exposure to the booming data centre (DC) market. It believes SKS is well-placed to deliver strong growth through to at least FY 2028.

In light of this, it has retained its accumulate rating on its shares with a revised price target of $6.70. Commenting on the small cap, Morgans said:

SKS’s recent contract expansion with its major customer has bolstered the group’s outlook, adding a further $80m of work, and broadening its pipeline of FY27 work in hand to $240m. DC sector demand remains robust, with various operators continuing to expand their capex/build activity over the coming years, and we continue to see a significant pipeline of DC build opportunity into FY27-28+.

We upgrade our forecasts by ~13+14% in FY27-28F, reflecting our expectations for SKS to continue building on strong forward levels of work in hand / BAU run-rate into FY27+. We retain our ACCUMULATE rating with a revised PT of $6.70.

The post Morgans gives its verdict on these small-cap ASX shares appeared first on The Motley Fool Australia.

More reading

• Up nearly 300% in a year, this ASX stock just hit another record high
• Morgans just placed buy ratings on these ASX materials stocks

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

NextDC Ltd (ASX: NXT) shares have been frozen all week. Shares closed last Friday trading for $14.12 each and have remained there through to market close on Tuesday.

But that’s going to change when the market opens on Wednesday.

As you may be aware, shares in the S&P/ASX 200 Index (ASX: XJO) data centre operator and developer entered a trading halt before market open on Monday.

Management requested the pause in trading prior to releasing the results of institutional equity raising.

That update should be out before the ASX opens this morning. Investors will then learn more details regarding how much capital NextDC is raising and how it plans to use the new funds.

Which brings us back to our headline question…

Should you buy NextDC shares today?

Last week, before NextDC shares entered a trading halt, Red Leaf Securities’ John Athanasiou released a bullish note on the ASX 200 tech stock (courtesy of The Bull).

“Australia’s leading data centre operator provides connectivity and colocation services to cloud, enterprise and government clients across Australia and the Asia Pacific,” he said.

Citing the first reason he’s optimistic on the company’s outlook, Athanasiou said, “Its network of certified facilities underpins critical digital infrastructure amid surging demand for cloud, artificial intelligence and high-performance computing.”

As for the second reason you might want to buy NextDC shares today, he added, “NextDC recently launched a $1 billion hybrid securities offer to fund expansion. A strong forward order book reflects institutional confidence in its long-term growth.”

The company announced the hybrid securities deal on 7 April. NextDC CEO Craig Scroggie said the deal “represents another step toward NextDC delivering on a material step-change in the scale of our business”.

Rounding off with the third reason the stock looks well placed to outperform, Athanasiou concluded:

The company continues to build new facilities and sign strategic partnerships, positioning it to capture structural tailwinds in digital transformation and infrastructure demand.

What else has been happening with the ASX 200 tech stock this week?

Although NextDC shares have been frozen since Friday, it’s been a busy week for the data centre company.

On Monday, the company released an operational update revealing strong growth metrics over the three months to 31 March.

Among the highlights likely to pique investor interest, NextDC a 60% increase in its contracted utilisation to 667 megawatts (MW). The company revealed that its forward order book had grown by 83% to 544MW.

And NextDC reaffirmed the its full year FY 2026 revenue and underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance to be in the range of $230 million to $240 million.

The post 3 reasons to buy NextDC shares today appeared first on The Motley Fool Australia.

More reading

• 2 ASX tech shares to buy as sector rockets back: experts
• NextDC vs Wesfarmers shares: Which is a buy?
• Leading brokers name 3 ASX shares to buy today
• Why NextDC, Viva Energy and NAB shares are catching investor interest on Monday
• NextDC rally comes to a halt. Here’s what just dropped

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.

I believe some of the best investment opportunities tend to show up after a sell-off.

When quality companies fall a long way from their highs, the starting point changes. That is where I start paying closer attention.

Here are five oversold ASX shares I would be looking at before the end of April.

CSL Ltd (ASX: CSL)

CSL is down more than 50% from its highs, which is a big move for a biotech company of this quality.

The business itself still has strong foundations. CSL Behring remains a leader in plasma therapies, and demand for those treatments continues to build over time.

What has changed is the price. After such a large pullback, I think CSL shares are starting to look much more interesting for long-term investors. If the company can rebuild momentum, this could be one of those periods that looks like an opportunity in hindsight.

Breville Group Ltd (ASX: BRG)

Breville has pulled back around 20%, which has taken some pressure out of its valuation.

This is a business that has successfully expanded outside Australia, and that is still driving its growth today. Its products continue to resonate in key markets like the US, which supports that trend.

At a lower share price, I think the setup looks more balanced. It still has room to grow, but you are no longer paying the same premium as before.

Xero Ltd (ASX: XRO)

Xero has fallen more than 50% from its highs alongside the broader sell-off in software stocks due to artificial intelligence (AI) disruption concerns.

The long-term shift toward cloud-based accounting is still playing out, and Xero remains one of the key platforms in that space.

And while AI will always be a risk, I think those concerns may be overstated and Xero still has many years of growth ahead. And after such a sharp decline, I think the risk-reward looks more favourable than it has in a long time.

WiseTech Global Ltd (ASX: WTC)

WiseTech is down more than 60% from its peak, which is a significant reset.

Its CargoWise platform is already embedded in global logistics, which gives it a strong position in how goods move around the world.

At this level, I think the sell-off is worth paying attention to. This is still a business with a large runway, but it is now being priced very differently to where it was at its peak.

Catapult Sports Ltd (ASX: CAT)

Catapult has pulled back close to 60% from its highs despite continuing to deliver strong results.

The sports technology business has been shifting toward a subscription-based model, which should support more consistent revenue over time.

I think the interesting part here is how the company is evolving. As data becomes more important in sport, Catapult has a chance to deepen its role with teams rather than just expand its customer base.

At this much lower share price, I think it is one ASX share that could deliver strong returns if it continues to execute successfully.

Foolish takeaway

A big pullback does not guarantee a good investment, but it can change the starting point.

These ASX shares all have strong growth potential and are now trading well below their previous highs. That is why I think they are worth a closer look before the end of April.

The post 5 oversold ASX shares to buy before the end of April appeared first on The Motley Fool Australia.

More reading

• Still down 40% over the past year, how high could WiseTech shares recover?
• Why I don’t own Telstra shares (yet)
• 2 ASX tech shares to buy as sector rockets back: experts
• 2 ASX growth stocks to buy now and hold until 2036
• Why WiseTech shares could rise 70%

Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Catapult Sports, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Catapult Sports, WiseTech Global, and Xero. 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.

Building a passive income stream from ASX dividend shares often means choosing individual companies and monitoring their payouts.

But if you’re not a fan of stock picking, don’t worry. There is a simpler approach. Exchange traded funds (ETFs) allow investors to access a diversified group of income-generating shares through a single investment.

Two ASX ETFs stand out for those focused on dividend income.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first ASX ETF to consider is the Vanguard Australian Shares High Yield ETF.

It provides exposure to a broad group of ASX shares with higher forecast dividend yields.

It tracks the FTSE Australia High Dividend Yield Index, which focuses on companies expected to pay above-average dividends. The portfolio is diversified, with limits of 40% per industry and 10% per company. It also excludes A-REITs.

The fund includes some of the largest income-generating companies on the ASX. Its top holdings feature names such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Woodside Energy Group Ltd (ASX: WDS), and Telstra Group Ltd (ASX: TLS).

This structure allows investors to access a wide range of dividend-paying shares without relying on a small number of companies. It also offers a low-cost way to build exposure to income across the Australian market.

Betashares S&P Australian Shares High Yield ETF (ASX: HYLD)

Another ASX ETF to consider for passive income is the Betashares S&P Australian Shares High Yield ETF.

It takes a similar approach to dividend investing. It provides exposure to a portfolio of 50 Australian shares with high forecast dividend yields. The fund also applies additional screening to improve the quality of those yields.

This includes filtering out potential dividend traps, such as companies expected to pay unsustainably high dividends or those with elevated volatility relative to their forecast payouts.

The portfolio also includes major ASX names such as BHP, Westpac, ANZ Group Holdings Ltd (ASX: ANZ), and Macquarie Group Ltd (ASX: MQG).

Another positive is that the Betashares S&P Australian Shares High Yield pays income monthly, which may appeal to investors looking for more regular cash flow.

A simpler way to generate passive income

Using ASX ETFs like these removes much of the complexity from dividend investing.

Instead of selecting and managing individual ASX dividend shares, investors can gain diversified exposure to high-yield companies through a single trade.

The post The easy way to buy ASX dividend shares and build passive income appeared first on The Motley Fool Australia.

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• Why this is the best income ASX ETF for retirees
• Own ASX DHHF or other Betashares ETFs? It’s a big day for you!
• Vanguard ETF dividends to be paid today
• 5 excellent ASX ETFs to buy next week

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool Australia has recommended BHP Group and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

National Australia Bank Ltd (ASX: NAB) shares have come back into focus this week after investors reacted to the latest update.

The stock fell 3.60% on Monday to $41.02 following a market release, before stabilising on Tuesday. It finished up 0.46% at $41.21.

That move leaves NAB shares down close to 10% over the past week, pulling them back from recent highs.

The question now is whether this pullback has opened a buying opportunity.

What triggered the recent sell-off?

NAB’s recent update centred on changes to credit provisioning and capital settings ahead of its half-year result.

The bank expects credit impairment charges of around $706 million for 1H FY26. That includes a $300 million increase tied to forward-looking provisions.

Those changes reflect a more cautious view on the economic outlook, with added weight placed on downside scenarios.

Sectors linked to fuel costs and supply pressures were flagged as areas of potential stress.

There were also capital impacts. NAB said its Common Equity Tier 1 (CET1) ratio is expected to fall by around 20 basis points due to market volatility and provisioning changes.

Alongside this, the bank confirmed an accelerated amortisation charge of roughly $1.35 billion tied to software assets.

None of this points to an immediate earnings collapse, but it does shift expectations lower in the near term.

A reset, not a breakdown

The key point is that these changes are largely forward-looking.

NAB is adjusting settings to reflect a more uncertain backdrop rather than reacting to a sudden spike in losses.

The underlying business remains stable.

The bank continues to generate earnings across lending, deposits, and business banking, supported by its scale in the country.

Margins have been supported by higher interest rates, even as competition for deposits has increased.

Credit quality, while expected to soften, is coming off a relatively strong base.

Does the valuation look more attractive?

At around $41, NAB is trading well below its recent peak and closer to the middle of its 52-week range.

The stock also continues to offer a dividend yield above 4%, supported by ongoing profitability.

That setup tends to attract income-focused investors when prices pull back.

The recent decline has not been driven by structural issues in the business. Instead, it reflects a shift in assumptions around risk, provisioning, and capital.

That difference is worth noting when weighing up value.

Foolish bottom line

NAB shares are not without risk in the current environment.

Higher rates, global uncertainty, and pressure on borrowers all point to a more conservative outlook.

Even so, the latest update looks more like a shift in expectations than a change in the business itself.

A pullback of this size in a major bank can start to look more compelling.

The opportunity comes down to how investors weigh near-term earnings pressure against longer-term stability.

The post NAB shares: Are they cheap enough to buy after the latest drop? appeared first on The Motley Fool Australia.

More reading

• Why Monash IVF, NAB, Viva Energy, and Worley shares are falling today
• Why NextDC, Viva Energy and NAB shares are catching investor interest on Monday
• Why are NAB shares sinking 4% on Monday?
• National Australia Bank strengthens balance sheet ahead of 1H26 results
• In the midst of economic turmoil, what does Morgan Stanley say the ASX banks are worth?

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.

Telstra Group Ltd (ASX: TLS) shares finished Tuesday down 0.19% to $5.33.

That leaves the stock hovering near the top end of its recent range, after a steady run through 2026.

Over the past 12 months, the shares are up roughly 20%, supported by a mix of defensive demand and improving earnings visibility.

It is the kind of price action that usually draws attention.

But despite that, I do not currently own Telstra shares.

Here is why.

A quality business, no question

Telstra is about as predictable as it gets on the ASX.

It operates critical telecommunications infrastructure across Australia, with millions of mobile, broadband, and enterprise customers. That reach supports recurring revenue, pricing power, and steady cash flow.

Recent price increases across mobile plans are also starting to come through. With a relatively sticky customer base, those changes tend to lift margins without a drop in demand. That has been a key driver behind the latest run in the share price.

On top of that, Telstra remains a reliable dividend payer. The stock is yielding around 3.7%, with a payout backed by stable cash generation.

The underlying business is doing what it needs to do.

So why not buy?

The issue is not the business. It comes down to valuation.

At around $5.30 per share, Telstra is trading close to its 52-week high. Much of the stability, pricing power, and income appeal already appears reflected in the price.

That leaves little room for error.

Growth is also part of the picture. Telstra is not a high-growth business. Earnings tend to move higher over time, but not quickly. That normally leads to steady share price gains rather than sharp re-ratings.

At current levels, it looks more like a fully priced defensive than a discounted entry.

That is what’s holding me back.

Where I see better opportunity

Right now, I am more focused on stocks that have been sold off despite holding up operationally.

That is where I tend to look for upside.

One example is WiseTech Global Ltd (ASX: WTC). The business continues to grow, but the share price has pulled back rapidly from earlier highs.

That gap between performance and price is what stands out.

If sentiment turns, the re-rating can happen quickly, rather than relying on slow earnings growth alone.

What would change my view

I would not rule out owning Telstra.

But I would want a different entry point.

A pullback would improve the risk-reward, especially given the defensive profile of the business. That could come through broader market weakness or a shift in sentiment.

At the right price, Telstra could still play a role as a core portfolio holding.

Right now, it is not quite there.

Foolish takeaway

Telstra remains a high-quality, income-generating business with a strong position in the market.

But that alone is not enough.

At current levels, the shares look fairly priced, with less upside than other opportunities.

For now, I am staying on the sidelines and waiting for a better entry point.

The post Why I don’t own Telstra shares (yet) appeared first on The Motley Fool Australia.

More reading

• Still down 40% over the past year, how high could WiseTech shares recover?
• Stagflation: How to position an ASX stock portfolio
• 5 oversold ASX shares to buy before the end of April
• How to build a second income from ASX shares without taking big risks
• Why WiseTech shares could rise 70%

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

The ASX-listed exchange-traded fund (ETF) Global X S&P World Ex Australia GARP ETF (ASX: GARP) is a favourite of mine and offers plenty of positives. As a long-term investment, I think it could be one of the best ideas.

Global X may not be as well-known as Vanguard or BetaShares in Australia, but it offers a range of ASX ETFs for Australian investors to buy.

In my view, the GARP ETF could be one of the best funds to buy for investors hunting for stronger returns. I have that view for a few different reasons.

High-quality growth

One of the most important things to know about this fund is that it uses ‘GARP’ as an investment style. The ‘G’ stands for growth.

But, this fund isn’t just seeking any business that’s growing, it’s trying to own investments that are high-quality.

Instead of leaving judgements about quality and growth to a fund manager to decide, that fund uses filters to find those names.

On the growth side of things, the ASX ETF looks at three-year sales per share growth and earnings per share (EPS) growth figures. Both sales and profit growth are important, so it’s good to see that both metrics are being considered.

Quality is considered by looking at the companies’ financial leverage (meaning debt levels) and the return on equity (ROE). It’s good to know that the company’s growth is not being artificially boosted by unsustainable debt levels. These businesses are purely generating strong profits for shareholders because they have great business models, not because they’re using lots of debt.  

Reasonable price

The rest of the strategy employed by the GARP ETF is the ‘ARP’, which stands for ‘at a reasonable price’.

In other words, the businesses are generating pleasing levels of growth, but we’re not paying too much to invest in that growth.

How does the fund decide whether an investment is good value or not? It’s by looking at the earnings-to-price ratio, which is another way of considering the price/earnings (P/E) ratio.

Therefore, the ASX ETF is looking for businesses with an attractive P/E ratio relative to its growth rate, which some investors call the PEG ratio.

At the end of March, some of the largest positions in the portfolio included Nvidia, Eli Lilly, Alphabet, Meta Platforms, Berkshire Hathaway and Microsoft.

Useful diversification

While the biggest positions in the portfolio are unsurprisingly US companies, it’s important to know that this ASX ETF has a global portfolio of 250 companies across multiple countries and sectors. In other words, it can provide global diversification and it’s not too focused on one country or one sector.

For me, this can be an all-in-one investment that ticks virtually all the boxes that an Australian investor could want.

The post Is this going to be the best-performing ASX ETF for the next decade? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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.