Author: openjargon

The S&P/ASX 200 Index (ASX: XJO) is ending the week in a subdued manner. In afternoon trade, the benchmark index is down 0.6% to 8,634.4 points.

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

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is down 1.5% to $161.30. This may have been driven by a broker note out of Morgan Stanley this morning. According to the note, the broker has retained its underweight rating on CBA’s shares with a reduced price target of $125.00. The broker has named Australia’s largest bank as its least favoured major bank. Morgan Stanley’s price target implies potential downside of 22% from current levels.

PLS Group Ltd (ASX: PLS)

The PLS share price is down over 3% to $5.93. Investors have been selling the lithium miner’s shares despite there being no news out of it today. However, it is worth noting that most lithium stocks are falling on Friday. In addition, PLS recently reported some heavy insider selling, as we covered here.

Resolute Mining Ltd (ASX: RSG)

The Resolute Mining share price is down 6% to $1.12. Investors have been selling the gold miner’s shares today after it released a disappointing update on its Syama operation. That update revealed that production during the second quarter of FY 2026 has been impacted by logistical and supply chain disruptions. As a result, Resolute Mining now expects Syama’s second-quarter gold production to be around 30,000 ounces. This is well short of its original expectation of 40,000 ounces to 45,000 ounces. The company’s CEO, Chris Eger, said: “Recent performance at Syama has been below expectations despite the significant changes implemented in Mali. These issues are well understood, and our focus is on stabilising operations and restoring consistent performance. Importantly, the broader business continues to perform well. The Company remains cash generative, supporting ongoing investment in growth, including the Doropo development, which continues to progress to plan.”

Silver Mines Ltd (ASX: SVL)

The Silver Mines share price is down 3.5% to 13.5 cents. This morning, this silver developer announced that it has entered into an option underwriting agreement with Petra Capital to fully underwrite the exercise of unlisted options. It said: “The Company has decided to enter into the Underwriting Agreement for the purpose of providing certainty that it will raise additional funds of $7,556,782.”

The post Why CBA, PLS, Resolute Mining, and Silver Mines shares are dropping today appeared first on The Motley Fool Australia.

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

With only a few hours left before Friday’s closing bell, the S&P/ASX 200 Index (ASX: XJO) is down 1.3% for the week, but don’t blame these three surging ASX 200 stocks.

One of this week’s top performers is a global wine company, one is a technology-linked health imaging company, and the third is heavily involved in the AI revolution.

So, which ASX shares are leaping higher in this week’s slumping market?

Read on!

Treasury Wine Estates Ltd (ASX: TWE)

Our first outperformer is Treasury Wine.

Shares in the global wine company closed last week trading for $4.24. At the time of writing, Treasury Wine shares are changing hands for $4.63 apiece. That sees this ASX 200 stock up 9.2% for the week.

Treasury Wine shares closed up an impressive 13.1% on Thursday after the company announced details of its five-year transformation plan at its 2026 Investor Day.

Investors reacted positively, with the company aiming for $100 million in annualised cost reductions.

Management provided full-year FY 2026 earnings before interest, tax, and significant items (EBITS) guidance in the range of $480 million to $490 million.

Treasury Wine also said it expects to return to revenue growth from FY 2028.

Megaport Ltd (ASX: MP1)

Megaport shares are also enjoying a strong run, with today marking only the second day this week that the ASX 200 stock has traded.

Shares in the AI-focused network services company closed on Monday trading for $16.61.

Megaport shares entered a trading halt on Tuesday while the company conducted a $518 million capital raising via a fully underwritten entitlement offer.

This morning, the stock recommenced trading on the ASX after announcing that it had successfully completed the institutional part of that capital raising.

Management expects the upcoming retail component of the capital raise to bring in another $309 million. The company plans to use the funds, in part, to pursue its global growth ambitions following a series of new AI infrastructure contracts.

“This exceptional outcome reflects the strong support of our institutional shareholders and their confidence in our strategy,” Megaport CEO Michael Reid said.

Following this news, the Megaport share price is up 8.4% today at $18.01. That sees shares up 16% since last Friday’s close.

Which brings us to…

Pro Medicus Ltd (ASX: PME)

Pro Medicus shares are lifting off this week following two new contract announcements.

Shares in the health imaging company closed last Friday trading for $132.26. At the time of writing, shares are swapping hands for $163.82.

That puts this ASX 200 stock up 23.9% in this week’s sinking market.

Pro Medicus shares closed up 9.2% on Monday after the company reported inking a new five-year contract renewal with Allegheny Health Network, valued at $28 million.

“AHN has now renewed for a third contract term, reflecting the strength of our long-standing partnership and the value our platform continues to deliver across their organisation,” Pro Medicus CEO Sam Hupert said.

The post 3 ASX 200 stocks racing higher in this week’s slumping market appeared first on The Motley Fool Australia.

More reading

• Up 183% since April, why the Megaport share price is tipped to keep charging higher
• ‘Game on!’ Why Megaport shares are rocketing 27% today
• Megaport completes $518m institutional entitlement offer
• 5 things to watch on the ASX 200 on Friday
• 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 positions in and has recommended Megaport and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Civmec Ltd (ASX: CVL) has given investors another reason to chase its already strong share price run.

The engineering and construction group climbed to a new record high of $1.84 during early morning trade after releasing an order book update.

At the time of writing, the Civmec share price is up 5.44%. By comparison, the S&P/ASX All Ords Index (ASX: XAO) is hovering 0.64% lower at 8,860 points.

The move adds to a big 12 months for shareholders, with Civmec shares now up around 75% over the past year.

The stock has also gained 26% in 2026, helped by strong demand across resources, infrastructure, energy, and maintenance work.

Let’s take a closer look at the release.

Order book hits record $1.5 billion

According to the announcement, recent contract wins and extensions have taken Civmec’s order book to a record $1.5 billion.

The work comes from several parts of the business, including resources, infrastructure, energy, and maintenance.

Civmec said the new orders are expected to be delivered across FY27 and FY28.

Iluka and Perth Park contracts in focus

A large part of the update comes from work tied to Iluka Resources Ltd (ASX: ILU) and the Perth Park project.

At Iluka’s Eneabba Rare Earths Refinery in Western Australia, Civmec has secured extra structural, mechanical, piping, electrical, and instrumentation installation work.

The new scope builds on work Civmec was already doing at the site.

It also covers installation across key refinery process areas, with the project expected to support Iluka’s move toward commissioning from CY2027.

Civmec also pointed to the Perth Park project at Burswood Peninsula.

The alliance between Civmec, Seymour Whyte, and Aurecon has now been awarded the major construction contract.

The project runs from planning and design through to construction delivery, with the precinct expected to be substantially complete in late 2027.

Civmec said only its share of the alliance contract has been included in the order book.

Foolish Takeaway

Civmec is not a stock every ASX investor will know well, but the share price run is getting harder to miss.

The company provides construction and engineering services to the energy, resources, infrastructure, marine, and defence sectors.

After its latest rise, Civmec has a market capitalisation of about $937 million. It also trades on a price-to-earnings (P/E) ratio of about 25 times.

That means the stock is no longer trading like an overlooked small cap. But investors will now want to see how much of that order book can turn into profit.

The post This ASX stock just hit a record high. Here’s why investors are buying appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Civmec, LGI, Dalrymple Bay Infrastructure shares
• Are these ASX small-cap shares a buy, hold or sell according to Bell Potter?
• Why is this ASX industrial stock charging higher today?

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.

The Megaport Ltd (ASX: MP1) share price is on fire today.

Shares in the S&P/ASX 200 Index (ASX: XJO) network services company closed on Monday trading for $16.61.

The ASX 200 tech stock then entered a trading halt on Tuesday while Megaport conducted an $827 million capital raising via a fully underwritten entitlement offer.

This morning, the stock recommenced trading on the ASX after announcing that it has successfully completed the institutional component of that capital raising.

Following this news, the Megaport share price is up to $18.13 in late morning trade on Friday. That sees shares up 9.1%, despite the broader 0.6% decline on the ASX 200 today.

It also means that investors who managed to snap up shares at the intraday lows of $6.40 on 13 April are now sitting on gains of 183.3%. That’s enough to turn a $6,000 investment into $16,997. In less than two months!

We’ll look at Citi’s latest forecast for the surging tech stock below.

But first…

What did the ASX 200 tech stock announce?

The Megaport share price is surging after the company said it raised approximately $518 million from its institutional entitlement offer.

The company will issue approximately 36.2 million new shares at $14.30 each. That’s 13.9% below Monday’s closing price, and 21.1% below the current price.

Management said the company will proceed with the retail offer, which will provide retail stockholders the opportunity to invest at the same discounted institutional offer price. The company expects the retail component of the capital raise to bring in $309 million.

The company plans to use the new capital to fund its global growth plans. On Monday, for example, Megaport announced that it had signed four new AI infrastructure contracts valued at $459 million.

“This exceptional outcome reflects the strong support of our institutional shareholders and their confidence in our strategy,” Megaport CEO Michael Reid said.

Looking ahead, Reid added:

By combining Megaport’s global footprint of more than 1,100 data centres in 31 countries with Latitude.sh’s platform capabilities, we are building a Globally Distributed AI Inference Cloud designed to support AI at global scale.

We now look forward to our retail shareholders having the same opportunity to participate on a pro rata basis. We’re just getting started. Game on!

What is Citi forecasting for the Megaport share price now?

Following a series of recent AI contract wins, and with Megaport’s strengthened balance sheet leaving it well-funded to take on more AI-related contracts, Citi upgraded its target for the Megaport share price by 41% to $22.10 (courtesy of The Australian Financial Review).

That represent a further potential upside of almost 22% from current levels.

The broker foresees strong earnings growth for the ASX 200 tech share, boosting its FY 2027 earnings before interest, taxes, depreciation and amortisation (EBITDA) forecast for the company by 73% to around $255 million.

The post Up 183% since April, why the Megaport share price is tipped to keep charging higher appeared first on The Motley Fool Australia.

More reading

• ‘Game on!’ Why Megaport shares are rocketing 27% today
• Megaport completes $518m institutional entitlement offer
• 5 things to watch on the ASX 200 on Friday
• Up 148% since April, should I still buy Megaport shares today?
• How high does Macquarie think Megaport shares will go?

Citigroup is an advertising partner of Motley Fool Money. 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 Megaport. 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.

G50 Corp Ltd (ASX: G50) has piqued the analyst team at Morgans, which has initiated coverage with a speculative buy recommendation.

Drilling success builds confidence

The company’s flagship asset is the Golconda project in Arizona, where it recently reported that drilling had confirmed “significant mineralisation” over 1.3km and at depths of up to 400m.

Some of the more significant results included 16.8m at 4.34 grams per tonne of gold from 216.4m, and 13.4m at 1.63 grams per tonne of gold and 30.99 grams per tonne of silver from 192.9m.

The company said:

Drilling was highly successful and definitively met the objectives confirming strike, depth and lateral extensions to the known mineralisation at Golconda. Drilling also continued to test the high priority gallium target with all holes reporting significant and consistent shallow intercepts. The continued work on gallium at Golconda supports the company’s strategy for potential future development of a strategic domestic gallium supply, integrated within a primary precious and base metals project.

G50 Managing Director Mark Wallace said the drilling almost doubled the drill-tested strike length at Golconda.

He said:

Identifying significant precious metal intercepts within parallel veins is an exciting discovery for all involved. Golconda is a large-scale, polymetallic gold-silver-zinc project with significant potential. Growing geopolitical and commercial pressures are increasing interest in our Arizona-located project. Based on current mineralogy and metallurgical work, the G50 team is well-positioned to discover and potentially supply the Western world with secure strategic and precious metals.

Shares in this ASX gold developer are looking cheap

The Morgans team agreed that the project could meet the demand for strategic minerals.

The team said in their note to clients:

A US-centric asset portfolio (Golconda and White Caps) provides growing exposure to both precious metals (gold and silver) and critical metals gallium and antimony, both of which are being increasingly recognised as strategic commodities by the US given their importance across semiconductor, AI and defence related supply chains. We view the underlying gold exploration potential at Golconda to be capable of supporting meaningful resource growth over time, while the greater gallium and antimony exposure may provide optionality from both a strategic funding and permitting perspective as the US increasingly prioritises domestic critical mineral supply chains independent of China.

Morgans has a price target of $2.14 on G50 shares, compared to the current price of 79.5 cents.

The shares have traded as low as 11 cents and as high as $1 during the past 12 months.

G50 Corp is valued at $162 million.

The post This US-focused, ASX gold developer could surge more than 150%, Morgans says appeared first on The Motley Fool Australia.

More reading

• Up 183% since April, why the Megaport share price is tipped to keep charging higher
• Up 40%! What is Bell Potter saying about this popular ASX stock?
• 3 amazing ASX growth shares to buy with $15,000
• This ASX copper company could surge more than 300%: broker
• 3 compelling reasons to buy Origin Energy shares today

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.

Kogan.com Ltd (ASX: KGN) shares have been strong performers in recent months.

Thanks to a marked improvement in the ASX stock’s performance, investors have bid the ecommerce company’s shares almost 40% higher since the middle of February.

Does this mean it is too late to invest? Let’s see what Bell Potter is saying about the company.

What is the broker saying?

Bell Potter was pleased with Kogan’s recent trading update, highlighting that its performance was tracking ahead of expectations. It said:

Kogan.com (KGN)’s FY26 to-date trading update (Jul-Apr) from a gross sales and adjusted EBITDA perspective was tracking ahead of Consensus/BPe (BPe below Consensus). KGN delivered gross sales growth of 18% for the first 10 months, while Adjusted EBITDA of $38m at an 8.5% margin (% of revenue) remained towards the top end of the margin guidance range of 6-9% for FY26.

The Feb-Apr non-seasonal period appears to have grown at 14% in gross sales at Kogan.com (Aus), which we see as a healthy outcome while cycling 22% comps in the pcp (based on BPe). NZ based Mighty Ape (MA) having completed majority of restructuring initiatives post-optimisation of the platform and inventory continues to expect reaching profitability on a run-rate basis in 2H26.

In response, the broker has boosted its earnings estimates. However, it has only done so conservatively given the importance of the EOFY period. It adds:

We make changes to our gross sales (GS), gross margin and EBITDA assumptions for Kogan.com factoring in the beats and the current run-rate, however with some conservatism for the EOFY seasonal period in May/Jun which cycles +27% GS in the pcp. With group revenue growth to-date tracking in line with BPe +6% for FY26, our revenue estimates remain largely unchanged as we factor in some cautiousness ahead given the current weak consumer spend environment. Our medium-term Adjusted EBITDA margins remain broadly unchanged towards the bottom end of KGN’s target margin range of 8-12%. The net result sees our NPAT forecasts +18%/+6%/+2% for FY26/27/28e.

Should you buy this ASX stock?

According to the note, Bell Potter has retained its hold rating on Kogan’s shares with an improved price target of $4.20 (from $3.80).

This implies only modest upside from its current share price of $4.11.

Commenting on its recommendation, the broker said:

Our PT +11% to $4.20 (prev. $3.80) driven by earnings upgrades and a roll-forward of earnings within our relative valuation (FY27e EBITDA), while our 10x target multiple remains unchanged. While KGN has seen beats in both 1H and 2H to-date, we remain cautious on the FY27 period across our overall Consumer Discretionary coverage to see some downside risk to the current growth rate in optimising for EBITDA margins within KGN’s target range of 8-12% in a challenging and competitive e-commerce landscape. We continue to view EBITDA margins as highly sensitive to the investment into sustaining the GS/customer/subscriber growth. At our revised PT of $4.20 the total expected return is <15% so we maintain our HOLD rating.

The post Up 40%! What is Bell Potter saying about this popular ASX stock? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: IPD, Kogan, Rio Tinto shares
• 5 ASX shares set to soar 40% to 80% in 12 months: experts
• Why this ASX retailer just surged 19% on a strong May business update
• Why Fisher & Paykel Healthcare, GR Engineering, Kogan, and Wesfarmers shares are pushing higher
• Guess which ASX All Ords share is rocketing 20% on big news

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

Are you a fan of growth shares and have $15,000 to put to work?

Well, brokers are bullish on the three ASX growth shares below, which could make them worth a closer look this month. Here’s what you need to know:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville.

Breville has turned kitchen appliances into a global premium brand. That may sound simple, but it is not easy to do. Consumers can buy cheap alternatives in almost every category Breville operates in, yet the company has built a reputation that allows it to compete on design, quality, and performance.

Its strength is not just one product. Coffee machines, ovens, food preparation, and other categories give Breville multiple ways to grow across different markets.

The company is also still early in its global opportunity. It has already proven that its brand can travel, but there remains room to deepen its presence in North America, Europe, and other regions.

Morgans is bullish on the company. It recently put a buy rating and $36.75 price target on its shares.

NextDC Ltd (ASX: NXT)

Another ASX growth share that could be worth buying is NextDC.

NextDC owns and develops data centres. These are becoming a critical part of the modern economy as companies need more computing power, storage, connectivity, and access to cloud platforms.

The next wave of demand could be even more powerful. Artificial intelligence (AI) is increasing the need for high-performance digital infrastructure, and many organisations will need more capacity to manage the workloads that come with it.

NextDC is investing heavily to meet this demand. That can weigh on near-term earnings and cash flow, but it also gives the company a larger platform to grow from over the next decade.

Ord Minnett is a fan of NextDC. It has a buy rating and $21.50 price target on its shares.

Xero Ltd (ASX: XRO)

A third ASX growth share for investors to consider is Xero.

Xero has spent years building a platform that small businesses rely on to manage their finances. But the long-term opportunity is not just accounting software.

Small businesses often have fragmented systems for invoicing, payroll, payments, reporting, tax, and adviser communication. Xero’s opportunity is to bring more of that work into one connected platform.

That is important because time is one of the most valuable resources for small business owners. Software that removes admin tasks, improves visibility, and helps businesses make better decisions can become very sticky.

The company also has a large international runway. Its growth in markets such as the United Kingdom and North America could be important if it continues increasing customer numbers and revenue per user.

Macquarie is very bullish and has an outperform rating and $235.80 price target on Xero’s shares. This is almost triple its current share price.

The post 3 amazing ASX growth shares to buy with $15,000 appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 tech shares to buy now: expert
• The Anthropic IPO could be the next big catalyst for ASX AI infrastructure stocks
• Breville shares could be the most underrated consumer shares on the ASX right now
• Why Macquarie Technology is one of the most interesting AI infrastructure plays on the ASX
• Can you turn $20,000 into $100,000 with ASX shares?

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

Austral Resources Ltd (ASX: AR1) this week delivered a major update on its copper mining and processing plans, as the company progresses its ambition to become a major producer over the next year or so.

The team at Shaw and Partners has examined the company’s latest announcement and has reiterated a bullish share price for the company, which I’ll get to later.

First, let’s look at what the company announced this week.

Major progress

Austral said in a statement to the ASX that the refurbishment plans at its Rocklands processing facility in Queensland were progressing on schedule and on budget.

The company said it had “focused on a disciplined and technically driven restart strategy for its Eastern operations”, which included bringing in consultants who were able to simplify the processing flowsheet.

As the company said:

That work quickly identified a simplified and conventional processing pathway centred around the replacement of the existing three-stage cone crushing circuit with a single SAG mill and pebble crusher configuration. The redesigned circuit reflects Austral’s strategic focus on the efficient production of high grade copper concentrate and removes complexity associated with the previous flowsheet that contemplated secondary product streams, including magnetite, pyrite and native copper recovery.

Austral said it had now purchased an as-new SAG mill for Rocklands, which was expected to be delivered to site by late July.

The company said:

Securing a suitable SAG mill early in the refurbishment process removes one of the most significant schedule risks associated with concentrator restart projects and provides confidence in the Company’s targeted commissioning timeline.

Austral is targeting the processing of three million tonnes of ore per year through the newly refurbished processing facilities, starting in mid 2027.

The company has already started mining at its Western operations, with the majority of that oxide ore to be processed through the company’s Mt Kelly facility.

Austral Resources Chief Operating Officer Shane O’Connell said:

The Rocklands refurbishment continues to progress on schedule and on budget, with key milestones already achieved, including the completion of the front-end circuit redesign, acquisition of the SAG mill and commencement of detailed engineering activities. Our focus has been on developing a simpler, lower-risk and capital-efficient processing circuit that maximises copper concentrate production while leveraging the substantial infrastructure already in place at Rocklands. With engineering progressing, major equipment secured and site works planned to commence in Q3 2026, we remain confident in delivering the Rocklands restart on time and on budget.

Shares looking cheap

Shaw and Partners said in their note to clients that Austral was well-placed.

With Rocklands on track for a mid-2027 restart, Lady Loretta finalised, $83m in net cash and copper at all-time highs, Austral Resources is building one of Australia’s most compelling copper growth stories.

Shaw and Partners has a price target of 42 cents on Austral shares compared to 8.8 cents currently. The company is valued at $214.6 million.

The post This ASX copper company could surge more than 300%: broker appeared first on The Motley Fool Australia.

More reading

• One broker is tipping this ASX copper explorer to jump more than 300%

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.

Origin Energy Ltd (ASX: ORG) shares are edging lower today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy provider closed yesterday trading for $10.85. In morning trade on Friday, shares are changing hands for $10.81 apiece, down 0.4%, roughly in line with the 0.4% losses posted by the benchmark index at this same time.

Taking a step back, the stock is up 1.9% over the past 12 months, just beating the 1.3% one-year gains posted by the ASX 200.

But we should note that the past year also saw the company pay out 60 cents a share in fully-franked dividends. At current prices, Origin Energy shares trade on an 5.6% fully-franked trailing dividend yield.

Now, here’s why Catapult Wealth’s Dylan Evans believes the Aussie energy provider is well-placed to outperform in the year ahead (courtesy of The Bull).

Should I buy Origin Energy shares today?

“Origin is a key player in Australia’s energy supply chain,” Evans said.

Citing the first reason he has a buy recommendation on Origin Energy shares, he noted:

Broader energy supply disruptions caused by the conflict in Iran are likely to be a net positive for Origin. The company’s gas will become more appealing to Asian consumers when compared to Middle Eastern competitors.

Then there’s the company’s recent sales growth.

“Electricity sales volumes in the March quarter were up 4% on the prior quarter,” Evans said.

And the third compelling reason you might want to buy the ASX 200 energy stock today is its promising long-term outlook.

Evans concluded, “Longer term, Origin is positioned to benefit from electrification and its energy security.”

What’s been happening with the ASX 200 energy share?

Origin Energy reported its half-year results (H1 FY 2026) on 12 February.

Underlying profit of $593 million was down from $924 million in the prior corresponding period. And underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $1.59 billion were down from $1.93 billion.

However, underlying EBITDA of $860 million from the company’s Energy Markets business was up $122 million year on year.

This saw the company upgrade its Energy Markets’ full-year underlying EBITDA guidance to between $1.55 billion and $1.75 billion, driven by the improved electricity business performance.

Investors responded to the update by sending Origin Energy shares up 3.9% on the day.

Following the company’s third-quarter update, released on 27 April, Origin Energy CEO Frank Calabria highlighted the ongoing strength of its Energy Markets business.

Calabria said:

In Energy Markets, Origin continued to grow its share of Australia’s data centre market, and we’re well positioned to support the further growth in demand from this sector through grid connections, long-term renewable contracts, and on-site solar and batteries.

The post 3 compelling reasons to buy Origin Energy shares today appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Origin Energy, Megaport, NAB shares
• Guess which ASX 200 share is jumping 17% on earnings guidance upgrade
• Experts name BHP and these ASX 200 shares to buy this week
• Buy, hold, sell: Mineral Resources, IAG, Origin Energy shares
• 5 ASX 200 shares downgraded by brokers this week

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.

Becoming rich from ASX shares is possible, but it does not usually happen quickly.

There will always be stories of investors who picked the perfect small-cap ASX stock at the perfect time. But for most people, a more realistic path is much simpler.

It involves investing regularly, owning quality assets, reinvesting dividends, and giving compounding enough time to work.

That may not sound exciting, but it can be extremely powerful.

Start with consistency

The first step is getting money into the market regularly.

This could be $200 a month, $500 a month, or more depending on someone’s financial position. The exact amount matters less than the habit.

Regular investing also helps remove some of the pressure of market timing. Investors will buy during strong markets, weak markets, and everything in between. This is known as dollar-cost averaging.

It does not guarantee a profit or protect against losses, but it can make the process easier to stick with.

Own quality businesses

The next step is deciding what to buy.

One approach is to focus on high-quality ASX shares with strong market positions, reliable earnings, and long growth runways. Companies such as Wesfarmers Ltd (ASX: WES), Macquarie Group Ltd (ASX: MQG), and REA Group Ltd (ASX: REA) are examples of businesses that have created significant wealth for shareholders over long periods.

Another option is to use exchange traded funds (ETFs). These can provide exposure to hundreds or even thousands of shares in a single trade, which can be helpful for investors who do not want to pick stocks.

The key is diversification. Building wealth should not depend on one company, one sector, or one idea going perfectly.

Let dividends do more work

Dividends can play a role in long-term wealth creation.

Many ASX shares pay dividends, and some also come with franking credits. Investors who do not need the income immediately can reinvest those dividends to buy more shares.

Over time, those extra shares can generate their own dividends. This creates a compounding effect, where returns start producing more returns.

In the early years, the progress can feel slow. But as the portfolio grows, compounding can become much more noticeable.

Time is your friend

The biggest advantage some investors have is time.

If an investor put $500 a month into ASX shares and achieved an average annual return of 10%, they could build a portfolio worth more than $1 million after 30 years.

That return is broadly in line with long-term share market averages, but it is not guaranteed. Some years will be strong, while others will be weak or even negative.

The main thing is staying the course when markets fall. Selling during downturns can interrupt compounding and turn temporary volatility into permanent damage.

Overall, becoming rich from ASX shares is about making sensible decisions repeatedly, staying diversified, and allowing time to do the heavy lifting.

The post How to become rich by investing in ASX shares appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares Warren Buffett would probably love right now
• 3 ASX defensive stocks to buy while sharemarkets are volatile
• 5 ASX dividend shares to buy with $5,000 this month
• Why is everyone talking about Wesfarmers shares this week?
• How combining superannuation and ASX shares can set you up for retirement better than property

Motley Fool contributor James Mickleboro has positions in REA Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie 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.