Author: openjargon

Investors searching for quality growth opportunities may want to focus on these three ASX growth shares. They have strong competitive positions, expanding earnings, and long-term growth drivers.

REA Group Ltd (ASX: REA), Aristocrat Leisure Ltd (ASX: ALL), and TechnologyOne Ltd (ASX: TNE) are leaders in their respective markets. They continue to create new opportunities for growth through innovation, scale, and strong competitive advantages.

REA Group: connecting real estate parties

REA Group has built one of Australia’s most powerful digital businesses through its flagship property platform, realestate.com.au. The ASX growth share connects buyers, sellers, renters, and real estate professionals. The company generates revenue from property listings, advertising products, and data services.

REA Group continues to benefit from resilient demand across Australia’s property market. As listing activity improves and agents compete for greater visibility, REA can increase the value of its premium products and drive revenue growth. The company is also investing heavily in artificial intelligence and new digital tools that enhance the customer experience and strengthen engagement across its platform.

What makes REA particularly attractive is its dominant market position. Property seekers naturally gravitate towards the platform with the most listings, while agents want to advertise where the largest audience is located. This powerful network effect has helped the company maintain strong pricing power and industry-leading profitability.

With Australia’s property market remaining highly active over the long term, REA appears well placed to continue delivering attractive earnings growth.

Aristocrat Leisure: global gaming leader

Aristocrat Leisure has evolved into a global gaming and entertainment technology leader. While many investors still associate this ASX growth share with poker machines, it now operates across land-based gaming, social gaming, and online gaming platforms. That gives it exposure to multiple growth markets.

The company continues to invest heavily in developing new gaming content, expanding its technology capabilities, and strengthening its digital operations. This strategy has helped Aristocrat build a diverse portfolio of revenue streams and reduce its reliance on any single segment.

A major competitive advantage is the strength of its intellectual property. Successful game franchises can generate recurring revenue over many years while creating opportunities to expand across different platforms and markets. Combined with its global scale and proven ability to develop hit content, Aristocrat has established itself as one of the highest-quality growth shares on the ASX.

As digital gaming adoption continues to increase worldwide, the company appears well positioned to benefit.

TechnologyOne: mission-critical software developer

TechnologyOne is Australia’s largest enterprise software-as-a-service (SaaS) provider. The ASX growth share develops mission-critical software for government agencies, universities, local councils, and large organisations, helping customers manage everything from finance and payroll to asset management and student administration.

The ongoing transition to its cloud-based SaaS platform has transformed the business. TechnologyOne now generates an increasing proportion of its revenue from long-term recurring subscriptions, providing highly predictable earnings and cash flow.

The ASX tech share continues to win new customers while expanding services to existing clients. It is also investing in artificial intelligence and product innovation to enhance its software offering and strengthen customer relationships. At the same time, its growing presence in the United Kingdom provides an additional avenue for expansion beyond its core Australian market.

TechnologyOne’s combination of recurring revenue, high customer retention, and scalable software economics makes it a particularly compelling growth stock.

The post 3 ASX growth shares to buy next month appeared first on The Motley Fool Australia.

More reading

• These ASX gaming stocks are rebounding. Is it for real?
• How I’d invest $250 a week in ASX shares to aim for $700,000
• How to build an ASX share portfolio that can survive a market selloff
• Why Aeris, Newmont, PLS, and REA Group shares are tumbling today
• How I’d choose the best ASX shares I could hold for 10 years

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

A2 Milk Company Ltd (ASX: A2M) shares are starting the week strongly.

In morning trade on Monday, the infant formula company’s shares are up 7% to $7.20.

This compares favourably to the performance of the ASX 200 index, which is down slightly at the time of writing.

Why are A2 Milk shares jumping?

Investors have been fighting to get hold of the company’s shares this morning after it made a big announcement relating to its China business.

According to the release, A2 Milk has received approval from the State Administration for Market Regulation (SAMR) to transition the two China label infant milk formula (IMF) product registrations that were acquired in connection with the a2 Pokeno facility to a2 branded products.

The company notes that this represents the final step pursuant to the terms of its acquisition of the a2 Pokeno facility for the relevant registrations to be utilised under the a2 brand.

And with regulatory approvals now obtained, it confirmed that it no longer has the right to unwind the acquisition of the a2 Pokeno facility.

In light of this, A2 Milk advised that it expects to launch the new products later this calendar year. This is within existing expectations so there has been no change to the timing or estimated financial benefits provided to the market at the time of announcing the acquisition.

‘A significant milestone’

A2 Milk’s managing director and CEO, David Bortolussi, was pleased with the news. He said:

SAMR approval marks a significant milestone in our China growth strategy and Supply Chain transformation. It supports long-term growth in our core IMF business through market access and innovation, accelerates the development of advanced nutritional manufacturing capability, and captures attractive financial returns through incremental brand contribution and vertical margin capture.

Special dividend incoming

Also giving A2 Milk shares a boost is an update on its special dividend plans.

The company notes that it previously indicated that it would look at declaring a special dividend once the required regulatory approvals were received in connection to its China label registrations.

This morning, it advised that it expects the A2 Milk Board to convene soon with the intent to declare a $300 million special dividend that will be fully franked and unimputed.

The timing of payment and other details will be confirmed in a separate announcement once the special dividend has been declared by the Board.

The post A2 Milk shares jump 7% on big China and special dividend news appeared first on The Motley Fool Australia.

More reading

• a2 Milk Company gets China approval and plans $300m dividend
• Here are the top 10 ASX 200 shares today
• Why A2 Milk, EOS, IDP Education, and SkyCity shares are charging higher today
• 3 ASX stocks UBS rates as a buy right now
• Here are the top 10 ASX 200 shares today

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.

Metcash Ltd (ASX: MTS) shares are in the spotlight on Monday.

In morning trade, the wholesale distributor’s shares are down slightly to $3.16.

This follows the release of the ASX 200 stock’s FY 2026 results.

ASX 200 stock lower on results

For the 12 months ended 30 April, Metcash reported a modest 0.2% increase in revenue (excluding charge-through sales) to $17.35 billion. Including charge-throughs, revenue increased 0.7% to $19.63 billion.

Management notes that this reflects a small decline in Food revenue, which was offset by growth in Liquor and Hardware revenue.

The ASX 200 stock’s underlying EBIT was down 0.8% to $503.7 million due to weakness in the Hardware and Liquor segments.

The Food segment delivered a strong performance in FY 2026, with EBIT increasing 5.4% to $261.8 million.  It highlights that the IGA network remains a core strength, with the large store price gap narrowing to 2.1%, making the network more price competitive than ever. Foodservice & Convenience continued its rapid expansion, supported by the integration of Superior Foods and strong demand from corporate customers.

The Liquor segment posted a resilient result, with revenue increasing 1% to $5.4 billion and market share rising to 32.3%. It notes that segment EBIT was $100.1 million, slightly lower than the prior year due to softer first half trading, but the business delivered a stronger second half as shopper demand for convenience and localised offers remained robust and inflation increased.

Although Hardware & Tools delivered revenue growth of 4.3% to $3.7 billion, EBIT was down 6.3% to $177.3 million. This reflects softer trade conditions for its Hardware retail stores in Victoria and Tasmania, partially offset by continued strength in Total Tools.

On the bottom line, Metcash recorded a 2.4% decline in underlying net profit after tax to $268.8 million. This was largely in line with consensus estimates.

The ASX 200 stock’s Board declared a fully franked final FY 2026 dividend of 9.5 cents per share, which is flat on the prior corresponding period. This brings total dividends for the year to 18 cents per share fully franked, which is in line with FY 2025’s dividends.

Management commentary

Commenting on the results, Metcash’s CEO, Doug Jones, said:

Our FY26 performance demonstrates the strength and resilience of the Metcash business model. Despite mixed trading conditions across our markets, we delivered solid earnings, strong cash generation and continued progress on our long-term strategic priorities. Our scale, our national supply chain, and our deep relationships with independent retailers remain powerful competitive advantages. We now support ~105,000 customers, ~6,300 bannered stores and reach ~95% of Australians – a unique platform that continues to generate resilient, high-quality cashflows.

We are winning with independents because we combine the benefits of scale with the agility and community connection of local ownership. This combination is difficult to replicate and continues to underpin our performance across all pillars.

Outlook

The ASX 200 stock revealed that sales have made a steady start to FY 2027 and are up 1.7% during the first seven weeks. This reflects softer trading conditions in May followed by a clear improvement in June.

Management appears confident it can build on this. It stated:

Metcash enters FY27 with strong momentum across its core businesses. Foodservice & Convenience continues to scale rapidly, Liquor remains resilient with growing market share, and Hardware & Tools is positioned for margin recovery through its strategy reset and as market conditions improve. The Group expects to continue strengthening its competitive advantages, expand its digital and AI-enabled capabilities, and support independent retailers to win in their local communities.

The post ASX 200 stock drops on FY 2026 results appeared first on The Motley Fool Australia.

More reading

• Metcash shares: FY26 profit edges lower, dividend maintained
• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today
• Why might Pro Medicus shares soon be under pressure?
• 2 ASX shares highly recommended to buy: Experts

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.

Diversified industrial and energy company SGH Ltd (ASX: SGH) has announced a $500 million buyback to run for the next 12 months.

The news is likely to add more share price upside to the company, which broker Morgans already has a buy rating on, along with a bullish share price target.

I’ll get to that shortly. First, let’s look at what the company has announced.

Strong balance sheet adds options

SGH said in a statement to the ASX that it would conduct an on-market buyback, starting on about August 11, coinciding with the release of the company’s FY26 results.

The company added:

The buy-back reflects SGH’s disciplined approach to capital management. Following a sustained period of strong operating cash flow and de-leveraging, SGH’s leverage has reduced below its through-the-cycle target of 2.0x (Adjusted Net Debt to EBITDA). The buyback will not constrain SGH’s ability to continue investing in its businesses or to pursue inorganic growth at scale. The program has been sized so that SGH retains substantial balance sheet capacity and the financial flexibility to fund organic investment and to act on material growth opportunities as they arise.

SGH said the final size of the buyback would depend on several factors, including market conditions, “and any unforeseen developments or circumstances that may arise in the course of the buyback”.

Analysts like the medium-term vision

Morgans recently issued a research note to its clients following an investor day held by SGH management.

They said the company set out a medium-term strategy to deliver 10% EBIT growth along with a near doubling of market capitalisation.

They added:

These ambitions are set against a track record of growing organically, while acquiring industrial businesses, improving operational performance and cash generation. SGH takes an entrepreneurial approach to leverage, gearing up to acquire what it perceives as ‘privileged assets’, with operational improvements then driving a quick deleverage.

SGH owns Caterpillar dealer Westrac, equipment hire company Coates, construction materials company Boral, plus stakes in Beach Energy Ltd (ASX: BPT), and Southern Cross Media Group Ltd (ASX: SXL).

It also has a stake in Shell‘s Crux offshore gas project.

Morgans said the company had compounded EBIT at a compound annual growth rate of 18% for more than a decade, aided by its acquisition strategy.

The analyst team at Morgans said future catalysts for the company included first gas from Crux, expected in the first half of FY28, and the group-wide deployment of AI.

They said the company was “trading at a sub-market multiple, with above-market growth”.

Morgans has a price target of $52.75 on SGH shares compared to $43.27 currently.

The post These ASX shares were buy rated even before today’s $500m buyback. How high could they go? appeared first on The Motley Fool Australia.

More reading

• SGH announces $500m buy-back and highlights financial strength
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Flight Centre, SGH, and Navigator Global shares
• This ASX industrials stock could be set to race 20% higher: Expert
• 5 things to watch on the ASX 200 on Monday

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.

The Metcash Ltd (ASX: MTS) share price is in focus after the wholesale distributor reported a steady result for the year ended 30 April 2026, with group revenue up 0.2% to $17.35 billion and underlying EBITDA rising 1.9% to $761.7 million.

What did Metcash report?

• Group revenue increased 0.2% to $17.35bn. Including charge-through sales, total revenue rose 0.7% to $19.63bn.
• Underlying EBITDA increased 1.9% to $761.7m.
• Underlying profit after tax fell 2.4% to $268.8m.
• Net profit attributable to members was $279.1m, down 1.5% year-on-year.
• Fully franked final dividend of 9.5 cents per share declared, bringing total FY26 dividends to 18.0 cents per share.

What else do investors need to know?

Metcash reported good progress across its main business pillars. Its Food division saw EBIT lift 5.4% to $261.8m, with ex-tobacco sales growing 5.4%, though overall revenue was flat due to lower tobacco sales. Liquor revenue ticked up 1.0% to $5.4bn, with EBIT softening to $100.1m. Hardware & Tools delivered 4.3% revenue growth, though EBIT eased 6.3% to $177.3m, reflecting quieter trading conditions in some regions.

The company made a series of acquisitions, including Steve’s Liquor Warehouse and a 75% stake in Holliman’s Rural, expanding its presence in liquor retailing and regional markets. It also completed the integration of its Total Tools and Independent Hardware Group businesses and continued investing in Program Horizon, a long-term technology overhaul.

What’s next for Metcash?

Metcash reports a steady start to FY27, despite softer trading in May 2026 as some customers felt cost-of-living pressures. Conditions have since stabilised, with June trading tracking ahead of last year for both Food and Liquor. Hardware & Tools is showing continued second-half momentum, especially within the Total Tools brand. The business remains focused on improving competitiveness and supply chain capability, with a technology-led future as a goal for FY27 and beyond.

The board maintained its commitment to investing in the network while returning value to shareholders, underscored by the consistent dividend payout.

Metcash share price snapshot

Over the past 12 months, Metcash shares have declined 4%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Metcash shares: FY26 profit edges lower, dividend maintained appeared first on The Motley Fool Australia.

More reading

• ASX 200 stock drops on FY 2026 results
• SGH announces $500m buy-back and highlights financial strength
• AFIC reveals 2026 dividend plans for shareholders
• a2 Milk Company gets China approval and plans $300m dividend
• 5 things to watch on the ASX 200 on Monday

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.

ASX gaming stocks have found their way higher again this month, giving investors some relief after a difficult, volatile start to 2026.

Shares in Aristocrat Leisure Ltd (ASX: ALL) have climbed approximately 6% over the past month, while Light & Wonder Inc (ASX: LNW) has surged around 13% over the same period. By comparison, the S&P/ASX 200 Index (ASX: XJO) has gained just 2.5%.

While both shares have clawed back some of their earlier-year losses, they still have significant ground to make up. Aristocrat remains roughly 33% below its 52-week high, while Light & Wonder is still sitting about 51% beneath its peak.

The question now is whether this latest rally in the two ASX shares marks the start of a sustained recovery or is merely a temporary bounce.

Aristocrat Leisure: Quality business, strong outlook

Aristocrat is one of the world’s largest gaming technology companies, generating revenue through gaming machines, casino systems, and digital mobile games.

The ASX gaming stock has continued to benefit from the resilience of its land-based gaming operations and the growing contribution from its digital segment. Investors have also responded positively to management’s focus on expanding its portfolio of premium gaming content and investing in long-term growth opportunities.

A key strength for Aristocrat is its market-leading position in gaming machines, particularly in North America, where it consistently ranks among the industry’s top suppliers. The company also boasts a strong balance sheet and substantial cash generation, providing flexibility for acquisitions and shareholder returns.

However, risks remain. Consumer spending weakness, slower casino capital expenditure, and regulatory changes across gaming markets could all weigh on future earnings growth. Competition within the mobile gaming sector also remains intense.

Despite these challenges, brokers are incredibly bullish on Aristocrat’s prospects. The majority maintain strong buy recommendations on the ASX 200 stock and believe its share price can continue moving higher over the next 12 months.

Consensus forecasts currently imply potential upside of around 26%, with the most optimistic target price sitting at $69.40 per share at the time of writing.

Light & Wonder: Recovery story gaining momentum

Light & Wonder operates across gaming machines, digital gaming content, and lottery services. The company has spent recent years transforming its business, streamlining operations, and focusing on higher-margin growth opportunities.

Investors appear increasingly confident that this strategy is delivering results. Recent gains in the share price have been supported by ongoing growth in gaming machine placements, strong performance from its digital division, and continued momentum within its lottery operations.

One of Light & Wonder’s biggest strengths is its diversified business model. Unlike many gaming companies that rely heavily on a single segment, the ASX gaming stock benefits from multiple revenue streams across land-based and digital gaming markets.

The main risk facing investors is valuation sensitivity to earnings growth. Any slowdown in gaming demand or weaker-than-expected execution could quickly impact sentiment. Legal and regulatory developments also remain areas investors should monitor closely.

Nevertheless, brokers see substantial upside ahead. Macquarie recently set a $200 price target on the stock, while Bell Potter’s latest 12-month target is $192 per share.

If Light & Wonder were to reach that target range over the next year, it would represent a gain of approximately 50% to 55% from current levels.

The post These ASX gaming stocks are rebounding. Is it for real? appeared first on The Motley Fool Australia.

More reading

• 3 ASX growth shares to buy next month
• How I’d invest $250 a week in ASX shares to aim for $700,000
• 2 of the best ASX 200 blue-chip shares I’d buy in June
• Want to retire earlier? This mix of ASX shares and ETFs could help
• Brokers rate these 6 ASX 200 shares a strong buy, and tip upsides of up to 227%

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Australia’s superannuation industry has undergone a quiet but profound transformation. According to KPMG’s 2026 Super Insights report, the country now has nine superannuation mega funds each managing more than $100 billion in assets.

This is up from eight the prior year after Cbus crossed the $100 billion threshold.

The top 24 funds, those managing more than $20 billion each, now account for around 96% of all superannuation assets in the country.

That level of concentration has happened largely without most members noticing.

Why superannuation mega funds keep growing

The driver behind this consolidation is partly regulatory.

The “Your Future, Your Super” annual APRA performance test continues to apply to MySuper products and certain choice products. Funds that fail the test in consecutive years face restrictions on accepting new members.

That regime has pushed smaller, underperforming funds to merge into larger funds rather than risk being locked out of accepting new members entirely.

Market share held by mega funds increased from 63.1% in FY24 to 67.5% in FY25, with AustralianSuper remaining the nation’s largest fund at $389 billion, subsequently followed by Australian Retirement Trust at $351 billion.

Total superannuation assets have grown beyond $4.5 trillion, equivalent to around 150% of Australia’s GDP.

What bigger super funds mean for fees and performance

The most direct benefit of superannuation consolidation for everyday members is scale.

Larger funds can negotiate lower fees with investment managers, spread administrative costs across a larger member base, and invest in asset classes that smaller funds cannot access. This includes direct stakes in infrastructure, private equity, and unlisted property.

Average operating costs across the industry rose to $250 per member in FY25, driven mainly by technology uplifts and stronger cyber resilience.

These costs are far easier for a $100 billion fund to absorb without materially affecting member returns than for a fund one-tenth that size.

In FY25, the median growth fund returned 10.5%. This marks a third consecutive year of strong outcomes for members across the industry.

The flip side of superannuation mega funds

Consolidation is not entirely positive for members.

As smaller funds disappear into larger ones, product differentiation in the superannuation market narrows.

Members of merged funds are sometimes shifted into investment options that do not perfectly match their original risk profile or values, particularly around ethical or sustainable investment choices that smaller boutique funds had previously offered.

KPMG superannuation advisory lead Lisa Butler-Beatty said:

As the system grows and mega funds continue to emerge, the winners will be those that can convert scale into consistently better outcomes, which includes not only a strong performance, but also stronger member experiences and robust safeguards.

What it means for how you invest

For most Australians, the rise of superannuation mega funds reinforces a simple lesson that applies just as well to investing inside super through shares as it does to choosing a fund.

Scale, diversification, and low costs compound into materially better outcomes over a multi-decade investment horizon.

Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are among the largest individual holdings across Australia’s biggest superannuation funds.

They reflect exactly the kind of large, liquid, dividend-paying businesses that scale and that patience rewards over time.

Foolish Takeaway

Australia’s superannuation system has consolidated dramatically. Nine mega funds now dominate an industry that not long ago was far more fragmented.

For most members, that consolidation has likely delivered lower fees and more consistent performance.

But it has also reduced genuine choice and personalisation in the market.

Understanding which type of fund you are in, and why, is worth a few minutes of your time this year.

The post Australia now has 9 superannuation mega funds. Here is what that means for your retirement appeared first on The Motley Fool Australia.

More reading

• Guess which beaten-down ASX All Ords gold stock is pushing towards production
• This ASX retail stock just rejected a takeover bid. Is a bigger offer coming?
• 3 ASX growth shares to buy next month
• A2 Milk shares jump 7% on big China and special dividend news
• ASX 200 stock drops on FY 2026 results

Motley Fool contributor Mark Verhoeven 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The SGH Ltd (ASX: SGH) share price is in focus after the company announced a new on-market share buy-back of up to $500 million over the next 12 months, highlighting its strong balance sheet and recent progress in cutting debt.

What did SGH report?

• Approval for an on-market buy-back of up to $500 million in ordinary shares
• Leverage reduced below the company’s through-the-cycle target of 2.0x Adjusted Net Debt to EBITDA
• Strong operating cash flow and disciplined capital management cited as key factors behind the buy-back decision
• Buy-back not expected to affect funding for organic growth or further investments

What else do investors need to know?

The buy-back program will start after the company’s blackout period ends, expected around 11 August 2026, following the release of SGH’s FY26 financial results. SGH says the timing and size of actual purchases will depend on market conditions, future capital needs, and other factors that may arise.

The company emphasised that the buy-back is designed to maintain significant balance sheet capacity and flexibility, supporting its ongoing investment in businesses like WesTrac, Boral, and Coates, as well as its holdings in Beach Energy and Southern Cross Media Group.

What’s next for SGH?

SGH is signalling continued financial discipline, aiming to deliver value for shareholders through both the buy-back and further investments. The company indicates it will keep targeting growth opportunities and maintaining the flexibility to act when the right opportunities come along.

With a strong mix of industrial, energy, and media assets, SGH looks set to focus on both organic investment and potential inorganic growth, all while keeping its balance sheet robust.

SGH share price snapshot

Over the past 12 months, SGH shares have declined 20%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post SGH announces $500m buy-back and highlights financial strength appeared first on The Motley Fool Australia.

More reading

• These ASX shares were buy rated even before today’s $500m buyback. How high could they go?
• Metcash shares: FY26 profit edges lower, dividend maintained
• AFIC reveals 2026 dividend plans for shareholders
• a2 Milk Company gets China approval and plans $300m dividend
• 5 things to watch on the ASX 200 on Monday

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.

While much of the ASX has lagged in 2026, weighed down by several headwinds, three ASX shares hit fresh 52-week highs on Friday. 

In the past 12 months, these ASX shares have shot higher: 

• Weebit Nano (ASX: WBT) has risen 448%
• Srg Global (ASX: SRG) has climbed 150%
• Dicker Data (ASX: DDR) is up 58%. 

After hitting fresh yearly highs, here’s what brokers are expecting moving forward for these red hot ASX shares. 

Weebit Nano outlook 

Weebit Nano Ltd. develops and licenses Resistive Random-Access Memory (ReRAM), an advanced semiconductor memory technology designed to outperform traditional Flash memory in speed, energy efficiency, and reliability.

Its rise over the past year has been driven by several key tailwinds: 

• Major customer validation – Licensing deals with Tier-1 semiconductor giants signalled industry-wide acceptance of ReRAM as the next-generation memory standard.
• Rapid revenue inflection – Revenue grew exponentially year-on-year, with guidance repeatedly upgraded, confirming the business model is converting technology into real commercial traction.
• Ready to scale – Technology cleared industry manufacturing standards and the company raised significant capital to fund the next phase of growth.

While it could remain a speculative buy based on broker targets, its memory technology addresses a critical challenge in AI, IoT, automotive, and industrial applications, where increasing processing demands are exposing the limitations of conventional memory technologies.

This could give it plenty of runway for further gains despite already rising significantly in the last 12 months. 

SRG can continue to climb

SRG is an engineering-led construction, maintenance and mining services group built to solve complex problems across the entire asset lifecycle.

Its share price has soared in the last 12 months on the back of contract wins and earnings upgrades. 

In good news for prospective investors, it is still generating broker interest despite its massive gain over the last year. 

Morgans recently retained its buy recommendation on these ASX shares, along with an increased price target of $4.20. 

From Friday’s closing price of $3.97, this indicates a further 6% upside. 

Bell Potter is also optimistic on the future for these ASX shares. 

It recently upgraded its price target to $4.25. 

Dicker Data looks fully valued

Dicker Data Ltd is a wholesale distributor of computer hardware, software, cloud, and related products.

It has been one of the ASX technology shares riding the data centre boom in the last year. 

After hitting fresh 52-week highs last Friday, it appears these ASX shares may now be fully valued. 

Morgan Stanley currently has an $11 price target on these ASX shares, which is well below Friday’s closing price of $12.43. 

The post These are three of the hottest ASX shares right now – can they keep rising? appeared first on The Motley Fool Australia.

More reading

• This ASX tech stock just hit a 52-week high after soaring 35% in a month
• 8 ASX 200 shares with renewed buy ratings this week
• After dropping 9% yesterday, should you buy the dip on these ASX shares?
• Why Aeris Resources, Northern Star, REA Group, and Weebit Nano shares are falling today
• ASX 200 tech stocks led the market with big share price gains last week

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

The Australian Foundation Investment Co Ltd (ASX: AFI) share price is in focus after the company outlined plans for a final dividend of 14.5 cents per share (fully franked), together with a previously flagged special dividend of 2.5 cents per share, also fully franked.

What did Australian Foundation Investment Company report?

• Final dividend of 14.5 cents per share, fully franked, intended for FY26
• Special dividend of 2.5 cents per share, fully franked, planned
• Both dividends subject to market conditions and no adverse market shocks
• Dividends to be officially determined with the FY26 results announced 27 July 2026
• Ongoing on-market buy-back program continues

What else do investors need to know?

AFIC’s Board reiterated its commitment to regular returns for shareholders, reaffirming that the final and special dividends will be determined alongside the financial year result. The Board emphasised that dividends remain subject to market conditions holding steady and no significant negative events.

Additionally, the Company will continue its on-market buy-back. This move is designed to optimise capital management and support the share price, aligning with AFIC’s long-standing approach to shareholder value.

What’s next for Australian Foundation Investment Company?

Investors can expect a dividend update, including confirmation of both the final and special dividends, along with the Company’s annual results on 27 July 2026. The Board’s message makes it clear that AFIC is focused on steady, reliable returns but remains watchful of market conditions.

Looking forward, the ongoing buy-back is set to provide further flexibility in AFIC’s capital management, potentially enhancing value for shareholders in the months ahead.

Australian Foundation Investment Company share price snapshot

Over the past 12 months, AFIC shares have declined 12%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post AFIC reveals 2026 dividend plans for shareholders appeared first on The Motley Fool Australia.

More reading

• a2 Milk Company gets China approval and plans $300m dividend
• 2 ASX blue-chip shares offering big dividend yields
• 5 things to watch on the ASX 200 on Monday
• Healthcare shares led the ASX 200 last week. Is a sector comeback underway?
• At 40 how does your superannuation balance compare? It might be time for a tune up

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.