Author: openjargon

Bell Potter has been running the rule over the quick service restaurant (QSR) industry in Australia.

Let’s now see whether it is bullish, bearish, or something in between on the shares of Australia’s three major listed players.

Here’s what the broker is saying:

Collins Foods Ltd (ASX: CKF)

Bell Potter has initiated coverage on this KFC-focused quick service restaurant operator’s shares with a buy rating and $10.80 price target.

The broker thinks that Collins Foods shares are the best value based on its forward multiples and its positive growth outlook. It explains:

We view CKF as the best-positioned QSR name due to its mix of 1) leading unit economics, 2) strong value offering at ~30% lower than its 2 key ASX-listed competitors (crucial in a consumer tightening cycle), and 3) exposure to diverse economies with a continued development pipeline in key markets, with BPe FY26e 7 new restaurants in Australia and 11 in Germany (vs. company ambition of Australia 7- 10 restaurants per annum and Germany 45-90 new restaurants over four years).

We note CKF is trading at a multiple (~14x FY27e) that we deem as cheap in comparison to its peers, when considering its recent positive SSSG and NPAT growth reiteration in March. Our confidence lies with management’s strong track record of execution in domestic and international markets historically resulting in acquisitive and organic earnings growth.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The broker has started with a hold rating and $18.00 price target on Domino’s shares.

Although it acknowledges that its shares are trading on low multiples, it feels that this is justified based on its modest earnings growth outlook. It adds:

DMP is resetting its pricing strategy toward more profitable discounting, after a period of intense discounting to win back a customer that was lost due to previous aggressive price increases.

We note DMP is trading at a P/E multiple (~13x BPe FY27e) that we deem as appropriate in comparison to its peers, when considering our forecasted 3- year EPS CAGR of ~3%, (CKF ~11%, GYG ~53%) paired with ongoing risk within its Asia business, particularly given its overall contribution to network sales.

Guzman Y Gomez Ltd (ASX: GYG)

Bell Potter has initiated coverage on Guzman Y Gomez shares with a hold rating and $22.10 price target.

While the broker believes the burrito seller deserves a premium valuation, it is just a little too much at present to justify a buy rating. It explains:

Within Australia, GYG has the highest set of unit economics compared to CKF and DMP, due to a mix of premium menu pricing and a skew towards higher margin drive thru restaurants (~53% of total restaurant network). Moving forward, this is intended to be the strategy to boost profitability, with >85% of its 108 restaurant pipeline targeted at being drive thru format.

Since IPO, GYG has traded at ~37x trailing EV/EBITDA, a significant premium to its peers that we viewed as excessive and led by lofty expectations of US expansion. We do, however, still see a premium as warranted, underpinned by GYG’s differentiated concept and growth profile that extends well beyond its domestic peers. On a forward looking basis, GYG now trades at ~24x BPe FY26e EBITDA, a level we view as still relatively elevated given future growth expectations are driven by the Australian segment.

The post Buy, hold, sell: Collins Foods, Domino’s, and Guzman Y Gomez shares appeared first on The Motley Fool Australia.

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

Not all ASX stocks are created equal, but some stand out for very different reasons.

Breville Group Ltd (ASX: BRG) is quietly building a global premium brand, while Lovisa Holdings Ltd (ASX: LOV) is scaling a fast-fashion jewellery model across the world.

Both growth stocks have faced pressure recently, but their international growth stories could set them up for strong long-term returns.

Breville: Compelling long-term play

Starting with Breville. This ASX stock is often labelled as a kitchen appliance company, but that undersells what’s really happening.

Breville has spent years positioning itself as a premium global brand. Its products don’t compete on price. Instead, they focus on quality, design, and performance. That strategy has helped it carve out a loyal customer base and expand successfully into key international markets, particularly the US.

As brand recognition grows, so does its ability to scale. This is where the long-term opportunity lies. Building a brand takes time, but once established, it becomes a powerful competitive advantage that’s difficult for rivals to replicate.

That brand strength can translate into pricing power, higher margins, and sustained growth over time. It’s not a quick win, but it’s a compelling long-term play.

Analysts at Morgans are positive on the outlook, maintaining a buy rating and a $40.65 price target on the ASX stock. That suggests a 39% upside at current price levels.

Lovisa: Rapid turnover and trend agility

Then there’s Lovisa, which has taken a very different path, but with equally global ambitions.

This $2.5 billion ASX stock has built a fast-fashion jewellery empire, driven by a model that emphasises rapid product turnover and trend responsiveness. Its ability to quickly adapt to changing consumer tastes has been a key driver of success.

The real story, though, is expansion. Lovisa has rolled out stores across Europe, the US, and Asia, and still has a long runway for further growth. This international footprint is what makes the business so appealing over the long term.

However, the market has become more cautious.

Cost inflation, softer consumer spending, and concerns about margins have weighed on sentiment. Retail is highly sensitive to economic conditions, and Lovisa is not immune to those pressures.

That caution is reflected in analyst views. Bell Potter Securities recently retained a hold rating on the ASX stock but cut its price target to $24 from $33.50, a notable downgrade. From current levels, that suggests modest downside in the near term.

Still, short-term challenges don’t necessarily derail a long-term growth story. If Lovisa can continue executing its global rollout and maintain its fast-fashion edge, the business could keep expanding well beyond its current footprint.

The post 2 ASX growth stocks to buy now and hold until 2036 appeared first on The Motley Fool Australia.

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

Now could be an opportune time to buy WiseTech Global Ltd (ASX: WTC) shares.

That’s the view of analysts at Bell Potter, who believe this logistics solutions technology company is too cheap to ignore right now.

What is the broker saying?

Bell Potter has been busy updating its estimates to reflect impacts from the war in the Middle East.

While this has led to modest downgrades, the broker is still expecting double-digit growth from WiseTech. It said:

We have reviewed our WiseTech forecasts and elected to take a more conservative approach in light of the conflict in the Middle East and the impact this is having on both freight volumes and the global macro environment. We have also chosen to reflect some of the risk that DSV moves part of its operations away from CargoWise onto its own in-house system, Tango, in the short to medium term. And lastly we have also reduced our e2open growth forecasts for conservatism.

The net result is revenue downgrades of 1%, 4% and 9% and EBITDA downgrades of 1%, 3% and 6% in FY26, FY27 and FY28. Note that in FY26 we now forecast revenue and EBITDA of US$1.41bn and US$564m which are within but more towards the lower end of the US$1.39-1.44bn and US$550-585m guidance ranges. We do, however, now only forecast 13% CargoWise growth in FY26 versus the guidance of 14-21%.

WiseTech shares look cheap

Despite the above, the broker believes that WiseTech shares are cheap, especially in comparison to other tech stocks like TechnologyOne Ltd (ASX: TNE). It explains:

There are no changes in the key assumptions we apply in the valuations used to determine our target price – multiples of 55x and 30x in the PE ratio and EV/EBITDA and a WACC of 8.6% in the DCF. The net result of the downgrades is a 6% decrease in our target price to $78.75 which is still a significant premium to the share price so we maintain our BUY recommendation.

We note that WiseTech is currently trading at >30% discount to Technology One on an EV/EBITDA basis in both FY26 and FY27. While we believe some sort of discount is now warranted, we believe the current discount is excessive given WiseTech has greater forecast earnings growth over the medium term and also a similar strong competitive moat due to 30 years of proprietary data, deeply embedded software and high switching costs.

As mentioned above, Bell Potter has put a buy rating and $78.75 price target on WiseTech shares. Based on its current share price of $45.49, this implies potential upside of 73% for investors over the next 12 months.

The post Why WiseTech shares could rise 70% appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Technology One and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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.

Warren Buffett has been one of the greatest investors the world has ever seen as he (and Charlie Munger) built Berkshire Hathaway into an incredible, globally recognised company. Though, he didn’t accomplish that by investing in S&P/ASX 200 Index (ASX: XJO) shares because he’s American.

Buffett famously wanted to stay inside his ‘circle of competence’. In other words, he only wanted to stick to industries that he understands.

That meant he avoided some sectors like technology, even if that meant missing out on some of the returns.

When looking at the list of businesses that Berkshire Hathaway has invested in and owned over the years, there are a few industries that stick out, with one being furniture. In my view, one of the ASX 200 shares that Warren Buffett would consider if he were Australian is Nick Scali Ltd (ASX: NCK).

Numerous positives about Nick Scali shares

Nick Scali is one of the larger furniture businesses in Australia, with its Nick Scali and Plush brands. It also has a small Nick Scali UK division which was originally called Fabb Furniture when it was first acquired.

There are a number of things that I’m sure Warren Buffett would want to see.

Growth in the gross profit margin is a pleasing factor because it shows that increasing scale (or another positive factor) is helping. In the FY26 half-year result, the gross profit margin increased from 62.3% last year to 65.4%.

Other profit margins improving are also a great positive. HY26 revenue rose 7.2% to $269.3 million, the operating profit (EBITDA) grew 18.1% to $96.6 million and net profit rose 23.1% to $41 million. As you can see, EBITDA and net profit both increased a lot faster than revenue.

As a bonus, the business is generous when it comes to the passive income. In HY26, the business hiked its interim dividend by 30%.

I think the ASX 200 share would be particularly compelling to Warren Buffett because of how much room for growth the business still has. It could add dozens of stores in Australia (and New Zealand), as well as the UK.

Increased scale could play a significant part in the company’s profitability in the coming years.

The valuation numbers are also appealing. According to the projection on Commsec, the Nick Scali share price is valued at 16x FY26’s estimated earnings, at the time of writing.

Passive income is expected to increase year-over-year in the 2026 financial year. According to the projection on Commsec, the business is forecast to pay an annual dividend per share of 78.1 cents.

That estimate on Commsec implies a potential grossed-up dividend yield of 7.1%, including franking credits, at the time of writing.

The post Would Warren Buffett buy this ASX 200 share? 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 recommended Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Lynas Rare Earths Ltd (ASX: XJO) share price is in focus today after the company delivered its highest quarterly sales revenue since 2022 and reported a sharp lift in rare earth oxide (REO) production.

What did Lynas Rare Earths report?

• Quarterly gross sales revenue of A$265.0 million, up 115% from Q3 FY25
• Sales receipts of A$234.0 million
• Closing cash and short-term deposits at A$1,070.0 million
• Total REO production of 3,233 tonnes, including 1,996 tonnes of NdPr
• First-ever production of Samarium oxide, ahead of schedule
• CAPEX, exploration, and development payments reduced to A$32.6 million for the quarter

What else do investors need to know?

Lynas recorded its strongest revenue in almost four years, driven by a 25% increase in the average NdPr selling price and higher volumes of rare earth sales. The sales mix was further enhanced with the introduction of Samarium oxide, making Lynas the only commercial producer and supplier of both light and heavy rare earths outside China.

The company renewed its Malaysian operating licence for 10 years, offering stability for further investment. Lynas also announced two new agreements with Japanese partners JARE, including a 12-year NdPr supply contract at minimum pricing, and a framework to boost rare earths cooperation. In March, Lynas inked a framework agreement with LS Eco Energy for a new rare earth metal facility in Vietnam, supporting their strategy to expand the metal and magnet supply chain outside China.

What did Lynas Rare Earths management say?

Chief Executive Officer and Managing Director Amanda Lacaze said:

Our ramp up has delivered strong production and sales outcomes, with key initiatives positioning Lynas for the future and strengthening business resilience.

What’s next for Lynas Rare Earths?

Looking ahead, Lynas aims to further develop its global supply chains with new partnerships in Japan, the US, and Asia. The company’s Towards 2030 strategy focuses on securing new feedstock sources, expanding rare earth separation capability, and adding value-add processing facilities such as the planned magnet plant in Malaysia.

Investment in renewable energy is already paying off, with higher operational efficiency and cost savings at Mt Weld. Lynas remains committed to safety, sustainability, and innovation as it continues to grow its rare earths business in evolving global markets.

Lynas Rare Earths share price snapshot

Over the past 12 months, Lynas Rare Earths shares have risen 130%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.

View Original Announcement

The post Lynas Rare Earths shares in focus after record revenue and new supply deals appeared first on The Motley Fool Australia.

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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 recommended Lynas Rare Earths Ltd. 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.

When it comes to long-term investing, quality ASX shares tend to rise to the top. Businesses with strong competitive advantages, consistent earnings, and the ability to reinvest for growth often deliver the best returns over time.

While markets can be unpredictable in the short term, high-quality companies can keep compounding for years.

Here are two ASX shares that could be worth considering for long-term investors.

REA Group Ltd (ASX: REA)

REA Group is a prime example of an ASX share that could consistently compound over years. It operates Australia’s leading online property marketplace and has built a dominant position that is incredibly difficult to disrupt. Its platform is deeply embedded in the real estate ecosystem, making it the go-to destination for buyers, sellers, and agents.

That dominance translates into pricing power. Even during softer property cycles, REA has historically grown revenue through premium listings and value-added services. This ASX share is not just exposed to housing activity; it actively monetises it.

The business has also continued to evolve. By adding new tools, data insights, and digital services, REA is strengthening its offering and deepening customer engagement. This reinforces its competitive moat and supports long-term growth.

With high margins, a leading market position, and structural exposure to housing demand, REA appears well placed to keep delivering over the next decade. Analysts at Bell Potter Securities recently placed a buy rating on the stock with a $211 price target, implying potential upside of around 21% from current levels.

TechnologyOne Ltd (ASX: TNE)

Another high-quality name to watch is TechnologyOne. The enterprise software company has been a standout performer over the years, even after experiencing a pullback through late 2025 and early 2026.

The $10 billion ASX tech share provides software solutions to government agencies, universities, and large organisations. Its transition to a cloud-based software-as-a-service (SaaS) model has transformed the business, driving predictable and growing recurring revenue.

Its latest financial performance highlights that strength. The company delivered 18% revenue growth to $554.6 million and a 19% increase in profit before tax to $181.5 million. Consistency at that level is a key reason investors have been drawn to the stock.

One of its biggest advantages is customer stickiness. Once its software is embedded into an organisation’s operations, switching providers becomes costly and complex. That leads to high retention rates and supports long-term earnings growth.

There’s also an international growth angle. TechnologyOne has been expanding in the UK, which could provide an additional runway for growth in the years ahead.

With strong margins, recurring revenue, and a scalable platform, TechnologyOne has the characteristics of a business that can continue compounding over the long term.

Most analysts see the ASX share as a buy or strong buy. The average 12-month price target sits around $32, which points to a 6% upside. The most bullish price target is $38.70, 27% above the current share price.

The post 2 elite ASX shares to buy in April and hold for the next decade appeared first on The Motley Fool Australia.

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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.

The Challenger Ltd (ASX: CGF) share price is in focus today after the company announced it will redeem all outstanding Challenger Capital Notes 3 on 25 May 2026, returning $100 per note in cash to holders. Investors will also receive a final fully franked distribution of $1.47 per note, expected to be paid on the same date.

What did Challenger report?

• All outstanding Challenger Capital Notes 3 to be redeemed for $100 per note on 25 May 2026
• Final fully franked distribution of $1.47 per note to be paid on 25 May 2026
• Record date for final distribution set as 15 May 2026
• Redemption approved by Australian Prudential Regulation Authority (APRA)
• Last trading day for Challenger Capital Notes 3 expected to be 13 May 2026

What else do investors need to know?

Challenger’s decision to redeem the Capital Notes 3 has been approved by APRA, with the company emphasising that this does not signal a future intent to redeem other capital instruments. Any similar future decisions would also require separate APRA approval.

The payment of the final distribution and redemption proceeds is subject to standard conditions, specifically that no payment condition exists on the date. If these conditions are met, holders on the record date will receive their payment on 25 May 2026.

What’s next for Challenger?

With this redemption, Challenger is simplifying its capital structure and returning funds to noteholders. The company has stated this move is in line with established terms and current capital management plans.

Challenger’s ongoing focus remains on providing financial security for clients in retirement, through its Funds Management and Life divisions. There is no indication of further redemptions planned for other capital instruments at this time.

Challenger share price snapshot

Over the past 12 months, Challenger shares have risen 22%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.

View Original Announcement

The post Challenger plans 2026 redemption of Capital Notes 3 with final distribution appeared first on The Motley Fool Australia.

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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 recommended Challenger. 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.

Regardless of one’s feelings towards the current occupant of the White House, it’s fair to say that the United States’ historic role as the leader of the free world is at its lowest ebb since at least the end of the Second World War. With faith in the United States as a global leader waning, could investing in Chinese shares be a prudent move for ASX investors? If so, the iShares China Large- Cap ETF (ASX: IZZ) might be an easy way to do it.

For more than 70 years, the US has been at the centre of the global financial system. Even after the US-dictated ‘Bretton-Woods’ gold standard collapsed in the 1970s, the vast majority of world trade has, and continues to occur, in US dollars.

However, many investors are asking how long American dominance of the financial system will continue. US President Donald Trump has made no secret of his disdain for multilateral forums like NATO, the United Nations (UN), and the International Monetary Fund (IMF), viewing them through his ‘America First’ ideology as unnecessary drains on American resources.

If American power and influence on the international stage does decline, the logical heir, at least in many minds, is China.

China is the world’s second-largest economy and has made no effort to hide its own superpower ambitions. China already dominates several future-facing industries, including electric vehicles, rare earths processing, and renewable energy.

So, is now the time to invest in China?

One of the easiest ways to do so from the ASX is through the iShares China Large-Cap ETF. This exchange-traded fund (ETF) holds a basket of 50 of the largest Chinese stocks. These stocks are dominated by China’s largest tech titans, including Alibaba, Tencent, and Xiaomi. These companies currently make up 9.01%, 8.16%, and 7.97% of IZZ’s portfolio, respectively. Other names that might be familiar to readers include carmaker BYD and food delivery giant Meituan.

If an ASX investor wishes to invest in China, this ETF provides one of the simplest paths.

Is IZZ a buy today?

This ASX ETF might prove to be a long-term winner for ASX investors, particularly if the US does continue to bleed power and influence to China.

However, I won’t be buying it.

I happen to take Warren Buffett at his word when he tells us to ‘never bet against America’. Sure, the America of 2026 is not the same America that most of us grew up with. However, I think this country’s long history of innovation and open markets will continue to enable it to produce the best companies in the world. Plus, for all we know, the US could elect a very different President in 2028.

Right now, that is certainly the case. China may have some impressive companies. But none, at least in my view, can rival Apple, Microsoft, Nvidia, Amazon, Alphabet, Coca-Cola, Tesla, Netflix, and many, many others in terms of global reach and dominance.

China does not have the political polarisation of America. But it is also a country that coerces its companies to place loyalty to the Chinese state above its shareholders’ interests, and to obey the central government’s every whim. That’s not something that many investors in Australia would welcome, I’d wager. It does not technically even allow non-citizens to directly own shares of Chinese companies (look it up).

As such, I would rather put my money in a country that values financial transparency and has always been the home of the world’s best businesses. Its politics might be volatile. But the American financial system remains the central pillar of the global economy. As such, I’m listening to Uncle Warren on this one.

The iShares China Large- Cap ETF charges a management fee of 0.6% per annum. As of 31 March, it has returned an average of 5.63% per annum since its 2004 inception.

The post With the US flailing, is it time to buy the iShares China Large-Cap ETF (IZZ)? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Apple, Berkshire Hathaway, Coca-Cola, Microsoft, and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Microsoft, Netflix, Nvidia, Tencent, and Tesla and is short shares of Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group and BYD Company. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Microsoft, Netflix, and Nvidia. 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) VanEck Morningstar Wide Moat ETF (ASX: MOAT) has been a great investment to own for the long-term and there are still plenty of reasons to believe it can deliver good returns from here.

For starters, I should mention that the fund is invested in US-listed businesses. So, for Australian investors who have little exposure to overseas share markets, I think this is a good option to consider for international diversification purposes.

Its portfolio – which is regularly shifting its holdings – has delivered an average return per year of 14.7% over the last decade.

I reckon many Aussie investors would be happy if their portfolio delivered an average return per year of more than 14% over the prior decade.

There are a couple of aspects that help this ASX ETF deliver such strong returns.

Strong economic moats

The fund says it focuses on quality US companies that Morningstar (an investment research outfit) believes possess sustainable competitive advantages, or wide economic moats.

Competitive advantages can come in a variety of different forms such as cost advantages, intangible assets (patents, brands or regulatory licenses) that keep competitors at bay, switching costs, network effects, efficient scale and so on.

It’s good to have a competitive advantage because that may be what wins a customer.

But, the ASX ETF wants to find businesses that have sustainable competitive advantages. In other words, it wants to see that these advantages will endure for a long time rather than having an economic moat they may not last that long.

VanEck and Morningstar explain how a business can claim to have a wide economic moat:

For a company to earn a wide economic moat, excess normalised returns must, with near certainty, be positive 10 years from now. In addition, excess normalised returns must, more likely than not, be positive 20 years from now.

In other words, these businesses could generate good profits and margins for many years to come.

Great value

The MOAT ETF only invests in these great businesses when they’re at a good price.

It targets companies that are trading at attractive prices compared to what Morningstar’s estimate of fair value.

At the moment, the ASX ETF’s biggest positions currently include Constellation Brands, Brown-Forman, Airbnb, Nvidia and Bristol-Myers Squibb.

That combination of buying great businesses at good prices is a winning formula and it has clearly generated good returns over the long-term as it picks great ideas from a variety of sectors.

The post This ASX ETF has generated returns of almost 15% per year! appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Airbnb, Bristol Myers Squibb, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Constellation Brands. The Motley Fool Australia has recommended Airbnb, Nvidia, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Rio Tinto Ltd (ASX: RIO share price is in focus today after the company posted a 9% year-on-year lift in copper equivalent production for Q1 FY26, powered by copper and iron ore growth and a resilient aluminium performance.

What did Rio Tinto report?

• Copper equivalent production up 9% year-on-year across the portfolio
• Pilbara iron ore production jumped 13% YoY to 78.8 million tonnes (100% basis); sales up 2%
• Group copper production rose 9% to 229,000 tonnes; Oyu Tolgoi ramp-up on track
• Aluminium output increased 1%, with 835,000 tonnes produced
• Bauxite production was down 11% due to weather impacts
• 2026 production and unit cost guidance unchanged across key divisions

What else do investors need to know?

Rio Tinto maintained full-year production and cost guidance for 2026 across all major commodities, despite some weather-related disruptions. The Pilbara iron ore mines delivered their second-best Q1 production since 2018, even as two cyclones reduced shipments by around 8 million tonnes, with about half of the losses expected to be recovered later in the year.

The company reported strong progress on key capital projects. Mechanical completion was achieved at both Fenix 1B and Sal de Vida lithium projects, positioning Rio Tinto for first production in the second half of 2026. Investment in productivity initiatives has already yielded $650 million in annualised benefits, with further improvements underway.

What did Rio Tinto management say?

Rio Tinto Chief Executive Simon Trott said:

Operating excellence drove 9% YoY copper equivalent production growth across our portfolio as the Oyu Tolgoi copper mine continues to ramp up as planned and our integrated aluminium business, again, delivered a strong performance. Our Pilbara iron ore mines performed strongly, while shipments were impacted by two cyclones in the quarter.

What’s next for Rio Tinto?

Looking ahead, Rio Tinto is focused on extending mine life and expanding production across its core commodity assets. Major development projects in iron ore, copper, lithium and aluminium remain on track, with the company’s unique global portfolio providing supply chain resilience. The business is monitoring global geopolitical and commodity market developments closely, particularly in light of the Middle East conflict and its potential impacts in the second half of 2026.

Future-facing growth is supported by new projects in Guinea (Simandou iron ore) and Argentina (lithium), while sustainability and operational productivity remain key priorities. Guidance for 2026 output and costs remains unchanged at this stage.

Rio Tinto share price snapshot

Over the pat 12 months, Rio Tinto shares have risen 55%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.

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The post Rio Tinto Q1 FY26: Production growth and steady guidance drive optimism appeared first on The Motley Fool Australia.

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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.