Author: openjargon

The Superloop Ltd (ASX: SLC) share price is in focus as the company upgrades its FY26 underlying EBITDA guidance to $118–122 million, a 28–32% lift on FY25, following its Lightning Broadband acquisition.

What did Superloop report?

• FY26 underlying EBITDA now expected at $118 million to $122 million, up from prior $112–$120 million guidance
• This represents 28% to 32% growth on FY25
• Lightning Broadband acquisition adds approximately $700,000 to FY26 earnings
• Capex guidance raised by $2 million to $34–$37 million (excludes IRU renewal)

What else do investors need to know?

Superloop is holding its Investor Day today, where management will outline a new three-year growth strategy, called Supercharge29, targeting the period FY27 to FY29. The strategy aims to build shareholder value through ongoing organic growth, expanding Smart Communities, accretive acquisitions, and disciplined capital management.

The company continues to provide connectivity to consumers, businesses, and wholesale partners using its infrastructure assets, including fibre, subsea cables, and fixed wireless. Superloop’s Infrastructure-on-Demand platform enables challenger retail brands to compete for a greater share of the Australian internet market.

What’s next for Superloop?

Investors can look forward to detailed updates on the company’s Supercharge29 strategy, aimed at driving sustained growth from FY27 onwards. Management emphasises continued investment in both organic initiatives and targeted M&A.

The enhanced capex guidance signals a commitment to strengthening Superloop’s infrastructure and supporting expanding Smart Communities, all while balancing returns with disciplined capital management.

Superloop share price snapshot

Over the past 12 months, Superloop shares have risen 31%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post Superloop upgrades FY26 earnings guidance and unveils new strategy appeared first on The Motley Fool Australia.

More reading

• If I could buy just 1 ASX stock in June, it’d be this cheap ASX 200 share
• Megaport secures 4 new AI contracts, announces capital raise
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Why’s the ASX 200 falling today despite another tech rally?

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.

The Megaport Ltd (ASX: MP1) share price is in focus today after the company secured four new AI infrastructure contracts worth A$458.9 million and announced an on-demand GPU Pool to support enterprise AI demand.

What did Megaport report?

• Four new AI infrastructure contracts with combined Total Contract Value (TCV) of about A$458.9 million
• Contracts require around A$369.5 million in capital expenditure, mainly for NVIDIA GPUs, network, and storage infrastructure
• Pro forma Compute division ARR jumped to A$385.2 million, with total Group ARR at A$662.9 million
• Network ARR increased 25% year-on-year to A$277.7 million, with Net Revenue Retention at 113%
• Fully underwritten entitlement offer to raise A$827.3 million for funding these contracts and future growth opportunities
• FY26 revenue guidance range tightened to between A$307 million and A$315 million; EBITDA margin and Capex guidance unchanged

What else do investors need to know?

Megaport is investing A$350 million in the creation of a new global GPU Pool, aiming to give enterprise customers flexible, on-demand access to AI infrastructure. This approach is designed to address surging demand as workloads shift to latency-sensitive AI inference needs.

The entitlement offer, priced at A$14.30 per new share, is fully underwritten and will help fund both contracted demand and infrastructure expansion. Eligible shareholders can participate according to their June 5 allocation, and both institutional and retail components are included.

What did Megaport management say?

Chief Executive Officer Michael Reid said:

AI inference represents one of the biggest infrastructure opportunities of the next decade…The contracts announced today reflect the accelerating demand for globally-distributed AI inference infrastructure. Megaport’s software-provisioned compute, network, and storage platform positions us strongly to meet that demand. The proceeds from the Entitlement Offer will enable us to fulfil contracted customer demand while building an on-demand GPU Pool that creates new opportunities across enterprise and sovereign AI markets globally. As AI adoption accelerates, organisations need seamless access to GPUs, CPUs, storage, and the connectivity that powers them. Megaport is built to deliver it all.

What’s next for Megaport?

Megaport plans to roll out its Globally-Distributed AI Inference Cloud, leveraging more than 1,100 connected data centres in 31 countries. The new GPU Pool is expected to be deployed over the next 6–9 months, with servers achieving optimal utilisation within 3–6 months thereafter.

Looking ahead, Megaport expects ongoing investment into storage, network, and compute resources to meet growing AI and cloud demand. The company will update investors on progress at its full-year results announcement in August 2026.

Megaport share price snapshot

Over the past 12 months, Megaport shares have risen 23%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcemen

The post Megaport secures 4 new AI contracts, announces capital raise appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Why’s the ASX 200 falling today despite another tech rally?
• Buy, hold, sell: Origin Energy, Megaport, NAB shares
• Megaport shares halted after 86% surge. Is another major deal coming?

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 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. 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.

There is a paradox at the heart of Pro Medicus Ltd (ASX: PME) right now.

Pro Medicus shares are down approximately 50% from their all-time high of $336.

The reason most investors give for that decline is artificial intelligence: the fear that AI will commoditise radiology software and make Visage, Pro Medicus’s core platform, obsolete.

However, this week, Pro Medicus signed a $28 million five-year contract renewal with Allegheny Health Network, an existing client, at higher fees than the prior contract.

Pro Medicus shares jumped 12% on the news. The contract renewal, at richer terms than before, is a rebuttal possible to the AI disruption narrative. If AI were genuinely threatening the Visage platform, clients would be hesitating.

Instead, they are recommitting at higher prices.

The AI disruption fear explained

The selloff in Pro Medicus shares began in earnest when the broader market started selling high-multiple software stocks on concerns that large language models and generative AI would displace enterprise software platforms.

The theory, applied to Pro Medicus, goes like this: if AI can interpret radiology images directly, perhaps hospitals will not need expensive dedicated radiology software like Visage at all.

This theory, based on the evidence, almost certainly wrong.

James Gerrish from Shaw and Partners addressed this directly, stating:

We think Pro Medicus is one of the few names where AI is more likely to enhance the moat than erode it. Rather than replacing Visage, AI can make the platform more valuable by improving radiology workflows, accelerating image analysis, supporting detection tools and automating parts of the reporting process.

Pro Medicus CEO Dr Sam Hupert has been even more direct.

He said:

Many have tried to replicate our tech stack over the last 17 years, but no one has succeeded, with or without AI.

Management has been actively embedding AI capabilities into Visage, including advanced breast cancer screening applications and its RadPath Hub. This tool integrates radiology and pathology data to support more sophisticated clinical decision-making.

This has made the product stronger, and clients are taking notice.

The numbers that matter

Ignore the share price noise and the underlying business continues to perform at an extraordinary level.

In the first half of FY2026, Pro Medicus delivered revenue growth of 28.4% to $124.8 million, with underlying profit before tax rising 29.7% to $90.7 million.

The company maintained an EBIT margin of 73%, one of the highest of any listed technology company in Australia.

Five-year contracted revenue now sits at approximately $1.1 billion, giving the business extraordinary earnings visibility.

Pro Medicus continues to maintain an exceptional customer retention record, while also winning major contracts against much larger competitors, a strong endorsement of the quality of its technology and the value it delivers to customers.

Yesterday’s Allegheny Health Network renewal is the latest in a string of contract wins and renewals that include a $330 million ten-year contract with Trinity Health and a $37 million five-year renewal with Northwestern Medicine.

Every renewal at higher fees confirms the competitive moat is intact.

What brokers think about Pro Medicus shares

The broker community has stayed firmly behind Pro Medicus shares through the selloff.

Gerrish from Shaw and Partners told investors his team was buying Pro Medicus shares for their Active Growth Portfolio, naming it the most defensively positioned software business on the ASX.

Morgans maintains a buy rating on Pro Medicus shares, noting that the longer-term growth outlook has actually strengthened through the recent wave of significant contract wins.

Catapult Wealth has also named Pro Medicus as a buy, pointing to growing market share in the United States and strengthening pricing power as evidence the AI disruption narrative is overdone.

The valuation question

Pro Medicus shares are not cheap even after the significant decline.

The stock trades at a meaningful premium to the broader market on earnings-based measures, reflecting the extraordinary quality of the business.

For investors who require a margin of safety in traditional valuation terms, Pro Medicus may not be the right stock.

However, for investors who believe the quality of a competitive moat, the strength of recurring revenue, and the trajectory of earnings growth are the right frameworks for valuing a business, the current entry point looks more attractive than at any point since 2022.

Foolish takeaway

Pro Medicus shares fell on fears that AI would destroy the business.

Yesterday’s contract renewal at higher fees than before is the clearest possible evidence those fears are wrong. AI is not the enemy of Pro Medicus. It may, in actual fact, be a friend.

According to Shaw and Partners, Morgans, and the company’s own management, AI is making the Visage platform more valuable, not less.

For patient investors willing to hold through ongoing volatility, this could indeed prove to be a once-in-a-generation entry point into one of the finest software businesses on the ASX.

The post Why AI is making Pro Medicus shares a once-in-a-generation buy appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Which tech share is the ‘most defensively positioned software business’ on the ASX?
• Why DroneShield, Pro Medicus, SRG Global, and Woodside shares are charging higher today
• Is June set to be the month of the ASX healthcare rebound?
• Here are the top 10 ASX 200 shares today

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 recommended Pro Medicus. 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.

Commonwealth Bank of Australia (ASX: CBA) shares are one of the most popular options in the financial sector.

However, due to its premium valuation, many investors aren’t comfortable buying its shares at current levels.

So, what other options are there? Let’s look at one that Bell Potter rates as a buy.

Which ASX financials stock?

Bell Potter is bullish on COG Financial Services Ltd (ASX: COG) and is recommending it to clients this week.

It operates a group of distribution businesses that provide access to credit (and related insurance) for yellow commercial goods.

In addition, the ASX financials stock has balance sheet capacity to fund direct originations, with a focus on capturing some of the overflow for non-prime chattel mortgages.

Bell Potter highlights that trading conditions have been mixed for COG Financial Services. It said:

ABS data showed equipment, plant and machinery capital expenditure grew +18%, driven by data centre investment. Excluding this, core spending demonstrated +8% growth for the three months to 31 March compared with the pcp. Looking forwards, the investment pipeline is accelerating, with consecutive +8% upgrades.

While June quarter expectations have been forced upwards, we turn more conservative, given the significant contribution from data centres, and downgrade our volume growth forecast to the current run rate (broking & aggregation). Victorian business credit demand was down -2%. This is the main exposure for the business. Although national confidence is strengthening, with overall spending targets upgraded +11% for FY27E.

In addition, the broker highlights that there is meaningful potential for a re-rating in novated leasing. It adds:

Automotive suppliers and dealers have seen large increases in order backlogs, and trading updates indicate customers have continued to favour efficient vehicles through June. However, profit expectations are down on discounting and supply constraints. We view this reinforcing the case for re-rating novated leasing.

The channel stands to gain from new market entrants and increased electric vehicle uptake (lower priced Chinese brands). We view VFACTS data, due to be released tomorrow, as a catalyst. So far, novated leasing companies have seen their revenue growth trace settlements.

Should you invest?

According to the note, Bell Potter has retained its buy rating and $2.30 price target on this ASX financials stock.

Based on its current share price of $1.51, this implies potential upside of 52% for investors over the next 12 months.

In addition, the broker is expecting an attractive fully franked 4.6% dividend yield over the period, which lifts the total potential return beyond 56%.

Commenting on its investment thesis, Bell Potter highlights the discount that the ASX 300 share trades on compared to peers. It concludes:

Our Buy rating is unchanged. COG is delivering broad growth and continues to screen at a discount to broking and fleet peers, complemented by a string of acquisitions.

The post Is this ASX financials stock a better buy than CBA shares? appeared first on The Motley Fool Australia.

More reading

• Should you buy CBA and NAB shares this week?
• Brokers rate these 5 ASX 200 shares as a sell!
• Buy, hold, sell: Wesfarmers, Saluda Medical, CBA shares
• Top 10 ASX shares bought and sold by investors in May
• Are ASX 200 bank shares a buy in June?

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.

I’m sure every investor wants to make good returns from their portfolio. Some ASX shares could be more undervalued than others and deliver stronger returns in a relatively short amount of time.

Some analysts think certain stocks can rise by more than 50% in the next year, though those returns are not guaranteed.

Below could be two of the most promising ideas on the ASX today.

Bubs Australia Ltd (ASX: BUB)

Bubs describes itself as a leading infant nutrition company that’s “committed to providing premium-quality products that support the health and well-being of babies worldwide”.

In other words, it’s known for infant formula, including goat milk and grass-fed options. It has a presence in Australia, the US and growing international markets, including China.

The ASX share generated net revenue of $102.5 million in FY25 and it expects to reach FY26 revenue of between $105 million to $115 million, despite headwinds from challenging external market conditions.

It also expects to generate underlying operating profit (underlying EBITDA) of between $4 million to $8 million, despite evolving regulatory requirements, product availability constraints, geopolitical disruption in the Middle East, increased use of air freight to support re-stocking, and competitive pressures.

Bubs is focused on expanding distribution and marketing to potential customers. The US remains its strongest growth market and a key part of its strategy. It’s concluding the use of air freight to restock the US. It says it’s on track to achieve ranging in more than 10,000 stores in July 2026.

According to CMC Invest, of three analyst ratings within the last three months, the average price target is 15 cents. At the time of writing, that implies a possible rise of 63%. It’s valued at 15x FY28’s estimated earnings.

Objective Corporation Ltd (ASX: OCL)

The other ASX share I’ll highlight today is Objective Corporation, a software business that has enabled thousands of public sector organisations to shift to digital operations.

While the ASX share is not growing at a rapid speed, it’s expanding at a pleasing rate for compounding. In the FY26 half-year result, it revealed revenue growth of 9% to $66.7 million, with annualised recurring revenue (ARR) growth of 12% to $120 million.

Profit is increasing at a faster pace than revenue – I love seeing rising profit margins. Adjusted operating profit (EBITDA) grew 11% to $25.9 million and net profit rose 10% to $18.7 million.

According to CMC Invest, there have been three recent ratings on the business, with an average price target of $16.93, suggesting a possible rise of 62%. It’s valued at 21x FY28’s estimated earnings, according to the forecast on CMC Invest.

The post 2 ASX shares tipped to grow 50% or more in the next 12 months appeared first on The Motley Fool Australia.

More reading

• Top broker says this small-cap ASX stock could rise almost 50%
• This ASX small-cap stock is sliding after a tough FY26 update
• 3 ASX 200 shares predicted to double over 12 months
• 2 ASX shares tipped to grow 60% or more in the next 12 months
• Here’s 3 ASX technology companies Shaw and Partners has flagged as a buy

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

Bell Potter believes the ASX 300 share in this article may be close to being fully valued.

As a result, the broker has slapped it with a downgrade today, citing concerns about softening sector fundamentals.

Which ASX 300 share?

The stock that Bell Potter has become less positive on this week is Abacus Storage King (ASX: ASK).

The broker has reviewed the self-storage operator’s internalisation plans and current trading conditions. Unfortunately, it thinks both are softer than the market expects.

Speaking about the internalisation, it said:

Earnings uplift on internalisation – Management guided to ~6% pro-forma FFO accretion in FY26 from internalisation cost savings alone. We are more conservative at +4.8% net accretion in FY27, as management fee savings are partially offset by higher interest costs from a larger debt base, the $300m facility upsize, and a rising yield curve.

Internalisation may drive a re-rate, with internally managed REITs trading at a narrower NTA discount (-24.8% vs -31.3% for externally managed). However, recent sector internalisations (BWP, GNZ) have not produced a material step-change in price-to-NTA. While market conditions may explain this, ASK’s free float (40.5%) could limit the extent of a re-rate.

As for current trading conditions, Bell Potter isn’t confident. It adds:

Management have highlighted rental rate pressure from discounting and competition, consistent with data suggesting street rents have remained broadly flat to slightly negative CYTD. While not expecting near-term yield expansion, channel checks suggest transaction flows have been muted in recent months in response to higher funding costs.

Shares downgraded

According to the note, the broker has downgraded the ASX 300 share to a hold rating (from buy) with a reduced price target of $1.50 (from $1.70).

Based on its current share price of $1.39, this implies potential upside of approximately 8%.

However, it is worth noting that a dividend yield of 4.4% is expected over the period. So, this boosts the total potential return beyond 12%, which isn’t bad for a hold recommendation.

Commenting on the downgrade, Bell Potter said:

We downgrade to a HOLD recommendation on ASK with earnings uplift from internalisation cost savings offset by rising funding costs, and a more cautious outlook on rental rate growth driven by increased competition and discounting. We believe earnings growth (BPe +4.8% FY27) is priced in, with ASK trading on 21.5x P/FFO (vs 13.6x passive REIT avg).

The post Why a top broker just downgraded this ASX 300 share appeared first on The Motley Fool Australia.

More reading

• Abacus Storage King internalises management and rebrands as Storage King Group

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

The superannuation system may be the best way for Australians to generate passive income because of how dividend payments are taxed at much lower rates compared to normal individual tax rates.

Passive income received in superannuation in the retirement portion of life could be tax-free. Isn’t that appealing?

Readers may be wondering how much an investor would need to receive a large amount of dividends each year. Let’s take a look at the required amount for that goal.

$9,000 of passive income each month from superannuation

Getting $9,000 per month would be $108,000 each year. That’d be a very satisfactory amount for most Australians and could fund a comfortable lifestyle.

How large the nest egg needs to be to receive $108,000 per year essentially boils down to what the portfolio yield is.

For example, if someone’s portfolio had an average dividend yield of 5%, they’d need a $2.16 million portfolio.

But, if the average dividend yield was 7.5%, an investor would need a $1.44 million portfolio.

If the average dividend yield were 3%, then an investor would require a portfolio size of $3.6 million.

There are plenty of options when it comes to aiming for these sorts of yields. I’ll point to a few ASX shares below. I have invested in a number of the names below to create a diversified, strong portfolio with a good yield and still have compelling growth prospects.  

Which ASX dividend shares I’d buy

There isn’t one right answer when it comes to investing for passive income in superannuation.

But it’s true that a business with a lower dividend yield may be investing more of its earnings back into itself to drive more growth for shareholders.

Some of the impressive businesses with a lower dividend yield include Lovisa Holdings Ltd (ASX: LOV), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and Wesfarmers Ltd (ASX: WES). I expect pleasing compounding of the dividend payout over the next three to five years.

Some of the compelling ASX dividend shares with a dividend yield of around 5% are names like exchange-traded fund (ETF) WCM Quality Global Growth Fund (ASX: WCMQ), listed investment company (LIC) Long Short Fund Ltd (ASX: LSF) and industrial real estate investment trust (REIT) Centuria Industrial REIT (ASX: CIP).

Turning to the higher-yield options I’d consider, names that spring to mind include WCM Global Growth Ltd (ASX: WQG), Future Generation Australia Ltd (ASX: FGX), Future Generation Global Ltd (ASX: FGG) and WAM Microcap Ltd (ASX: WMI).

The post How much is needed in superannuation to target a $9,000 monthly passive income? appeared first on The Motley Fool Australia.

More reading

• 5 years ago, $10,000 bought 181 Wesfarmers shares. But how many would it buy now?
• Why this ASX ETF is a retiree’s dream
• 2 ASX shares with dividend yields above 8%
• Australia’s minimum wage just rose 4.75%. Here is what it means for ASX consumer stocks
• Why’s the ASX 200 falling today despite another tech rally?

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Future Generation Global, L1 Long Short Fund, Wam Microcap, Washington H. Soul Pattinson and Company Limited, Wcm Global Growth, and Wcm Quality Global Growth Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Lovisa and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Wesfarmers Ltd (ASX: WES) share price has been a solid compounder over the last several years and its performance in the past half-decade has been very satisfactory, in my view.

As we can see on the chart above, the business has seen plenty of volatility in the years following COVID-19.

Despite that, the company has registered a capital gain of 44% over the prior five years, at the time of writing.

The owner of Kmart and Bunnings has done well for shareholders and I believe that it has the potential to continue rising.

How many Wesfarmers shares you could buy with $10,000

Five years ago, if an investor decided to put $10,000 into the ASX retail share, they could buy 181 Wesfarmers shares.

But, thanks to the pleasing gain of the business, an investor can now only buy 125 shares, at the time of writing.

Clearly, it would have been better to buy a few years ago then today with $10,000. But, we can also see that the business is cheaper now than it was between August to October 2025.

Is this the right time to invest in the ASX retail share?

The business has certainly seen plenty of economic changes in the last five years, with the end of the COVID-era consumer spending, the jump in inflation and interest rates, a few rate cuts last year and now more inflation and rate rises.

Through all of that, the business has served customers well and given them great value products through Kmart and Bunnings. At the same time, their scale and efficient spending have allowed those businesses to achieve a high return on capital (ROC), which in turn has led Wesfarmers to achieve a return on equity (ROE) of more than 30%.

The company has managed to regularly find a compelling place to put money to earn a good return.

For example, with its Anko product business, it has opened a number of stores in the Philippines, which gives it a useful growth avenue considering how large the population is there. I’m also excited by Wesfarmers expansion into lithium mining with how much the lithium price has risen in the last year.

According to CMC Invest, there have been eight ratings on the Wesfarmers share price in the last three months, with only two of those being a buy, five being a hold and one being a sell.

However, the average price target is $76.81, implying not much of a gain from here in the year ahead.

Therefore, there could be better ideas out there.

The post 5 years ago, $10,000 bought 181 Wesfarmers shares. But how many would it buy now? appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $9,000 monthly passive income?
• Australia’s minimum wage just rose 4.75%. Here is what it means for ASX consumer stocks
• Why’s the ASX 200 falling today despite another tech rally?
• My 3 best ASX 200 blue-chip shares to buy in June
• Wesfarmers shares: Buy, hold or sell?

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 positions in and has recommended Wesfarmers. 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.

Investing $500 a month into the share market may not feel like a life-changing amount.

But over long periods, regular investing can become surprisingly powerful.

For example, if an investor put $500 a month into the share market and achieved an average annual return of 10%, they could build a portfolio worth more than $1 million after 30 years.

That return is not guaranteed, but it is largely in line with historical averages, so could be possible.

With that in mind, here are three ASX exchange traded funds (ETFs) that could help investors build serious wealth over the long term.

Betashares Australian Quality ETF (ASX: AQLT)

The first ASX ETF for investors to look at is the Betashares Australian Quality ETF.

This fund gives investors exposure to a portfolio of high-quality Australian companies, selected using measures such as profitability, balance sheet strength, and earnings stability.

That makes it a different way to invest in the local market. Rather than simply leaning into the largest companies on the ASX, the fund applies a quality screen to find businesses with stronger financial characteristics.

Holdings include BHP Group Ltd (ASX: BHP), Telstra Group Ltd (ASX: TLS), and Wesfarmers Ltd (ASX: WES).

This mix gives investors exposure to resources, telecommunications, retail, financials, and other parts of the Australian economy, but with a focus on companies that meet the fund’s quality criteria.

For someone investing $500 a month, that discipline could be useful. It provides local market exposure while avoiding the need to decide which individual ASX blue chip deserves the next dollar. It was recently recommended by the team at Betashares.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

Another ASX ETF that could be worth considering for a $500 investment is the Betashares Global Cash Flow Kings ETF.

This fund is built around free cash flow. In simple terms, it looks for global companies that are good at generating surplus cash from their operations.

That is a powerful trait. Companies producing strong free cash flow can fund expansion, reduce debt, buy back shares, pay dividends, or keep investing when weaker competitors are under pressure.

Its holdings include NVIDIA (NASDAQ: NVDA), ASML Holding (NASDAQ: ASML), and Visa (NYSE: V).

What makes this fund interesting is that it is not just chasing growth for growth’s sake. It is looking for businesses with financial firepower. Over long periods, companies that consistently generate cash can have more options and more resilience.

It was also recently recommended by the team at Betashares.

VanEck MSCI International Quality ETF (ASX: QUAL)

A final ASX ETF for investors to consider buying is the VanEck MSCI International Quality ETF.

This fund gives investors exposure to global companies with quality characteristics, including strong returns on equity, stable earnings, and low financial leverage.

Its holdings include Broadcom (NASDAQ: AVGO), Microsoft (NASDAQ: MSFT), and Eli Lilly and Co (NYSE: LLY).

These are businesses operating in areas such as semiconductors, enterprise software, cloud computing, healthcare, and consumer technology. Many have strong competitive positions and the financial strength to keep investing through different market conditions.

Quality companies can be well placed to compound over time because they tend to have stronger margins, better balance sheets, and more durable earnings.

Used consistently, month after month, this type of ETF could help turn small regular investments into a much larger portfolio over the long run.

The team at VanEck has recommended this fund to clients.

The post 3 ASX ETFs that could turn $500 a month into serious wealth appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs I’d buy to build a portfolio from scratch
• Which ASX ETFs I’d buy for retirement investing
• MOAT vs QUAL: Which quality ASX ETF would I buy today?
• How to become a millionaire on a $70,000 salary
• Could this ASX ETF be the easiest way to invest in global quality?

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 ASML, Broadcom, Eli Lilly, Microsoft, Nvidia, Visa, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended ASML, BHP Group, Microsoft, Nvidia, Visa, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The difficult year continued yesterday for ASX financials stocks Bank of Queensland Ltd (ASX: BOQ) and MA Financial Group Ltd (ASX: MAF). 

Both companies hit fresh 52-week lows after falling roughly 1.5% each. 

Bank of Queensland shares are now down 22% over the past year. Meanwhile MA Financial Group is down more than 14%. 

These falls have far exceeded the minor fall from the S&P/ASX 200 Financials Index (ASX: XFJ) in the same period. 

While both have been impacted by sector headwinds, it appears they have now been oversold, creating an exciting buy low opportunity. 

Here is what brokers are saying about these ASX financials stocks moving forward. 

Can BOQ shake off poor results?

Bank of Queensland shares have suffered mightily since reporting disappointing half-year results last month. 

Investors were disappointed when the bank reported a 4% increase in revenue to $835 million, but a 20% drop in statutory net profit after tax to $136 million.

On the positive side, BOQ’s business mix continued to shift towards commercial lending, which grew by 16% over the half, while housing loan balances contracted.

There’s no doubt there are short term headwinds for ASX bank and financial stocks in the short term. 

Bank of Queensland remains heavily exposed to Australian housing lending. Competition for mortgages is intense, particularly from the major banks, forcing lenders to offer sharper pricing. 

This creates short term mortgage margin pressure, and Band of Queensland lacks the scale and low-cost deposit franchise of the Big Four banks. To attract and retain deposits, it often has to pay more competitive rates, which can squeeze profitability.

However the case for this ASX financials stock lies more in the value opportunity after being heavily sold off in the last year. 

It now sits at a yearly low of $6.11 per share. 

Morgans recently upgraded the stock to an accumulate rating largely on valuation grounds. 

Band of Queensland now sits 21% below the share price target from the broker of $7.39, making it an attractive buy-low option.

MA Financial Group has 50% upside

Meanwhile, it’s a similar story for MA Financial Group, which also appears to be undervalued. 

This ASX financials stock has continued to drop since its quarterly trading update in late April. 

But now sitting at yearly lows, brokers see plenty of rebound potential. 

It has recently attracted a buy rating by Ord Minnett, along with a target price of $9.20. 

This is almost 50% higher than the current share price, as the broker sees multiple growth drivers across its business lines. 

We see an attractive value proposition in MA Financial, with the stock trading on a one-year forward price-to-earnings (P/E) multiple of 14.7x, along with a forecast EPS compound annual growth rate (CAGR) of 23% over the FY25–28 horizon.

The post These 2 undervalued ASX financials stocks could be a once in a lifetime buy appeared first on The Motley Fool Australia.

More reading

• Brokers rate these 5 ASX 200 shares as a sell!
• Are ASX 200 bank shares a buy in June?
• This ASX bank ETF has a 5.2% dividend yield right now
• How Chalmers’ budget tips the scales for ASX 200 dividend shares like Stockland and NAB

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