Author: openjargon

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a disappointing decline. At the time of writing, the benchmark index is down 1.15% to 8,807.4 points.

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

Aeris Resources Ltd (ASX: AIS)

The Aeris Resources share price is down 10% to 38 cents. This morning, this copper producer announced that the Supreme Court of New South Wales has approved the acquisition of Peel Mining Ltd (ASX: PEX). Aeris’ executive chair, Andre Labuschagne, said: “The acquisition of Peel is a major milestone for Aeris and will underpin the future of our Tritton copper operations. We look forward to welcoming the Peel shareholders onto the Aeris register as we continue to grow the business, positioning Aeris as a leading Australian copper producer.” Judging by the share price weakness, it seems that some investors aren’t overly positive on the deal.

Newmont Corporation (ASX: NEM)

The Newmont share price is down almost 7% to $143.37. Investors have been selling gold miners today after the price of the precious metal weakened further overnight. The gold price is currently on track for its third weekly loss in a row in response to concerns over potential interest rate hikes in the United States. The S&P/ASX All Ords Gold Index is down over 4.5% at the time of writing.

PLS Group Ltd (ASX: PLS)

The PLS share price is down 4% to $5.92. This follows broad weakness in the mining sector, which has offset the release of a big announcement this morning. PLS revealed that its board has approved the early spending on its P2000 Project at Pilgangoora. The company’s CEO, Dale Henderson, said: “P2000 has the potential to represent the next major phase of growth at Pilgangoora and further strengthen PLS’ position as one of the world’s leading lithium producers. This pre-FID capital expenditure preserves optionality and maintains momentum along the critical path. By progressing long-lead procurement, engineering and early works now, we are positioning PLS to respond to future lithium demand while retaining optionality for the timing of any final investment decision.”

REA Group Ltd (ASX: REA)

The REA Group share price is down 3% to $139.89. This morning, Bell Potter reaffirmed its sell rating on the property listings company’s shares with a trimmed price target of $133.00 (from $137.00). The broker said: “We retain our Sell recommendation. Consensus EPS forecasts have recently declined by c.-2% in recent weeks, however, we still view 13% consensus growth for FY27e as having downside risk. Our thesis rests on REA’s share price declining from a reduction in EPS forecasts in-line with market pricing.”

The post Why Aeris, Newmont, PLS, and REA Group shares are tumbling today appeared first on The Motley Fool Australia.

More reading

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• 5 things to watch on the ASX 200 on Friday
• Buy, hold, sell: Liontown, Wildcat Resources, PLS Group shares
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro has positions in REA Group. 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.

Shares in SkyCity Entertainment Group Ltd (ASX: SKC) were surging higher on Friday after the company got whacked with a $21 million fine for serious breaches of its Adelaide Casino licence.

Bringing a dark chapter to an end

The fine follows a $67 million settlement in 2024 with the financial crimes regulator AUSTRAC, over the casino’s contravention of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). 

AUSTRAC said in 2024 that the casino had failed to carry out the required checks on 121 customers, “including where SkyCity knew customers were the subject of law enforcement interest, or where there were indications that some posed a higher risk of money laundering”.

AUSTRAC acting Chief Executive Peter Soros said at the time:

Criminals will always seek to take advantage of the gambling sector to clean their dirty money. If casinos and other gambling entities have weak anti-money laundering systems and controls, they leave themselves vulnerable to criminal exploitation. Money laundering is not a victimless crime. It happens because criminals are trying to clean their dirty money obtained by lucrative illegal activities like trafficking drugs or humans, and it is often reinvested to further criminal enterprises and amplify these harms.

The AUSTRAC process ran in parallel with an investigation by South Australia’s Commissioner for Liquor and Gambling into SkyCity’s suitability to hold the casino licence.

SkyCity given a to-do list

As part of the agreement announced today to the ASX, SkyCity will have to appoint a local Chief Executive, as well as an independent local board.

SkyCity will also have to phase out the use of cash for transactions greater than $4999, and there will be a prohibition on gambling junkets, which the company has already phased out.

SkyCity Chief Executive Officer Jason Wallbridge said the in-principle agreement was an important step for the company and reflected the work done over four years to improve the casino’s compliance culture.

We accept the findings that led to this outcome and take seriously the obligations we have committed to. The structural changes for the Adelaide Casino – including an independent board and locally-accountable leadership – reflect a genuine commitment to operating as a responsible casino operator. We are grateful for the constructive engagement of the Commissioner’s office throughout this process.

SkyCity will also have to appoint an independent compliance auditor reporting to the SkyCity Adelaide board.

SkyCity shares traded as high as 49 cents on the news before settling back to be 15.9% higher at 47.5 cents.

SkyCity is valued at $52.5 million.

The post Why is this ASX gambling stock jumping 15% today? appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, EOS, IDP Education, and SkyCity shares are charging higher today

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

A 10-year share is a different kind of investment.

It needs more than a good-looking valuation or a strong recent update. It needs a business case that can survive changing markets, different economic cycles, new competitors, and the occasional period when investors lose interest.

That is why I think the best question is not simply whether a share looks cheap today. I would ask whether I can still imagine the business being larger, more useful, and more valuable in a decade.

Here is how I would approach choosing ASX shares for the long term.

I’d look for a job that needs doing

The first thing I would want is a business that solves a problem customers keep facing.

That could be a bank helping households and businesses move money and access credit, a healthcare company improving patient outcomes, a software provider making daily operations easier, or an infrastructure owner connecting people, energy, goods, and data.

The exact industry is less important than the usefulness of the product or service.

A company with a clear job to do has a better chance of staying relevant. If customers rely on it, budget for it, and return to it, the business may have room to keep compounding.

This is why I like thinking about demand before thinking about the share price. A lower valuation can help, but the business still needs a reason to matter.

I’d favour businesses with room to reinvest

A good long-term share should have ways to put money back to work.

That might mean opening new stores, building new data centres, launching better products, acquiring sensible assets, expanding overseas, improving technology, or deepening relationships with existing customers.

The best companies do not simply earn profits. They find ways to turn today’s profits into tomorrow’s growth.

That is where I think businesses such as Goodman Group (ASX: GMG), Hub24 Ltd (ASX: HUB), and TechnologyOne Ltd (ASX: TNE) become interesting examples. Each has a clear pathway to reinvest if demand continues to grow.

For a 10-year holding, that reinvestment runway can be important.

I’d check the culture, not just the numbers

Numbers are important, but they do not tell the whole story.

A company can look attractive on paper and still disappoint if management allocates capital poorly, chases the wrong acquisitions, overpromises, or loses focus on customers.

I would want signs that management thinks like long-term owners.

That can show up in disciplined spending, sensible debt levels, clear strategy, honest communication, and a willingness to walk away from ideas that no longer make sense.

A business such as Wesfarmers Ltd (ASX: WES) is a useful example here. The company’s appeal is not only the brands it owns today. It is the way it has historically approached capital allocation, productivity, customer value, and portfolio discipline.

Over 10 years, those habits can make a meaningful difference.

I’d accept that the story will change

No 10-year investment stays exactly the same.

A company may shift into new markets, sell assets, buy competitors, change management, face new regulation, or deal with technology that did not exist when the investment was first made.

That means I would want to own businesses that can adapt.

A rigid business can look strong for a while, then struggle when the environment moves. A flexible business with strong customer relationships, good data, financial strength, and capable leadership has more ways to respond.

This is also why I would review long-term holdings periodically. Holding for 10 years does not mean ignoring the facts for 10 years. It means giving a good business enough time, while still checking that the original reasons for owning it remain intact.

Foolish takeaway

The ASX shares I would want to hold for 10 years are the ones with a clear reason to exist, room to reinvest, and management teams that can make sensible decisions when conditions change.

A long holding period gives investors the chance to benefit from compounding, but only if the business keeps earning that patience.

I think that is the real test. The best long-term shares are not always the loudest names in the market. They are often the businesses that keep becoming more useful, more efficient, and more valuable while time does the quiet work in the background.

The post How I’d choose the best ASX shares I could hold for 10 years appeared first on The Motley Fool Australia.

More reading

• How to invest in ASX shares when you can’t find stocks to buy
• Where I’d invest $2,000 in ASX 200 shares
• Which Aussie blue-chip stock is the best performer so far in 2026?
• Wesfarmers shares have surged 20% in a month. Buy now?
• Warning! 5 ASX stocks to fall 20% or more: Experts

Motley Fool contributor Grace Alvino has positions in Hub24 and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Hub24, Technology One, and Wesfarmers. The Motley Fool Australia has recommended Goodman Group, Hub24, Technology One, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Audinate Group Ltd (ASX: AD8) shares are roaring higher on Friday despite having a rough few days.

At the time of writing, the Audinate share price is up 20.29% to $2.105.

That’s a big move, but it follows a heavy sell-off. The ASX tech stock hit a 52-week low of $1.71 yesterday after falling more than 10% earlier in the week.

Even after today’s jump, Audinate shares are still down almost 50% since the start of 2026 and around 70% lower than this time last year.

So, what’s going on?

Bargain hunters step back in

Despite the gain, there hasn’t been any new price-sensitive announcement from Audinate today.

Instead, the latest move looks more like some investors are returning after the stock’s heavy fall.

The company’s share price has been under pressure for months as investors have worried about slower growth, weaker earnings, and higher costs.

Audinate develops and sells digital audio-visual networking products, mainly through its Dante platform. Dante is used to send audio and video signals across computer networks and is used in more than 3,800 networked audio and video products worldwide.

The company services areas such as live music, events, recording studios, commercial installations, and broadcast.

But while Audinate has a unique market position, the market has become less willing to pay high prices for growth companies that aren’t delivering strong earnings.

What did the latest result show?

Audinate’s first-half result in February showed revenue of US$21.1 million, up 12% on the prior corresponding period. Gross profit rose to US$17.4 million, while its gross margin held at 82.6%.

The company also reported 66 Dante design wins during the half, an 8% increase on the prior period.

However, the market was more focused on costs and earnings. Audinate reported an underlying EBITDA loss of US$2.3 million, and higher operating expenses took some of the shine off the return to revenue growth.

Broker targets still sit well above today’s price

Broker views on Audinate remain mixed after the recent fall.

Morgan Stanley cut its target price to $3 but kept an overweight rating, while UBS reduced its target to $6.10 but remained positive on the stock.

Macquarie has taken a more cautious stance, with a neutral rating and a reduced price target of $3.20.

Even though the lower targets remain well above the current share price, that doesn’t mean the stock is suddenly out of trouble.

Audinate still needs to show that its revenue growth can turn into better earnings.

Then again, it’s not surprising to see some bargain hunting after the stock’s heavy fall this year.

The post This ASX tech stock just jumped 20% after hitting a 52-week low appeared first on The Motley Fool Australia.

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

If I had $2,000 to invest in ASX 200 shares, I would want to be selective.

The ASX has no shortage of large companies, but I would be looking for businesses with durable market positions, sensible growth options, and the ability to keep rewarding shareholders over time.

With that in mind, here are three ASX 200 shares I would consider buying.

Cochlear Ltd (ASX: COH)

Cochlear is one ASX 200 share I would happily add to a long-term portfolio.

The company is a global leader in implantable hearing solutions. That gives it exposure to a need that is unlikely to disappear. Hearing loss can affect communication, confidence, work, education, and social connection, so the value of a successful hearing solution can be very high for patients.

What I like about Cochlear is that it is not just selling a device. It operates in a specialist healthcare market where clinical relationships, surgeon training, product reliability, software, upgrades, and long-term patient support all count. That can create a powerful ecosystem.

The company also has a long runway as populations age and awareness of hearing loss improves. Access and affordability can still vary significantly across countries, which means Cochlear’s opportunity is not limited to one mature market.

The share price can be sensitive to currency movements, hospital activity, competition, and valuation expectations. But if I were investing with a multi-year view, I think Cochlear’s combination of healthcare need, global reach, and specialist expertise would make it a strong candidate.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is another ASX 200 share I would consider buying.

I think the appeal comes from the way the company thinks about capital. Wesfarmers has a long history of owning businesses, improving them, reinvesting where it sees attractive returns, and making changes when the opportunity set shifts. That gives it a different feel to a simple retailer.

Its major retail operations give the group exposure to everyday consumer spending, home improvement, value-focused shopping, office products, health, and industrial activity. But I think the more important point is that Wesfarmers has shown discipline across many cycles.

The company tends to focus on productivity, customer value, supply chains, data, and operational improvement. Those things may not sound exciting, but they can make a big difference over long periods.

A premium valuation is often the main challenge with Wesfarmers. It is rarely ignored by the market. Even so, I think a high-quality business that keeps finding ways to improve can still be worth owning for the long term.

National Australia Bank Ltd (ASX: NAB)

National Australia Bank is a bank share I would include in this group.

NAB gives investors exposure to the Australian economy through home lending, deposits, business banking, and everyday financial services. What makes it particularly interesting to me is its strength in business banking.

Small and medium-sized businesses need banking relationships, credit, payments, accounts, and advice as they grow. NAB has a strong position in that part of the market, which gives it a slightly different profile to a purely mortgage-focused bank.

Banks can be cyclical. Bad debts, funding costs, competition, regulation, and housing market conditions all need to be watched. But I think NAB offers a reasonable mix of income, scale, and economic exposure.

For a $2,000 investment, I would not be buying NAB because I expect spectacular growth. I would be buying it because a strong bank can provide a useful backbone to a portfolio, especially if dividends are reinvested over time.

Foolish takeaway

If I had $2,000 to invest in ASX 200 shares, I would focus on quality rather than trying to find the most exciting short-term idea.

I would want businesses that can stay useful, reinvest sensibly, and keep creating value through different market conditions. These three shares are not risk-free, and they will not all perform well at the same time. But I think they offer a sensible mix of healthcare, consumer, and financial exposure.

For me, that would be a practical way to put $2,000 to work with a long-term mindset.

The post Where I’d invest $2,000 in ASX 200 shares appeared first on The Motley Fool Australia.

More reading

• How to invest in ASX shares when you can’t find stocks to buy
• How I’d choose the best ASX shares I could hold for 10 years
• Which Aussie blue-chip stock is the best performer so far in 2026?
• Wesfarmers shares have surged 20% in a month. Buy now?
• Warning! 5 ASX stocks to fall 20% or more: Experts

Motley Fool contributor Grace Alvino has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and Wesfarmers. The Motley Fool Australia has recommended Cochlear and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is having a tough finish to the week. In afternoon trade, the benchmark index is down 1.1% to 8,815 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up 5% to $6.43. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has upgraded the infant formula company’s shares to a buy rating (from neutral). The broker made the move on valuation grounds following a significant de-rating in recent months. UBS feels that the selling, which was driven by concerns over a product recall, has been overdone.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is up 13% to $10.58. Investors have been buying this defence and space company’s shares after it announced a major sales order from the United Arab Emirates. EOS revealed that it has secured a US$124 million (~A$175 million) order for its Slinger Counter-Drone Remote Weapon System (RWS). It notes that the system will be supplied to Generation 5 Holding, which is a 100% United Arab Emirates owned provider of defence equipment, technology and services headquartered in Abu Dhabi. The order includes the RWS, cannon, spares, training, and other supplies.

IDP Education Ltd (ASX: IEL)

The IDP Education share price is up over 5% to $2.53. This has been driven by the release of a trading update and news that the language testing and student placement company is launching a $50 million share buyback. IDP Education expects its EBIT to grow marginally in FY 2026 to $122 million (from $119 million in FY 2025). A key driver of this has been its cost-out program. Management advised that it is now expecting a $30 million net reduction in the cost base in FY 2026, which is ahead of the $25 million target previously announced.

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity share price is up 16% to 47.7 cents. Investors have been buying the casino operator’s shares following the release of an update on its Adelaide operation. SkyCity revealed that it has entered into an agreement with the Commissioner for Liquor and Gambling in South Australia to resolve all outstanding regulatory matters. The company’s CEO, Jason Walbridge, said: “Reaching this in-principle agreement is an important step for SkyCity and reflects the significant work our team has done over the past 4 years to transform our compliance culture, strengthen our governance, and earn back the trust of our regulators. We accept the findings that led to this outcome and take seriously the obligations we have committed to.”

The post Why A2 Milk, EOS, IDP Education, and SkyCity shares are charging higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. 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.

4DMedical Ltd (ASX: 4DX) is once again one of the standout performers on the ASX.

On Friday afternoon, the ASX healthcare share was up 11% to $4.29, defying a weak broader market that saw the S&P/ASX 200 Index (ASX: XJO) fall around 1%.

The longer-term performance is even more remarkable. Over the past 12 months, 4DMedical shares have soared approximately 1,616%, leaving the benchmark index’s 3.3% gain in the dust.

So, what keeps driving this ASX healthcare stock higher?

No fresh news, plenty of momentum

Interestingly, there doesn’t appear to be any new ASX announcement today that would fully explain the latest jump of the ASX healthcare share.

Instead, investors seem to be continuing to respond to a string of major developments announced in recent weeks, as well as growing confidence in the company’s long-term commercial opportunity.

4DMedical develops advanced respiratory imaging technology that helps clinicians assess lung function in ways that traditional imaging methods cannot. Its flagship products use proprietary software and artificial intelligence to generate detailed functional images of the lungs, providing valuable insights for diagnosis and treatment.

As healthcare systems increasingly embrace AI-powered diagnostic tools, investors appear to be betting that 4DMedical is well positioned to benefit.

Expanding globally

One of the company’s most significant recent moves was its acquisition of Austrian AI imaging company Contextflow.

The deal gives the $2.5 billion ASX healthcare share an immediate commercial foothold in Europe, access to lung cancer screening technology, and established reimbursement contracts in Germany.

Management estimates the acquisition expands its addressable market by approximately 50%, significantly increasing the company’s growth runway.

The transaction also strengthens 4DMedical’s position at the intersection of medical imaging and artificial intelligence, two sectors attracting substantial investor attention.

Entering a multi billion dollar US market

Investors have also welcomed the company’s progress in the lucrative US healthcare market.

Recently, the ASX healthcare share announced a major commercial agreement with SimonMed, one of the largest outpatient medical imaging providers in the US, operating more than 170 imaging sites.

The partnership represents another important step in the rollout of the company’s CT:VQ lung imaging technology and provides access to a large network of potential patients and healthcare providers.

Earlier this month, the company also launched its CLEAR clinical program targeting acute pulmonary embolism.

Management believes this initiative could expand the US addressable market for CT:VQ to around US$3 billion, highlighting the scale of the opportunity ahead if adoption continues to grow.

What are the risks?

Despite the excitement, investors should remember that 4DMedical remains a high-growth healthcare company.

The valuation of the ASX 200 healthcare share valuation has risen sharply, and expectations are now significantly higher than they were a year ago. Commercial adoption, reimbursement outcomes, and execution will all be critical to justifying the stock’s meteoric rise.

To keep the momentum going, management will need to continue converting clinical success into revenue growth, expand adoption of its technology across healthcare networks, and successfully integrate its European expansion strategy.

If it can deliver on those objectives, investors may believe the company’s remarkable run still has further to go.

The post Why this red-hot ASX healthcare share keeps climbing 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 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.

Morgans has named a number of ASX shares as buys, and three very different opportunities stand out to me.

One is a wine company trying to rebuild returns. One is a wagering and gaming business dealing with a regulatory cloud. The other is a furniture retailer with a long history of disciplined expansion.

That mix makes this interesting. These are not lookalike recommendations, with each buy call being driven by a different investment case.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine Estates is one ASX share Morgans thinks investors should be buying.

The broker has a buy rating and a $5.95 price target on the wine giant. Based on the current share price of around $4.79, that suggests potential upside of around 24%.

Morgans believes Treasury Wine’s recent Investor Day was the positive share price catalyst it had been expecting. The broker pointed to ongoing depletions growth and noted that the mid-point of FY26 EBITS guidance was slightly ahead of consensus estimates.

But the bigger part of the investment case appears to be what comes next.

Treasury Wine has been working through a transformation program called Ascent. Morgans believes this program can support sustainable, high-quality earnings growth and help deleverage the balance sheet over the medium to long term.

That is important because Treasury Wine has not always delivered the returns investors hoped for. The company owns premium brands, including Penfolds, but the share market has wanted clearer evidence that the business can convert those brands into more attractive financial outcomes.

Morgans has upgraded its FY27 and FY28 forecasts and says the stock is trading on low multiples. It also believes new management can deliver more acceptable returns over time.

I think that makes Treasury Wine an interesting recovery-style buy, provided investors are comfortable with the execution risk.

Tabcorp Holdings Ltd (ASX: TAH)

Tabcorp is another ASX share Morgans recommends as a buy.

The broker recently upgraded the wagering company from accumulate to buy and placed a $1.07 price target on the stock. With Tabcorp shares trading around 87 cents, that implies potential upside of roughly 23%.

The backdrop is unusual. Morgans notes that Tabcorp’s share price has fallen approximately 37% since AUSTRAC’s investigation was announced earlier this month.

Regulatory investigations can hang over a stock for some time, and Morgans expects this one to remain an overhang for the foreseeable future. But at current levels, the broker believes Tabcorp looks materially undervalued.

Morgans argues that the roughly $960 million fall in market value is overly pessimistic and appears to reflect a very bearish scenario. The broker has taken a cautious approach by adding incremental operating costs linked to remediation in its base case, while noting that every 1% increase in compliance costs would reduce EBITDA by 1.6%.

The investment case here rests on valuation, current trading conditions, and the possibility that the market has reacted too harshly.

Nick Scali Ltd (ASX: NCK)

Nick Scali is the third ASX share on Morgans’ buy list.

The broker recently initiated coverage with a buy rating and a $17.84 price target. Based on the current share price of around $16.39, that suggests upside of around 9%.

Morgans describes Nick Scali as a high-quality retailer with a long track record. The broker highlights its history of long-term earnings per share growth through disciplined store rollout, like-for-like growth, strong margins, and operating leverage.

I think the business model is the appealing part here. Nick Scali has shown that furniture retailing can be highly profitable when the store network, product range, pricing, and cost base are managed well.

Morgans also points to strong cash generation and the company’s balance sheet. It notes that the business benefits from structural negative working capital, high cash conversion, and relatively low capital intensity when opening new stores.

That leaves room for dividends, property purchases, and growth.

The broker also sees more store rollout optionality, including Plush and Nick Scali growth in Australia and New Zealand, as well as a UK opportunity.

Foolish takeaway

These three Morgans buy calls are interesting because they are not built around the same theme.

Treasury Wine is a recovery story, Tabcorp is a valuation call under a regulatory cloud, and Nick Scali is a quality retailer with rollout potential.

Each carries risk, and none should be treated as a simple bargain just because a broker is positive. But for investors looking across different parts of the ASX, I think these three shares are worth a closer look.

The post Morgans recommends these ASX shares as buys appeared first on The Motley Fool Australia.

More reading

• 6 ASX shares upgraded by analysts this week
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Motley Fool contributor Grace Alvino 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 Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. 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.

It’s fair to say that interest in hydrogen technologies has waned on the ASX from the hype it was seeing a few years ago. Yet you wouldn’t know that judging from the performance of the ASX’s only hydrogen exchange-traded fund (ETF).

That sole flagbearer for hydrogen technology is the aptly-named Global X Hydrogen ETF (ASX: HGEN). This ETF pretty much does what it says on the tin. It offers ASX investors exposure, through the tracking of the Solactive Global Hydrogen ESG Index, to some of the leading companies in the production, development and commercialisation of hydrogen and fuel cell technology.

Hydrogen remains an area of interest for investors looking to harness the next generation of energy infrastructure. It has potential applications that range from fuel-cell batteries to the production of green steel and ammonia, and even potentially nuclear fusion.

HGEN’s portfolio is truly international. US stocks make up just under 38% of the portfolio, with South Korea contributing another 19%. Other countries that are present include Taiwan, Britain, Belgium, and Japan.

This hydrogen ETF counts the likes of Bloom Energy, Kaori Heat, Doosan Fuel Cell, Plug Power, Screen Holdings, Ceres Power, and Hyundai Engineering & Construction as top holdings.

But let’s talk performance.

How has this ASX hydrogen ETF delivered 155% in 12 months?

As you may have gleaned from the headline, this ASX hydrogen ETF has exploded in value over the past 12 months. HGEN units alone were going for just $4.82 each this time last year. At the time of writing, those same units are worth $12.31. That’s a rise worth more than 155%.

Year to date in 2026, the Global X Hydrogen ETF has gained an equally impressive 74.6%.

It seems that top holding Bloom Energy is mostly to thank for this incredible performance. This US-listed fuel cell manufacturer has exploded about 1,430% higher over the past 12 months, and by 233% in 2026 to date.

HGEN’s performance has been a little more muted if we zoom out, however. As of 17 June, this ETF has delivered an average of 201.2% per annum over the past three years. Since its inception in 2021, we are looking at a return of just 4.3% per annum.

Even so, no doubt many HGEN investors won’t mind, given the stonking returns of the past 12 months (and respectable ones from the past three years).

Let’s see what happens with HGEN over the rest of 2026 and beyond.

The Global X Hydrogen ETF charges a management fee of 0.69% per annum.

The post This ASX hydrogen ETF is up 155% in 12 months appeared first on The Motley Fool Australia.

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

The S&P/ASX 200 Index (ASX: XJO) is having a tough session on Friday as investors react to weakness across several heavyweight corners of the market.

During midday trade, the ASX 200 is down 0.96% to 8,825 points.

That puts the benchmark index near its lowest level in 5 sessions, with more than half of the top 200 stocks trading in the red.

At the latest check, 108 shares are falling, 83 are rising, and 9 are unchanged.

So, what is dragging the market lower today?

BHP weighs on the market

The biggest drag is coming from the S&P/ASX 200 Resources Index (ASX: XJR) after BHP Group Ltd (ASX: BHP) shares dropped 3.68% to $62.65.

The decline follows news of another cost blowout at the mining giant’s Jansen potash project in Canada. BHP has revealed higher expected costs for the second stage of the project, raising new concerns about its capital spending.

This has also put pressure on other big miners.

Rio Tinto Ltd (ASX: RIO) shares are down 2.91% to $177.75, while Fortescue Ltd (ASX: FMG) shares have slipped 0.75% to $19.82.

Banks are mixed

The big banks are also adding to the weakness today.

Commonwealth Bank of Australia (ASX: CBA) shares are down 0.60% to $161.26, while Westpac Banking Corp (ASX: WBC) shares are down 0.68% to $34.92.

ANZ Group Holdings Ltd (ASX: ANZ) shares have fallen 0.94% to $34.81.

However, National Australia Bank Ltd (ASX: NAB) shares are bucking the trend, up 0.40% to $37.49.

Not everything is falling

Despite the heavyweights pulling down the ASX 200, there are still a few bright spots on the board.

CSL Ltd (ASX: CSL) shares are up 2.96% to $111.28, giving the S&P/ASX 200 Health Care Index (ASX: XHJ) a lift after a difficult run in recent months.

Aristocrat Leisure Ltd (ASX: ALL) shares are also higher, rising 1.03% to $54.10, while Coles Group Ltd (ASX: COL) shares are up 0.86% to $23.57.

Meanwhile, Wesfarmers Ltd (ASX: WES) shares are slightly higher at $85.85, and Telstra Group Ltd (ASX: TLS) shares are up 0.10% to $5.075.

What happens from here?

The ASX 200 is still higher over the past month, so today’s drop hasn’t wiped out the recent run.

Nonetheless, the weakness in resources and banks shows how quickly the market can turn when its largest sectors move lower.

US markets are closed on Friday for the Juneteenth holiday, which means investors will have to wait until Monday night for the next move from Wall Street.

The post Why is the ASX 200 sinking to a 5 day low today? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended BHP Group, CSL, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.