Author: openjargon

The team at Morgans have updated their outlook on three well known ASX listed companies this week. 

Two have received hold recommendations while one has drawn a clear positive outlook. 

Here is the latest from the broker. 

ASX Ltd (ASX: ASX)

Morgans said that ASX has recently released its monthly trading activity report for June 2026. 

It was a mixed trading month overall for ASX, in our view, with higher cash markets activity (+54% volume on pcp), a downturn in raisings and stronger average daily futures/options contracts in June. Our FY27-FY28 EPS forecasts increased by ~+2% factoring in the recent trading activity. Our price target is increased to A$53.90 (from A$51.50). HOLD maintained.

ASX shares closed trading at $53.49 yesterday. 

PEXA Group Ltd (ASX: PXA)

PEXA Group has been drawing positive ratings from experts recently. 

However Morgans appears less optimistic. 

PEXA recently responded to a draft decision by the NSW pricing regulator (The Independent Pricing and Regulatory Tribunal) that would cut the fees it can charge for its dominant electronic property settlement platform by about 20% from July 2027. 

This would potentially reduce annual revenue by around $70 million.

Commenting on the release, Morgans said: 

The headline read-through from IPART’s draft report on proposed pricing changes for PXA is an anticipated reduction in revenue of A$70m (~20%) in year 1. We think a 20% hit to exchange revenue was much more punitive than consensus market expectations. Applying the cut in one year, rather than phasing it in over multiple years, adds to the disappointment. Our price target is reduced to A$9.35 (from A$14.23).

We Move PXA to HOLD. Proposed outcomes here are worse than expected, and this creates significant uncertainty around PXA’s future profit profile and its overall operating environment.

PEXA shares closed trading yesterday at $8.44 per share. 

Qantas Airways Ltd (ASX: QAN)

After struggling earlier this year due to global conflict and soaring oil prices, Morgans now sees a rebound in store for Qantas shares. 

The broker said Qantas’s post-COVID balance sheet strengthening and cost discipline have positioned it to absorb the current fuel cost shock and consumer softness with genuine resilience. 

We forecast 2H26 PBT to be down on pcp as fuel and economic conditions bite, with FY27 forecast to deliver a moderate uplift. We view FY27 as a transition year for Qantas with higher growth expected from FY28 onwards as oil prices, refining margins and demand normalise. Structural growth drivers (fleet renewal, Project Sunrise, Loyalty scaling toward FY30 target) remain intact.

Morgans has initiated coverage on Qantas shares with an accumulate rating and $11.50 price target. 

Qantas shares closed at $10.60 yesterday. 

The post Buy, hold or sell, PEXA, ASX and Qantas shares appeared first on The Motley Fool Australia.

More reading

• How much do I need in my superannuation to get $6,000 per month in passive income?
• 2 ASX 200 stocks that could rise 31% and 121%
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Three ASX 200 companies Macquarie says are a buy right now

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

Telstra Group Ltd (ASX: TLS) is one of those ASX dividend shares that many investors already know well.

But for investors thinking about passive income, does Telstra still have the right mix of cash flow, reliability, and yield to deserve a place in a long-term income portfolio?

In my view, the answer is yes.

A business people keep using

The reason I like Telstra for income is not just that it pays dividends. It is that the business sits behind a huge amount of daily activity.

Every time people use mobile data, stream content, run a business from a phone, process digital payments, work remotely, check maps, use apps, or stay connected while travelling, telecommunications infrastructure is doing part of the work.

That gives Telstra a useful role in the economy. It is not selling a product customers buy once and forget. It is providing connectivity that people and businesses keep using every day.

That does not make Telstra immune from competition. Mobile plans, customer churn, network investment, satellite internet, and regulation are all worth keeping an eye on. But I think the underlying demand for reliable connectivity is about as durable as it gets.

The yield looks attractive

Telstra shares are currently trading around $5.07.

According to CommSec consensus estimates, the company is expected to pay dividends per share of 21 cents in FY26 and 21.5 cents in FY27.

At the current share price, that implies forward dividend yields of around 4.1% and 4.2%.

It may not offer the highest yield available on the ASX, but I think income investors should be careful about chasing a bigger number. A slightly lower yield from a more dependable business can be far more useful than a larger yield that later gets cut.

A $10,000 investment at $5.07 per share would buy about 1,972 shares. Based on the FY26 forecast dividend, that holding could generate roughly $414 in annual dividend income. Based on the FY27 forecast, the income would be around $424.

That is before tax and any franking credits. That looks attractive to me, especially for a business with defensive characteristics.

Why I’d buy

I think Telstra’s appeal comes from the combination of everyday demand and improving focus.

The company has spent years simplifying itself, investing in its networks, and leaning into its strongest asset: connectivity. That may not sound exciting, but I think it can be valuable for passive income investors.

Telstra’s mobile network remains a major competitive advantage. Customers may look for value, but reliability, coverage, and speed still count. For households and businesses, losing connection is more than an inconvenience.

That gives Telstra pricing power that many companies would like to have.

There are risks. Capital expenditure is ongoing, competition remains active, and dividend growth is unlikely to be dramatic every year.

But I think Telstra offers something useful in an uncertain economic environment: a business built around a service that remains essential even when consumers are watching their budgets.

Foolish takeaway

I think Telstra shares are a buy for passive income.

The forecast yield is attractive, but the bigger appeal is the nature of the business behind it. Connectivity is now woven into work, payments, entertainment, travel, security, and everyday communication.

That gives Telstra a defensive quality I value.

The shares may not deliver explosive growth, and investors should still watch competition and network spending. But for those wanting ASX passive income from a business with steady demand, I think Telstra looks like a strong option to buy today.

The post Are Telstra shares a buy for passive income? appeared first on The Motley Fool Australia.

More reading

• How much do I need in my superannuation to get $6,000 per month in passive income?
• How much is needed in superannuation to target a $70,000 annual passive income?
• 5 of the best investments on the ASX right now to complement your superannuation
• If I invest $8,000 in Telstra shares, how much passive income will I receive in 2027?
• How much do I need in superannuation to receive $5,500 per month in passive income?

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.3% to 8,803.9 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 to open slightly lower

The Australian share market looks set for subdued session on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points lower. In late trade in the United States, the Dow Jones is down 0.25%, the S&P 500 is down 0.3%, and the Nasdaq has dropped 0.75%.

Oil prices race higher

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day of trade on Wednesday after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2.9% to US$70.53 a barrel and the Brent crude oil price is up 3.1% to US$74.22 a barrel. This followed reports of attacks on tankers in the Strait of Hormuz.

Buy Netwealth shares

The team at Bell Potter continues to see value in Netwealth Group Ltd (ASX: NWL) shares. This morning, in response to a quarterly update, the broker has retained its buy rating and $30.00 price target on the investment platform provider’s shares. It said: “Our Buy rating is unchanged, and we upgrade our net flow estimates +8% FY27-29. Building in margin guidance prompts us to downgrade EPS -7%/-4% and we leave headroom on the FUA target. NWL is looking to replicate EPS growth. The mandate win is the first example of a catalyst, independent of any potential vendor attrition.”

Gold price softens

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a soft session on Wednesday after the gold price softened overnight. According to CNBC, the gold futures price is down 0.35% to US$4,153 an ounce. Rising oil prices have sparked fears of rising inflation and interest rate hikes.

A2 Milk shares go ex-dividend

A2 Milk Company Ltd (ASX: A2M) shares are going ex-dividend this morning and could trade lower. Last month, the infant formula company declared a fully franked special dividend of 28.8 cents per share. Based on its last close price of $7.37, this represents an attractive 3.9% dividend yield. Eligible shareholders can look forward to receiving this dividend later this month on 24 July.

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• ASX 200 slips again: Why the market can’t follow Wall Street higher
• A2 Milk shares jump again as China worries start to ease
• Qube Holdings: Supreme Court approves takeover scheme
• Summerset Group delivers Q2 update

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

Investing in superannuation is a great way to generate a passive income for your retirement years.

Not only does your super help to build wealth for later on in life, but it also comes with the added bonus of low tax rates and the benefit of long-term compounding.

But how much do you actually need to be able to get the passive income you want when you transition to your pension phase?

Let’s investigate using a $6,000-per-month passive income as a guide.

How much do I need in superannuation to get $6,000 of monthly passive income?

If you want to earn $6,000 in passive income every month from your superannuation, that equates to $72,000 per year in dividend payments.

In order to work out what superannuation balance you’d need to get that level of income, simply divide your annual passive income by the dividend yield.

The tricky part of the calculation is that the answer varies widely depending on the dividend yield of your portfolio. 

For example, a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income. 

How much do I need if my portfolio yields 3% to 7%?

If your overall portfolio has a dividend yield of around 3%, you’ll need a balance of around $2.4 million to earn $72,000 per year in passive income.

A $2.4 million portfolio isn’t achievable for many Australian investors, but the good news is that, as the dividend yield of your portfolio increases, the superannuation balance needed to earn the same passive income goes down.

Say the yield of your portfolio is around 4% or 5%, for example, your balance would need to be closer to $1.8 million or $1.44 million to earn the same dividend income. Again, these are huge numbers for a superannuation portfolio, but if you raise the yield a little higher, it’s even more achievable.

A superannuation investment portfolio yielding around 6% would need to be around $1.2 million in order to earn $72,000 per year in dividend payments.

Meanwhile, a 7% dividend yield would need closer to $1 million to earn the same amount in passive income. 

Note, though, that while it’s tempting to build a portfolio with a lower amount and a high yield, it can be risky from an investment perspective. Generally, the higher the yield, the higher the risk associated with that ASX stock. Instead, you should concentrate on good-quality stocks that are proven to stand the test of time.

Ok, so what ASX shares can I buy around these dividend yields?

There is a huge range of shares available, but here are some of my favourites.

Lower-yielding ASX dividend-paying shares such as Wesfarmers Ltd (ASX: WES), Evolution Mining Ltd (ASX: EVN), and Washington H. Soul Pattinson and Co Ltd (ASX: SOL) are solid and reliable shares that offer a yield of around 2% to 3%.

For a mid-range yielding ASX dividend option, I’d look at defensive assets like Telstra Group Ltd (ASX: TLS). Qantas Ltd (ASX: QAN) is a good option if you want travel exposure. Meanwhile, Yancoal Australia Ltd (ASX: YAL) and blue-chip majors like BHP Group Ltd (ASX: BHP) pay a decent dividend of around 3% to 4%.

For a higher 5% to 6% dividend yield, I’d look at reliable payers like APA Group (ASX: APA) or Origin Energy Ltd (ASX: ORG).

If you want to take on more risk and go for a much higher-yielding ASX stock, my picks would be something like IPH Ltd (ASX: IPH) or the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX). These typically yield around 9% or more.

The post How much do I need in my superannuation to get $6,000 per month in passive income? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Life360, South32, Wesfarmers shares
• How should I invest my money in FY27?
• How much is needed in superannuation to target a $70,000 annual passive income?
• 5 things to watch on the ASX 200 on Tuesday
• 5 of the best investments on the ASX right now to complement your superannuation

Motley Fool contributor Samantha Menzies 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 Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group, IPH Ltd , and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was a volatile and pessimistic Tuesday session for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Tuesday. After briefly opening ahead in the early hours of trading today, the ASX 200 quickly fell into negative territory. Despite playing jump rope with the breakeven line for some of the day, investors kept their feet cold until the closing bell, recording a 0.31% loss for the day.

That leaves the index at 8,803.9 points.

This tough Tuesday for ASX investors comes despite a much bubblier night of trading over on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) remained in fine form, gaining 0.29%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) did even better, rising 1.12%.

Let’s return to tour local markets now and take stock of how the various ASX sectors fared amid today’s trading conditions.

Winners and losers

Despite the market’s falls, there were a few sectors that put on weight this Tuesday.

But first, it was gold stocks that were first in the firing line. The All Ordinaries Gold Index (ASX: XGD) was smashed this session, crashing down 4.28%.

Broader mining shares were hit hard as well, with the S&P/ASX 200 Materials Index (ASX: XMJ) plunging 2.64%.

Real estate investment trusts (REITs) also had a day to forget. The S&P/ASX 200 A-REIT Index (ASX: XPJ) tanked 1.34% today.

Energy stocks were on the nose too, evidenced by the S&P/ASX 200 Energy Index (ASX: XEJ)’s 1.28% dive.

Utilities shares didn’t escape the storm either. The S&P/ASX 200 Utilities Index (ASX: XUJ) cratered 0.55% this Tuesday.

Industrial stocks suffered a similar fate, with the S&P/ASX 200 Industrials Index (ASX: XNJ) dipping 0.45%.

Healthcare shares were unlucky too. The S&P/ASX 200 Healthcare Index (ASX: XHJ) sank 0.11% today.

Our last losers were consumer staples stocks, illustrated by the S&P/ASX 200 Consumer Staples Index (ASX: XSJ)’s 0.03% slip.

Turning to the winners now, it was tech shares that were the stars of today’s show. The S&P/ASX 200 Information Technology Index (ASX: XIJ) soared up 2.01% this session.

Communications stocks also ran hot, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) surging 1.58%.

Financial shares got a reprieve as well. The S&P/ASX 200 Financials Index (ASX: XFJ) jumped 1.25%.

Finally, consumer discretionary stocks had a nice Tuesday, as you can see from the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ)’s 0.69% rise.

Top 10 ASX 200 shares countdown

Today’s top index stock was financial share Netwealth Group Ltd (ASX: NWL). Netwealth stock flew 6.73% higher this session to close at $24.43 a share. 

This came after the company revealed its outlook for FY26, as well as some other developments.

Here’s how the other winning stocks landed their planes: 

ASX-listed company	Share price	Price change
Netwealth Group Ltd (ASX: NWL)	$24.43	6.73%
WiseTech Global Ltd (ASX: WTC)	$37.37	5.65%
NextDC Ltd (ASX: NXT)	$13.80	3.60%
ARB Corporation Ltd (ASX: ARB)	$18.72	3.14%
Car Group Ltd (ASX: CAR)	$26.83	2.99%
AUB Group Ltd (ASX: AUB)	$28.49	2.59%
REA Group Ltd (ASX: REA)	$147.28	2.51%
Bank of Queensland Ltd (ASX: BOQ)	$6.31	2.44%
Westpac Banking Corp (ASX: WBC)	$36.13	2.38%
Ampol Ltd (ASX: ALD)	$34.31	2.27%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with yields over 4% right now
• ASX 200 slips again: Why the market can’t follow Wall Street higher
• WiseTech shares surge 10% as Richard White steps back from chair role
• Qube Holdings: Supreme Court approves takeover scheme
• Summerset Group delivers Q2 update

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 ARB Corporation, Netwealth Group, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Netwealth Group and WiseTech Global. The Motley Fool Australia has recommended ARB Corporation, Aub Group, and CAR Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Although the S&P/ASX 200 Index (ASX: XJO) isn’t quite at the all-time highs of over 9,200 points we were seeing earlier this year, Australian shares are arguably still relatively elevated. Whilst this has been welcome for long-term investors, it does make it difficult to find ASX dividend shares trading at healthy dividend yields today.

Just take a look at the most popular dividend stocks on the ASX. Whether it’s Telstra Group Ltd (ASX: TLS), Woolworths Group Ltd (ASX: WOW), Commonwealth Bank of Australia (ASX: CBA) or Wesfarmers Ltd (ASX: WES), none of these blue-chip ASX dividend stocks is currently offering yields over 4%. That would have been almost unthinkable a few years ago, but here we are.

However, all is not lost. There are still a few ASX 200 dividend shares offering yields of over 4% right now. Let’s discuss two of them.

Two ASX dividend shares offering yields over 4% today

Thankfully, not all of the ASX bank stocks have followed CBA. First up, we have CommBank’s big four stablemate Westpac Banking Corp (ASX: WBC). Like the rest of its peers in the banking space, Westpac has long enjoyed a reputation as a solid income provider, thanks to the leading role in the Australian financial landscape that it has occupied for decades. Luckily for income investors, it still offers a generous dividend yield above 4%. 

At recent pricing, this ASX dividend share was trading on a yield of 4.3%. That comes with full franking credits attached, too. Sure, you might be able to secure an even higher yield from one of Westpac’s term deposits right now. But if you are after a fully-franked yield above 4%, this bank is well worth a look.

Next up, let’s check out Transurban Group (ASX: TCL). This toll-road operator is also a regular guest in your typical ASX income portfolio, thanks to its defensive earnings base and solid track record of dividend payouts. There’s a lot to like about Transurban as a dividend investment. It has generous government contracts that allow it to raise many of its tolls by at least the rate of inflation every quarter. Road traffic is also somewhat inelastic, giving Transurban protection against recessions and other economic shocks.

At the time of writing, Transurban shares are trading at just over $14.50 each. That gives this ASX dividend share a trailing yield of 4.75%. Keep in mind that this company rarely attaches meaningful levels of franking credits to its dividend, though.

The post 2 ASX dividend shares with yields over 4% right now appeared first on The Motley Fool Australia.

More reading

• ASX financials went from the best sector in FY25 to negative growth in FY26. Here’s what changed
• Better buy? NAB vs Westpac shares
• How much do I need in superannuation to receive $5,500 per month in passive income?
• This is the ASX bank stock I would buy today for franked dividend income
• How to get started with a portfolio delivering $500 a week in passive income

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

VanEck Gold Miners AUD ETF (ASX: GDX) has risen 80% in two years and is paying a 15% dividend yield this season.

On Tuesday, GDX ETF is trading at $96.56 per unit, down 3.4%.

On 27 July, GDX will pay an extraordinarily high annual distribution of $17.99 per unit.

That’s the biggest distribution GDX has paid since inception in 2015.

For comparison, the FY25 distribution was 63 cents per unit.

When the distribution was announced, GDX was trading at $114.80, which meant the payment equated to a 15.6% dividend yield.

The unit price has now fallen by the approximate size of the dividend, as expected, since going ex-dividend on 2 July.

This total return is very impressive, but one expert reckons it’s time to sell this ASX ETF.

Why expert says sell this ASX ETF

On The Bull this week, Remo Greco from Sanlam Private Wealth explained his sell rating on GDX ETF.

A soaring gold price in the past few years has contributed to the strong performance of GDX.

The ETF has risen from $59.36 on January 6, 2025 to trade at $94.89 on July 2, 2026.

We are bearish about the outlook for gold in response to a stronger US dollar and potentially rising interest rates.

Even at weaker levels, we can’t justify the gold price.

We would be inclined to take a profit in GDX at these levels.

Gold price bull run

The gold price has soared since early 2024, but the pace of growth was slower over FY26 at 18%.

The gold price bull run came about due to the freezing of Russia’s foreign-currency reserves after the Ukraine invasion in 2022.

This prompted central banks worldwide to diversify their reserves away from the US and into the safe-haven metal.

Concern over new US policies and US debt levels, along with geopolitical uncertainty, then started to weigh on the US currency.

This further encouraged central banks, and then investors, to buy gold.

Large inflows into gold ETFs, especially in 1H FY26, sent the gold price to a record US$5,608 per ounce before a 21% dive in January.

Despite the correction to about US$4,405 per ounce, experts said gold miners were still going to make heaps of money.

And did they ever. That’s one reason why GDX is paying a massive dividend this season.

The gold price fell further over 2H FY26, and is US$4,126 per ounce today.

More about GDX ETF

GDX ETF seeks to mirror the performance of the NYSE Arca Gold Miners Index (AUD) Index.

ASX GDX invests in 105 gold mining shares, with 44% in Canada, 24% in the US, 9% in Australia, and 6% in Brazil.

The ASX gold shares in the GDX portfolio include Northern Star Resources Ltd (ASX: NST), Evolution Mining Ltd (ASX: EVN), Perseus Mining Ltd (ASX: PRU), Genesis Minerals Ltd (ASX: GMD), Greatland Resources Ltd (ASX: GGP), Capricorn Metals Ltd (ASX: CMM), and Ramelius Resources Ltd (ASX: RMS).

GDX ETF has total net assets of $1.3 billion.

The post Up 80% in 2 years with a 15% dividend yield, expert says sell this ASX ETF now appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• This ASX gold stock could soar 60% thanks to a big announcement
• 5 things to watch on the ASX 200 on Tuesday
• Gold, cash, and a takeover twist: Why this ASX 200 gold stock is climbing today
• Move over Regis Resources! Vault Minerals shares leaping 11% as Genesis Minerals’ lobs $5.6 billion takeover bid

Motley Fool contributor Bronwyn Allen 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.

After a huge run over the past year, Electro Optic Systems Holdings Ltd (ASX: EOS) shares are starting to lose some heat.

At the time of writing, the EOS share price is down 2.42% to $9.67.

That takes its fall over the past month to almost 12%, leaving investors to wonder whether this is just a pause after a massive rally.

It is not as if the stock has gone cold completely. EOS shares are still up around 270% over the past year, although they are now only slightly higher in 2026 with a gain of about 2%.

With the company still winning defence contracts and brokers still seeing upside, this pullback is worth a closer look.

The big run is cooling off

The recent weakness looks more like the market taking a breather after the stock’s big rally.

After climbing so far, some investors may be happy to take a profit while they wait for the next update.

The company has been supported by a series of contract wins, higher defence spending, and growing demand for counter-drone and remote weapon systems (RWS).

There has also been plenty for the market to take in.

Earlier this month, EOS announced new sales orders worth about $38 million. The larger one was for a US$16 million Naval 400 RWS, which will be supplied to a new customer in the Middle East.

MARSS, its command-and-control business, also received an 8-million-pound order for a new counter-drone command and training centre.

Before that, EOS announced a much larger US$124 million deal for its Slinger counter-drone RWS.

That deal came from Generation 5 Holding in the UAE and includes systems, cannons, spares, training, and other supplies.

Delivery is expected across 2027 and 2028, subject to customer and export approvals.

Brokers are still upbeat

The recent pullback hasn’t stopped brokers from seeing more upside in EOS shares.

Bell Potter recently kept its buy rating on EOS and lifted its price target to $12.50. Based on the current share price of $9.67, that suggests potential upside of about 29%.

Ord Minnett is also backing the stock, recently lifting its target to $11.45. That points to a possible upside of about 18% from today’s level.

The upbeat broker view seems to come down to the order book, counter-drone demand, and the laser weapon joint venture in the UAE.

That venture is focused on developing and manufacturing 100-kilowatt and 200 to 300-kilowatt laser weapon products.

Can EOS shares bounce back?

After a 12% pullback, I would not be writing this one off.

EOS shares have declined recently, but the stock hasn’t lost the key things that drove the rally in the first place.

The company is still winning work, brokers are still positive, and the all-time high of $12.58 sits just above Bell Potter’s $12.50 target.

If EOS lands another decent contract, I think the share price can have another crack at that high.

The post Down 12% in a month: Is the EOS share price ready to explode? appeared first on The Motley Fool Australia.

More reading

• 13 ASX 200 shares that doubled in value in FY26
• ASX shares vs. property in FY26: Which investment outperformed?
• Top ASX 200 share of each market sector in FY26
• Up 275% in a year! Why this ASX defence stock refuses to cool down
• 5 best-performing ASX 200 shares of FY26

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 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.

ASX shares have had a choppy start to the year. Inflation concerns, geopolitical uncertainty, and interest rate changes have all put pressure on investor sentiment.

But when markets are volatile, it’s a good time to look at the investment opportunity hiding among oversold shares.

Here are three that spring to mind.

Pantoro Gold Ltd (ASX: PNR)

Pantoro is a gold producer and exploration company based in Western Australia. The company’s flagship operation is the 100%-owned Norseman Gold Project in the state’s Eastern Goldfields region, and the ASX gold producer is also exploring a portfolio of regional targets in the Kimberly region. The gold miner’s shares crashed by around 48% in March after it released its drilling results from its Norseman project and cut its production guidance following weather disruptions. The update overshadowed what were otherwise strong financial results. But subsequent updates have suggested the disruption was temporary and brokers are very bullish that Pantoro’s share price can rebound quickly. Market Index data shows that the majority of brokers have a buy rating on the shares. The $4.99 target price implies an impressive potential 115% upside at the time of writing. 

Qoria Ltd (ASX: QOR)

Qoria is a small-cap cybersecurity company that offers online safety technology for children, including school and parental controls. The company aims to become the global leader in children’s digital safety and well-being within three years. The ASX company has reached 30 million students in 32,000 schools and earns a significant annual recurring revenue from ongoing school contracts. In its half-year FY26 result, Qoria announced a 25% increase in revenue and a 68% hike in EBITDA. And brokers think the strong rate of expansion can continue. Market Index shows brokers have a consensus strong buy rating on the ASX shares and an average 58 cents target price. That implies a huge potential 138% upside at the time of writing.

Amplitude Energy Ltd (ASX: AEL)

Amplitude is an Australian energy company that supplies gas and oil to the domestic market. The company has a number of major gas supply contracts with customers, including AGL Energy Ltd (ASX: AGL) and Origin Energy Ltd (ASX: ORG). Its gas segment accounts for the vast majority of the company’s revenue. Its share price crashed in March after the company announced that its Isabella gas discovery was not commercially viable, despite earlier encouraging drilling results. But Ampitude continues to produce and sell gas from its other existing projects, and Isabella wasn’t the only growth project in the works. Brokers see the sell-off as excessive. The majority hold a buy rating, and they tip a 99% upside to an average $2.51 target price over the next 12 months. 

Xero Ltd (ASX: XRO) 

The ASX 200 tech shares have been beaten down over the past year after concerns about the company’s valuation and earnings outlook. Xero was caught up in a sector-wide sell-off late last year and in early 2026 as investors rotated away from tech stocks amid concerns about AI competition. But now I think the sell-off has been way overdone. Xero benefits from an incredibly sticky subscription base and high customer retention rates. This means its revenue is relatively predictable. As a relatively small market player, it also has a lot of growth potential. Most analysts have a strong buy rating on the shares. They tip an upside of around 90% to an average target price of $141.56. 

The post Are these oversold ASX shares too good to pass up? appeared first on The Motley Fool Australia.

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• 10 of the best ASX shares to buy in FY 2027
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• Xero shares are down 60%, is it time to buy, hold or sell?

Motley Fool contributor Samantha Menzies 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 Xero. The Motley Fool Australia has positions in and has recommended Xero. 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 back in negative territory on Tuesday, despite a stronger lead from Wall Street overnight.

At the time of writing, the ASX 200 is down 0.37% to 8,798 points.

That puts the benchmark index close to its intraday low of 8,790.3 points and below yesterday’s close of 8,831 points.

It’s not a heavy fall, but it is another reminder that the local market is still finding it hard to build momentum.

Here’s what is weighing on the ASX 200 today.

Wall Street rally fails to lift our local share market

The fall comes after a positive night in the United States.

The Dow Jones Industrial Average (DJX: .DJI) lifted 0.29% to a record close of 53,055.91 points, while the S&P 500 Index (SP: .INX) rose 0.72% and the Nasdaq Composite Index (NASDAQ: .IXIC) climbed 1.12%.

Normally, that sort of lead would give local shares a better platform.

However, the ASX 200 has not been able to make much of it. Instead, selling across miners, gold shares, and parts of the energy sector is offsetting gains from the banks and tech stocks.

The broader market is also mostly in the red.

At the latest check, 121 of the top 200 shares were falling, compared with 75 rising and 4 trading flat.

Miners drag on the ASX 200

Resources stocks are doing much of the damage today, with the S&P/ASX 200 Resources Index (ASX: XJR) sliding 2.3% to 7,397 points.

BHP Group Ltd (ASX: BHP) shares are down 1.08% to $59.375, while Rio Tinto Ltd (ASX: RIO) shares are shedding 1.76% to $168.15.

Gold stocks are also under pressure with the gold price slipped to US$4,127 per ounce, down 0.91%.

Northern Star Resources Ltd (ASX: NST) shares are tumbling 3.17% to $21.08, while Evolution Mining Ltd (ASX: EVN) shares are falling 3.57% to $12.16.

Banks and tech stocks provide some support

The major banks are helping soften the fall.

Commonwealth Bank of Australia (ASX: CBA) shares are up 1.23% to $166.69, while Westpac Banking Corp (ASX: WBC) shares have added 0.85% to $35.59.

National Australia Bank Ltd (ASX: NAB) shares are 0.96% higher at $39.02, while ANZ Group Holdings Ltd (ASX: ANZ) shares have lifted 0.49% to $35.17.

Macquarie Group Ltd (ASX: MQG) shares are also stronger, rising 0.92% to $253.03.

Tech stocks are helping too, with WiseTech Global Ltd (ASX: WTC) shares jumping 8.4% to $38.34 after the company announced Raelene Murphy had been appointed independent chair.

Xero Ltd (ASX: XRO) shares are 1.5% higher to $74.66.

The post ASX 200 slips again: Why the market can’t follow Wall Street higher appeared first on The Motley Fool Australia.

More reading

• Here’s what brokers tip for NAB shares over the next 12 months
• WiseTech shares surge 10% as Richard White steps back from chair role
• Forget CBA shares, I’d buy these ASX bank stocks instead
• Qube Holdings: Supreme Court approves takeover scheme
• Summerset Group delivers Q2 update

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 Macquarie Group, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended BHP Group and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.