Author: openjargon

The Coles Group Ltd (ASX: COL) share price is in focus today after the supermarket giant reported a 2.5% rise in group sales revenue to $23.6 billion and a strong 12.5% lift in net profit (excluding significant items), with continued momentum across its core Supermarkets division.

What did Coles Group report?

• Group sales revenue: $23.6 billion, up 2.5% on the prior period
• Net profit after tax (excluding significant items): $676 million, up 12.5%
• Group EBIT (excluding significant items): $1,231 million, up 10.2%
• Supermarkets adjusted sales revenue (ex. tobacco): up 6.1%
• Supermarkets eCommerce sales growth: 27.0%
• Interim dividend: 41 cents per share, fully franked

What else do investors need to know?

Coles’ Supermarkets business continued its strong trajectory, with adjusted sales revenue up 6.1% excluding tobacco and robust growth online. Customer satisfaction scores improved across all key areas, and investments in automation and operational efficiency are delivering tangible results.

While Liquor segment sales softened by 3.2%, convenience store performance was a positive, and the ‘Simply Liquorland’ rebranding has now been completed. Coles’ Flybuys loyalty program hit 10 million members, increasing engagement and supporting sales.

Significant items of $235 million before tax were recognised following a Federal Court judgement relating to Fair Work proceedings, but the group’s balance sheet remains strong, with a lease-adjusted leverage ratio of 2.6x and ongoing investment in strategic priorities.

What did Coles Group management say?

CEO Leah Weckert said:

We have delivered another strong set of results in a highly competitive operating environment, successfully cycling the competitor industrial action disruption in November and December 2024. The momentum in our business has enabled us to continue offering a compelling value proposition to customers, particularly over the festive season, while also achieving further improvements in availability and customer experience metrics. It is clear that our focus on executing against our strategic priorities and the successful delivery of our major ADC and CFC transformation investments are delivering benefits for both our customers and our shareholders. As we look ahead we are well positioned, with a strong balance sheet and cash flow generation, to continue to invest in areas that will strengthen and expand our core customer proposition and deliver value for shareholders. I would also like to recognise that over the last two months our teams have done an incredible job in managing the impacts of extreme weather events in parts of Australia, ensuring essential items reach local communities in need. I would like to acknowledge their dedication and hard work, in addition to the work of all of our team members, who bring the Coles values to life every day.

What’s next for Coles Group?

Coles’ outlook remains steady for the second half, with Supermarkets sales revenue growing 3.7% in the first seven weeks of the third quarter. The company will focus on maintaining momentum across value offerings, store renewals, and digital upgrades.

Coles’ major investments in distribution centre automation and omnichannel experience continue to support efficiency and customer satisfaction. Management remains committed to delivering consistent value to shoppers while building a resilient, future-ready business for shareholders.

Coles Group share price snapshot

Over the past 12 months, Coles Group shares have risen 9%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

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The post Coles Group shares: Profit jumps, Supermarkets excel appeared first on The Motley Fool Australia.

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• TPG Telecom FY25 earnings: Mobile subscribers drive profit growth
• Virgin Australia posts 1HFY26 earnings
• WAM Capital earnings: Dividend steady as half-year profit falls
• Block Q4 2025 earnings: Profit jumps as AI transformation begins
• PEXA Group posts 1H FY26 earnings

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 Block (ASX: XYZ) share price is in focus today after the company released its results for the fourth quarter and full year ended 31 December 2025, reporting gross profit growth of 24% over the quarter and a significant 33% rise in Cash App gross profit.

What did Block report?

• Q4 2025 gross profit: US$2.87 billion, up 24% year-on-year
• Cash App gross profit: US$1.83 billion, up 33% year-on-year
• Square gross profit: US$993 million, up 7% year-on-year
• Q4 2025 adjusted operating income: US$588 million (20% margin), up 46% year-on-year
• Diluted EPS: US$0.19; adjusted diluted EPS: US$0.65, up 38% year-on-year
• Raised full-year 2026 guidance to US$12.2 billion gross profit (18% growth) and adjusted operating income of US$3.2 billion (26% margin)

What else do investors need to know?

Block announced a major restructuring, reducing its workforce by over 40%—from more than 10,000 people to just under 6,000. Management explained that advances in artificial intelligence are enabling a smaller team to work more efficiently and at higher velocity.

During the quarter, Block delivered strong growth in lending, with Cash App Borrow origination volume up 223% versus last year. Engagement on Cash App continues to deepen, with monthly active users up to 59 million and primary banking customers reaching 9.3 million.

What’s next for Block?

Looking ahead, Block has lifted its full-year 2026 guidance, now aiming for gross profit growth of 18%, driven by ongoing investment in product development and high return-on-capital lending. The company expects to see benefits from its new, leaner, AI-driven operating model flow through to improved profitability, with a projected adjusted operating income margin of 26% this year.

Management said the focus will be on product speed, scaling AI-powered capabilities, and expanding flagship offerings such as Cash App Green and proactive intelligence products across the business.

Block share price snapshot

Over the past 12 months, the Block shares have declined 28%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Block Q4 2025 earnings: Profit jumps as AI transformation begins appeared first on The Motley Fool Australia.

More reading

• TPG Telecom FY25 earnings: Mobile subscribers drive profit growth
• Virgin Australia posts 1HFY26 earnings
• WAM Capital earnings: Dividend steady as half-year profit falls
• Coles Group shares: Profit jumps, Supermarkets excel
• PEXA Group posts 1H FY26 earnings

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 Block. 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 DroneShield Ltd (ASX: DRO) share price has been a strong performer over the past 12 months.

During this time, the counter-drone technology company’s shares have risen almost 350%.

To put that into context, a $10,000 investment a year ago would now be worth almost $45,000.

Let’s see what Bell Potter is saying about the company and where it thinks its shares could be heading from here.

What is the broker saying?

Bell Potter has been running the rule over DroneShield’s full-year results and was relatively pleased with what it saw. It said:

DRO reported +276% YoY revenue growth to $216.5m in line with BPe. Gross margin (excluding inventory impairment) came in at 64.8% (BPe 67.9%). Opex was $125.3m (BPe $127.8m) led by headcount growth and higher share-based payments.

Stripping out share-based payments ($23.5m) which was unusually elevated during the year, underlying EBITDA was $36.5m an improvement on the CY24 loss of -$4.0m and driven by strong revenue growth. Statutory NPAT was $3.5m. The miss to uEBITDA was driven by weaker than expected gross margin in 2H26e, although it was in line with company guidance.

And while there was an inventory impairment due to customer demand changes, the broker is optimistic that its new systems will prevent wastage in the future. It adds:

DRO recorded $8.5m finished goods and $1.8m raw materials inventory impairments relating to earlier model DroneGuns with customer demand moving to the latest version of the DroneGun Mk4. New ERP implementation aims to reduce wastage in future.

Where next for the DroneShield share price?

The good news is that Bell Potter believes there’s still plenty of upside ahead for this high-flying stock.

According to the note, the broker has retained its buy rating on its shares with a trimmed price target of $4.80.

Based on the current DroneShield share price of $3.69, this implies potential upside of 30% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

We believe DRO has a market leading RF detect/defeat C-UAS offering and a strengthening competitive advantage owing to its years of battlefield experience and large and focused R&D team. We expect 2026 will be an inflection point for the global C-UAS industry with countries poised to unleash a wave of spending on RF detect and defeat solutions.

Consequently, we believe DRO should see material contracts flowing from its $2.3b potential sales pipeline over the next 3-6 months as defence budgets roll over to FY26e. At 35x CY26e EV / EBITDA, DRO trades at a discount to the global drone peer group. Further, we see upside risk to our revenue forecasts in CY26/27e, given the opportunities observed in the C-UAS industry.

The post How high can the DroneShield share price climb in 2026? 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 DroneShield. 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 PEXA Group Ltd (ASX: PXA) share price is in focus today after the company reported first-half FY26 revenue of $215.3 million, up 10% year-on-year, and Group NPAT of $15.4 million, turning around a prior loss.

What did PEXA Group report?

• Group revenue rose 10% to $215.3 million (1H25: $195.9 million)
• Group EBITDA increased 19% to $85.8 million; EBITDA margin improved to 39.9%
• Group NPATA up 33% to $40.3 million; NPAT from continuing operations was $15.4 million vs a $29.5 million loss a year ago
• Free cash flow lifted 25% to $40.2 million
• Leverage (Net debt/EBITDA) improved to 1.4x from 2.0x

What else do investors need to know?

PEXA’s strong performance was underpinned by record transaction volumes in Australia, hitting an all-time daily high of 41,000 settlements in December 2025. Cost optimisation initiatives in Australia delivered a 2.6% reduction in expenses and are expected to save more than $10 million annually.

In the UK, PEXA saw continuing market recovery with sale and purchase volumes up 15% and remortgage volumes up 24%. The Group moved ahead with implementation for major lender NatWest and expanded its product offering to UK conveyancers, increasing platform engagement.

Capital management was a focus, with PEXA repaying $25 million in debt and pausing its FY25 buyback, aiming to prioritise balance sheet strength and support future investments.

What did PEXA Group management say?

Chief Executive Officer and Group Managing Director Russell Cohen said:

PEXA delivered a strong result in the first half in FY26, underpinned by record transaction volumes in Australia, disciplined cost management and continued progress in the UK. On top of a 10% growth in Group revenue, we delivered EBITDA growth of 19%, with EBITDA margins increasing to 39.9% from 36.8% in 1H25. This reflects operating leverage from higher volumes and the benefits of our cost optimisation program, which is expected to deliver more than $10 million in annualised cash savings.

What’s next for PEXA Group?

In the second half of FY26, PEXA plans to launch its new anti-money laundering product, PEXA Clear, ahead of the 1 July 2026 compliance deadline. Management aims to drive further resilience and innovation in Australia, complete the NatWest rollout in the UK, and keep capital discipline at the forefront.

PEXA has updated its core operating guidance for FY26 to reflect recent performance, now expecting Group revenue of $395 million to $415 million, an improved EBITDA margin of 34–37%, and NPAT of $15 million to $25 million from continuing operations.

PEXA Group share price snapshot

Over the past 12 months, PEXA shares have risen 26%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post PEXA Group posts 1H FY26 earnings appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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. 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 Vault Minerals Ltd (ASX: VAU) share price is in focus today after the company reported standout exploration results, with high-grade gold intercepts at King of the Hills (KoTH), Darlot, Deflector, and the Sugar Zone projects.

What did Vault Minerals report?

• High-grade gold intersections at KoTH, including 7.60 m at 31.7 g/t, 10.25 m at 4.13 g/t, and 1.77 m at 16.5 g/t in the granodiorite host
• Extensive infill and extensional drilling at Darlot’s Pipeline and Warne areas, with results up to 151.5 g/t
• Deflector’s Contact lode returned 1.3 m at 22.8 g/t, 1.3 m at 17.1 g/t, and 0.8 m at 27.6 g/t
• First assays at Sugar Zone TT8 yielded 1.05 m at 21.2 g/t and 6.29 m at 3.16 g/t, with more results pending
• Significant resource definition drilling undertaken: 63,378 m at KoTH in FY25 and 26,101 m to date in FY26

What else do investors need to know?

Vault is expanding exploration across its key Western Australian and Canadian assets. At KoTH, drilling has extended mineralisation up to 500 metres beyond current mining areas, highlighting strong potential to grow underground reserves and extend mine life. Darlot’s Warne and Pipeline zones have produced encouraging results, presenting new opportunities for near-term production fronts. Meanwhile, at Deflector, recent drilling is establishing the Contact lode as a fresh mining front.

The company is also assessing a potential refurbishment of the Darlot processing facility to strengthen its processing footprint in the gold-rich region. Regional drilling at Deflector and Sugar Zone is ramping up, with substantial untested targets set to be explored through 2026.

What did Vault Minerals management say?

Managing Director Luke Tonkin said:

This outstanding suite of results highlights the opportunity to grow our Mineral Resource base and extend the life of mine across multiple deposits. Our team continues to unlock the potential of our well-established assets in highly prospective regions.

What’s next for Vault Minerals?

The company’s strategy centres on aggressive exploration to support life of mine extensions and build new mining fronts at KoTH, Darlot, Deflector, and Sugar Zone. Resource definition and step-out drilling will continue throughout FY26, targeting further reserve growth. Vault intends to complete pending assays and progress plans for a potential processing upgrade at Darlot, which could accelerate production from emerging gold zones.

Regional exploration at Deflector’s Gullewa trend and Sugar Zone’s TT8 prospect is scheduled to ramp up in coming months, aiming to identify additional high-grade targets and support ongoing growth in resource inventory.

Vault Minerals share price snapshot

Over the past 12 months, Vault Mineral shares have risen 123%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Vault Minerals: High-grade drilling results drive mine-life upside appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

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.

For retirees, investing isn’t about chasing the next high-flying growth stock. It’s about reliability. I believe the ideal ASX dividend stock for retirees should generate consistent cash flow, operate in resilient industries, and have a clear pathway to maintaining or gradually growing distributions over time.

Here are three I consider strong income options right now.

Transurban Group (ASX: TCL)

Transurban is one of my favourite income-focused infrastructure plays.

It owns and operates toll roads across major Australian and North American cities. These are long-life assets with high barriers to entry. Once built, they tend to generate steady traffic volumes supported by population growth and urban congestion.

What I like most is the predictability of cash flow. Many of Transurban’s toll concessions include inflation-linked price increases. That provides a built-in mechanism for revenue growth without needing aggressive expansion.

For retirees, that kind of contractual and regulated income stream is attractive. While distributions can fluctuate with traffic conditions and capital expenditure cycles, I see Transurban as one of the more dependable infrastructure income vehicles on the ASX.

Lottery Corporation Ltd (ASX: TLC)

Lottery Corporation offers something slightly different: defensive consumer exposure.

Lotteries are remarkably resilient. Even during economic downturns, ticket sales tend to hold up well. The business benefits from strong brand recognition, long-term licences, and limited competition.

Cash flow generation is robust and highly visible. Because lottery products are low-ticket discretionary purchases, they don’t tend to be cut from household budgets in the same way larger expenses might be.

For retirees seeking income, I like the combination of recurring revenue, high margins, and a business model that isn’t capital intensive. That supports consistent dividend payments over time.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT focuses on large-format retail centres anchored by non-discretionary tenants such as supermarkets, healthcare providers, and essential service operators.

This matters. Daily needs retail is far more resilient than fashion or luxury retail. Tenants provide goods and services people rely on regularly, which supports rental stability.

The REIT structure also means a high proportion of rental income is distributed to investors. While property trusts are sensitive to interest rates, I believe exposure to essential retail tenants helps underpin earnings stability.

For retirees comfortable with property exposure, HomeCo Daily Needs REIT offers an attractive yield backed by assets tied to everyday spending.

Foolish takeaway

When building an income-focused portfolio in retirement, I prioritise durability over excitement.

Transurban provides infrastructure-backed cash flows. The Lottery Corporation offers defensive consumer earnings. HomeCo Daily Needs REIT delivers property income linked to essential spending.

No dividend is ever guaranteed, but in my view, these three ASX dividend stocks have the kind of underlying businesses that retirees can build income portfolios around.

The post 3 strong ASX dividend stocks for retirees to buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended The Lottery Corporation and Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT and The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Summerset Group Holdings Ltd (ASX: SNZ) share price is in focus after the company delivered a record underlying profit of NZ$234.2 million for the 2025 full year, up 13% on FY24, while total revenue climbed 13% to NZ$361.8 million.

What did Summerset report?

• Underlying profit after tax of NZ$234.2 million, up 13% on FY24
• IFRS net profit after tax dropped 22% to NZ$259.7 million compared to FY24
• Total revenue of NZ$361.8 million, up 13% year on year
• 1,560 total sales of occupation rights (805 new, 755 resales), up 26%
• 693 new homes delivered—637 in New Zealand, 56 in Australia
• Final dividend of NZ13.2 cents per share (total FY25: NZ24.5 cps)
• Net tangible assets (NTA) per share increased $1.32 to $13.75

What else do investors need to know?

Summerset continued to achieve robust sales results despite a subdued property market in 2025, with its strongest ever year for new sales and ongoing high occupancy rates. The business grew its total assets by 15% to $9.2 billion and maintained strong resident satisfaction at 91% and staff retention at 84%.

The company delivered 56 new homes in Australia and made significant steps in its Australian growth plan, including opening its first village centre at Cranbourne North, Victoria. Care profitability also lifted, with care EBITDA jumping to $18.8 million, mainly through the sale of care rooms under Occupation Right Agreements (ORAs).

What did Summerset management say?

CEO Scott Scoullar said:

We’ve continued to achieve despite another year where the business environment and property market has been subdued. Summerset has lifted the value of the company by $1.32 per share to have a Net Tangible Assets (NTA) per share of $13.75, and we are proud to be very focused on growth.

What’s next for Summerset?

Summerset expects to keep building, forecasting 650–700 new homes in New Zealand and 100–150 in Australia for FY26. The company is targeting continued growth in both countries, supported by its large land bank and steady demand, while carefully managing its build rate to match market conditions. Further cost reviews and ongoing sustainability initiatives are also on the cards, with gearing expected to reduce in FY26.

Directors declared a final dividend of NZ13.2 cents per share, with the total FY25 payout unchanged from the previous year. Management remains focused on prudent balance sheet management and delivering long-term cashflow for residents and shareholders.

Summerset share price snapshot

Over the past 12 months, the Summerset shares have declined 20%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Summerset Group reports record FY25 profit and strong sales appeared first on The Motley Fool Australia.

More reading

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• Zimplats Holdings: Profit surges, no dividend for half year
• Here are the top 10 ASX 200 shares today

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.

Sigma Healthcare Ltd (ASX: SIG) shares were bouncing around on Thursday.

The Chemist Warehouse owner’s shares were up as high as $3.20, just short of a 52-week high, before closing down at $2.94.

Should you be taking advantage of the pullback or should you wait for a better entry point? Let’s see what analysts at Bell Potter are saying.

What is the broker saying?

Bell Potter notes that the pharmacy chain operator and distributor delivered a half-year result that was comfortably ahead of expectations. It said:

Key numbers in the SIG half year were comfortably ahead of market consensus and our forecast. Referring to normalised earnings which excludes costs associated with the merger, Revenues $5.1bn (+15% vs pcp i.e. +$250m) and EBITDA $616m (+18.3% vs pcp) are the highlights. GP margin was preserved at 18.3%, hence no dilution from the sale of the high price – lower margin GLP-1 drugs. Earning leverage is obvious with overheads increasing by $32m relative to the much larger increase in revenues and gross profit.

However, that’s not to say there weren’t any negatives. One was a significant increase in working capital. The broker highlights:

The negative in the result was the $195m increase in working capital which constrained net cash from operations to $317m – a relatively poor conversion rate on EBITDA. The WC increase is seasonal across the industry. Disclosure around margins across the multiple businesses making up other revenues remains non-existent.

Should you buy Sigma shares for Chemist Warehouse exposure?

According to the note, the broker is sitting on the fence with this one and has reaffirmed its hold rating and $3.00 price target.

This is broadly in line with where its shares are trading today.

Although it concedes that Sigma delivered an excellent result, it believes its shares are fully valued at present. It also highlights that the escrow period for founders ends in August, which could mean some large share sales from insiders. It concludes:

We regard 1H26 as an excellent result. The earnings leverage is a standout and there is no indication that the gross margin is likely to weaken for the foreseeable future. SIG is only part way through its cost out program, hence good justification for ongoing EPS growth for at least two to three years. The major risk remains the completion of the escrow period for founders in August 2026. TP unchanged. EPS upgraded by 5% and 11% in FY26/27 respectively.

The post Is it too late to buy the shares of Chemist Warehouse owner Sigma? 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 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.

If you are looking for exposure to the mining sector, then Bell Potter has your back.

The broker has just named an ASX mining stock that is “ready to rip” as a buy.

Which ASX mining stock?

Bell Potter is bullish on Nickel Industries Ltd (ASX: NIC) and believes its shares could rise strongly from current levels.

It is a vertically integrated nickel producer with production assets spanning nickel ore mining, nickel pig iron (NPI) production and nickel mixed hydroxide precipitate (MHP) production.

This is achieved through several rotary kiln electric furnace (RKEF) processing lines across two industrial parks in Indonesia.

What is the broker saying?

Bell Potter was pleased with Nickel Industries’ performance in FY 2025. It notes that its revenue and EBITDA were in line with expectations.

NIC has released its CY25 financial result which was in-line with our revenue and EBITDA forecasts, but below our earnings forecast on higher D&A charges, taxes, financing costs and an impairment. Key metrics from the result included: revenue US$1,649m vs BPe US$1,601m, EBITDA (underlying): US$283m vs BPe US$278m, NPAT (reported, consolidated) US$41m loss vs BPe US$31m profit. No dividend was declared, as expected.

But the main reason that Bell Potter is bullish on this ASX mining stock is its “exceptional nickel price” leverage. The broker believes that its strong margins mean it will benefit greatly when nickel prices move from cyclical lows. It adds:

While technically a miss at the NPAT line, we view the result as a positive one that continues to demonstrate the fundamental strength and profitability of NIC’s vertically integrated business model. Underlying EBITDA of US$283m equates to a 17% EBITDA margin through one of the toughest nickel price cycles in years. Margins have been maintained through a combination of cost control and production growth.

This places NIC in a position of exceptional leverage to the nickel price in the event of its recovery off cyclical lows. The industry has seen the closure or suspension of projects globally, tightening any potential supply response. Recently announced production restrictions by the Indonesian Government have been the catalyst for a rise in the nickel price, which we expect to be a positive price support in CY26.

Big returns could be on the cards

According to the note, the broker has retained its buy rating on the ASX mining stock with an improved price target of $1.45 (from $1.30).

Based on its current share price of $1.01, this implies potential upside of approximately 44% for investors over the next 12 months.

In addition, the broker is forecasting a 4% dividend yield over the period, boosting the total potential return to almost 50%.

Commenting on the investment opportunity here, Bell Potter said:

NIC is one of the world’s largest listed nickel producers and offers exposure across a range of nickel products and markets. It continues to make money through low nickel prices, benefitting from its upstream and downstream operations, diversified risk and margin exposure across an integrated value chain. We retain our Buy recommendation on an increased Target Price of $1.45/sh.

The post Guess which ASX mining stock is ‘ready to rip’ 40% higher 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 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.

March is often when the dust settles after reporting season. The headlines fade, brokers update their models, and investors start asking a simpler question: which businesses actually delivered?

After reviewing recent half-year results, there are three ASX 200 names I would be comfortable buying this month. They operate in different sectors, but each showed something in their latest numbers that reinforces my confidence.

Commonwealth Bank of Australia (ASX: CBA)

I’d buy CBA in March because it continues to demonstrate balance.

Yes, margins were slightly lower in the half as home lending competition remained intense. But earnings still grew and pre-provision profit lifted. More importantly to me, credit quality improved. Loan impairment expense declined and home loan arrears fell during the half. That matters.

When a bank can grow earnings while maintaining strong capital, improving credit quality, and increasing its dividend, I see that as confirmation of franchise strength.

CBA’s CET1 ratio remains comfortably above regulatory minimums, and it again increased its interim dividend to $2.35 per share, fully franked. I believe that combination of earnings resilience, capital strength, and shareholder returns supports owning it even after a rally.

I’m not buying it for explosive upside. I’m buying it because it continues to prove it can deliver through different parts of the cycle.

Telstra Group Ltd (ASX: TLS)

Telstra’s result reinforced something I already believed: this is no longer just a defensive telco, it’s a business executing a clear strategy.

Mobiles continued to grow, with higher ARPU and customer momentum driving earnings in that segment. Across the Group, underlying EBITDA lifted and operating expenses fell. That positive operating leverage tells me management is controlling what it can control.

What also stood out was capital management. The interim dividend was increased to 10.5 cents per share, and the on-market buy-back was expanded to up to $1.25 billion. That doesn’t happen unless the board has confidence in cash generation and balance sheet strength.

For me, Telstra is attractive in March because it is combining earnings growth, cost discipline, and shareholder returns. It is not dependent on outlandish assumptions. It is executing.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is the one I would buy for quality.

The half-year result showed profit growth of over 9%, supported by strong contributions from Bunnings, Kmart Group, and WesCEF. What I found particularly encouraging was that Bunnings delivered higher sales across all product categories and segments, even in a subdued residential construction environment.

Kmart Group also continued to drive earnings through productivity and value positioning. That reinforces my view that its everyday low-price model has structural strength.

The lithium contribution from WesCEF improved as pricing strengthened later in the half, adding another layer of optionality to the portfolio.

On top of that, the interim dividend was lifted again. For a diversified industrial group navigating cost pressures and uneven consumer demand, that signals confidence.

I like businesses that can grow profit in a mixed environment. Wesfarmers just did.

Foolish takeaway

I’m not recommending these shares for March because they beat expectations. I’m recommending them because their latest results confirmed what I already believed.

CBA remains the highest-quality major bank in Australia, Telstra is delivering earnings growth with disciplined capital management, and Wesfarmers continues to compound value across multiple divisions.

The post Why I’d buy CBA and these ASX 200 shares in March appeared first on The Motley Fool Australia.

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• Is the party over for the CBA share price?
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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra 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.