Author: openjargon

4DMedical Ltd (ASX: 4DX) shares are pushing higher on Monday after the medical imaging tech company announced a European acquisition.

At the time of writing, the 4DMedical share price is up 4.28% to $4.14, after reaching an intraday high of $4.29 in early morning trade.

The move adds to a huge run for shareholders, with 4DMedical shares now up around 14% over the past week and more than 1,100% since this time last year.

Let’s take a closer look at today’s announcement.

4DMedical pushes into Europe

According to the release, 4DMedical has entered a binding agreement to acquire contextflow GmbH.

Contextflow is a Vienna-based medical technology company focused on lung cancer screening and advanced AI-driven imaging.

The deal gives 4DMedical an immediate commercial and clinical platform in Europe, adding a third major region to its existing operations in North America and Australia and New Zealand.

The acquisition includes a CE-marked lung cancer screening product already deployed in Europe. It uses nodule detection technology and is expected to sit alongside 4DMedical’s existing lung imaging software.

Management said the deal gives the company an immediate entry point into Europe’s respiratory and thoracic imaging market, which it estimates at US$1.5 billion to US$2 billion.

More on the European deal

The deal also looks relatively small against 4DMedical’s current cash position.

4DMedical will pay 1.12 million euros, or about $1.86 million, in cash, along with 56,235 shares upfront.

The agreement also includes a potential earnout of up to 2.59 million zero-exercise-price options if performance milestones are met.

The upfront cash component will be funded from 4DMedical’s existing cash reserves, while the acquired business is expected to retain 19 million euros, or about $30.8 million, in accumulated tax losses.

Those losses may be used to offset future taxable income generated by the Austrian business.

Management described the acquisition as a capital-efficient way to enter a large healthcare market.

Founder and Managing Director Andreas Fouras said the deal gives 4DMedical a European platform in a market roughly half the size of the United States.

He also said the acquisition increases the company’s market opportunity by about 50%, while using only 6.5% of its existing cash balance.

Foolish Takeaway

4DMedical has become one of the ASX’s standout healthcare stocks over the past year.

The company now has a market capitalisation of about $2.46 billion, even though it remains loss-making on an earnings per share (EPS) basis.

The next test is whether 4DMedical can turn its growing footprint into stronger commercial adoption across the US, Europe, and ANZ.

The post This ASX healthcare rocket is up 14% in a week. Here’s why investors are still buying appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why 4DMedical, Elsight, Judo Capital, and Northern Star shares are racing higher today
• 4DMedical shares jump 11% as investors cheer major US agreement
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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 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 the smoke cleared from a decidedly turbulent month, the S&P/ASX 200 Index (ASX: XJO) closed May up 0.8%, with ASX 200  energy stocks like Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) dragging on those returns.

Indeed, Woodside shares fell a sharp 8.6% in the month just past, closing May trading for $30.66 apiece.

Santos shares fared the best among the big ASX 200 oil and gas stocks, sliding 2.4% in May to close on Friday trading for $7.81 each.

Rounding out the list, Beach Energy Ltd (ASX: BPT) shares slumped 8.5% in May to $1.08, while Karoon Energy Ltd (ASX: KAR) shares trailed the pack, sinking 10.5% over the month to close on Friday trading for $1.96 apiece.

Why did ASX 200 energy stocks tumble in May?

The common headwind battering all of the ASX 200 energy stocks in May was the big retrace in global energy prices.

As you’re likely aware, oil and gas prices went through the roof in the weeks following the outbreak of the Iran war at the end of February. Indeed, Brent crude oil rocketed from US$72 per barrel on 27 February and was still trading for US$114 per barrel on 30 April.

That big lift saw investors piling into the likes of Woodside shares – which I should note remain up more than 29% year to date despite the May decline. And that’s not including the 83.5 cents per share final fully franked dividend Woodside paid eligible stockholders on 27 March.

But with the United States and Iran actively engaged in peace negotiations in May, Brent crude oil fell almost 20% over the month to US$92 per barrel, according to data from Bloomberg. And investors reacted by trimming their positions in the big ASX 200 energy stocks.

Why did Santos shares outperform in May?

Santos shares – also still up 26.8% year to date without including the final dividend payout – lost significantly less than the other ASX 200 energy stocks over the month just past.

This outperformance over Beach, Karoon and Woodside shares may have been driven by a few positive updates from the company.

On 18 May, for example, Santos shares closed up 2.7% after the company announced the first oil production from its Pikka phase 1 projected, located in the US state of Alaska.

With first oil flowing, Santos said it was working to increase production to 20,000 barrels per day (bpd) over the following weeks.

“Alaska has a huge runway ahead of it which will underpin value-accretive production growth for Santos for the long term,” Santos CEO Kevin Gallagher said.

“The Pikka phase 1 project has demonstrated Santos’ capability to develop this world-class resource safely, responsibly and efficiently.,” he added.

The post Why ASX 200 energy stocks like Woodside and Santos got hammered in May appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 2 brokers have tipped this ASX energy stock to jump by more than 60%
• 5.4% dividend yield: Are Woodside shares a buy for income today?
• Macquarie names 3 ASX 200 stocks to buy right now
• 9 ASX 200 shares with renewed buy ratings this week

Motley Fool contributor Bernd Struben 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.

S&P/ASX 200 Index (ASX: XJO) shares are down 0.2% on Monday as the world waits for further news on a potential US-Iran deal.

Meanwhile, on The Bull, three experts give us their views on three ASX 200 shares.

Let’s check them out. 

BHP Group Ltd (ASX: BHP)

The BHP share price is $62.72, up 0.7% on Monday, after matching its record high of $62.89 in earlier trading.

John Athanasiou from Red Leaf Securities has a buy rating on BHP shares.

Athanasiou explains:

Iron ore sales continue to drive earnings, but the key long term story is copper, where demand is structurally supported by electrification, grid investment and artificial intelligence related infrastructure.

Consequently, it gradually shifts BHP from a traditional cyclical miner towards a more diversified industrial metals compounder.

Cash generation remains strong, supporting consistent dividends and capital management. The balance sheet is conservative, allowing flexibility through the cycle.

While iron ore is still exposed to Chinese demand volatility, BHP’s scale and low cost positioning provide downside protection.

PLS Group Ltd (ASX: PLS)

The PLS Group share price is $6.65, up 2.9%, after also matching its record high of $6.67 today.

Lithium commodity prices are recovering after a dramatic two-year decline that finally ended in mid-2025.

The lithium carbonate price, for example, is up 50% in 2026 alone.

For now, Dylan Evans from Catapult Wealth gives this ASX 200 lithium share a hold rating. 

Evans comments:

PLS has a solid balance sheet. Revenue of $624 million in the first half of 2026 was up 47 per cent on the prior corresponding period.

Driving growth is a combination of increasing demand for lithium and near term supply constraints. Demand is fuelled by growing battery and electric vehicle adoption, which has been boosted by the conflict in Iran and crude oil disruptions.

The strong balance sheet and free cash flow should enable PLS to fund its expansion plans.

Commonwealth Bank of Australia (ASX: CBA)

CBA shares are $162.89 apiece, down 1.3% on Monday, and down 5.9% over the past month.

Philippe Bui from Medallion Financial Group has a sell rating on Australia’s biggest bank stock.

Bui said:

Australia’s largest bank carries a premium valuation. Slowing credit growth, sticky inflation and proposed property tax changes are headwinds for this mortgage heavy business.

Sentiment took a material hit recently when the stock posted its largest single-day decline of about 10 per cent since listing in 1991 following a disappointing trading update.

Earnings momentum is fading and the valuation is still trading at a significant premium to peers.

The post Buy, hold, sell: BHP, PLS Group, CBA shares appeared first on The Motley Fool Australia.

More reading

• Why did CBA shares sink 5% in May?
• Should I buy CBA shares for their ‘reliable’ passive income?
• Experts name BHP and these ASX 200 shares to buy this week
• How much could the PLS Group share price rise in the next year?
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Bronwyn Allen has positions in BHP 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 recommended BHP Group. 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 subdued start to the week. In afternoon trade, the benchmark index is down 0.2% to 8,713.9 points.

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

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down 10.5% to $3.03. This is despite there being no news out of the counter-drone technology company on Monday. However, it is worth noting that there is optimism that the US and Iran will soon sign a peace deal. This could mean that investors are fearing that demand for DroneShield’s products will soften.

Lendlease Group (ASX: LLC)

The Lendlease share price is down over 3% to $2.63. Investors have been selling the property developer’s shares following the announcement of a divestment. The company has agreed a $250 million sale agreement for its MSG North development rights. However, this deal is expected to result in a $175 million post‑tax loss. Management notes that the transaction is part of Lendlease’s ongoing capital recycling program, which is intended to release value tied up in long-dated and complex projects. Lendlease’s CEO, Tony Lombardo, said: “The sale of the commercially challenged MSG North project is consistent with our strategy to reduce long-dated international development capital and simplify the Group.”

Playside Studios Ltd (ASX: PLY)

The Playside Studios share price is down 30% to 16.5 cents. This has been driven by news that tech giant Meta Platforms (NASDAQ: META) is terminating its agreement for outsourced development contracts on the Horizon Worlds social platform. Management anticipates the revenue impact from the loss of this work will be approximately A$4 million in FY 2027. It said: “This is a counterparty decision and is not a reflection of the work PlaySide employees have delivered on an engagement that has consistently grown in value and scope since initial work began with Facebook in 2021. However, the loss of this work is a setback to the Company’s External Projects pipeline, and rebuilding that pipeline is (and has been) the immediate priority. Over the past six months we have built out the Company’s Business Development function from one person to four, significantly expanding the Company’s reach with international clients, and that team is focused on the work ahead.”

ResMed Inc (ASX: RMD)

The ResMed share price is down 7% to $26.63. This follows a sharp decline by the sleep treatment company’s NYSE-listed shares on Friday night. There does not appear to have been any obvious company-specific catalyst for the weakness on Wall Street.

The post Why DroneShield, Lendlease, PlaySide, and ResMed shares are tumbling today appeared first on The Motley Fool Australia.

More reading

• Guess which ASX 200 stock is crashing 8% today on $250 million divestment news
• Lendlease reports $250m MSG North sale and FY26 loss
• What happened to DroneShield shares in May?
• 3 ASX shares that brokers tipped to soar in the next 12 months
• ASX investors: Are you overinvested in the Magnificent 7 without knowing it?

Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield, Meta Platforms, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Meta Platforms. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Barton Gold Ltd (ASX: BGD) has raised $25.5 million in new capital from institutional investors, which it says will drive growth programs on a number of fronts.

Shares holding up

The South Australia-focused gold project developer said in a statement to the ASX that it had raised the new capital at 85 cents per share.

The company’s shares briefly traded higher at 94 cents following the news before settling back to be steady at 88 cents.

The first growth project the company will be looking at is an updated mineral resource and conversion of resources to reserves at the company’s Challenger gold project – an historic open-cut and underground mine.

The company said it would also be working on a definitive feasibility study to inform a final investment decision on the project, which includes a processing mill.

Secondly, the company will be working towards a mineral resource update and conversion to reserves at the Tunkillia gold project, where a prefeasibility study will also be done.

And finally, the company will do infill and extension drilling and metallurgical test work at its Tolmer silver prospect, which was discovered in 2025 with an intersection of 6m at 4747 grams per tonne of silver at a depth of 46 metres.

Strongly supported

Barton said the capital raise was supported by existing institutional investors Franklin Templeton, Aegis Financial, IXIOS, and MERK, and closed significantly oversubscribed by other Australian, Hong Kong, and North American funds.

Barton Gold Managing Director Alexander Scanlon said:

We are honoured to have the support of our institutional partners as we pursue our vision to build South Australia’s largest independent gold producer. We are now fully funded to deliver several key milestones that will underpin both our commercial pathway, and discussions for a wide range of available future low dilution funding solutions. Barton has worked diligently during the past five years to lay the foundations for large-scale regional gold production, doing so expeditiously and with a focus on minimal dilution. With over $30 million cash and our own strategic diesel reserve, Barton is very well positioned to deliver material project and shareholder value during the next 18 months.

Barton is working on a dual hub and spoke mining and processing strategy, including plans to reinstate the Challenger operations and develop Tunkillia with a second new mill.

The company added:

Barton is also focused on its emerging silver portfolio as a potentially significant contributor to this regional strategy, with upgrade programs underway for Tunkillia’s silver mineralisation alongside exploration at Tolmer.

Barton Gold is valued at $210.9 million.

The post Which ASX All Ords gold stock is newly cashed up and ready for growth? appeared first on The Motley Fool Australia.

More reading

• ASX All Ords gold stock lifting off today on higher-grade gold intercepts

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 positions in and has recommended Merck. 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.

Commonwealth Bank of Australia (ASX: CBA) shares had a difficult month in May.

The banking giant’s shares ended April at $173.66 and started the month strongly, climbing as high as $179.23.

But the mood changed quickly. CBA shares tumbled to a monthly low of $153.67 before recovering some ground and finishing May at $165.02.

That means the stock ended the month down approximately 5% from where it started.

However, it is worth noting that the move from its monthly high to low was far more dramatic, highlighting just how quickly sentiment turned against Australia’s largest bank.

So, what happened?

Quarterly update disappoints

The main catalyst for the weakness was CBA’s third-quarter update.

For the three months ended 31 March, the bank reported operating income that was flat on the first-half quarterly average. Net interest income rose 1%, helped by lending and deposit volume growth, higher deposit margins, and earnings on the replicating portfolio.

However, this was offset by lower other operating income, cash rate lag, competition in home and business lending, a weaker New Zealand dollar, and two fewer days in the quarter.

Expenses also moved higher, rising 1% excluding restructuring and notable items. This was driven largely by cloud computing volumes, software licensing, and investment in artificial intelligence capabilities.

On the bottom line, CBA reported unaudited statutory net profit after tax of approximately $2.6 billion and unaudited cash net profit after tax of approximately $2.7 billion.

Cash profit was down 1% on the first-half quarterly average, though it was up 4% on the prior corresponding quarter.

For a share trading on a premium valuation, that was not enough to keep investors happy.

Provisions catch the market’s eye

Another area investors focused on was provisioning.

CBA’s loan impairment expense was $316 million for the quarter. The bank also increased the forward-looking component of collective provisions by $200 million to reflect heightened geopolitical and macroeconomic risks.

Management stressed that underlying portfolio credit quality remains sound and that actual losses are still low.

Even so, consumer arrears increased modestly during the quarter, while corporate troublesome and non-performing exposures also moved higher.

In an uncertain economic environment, it seems that investors are watching these numbers closely.

Federal Budget adds another headwind

Sentiment was also affected late in the month by the release of the Federal Budget.

Some of the measures in the Budget have been interpreted negatively for CBA, adding to concerns that the outlook for the banking sector may be getting tougher.

This comes at a time when investors are already questioning whether the major banks can justify their elevated valuations. Competition in lending remains intense, margins are under pressure, and any signs of rising credit stress can quickly weigh on confidence.

Foolish takeaway

CBA remains one of the highest-quality shares on the ASX. It has a huge customer base, strong capital and liquidity settings, and a dominant retail banking franchise.

But May showed that even the market’s favourite bank is not immune from disappointment.

A quarterly update that fell short of expectations, higher provisioning, and Budget-related concerns combined to push CBA shares lower.

The stock recovered from its monthly low, but investors may remain cautious until there is greater confidence around margins, credit quality, and the broader economic outlook.

The post Why did CBA shares sink 5% in May? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: BHP, PLS Group, CBA shares
• Should I buy CBA shares for their ‘reliable’ passive income?
• 5 things to watch on the ASX 200 on Monday
• Why the negative gearing changes could impact CBA shares more than anyone realises
• Why ASX mid-cap shares are finally about to have their moment: Expert

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.

Commonwealth Bank of Australia (ASX: CBA) shares are slipping today.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed on Friday trading for $165.02. As we head into the Monday lunch hour, shares are changing hands for $163.09 apiece, down 1.2%.

For some context, the ASX 200 is down 0.2% at this same time.

Taking a half step back, CBA shares have gained 1.3% in 2026 so far, outpacing the 0.2% year to date loss posted by the benchmark index.

Atop that modest share price outperformance, CommBank also paid out a $2.35 fully-franked interim dividend on 30 March.

Adding in the $2.60 final dividend, delivered to stockholders’ bank accounts on 29 September, and CBA stock trades on a fully-franked trailing dividend yield of 3%.

As for the reliability of that passive income, CBA has made two fully-franked dividend payments every year for more than a decade now.

Which brings us back to our headline question.

Are CBA shares a good buy for passive income?

Red Leaf Securities’ John Athanasiou recently analysed the outlook for Australia’s biggest bank stock (courtesy of The Bull).

“CBA remains the highest quality franchise in Australian banking, supported by its dominant deposit base, strong digital ecosystem and industry leading profitability,” he noted.

Athanasiou added, “Earnings remain resilient, but growth is moderating as mortgage competition intensifies and credit expansion normalises.”

At its third-quarter results (Q3 FY 2026), released on 13 May, CBA reported an unaudited cash net profit after tax of around $2.7 billion. That was up 4% from Q2; however, cash profits were down 1% from the first half-year quarterly average.

As for that passive income, Athanasiou said, “Credit quality is stable and dividends remain highly reliable, reinforcing its defensive appeal.”

Connecting the dots, Athanasiou issued a hold recommendation on CBA shares.

He concluded:

However, the key issue is valuation, with the stock trading at a significant premium to domestic and global peers. Much of the quality and stability is already priced in, leaving limited upside without a material macro or earnings surprise to the upside.

How does CommBank’s valuation stack up to rival ASX 200 bank stocks?

The premium commanded by CBA shares has long been an issue for many analysts and fund managers.

CommBank stock currently trades on a price-to-earnings (P/E) ratio of around 26 times.

To put that into some perspective, Westpac Banking Corp (ASX: WBC) shares trade on a P/E ratio of around 18 times; ANZ Group Holdings Ltd (ASX: ANZ) shares trade on a P/E ratio of around 17 times; and National Australia Bank Ltd (ASX: NAB) shares trade on a P/E ratio of around 17 times.

The post Should I buy CBA shares for their ‘reliable’ passive income? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: BHP, PLS Group, CBA shares
• Why did CBA shares sink 5% in May?
• 5 things to watch on the ASX 200 on Monday
• Why the negative gearing changes could impact CBA shares more than anyone realises
• Why ASX mid-cap shares are finally about to have their moment: Expert

Motley Fool contributor Bernd Struben 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 some new investment opportunities, then it could be worth checking out the three ASX shares in this article.

That’s because they have just been named as buys by experts, courtesy of The Bull.

Let’s see what they are recommending to investors:

Aristocrat Leisure Ltd (ASX: ALL)

The team at Red Leaf Securities believes this gaming technology company’s shares are a buy this week.

Although the ASX 200 share trades with a premium valuation, it believes this is justified given its strong return on equity and positive earnings growth outlook. It said:

The business is transitioning from a traditional gaming supplier into a global digital entertainment platform, with its social gaming division driving much of the growth momentum. This improves margins, lifts earnings visibility and reduces cycles over time. Land-based gaming remains a stable cash generator, supporting re-investment and shareholder returns.

Management execution has been consistently strong, with disciplined capital allocation and successful integration of acquisitions. The stock trades at a premium valuation, but, in our view, it’s justified by return on equity, offshore growth exposure and a structural earnings upgrade story that continues to play out.

BHP Group Ltd (ASX: BHP)

Another ASX 200 share that gets the thumbs up from Red Leaf Securities is mining giant BHP.

It has named BHP shares as a buy this week due largely to its positive view on the company’s growing exposure to copper. It said:

Iron ore sales continue to drive earnings, but the key long term story is copper, where demand is structurally supported by electrification, grid investment and artificial intelligence related infrastructure. Consequently, it gradually shifts BHP from a traditional cyclical miner towards a more diversified industrial metals compounder.

Cash generation remains strong, supporting consistent dividends and capital management. The balance sheet is conservative, allowing flexibility through the cycle. While iron ore is still exposed to Chinese demand volatility, BHP’s scale and low cost positioning provide downside protection.

Origin Energy Ltd (ASX: ORG)

A third ASX 200 share that experts are positive on this week is energy retailer Origin Energy.

Catapult Wealth has named Origin Energy shares a buy. It likes the company due to its belief that it is well-placed to benefit from electrification and its energy security. It said:

Origin is a key player in Australia’s energy supply chain. Broader energy supply disruptions caused by the conflict in Iran are likely to be a net positive for Origin. The company’s gas will become more appealing to Asian consumers when compared to Middle Eastern competitors.

Electricity sales volumes in the March quarter were up 4 per cent on the prior quarter. Longer term, Origin is positioned to benefit from electrification and its energy security.

The post Experts name BHP and these ASX 200 shares to buy this week appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Mineral Resources, IAG, Origin Energy shares
• Why did ASX 200 retail shares lead the market last week?
• Why ASX mid-cap shares are finally about to have their moment: Expert
• I’d aim for $1 million in retirement buying just 10 ASX 200 shares
• 5 ASX 200 shares downgraded by brokers this week

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

Qantas Airways Ltd (ASX: QAN) shares just flew through a very strong month.

Shares in the S&P/ASX 200 Index (ASX: XJO) airline stock closed out April trading for $8.41. On Friday, the last trading day of May, shares closed the day swapping hands for $9.44 apiece.

That saw the Qantas share price up a very impressive 12.3% in May, soaring ahead of the 0.8% one-month gains posted by the ASX 200.

But with no fresh price-sensitive news out from the Flying Kangaroo over the month, why were investors piling back into the stock?

Let’s find out!

Qantas shares rebound on Middle East peace hopes

The first welcome tailwind for Qantas over the month just past was the ongoing peace negotiations between the United States and Iran.

Hopes for an end to the war in the oil-rich Middle East saw the Brent crude oil price drop from US$114 per barrel on 30 April to trade for US$92 per barrel at the end of May, according to data from Bloomberg. That’s a decline of almost 20%.

As you’re likely aware, the price of oil – or more specifically jet fuel – can have a material impact on the performance of Qantas shares.

How material?

Well, on 26 February – right before the outbreak of the Iran war – Qantas forecast that it would spend some $2.5 billion on jet fuel in the second half of the financial year (H2 FY 2026).

But with oil prices surging amid the closure of the Strait of Hormuz, on 14 April Qantas increased its second-half jet fuel spend expectations to be in the range of $3.1 billion to $3.3 billion. At the higher end of that range, this would see the airline spend $600 million more to fuel its planes than management expected in February.

The rebound potential for Qantas shares from declining oil prices wasn’t lost on Mans Carlsson, co-portfolio manager at Ausbil.

In early May, Carlsson noted:

The market has priced an assumption that oil prices remain elevated, and we believe that investors need to look through the current geopolitical crisis. At present, Qantas is trading at an FY28 price-earnings ratio of approximately seven times, which is extremely low versus the market average.

We think that as we move beyond the oil supply shock, Qantas could be set for a significant re-rate on improving operating conditions.

ASX 200 airline moving in on Air New Zealand’s turf

Investor sentiment for Qantas shares also looks to have taken a positive turn in May after the company revealed expanded operations to and from New Zealand, potentially at the expense of Air New Zealand Ltd (ASX: AIZ).

“What we’ve learned over more than a century of flying is that when conditions are difficult, you back the relationships that matter most,” Qantas CEO Vanessa Hudson said.

Hudson added:

New Zealand s one of those relationships. And we are backing it…

Across Qantas and Jetstar, more than 800,000 seats have been added between Australia and New Zealand over the last 12 months.

The post How Qantas shares soared ahead of the ASX 200 in May appeared first on The Motley Fool Australia.

More reading

• 3 reasons I would buy Qantas shares under $10
• 3 ASX shares that could benefit most if the US-Iran peace deal holds
• Virgin Australia, Qantas shares jump 8% higher this week. Are the ASX airline stocks a buy, sell or hold?
• If you invested $1,000 in Qantas shares a decade ago, here’s what they would be worth now
• Why Charter Hall, Coronado Global, Meeka Metals, and Qantas shares are racing higher today

Motley Fool contributor Bernd Struben 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.

ASX dividend shares can be useful building blocks for investors wanting to boost their passive income.

And while chasing the very highest dividend yields on the market can be risky, there are still quality names offering income that sits comfortably above the market average.

The two ASX dividend shares below could be examples. Both are backed by brokers, have defensive qualities, and are forecast to offer dividend yields approaching 6% over the next couple of years.

With that in mind, here’s why they could be worth a closer look this month.

Amcor plc (ASX: AMC)

The first ASX dividend share to look at is Amcor.

It is a global packaging company that supplies flexible and rigid packaging to customers across food, beverage, healthcare, personal care, and other consumer markets.

Many of the products Amcor helps package are everyday essentials, which can make demand more resilient than in highly discretionary sectors.

The company also has global scale, long customer relationships, and exposure to large consumer goods companies that need reliable packaging partners. This gives Amcor a broad earnings base and the ability to keep investing in innovation, sustainability, and efficiency.

Morgans is a fan and has a buy rating and $65.40 price target on its shares.

As for income, it is forecasting dividends per share of $3.85 in FY 2026 and $3.93 in FY 2027. Based on its current share price of $54.94, this would mean dividend yields of 7% and 7.15%, respectively.

APA Group (ASX: APA)

Another ASX dividend share that could be worth a look is APA Group.

APA owns and operates energy infrastructure across Australia, including gas pipelines, storage, processing, and power assets. These assets play an important role in keeping energy moving around the country.

That gives the business a different income profile from many traditional dividend shares. APA is not dependent on retail spending or commodity price cycles in the same way as many ASX companies.

Reliable energy infrastructure remains important as Australia balances affordability, security, and decarbonisation. Gas and flexible generation may continue to play a role in supporting the grid as more renewable energy is added.

Macquarie is positive on the company and has an outperform rating and $10.41 price target on its shares.

The broker also expects some generous dividend yields in the near term. It is forecasting dividends per share of 58 cents in FY 2026 and then 59 cents in FY 2027. Based on its current share price of $10.01, this would mean dividend yields of 5.8% and 5.9%, respectively.

The post 2 strong ASX dividend shares with big yields to buy in June appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares offering yields above 5% that most investors have never heard of
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• 3 ASX dividend shares raising dividends like clockwork
• 3 ASX dividend shares yielding 5.5% or more
• Should I buy Amcor shares for their ‘attractive’ dividend yield?

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