Author: openjargon

There is always something exciting happening in the share market.

A new technology trend, a speculative fast-growing company, or a sector that suddenly captures everyone’s attention. It is easy to get drawn toward those stories.

But over time, I think a different group of ASX shares tends to do a lot of the heavy lifting.

The ones that quietly grow, generate steady cash flow, and keep showing up year after year.

The appeal of predictable ASX shares

One of the things I value more as an investor is predictability.

Businesses that sell essential products or services often have a clearer path forward. Their revenue is not dependent on a single breakthrough or a narrow window of opportunity.

Companies like Woolworths Group Ltd (ASX: WOW) fall into that category.

Grocery retail is not the most exciting industry, but it is deeply embedded in everyday life. That creates a level of demand that can support consistent earnings over time.

For me, that consistency can make a big difference when holding a share for many years.

Compounding does not need excitement

The idea of compounding is simple, but the way it plays out is often underestimated.

A business that can grow earnings steadily, reinvest capital, and return cash to shareholders can build significant value over time, even if it does not attract much attention along the way.

That is part of what I see in ASX shares like Transurban Group (ASX: TCL).

Its toll road assets generate revenue from everyday usage, and those cash flows tend to grow gradually alongside population and economic activity.

It is not a story that changes dramatically from year to year, but that can be what supports long-term returns.

Stability can support better decisions

Another benefit of owning more predictable businesses is how they influence behaviour.

When a share price moves sharply, it can lead to more reactive decisions. Investors may feel the need to act, even when nothing fundamental has changed.

With steadier businesses, I think it can be easier to stay focused on the long term.

That is one reason I like companies such as Coles Group Ltd (ASX: COL) and Telstra Group Ltd (ASX: TLS).

They operate in a competitive industry, but demand for groceries and telco services remains consistent. That creates a level of stability that can make it easier to hold them through different market conditions.

The trade-off is worth understanding

Boring ASX shares are not perfect.

They may not deliver the same upside as faster-growing companies, and they can still face challenges over time. But they often offer something that I think is just as valuable.

A clearer path forward. That clarity can make it easier to stay invested, which is often one of the most important factors in long-term success.

Foolish Takeaway

The share market will always offer exciting opportunities. But for me, there is also value in owning businesses that quietly do their job and continue to grow over time.

I think Woolworths, Transurban, Coles, and Telstra highlight how the ASX shares that feel the least exciting are the ones that are easiest to hold, and that can make a meaningful difference over time.

The post Why I think ‘boring’ ASX shares could make you richer over time appeared first on The Motley Fool Australia.

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• The ASX shares I’d buy for passive income in April and beyond
• Just starting out? These 5 ASX shares could be the perfect first buy

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

Dateline Resources Ltd (ASX: DTR) shares are under heavy pressure on Friday, with the high-flying small cap pulling back after an extended run higher.

At the time of writing, the Dateline share price is down 13.70% to 31.5 cents. That extends a pullback of nearly 30% over the past week.

Despite the recent drop, the overall trend remains strong. The stock is up around 40% in 2026 and more than 5,000% over the past 12 months.

Today’s decline follows a fresh update released to the ASX.

Company responds to US legal coverage

According to the announcement, Dateline issued a response to recent media reporting in the United States tied to legal proceedings involving the Colosseum Gold and Rare Earths Project in California.

The proceedings have been brought by the National Parks Conservation Association and name US federal agencies as respondents. Dateline itself is not a named party in the case.

Management said the reporting does not fully reflect the historical context or the status of existing mining rights linked to the project. The company also stated it does not agree with some of the assumptions made in the coverage.

Dateline reiterated that activities at the Colosseum project are continuing in line with its approved plan of operations and existing rights.

The company added that it will keep monitoring developments and update shareholders on any material changes.

Flagship project remains central

The Colosseum Gold and Rare Earths Project remains the key asset driving investor interest.

Dateline owns 100% of the project, which sits in California’s Walker Lane Trend. The site has an existing gold resource and is also being assessed for rare earth potential.

Previous updates have pointed to economics supported by a gold price assumption above US$2,900 per ounce. The company has also been progressing work linked to rare earth exposure near the historic Mountain Pass region.

That combination has been a major factor behind the stock’s re-rating over the past year, as investors seek exposure to US-based critical minerals assets.

Volatility follows a rapid re-rating

Moves of this size are not unusual for the Dateline stock.

The share price surged through late 2025 and into 2026, driven by higher gold prices, rare earth interest, and project updates.

After such a strong run, the stock can become more sensitive to shifts in sentiment, even without any operational change.

Foolish takeaway

The company has not flagged any impact to operations, but the update adds some uncertainty around how the project may be viewed.

After such a large run, swings like this are not surprising.

From my side, I would rather watch this one from the sidelines. The volatility is high, and there are more stable opportunities elsewhere on the ASX.

The post Why this ASX mining high-flyer just dropped 14% in a day appeared first on The Motley Fool Australia.

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• Why Dateline, Karoon Energy, Lindian, and PEXA shares are falling today
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• Up 100% in 2026, this ASX stock just dropped 8%. Here’s why
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Wesfarmers Ltd (ASX: WES) shares are sliding today.

Shares in the diversified S&P/ASX 200 Index (ASX: XJO) conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks, and Priceline – closed yesterday trading for $74.06.

As we head into the Friday lunch hour, shares are changing hands for $72.60 apiece, down 2%.

For some context, the ASX 200 is down 0.5% at this same time.

Longer term, Wesfarmers shares are down 2.6% over 12 months, trailing the 13.9% one-year gains posted by the benchmark index.

Though that doesn’t include the $2.53 in fully-franked dividends the company has paid eligible stockholders over this time. Wesfarmers stock trades on a fully-franked trailing dividend yield of 2.5%.

Which brings us back to our headline question.

Should you buy Wesfarmers shares today?

Shaw and Partners’ Jed Richards recently ran his slide rule over Wesfarmers stock (courtesy of The Bull).

“This company continues to deliver reliable earnings through its diversified portfolio of quality retail and industrial businesses,” he said.

Digging into Wesfarmers’ half-year results (H1 FY 2026), released on 19 February, Richards said:

Company net profit after tax rose 9.3% in the first half of 2026 when compared to the prior corresponding period. Revenue was up 3.1%. Hardware giant Bunnings lifted total sales by 4%. Total sales at Officeworks were up 4.7%. Strong balance sheet discipline and management execution support resilience across economic cycles.

Despite that solid growth, Richards doesn’t believe now is the best time to buy Wesfarmers shares. He concluded:

Much of this is already reflected in the share price, limiting near term upside, in my view. While it remains a high-quality core holding, we believe a hold rating is appropriate until a lower share price or growth catalyst emerges.

Commanding a market cap of almost $83 billion, Wesfarmers shares trade on a price-to-earnings (P/E) ratio of around 27 times.

What’s the latest from the ASX 200 stock?

The last price-sensitive news out from Wesfarmers was the half-year report Richards mentioned above.

With profits up 9.3%, the company rewarded passive income investors with a fully franked interim dividend of $1.02 per share, up 7.4% from the prior year’s interim dividend payout.

Commenting on the half-year results, Wesfarmers managing director Rob Scott said, “Wesfarmers’ increase in profit was supported by strong earnings contributions from our largest divisions – Bunnings, Kmart Group and WesCEF.”

Scott added:

During the half, Wesfarmers’ divisions benefited from productivity initiatives to navigate ongoing challenging market conditions… The divisions performed well, driving productivity to mitigate cost pressures and keep prices low for customers.

Wesfarmers shares closed down 5.6% on the day of the results release.

The post Should you buy Wesfarmers shares amid rising profits and revenues? appeared first on The Motley Fool Australia.

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

Shares in medical technology company Echo IQ Ltd (ASX: EIQ) hit a record high of $1.25 in early trade on Friday, but according to the team at Morgans, there’s potential for them to surge even higher.

Key new technology

So what does the company do?

EchoIQ has developed a technology it calls EchoSolv HF, which is software which allows clinicians to identify patients with heart failure using data from echocardiograms.

The company last month said it had struck an agreement with the Mayo Clinic in the US, which paved the way for the technology to be rolled out once it was approved by the US Food and Drug Administration.

As the company said at the time, the agreement with the Mayo Clinic followed a collaboration between the two organisations.

The expanded agreement follows a validation study conducted through the Mayo Clinic Platform validation program. The study met its primary endpoint, with EchoSolv HF demonstrating a sensitivity of 99.5% in identifying patients with heart failure and a specificity of 91.1% in correctly identifying patients without heart failure. These results have not been reviewed or cleared by the FDA and are subject to the FDA’s regulatory review process. Following this study, the Company lodged its market clearance application for EchoSolv HF with the FDA via the 510(k) premarket notification pathway. The Company advises that it is currently progressing through the FDA review process and will provide additional updates as developments materialise.

The company said the clearance had the potential to unlock a significant market opportunity, with heart failure a “substantial and growing burden on the US healthcare system”.

Share price upside remains

EchoIQ shares have appreciated substantially over the past year as the company has progressed its technology, improving from a low of 16.5 cents to be trading at a year-high of $1.25 today.

This is close to the Morgans target price of $1.30, but the analyst team at Morgans have flagged there’s further significant upside possible following FDA approval.

As they said:

We initiate coverage with a Speculative Buy rating and $1.30 price target with potential upside to $1.68 on approval/reimbursement, underpinned by near‑term FDA clearance, reimbursement progression, and a credible pathway to US commercial scaling. We expect a positive outcome from the EchoSolv HF FDA 510(k), due imminently, which unlocks the large, structurally undiagnosed US cardiac market. Combined with attractive unit economics and clear patient and hospital benefits, we see a high probability of rapid US adoption and monetisation.

Echo IQ was valued at $759.9 million at the close of trade on Thursday.

The post This ASX health tech stock just hit a new record high. Could it go even higher? appeared first on The Motley Fool Australia.

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

NRW Holdings Ltd (ASX: NWH) shares are edging higher on Friday, continuing a strong run over the past year.

In morning trade, the NRW share price is up 1.68% to $6.07. That move leaves the stock ahead roughly 145% over the past 12 months, placing it among the better performers in the industrials sector.

The latest move comes after a fresh update released to the market today.

Here’s what was announced.

Fresh contract wins add to workload visibility

According to the release, NRW’s wholly owned subsidiary, Fredon, has secured a series of new electrical and mechanical contracts with a combined value of around $160 million.

The largest component is an electrical package tied to a major Commonwealth infrastructure project in Northern Australia, valued at about $110 million.

Work is expected to be completed by mid-2028.

There is also a $23 million design and construct contract linked to the Festival Towers project in Adelaide. This follows around 12 months of early contractor involvement work, with completion targeted for 2028.

Another contract includes a $24 million mechanical package for a joint venture hospital project in South Australia, with completion expected around mid-2027.

Additional wins include a $5 million electrical contract for bus charging infrastructure in South Australia, as well as work on charging systems at the Oakleigh bus depot in Victoria.

Diversification remains a key part

NRW has built its growth profile across several end markets, including mining services, civil construction, and infrastructure.

The latest contract awards show its engineering and maintenance division continuing to pick up work outside traditional resources exposure.

Management noted the mix of contracts reflects demand across infrastructure and renewables-linked activity, particularly where specialised electrical capabilities are required.

This diversification has reduced reliance on commodity cycles and supported more consistent earnings.

Strong run backed by project delivery

NRW’s share price has trended higher over the past year as the company continues to deliver regular project wins and maintain a strong order book.

The stock is now trading toward the upper end of its recent range, with investors still backing delivery across its core divisions.

With multiple projects stretching out over several years, revenue visibility has improved, which supports higher valuation multiples.

Foolish takeaway

NRW is not relying on one project or one cycle. Work is coming through across infrastructure, energy, and essential services, which gives earnings a more stable base.

After a 145% run, a lot of the easy upside has already been captured. But the steady flow of new contracts and a multi-year pipeline still point to earnings growth from here.

This usually comes down to delivery. If projects keep moving on time and margins hold, the share price can keep moving higher.

The post Why this $2.8 billion ASX stock is climbing today appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Looking for some new portfolio additions? If you are, it could be worth hearing what Morgans is saying about the three popular ASX shares listed below.

Does the broker rate them as buys, holds, or sells? Let’s find out:

Evolution Mining Ltd (ASX: EVN)

This gold miner delivered a solid quarterly update this week despite battling bad weather and maintenance impacts.

In response, Morgans has upgraded Evolution Mining’s shares to an accumulate rating with a $16.10 price target. Commenting on the company, the broker said:

Gold production met expectations despite weather and maintenance impacts, with weaker copper and higher AISC driven by Ernest Henry disruptions. Strong 4Q26 expected to achieve FY26 guidance. Achieves net cash position with an updated capital management policy expected at its FY26 result in August. We upgrade to an ACCUMULATE (from HOLD) following recent weakness across the gold sector which we believe has uncovered value in a high-quality name, despite a strong share price reaction post the result.

Netwealth Group Ltd (ASX: NWL)

Another ASX share that Morgans has been looking at is Netwealth. In response to the investment platform provider’s quarterly update, the broker has retained its accumulate rating with a $29.00 price target.

The broker notes that although Netwealth’s fund under administration (FUA) fell short of expectations, this was due to market weakness. And with the market rebounding this month, it believes its FUA will have improved in the fourth quarter. It explains:

NWL’s 3Q26 net-flows of $3.96bn came in modestly ahead of expectations, however market volatility during the period eroded this solid performance to see 3Q26 FUA ending the quarter flat QoQ at A$125.8bn, (vs. Consensus A$129.8bn). Despite ongoing volatility and uncertainty tied to a US/Middle East conflict and a potential resolution, market momentum has recovered from peak pessimism in the March Quarter, with the ASX All Ordinaries +5.6% month-to-date in April’26, which will have seen FUA growth momentum improve post quarter end.

Looking through this near-term volatility NWL remains on track [to] deliver solid growth FY26F and well placed to capitalise on the long runway of opportunity ahead. We retain our ACCUMULATE rating, with a Price target of $29.00/sh.

Nufarm Ltd (ASX: NUF)

Finally, Morgans was pleased with this agricultural chemicals company’s guidance for the first half of FY 2026. It notes that its earnings are slightly ahead of expectations and its balance sheet deleveraging is far better than expected.

As a result, it has reaffirmed its buy rating with a $4.05 price target. It said:

Pleasingly, NUF’s 1H26 EBITDA guidance was slightly higher than expected and it has had a strong 1H. Importantly, its leverage guidance is materially better than expected. Initial outlook comments for the 2H26 were positive and a new A$50m cost out program has been announced.

Given the appreciation in active ingredient and fish oil prices, NUF’s previous FY26 guidance could prove to be conservative. NUF is our key pick of the ag and chemical sector. The company is materially undervalued and we reiterate our BUY rating with a new price target of A$4.05.

The post Buy, hold, sell: Evolution Mining, Netwealth, and Nufarm shares 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 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.

Shares in Eden Innovations Ltd (ASX: EDE) have jumped by a third after the company said it was launching a division focused on the defence sector.

In a statement to the ASX on Friday, the company said the new EdenShield division would aim to commercialise the company’s product suite across critical infrastructure and national security applications, including drones, data centres, bunkers, military bases, hospitals, and defence-related buildings.

High tech concrete a differentiator

This would involve using the company’s EdenCrete range of concrete additives for ultra-high performance concrete, and carbon nanotube (CNT) infused high strength lightweight plastics, as well as a dual-fuel diesel system for cheaper backup power generation.

Eden said EdenCrete could provide enhanced blast resistance, durability, and thermal performance, which was ideal for military requirements.

The company also had a range of CNT-enriched products including concrete, paint, and other coatings which offered superior electromagnetic pulse and radio frequency shielding capabilities.

These products could be used for protecting aircraft, drones, ships, equipment, and infrastructure “from electromagnetic interference (EMI), high-altitude EMP (HEMP) events, and intentional electronic warfare attacks that could disrupt or disable critical systems”.

On the fuel front, the company said:

OptiBlend, Eden’s long proven proprietary, dual-fuel technology extends backup power duration by up to 150%, by replacing up to 70% of the required diesel fuel with lower-cost natural gas, enhancing resilience of critical infrastructure such as military outposts, hospitals, and data centres. This dual-fuel technology solution used for 18 years offers significant benefits at a critical time for record-high fuel prices globally and has the potential to help mitigate spiralling fuel costs and add fuel versatility.

The company said the global aerospace and defence sectors were worth a combined US$900 billion currently, which was forecast to grow to more than US$2 trillion by 2034.

Key milestone

Eden Executive Chairman Greg Solomon said it was a pivotal turning point for the company.

The establishment of EdenShield represents a significant strategic step for Eden as we position our technologies to address the rapidly growing global demand for defence capability and infrastructure resilience. Our long-proven CNT-based solutions offer a significantly superior solution to the traditional products used in the construction and manufacturing of critical defence, military and infrastructure assets. Similarly, our dual fuel technology offers significant improvements to back-up power generation. The EdenShield launch comes at an opportune time for Eden to grow its market presence and offer increased protection and durability for these important industries critical to national security.

Eden shares were trading 6 cents higher at 24 cents, up 33.3%. The shares have been as low as 1.6 cents during the past 12 months.

The ASX small-cap company was valued at $104.1 million at the close of trade on Thursday.

The post Up more than 10-fold over the past year, this ASX small-cap stock just jumped another 33% appeared first on The Motley Fool Australia.

More reading

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• Buy, hold, sell: Evolution Mining, Netwealth, and Nufarm shares
• Why Paladin Energy, Alcoa and Zip shares are making headlines on Friday
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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Paladin Energy Ltd (ASX: PDN), Alcoa Corp (ASX: AAI), and Zip Co Ltd (ASX: ZIP) shares are catching financial headlines today.

In morning trade on Friday, two of the S&P/ASX 200 Index (ASX: XJO) stocks are racing ahead of the 0.5% losses posted by the benchmark index at the time of writing, while one is trailing those losses.

Here’s what’s catching ASX investor interest.

Zip shares rocket on record quarterly earnings

Zip shares are racing higher today, up 11.7% and trading for $2.29 apiece.

This strong performance follows the release of the ASX 200 buy now, pay later (BNPL) stock’s third-quarter (Q3 FY 2026) results.

Highlights for the three months included a 22.4% year-on-year increase in total transaction volume (TTV) to $4 billion. And total income was up 20.2% from Q3 FY 2025 to $335.2 million.

Zip shares are also getting a boost with the company reporting record quarterly earnings. Earning before tax, depreciation and amortisation surged 41.5% year on year to $65.1 million.

This led management to upgrade Zip’s full-year FY 2026 cash EBTDA guidance to no less than $260 million.

Which brings us to…

Paladin Energy shares lift on production upgrade

Paladin Energy shares are also making news and enjoying a strong run today. Though not quite as strong as Zip shares.

Shares in the ASX 200 uranium stock are changing hands for $14.54 at the time of writing, up 2.7%.

Investors are bidding up Paladin Energy shares after the company released a positive operations and guidance update for its Langer Heinrich Mine (LHM).

Following an efficient ramp-up of LHM to full mining, and with 3.6 million pounds of uranium oxide produced so far in FY 2026, management increased full-year uranium production guidance to between 4.5 million and 4.8 million pounds. That’s up from previous guidance of 4.0 million to 4.4 million pounds.

Also likely helping boost Paladin Energy shares today, the company reduced its full-year capital and exploration expenditure guidance.

And finally…

Alcoa shares slide on revenue dip

Joining Paladin and Zip shares in the headlines today, but heading in the other direction, is Alcoa, which produces and sells bauxite, alumina, and aluminium products.

Alcoa shares are down 2.9% at the time of writing, swapping hands for $97.14 apiece.

Investors have been pressuring the ASX 200 stock following the release of its quarterly update.

While adjusted EBITDA, excluding special items, increased 13% quarter on quarter to US$595 million, alumina production fell 5%, impacted in part by Cyclone Narelle.

This led to a 7% quarter-on-quarter decline in revenue to US$3.2 billion.

The post Why Paladin Energy, Alcoa and Zip shares are making headlines on Friday appeared first on The Motley Fool Australia.

More reading

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• Paladin Energy hikes FY2026 outlook after Langer Heinrich ramp-up
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• Zip Co posts record cash EBTDA and upgrades FY26 guidance

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.

DroneShield Ltd (ASX: DRO) shares have been an incredible investment over the past few years.

During this time, the counter-drone technology company has gone from being a relatively unknown small-cap ASX defence stock to a $3.3 billion ASX 200 share.

Investors may now be wondering which stock could follow in its footsteps. Well, let’s look at one defence stock that Bell Potter is tipping as a buy.

Which ASX defence stock?

The stock in question is Elsight Ltd (ASX: ELS).

It is a supplier of communication modules to drone manufacturers, offering advanced communication components for unmanned systems through its flagship product, the Halo platform.

This platform aggregates all available communication paths into one resilient, encrypted pipe for beyond visual line of sight (BVLOS) control, video and telemetry.

Bell Potter has been looking at trends in the drone industry and believes it points to strong demand for Elsight’s technology. It said:

US and Europe are severely lacking UAS production capacity when compared to Ukraine and adversaries. In a single instance, China ordered ~1m Kamikaze UAS for delivery in 2026. In comparison, the US reportedly procured 50k UAS annually prior to 2026. Governments globally have responded to this deficiency: (1) US budgets US$9.4b in FY26 for autonomous systems and seeks “Drone Dominance”; (2) US is fast-tracking procurement as highlighted by LUCAS, a reverse-engineered Shahed-136 copy, that went from prototype to combat deployment over Iran in seven months, signalling the US will procure expendable UAS at speed; and (3) Germany plans to invest €10.0b in UAS with contracts flowing.

EPS changes are +10%/+30%/+38% over CY26/27/28e, reflecting higher revenue due to our observation of greater than anticipated demand and production of non-FPV UAS in Europe, US and Ukraine; offset partially by higher install base attrition rates due to continued expected conflict. TP upgraded on higher free cash flows.

Should you invest?

According to the note, the broker has retained its buy rating on the ASX defence stock with an improved price target of $8.00 (from $5.80).

Based on its current share price of $6.80, this implies potential upside of 18% for investors.

Bell Potter concludes:

We retain Buy. We believe ELS has developed a market leading product that is leveraged to the proliferation of unmanned systems in both a defence and commercial context. We believe ELS shares offer relative value versus listed peers at 43x CY26e EV/EBIT given its recurring revenue, high ROIC business model and defensible niche. We expect the key driver for ELS shares will be revenue upgrades from OEM 1(>80% of CY25 revenue) production capacity expansion and BlueUAS list entry.

The post Looking for another DroneShield? Check out this buy-rated ASX defence stock 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 and is short shares of 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.

Oil prices moved higher overnight, with both major benchmarks extending recent gains as markets respond to shifting global signals.

West Texas Intermediate (WTI) crude is up about 2% to US$93.19 per barrel. Brent crude has climbed roughly 3% to US$98.01 per barrel. Both are now trading near the upper end of their recent ranges.

The move adds to a strong run over the past year. WTI is up roughly 45% over 12 months, while Brent has gained 44% over the same period. Prices have also lifted from levels closer to US$60 per barrel late last year.

Here’s what the market is focused on.

Geopolitical risk remains front of mind

Recent price action has been closely tied to developments in the Middle East.

Ongoing tensions in the region have kept attention on key oil transit routes, including the Strait of Hormuz. Reports indicate markets are reacting to changing expectations around potential disruptions.

The Strait of Hormuz remains one of the world’s most important oil shipping routes, handling a large share of global exports each day.

At the same time, news headlines around ceasefire discussions and negotiations continue to shift sentiment. Prices have moved in both directions as updates emerge, showing how quickly expectations are being repriced.

Inventory data adds another layer

Alongside geopolitical developments, recent supply data has also supported prices.

Latest figures show US crude inventories fell by 9.13 million barrels last week. That contrasts with expectations for a modest build of around 154,000 barrels.

The drawdown follows a period of inventory increases and points to a tighter near-term supply outlook. Moves in oil have tracked closely with these updates, adding to upward pressure in recent sessions.

Prices remain elevated despite mixed short-term moves

While prices have moved higher overnight, recent performance has been mixed.

WTI is down 3% over the past month, showing how quickly sentiment has shifted. Even so, both WTI and Brent remain well above levels seen earlier this year.

Recent trading data also shows that WTI briefly moved above US$95 per barrel during the latest rally before easing slightly, while Brent has held closer to US$98.

What the latest move reflects

There have been no confirmed large-scale supply disruptions in the latest updates.

Even so, prices remain elevated as markets continue to factor in potential risks and react to incoming data.

That keeps oil highly sensitive to new information, with pricing adjusting quickly as expectations change.

Prices suggest traders are still accounting for disruption risk, even though supply has not been materially affected.

The post Oil jumps again. Here’s what the market is watching closely appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.