Author: openjargon

Fortunately for income investors in this low interest rate environment, there are many options for them on the Australian share market.

Two ASX dividend shares that brokers think are in the buy zone right now are listed below. Here’s what they are recommending to clients:

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre could be an ASX dividend share to buy this month.

That’s the view of analysts at Morgans, who believe that it is worth holding very tightly to this travel agent’s shares.

The broker believes that when trading conditions return to normal, the upside could be significant for investors. It said:

FLT’s FY25 result was broadly in line with its recent update. Corporate was weaker than expected while Leisure and Other were stronger. FLT’s guidance for a flat 1H26 was stronger than we expected however it was weaker than consensus. Earnings growth is expected to accelerate in the 2H26 from an improvement in macro-economic conditions and internal business improvement initiatives. We have made minor upgrades to our forecasts.

We are buyers of FLT during this period of short-term uncertainty and share price weakness because when operating conditions ultimately improve, both its earnings and share price leverage to the upside will be material.

As for income, Morgans is expecting fully franked dividends of 51 cents per share in FY 2026 and then 58 cents per share in FY 2027. Based on the current Flight Centre share price of $12.71, this would mean dividend yields of 4% and 4.6%, respectively.

The broker has a buy rating and $15.65 price target on its shares.

GDI Property Group Ltd (ASX: GDI)

Another ASX dividend share that has been given the thumbs up by analysts is GDI Property Group. It is an integrated, internally managed commercial property investor.

Bell Potter is positive on the company and highlights the massive discount that its shares are trading on at present. The broker explains:

No change to our Buy recommendation. GDI continues to trade at a significant -41% discount to NTA which reflects no value for its FM OpCo, and while the Perth office market recovery could be a ‘slow burn’ with early leasing wins working through for GDI, we do still see upside from current levels which drops straight through to FFO gains

In respect to dividends, the broker is forecasting payouts of 5 cents per share in both FY 2026 and FY 2027. Based on its current share price of 65.5 cents, this would mean dividend yields of 7.6% for both years.

Bell Potter has a buy rating and 85 cents price target on its shares.

The post Which ASX dividend shares are brokers recommending to clients? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Why this leading fundie forecasts a big uplift for Flight Centre shares
• What is Bell Potter’s view on REITs?
• These are the 10 most shorted ASX shares
• How high can Flight Centre shares fly? This prediction might be a pleasant surprise

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

Owning Sigma Healthcare Ltd (ASX: SIG) shares means gaining exposure to several healthcare businesses, including Chemist Warehouse. After dropping 7% since the November peak, I think it’s worth asking whether the business is a buy-the-dip opportunity.

There are several other businesses in the portfolio, including Amcal and Discount Drug Stores. It’s also a wholesale supplier to other pharmacies.

Chemist Warehouse has pharmacies in several other countries, including New Zealand, Ireland and Dubai. It’s also working on Chinese locations.

Let’s take a look at whether this is a good time to invest in Sigma Healthcare shares.

Expert views on Sigma Healthcare shares

Broker UBS currently has a buy rating on the business because Chemist Warehouse is on course to drive “multi-year double-digit” earnings per share (EPS) growth.

UBS notes that the health and beauty market is growing at an estimated 6% per year, and Chemist Warehouse is expected to deliver continued market share gains.

The broker said that the company’s sales growth, driven by both like-for-like (LFL) sales growth and store network expansion, is delivering operating leverage. The operating profit (EBIT) margin is also benefiting from a rising gross profit margin and the ongoing synergies between Chemist Warehouse and the rest of the Sigma Healthcare business.

UBS believes the Sigma Healthcare share price and relatively high price/earnings (P/E) ratio are justified because of the potential EPS growth and the fact that it’s capital-light, making the risk-reward dynamic attractive.

Analysts at UBS predict Chemist Warehouse’s LFL sales growth could accelerate from 10.9% in FY25 to 13.2% in FY26, then a further 10.2% LFL growth in FY27. After that, high single-digit LFL sales growth is expected for FY30.

Tailwinds that could drive the industry and the company

Sigma Healthcare shares could benefit from both industry tailwinds and ongoing market share gains in the years to come, according to UBS.

The broker said there are multiple industry tailwinds, including:

(1) ageing population; (2) health prioritisation; (3) higher value medicines; and (4) greater category participation and spend per consumer in health & beauty.

On the prospect of a higher market share, UBS said:

Chemist Warehouse is likely to continue to gain share as an everyday retailer given its leadership in price & range, regulatory advantages, compliance and omni-channel capabilities. Chemist Warehouse is forecast to maintain 33 store openings as per its historical average due to: (1) franchisor support; (2) acquisitions; and (3) international growth in existing and possibly new markets.

Price target on Sigma Healthcare shares

UBS currently has a price target of $3.40 on the ASX healthcare share, implying a potential rise of 16% over the next year. The broker is also expecting the company to pay an annual dividend of 4 cents per share in the 2026 financial year.

The post Should I buy Sigma Healthcare shares for the Chemist Warehouse exposure? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Sigma Healthcare, CSL, and Lynas shares
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• Here’s how Morgans rates the 3 biggest ASX 200 healthcare shares

Motley Fool contributor Tristan Harrison 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.

It’s usually a good idea not to put all of one’s investment eggs in one basket. Different ASX shares can provide investors with both good returns and exposure to a variety of sectors, enabling diversification.

Owning a portfolio of just two businesses isn’t very diversified. But owning two investments that each have a diversified portfolio could be a smart move, particularly if they provide exposure to assets that Aussies don’t typically own.

In this article, I will discuss one exchange-traded fund (ETF) and one ASX share that’s best known as a listed investment company (LIC).

Vanguard FTSE Europe Shares ETF (ASX: VEQ)

There are several different markets that investors can invest in, including the US stock market, the global stock market, emerging markets, Asian shares, and others.

European shares could be an underrated option for Aussie investors who don’t necessarily want (more) exposure to some areas of the global share market.  

The VEQ ETF provides exposure to companies listed in major European markets.

It has more than 1,200 holdings, which is a lot of businesses and good diversification. Some of the world’s most compelling companies are in the portfolio, including ASML, SAP, Astrazeneca, HSBC, Nestle, Roche, Novartis, Shell, Siemens and LVMH.

The returns of the VEQ ETF have been solid – over the last three years, it has returned an average annual rate of 19%, and in the past five years, it has returned an average annual rate of 14.5%. Of course, past performance is not a guarantee of future returns.

I should note that I’m calling this an ASX share because it’s about investing in shares, and we can buy it on the ASX.

I view its sector allocation as more compelling than the ASX 200, with the VEQ ETF having the following weightings: financials (23.1%), industrials (19.8%), healthcare (12.9%), consumer discretionary (9.4%), technology (8.6%), consumer staples (8%), energy (5.1%), basic materials (4.5%), utilities (4.4%), telecommunications (2.7%) and real estate (1.6%).

Finally, I’ll note the country allocation is pleasing because of how many markets it’s invested in such as the UK (23.3% of the portfolio), France (14.5%), Germany (13.9%), Switzerland (13.7%), the Netherlands (7%), Sweden (5.6%), Spain (5.5%), Italy (5.4%), Denmark (2.9%), Belgium (1.8%), Finland (1.8%), Norway (1.2%) and more.

MFF Capital Investments Ltd (ASX: MFF)

MFF has spent most of its life as a pure LIC, but it recently acquired a funds management business called Montaka, so it now has an operational element (and a broader investment research team).

The main value of the business is based on its portfolio of mostly international shares. Some of its largest holdings include Mastercard, Visa, Alphabet, Amazon, Meta Platforms and Microsoft.  

The ASX share has the flexibility to invest in various markets and different-sized businesses. For example, it recently invested in L1 Group Ltd (ASX: L1G), a promising fund manager that is significantly smaller than Microsoft and the other major tech companies.

It has been trading at a discount of around 10% to its net tangible assets (NTA) in recent times, which I believe is an appealing valuation for purchase.

With a growing dividend, there’s a lot to like about the business for diversification and potential returns.

The post 2 great ASX shares I’d buy for diversification appeared first on The Motley Fool Australia.

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HSBC Holdings is an advertising partner of Motley Fool Money. Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, Alphabet, Amazon, Mastercard, Meta Platforms, Microsoft, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended AstraZeneca Plc, HSBC Holdings, Nestlé, Roche Holding AG, and SAP and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended ASML, Alphabet, Amazon, Mastercard, Meta Platforms, Mff Capital Investments, Microsoft, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The CSL Ltd (ASX: CSL) share price decline of 35% this year (at the time of writing) is one of the biggest among ASX blue-chip shares in 2025.

While the company has decades of delivering growth under its belt, the market now seems more cautious about its growth prospects in the near future.

The US healthcare industry looks challenging under the relatively new US administration, with a shift in focus on vaccines and other healthcare areas. As a major player in the vaccine space, this seems like a headwind for CSL’s medium-term growth. Other areas of CSL’s business may also not grow as fast as previously hoped.

But the significant decline of the CSL share price may mean the business is undervalued. Let’s take a look at the potential for capital gains.

CSL share price potential

Earlier this month, CSL held an investor day, with UBS seeing some mixed numbers.

Seqirus (CSL’s vaccine business) is expected to see sales fall 15% in FY26, which “reflects another significant drop in US vaccination rates, partly offset by market share gains in 65+ years in Europe.”

UBS believes there is scope for a meaningful US recovery over the medium term, with flu doses in FY26 around 30% below pre-COVID levels, compared to other large markets, which are stabilising at pre-COVID levels. But, that probably requires “greater doctor support coupled with political pressure from a higher disease burden”, with CSL not assuming a recovery in the next couple of financial years.

The broker then said:

The largest long-term opportunity [is] through new aTIVc (combined cell based and adjuvant vaccine) which should receive European regulatory approval in 2026, while a reducing number of COVID vaccinations limits the upside of its future mRNA product. Valuation: $275/share (unchanged) in 12 months’ time.

UBS is expecting a 100 basis point (1%) increase of CSL’s net profit after tax (NPAT) margin across FY27 and FY28, which helps take the potential net profit growth to high single digits.

The broker also points out that CSL has a cost-saving target of US$550 million, which could assist earnings.

Areas such as operating efficiencies, targeted gross cost savings in research and development, commercial efficiencies, and overheads could help the business reduce its addressable manufacturing costs by 11% by FY28.

CSL thinks it’s well-positioned to deal with US tariffs and ‘most favoured nation’ (MFN – cheaper healthcare costs for US customers) issues, thanks to the likely plasma exclusion and CSL’s growing US investment.

UBS rating on the ASX healthcare share

The broker has a buy rating on the business, with a price target of $275. That implies a possible rise of 50% over the next year from where it is today.

UBS is projecting profit growth each year between FY26 and FY30. But the business may need to deliver on earnings expectations to justify a strong double-digit capital gain over the next 12 months.

The post Should I buy CSL shares in December? appeared first on The Motley Fool Australia.

More reading

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

One of the many positives of ASX ETFs is the ability to gain exposure to niche themes or sectors. 

A trend that is becoming increasingly prevalent is the focus on ESG investing.

ESG investing is based on environmental, social, and governance considerations. 

It is becoming increasingly important for investors to aim not only for financial returns but also to impact the world through their investment choices positively.

For example, this could mean focusing on climate-positive companies. 

Or, it can also materialise by actively excluding companies engaged in harmful industries. 

This is called negative screening – excluding companies involved in industries like fossil fuels, weapons, tobacco, gambling, etc. 

Fortunately for ESG investors, there are numerous ASX ETFs that group companies aligned with these themes.

Let’s look at the funds that have brought the best returns in 2025. 

iShares Core MSCI World All Cap ETF (ASX: IWLD)

ESG investing can come in very different forms. For investors looking to add ESG exposure to their portfolio, it’s vital to dig into each fund to understand the screening process and underlying holdings. 

This is important because where ASX ETF providers draw the line on an ethical company may differ from your own. 

The ethos behind the iShares Core MSCI World All Cap ETF (ASX: IWLD) is centred around investing in companies with better sustainability credentials than their peers. 

The fund aims to provide investors with the performance of the MSCI World Ex Australia Custom ESG Leaders Index, before fees and expenses. The index is designed to measure the performance of global, developed market large and mid-capitalisation companies with better sustainability credentials relative to their sector peers.

A more in-depth classification of how this screening occurs can be found in the BlackRock fact sheet. 

The fund has risen more than 11% this year. 

It is currently comprised of more than 600 underlying holdings and focuses on companies outside Australia. 

Its largest weighting by sector is to: 

• Information technology (32.66%) 
• Financials (14.73)
• Consumer discretionary (10.52%). 

Vanguard Ethically Conscious International Shares Index ETF Fun (ASX: VESG)

This fund also employs a negative screening method to build its portfolio. 

According to Vanguard, it excludes the securities of companies that have a specified level of business involvement in fossil fuels, nuclear power, alcohol, tobacco, cannabis, gambling, adult entertainment or weapons. 

The index also excludes companies involved in controversial conduct related to the principles of the United Nations Global Compact.

More in-depth information about the screening process can be found on Vanguard’s website. 

The fund is up 11.6% so far in 2025. 

It is an extremely diversified fund with more than 1,400 underlying holdings. 

Its largest exposure is to: 

• Technology (40.3%)
• Consumer Discretionary (15.1%) 
• Financials (14.3%).

The post Which ethically focussed ASX ETFs have performed the best this year? appeared first on The Motley Fool Australia.

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

Shares in National Storage REIT (ASX: NSR) surged almost 20% on Wednesday after the company confirmed it was in takeover talks with private equity buyers.

The company asked for its shares to be halted from trade before the start of the session on Wednesday after The Australian reported that Brookfield Property Group and GIC Investments were running the ruler over the $3.2 billion self-storage giant.

Company definitely in play

National Storage initially did not confirm that talks were afoot; however, late in the trading day on Wednesday, the company confirmed that it had indeed been approached about “an unsolicited, non-binding, indicative and conditional proposal”.

As the company said:

Under the terms of the indicative proposal, NSR securityholders would receive $2.86 cash per stapled security on the basis that a dividend or distribution of 6 cents in respect of the financial half year ending 31 December 2025 may be paid, in which case, the cash payable per stapled security will be reduced by the amount of the dividend or distribution paid. The indicative proposal follows earlier confidential, unsolicited, non-binding and indicative proposals from the consortium and a period of negotiation including the provision of limited due diligence.

The proposal is subject to conditions, including satisfactory due diligence and a unanimous recommendation from the National Storage board. It would also be subject to regulatory approvals, including sign-off from the Foreign Investment Review Board.

National Storage stated that it had assessed the proposal and decided to grant the consortium the right to conduct due diligence.

It went on to say:

The NSR Board has also agreed to provide a period of exclusivity to the consortium ending on 7 December 2025 unless a superior proposal is received before that time and the NSR board determines to pursue it, in which case exclusivity will end at that time. The exclusivity arrangements comprise customary non-solicit, no talk, no due diligence and notification of approach obligations.

National Storage shares closed on Wednesday up 19.5% at $2.70, but still well below the potential bid price.

Takeover hype spills over to Abacus

News of the takeover approach for National Storage also put a rocket under shares in Abacus Storage King (ASX: ASK), which closed 9.3% higher on Wednesday at $1.52.

National Storage is a shareholder in Abacus, holding a stake of just under 5%, and Abacus was itself the target of takeover suitors earlier this year.

Ki Corporation and US-listed firm Public Storage (NYSE: PSA) brought a $1.47 per security bid to the company, which was rejected in May, but left Ki Corporation with a 63.5% stake in the business.

Abacus said at the time that its net tangible asset value was $1.73 based on an independent valuation, and hence the consortium’s bid was too low.

The post This ASX storage REIT’s shares surge as takeover talks confirmed 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.

Small-cap stocks tend to exhibit increased volatility compared to well-established, blue-chip companies. 

However, history shows that a select few of these penny stocks will grow into the mid-cap or even large-cap stocks in the future. 

Identifying them early is the challenging part. 

One small-cap stock to keep an eye on is Macmahon Holdings Limited (ASX: MAH). 

It has already risen by more than 67% in 2025, and the team at Bell Potter has just bumped up its share price target on the back of a key contract win for the company. 

Macmahon Holdings is an Australian company providing mining services across Australia and Southeast Asia. Its services cover surface and underground mining, civil construction, and resources engineering.

At the time of writing, shares are trading for approximately $0.59; however, Bell Potter has just raised its price target, indicating potential for more growth ahead. 

Here is the latest guidance from the broker. 

Key contract win

In a report released by Bell Potter on Monday, the broker stated that the company has secured an underground contract win in Indonesia. 

The contract is for a term of 34 months, with a contract value of $36m in the first year. 

This follows a contract win in Indonesia announced in August 2025, for an underground mine in North Sulawesi, with PT Tambang Tondano Nusajaya. 

This contract is valued at $33m over a 32-month period.

Bell Potter said these two contracts will partly replace the revenue lost from a previous agreement with Vault Minerals Ltd (ASX: VAU). 

However, the broker believes this will increase exposure to underground mining, in line with the company’s strategy, which is expected to be less capital-intensive. 

The company has delivered strong growth, and the shares have performed well in 2025, but continue to trade on just 10.5x prospective earnings.

The company is guiding to EBIT(A) of $180m-$195m in FY26, which at the mid-point would be 9% ahead of FY25.

Buy recommendation for this small-cap stock

Based on this guidance, Bell Potter has increased its target price on this ASX small-cap stock to $0.65 (previously $0.50). 

Based on yesterday’s closing price of $0.59, this indicates an upside of 10.17%. 

This optimism is based on a combination of factors, including: 

• Strong revenue base: FY25 secured revenue of $2.1bn, and an order book of $5.4bn provides visibility and stability.
• Underground mining growth: Expected 50% growth over the next 2–3 years.
• International expansion: Targeting 15% of group turnover from international work, supported by new contracts in Indonesia.
• Competitive advantage in Indonesia: Strong existing relationships and expertise in hard-rock underground mining.

The post Already up 67% YTD Bell Potter thinks this small cap stock can keep soaring appeared first on The Motley Fool Australia.

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

Are you looking for some new ASX dividend stocks to buy?

If you are, then it could be worth considering the two listed below.

They have been named as buys and are tipped to offer good dividend yields in the near term. Here’s what you need to know about them:

Rural Funds Group (ASX: RFF)

Bell Potter thinks that Rural Funds could be an ASX dividend stocks to buy.

It owns a diversified portfolio of Australian agricultural assets. From these 63 properties across five states, its strategy is to generate capital growth and income from developing and leasing agricultural assets.

The broker thinks its shares are significantly undervalued at current levels. It said:

Our Buy rating is unchanged. The -~35% discount to market NAV remain higher than average (~6% premium since listing) and likely reflects the proportion of assets that are underearning as operating farms. With a continued improvement in most counterparty profitability indicators in recent months (i.e. cattle, almond and macadamia nut prices), resilience in farming asset values and the progress made in creating headroom in funding lines to complete the macadamia development we see this as excessive.

As for income, Bell Potter expects dividends per share of 11.7 cents in both FY 2026 and FY 2027. Based on its current share price of $1.95, this would mean dividend yields of 6% for both years.

The broker currently has a buy rating and $2.45 price target on its shares, which implies potential upside of 25% for investors.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend stock that Bell Potter is positive on is Universal Store.

It is a youth fashion focused retailer behind the Universal Store, Thrills, and Perfect Stranger brands.

The broker also thinks that its shares are being undervalued at present. Especially given how well it is executing on its rollout strategy. It said:

Universal Store Holdings is a leading youth focused apparel, footwear and accessories retailer in Australia. UNI will continue to increase store numbers over the next few years, supporting earnings growth of 10% p.a.. Valuation looks attractive, trading on a forward P/E of ~16x. UNI is a quality small cap (ROE ~26%) that is executing on its rollout strategy.

Bell Potter expects this to underpin fully franked dividends of 37.3 cents in FY 2026 and then 41.4 cents in FY 2027. Based on its current share price of $8.65, this represents dividend yields of 4.3% and 4.8%, respectively.

The broker has a buy rating and $10.50 price target on its shares. This suggests that upside of 20%+ is possible from current levels.

The post Buy these dirt cheap ASX dividend stocks before it’s too late appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Rural Funds Group. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you’re looking for a high-quality Australian tech stock trading well below what analysts believe it is worth, Xero Ltd (ASX: XRO) may be the opportunity hiding in plain sight.

After a bruising year for ASX technology names and widespread concern about an AI-driven selloff, Xero’s share price has cratered.

This is a level that implies a dramatically weaker future than analysts actually expect.

And according to a note out of Macquarie, the current price simply doesn’t reflect Xero’s long-term earnings power. In fact, the broker argues that the market is mispricing the company’s US opportunity entirely.

Macquarie currently has an outperform rating and a $230.30 price target on Xero. Based on its current share price, this implies potential upside of 92% for investors over the next 12 months.

Why Xero looks undervalued today

Macquarie’s highlights that today’s share price suggests that from FY 2028 Xero will miss the Rule of 40, which is a benchmark for high-performing software stocks, until FY 2033.

That means the market is pricing in a dramatic slowdown in growth after FY 2-28, despite evidence to the contrary.

The broker believes that its current valuation assumes Xero’s core business slows to 12% annualised revenue growth beyond FY 2028 and never reaches the free-cash-flow margins achieved by its key competitor, Intuit (NASDAQ: INTU). Macquarie stresses that these assumptions are far too conservative.

The US could be the game-changer

One of the most important points that Macquarie makes is that the US market is finally showing the same conditions that historically drove Xero’s strongest growth in other regions.

It notes that payment digitisation and cloud-accounting adoption are accelerating across the US, which has been a missing ingredient in past years. Xero’s recent Melio acquisition gives the company a powerful distribution network and access to ~18 million small businesses via syndication partners. It said:

Management are moving quickly, with deal close 2 months earlier than expected. This coincides with Trump’s digitisation of payments gaining momentum. The IRS is phasing out paper refund checks from Sep 30 2025 and pushing customers to digital rails. Moreover, the GENIUS Act and the updating/adoption of FedNOW & FedRamp are pushing more customers to digital rails and digital tax. Historically, these are the two necessary preconditions for XRO to grow strongly in a market, and they are manifesting in the US now.

Macquarie describes this as a “perfect storm” in Xero’s favour and highlights that there is no clear number-two competitor in the US, and Intuit’s growing focus on the mid-market leaves Xero’s core small-business segment under-served.

Should you buy this Australian stock?

With the stock down sharply and Macquarie forecasting significant upside as its US strategy unfolds, Xero looks like one of the most attractive opportunities on the ASX right now.

As a result, this is one Australian stock that I would happily buy more of at the current price.

The post It’s time to buy: 1 Australian stock that hasn’t been this cheap in years appeared first on The Motley Fool Australia.

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• Bear market alert: ASX 200 tech shares down 24% since September peak

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

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

It’s been a week now since Netflix (NASDAQ: NFLX) stock split its stock 10-for-1, transforming a $1,125-per-share stock into a $112.50-per-share stock in the blink of an eye — but doing absolutely nothing to change the business. And do you know what? During that week, Netflix stock haas gotten even cheaper, falling from $112.50 to close at $110 on Monday, and continuing to fall to just $104 and change today. 

And there’s still no substantive reason for this.

Netflix stock just got cheaper.

What does this mean for you, the investor? Well, let’s review. In 2016, Netflix shares cost even more than they do today — about $115 pre-split. But Netflix was earning a lot less than it is today. Full-year profit was about $187 million in 2016, or about $0.04 per share.

Nine years later, Netflix stock once again costs just a little over $100 per share (post-split, though, so it’s really up about tenfold in price). Yet Netflix earned $39 billion last year, or $1.98 per share. That’s 50 times more profit today, on a stock that costs only 10 times more.

So effectively, for every $1 you invest in Netflix today instead of nine years ago, you’re earning five times more profit. That sounds like a pretty good deal to me. What’s more, with the stock falling 7% in price over the past week, this deal is getting even better!

Long story short, if you didn’t take advantage of Netflix’s bargain price after its stock split, last week, there’s still time to do so. Granted, you still need to decide for yourself whether Netflix stock is worth its valuation, currently 42.5 times trailing earnings, with a long-term expected growth rate of 25%. But if you do think Netflix stock is a “buy,” then no, it’s not “too late” to buy at all.

Indeed, you just got rewarded for waiting… with an even better stock price.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Netflix’s 10-for-1 stock split: Time to buy before it’s too late? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Should you buy Netflix before 2026?
• Netflix just announced a 10-for-1 stock split — Here’s why the stock looks like a no-brainer buy right now
• 3 US stocks that could make you rich
• $10,000 invested in the NDQ ETF 5 years ago is now worth…
• Netflix pops on long-anticipated 10-for-1 stock split. Here’s why the “Ten Titans” growth stock is a great buy in November.

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