Stock Pick

Author: openjargon

  • 3 fantastic ASX ETFs for buy and hold investors

    ETF written in white on a multi coloured background.

    Buying and holding investments for the long term can be a great way to build wealth.

    But choosing what to own is important. Ideally, you want exposure to businesses and industries that have plenty of room to grow over the next decade and beyond.

    With that in mind, here are three ASX exchange traded funds (ETFs) that could be worth considering.

    Betashares Global Cybersecurity ETF (ASX: HACK)

    The first ETF I would look at is the Betashares Global Cybersecurity ETF.

    I think cybersecurity is an industry with a very promising long-term outlook.

    Just consider how much businesses have come to depend on technology. From banking and healthcare to retail and manufacturing, enormous amounts of valuable information are now stored and exchanged digitally.

    And as artificial intelligence (AI) becomes more widely used, keeping systems and information secure could become even more important.

    This creates opportunities for companies developing cybersecurity software and services.

    The Betashares Global Cybersecurity ETF provides exposure to a portfolio of these businesses, including companies involved in cloud security, network protection, and threat detection.

    I believe spending on cybersecurity will continue growing over the long term, which bodes well for its holdings.

    Global X FANG+ ETF (ASX: FANG)

    Another ASX ETF that could suit buy and hold investors is the Global X FANG+ ETF.

    This fund takes a concentrated approach to investing in some of the world’s biggest technology and growth companies.

    Its portfolio contains just 10 stocks, giving investors exposure to businesses operating in areas such as AI, cloud computing, ecommerce, and digital advertising.

    What I like about this fund is that many of these companies have already established dominant positions in their respective markets.

    They also have significant financial resources to keep investing in new products and technologies, which could help them remain leaders for years to come.

    Of course, holding just 10 companies makes this a higher-risk investment than a broadly diversified ETF.

    But for investors comfortable with that concentration, the Global X FANG+ ETF could offer substantial long-term growth potential.

    Betashares Asia Technology Tigers ETF (ASX: ASIA)

    A final ASX ETF to consider is the Betashares Asia Technology Tigers ETF.

    While US technology companies tend to dominate the headlines, some of the world’s most important technology businesses are based in Asia.

    This fund provides exposure to leading companies across markets including Taiwan, South Korea, and China.

    These businesses operate in areas such as semiconductor manufacturing, memory chips, ecommerce, and digital services.

    I particularly like the region’s importance to the global technology industry. The demand for more powerful computers, smartphones, data centres, and AI systems creates significant opportunities for Asian technology leaders.

    There is also considerable potential for digital services to grow as consumer spending and technology adoption increase across the region.

    For long-term investors looking beyond Wall Street, the Betashares Asia Technology Tigers ETF could be worth a closer look.

    The post 3 fantastic ASX ETFs for buy and hold investors appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf. 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.

  • Santos share price jumps to fresh multi-year high: Here’s what brokers tip next

    Smiling oil worker in front of a pumpjack.

    The Santos Ltd (ASX: STO) share price has jumped higher in Wednesday afternoon trade.

    At the time of writing, the shares are up around 2% for the day, at a 12-year high of $9.04 a piece.

    Today’s increase follows four consecutive days of share price gains. The shares are now up around 6% over the past week alone, and have rallied 47% for the year to date.

    What has driven such strong share price gains for Santos this year?

    ASX energy shares have flown higher in 2026 as ongoing geopolitical tensions in the Middle East push oil prices close to record highs.

    Continued disruptions to the movement of oil out of the region pushed global oil prices above US$110 a barrel earlier this year, and after a brief drop around July, renewed conflict has seen oil prices surge again in October.

    Santos directly benefits from high oil prices because it lifts both its revenue and profit margin.

    The share price rally has also been supported by Santos’ strong half-year FY26 results announcement in August.

    The major ASX oil and gas giant reported a 2% year-on-year increase in sales revenue and a 1.7% increase in production volumes. The company also generated free cash flow from operations, driven by strong base business performance.

    Why is the share price spiking again this week?

    There isn’t any company specific price-sensitive news this week to explain the latest Santos share price rally.

    The latest increase is mostly likely a result of another strong rebound in oil prices this week.

    Trading Economics data shows that crude oil climbed above US$95 per barrel today, marking its fifth consecutive session of gains. Escalating conflict between Iran and Saudi Arabia this week has caused even more oil supply disruptions and tankers transiting the Strait of Hormuz are being targeted.

    Crude oil prices are now 63% higher than just 12 months ago.

    Are the shares a buy, sell, or hold?

    The data on Market Index was updated just yesterday, and it still shows that even after the latest rally, brokers are still very positive on Santos shares.

    All brokers have a strong buy rating. Although the average target price of $9.04 is exactly flat on where the shares are trading at the time of writing.

    The data on TradingView shows a little more insight. The majority (14 out of 17) of analysts have a buy/strong buy rating on the shares. But the average $9.24 target price implies around a 2% upside ahead, at the time of writing.

    But the range between the minimum and maximum is huge. Some think the shares have the potential to jump another 22% to $11 over the next 12 months. But others think the Santos share price could sink 22% to $7.07.

    My view on the Santos share price

    Oil price volatility aside, I think Santos still presents great growth potential over the next 12 months. 

    The oil and gas major is in the process of transitioning from a period of heavy capital expenditure to active production. It is heavily reliant on two massive multi-billion dollar developments, including its Barossa LNG Project in the Northern Territory and its Pikka Phase 1 Project in Alaska.

    Continuous production at Pikka commenced in June and it is fast progressing to full production. Just last month, Santos announced that it had successfully started seawater injection at its Nanushuk Drillsite-B (NDB) within the project.

    Santos expects its second-half FY26 production to be 20% to 30% higher than the first half, and the ramp-up production at Pikka could certainly help that goal be achieved (or even exceeded).

    The post Santos share price jumps to fresh multi-year high: Here's what brokers tip next appeared first on The Motley Fool Australia.

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

  • Down 44%: Will you regret not buying Pro Medicus shares?

    A female scientist in a laboratory setting using a tablet to review data, with a male scientist working in the background.

    Pro Medicus Ltd (ASX: PME) shares have had a difficult year.

    The medical imaging technology company’s shares are down another 3% to around $160.76 on Wednesday, taking their decline over the past 12 months to approximately 44%.

    That is a significant fall for a business that has spent years delivering impressive growth.

    But could this be an opportunity investors look back on with regret?

    Why I remain positive on Pro Medicus shares

    One reason I have always liked Pro Medicus is the importance of its technology to modern healthcare.

    Its Visage imaging platform helps radiologists access and analyse medical images quickly, making it easier to manage increasingly complex workloads.

    As hospitals handle more scans and medical imaging technology becomes more sophisticated, I think the need for efficient software will only increase, especially with radiologists in short supply.

    Pro Medicus has already established a strong position in the United States, where it supplies some of the country’s leading healthcare institutions.

    But there is still plenty of room to expand. Management estimates that Pro Medicus has around 11% of the US market, leaving a substantial opportunity to win customers from competing systems.

    Its existing customer relationships are another strength. Replacing medical imaging software is a major undertaking for hospitals, which need reliable systems that integrate with their clinical operations.

    Pro Medicus demonstrated the strength of those relationships in FY26, renewing all six customer contracts that came up for renewal, with higher fees per transaction.

    For me, that provides encouraging evidence of the value customers place on its technology.

    Plenty of growth still to come

    The company’s latest financial results also suggest its underlying business continues to perform well. In FY26, revenue increased 22.9% to $261.7 million, while underlying net profit rose 24.1% to $144.7 million.

    I think that is an impressive result, particularly given the company’s already substantial profit margins.

    But what interests me more is the business Pro Medicus has secured for the coming years.

    During FY26, it announced 10 new contracts worth at least $407 million, including major agreements with US healthcare providers. As these contracts are implemented, they should make a growing contribution to revenue.

    There are also opportunities to expand beyond traditional radiology imaging. Pro Medicus has been making progress in cardiology and recently launched new digital pathology and AI-related reporting products.

    I think these developments could help the company win additional work from existing customers while opening up new markets.

    And with a debt-free balance sheet, Pro Medicus has the financial flexibility to keep investing in its technology.

    Foolish takeaway

    I think Pro Medicus shares could prove to be an excellent buy at current levels.

    There is still a premium valuation attached to the business, and I would be prepared for further share price swings.

    But looking five or ten years ahead, I believe Pro Medicus has a genuine opportunity to become a much larger healthcare technology company.

    At around $161, I would be happy to buy shares and give that growth story time to unfold.

    The post Down 44%: Will you regret not buying Pro Medicus shares? appeared first on The Motley Fool Australia.

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

  • Global miner Glencore has just joined the ASX. So what’s it worth?

    Mining vehicle at a mine site.

    Global mining heavyweight Glencore Plc (ASX: GLC) has joined the ASX, with broker Canaccord Genuity weighing in on what the company’s shares are worth.

    The shares slipped shortly after beginning trade on the ASX, falling from $11.27 to $11.19, and well shy of CG’s price target for the company, which I’ll get to shortly.

    First, let’s have a look at the company itself.

    Major diversified miner with a difference

    Glencore is quite different from Australia’s two major miners, BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO), in that it still has a large exposure to coal, and also has a commodity trading arm, which, according to CG, “has no direct equivalent among the ASX mining majors”.

    It also has negligible iron ore exposure while it does have a focus on copper.

    Given the size of the company, CG said it was likely to be included in the S&P/ASX 200 Index (ASX: XJO) in March next year, and could also be included in the S&P/ASX 100 Index (ASX: XTO) at that time, although that inclusion was more likely to come later in the year.

    CG said the listing on the ASX made strategic sense for Glencore, as it would make future acquisitions easier, broaden the company’s shareholder base, and “improve investor access in a market with deeper resources-sector expertise and greater appetite for mining sector exposure than the London Stock Exchange”.

    CG added:

    Overall, Glencore’s addition to the ASX will give investors greater choice within the resources sector, adding a global top-10 miner by market capitalisation with highly sought-after copper exposure and a distinctive earnings profile. Glencore combines a diversified global mining portfolio, spanning future-facing metals such as copper and zinc, as well as metallurgical and thermal coal, with one of the world’s largest commodity marketing businesses. Its Marketing arm trades physical commodities produced by both its own mines and third-party producers. That combination sets Glencore apart from the incumbent ASX major diversified miners, which lack comparable large-scale commodity trading businesses, have largely exited coal and remain materially exposed to iron ore.

    CG said copper was “comfortably” Glencore’s largest earnings contributor, accounting for 46% of its industrial earnings, excluding the marketing segment.

    CG added:

    Healthy production growth from the company’s base portfolio is forecast to lift copper’s share of group EBITDA to 54% by FY30. By then, Glencore expects to have established itself as a top-five global producer, with a projected first-quartile total cash cost position.

    CG said if Glencore executes well on its copper expansion plans, there was scope for material broker upgrades.

    CG itself has a price target of $12.90 on Glencore shares.

    The post Global miner Glencore has just joined the ASX. So what's it worth? 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Could the Macquarie share price reach $300 in 2027?

    Work colleagues discussing finance charts and graphs on a laptop computer and tablet in their office.

    Macquarie Group Ltd (ASX: MQG) has built an impressive business, with operations spanning financial markets around the world.

    And while its earnings can fluctuate from year to year, I think the longer-term growth opportunities remain attractive.

    But could that be enough to take the Macquarie share price to $300 in 2027?

    Let’s take a closer look.

    Why I like Macquarie

    One of the things I like about Macquarie is how many ways it has to make money.

    Its Australian banking operations provide exposure to mortgages, deposits, and business lending, while its asset management division invests in infrastructure and other assets around the world.

    Macquarie also has substantial operations in commodities and global markets, alongside an investment banking business that benefits from corporate transactions and capital raising activity.

    I think that combination gives Macquarie a positive growth profile.

    When financial markets are active and companies are investing, Macquarie can benefit from increased transaction activity and demand for its services.

    Meanwhile, its banking and asset management operations provide other sources of earnings.

    There are also long-term opportunities in infrastructure investment, particularly as countries expand their energy networks, transport systems, and digital infrastructure.

    Of course, Macquarie’s exposure to financial markets means profits can be uneven. Investment realisations and transaction activity can make a meaningful difference to annual results.

    But over a longer period, I think the company’s global reach and experience put it in a strong position to continue growing.

    What would it take to reach $300?

    The Macquarie share price is currently trading around $248.79.

    Reaching $300 would require a gain of approximately 21%, which I don’t think is unreasonable over the next couple of years, particularly when you look at its earnings outlook.

    Consensus forecasts point to earnings per share (EPS) of $13.37 in FY27, increasing to $13.93 in FY2, and $15.59 in FY29.

    That suggests relatively modest growth initially, followed by a stronger improvement in FY29. For me, that is an important distinction when considering the timing of a potential move to $300.

    At the target share price, Macquarie would trade on a P/E ratio of approximately 22 times FY27 earnings and 21.5 times FY28 earnings.

    Those are fairly substantial multiples for a business whose profits can fluctuate with financial market conditions.

    But the valuation becomes more reasonable when looking towards FY29. At $300, Macquarie would trade on approximately 19 times forecast FY29 earnings.

    I think that could be justified for a high-quality global financial services business with opportunities to keep growing into the 2030s.

    Is 2027 too soon?

    I certainly wouldn’t rule out Macquarie reaching $300 next year.

    Share prices often move ahead of earnings, particularly when investors expect a stronger period of profitability.

    But I think 2028 may be a more realistic timeframe.

    By then, Macquarie should be further along its expected earnings recovery, potentially making investors more comfortable paying a higher price for the shares.

    Foolish takeaway

    I think $300 is a realistic longer-term target for the Macquarie share price, with 2028 looking more achievable than 2027.

    I particularly like that the company has several avenues for growth, and I would be comfortable owning the shares well beyond either of those dates.

    At around $249, Macquarie remains a long-term buy for me. I’d be happy to give it time to work towards $300 and potentially much further.

    The post Could the Macquarie share price reach $300 in 2027? appeared first on The Motley Fool Australia.

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

  • Up 42% in a year. How much higher can BHP shares go?

    Two young male miners wearing red hardhats stand inside a mine and shake hands.

    BHP Group Ltd (ASX: BHP) shares have fallen around 1% in Wednesday lunchtime trade.

    At the time of writing, the shares are changing hands for $60.92 a piece. They’re now up 33% for the year to date and 42% higher than 12 months ago.

    BHP earnt most of its annual gains through October 2025 to late-August this year, when it peaked at an all-time high of $67.67 a piece. But since then, the ASX mining shares have tumbled lower, down around 10% to the time of writing.

    Now many are questioning whether the mining giant’s shares can return to, or even surpass, the all-time high recorded two months ago.

    Or is the rally now over?

    Here’s what the experts think.

    Are BHP shares a buy, sell, or hold?

    Brokers and analysts are mostly neutral on the outlook for the miner’s shares over the next 12 months.

    Market Index data shows the majority have a hold rating on BHP, and the $61.50 average target price implies a 1% upside, at the time of writing.

    The data on TradingView is similar. The majority (12 out of 21) have a hold rating on the shares, although another six rate BHP as a strong buy, and three rate the shares a sell/strong sell.

    The average $62.45 target price implies a 3% upside at the time of writing.

    Fairmont Equities thinks that this mining giant could be an ASX 200 share to buy. The broker said it thinks commodities markets are still only in the early stages of a bull run, leaving BHP’s share price in a prime position to move higher. It said that the company should also benefit from constrained global supplies of copper.

    Morgan Stanley also recently renewed its buy rating on BHP shares, with a 12-month price target of $68.

    Elsewhere, Red Leaf Securities has a hold rating on the mining shares. The broker warns that a softer global growth outlook and uncertainty surrounding Chinese commodity demand limits the case for aggressively buying the stock right now.

    On the flip side, Catapult Wealth is much more bearish, with a sell rating on BHP shares. The broker said that the global miner delivered a strong FY26 result, but that it still sees an issue with its share price. After this year’s rally, there are concerns that BHP has now run too far ahead of true value.

    What could influence the miner’s share price over the next 12 months?

    I think there is still some potential ahead for BHP shares. 

    The company has recently faced headwinds from broad market weakness, higher oil prices, and ongoing disruptions to some of its operations.

    If we see a turnaround in any, or all, of these headwinds, then we could see BHP shares run higher.

    Last month, BHP was forced to suspend mining activities at its Escondida copper mine in Chile after a fatal accident. Under Chilean mining regulations, operations cannot restart following a fatal accident until safety inspectors have confirmed that conditions are safe. There is no indication when production might resume, but when it does, I expect a jump in investor interest.

    Meanwhile, higher oil prices and inflation concerns are creating broad market weakness. If conflict in the Middle East reaches some sort of resolution, and oil supply flows well through the region, it’ll certainly have a positive impact on BHP shares. 

    The post Up 42% in a year. How much higher can BHP shares go? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Samantha Menzies 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.

  • WAM Leaders vs Growthpoint Properties: Which 7%+ yield stock looks better for passive income?

    Man reading his emails on a laptop while relaxing on a beach.

    WAM Leaders vs Growthpoint Properties Australia shares: Which high-yield stock looks better for passive income?

    Everyday Aussie investors love the idea of building passive income from high-yield shares. Right now, WAM Leaders (ASX: WLE) and Growthpoint Properties Australia (ASX: GOZ) both offer eye-catching yields, but they go about it in different ways. Whether you’re chasing franking credits, steady long-term income, or resilience against market wobbles, these two income stocks deserve a closer head-to-head. Here’s what I see as the key differences between WAM Leaders vs Growthpoint Properties Australia shares, and which one looks most compelling for passive income right now.

    The case for WAM Leaders

    WAM Leaders is a listed investment company (LIC) focused on delivering both regular dividends and capital growth by investing in undervalued large-cap Australian companies. Since starting in 2016, it’s made a name for paying reliable, fully franked dividends—a big plus for Aussie investors who value franking credits to boost after-tax returns. The company’s stated goals are to preserve capital and generate income streams for shareholders.

    Looking at the most eye-catching fundamentals:

    • The current trailing dividend yield sits at 7.3%, fully franked—a major attraction for income seekers, as it means more in your pocket after tax.
    • Market cap comes in at about $2.05 billion, so it’s solidly mid-sized but not a giant.
    • Importantly for some, every dividend in recent years has been 100% franked, a consistency I really appreciate.

    Dividends have been on a rising trend, growing steadily from $0.01 per share in 2017 to $0.048 most recently (as of April 2026). This LIC has kept its focus squarely on delivering shareholder income, with interim and final dividends twice a year.

    The case for Growthpoint Properties

    Growthpoint is a property trust (REIT) with a big portfolio of office and industrial properties across Australia, plus a growing funds management side. Its model is about generating steady rental income and passing a generous slice of that on to investors via distributions. The headline is its very high dividend yield—an outcome of both a juicy payout ratio and the recent softness in property share prices.

    Here are the standout fundamentals:

    • Growthpoint’s trailing dividend yield is currently an impressive 9.53% (as per the latest supplied figures).
    • The company’s market cap is roughly $1.46 billion, a touch smaller than Wam Leaders.
    • However, unlike WAM Leaders, Growthpoint pays unfranked distributions—so income isn’t boosted by franking credits.

    The dividend track record is strong in absolute dollar terms, with distributions consistently paid twice a year. Over the last decade, annual dividends per share have ranged from $0.06 to around $0.18 per share. The most recent payment (June 2026) was $0.092 per share, unfranked.

    Valuation comparison

    There are some sharp differences in value and yield when you put the two side by side:

    Metric WAM Leaders Growthpoint Properties
    P/E Ratio N/A 16.22
    Dividend Yield 7.3% (fully franked) 9.53% (unfranked)
    Market Cap $2.05 billion $1.46 billion
    Franking 100% 0%
    EPS N/A 0.119
    Dividend per Share N/A 0.18

    It’s worth noting that WAM Leaders doesn’t report a conventional P/E or EPS in the data supplied, likely because LICs typically report net tangible assets (NTA) and realised gains instead. Growthpoint’s reported P/E of 16.22 appears reasonable for a property trust, but since REIT earnings can fluctuate with asset revaluations, that ratio may not tell the complete story.

    Recent share price momentum

    Comparing recent share price performance up to 9 October 2026:

    • WAM Leaders closed at $1.27 on 9 October 2026, down from $1.29 two weeks prior, with only a modest -0.78% change on the day. Year to date, it’s eked out a positive 1.5% return.
    • Growthpoint Properties Australia closed at $1.93 on 9 October 2026, up slightly (0.52%) on the day, but year to date the shares have dropped sharply, down -17.1%.

    So while both can be a bumpy ride in the short term, WAM Leaders has actually delivered a small positive return this year, whereas Growthpoint has taken a significant hit.

    Which is the better buy?

    For someone purely chasing the highest upfront income, Growthpoint Properties Australia’s 9.53% dividend yield looks too good to ignore—at least on paper. But that yield comes unfranked, making it less attractive after tax for most Aussies, especially compared to WAM Leaders’ 7.3% fully franked payout. Once you factor in franking credits, WAM Leaders’ “grossed up” income stream looks just as attractive if not better for many investors.

    What could tip the scales for me is the combination of dividend quality and share price resilience. Growthpoint looks cheap with a high yield right now, but its share price has slumped over 17% this year—a signal the market is nervous about its property values or earnings outlook.

    Meanwhile, WAM Leaders has kept delivering growing, fully franked payouts, with much less recent share price pain. That consistency means a lot for peace of mind. So, for reliable, tax-friendly income that seems less at the mercy of listed property market swings, my pick would be WAM Leaders right now. It’s not the absolute highest dollar yield, but I like the balance of yield, franking and stability for a hands-off, passive income portfolio.

    The post WAM Leaders vs Growthpoint Properties: Which 7%+ yield stock looks better for passive income? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Laura Stewart has positions in Wam Leaders. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

  • Are Rio Tinto shares a buy following its Q3 update?

    Two people wearing hard hats talking with each other at a mine site, with two workers in the background.

    Rio Tinto Ltd (ASX: RIO) shares are in spotlight today after the mining giant released its third-quarter production update.

    There was plenty to like in the announcement, particularly the progress being made across its iron ore and copper operations.

    But does the update strengthen the case for buying Rio Tinto shares? Here’s what I think.

    A solid quarter for Rio Tinto

    One of the highlights was the continued strength of Rio Tinto’s iron ore business.

    The company reported global iron ore sales of 90.8 million tonnes during the quarter, an increase of 3% on the prior corresponding period. Its Pilbara operations also performed well, with sales increasing 2% to 85.7 million tonnes.

    I think that is encouraging because iron ore remains an important source of earnings and cash flow for the company.

    Strong operational performance here can help Rio Tinto fund its investments in other commodities, particularly copper and lithium.

    There was also positive progress at Simandou, the enormous iron ore development in Guinea.

    The project reached an annualised production rate of approximately 10 million tonnes during the quarter and remains on track to reach a 60 million tonne annualised rate in the second half of 2028.

    That gives Rio Tinto another avenue for production growth over the next few years.

    Copper is becoming increasingly important

    The other part of the update that caught my attention was the performance of Oyu Tolgoi in Mongolia.

    Copper production at the operation increased 27% compared with the same quarter last year, reflecting the ongoing ramp-up of its underground mine.

    This helped offset weaker production elsewhere in Rio Tinto’s copper portfolio, leaving total copper output broadly unchanged for the quarter.

    I think Oyu Tolgoi could become an increasingly valuable part of the business. Copper demand is expected to benefit from investments in electricity networks, renewable energy, electric vehicles, and data centres. And Rio Tinto is positioning itself to meet some of that demand.

    The company expects Oyu Tolgoi to produce around 500,000 tonnes of copper annually between 2028 and 2036, giving it a substantial production base for the coming decade.

    For me, that is one of the strongest reasons to consider owning Rio Tinto shares for the long term.

    What else stood out?

    I was also encouraged by management’s continued focus on improving productivity.

    Rio Tinto remains on track to achieve an annualised productivity benefit of $1.8 billion by the end of 2026.

    It has also announced more than $2 billion of capital release initiatives this year as part of a broader programme to free up funds from its portfolio.

    I think improving efficiency and making better use of capital could be valuable as Rio Tinto continues investing in growth.

    Foolish takeaway

    I think Rio Tinto’s latest update gives investors more reasons to be positive about its future.

    The company is delivering solid operational performance while making progress on projects that could support earnings growth well beyond 2026.

    I would be happy buying Rio Tinto shares for the long term, particularly with its copper business set to become increasingly important over the coming years.

    The post Are Rio Tinto shares a buy following its Q3 update? appeared first on The Motley Fool Australia.

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

  • 3 reasons I would invest $10,000 in Coles shares

    A happy young couple lie on a wooden deck using a skateboard for a pillow.

    Coles Group Ltd (ASX: COL) is one of Australia’s best-known shares, and I think there is plenty to like about its long-term prospects.

    But would I put $10,000 into Coles shares today?

    There are three reasons I would consider it.

    Defensive demand

    The first is the nature of Coles’ business. Groceries are an essential part of household spending, and that gives Coles a level of resilience that many other retailers simply do not have.

    Even when consumers are struggling financially, they still need to buy food and everyday essentials.

    They might switch to cheaper products, look for more specials, or reduce discretionary purchases, but supermarkets should continue seeing relatively consistent demand.

    I think that makes Coles a good business to own through different economic conditions.

    Its national store network, established supply chains, and growing online business also give it considerable scale.

    Of course, competition remains intense, particularly from Woolworths Group Ltd (ASX: WOW) and Aldi. But Coles has continued investing in its customer offering, and I think it is well positioned to defend its place in the market.

    Some protection against inflation

    My second reason is Coles’ ability to manage inflation.

    Coles has the ability to adjust its prices when the costs of purchasing and distributing groceries increase, giving it a degree of protection against inflation.

    In addition, Coles’ investment in automation could become increasingly important.

    Its automated distribution centres and improved fulfilment capabilities should help make operations more efficient, reducing some of the cost pressures associated with running a large supermarket network.

    If Coles can keep improving productivity while remaining competitive on price, I think that will put it in a stronger position to protect its profit margins.

    A positive earnings outlook

    The third reason I would consider investing $10,000 in Coles shares is the growth expected over the next few years.

    Coles generated earnings per share (EPS) of 81.5 cents in FY26.

    Consensus forecasts point to EPS increasing to 98.2 cents in FY27, $1.05 in FY28, and $1.15 in FY29. That would represent earnings growth of approximately 41% over three years.

    I think that is a strong outlook for a business operating in such a mature industry.

    The dividend is also expected to benefit. After paying a fully-franked 78 cents per share in FY26, analysts expect Coles to increase its annual payout to 83.5 cents in FY27, 88.8 cents in FY28, and 97.4 cents in FY29.

    With Coles shares trading around $23.70 on Wednesday, the FY27 forecast represents a dividend yield of approximately 3.5%, before franking credits.

    I think that provides a good income component alongside the prospect of further capital gains.

    Foolish takeaway

    I would be happy to invest $10,000 in Coles shares at current levels.

    I like the resilience of its supermarket operations, the opportunity to improve efficiency, and the earnings growth analysts are expecting.

    For me, Coles looks like a business that could deliver solid returns over the coming years while remaining a dependable long-term holding.

    The post 3 reasons I would invest $10,000 in Coles shares appeared first on The Motley Fool Australia.

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

  • Woodside, New Hope, Flight Centre shares: Buy, hold, or sell?

    A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares

    The S&P/ASX 200 Index (ASX: XJO) has sunk lower again in early morning trade on Wednesday. Here’s how three major ASX shares, Woodside Energy Group Ltd (ASX: WDS), New Hope Corporation Ltd (ASX: NHC), and Flight Centre Travel Group Ltd (ASX: FLT) are tracking today, and what brokers expect next.

    Brokers rate Flight Centre shares as a BUY

    Flight Centre shares have fallen around 1% to $10.16 in Wednesday morning trade. The ASX travel shares have now fallen around 26% since the company posted a weaker FY26 result in late-August. They’re also down 32% for the year-to-date. Flight Centre hasn’t posted any price-sensitive news since its results announcement.

    The company faced several headwinds through its fourth quarter after conflict in the Middle East disrupted global travel plans. Its FY26 underlying profit before tax came in around 2% below market expectations and its leisure division missed consensus by about 8%.

    The company also expects travel to be subdued through the first half of FY27 while the conflict still goes unresolved. Flight Centre expects corporate earnings to be more heavily weighted toward the second half, with first-half profit likely to come in below last year.

    Investors aren’t impressed, and Flight Centre’s share price continues to be depressed.

    But the experts are much more bullish. Market Index shows that the majority of brokers still have a strong buy rating. The $13.75 average target price implies an upside of around 35%, at the time of writing.

    Brokers rate Woodside shares as a HOLD

    Woodside shares are climbing higher on Wednesday, up around 0.5% to $32.92 at the time of writing. The ASX energy shares have now climbed nearly 7% higher in October so far, and they’re up around 39% for the year-to-date.

    There isn’t any recent price-sentivie news out of the oil and gas major to explain this month’s rebound. The increase in investor interest is mostly likely the result of a climbing oil price.

    Trading Economics data shows that crude oil is close to US$95 per barrel, marking its fifth consecutive session of gains as conflict between ITan and Saudi Arabia intensifies further, renewing concerns about global oil supply out of the region.

    Woodside shares are also gathering investor attention following the company’s first-half FY26 update in August. The company reported a 13% increase in operating revenue, a 27% increase in NPAT, a 7% increase in underlying NPAT, and a huge increase in free cash flow to US$352 million.

    This past year has been a great success story for Woodside shares, but it looks like the shares could now be at, or past, fair value.

    Market Index data shows that all brokers have a hold rating on the shares. And thanks to the latest rally, the $28.51 average target price implies a downside of around 13%, at the time of writing.

    Brokers rate New Hope shares as a SELL

    New Hope shares are roughly flat, at $6 each, at the time of writing on Wednesday morning. The thermal coal miner’s shares have had a rocky ride over the past 12 months, fluctuating between $3.77 and $6.61. But they’re now up around 48% for the year-to-date.

    The miner lost some investor confidence last month after it posted its latest coal production update. But it flagged that weaker coal prices hit earnings hard, with its underlying EBITDA falling 32.8% to $514.3 million. Net profit after tax (NPAT) also came in at $161 million, down 63.4% from the previous year.

    The experts were also unimpressed, saying that the results came in below expectations.

    Market Index shows that the majority of brokers now have a sell rating on New Hope shares. The $5.68 average target price now implies a downside of around 5%, at the time of writing.

    The post Woodside, New Hope, Flight Centre shares: Buy, hold, or sell? appeared first on The Motley Fool Australia.

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