Author: openjargon

The energy sector has been performing strongly this year as oil prices surge.

But if you thought it was too late to invest in this side of the market, think again.

That’s because Bell Potter believes one ASX energy stock could rise 50%.

Which ASX energy stock?

The stock that Bell Potter is recommending to clients with a high tolerance for risk is Strike Energy Ltd (ASX: STX).

It is an onshore Perth Basin gas exploration and development company with material discoveries across three advanced projects. These are the 100% owned Walyering and South Erregulla projects and the West Erregulla project, which is co-owned with Hancock Prospecting.

Bell Potter notes that the company has made an increase to its reserves and contingent resources. It said:

STX has announced updated Reserves, Contingent Resources and Prospective Resources across its West Erregulla and Erregulla Deep projects. At West Erregulla, 2P Reserves have increased 20% to 251PJ (net to STX). At Erregulla Deep, an initial 2C Contingent Resource of 38PJ and 2U Prospective Resource of 117PJ has been booked.

The estimates are independently certified by Houston-based Miller & Lents, Global Oil and Gas Consultants. The update incorporates results from the Erregulla Deep-1 well (September 2024) and a Natta 3D seismic survey acquired in May 2025. This announcement was a potential value catalyst; the modest upgrade is a positive.

Big potential returns

According to the note, the broker has retained its speculative buy rating and 15 cents price target on the ASX energy stock.

Based on its current share price of 9.9 cents, this implies potential upside of just over 50% for investors over the next 12 months.

To put that into context, a $2,000 investment would turn into approximately $3,000 by this time next year if Bell Potter is on the money with its recommendation.

Commenting on its positive view of the stock, the broker said:

STX is leveraged to the Western Australia energy market where electricity and gas prices are expected to remain supportive. Walyering provides supplementary cash flow while the South Erregulla Peaking Gas Power Project is being developed (online 4Q 2026). Potential exploration success (Walyering West, Ocean Hill) remains a value catalyst. While the West Erregulla timing and development scenario remain uncertain, this asset will potentially be a large source of energy supply.

The post This ASX energy stock could rise 50%, says Bell Potter appeared first on The Motley Fool Australia.

More reading

• Why Regis Resources, Strike Energy, Telix, and Virgin Australia shares are falling today

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

Genesis Energy Ltd (ASX: GNE) was placed in a trading halt today, as the company moves ahead with a major capital raising program, including a NZ$400 million entitlement offer and placement.

What did Genesis Energy report?

• Announced a NZ$400 million capital raising via a placement and pro rata rights offer
• The placement aims to raise approximately NZ$100 million
• Pro rata, renounceable rights offer to raise around NZ$300 million
• New Zealand government to maintain a 51% stake post-raising
• Placement and rights offer (excluding the Crown) fully underwritten by Jarden Partners and Jarden Securities

What else do investors need to know?

Genesis Energy requested the trading halt to allow for the completion of the shortfall bookbuild process, where eligible shareholders and institutional investors can apply for additional shares not taken up in the rights offer. This aims to ensure a fair and transparent market for all participants, as some information may otherwise reach select investors ahead of the market.

The halt is expected to remain in place until the results of the shortfall bookbuild are announced, or normal trading resumes on 24 March 2026. Genesis plans to inform the market of the outcome as soon as it is finalised, highlighting the company’s focus on transparency.

What’s next for Genesis Energy?

Genesis Energy is expected to announce the final results of its entitlement offer, including details of the shortfall allocation, within the trading halt window. The capital raised will likely strengthen Genesis’s balance sheet and support future growth initiatives, while the continued Crown stake keeps a stable ownership structure.

Investors should keep an eye out for further updates regarding the allocation and any potential impact on the Genesis Energy share price as trading resumes.

Genesis Energy share price snapshot

Over the past 12 months, Genesis Energy shares have declined 9%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Genesis Energy launches $400 million equity raising, announces trading halt appeared first on The Motley Fool Australia.

More reading

• Atlas Arteria announces 20 cent unfranked dividend for H2 FY25
• Retirees, check out this new $330m listed investment company which aims to pay monthly fully franked dividends
• Premier Investments posts $101.7m half-year profit and lifts dividend
• Here are the top 10 ASX 200 shares today
• ASX 200 down as fresh missile strikes on energy assets send oil prices higher

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

Solaris Investment Management is launching a new listed investment company (LIC) worth up to $330 million, with a view of delivering investors a strong flow of fully franked dividends, paid out monthly.

The new vehicle will be known as Solaris Australian Equity Income Plus Ltd (ASX: SET) and will raise a minimum of $175 million and up to a maximum of $330 million in new shares priced at $2 each.

Strong income stream targeted

Chair Neil Cochrane said in the prospectus for the offer that the company aimed to, “generate income, inclusive of franking credits, that exceeds the income of the S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index annually”.

The company also aimed to generate total returns that were broadly in line with or exceeded the benchmark over the medium to long term, and to pay regular monthly fully franked dividends.

Mr Cochrane went on to say:

The portfolio will be managed by Solaris Investment Management Limited, utilising the same investment philosophy and income-focused approach that underpins the Solaris Australian Equity Income Fund, an unlisted fund that is in its tenth year of operation. The strategy is founded on proprietary fundamental research, disciplined and responsible portfolio construction and an emphasis on identifying sustainable income opportunities within the Australian equity market. The fundamental research includes a rigorous assessment of management; business model, balance sheet, environmental, social and governance, cash flow profile and trend in return on equity.

Mr Cochrane said that while past performance was no guarantee of future performance, “the unlisted Solaris Australian Equity Income Fund has delivered consistent returns ahead of the benchmark including +8.36% per annum income (+2.81% per annum ahead of benchmark) and, +10.89% per annum net total return (+0.10% ahead of benchmark) since inception”.

The aim is to pay regular dividends, however this would be reliant on the availability of profits, franking credits, and would depend on market conditions, he said.

Mr Cochrane said all of the company’s directors and members of the investment team would take part in the offer.

Suited to income investors

The offer document says the investment strategy, “prioritises income generation, including franked dividends, which for investors on a marginal tax rate of 0-15% (and are entitled to tax refunds for excess franking credits) delivers a higher after-tax return per dollar compared to capital appreciation”.

This would put the investment squarely in the sights of retirees or those investing via their superannuation funds.

The broker firm offer of shares is expected to close on 1 April, with the shares to begin trading on 17 April.

The post Retirees, check out this new $330m listed investment company which aims to pay monthly fully franked dividends appeared first on The Motley Fool Australia.

More reading

• Atlas Arteria announces 20 cent unfranked dividend for H2 FY25
• Genesis Energy launches $400 million equity raising, announces trading halt
• Premier Investments posts $101.7m half-year profit and lifts dividend
• Here are the top 10 ASX 200 shares today
• ASX 200 down as fresh missile strikes on energy assets send oil prices higher

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.

Large-cap oil and gas stocks, Woodside Energy Group Ltd (ASX:WDS) and Santos Ltd (ASX:STO) are often spoken about in the same conversation. Both have a reasonably solid dividend track record, and are more heavily exposed to global energy prices rather than the local economy.

But there are differences in investor value, today and over the longer term. So, which one stacks up best for you?

Woodside Energy

A steady operator with a solid track record, but upside at current prices is in question for me.

Woodside is Australia’s largest independent energy company, and it would be the clear winner if you were deciding based on business size and asset base alone. With over 30 locations across five continents, its scale and diversification are impressive. 

It’s full year 2025 reporting showcased an uplift in production of 3% to 198.8 million barrels of oil equivalent (MMBOE) but a 24% decline in net profit after tax (NPAT) to $2.7 billion, driven by declining oil prices last year. The uplift in production should yield better results in the short term with the current inflated oil prices.

Given its wide exposure and today’s rising gas and oil prices, Woodside should deliver a strong return in the first half of 2026, and continue its track record of reliable (if cyclical), fully franked dividends.

Of course, current oil prices are being driven by conflict in Middle Eastern oil producing regions, the duration of which is highly unpredictable. And the energy sector is always open to volatility, particularly as governments push toward renewable energy alternatives. In response, Woodside has positioned itself as a long-term supplier of LPG, leaning into gas as a transition fuel.

As it stands, when oil prices stabilise, Woodside’s strong balance sheet and diversified cash flows should keep the ship steady. Amongst energy stocks, its risk profile sits at the lower end.

Where things get less exciting for me is share price growth. It’s up 24% over the last month to the $33 mark on Thursday, largely driven by investor optimism with rising commodity prices. But I’m not sure this leaves a lot of room for growth in a sector that can be volatile. 

For me, right now, it’s one for the watchlist. If prices fall back to the mid $20s, then it could become a worthwhile buy based on its robust operating model, solid dividends and relatively reliable cash flows.

Santos

A higher risk play with a more attractive share price  

Santos is a smaller, more concentrated oil and gas supplier. Its asset base is far more concentrated than Woodside’s, with producing assets in Australia, Papua New Guinea and Timor-Leste.

This gives it less diversification, but also means fewer moving parts, so it can be the more agile of the two when it comes to growth opportunities. While this comes with some additional execution risk, it can also create pathway to share price growth for investors.

It has invested heavily in some new projects of late, included its joint venture Barossa LNG project, that saw its first shipment of gas in late January. In addition, it is expecting production to begin at its first US site, the Alaska-based Pikka Project, in the coming months.

All of that said, its dividends tend to be lower and not or only partially franked, so this may be a downside for some investors.

Santos’ full year 2025 results reported production of 87.7 MMBOE (0.7% increase year-on-year) but a 25.2% year-on-year decline in underlying NPAT to $898 million due to declining commodity prices.

Its response to the push for renewables has been to invest in carbon capture and storage, a move to ensure its continued relevance in a decarbonising world. Its Moomba Carbon Capture and Storage project is Australia’s first large-scale onshore facility and one of the lowest cost projects of its type globally.

For me, Santos is the stronger buy right now. Its share price has also jumped in the last month (15%) reaching $8 on Thursday with rising commodity prices. But I think there is still upside for investors in this energy stock, particularly given the growth potential of some of its newer projects.

The bottom line

In my opinion, Woodside remains a relatively reliable dividend vehicle in the energy sector, albeit with limited potential upside right now. It may still be a buy if you want a relatively predictable income stream to add to your portfolio.

Santos, on the other hand, is an energy stock that could see significant growth in coming years. It might be a slightly higher risk play, but in my opinion, patient investors are likely to be rewarded.

The post Woodside vs Santos: Which ASX energy stock is the best fit for your portfolio? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• How many Santos shares do I need to buy for $10,000 a year in passive income?
• Here are the top 10 ASX 200 shares today
• 5 ASX 200 energy shares smash multi-year highs after oil price spike
• Why EBR, EOS, Racura, and Woodside shares are rising today

Motley Fool contributor Melissa Maddison 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.

There’s no shortage of exchange-traded funds (ETFs) on the ASX.

But if the goal is to buy and hold for the long term, I think it makes sense to keep things simple and focus on funds that offer strong diversification, clear strategies, and exposure to durable growth trends.

Here are three Betashares ETFs I’d consider holding for the next decade.

Betashares Nasdaq 100 ETF (ASX: NDQ)

If I want exposure to global growth, this is one of the first places I look.

The NDQ ETF tracks the Nasdaq 100, which is home to many of the world’s most influential technology companies. We’re talking about businesses at the centre of trends like artificial intelligence, cloud computing, and digital platforms.

What I like about this ETF is that it provides broad exposure to these themes without requiring me to pick individual winners.

It won’t always outperform. In fact, it can be volatile, especially when tech stocks fall out of favour.

But over long periods, companies driving global innovation have tended to deliver strong returns. That’s why I think NDQ can earn a place in a long-term portfolio.

Betashares Global Cybersecurity ETF (ASX: HACK)

Cybersecurity is an industry growing rapidly. As more of the world moves online, the need to protect data, systems, and infrastructure is only increasing.

The HACK ETF provides exposure to a portfolio of global companies involved in cybersecurity, spanning network protection, identity security, and threat detection.

What stands out to me is the durability of demand. Regardless of economic conditions, organisations still need to invest in security. In many cases, spending in this area is considered non-discretionary.

That gives this Betashares ETF a structural growth tailwind that I think could play out over many years.

Betashares Australian Quality ETF (ASX: AQLT)

While global exposure is important, I also like having something closer to home.

The AQLT ETF focuses on high-quality Australian shares, selecting companies based on metrics such as profitability, earnings stability, and balance sheet strength.

In other words, it tilts toward companies that have historically been more resilient and consistent. This can be useful for balancing higher-growth, higher-volatility exposures, such as the NDQ ETF.

It also means you’re not just getting broad market exposure, but a filtered version that leans toward stronger businesses.

Over time, that quality tilt has the potential to support more stable returns.

Why I like this mix

These three ETFs each play a different role.

The NDQ ETF offers exposure to global innovation and growth. The HACK ETF offers a thematic angle on a critical and expanding industry. The AQLT ETF adds a layer of quality and domestic exposure.

Together, they cover a lot of ground without becoming overly complicated.

Of course, they’re not the only ETFs worth considering. But I think they show how you can build a long-term portfolio around a few clear ideas.

Foolish Takeaway

For long-term investing, simplicity and consistency matter more than trying to be clever. These Betashares ETFs offer exposure to growth, resilience, and structural trends that could play out over the next decade.

They won’t move in a straight line, and there will be periods of volatility. But for investors willing to stay the course, I think they’re the kind of ETFs that can be bought, held, and largely left alone to do their job over time.

The post 3 Betashares ETFs I’d buy and hold for 10 years appeared first on The Motley Fool Australia.

More reading

• The compelling case for this cybersecurity ASX ETF
• 3 ASX ETFs for beginners starting with $5,000
• 3 ASX ETFs that could be strong picks for investors in their 30s
• 3 ASX ETFs for new investors to consider in 2026
• 5 fantastic ASX ETFs to buy and hold for five years

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 BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF and is short shares of BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been a brutal month for shareholders of this $27 billion ASX gold stock.

Northern Star Resources Ltd (ASX: NST) has tumbled 32% over the past month to $18.96 at the time of writing, including a sharp 9.5% drop on Thursday alone.

That’s a dramatic reversal from 2025, when the stock surged an impressive 73%.

So, what’s going on?

Gold falls, oil rises

A big part of the answer lies in the gold price itself. On 2 March, gold was trading at around US$5,322 per ounce. Today, it’s closer to US$4,674, marking a decline of more than 9% in just a few weeks.

At the same time, oil has surged. Brent crude is now up roughly 38% over the same period. That divergence matters.

When gold falls and oil rises, investors often rotate capital away from gold miners and into energy stocks. That appears to be playing out now, with money flowing out of ASX gold stocks and into the oil and gas sector.

Even so, it’s worth keeping things in perspective. Despite the recent sell-off, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) remains up more than 48% over the past 12 months. This highlights just how strong the sector’s run has been.

In that context, Northern Star’s pullback could partly reflect profit-taking after a stellar year.

So where to next?

Northern Star remains one of the ASX’s premier gold producers, with large-scale, long-life assets and a strong production profile. The operations of the ASX gold stock in Western Australia give it exposure to a stable mining jurisdiction, while its scale provides cost advantages relative to smaller peers.

That said, risks remain. Like all ASX gold stocks, Northern Star is highly sensitive to commodity prices. If gold continues to weaken, earnings could come under pressure. At the same time, rising energy costs — driven by higher oil prices — can squeeze margins, given the energy-intensive nature of mining operations.

Operational performance is another key factor. Any production disruptions or cost blowouts could further weigh on investor sentiment, particularly after such a sharp share price decline.

Despite these risks, analysts appear largely unfazed by the recent volatility.

Buy, hold or sell?

Most brokers continue to rate the leading ASX gold stock as a buy or strong buy, reflecting confidence in the company’s long-term fundamentals. The average 12-month price target currently sits at $28.96, implying potential upside of around 53% from current levels.

Some brokers have also pointed to the recent pullback as a potential opportunity. They argue that the company’s quality assets and strong track record position it well to benefit when gold prices stabilise.

The bottom line?

Northern Star’s sharp decline highlights just how quickly sentiment can shift in commodity markets.

But with a strong asset base, solid production outlook, and continued broker support, this ASX gold stock may still have plenty of shine left for patient investors.

The post Down 32% in a month: Where to from here for this ASX gold stock? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday
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• 5 things to watch on the ASX 200 on Wednesday
• Should you buy the dip on ASX mining shares?

Motley Fool contributor Marc Van Dinther 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.

The Premier Investments Ltd (ASX: PMV) share price is in focus today after the company reported a statutory net profit after tax (NPAT) of $101.7 million for the first half of FY26 and declared a fully franked interim dividend of 45 cents per share.

What did Premier Investments report?

• Statutory NPAT: $101.7 million for 1H26
• Profit before tax (PBT, excl. significant items): $141.9 million, down 4.3% vs 1H25
• Premier Retail EBIT: $119.3 million with a margin of 26.4%
• Total group sales: $452.8 million (Peter Alexander: $312.3m, up 4.9%; Smiggle: $140.5m, down 10.7%)
• Gross margin: 66.9%
• Fully franked interim dividend: 45 cents per share

What else do investors need to know?

Premier’s result was driven by steady growth from its Peter Alexander brand, while Smiggle sales declined as the company continued rationalising its store network. The board has reaffirmed a two-brand retail structure, with clear leadership now in place—Judy Coomber at Peter Alexander and newly appointed Georgia Chewing at Smiggle.

Premier has also made progress with its capital management initiatives, maintaining $360.1 million in cash and confirming a $100 million on-market share buyback announced in December 2025. The company’s strong balance sheet positions it well to pursue further growth and manage ongoing volatility in the retail environment.

What did Premier Investments management say?

Chairman Solomon Lew said:

Today, we have a leaner business. The Premier Investments Board is keen to see our brands operate with the speed and agility required to keep pace with consumer trends and spending volatility… In Judy Coomber (Managing Director – Peter Alexander), Georgia Chewing (Managing Director – Smiggle) and John Bryce (Premier Retail CFO) we have proven retailers to drive the business forward.

What’s next for Premier Investments?

Looking forward, Premier Investments expects continued strong performance from Peter Alexander, with the first seven weeks of 2H26 already tracking ahead of the previous half’s growth rate. The company will focus on expanding the Peter Alexander brand locally and internationally, including potential new store formats and wholesale partnerships.

For Smiggle, 2H26 will be a transition period focused on product innovation and repositioning the brand to its core customer group of 6-12 year olds. Management is targeting a return to growth for Smiggle in 1H27, supported by refreshed leadership and strategy.

Premier Investments share price snapshot

Over the past 12 months, Premier Investments shares have declined 40%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Premier Investments posts $101.7m half-year profit and lifts dividend appeared first on The Motley Fool Australia.

More reading

• Atlas Arteria announces 20 cent unfranked dividend for H2 FY25
• Genesis Energy launches $400 million equity raising, announces trading halt
• Retirees, check out this new $330m listed investment company which aims to pay monthly fully franked dividends
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

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

Plenty of ASX shares have taken a beating this year because of worries about various impacts like AI, energy prices, inflation, interest rates and so on. During times like this, I think we can find great opportunities.

I think one of the easiest ways to invest during difficult periods is to invest in growing businesses where the price/earnings (P/E) ratio has reduced but earnings are likely to climb in the medium-term.

So, let’s dive into two of the most attractive S&P/ASX 300 Index (ASX: XKO) shares.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne describes itself as Australia’s largest enterprise software company, with a global presence. It has more than 1,300 leading subscribers across corporations, government agencies, local councils and universities.

Since October 2025, the TechnologyOne share price has dropped around 35%, despite the company continuing to very pleasing financial growth as it expands its offering with additional modules, AI inclusions and so on.

In FY25, it reported revenue growth of 18% to $610 million and net profit after tax (NPAT) growth of 17% to $137.6 million. It also reported its research and development (R&D) investment was $153.7 million, 25% of total revenue.

The R&D spending is a key driver for the ASX share to unlock additional revenue growth from its subscribers, helping it deliver its targeted revenue growth of 15% from its existing client base each year.

It’s winning new clients, with UK growth particularly exciting because of the large market and similarities to Australia.

In FY26, it’s expecting to grow its profit before tax by between 18% to 20% in FY26. That’s a great tailwind for sending the TechnologyOne share price higher.

According to the forecast on Commsec, the TechnologyOne share price is valued at 52x FY26’s estimated earnings.

Australian Ethical Investment Ltd (ASX: AEF)

Australian Ethical describes itself as one of Australia’s leading ethical investment managers. The company said it aims to provide investors with investment management products that align with their values and provide long-term returns.

With funds under management (FUM) of $14 billion, the business is exposed to share market movements. But, the 45% decline of the Australian Ethical share price over the last six months seems harsh considering the good numbers it’s reporting and long-term growth tailwinds.

Historically, asset prices have climbed over the long-term, which is a tailwind for the company’s earnings. Plus, it offers superannuation to Australians, so the company is experiencing regular net inflows from members.

In the FY26 half-year result, the business reported underlying revenue growth of 13% to $65.8 million, while underlying profit after tax increased 25% to $14.4 million.

I’m expecting the ASX share can continue to deliver rising profit margins because of how scalable funds management businesses are. As an example, it doesn’t take 10% more staff or a 10% bigger office to manage 10% more FUM.

It’s now trading at just 24x FY25’s earnings, which looks like great value to me considering how fast its profit is rising.

The post These valuations are too good to ignore! I’d buy these ASX shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Australian Ethical Investment and Technology One. The Motley Fool Australia has recommended Australian Ethical Investment and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Now could be a good time to invest in the ASX 300 stock in this article.

That’s the view of analysts at Bell Potter, who are tipping market-beating returns over the next 12 months.

Which ASX 300 stock?

The stock that Bell Potter is recommending to clients is Propel Funeral Partners Ltd (ASX: PFP).

It is the second largest provider of funeral, cemetery, crematoria, and related services in the ANZ market.

Bell Potter notes that the company has a strong presence in regional areas and an emerging metropolitan presence.

While the ASX 300 stock underperformed expectations during the first half, the broker believes that better times are coming, especially given the weaker comparable period it is about to cycle. It explains:

PFP’s recent 1H26 result from saw revenue led misses given the weaker than expected average revenue per funeral (ARPF) vs market expectations and BPe. However good cost control saw broadly similar EBITDA margins vs pcp. While no guidance was provided for FY26, a -3% in comparable volumes in the pcp (2H25) including a material contraction in 3Q26 and upcoming favourable demographics arising from the ageing of the baby boomer population were reiterated as catalysts for 2H26 and ahead.

The M&A pipeline was noted as conducive, in addition to PFP’s ~10% collective ANZ market share, while the funding facility of $275m was refinanced ahead of expiry on more attractive terms (maturity in Oct-29).

Should you invest?

According to the note, Bell Potter sees plenty of value on offer here despite trimming its valuation.

This morning, the broker has retained its buy rating on the ASX 300 stock with a lowered price target of $5.00 (from $5.90).

Based on its current share price of $4.14, this implies potential upside of 21% for investors over the next 12 months.

In addition, Bell Potter is expecting an attractive 3.4% fully franked dividend yield over the 12 months, which boosts the total potential return to almost 25%.

Commenting on its buy recommendation, the broker said:

Our Price Target decreases ~15% to $5.00/share given our earnings changes and as we factor in a higher risk-free rate within our DCF valuation. With ~$135m debt capacity together with long maturity, we expect M&A activity to be supported by a healthy pipeline. As a less discretionary exposure within our Consumer Discretionary sector coverage, we remain optimistic on both PFP’s underlying business & acquisition opportunity and see M&A as driving overall revenue growth above midsingle digit organic revenue growth.

Within the underlying business, we see relatively less challenging comps in 2H26 as PFP cycles organic volume declines (particularly in Feb-Apr), while we expect the demographic tailwinds from an ageing baby boomer population to be a sizable catalyst from 2026 onwards. We see the trading update in May as a potential catalyst. We also view the freehold property portfolio valued at cost less depreciation of ~$246m as a strong hedge to the net gearing level of 2.3x.

The post This ASX 300 stock could deliver a 25% return appeared first on The Motley Fool Australia.

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

The team at Morgans has been busy running the rule over a number of ASX dividend stocks.

Two that have fared well and been given buy ratings are listed below. Here’s what the broker is recommending to clients:

Collins Foods Ltd (ASX: CKF)

This quick service restaurant operator could be worth considering according to Morgans.

It was pleased with the company’s recent announcement of plans to make a bolt-on acquisition for its KFC business in Germany. Morgans described it as “sensible” and highlights that it is expected to be immediately accretive to earnings.

In response, the broker has upgraded this ASX dividend stock to a buy rating with a $12.70 price target. It said:

CKF has announced what we see as a high-quality German KFC bolt-on at attractive economics. CKF is acquiring an eight-restaurant Bavarian portfolio at just under 6x restaurant-level EBITDA (pre-AASB 16) and expects the deal to be immediately EPS accretive. The Germany runway has been extended through the German Development Agreement (DA) to 45-90 new restaurants (from 40-70), materially extending the organic growth runway.

We believe this was a sensible, returns-focused deal that adds weight to the Germany growth story; execution is still key, but with a refreshed team and strong operators at the helm, success in Germany should be the catalyst for a re-rate despite lingering Netherlands noise. We upgrade to a BUY with a $12.70 target (was $12.40).

As for income, Morgans is forecasting fully franked dividends of 29 cents per share in FY 2026 and then 35 cents per share in FY 2027. Based on its current share price of $9.79, this would mean dividend yields of 3% and 3.6%, respectively.

Jumbo Interactive Ltd (ASX: JIN)

Another ASX dividend stock that Morgans is recommending is online lottery ticket seller Jumbo Interactive.

It responded positively to the company’s half-year results and put a buy rating and $14.90 price target on its shares. The broker said:

Jumbo Interactive (JIN) reported a solid 1H26 result, with most headline metrics pre-released. While Lottery Retailing was impacted by a softer jackpot cycle, offshore segments delivered encouraging growth and margin expansion. Managed Services continues to build momentum, with Canada EBITDA guidance upgraded and the UK tracking nicely. Underlying SaaS trends remain healthy ex-Lotterywest.

Following the update, we believe JIN can delever by FY27F, assuming a normalisation in Australian jackpot activity and continued offshore earnings growth. We have updated our model to reflect upgraded Managed Services and Prize Draw guidance, alongside refreshed FX assumptions. Our underlying EBITDA increases +1%/+5% across FY26-27F. We maintain our BUY recommendation with an unchanged $14.90 target price.

With respect to dividends, Morgans expects fully franked payouts of 28 cents per share in FY 2026 and then 38 cents per share in FY 2027. Based on its current share price of $7.71, this would mean dividend yields of 3.6% and 4.9%, respectively

The post 2 ASX dividend stocks Morgans rates as buys appeared first on The Motley Fool Australia.

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