Author: openjargon

When it comes to stock picking it can pay to listen to the experts.

I’ve had a look through the research reports issued by Macquarie over the past week and filtered out a handful which the analyst team thinks will outperform over the next year.

Let’s see who they like.

Megaport Ltd (ASX: MP1)

This company is in the midst of a major capital raise under which it is looking to raise $827 million, including $309 million from existing shareholders.

Despite the raise being conducted at $14.30 per share, Megaport shares have held up well and are currently changing hands for $18.88.

This can be explained by the fact that the company also announced some major contract wins at the same time as it announced the capital raise.

The new contracts were worth about $458.9 million and would require $369.5 million in infrastructure spending, “primarily for high-performance NVIDIA GPUs, network, and storage infrastructure”.

Macquarie said Megaport provides AI exposure for investors with shorter lead times and less capital expenditure than data centre operators.

Macquarie has a price target of $27.80 on Megaport shares.

Viva Energy Ltd (ASX: VEA)

This company had a setback with a fire at its Geelong refinery in April, but Macquarie expects that repairs should be nearing completion.

Macquarie says Viva could deliver its best refining half in four years, even taking into account the fire impact.

A new head of the convenience division is also set to start soon, to help drive growth in what has been a “troubled” part of the business.

Macquarie has a $3.40 price target on Viva shares compared to $2.24 currently.

Fineos Corporation Ltd (ASX: FCL)

This company develops software for use by the global health insurance sector and has had recent contract wins in Australia and overseas.

The company recently reaffirmed revenue guidance in the range of €147m to €152m, and its closing cash balance at the end of March was €47.1m, up by €11.7m over the quarter.

Macquarie said the company was trading at a discount to one of its peers, GWRE, and its “medium-term revenue mix targets imply an acceleration in revenue vs Macquarie forecasts”.

Macquarie has a price target of $3.50 on Fineos shares compared to $2.15 currently.

 Ebos Group Ltd (ASX: EBO)

Ebos Group shares are down almost 50% over the past 12 months; however, the Macquarie team believes the company is well-placed for share price gains.

The company is also paying a dividend yield of 5.9% this year, with that figure expected to increase to 6.9% in 2028.

EBOS in April downgraded its FY26 underlying EBITDA guidance to $610 to $620 million, down from a previous range of $615 to $635 million, due to higher fuel and energy costs.

Macquarie said on the positive side of the ledger, a new First Pharmaceutical Wholesaler Agreement has been struck with the Federal Government, which will benefit EBOS’ Symbion division.

Macquarie has a price target of NZ$36.44 on the stock compared with NZ$20.66 at the time of writing.

The post 4 ASX shares Macquarie says could return more than 40% appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 5 ASX 200 shares downgraded by the experts this week
• 2 ASX tech shares I’d buy that aren’t Xero or WiseTech
• If you invested $10,000 in Megaport shares in April, here’s how much you’d have now
• Megaport launches retail entitlement offer after $827 million capital raise

Motley Fool contributor Cameron England has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended FINEOS Corporation, Macquarie Group, and Megaport. The Motley Fool Australia has positions in and has recommended FINEOS Corporation. 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.

The S&P/ASX 200 Index (ASX: XJO) is charging higher on Friday as investors look ahead to next week’s Reserve Bank of Australia (RBA) interest rate decision.

At the time of writing, the benchmark index is up 1.93% to 8,800 points.

The market appears confident that the RBA will leave the cash rate unchanged at 4.35% on Tuesday after three increases since February.

But what happens after next week is less clear.

Some economists now believe the rate-hiking cycle is finished and the next move will be a cut. Westpac Banking Corp (ASX: WBC), however, is sticking with its forecast for another two increases.

So, could Australian borrowers really be heading towards lower interest rates?

Westpac still expects more rate hikes

Westpac Chief Economist Luci Ellis expects the RBA to keep rates unchanged next week before raising the cash rate again at its August and September meetings.

Ellis said inflation and labour market data had been mixed enough to support a pause. However, she believes higher fuel costs, stronger wages, and continued spending on data centres could keep inflation elevated.

Australia’s annual inflation rate eased from 4.6% in March to 4.2% in April. However, trimmed mean inflation edged higher from 3.3% to 3.4%, keeping it above the RBA’s target range.

Westpac still expects two more rate rises as the RBA tries to bring inflation back under control, despite signs that the economy is slowing.

Other economists see a rate cut coming

National Australia Bank Ltd (ASX: NAB) Chief Economist Sally Auld has dropped her previous forecast for another rate rise in August.

She now believes the next move will be a cut, although she is less certain about when it will happen.

NAB expects the cash rate to fall to 3.6% by the end of 2027 as slower economic growth and tighter financial conditions weigh on housing and credit demand.

HSBC Chief Economist Paul Bloxham has gone further, arguing that the hiking cycle is already over. He expects interest rate cuts to begin during the second half of next year.

The latest employment figures have added some weight to that view. Australia’s unemployment rate rose from 4.3% to 4.5% in April, while employment fell by 18,600.

What should investors expect next?

A rate cut still looks unlikely in the near-term while inflation remains above the RBA’s target range.

The central bank is expected to leave rates unchanged next week as it waits for more inflation, employment, and wage data.

But the big question is what happens after that, especially if inflation stays high while the economy continues to slow.

The post Could the RBA really cut interest rates next? appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 stocks leaping higher this week on big announcements
• 5 ASX ETFs for beginners with $500
• Oil prices are falling again. Here’s what is driving the drop
• Why Brazilian Rare Earths, Evolution Mining, Magellan, and Qantas shares are racing higher today
• SpaceX IPO: Should you buy an ASX space ETF to cash in?

HSBC Holdings is an advertising partner of Motley Fool Money. Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended HSBC Holdings. 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.

With just a few hours of trade left in this King’s Birthday shortened trading week, the S&P/ASX 200 Index (ASX: XJO) is up 2.1% since last Friday’s close, with plenty of help from these three surging ASX 200 stocks.

Here’s what’s been stoking investor interest this week.

Super Retail Group Ltd (ASX: SUL)

Super Retail shares closed last Friday trading for $11.32. At the time of writing, shares are changing hands for $12.42. That sees this ASX 200 stock up 9.7% for the week.

The ASX retail giant, whose brands include Supercheap Auto, Macpac, Rebel, and BCF, has finished in the green every day this week.

On Thursday, the company made financial headlines following the release of its new five-year growth strategy.

The company is aiming to increase its store numbers from 790 to more than 900 by 2031.

“Our new group strategy puts the customer at the centre of everything we do as we build our business for its next phase of growth,” Super Retail CEO Paul Bradshaw said.

“This will require deliberate short-term investments in our systems and unlock a sustainable cost advantage over time,” he added.

Super Retail expects the transformation project to cost around $30 million a year for the next three years.

Lendlease Group (ASX: LLC)

The second ASX 200 stock racing higher this week on big news is property developer and investment manager Lendlease.

Lendlease shares closed last Friday trading for $2.46 and are currently swapping hands for $2.84 each. This sees the Lendlease share price up 15.5% for the week.

Lendlease shares have finished in the green every day this week and closed up 4.6% on Thursday following a major leadership announcement.

The company revealed that Tony Lombardo will step down from the top role before the end of the month. Nick O’Neil will take over as CEO and managing director starting on 10 September.

Currently the head of Australian Real Assets at Australian Super, O’Neil has more than 25 years of experience across corporate and investment strategy, M&A, governance, capital markets, and real asset management.

Lendlease also reaffirmed its full-year FY 2026 earnings guidance for its IDC business at 28 cents to 34 cents per share.

Which brings us to…

ASX 200 stock Steadfast Group Ltd (ASX: SDF) leads the pack

Leading the pack higher this week is insurance brokerage company Steadfast Group.

Steadfast shares closed last week at $3.96 and are currently trading for $5.23 each. That puts this ASX 200 stock up an impressive 32.1% over four trading days.

Steadfast shares closed up 36.2% on Wednesday, after the company announced that it had received a conditional, non-binding, and indicative takeover offer from Amwins and Dragoneer.

The consortium is seeking to acquire 100% of Steadfast’s shares for $6 a share. That represents a 51.9% premium to Steadfast’s closing price on Tuesday.

The post 3 ASX 200 stocks leaping higher this week on big announcements appeared first on The Motley Fool Australia.

More reading

• ASX 200 slips as oil shock puts investors on edge
• Why Larvotto, Newmont, Qantas, and Steadfast shares are dropping today
• Why Lendlease, Meteoric Resources, Super Retail, and Woodside shares are rising today
• Guess which ASX 200 stock is avoiding the selloff and charging higher on big news
• Down 53% in a year, guess which $1.8 billion ASX 200 stock is jumping today on big leadership news

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

Starting your investment journey and have $500 ready to invest?

The good news is that this can be more than enough to start building an investment portfolio with ASX exchange traded funds (ETFs).

Listed below are five ASX ETFs that beginners could choose from, depending on the type of exposure they want.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The first ASX ETF to look at is the Betashares Asia Technology Tigers ETF.

This fund gives investors exposure to leading technology companies across Asia, but excluding Japan. That can include businesses involved in semiconductors, ecommerce, digital payments, online platforms, and hardware.

It is a higher-risk option than a broad market fund because it focuses on one region and one sector. But for beginners who want exposure to Asian technology growth, this ASX ETF could be a great place to start.

Betashares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF that beginners could consider is the Betashares Global Cybersecurity ETF.

Cybersecurity has become an essential part of modern life. Businesses, governments, and individuals all need protection as more activity moves online.

This fund gives investors exposure to global companies working in areas such as threat detection, network security, identity protection, and cloud security.

It is a thematic ETF, so it can be more volatile than a broad index fund. But the long-term demand for cybersecurity services appears unlikely to disappear.

Betashares Nasdaq 100 ETF (ASX: NDQ)

A third ASX ETF to look at is the hugely popular Betashares Nasdaq 100 ETF.

This fund provides exposure to 100 of the largest non-financial companies listed on the Nasdaq exchange. Many of them are global leaders in technology, online retail, cloud computing, artificial intelligence, and digital services.

For beginners, this can be a simple way to invest in some of the world’s most influential growth companies through one ASX trade. This includes NVIDIA (NASDAQ: NVDA), Tesla (NASDAQ: TSLA), and Apple (NASDAQ: AAPL).

iShares Global Consumer Staples ETF (ASX: IXI)

Another option for beginners to look at is the iShares Global Consumer Staples ETF.

This fund invests in global companies that sell everyday products such as food, beverages, household items, and personal care goods.

These businesses may not grow as quickly as technology companies, but demand for their products can be more stable. That can make this ASX ETF useful for investors wanting global exposure with a more defensive tilt.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ASX ETF for beginners to consider is the Vanguard MSCI Index International Shares ETF.

It gives investors broad exposure to developed markets outside Australia. It holds companies across the United States, Europe, Japan, and other major markets.

For beginners, this can be one of the simplest ways to diversify globally. It will still rise and fall with share markets, but it spreads money across many countries, sectors, and companies in a single investment.

The post 5 ASX ETFs for beginners with $500 appeared first on The Motley Fool Australia.

More reading

• SpaceX starts trading today. Here’s what ASX investors need to know
• 3 ASX ETFs for investors who want global winners
• Which ASX ETF should I buy?
• How to turn $20,000 into $200,000 with ASX shares
• Want to invest in the future? These technology ETFs are killing it

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, Nvidia, and Tesla. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Oil prices are heading lower on Friday as traders react to signs of easing tensions between the United States and Iran.

At the latest check, West Texas Intermediate crude oil is down 1.1% to US$86.80 a barrel. Brent crude is also down 1.14% to US$89.35 a barrel.

Both benchmarks are now trading near their lowest levels in almost 2 months after spending much of the past 3 months above their pre-war levels.

So, what is putting pressure on oil prices today?

Progress with Iran

The latest fall came after US President Donald Trump cancelled planned military strikes on Iran and said a peace agreement could be reached as early as this weekend.

The announcement reduced concerns that the conflict could immediately escalate and cause further damage to Iran’s oil facilities.

However, there is still no confirmed agreement.

Iran’s semi-official Fars news agency said Tehran was likely to accept a deal, but no final text had been approved. The proposed agreement would reportedly include reopening shipping through the Strait of Hormuz and restrictions on Iran’s nuclear program.

The Strait remains a major risk for the oil market. Iran has threatened vessels attempting to pass through the waterway, although commercial ships have continued to make the journey.

Brent crude has now fallen around 15% over the past month, while WTI is down about 14%.

China is buying much less oil

China’s lower oil imports are also helping keep prices below US$100 a barrel.

The Asian giant imported about 7.8 million barrels of crude oil per day in May. That was 29% lower than a year earlier and the weakest monthly result in more than 8 years.

Before the Iran conflict, China was importing close to 11 million barrels per day. That means around 3 million barrels of daily demand has dropped out of the market.

Chinese refiners have been drawing down existing stockpiles instead of buying more oil at higher prices.

Fuel demand has also weakened. Petrol sales at Sinopec fell 8% in April, while diesel sales dropped 6%.

The uptake of electric vehicles and weaker refinery activity have both reduced China’s need for imported crude.

US exports have helped fill the gap

Higher US oil exports have added more supply to the market.

Crude exports climbed above 5 million barrels per day during April and May, compared with an average of about 4 million barrels per day in recent years.

Those additional barrels have helped make up for some of the supply disruption caused by restricted shipping through the Strait of Hormuz.

What happens next?

Oil prices will continue to move with news from the United States and Iran.

A confirmed deal that allows ships to move freely through the Strait of Hormuz would ease concerns about oil supply.

However, global oil stockpiles are still falling. The International Energy Agency (IEA) expects demand to remain higher than supply until the final quarter of 2026.

Until there’s more certainty, oil prices could keep seesawing in the short term.

The post Oil prices are falling again. Here’s what is driving the drop appeared first on The Motley Fool Australia.

More reading

• 5 ASX ETFs for beginners with $500
• Why Brazilian Rare Earths, Evolution Mining, Magellan, and Qantas shares are racing higher today
• SpaceX IPO: Should you buy an ASX space ETF to cash in?
• Why EOS, Karoon Energy, REA Group, and Woodside shares are falling today
• Down 60%, are Cochlear shares now a bargain buy?

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a strong gain. At the time of writing, the benchmark index is up 1.9% to 8,799.1 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are storming higher:

Brazilian Rare Earths Ltd (ASX: BRE)

The Brazilian Rare Earths share price is up 4% to $5.33. This may have been driven by a broker note out of Ord Minnett. According to the note, the broker has upgraded the rare earths stock to a speculative buy rating (from hold) with a $6.95 price target. The broker made the move in response to encouraging drilling results from the Velhinhas prospect.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is up 6% to $11.60. Investors have been buying Evolution Mining and other ASX gold stocks today after the price of gold rebounded. The catalyst for this was US President Donald Trump stating that a US-Iran peace deal was close. This led to oil prices pulling back, easing inflation and rate hike concerns. The S&P/ASX All Ordinaries Gold index is trading 5% higher on Friday afternoon.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is up 5% to $9.51. This has been driven by news that the ACCC has given the thumbs up to its proposed merger with Barrenjoey. If the merger goes ahead, Magellan advised that it plans to change its name to Barrenjoey. Magellan’s chair, Andrew Formica, said: “As we bring these two businesses together it is important that our brand reflects both the expanded capabilities of the combined Group and the opportunities ahead. The decision to adopt the Barrenjoey name recognises the transformational nature of the Merger and follows feedback from our clients, our people and our shareholders since announcement of the Merger. A unified brand will provide greater clarity while reflecting the innovative culture, alignment of interests and commitment to clients that will define the combined organisation.”

Qantas Airways Ltd (ASX: QAN)

The Qantas share price is up over 4% to $9.41. Investors have been buying the airline’s shares after oil prices pulled back overnight. As fuel is a significant cost for an airline operator, any weakness in the price of oil is good news for its margins. In addition, the potential US-Iran peace deal could give travel markets a boost.

The post Why Brazilian Rare Earths, Evolution Mining, Magellan, and Qantas shares are racing higher today appeared first on The Motley Fool Australia.

More reading

• Magellan shares race 6% higher on big merger news
• Magellan Financial Group shares: ACCC backs merger and rebrand plans
• 5 things to watch on the ASX 200 on Friday
• Why Larvotto, Newmont, Qantas, and Steadfast shares are dropping today
• Why Evolution Mining, REA Group, Sigma Healthcare, and TechnologyOne shares are tumbling 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.

If you haven’t heard, the launch, sorry IPO, of SpaceX (NASDAQ: SPCX) on the American stock market is imminent. Soon, we will know how this company’s first day of trading on the public markets turned out.

The initial public offering (IPO) of SpaceX has been the talk of the investing town over the past few months. Even in Australia, investors have seemingly been keen, as we’ve documented, to get amongst the hype.

Although SpaceX is scheduled to list on the American NASDAQ exchange, Australians have been given unprecedented access to the IPO, with CommSec offering investors the chance to directly participate.

But of course, many ASX investors will not be comfortable owning SpaceX shares directly. Holding an asset outside our local stock market, and in US dollars, can be daunting. Perhaps to get ahead of this, the past few months have seen more than one new ASX exchange-traded fund (ETF) that specialises in space stocks sprout.

Space ETFs flood the ASX amid SpaceX IPO

A few weeks ago, we checked out the launch (forgive the pun) of the BetaShares Space Industry ETF (ASX: RCKT). And, just a few days ago, ETF provider Global X (no relation to SpaceX) debuted its Global X Space Tech ETF (ASX: MOON).

Both of these funds offer investors indirect access to some of the leading space companies of the world. Of course, they don’t feature SpaceX yet, as the company is just now making its stock market entrance.

But it is almost certain that SpaceX will find itself in both of these ETFs’ portfolios in the very immediate future. In fact, it does not strain credulity to posit that the IPO of SpaceX is in fact the very reason for the birth of these funds in 2026.

So, if you want to invest in SpaceX, but aren’t comfortable with buying a US stock, is one of these ETFs a good alternative?

Well, in my view, yes. If you wish to be exposed to SpaceX, as well as other leading companies in the space industry, either RCKT or MOON would fill the role nicely.

Foolish Takeaway

However, a word of caution. As we’ve previously discussed, SpaceX can arguably be described as a speculative investment. The market capitalisation it is aiming for (US$1.77 trillion) is a long way from its revenues last year of US$18.7 billion, and even further from the operating loss of UD$4.2 billion that it recorded.

Space is clearly the hype sector of the month, and many investors are pouring in their dollars in the literal hope things will go to the moon. Hype bubbles tend to pop eventually, though, and investors eventually turn to profits as an indicator of value, rather than lofty plans. If that happens, investors in a space ETF are highly exposed. As such, I would argue that investors should think twice before betting the farm on SpaceX or any of these space-themed ETFs.

The post SpaceX IPO: Should you buy an ASX space ETF to cash in? appeared first on The Motley Fool Australia.

More reading

• SpaceX starts trading today. Here’s what ASX investors need to know
• Are space ASX ETFs the next big growth opportunity or overhyped?
• The SpaceX and Anthropic IPOs will massively impact ASX AI shares
• The SpaceX IPO is coming. Here’s how ASX investors can benefit from the excitement
• What are the best performing thematic ASX ETFs right now?

Motley Fool contributor Sebastian Bowen 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 S&P/ASX 200 Index (ASX: XJO) is having a day to remember on Friday. In afternoon trade, the benchmark index is up 1.9% to 8,798.8 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is down 2% to $9.30. This morning, this defence and space company announced the successful completion of its share purchase plan. Management advised that the plan was overwhelmingly supported, with EOS receiving valid applications of $95 million from 4,909 eligible shareholders. This was significantly higher than the original $25 million target. In light of the strong demand and in recognition of the ongoing support from retail shareholders, the board exercised its discretion to accept $40 million in applications. Combined with its $150 million institutional placement and $40 million strategic placement, EOS has raised a total of $230 million from investors.

Karoon Energy Ltd (ASX: KAR)

The Karoon Energy share price is down 2.5% to $2.00. Investors have been selling the energy producer’s shares after oil prices sank overnight. Traders were selling oil after US President Donald Trump announced that he expects to sign a peace deal with Iran very shortly. This is expected to result in the reopening of the Strait of Hormuz, bringing more oil supplies to market. The S&P/ASX 200 Energy index is down 1.6% at the time of writing.

REA Group Ltd (ASX: REA)

The REA Group share price is down almost 4% to $141.47. Investors have been selling this property listings company’s shares this week following the release of two bearish broker notes. After Bell Potter downgraded the property listings company’s shares to a sell rating (from buy), UBS has followed suit and cut its recommendation to neutral from buy with a reduced price target of $165 (from $213). UBS has concerns that recent property tax changes could weigh on listing volumes in the near term. Judging by its share price weakness, it seems that some investors agree with this view.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside Energy share price is down 2% to $30.81. This follows the aforementioned pullback in oil prices overnight. This has overshadowed the release of an announcement this morning. Woodside revealed that it has exercised its right to acquire a further 10.67% interest in the Browse Joint Venture for up to US$400 million. This strengthens its position in Australia’s largest undeveloped conventional gas resource.

The post Why EOS, Karoon Energy, REA Group, and Woodside shares are falling today appeared first on The Motley Fool Australia.

More reading

• EOS shares are sliding again. Here’s what investors are worried about
• Woodside shares fall after a surprise $600 million move
• Woodside Energy lifts Browse JV stake under pre-emption deal
• Oil prices are back in focus. Here’s what that means for ASX energy shares
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro has positions in REA Group and Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. 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.

Cochlear Ltd (ASX: COH) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) hearing solutions company closed yesterday trading for $102.89. As we head into the Friday lunch hour, shares are swapping hands for $104.29 each, up 1.4%.

For some context, the ASX 200 is up 1.7% at this same time following claims by United States President Donald Trump that a peace deal with Iran may be just days away.

Despite today’s uptick, however, the Cochlear share price remains down a painful 60% in 2026.

Those losses will have only been modestly eased by the $2.15 a share in partly-franked dividends Cochlear paid to eligible stockholders on 13 April. Cochlear stock trades on a 4.1% partly-franked trailing dividend yield.

Which brings us back to our headline question.

With the company’s shares having lost more than half of their value over the last year, is the ASX 200 stock now trading for a bargain?

Should I buy Cochlear shares today?

MPC Markets’ Mark Gardner recently ran his slide rule over the ASX 200 stock (courtesy of The Bull).

“Cochlear remains a global leader in hearing implants, but the investment case has become more balanced,” he said.

“The shares have been under pressure after analysts re-assessed growth expectations and lowered revenue, margin and valuation assumptions,” Gardner added.

Looking to the company’s longer-term prospects, he said, “The long-term demand profile remains attractive, supported by ageing populations and continued adoption of implantable hearing technology.”

Explaining his hold recommendation on Cochlear shares, Gardner concluded:

However, the market will need evidence that procedure volumes and margins can recover before a stronger recommendation is warranted. At these levels, investors can continue to hold but should monitor earnings momentum and further analyst revisions.

What’s been happening with the ASX 200 stock?

Most of the pain for the shareholders was delivered on 22 April following the release of a decidedly unwelcome trading update.

Cochlear shares closed down 40.7% on the day after the company reported falling demand for its implants in developed markets, as well as flagging cancellations and delays in deliveries to the Middle East due to the ongoing conflict.

This saw management downgrade Cochlear’s full-year FY 2026 underlying net profit guidance to between $290 million and $330 million. That was down from the company’s prior FY 2026 underlying net profit guidance of $435 million to $460 million.

Cochlear also reduced its second-half FY 2026 sales growth forecast to 2% to 6% in constant currency.

The post Down 60%, are Cochlear shares now a bargain buy? appeared first on The Motley Fool Australia.

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• Do experts rate BHP, Cochlear, and ResMed shares as buys, holds, or sells?
• Buy, hold, sell: 4DMedical, Cochlear, Westpac shares
• Why everyone selling Cochlear shares right now could regret it in 3 years
• WiseTech, Cochlear, CSL shares: Can these beaten down stocks rebound in 2026?
• Short sellers are targeting these 3 ASX shares this week. Are they right?

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

Electro Optic Systems Holdings Ltd (ASX: EOS) shares are struggling to find direction on Friday.

This comes after the defence technology company released the results of its Share Purchase Plan (SPP).

The EOS share price has moved between gains and losses early in morning trade. At the time of writing, it is down 2.85% to $9.20.

That extends a difficult week for the ASX defence share, which has fallen more than 14% over the past 5 trading days.

However, investors who bought a year ago are still sitting on an enormous win. EOS shares have climbed close to 300% since this time last year.

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

Shareholders wanted $95 million worth of stock

EOS confirmed that its SPP received applications worth approximately $95 million from 4,909 eligible shareholders.

That was well above the company’s original target of $25 million.

In response to the strong demand, the board increased the size of the offer to $40 million. EOS will now issue approximately 5 million new shares at $8 each.

The offer price was the same as the company’s recent institutional and strategic placements.

However, shareholders will not receive everything they applied for. EOS said applications would be scaled back on a pro-rata basis, taking into account each applicant’s shareholding at the record date.

Allocations will also be rounded so that eligible shareholders receive at least $1,000 worth of shares.

The new shares are expected to be issued next Tuesday, with trading due to begin the following day.

Why are EOS shares falling?

The SPP attracted almost four times its original target, showing there was no shortage of demand at $8 per share.

But the price is still well below where EOS shares are trading today. Even after this week’s fall, the stock remains 15% above the SPP issue price.

That may be encouraging some investors to take money off the table before the new shares begin trading next week.

There’s also the prospect of SPP participants locking in a quick gain once their shares are issued.

EOS has raised quite a large amount of capital in a short period. The SPP comes on top of a $150 million institutional placement and a $40 million strategic placement.

Has the EOS share price run too far?

EOS has enjoyed a huge rally as investors have backed growing defence spending and demand for counter-drone technology.

The company recently completed its acquisition of MARSS, adding AI-enabled command and control systems to its defence operations.

But after a gain of almost 300% in 12 months, expectations are much higher than they were a year ago.

The strong SPP demand is encouraging, but the extra shares and discounted issue price could keep the stock under pressure next week.

The post EOS shares are sliding again. Here’s what investors are worried about appeared first on The Motley Fool Australia.

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• Up 331% in a year. Can EOS shares keep storming higher?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. 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.