Author: openjargon

The PLS Group Ltd (ASX: PLS) share price has been one of the strongest performers in the S&P/ASX 200 Index (ASX: XJO) of the past year.

As the chart below shows, it has risen by close to 100% in the last 12 months!

After such a large rise, I think it’s worthwhile asking if it’s an opportunity or if it has reached a plateau.

Better lithium prices driving stronger profits

Every shareholder wants to see their business generating pleasing profits. After a difficult couple of years, PLS Group has seen an enormous upswing in its financials thanks to a large increase in the lithium price.

During FY26, the realised (sold) price for its lithium saw a 109% year-over-year increase to US$1,488 per tonne. The company also increased its production by 17% as it ramps up to meet the growing demand.

For FY26, PLS Group reported 152% growth of revenue to $1.9 billion, underlying operating profit (EBITDA) grew 1,067% to $1.1 billion, while net profit after tax (NPAT) soared 608% to $1.36 billion. Its cash margin from operations improved by 608% to $1.36 billion.

The massive improvement of profitability allowed the business to declare a dividend of 5 cents per share.

PLS Group has managed to deliver significant profits while also investing to increase production. The company is working towards its P2000 project target for Pilgangoora, with a pre-final investment decision (FID) investment of around $175 million. The Colina project feasibility study is also progressing, and it has restarted the Ngungaju processing plant.

Overall, it was an excellent year for the business. However, the result wasn’t really a surprise for the market because it was clear that the lithium price was rising throughout the year.

The current PLS Group share price also reflects a lot of the improved positivity about the lithium sector.

Is the PLS Group share price attractive?

The company expects to grow production by at least 17% in FY27, a solid tailwind for earnings growth in the new financial year, though changes in lithium prices could also have a significant impact.

PLS Group highlights that lithium demand is forecast to triple by 2040, with that growth broadening across geographies and end-uses. Electric vehicle demand is growing and solar and wind generation is expected to continue rising, requiring significant energy storage.

The ASX lithium share also suggested that lengthening development timelines could constrain the industry’s ability to meet the growing demand. In the 2010s, mine development took 16 years on average from discovery to production; in this decade, it has taken 18 years on average.

According to CMC Invest, there have been 12 analyst rating calls on the business within the last three months, with seven of those ratings being a buy, three being a hold, and two being a sell.

The average price target from those 12 analysts is $5.52, suggesting a potential rise of about 30% over the next year. That implies the PLS Group share price could be a solid buy today.

The post Is the PLS Group share price a buy in September? appeared first on The Motley Fool Australia.

More reading

• ASX 200 drops again as selling continues
• Buy, hold, sell: Magellan, Iluka Resources, PLS Group shares
• Which ASX lithium miners does Macquarie prefer?
• PLS shares have soared 107% in a year! Is the ASX 200 lithium stock now a buy, hold or sell?
• These are the 10 most shorted ASX shares

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

The Infratil Ltd (ASX: IFT) share price is in focus today after the company upgraded its FY27 proportionate EBITDAF guidance on soaring data centre demand. Key highlights include contracted capacity at CDC Data Centres reaching 1.1GW and a step-up in earnings outlook for both CDC and US-based Longroad Energy.

What did Infratil report?

• FY27 proportionate EBITDAF guidance lifted to NZ$1,320 million–$1,420 million (previously NZ$1,300 million–$1,400 million).
• CDC Data Centres’ FY27 EBITDAF guidance raised to A$710 million–$750 million (from A$680 million–$720 million) after new contract wins and operating cost savings.
• CDC now has 1.1GW of contracted capacity, expected to deliver A$2.2 billion annualised EBITDAF when fully deployed.
• Longroad Energy is scaling up, acquiring a 2.8GW project and targeting a 14GW energy fleet by 2029.
• One New Zealand continues strong cash generation, growing mobile revenue share and progressing IT simplification.

What else do investors need to know?

Infratil’s portfolio now stands at NZ$22 billion in total assets, with data centre investments making up over half that value. The company is actively refining its portfolio, including a sales process for its Qscan radiology business, and ongoing investments in infrastructure optimisation.

Longroad Energy is meeting strong US market demand by ramping up its renewables development, while also exploring data centre co-location at its solar farm sites. In New Zealand, EonFibre has completed its first year as a separated business and is positioned to capture future AI-driven data centre growth.

What did Infratil management say?

Infratil Chief Executive Officer Jason Boyes said:

Our global portfolio provides multiple pathways to grow returns across the AI infrastructure value chain. We’re pursuing attractive opportunities adjacent to our core energy and data centre investments, including leveraging our existing platforms across geographically diverse markets, as well as exploring new sectors for future growth.

What’s next for Infratil?

Infratil is focused on scaling its core data centre and renewables businesses, maintaining capacity for future growth with a strong BBB+ balance sheet rating. The company is also searching for new verticals and adjacencies that align with its infrastructure expertise and target returns.

Capital management remains a priority, with further divestments planned to fund growth opportunities. Infratil’s strategy is underpinned by steady contracted revenue streams and a disciplined approach to deploying capital in high-demand sectors like AI, digital infrastructure, and renewables.

Infratil share price snapshot

Over the past 12 months, Infratil shares have declined 2%, matching the S&P/ASX 200 Index (ASX: XJO), which has also fallen 2% over the same period.

View Original Announcement

The post Infratil hikes earnings guidance as data centre growth accelerates appeared first on The Motley Fool Australia.

More reading

• Is the PLS Group share price a buy in September?
• 3 excellent ASX dividend shares with 5.5% to 7.7% yields
• How much of my superannuation do I need to invest to earn $60,000 of passive income in 2027?
• 3 ASX ETFs for easy artificial intelligence (AI) exposure
• 2 top ASX shares to buy and hold for the next decade

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.

There are plenty of ASX dividend shares offering attractive dividend yields right now.

But which ones could be buys this week?

Let’s take a look at three with big yields that could be excellent picks for income investors.

APA Group (ASX: APA)

APA could be a strong option for income investors. It owns and operates a large portfolio of energy infrastructure assets across Australia, including gas pipelines, processing facilities, storage assets, and electricity transmission infrastructure.

These are important assets that help move energy around the country.

A large portion of APA’s earnings is also supported by long-term contracts and regulated revenue, which gives the business good visibility over future cash flows.

That has helped APA build a long record of growing its distributions.

Management is expecting FY 2027 dividends of 59 cents per share, up from 58 cents in FY 2026.

Based on its current share price of $10.81, this represents a forward dividend yield of approximately 5.5%.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share for income investors to consider is the HomeCo Daily Needs REIT.

It is a property company that owns neighbourhood retail, large-format retail, healthcare, and other properties focused on everyday spending.

Its tenants include supermarkets, pharmacies, healthcare providers, childcare operators, and other businesses that tend to remain well used through different economic conditions. This creates a relatively defensive source of rental income.

More positives are that HomeCo Daily Needs REIT has high occupancy levels and has been growing rental income across its portfolio.

This is expected to underpin a dividend of 8.6 cents per share in FY 2027. Based on its current share price of around $1.11, this would mean a very large dividend yield of approximately 7.7%.

Universal Store Holdings Ltd (ASX: UNI)

A final ASX dividend share for income investors to look at this week is Universal Store.

The youth fashion retailer operates Universal Store, Perfect Stranger, and Thrills, giving it exposure to several different customer groups and price points.

Across these brands, Universal Store has built a clear position in the youth fashion market. Its stores are carefully curated, while its growing portfolio of owned brands gives the company more control over margins and product.

The retail industry has been a tough place to be recently, but that hasn’t stopped Universal Store from growing its sales, profits, and dividends strongly.

The good news is that the market expects this trend to continue in FY 2027. It is forecasting a fully franked dividend of 46 cents per share.

Based on its current share price of $7.09, this represents a generous 6.5% dividend yield.

The post 3 excellent ASX dividend shares with 5.5% to 7.7% yields appeared first on The Motley Fool Australia.

More reading

• How much superannuation do I need to earn $70,000 per year in passive income?
• How much is needed in superannuation to target a $6,500 monthly passive income?
• My top ASX passive income stocks for the next 10 years
• How to build a superannuation portfolio generating $50,000 a year
• 9 ASX shares just upgraded by the experts

Motley Fool contributor James Mickleboro has positions in Universal Store. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Looking to invest some of your superannuation savings in ASX shares to earn an extra $60,000 of passive income in 2027?

Here’s what you need to know before investing a single dollar of your super balance.

Franking credits and diversification

Whether you’re investing from your savings account or tapping into your superannuation, if you’re after passive income, I recommend sticking to the larger end of the market. So, generally, S&P/ASX 200 Index (ASX: XJO) dividend stocks.

These tend to have less volatile share price moves and more stable dividend payments than small-cap ASX dividend shares.

I’d also preference ASX 200 shares paying fully franked dividends. This gives you credit for the 30% in taxes the companies you’re buying have already forked over to the ATO on the profits they made.

Then there’s the crucial ‘don’t put all your eggs in one basket’ rule.

If you’re investing a sizeable portion of your superannuation savings to target $60,000 of passive income in 2027, then you’ll want to invest in a diverse range of say 15 to 20 stocks.

Ideally these will operate in various sectors and locations. This will reduce the risk of your passive income stream taking an outsized hit if any single company or sector runs into a rough patch.

And finally, keep in mind that the dividend yields you generally see quoted are trailing yields. Future yields may be higher or lower depending on a range of company specific and macroeconomic factors.

With that said…

How much superannuation do I need to invest for a $60,000 passive income?

Precisely how much superannuation you’ll need to invest to achieve your 2027 $60,000 passive income goal will, of course, depend on the yield you achieve from the ASX shares you’re buying.

Using the below three diverse ASX 200 dividend stocks as an example, here’s what you might expect, without needing to draw down on your initial investment.

First up, Westpac Banking Corp (ASX: WBC) shares.

Over the past full year, Westpac paid two fully franked dividends, totalling $1.54 a share. At the recent Westpac share price of $34.23, the ASX 200 bank stock trades on a fully franked 4.5% trailing dividend yield.

Next up, I’d look at investing some of my superannuation into ASX 200 coal stock New Hope Corp Ltd (ASX: NHC).

New Hope paid a 10 cent per share fully franked interim dividend on 20 April. The 30 cent per share final dividend is still up for grabs. To score that, you’ll need to own New Hope shares at market close this Friday. You can then expect to get paid on October.

At the recent share price of $6.57, New Hope shares trade on a fully franked dividend yield (partly trailing, partly confirmed) of 6.1%.

And third, we have ASX 200 telco Telstra Group Ltd (ASX: TLS).

Over the past year Telstra has paid out two 90% franked dividends totalling 21 cents per share. At the recent share price of $4.83, Telstra shares trade on a 4.4% trailing dividend yield.

If you were to invest the same amount of your superannuation into each of the above ASX 200 dividend stocks, you could expect to earn a yield of 5.0%.

To earn $60,000 of passive income in 2027 you’d then need to invest $1.2 million today.

The post How much of my superannuation do I need to invest to earn $60,000 of passive income in 2027? appeared first on The Motley Fool Australia.

More reading

• How much superannuation do I need to earn $70,000 per year in passive income?
• Here are the top 10 ASX 200 shares today
• $10,000 invested in Zip and New Hope shares 3 years ago is now worth…
• New Hope shares near 52-week high. Here’s what stood out in the result
• Are Telstra shares a good buy for passive income?

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

Artificial intelligence (AI) could be one of the biggest investment themes of the next decade.

But investors do not have to find the next Nvidia or pick which software company will ultimately come out on top.

ASX exchange traded funds (ETFs) can provide a simpler way to gain exposure to the theme.

Here are three very different options. Investors could choose the one that best suits their portfolio, or potentially own more than one.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF could be a good option for investors who want AI exposure without making it the entire investment case.

The fund tracks 100 of the largest non-financial companies listed on the Nasdaq exchange.

That includes businesses involved in semiconductors, cloud computing, software, digital advertising, ecommerce, and consumer technology.

Many of these companies are investing heavily in AI or are providing the infrastructure needed to support it. This includes Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and Google parent Alphabet (NASDAQ: GOOG).

Overall, this gives investors exposure to the theme while still owning a wider collection of leading growth companies.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Another option is the Betashares Global Robotics and Artificial Intelligence ETF.

This fund gives investors exposure to companies involved in robotics, automation, artificial intelligence, drones, autonomous systems, and related technologies.

I think this is an interesting way to approach AI because it looks beyond chatbots and software.

AI can also help machines perform more complicated tasks in factories, warehouses, hospitals, farms, and logistics networks.

Businesses around the world are constantly looking for ways to lift productivity and automate repetitive work.

If that continues, robotics and intelligent machines could become far more common over the next decade.

Global X Artificial Intelligence ETF (ASX: GXAI)

For investors wanting more direct exposure to the AI theme, the Global X Artificial Intelligence ETF could be worth considering.

This fund invests across different parts of the AI ecosystem.

That can include companies involved in semiconductors, software, cloud computing, data infrastructure, automation, and other technologies needed to develop and deploy artificial intelligence.

The good thing here is that nobody really knows where all the winners will come from.

Some winners could build AI models. Others could supply the chips, computing power, software tools, or infrastructure required to run them.

The Global X Artificial Intelligence ETF gives investors a way to back that wider opportunity rather than trying to identify one company that will dominate the AI era.

The post 3 ASX ETFs for easy artificial intelligence (AI) exposure appeared first on The Motley Fool Australia.

More reading

• Vanguard ETFs vs. Betashares ETFs: Who’s coming out on top?
• 3 very exciting ASX ETFs for investors to watch
• How much could $10,000 invested in these AI focussed ETFs be worth in a year?
• 3 of the best ASX ETFs to buy and hold for 10 years
• NDQ vs IVV: One could be the better US growth ASX ETF

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, BetaShares Nasdaq 100 ETF, Microsoft, and Nvidia. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Long-term investing in ASX shares could be the best way to allocate money because it gives strong investments a better chance to perform well.

But I wouldn’t want to invest in something that’s going to be mediocre for a long time; I’d only want to buy investments that could help grow my wealth over time.

Below are two ideas I’d feel comfortable owning for the next 10 years (and beyond).

TechnologyOne Ltd (ASX: TNE)

TechnologyOne describes itself as Australia’s largest enterprise software company with a global presence. It aims to provide end-to-end software as a service (SaaS) enterprise resource planning (ERP) for clients.

It has 1,300 leading corporations, government agencies, local councils and universities as clients.

The business has won several major clients recently, including the City of Townsville, Cardinia Shire Council, Liverpool City Council, Salisbury City Council, and City of Ryde Council.

The UK could be a strong area of growth for the business over the coming years. According to TechnologyOne, the UK local government sector is currently undergoing a transition period with the planned amalgamation of smaller councils to form larger, economically viable councils. It said in the FY26 result that its sales pipeline for local government in the UK remains strong and it thinks it will see accelerated growth from this sector in future periods.

The education is also growing, with annual recurring revenue (ARR) growth of 15% in FY26, with good wins like James Cook University. In the UK, it has won the University of Suffolk and Royal Holloway, University of London.

This business is aiming to reach at least $1 billion in ARR by FY30 from its base of $598 million. The company also thinks economies of scale could help it boost its profit-before-tax margin to at least 35% in the long term.

In the next decade, I think its earnings could rise significantly, making it good value today.

BetaShares Diversified All Growth ETF (ASX: DHHF)

The other investment I want to discuss is an exchange-traded fund (ETF) that aims to provide exposure to a diversified, low-cost ‘all-growth’ portfolio.

The idea of the portfolio is that it can provide exposure to global shares across a wide range of global exchanges.

Currently, it has a strategic asset allocation guideline of 37% to Australian shares and 63% to international shares across US shares, developed share markets (excluding the US) and emerging market shares.

The ASX share market allocation is similar to the US share market allocation, while the developed market (excluding the US) has a 15% allocation, and emerging markets has an approximate 7% allocation.

The markets that have the biggest exposure beyond the US and Australia, are Japan, Taiwan, China, Canada, the UK, South Korea and India.

I like how the fund can give exposure to a wide variety of assets with just a single investment, which I’d call very appealing for a long-term investment.

Since the fund’s inception in December 2020, it has returned an average of 11.8% per year.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

More reading

• With no savings at 50, I’d follow Warren Buffett’s approach to build wealth
• Why I think these are the best ASX shares to buy and hold
• How to build a winning ASX share portfolio and create wealth
• How to build an ASX portfolio you can stick with for 10 years
• Are these 3 top Betashares ETFs a buy in September?

Motley Fool contributor Tristan Harrison has positions in Technology One. 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.

Following the announced Federal tax changes earlier this year, the attractiveness of ASX passive income shares may have shifted in investors’ minds.

In my view, listed investment companies (LICs) may be some of the best options to consider, as they can provide a combination of growing dividends, a large dividend yield and long-term capital growth.

Let’s run through why I think the two stocks below are so appealing for dividends.

PM Capital Global Opportunities Fund Ltd (ASX: PGF)

This LIC is managed by an impressive investment team, led by Paul Moore, Chief Investment Officer (CIO).

Having the global share market as a hunting ground is very helpful for generating returns, in my view, because there is a wide array of opportunities across sectors that the ASX can’t necessarily provide exposure to at a meaningful scale. Additionally, global stocks in sectors like banking and mining tend to trade at a lower earnings multiple than the ASX equivalent.

The five sectors that the ASX passive income share has the biggest exposure to European banks, industrial metal commodities, healthcare, industrials and leisure and entertainment.

The investment strategy has performed exceptionally well, with the net return being an average of 17.1% per year since the LIC’s inception in December 2013.

Those net returns have been more than enough for the LIC to pay a good and growing dividend.

Aside from FY23 when it maintained its annual payout, the business has increased its dividend every year since 2016. So, it has already provided a decade of reliable dividends, and I expect the good dividend track record to continue.

In FY26, it grew its annual dividend per share by 26% to 14.5 cents per share. It expects to hike its FY27 annual payout by at least 10% to 16 cents per share. That translates into a forward grossed-up dividend yield of 7.2%, including franking credits, at the time of writing.

Future Generation Australia Ltd (ASX: FGX)

The other ASX passive income share I want to highlight is another LIC.

Future Generation Australia is a very different type of LIC. None of the fund managers involved charge management fees or performance fees – they all work pro bono (for free) – so that the LIC can donate 1% of its net assets each year to youth charities.

The fund is invested in more than a dozen funds that invest in ASX shares. The underlying portfolio is invested in hundreds of ASX shares, providing more exposure to smaller, faster-growing shares than the S&P/ASX 200 Index (ASX: XJO) does.

It’s able to provide excellent diversification and less volatility than the wider market, partly thanks to its cash weighting.

The LIC has increased its annual dividend every year since it began paying in 2015, an impressive, consistent record of payout growth.

It expects to pay an annual dividend of 7.6 cents per share for 2026, which translates to a forward grossed-up dividend yield of 8.5%, including franking credits, at the time of writing. I expect the 2027 dividend will be larger, but I’m using the guided payout for my calculations.

$200 passive income per month

If someone is targeting $200 per month of passive income, that translates into an annual goal of $2,400.

Between the two picks I named above, the average dividend yield is 7.85%. Assuming equal investments in each stock, this would require a total investment of around $30,600 to generate that much passive income.

The post 2 ASX passive income share ideas I’d use to generate $200 a month in 2027 appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $6,500 monthly passive income?
• How much is needed in superannuation to target a $70,000 annual passive income?
• 2 ASX shares with dividend yields above 8%
• How much do I need to retire on $80,000 a year at 50?
• How much is needed in superannuation to target a $60,000 annual passive income?

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia. 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.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a disappointing session and dropped deep into the red. The benchmark index fell 0.9% to 8,672.5 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 to rise

The Australian share market looks set for a better session on Wednesday despite a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 31 points or 0.35% higher. In the United States, the Dow Jones fell 0.6%, the S&P 500 dropped 0.45%, and the Nasdaq was 0.8% lower.

Oil prices jump

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Wednesday after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 4% to US$105.48 a barrel and the Brent crude oil price is up 2.65% to US$108.48 a barrel. This follows reports that Saudi Arabia has been forced to cancel some crude cargoes.

Lovisa shares upgraded

Bell Potter thinks that Lovisa Holdings Ltd (ASX: LOV) shares are attractively priced. This morning, the broker has upgraded the fashion jewellery retailer’s shares to a buy rating (from hold) with a steady price target of $27.00. It said: “Our TP remains unchanged at $27.00 given we make no changes to our forecasts while our target P/E multiple remains unchanged at ~29x on a blended FY27/28e basis. Post the market sell-off, we think the current valuation at ~22x FY27e P/E (BPe) which is a ~20% discount to LOV’s recent mid-cycle P/E as BPe of 28.5x appears attractive, and we upgrade our recommendation to BUY.”

Gold price falls

ASX 200 gold shares Westgold Resources Ltd (ASX: WGX) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Wednesday after the gold price pulled back again. According to CNBC, the gold futures price is down 0.45% to US$4,333.4 an ounce. Traders are betting on inflation spiking due to high oil prices.

Buy Netwealth shares

Bell Potter is also recommending Netwealth Group Ltd (ASX: NWL) shares to clients today. In response to its deal to acquire Paradino, the broker has retained its buy rating with a trimmed price target of $30.00. It said: “The impact from Paradino is limited. There is 10% adviser growth straight away and the price tag is fair for what could be a transformational strategic move. Trading on 33x, NWL continues to offer strong revenue growth potential at a discount to its prior TTC valuations. Buy.”

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

More reading

• Is this the best value stock amongst the ASX consumer discretionary sector?
• Here are the top 10 ASX 200 shares today
• Santos shares slide from fresh multi-year high: What’s next for the ASX energy stock?
• ASX 200 drops again as selling continues
• Santos shares are up 40% in 2026. Here’s why I’d still buy them today

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

Two ASX healthcare shares are stealing the spotlight this week. Telix Pharmaceuticals Ltd (ASX: TLX) shares have rocketed by as much as 15%, while 4DMedical Ltd (ASX: 4DX) shares have added around 10% at the time of writing.

Here’s the story behind each move, plus what brokers now expect.

Telix now has 3 FDA-cleared diagnostics

Telix just delivered the news investors had circled on their calendars. On Monday, the FDA approved Pixclara, Telix’s PET imaging agent for brain cancer, confirming Pixclara is the only FDA-approved radiopharmaceutical imaging drug for glioma.

That’s a big deal. This asset had already been knocked back once, with the FDA issuing a knockback in mid-2025 over data consistency before Telix resubmitted its application and won a priority review with a September action date. Getting it over the line removes years of regulatory overhang in one shot.

This ASX healthcare share has been a rollercoaster for exactly this reason. Binary regulatory outcomes can swing the price into double digits overnight. With approval finally locked in, Telix now has three FDA-cleared products anchoring its diagnostics franchise, adding a new revenue stream to its existing prostate and kidney imaging portfolio.

Brokers were already leaning bullish before Monday’s news. Consensus data shows 13 out of 16 analysts on TradingView rate Telix a buy or strong buy, with an average 12-month price target around 45% above the current share price.

Citi has been the most bullish, maintaining a $31 target, while JPMorgan sits around $24.40. Not everyone’s on board. RBC downgraded to hold with an $18 target, a fraction higher than the share price at the time of writing.

4DMedical: starting to show commercial traction

4DMedical’s move is smaller in percentage terms but reflects a similar theme: commercial traction finally showing up in the numbers.

The respiratory-imaging company has spent the past two years converting FDA clearances and marquee partnerships into actual revenue, and this ASX healthcare share has rewarded patient holders handsomely with a 112% gain over 12 months.

The engine for this tech stock is CT:VQ, 4DX’s ventilation-perfusion imaging software, which uses ordinary chest CT scans to generate the kind of data that once required nuclear medicine.

Adoption has been building steadily across top-tier US academic centres, and Medicare has already confirmed reimbursement under Category III CPT codes. That’s a crucial unlock for hospital adoption at scale.

Analysts, though, are more split on 4DMedical than on Telix. Bell Potter remains the standout bull, maintaining a $6.00 target, while Ord Minnett carries a sell at $3.00. It’s a name where opinions genuinely diverge on how fast the commercial ramp will actually convert to profit.

Foolish takeaway

Both stocks are classic high-beta plays in the healthcare space. And this week’s rally shows exactly why: regulatory and commercial catalysts can move these ASX healthcare shares fast in either direction.

Telix’s Pixclara approval is about as clean a catalyst as it gets, and brokers have responded accordingly. 4DMedical’s story is earlier-stage and more contested among analysts.

Investors chasing either move after the fact should weigh the excitement of the headline against the underlying pace of revenue growth — and size accordingly.

The post These 2 ASX healthcare shares just jumped up to 15%. Here’s why appeared first on The Motley Fool Australia.

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JPMorgan Chase is an advertising partner of Motley Fool Money. 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 positions in and has recommended JPMorgan Chase and Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Guzman Y Gomez (ASX: GYG) shares have staged a red-hot comeback since plumbing their all-time closing low of $15.20 apiece on 2 April.

On Tuesday afternoon, shares in the S&P/ASX 200 Index (ASX: XJO) Mexican fast food restaurant chain were changing hands for $25.39 each.

That sees the stock up a remarkable 67.0% since 2 April.

And that’s not including the 40.8 cent per share fully franked final dividend the company declared when it reported its full year FY 2026 results on 21 August.

Guzman Y Gomez stock traded ex-dividend yesterday. Meaning if you owned shares at market close on Monday, you can expect to see that passive income payout land in your bank account on 30 September.

But following on the strong five-month share price rally, is this ASX 200 stock still a good buy today?

Guzman Y Gomez shares: Buy, hold or sell?

Baker Young’s Toby Grimm recently analysed the outlook for the company’s surging shares (courtesy of The Bull).

“GYG is a Mexican themed restaurant chain,” he said. “The share price has rallied strongly after a decision to exit loss making US operations in May, followed by encouraging full year results in August.”

However, Grimm foresees potential headwinds from exiting the world’s biggest economy.

He noted:

While there’s a near term benefit of withdrawing from the US, the decision also removes long-term expansion potential. Also, it places more pressure on Australia, Singapore and Japan to perform to greater heights to justify what we consider a lofty price-earnings multiple.

And with Guzman Y Gomez shares having rocketed off their lows, Grimm issued a sell recommendation on the ASX 200 stock.

He concluded:

The shares materially exceed our valuation. The shares have risen from $16 on May 20 to trade at $26.85 on September 10. Investors may want to consider taking a profit at these levels given the Australian economy is dealing with a cost of living crisis.

What’s the latest from the ASX 200 fast food stock?

GYG reported a 31.6% year-on-year increase in FY 2026 statutory net profit after tax (NPAT) to $40.6 million.

However, Guzman Y Gomez booked a statutory group NPAT loss of $26.7 million due to its US exit.

Commenting on the results, founder and co-CEO Steven Marks said:

Our Australia Segment has reported network sales of $1.4 billion, up 17.9% on last year, demonstrating continued consumer demand for clean, fresh, made-to-order food, loaded with flavour and prepared at speed.

This momentum has translated into strong earnings growth, with underlying EBITDA up 28.7%, highlighting the strong operating leverage embedded in our business.

Guzman Y Gomez shares closed up 11.4% on the day of the results release.

The post Up 67%! Is it too late to buy the rally in Guzman Y Gomez shares now? appeared first on The Motley Fool Australia.

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