Category: Stock Market

WiseTech Global Ltd (ASX: WTC), GQG Partners Inc (ASX: GQG) and Life360 Inc (ASX: 360) shares are turning heads today.

Two of the S&P/ASX 200 Index (ASX: XJO) heavyweights are underperforming the 0.6% losses posted by the benchmark index during the Tuesday lunch hour, while one is marching higher.

Here’s what’s catching investor interest.

Life360 shares tumble despite revenue growth

Life360 shares are taking a beating today.

Shares in the ASX 200 location sharing software company are down a sharp 10.9% at the time of writing, trading for $17.93 each.

This underperformance follows the release of the company’s first-quarter results (Q1 2026) and comes amid broader weakness in the ASX tech sector today and apparently lofty investor expectations.

Indeed, Life360 shares are tumbling despite the company reporting a 38% year-on-year quarterly revenue boost to US$143.1 million. And adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$17.1 million were up 7%.

Management also increased full-year 2026 revenue guidance to between US$650 and US$685 million, up from prior guidance of US$640 million to US$680 million. Full-year adjusted EBITDA guidance was increased to US$130 to US$140 million, up from the prior range of US$128 million to US$138 million.

GQG shares lift on FUM boost

Unlike Life360 shares, GQG shares are on the rise today following an April performance update.

As at 30 April, the ASX 200 financial stock reported funds under management (FUM) of US$166.9 billion. That’s up US$4.4 billion from the end of March.

GQG achieved that FUM growth despite April net outflows of US$1.4 billion. Management credited this to a strong month for investment markets and performance across GQG’s strategies.

WiseTech shares join tech sell-off

Joining GQG and Life360 shares in the financial headlines, WiseTech shares are down 5.2%, changing hands for $40.08.

The ASX 200 logistics software solutions company presented at the annual Macquarie Group Ltd (ASX: MQG) Australia Conference today.

The company highlighted its strong first half-year performance (H1 FY 2026), which included a 76% increase in revenue and a 31% increase in EBITDA. This was spurred by WiseTech’s acquisition of US-based cloud software company e2open in late 2025 to create TradeWise.

Management said this provided “a clear path to margin expansion post integration”.

WiseTech now serves more than 22,000 logistics companies across 193 countries. That includes 23 of the top 25 largest global freight forwarders.

And rather than seeing AI as a potential threat to its business, WiseTech noted, “AI amplifies our resilient market position, drives step-change efficiency, and accelerates customer success.”

The post Why is everyone talking about WiseTech, GQG and Life360 shares on Tuesday? appeared first on The Motley Fool Australia.

More reading

• Why are Life360 shares sinking 8% today?
• GQG Partners reports growth in funds under management for April 2026
• Life360 Q1 2026 earnings: revenue climbs, advertising growth stands out
• 1 smashed-up ASX share I’d buy before it rebounds
• 5 things to watch on the ASX 200 on Tuesday

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 Life360, Macquarie Group, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Life360, Macquarie Group, and WiseTech Global. The Motley Fool Australia has recommended Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Santos Ltd (ASX: STO) has just made a final investment decision to go ahead with a major gas project in Papua New Guinea, which will start producing two years from now.

All systems go

The Adelaide-based oil and gas company said in a statement to the ASX on Tuesday that it had decided to go ahead with the Agogo Production Facility (APF) Tie-In Project in PNG, following approval by the PNG LNG joint venture.

Santos said:

The APF Tie-In Project will deliver gas from the Santos-operated Agogo Production Facility to the PNG LNG gas pipeline via a new 19-kilometre pipeline, together with two new wells and associated production facility modifications. Santos’ share of capital expenditure is approximately $160 million (gross capex approximately $400 million over three years). First gas is targeted second quarter 2028.  

Santos Managing Director Kevin Gallagher said the project was a “highly value-accretive investment” which met the company’s investment criteria.

He added:

The APF Tie-In Project is a high-quality development with strong economics and a clear role in our strategy to build and grow portfolio production. The execution of this project will convert Santos’ 66 mmboe (million barrels of oil equivalent) 2P undeveloped reserves into developed reserves, delivering incremental net production of ~54 mmscf/d (million standard cubic feet per day) with significant upside potential depending on reservoir performance. With an expected internal rate of return of greater than 50 per cent and a payback period less than four years from FID, and approximately two years from first gas, the project is expected to be strongly value accretive, support our long-term production profile and sustain feed gas supply to PNG LNG.

The project has a 12-year production plateau, and Santos said it had the potential to continue production beyond 2050.

Santos said the key regulatory approvals were in place, the required land access had been secured, and all material joint venture approvals had been obtained.

Santos holds a 39.9% interest in the PNG LNG joint venture. The other joint venture partners are ExxonMobil PNG, ENEOS Xplora, Kumul Petroleum, and the Mineral Resources Development Company.

Shares looking attractive

Jarden last month published a research report into Santos, which said that while commissioning issues at the company’s Barossa and Pikka projects were negatives, the company had delivered an “otherwise solid quarterly”.

The Jarden team added:

While we think Santos will eventually need to downgrade 2026 production guidance, it shouldn’t stop the company from moving from its 5-year investment phase to serious cash flow generation in 2H26.

Jarden has a price target on Santos shares of $8.80 compared with $7.55 currently.

Santos is valued at $24.42 billion.

The post Which ASX energy company has just signed off on a major gas project? appeared first on The Motley Fool Australia.

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

DroneShield Ltd (ASX: DRO) shares are being sold off on Tuesday.

In morning trade, the counter-drone technology company’s shares are down 16% to $2.95.

Why are DroneShield shares crashing?

Investors have been rushing to the exits on Tuesday after the company made an announcement.

According to the release, the company has advised that it has received a notice from the Australian Securities and Investments Commission (ASIC).

The notice reveals that ASIC is requesting for it to provide reasonable assistance in connection with an investigation under the Corporations Act.

What is the investigation?

The investigation relates to announcements made between 1 November 2025 and 20 November 2025, as well as share trading between 6 November 2025 and 12 November 2025. It said:

DroneShield advised that it will cooperate fully with the investigation regarding announcements and information provided to the Australian Securities Exchange between 1 and 20 November 2025, and trading in Droneshield shares between 6 and 12 November 2025 (inclusive).

What was announced during this time?

Between 1 November and 20 November, DroneShield made a number of announcements.

However, a release that stands out is one that it made on 10 November, which was subsequently withdrawn.

On that date, DroneShield announced the receipt of a package of three standalone contracts totalling $7.6 million for handheld systems for delivery to the U.S. Government.

However, it later withdrew this announcement after realising that it had made a mistake and that the contracts were not new orders. It stated:

DroneShield advises that the November Contracts do not represent new orders. The November Contracts were orders that were reissued by the customer due to regulatory updates. The November Contracts were previously issued to DroneShield this year. One of the November Contracts was previously announced by DroneShield to the ASX on 17 September 2025.

And during 6 and 12 November 2025, several executives were selling DroneShield shares through on-market trades.

It is unclear if any of these sales were made during the short window between the release of the announcement and its withdrawal. And that may be the reason why ASIC is looking into the company today.

With respect to action, DroneShield revealed that it doesn’t know what may come of the investigation. It advised:

It is not clear what action, if any, may result from ASIC’s investigation.

The post DroneShield shares crash 16% on ASIC investigation 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 positions in and has recommended DroneShield. 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.

CSL Ltd (ASX: CSL) shares are continuing to slide after yesterday’s brutal sell-off.

At the time of writing, the CSL share price is down another 3.75% to $96.97.

That follows Monday’s huge plunge, when the healthcare giant fell more than 20% to as low as $93.64 after a disappointing update.

That was a near-decade low for the stock. The last time CSL shares were trading around this price was November 2016.

CSL shares are now down around 44% in 2026 and almost 59% over the past year.

So, how much worse can this get?

Another guidance cut hurts confidence

The latest damage came after CSL released its interim CEO 90-day review and financial update on Monday.

In that update, CSL said its growth plans are working, but the financial benefits are taking longer than previously expected.

The company now expects FY26 revenue of around US$15.2 billion. It also expects NPATA, excluding restructuring costs and impairments, of around US$3.1 billion.

CSL also expects to recognise about US$5 billion of additional non-cash, pre-tax impairments across FY26 and FY27. These are mainly tied to CSL Vifor’s intangible assets and property, plant, and equipment.

Investors clearly did not like the update, with CSL shares heavily sold off on Monday.

The size of the impairment is also hard to ignore. According to The Australian, the charge is likely to be the third largest in ASX history, behind Rio Tinto Ltd (ASX: RIO)’s US$20 billion Alcan write-down and BHP Group Ltd (ASX: BHP)’s US$15 billion shale write-down.

Brokers are also cutting numbers

Unfortunately, the market reaction has not been kind.

Broker cuts have followed quickly today. Citi reportedly slashed CSL shares to neutral with a $110 price target, while Jarden cut the stock to neutral with a $191 target. Canaccord also cut CSL shares to hold with a $106.31 price target.

Some analysts still see value after the sell-off. But the market is clearly less confident about CSL’s earnings path than it was a week ago.

The chart still looks bad

From a technical view, CSL shares remain under heavy pressure.

The stock broke below $100 on Monday and is now trading close to yesterday’s low of $93.64. That makes the low the nearest support level to watch.

If that level breaks, the next round number investors will likely focus on is $90.

On the upside, $100 is now the first obvious resistance level. Monday’s close at $100.75 may also matter because sellers have already pushed the stock back below it today.

The relative strength index (RSI) is also sitting near 11, which tells us that the stock is very much oversold.

Foolish Takeaway

CSL is still the ASX’s biggest healthcare company with a market cap of around $46.5 billion. But that’s not enough to stop investors selling.

The market is dealing with repeated downgrades, a major Vifor write-down, weaker earnings expectations, and a share price that keeps making fresh lows.

At some point, the fall may bring bargain hunters back in. But right now, it looks like CSL shares are trying to find a floor.

The post How low can CSL shares go? appeared first on The Motley Fool Australia.

More reading

• Down 63%: Should you finally give up on CSL shares?
• What are experts saying about these shares hitting 52-week lows 
• 5 things to watch on the ASX 200 on Tuesday
• Why ANZ, CSL, Dateline, and DroneShield shares are sinking today
• Why the ASX 200 is being smashed today

Citigroup 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 positions in and has recommended CSL. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) dividend shares, including National Australia Bank Ltd (ASX: NAB) and property developer Stockland Corp Ltd (ASX: SGP), could be among the winners of Treasurer Jim Chalmers’ federal budget proposals.

Chalmers will reveal the details of Labor’s upcoming 2026-27 federal budget this evening.

Among the bigger shakeups ASX investors are facing is the expected axing of the 50% capital gains tax (CGT) discount currently applied to investments that are sold after being held for more than a year. Investors will instead get credit in line with inflation.

This could have a material impact on investor interest in ASX 200 dividend shares like NAB and Stockland, as franking credits (often applied to dividends) are not expected to be impacted.

Instead, investors will face a bigger hit when they sell ASX growth stocks that have posted sizeable share price gains outpacing inflation.

Changing the investing equation

Commenting on the potential CGT shakeup that looks to favour ASX 200 dividend shares over high-growth tech and medical stocks, Jacki Neumann, head of capital markets at Sharesies, said:

Reform of the 50% CGT discount changes the equation for growth investors in particular. While a move toward an indexation framework aims for a more equitable environment, it creates a threshold where the tax benefits of indexation diminish once an asset’s growth significantly outpaces inflation.

This shift invites a recalibration of risk, where investors will need to weigh their appetite for high-growth assets against the more predictable returns of income-generating investments.

Advantage ASX 200 dividend shares

UBS equities strategist Richard Schellbach also expects the proposed CGT changes will favour the likes of NAB, Stockland, and other quality ASX 200 dividend shares in the banking and real estate sectors over high-growth stocks.

“Usually, budgets have little impact on the equity story. However, these speculated tax changes could matter in terms of altering incentives and shifting flows,” Schellbach said (quoted by The Australian Financial Review).

Noting that ASX stocks with strong capital gain potential are likely to become less attractive following the CGT changes, Schellbach pointed to both Stockland and NAB as potential beneficiaries.

NAB shares trade on a fully-franked dividend yield of 4.6%, while Stockland shares trade on an unfranked dividend yield of 6.8%.

As for other ASX 200 dividend shares that could gain from the new federal budget, Schellbach indicated Bank of Queensland Ltd (ASX: BOQ), rail-based transport company Aurizon Holdings Ltd (ASX: AZJ), energy infrastructure company APA Group (ASX: APA), and shopping mall owner Vicinity Centres (ASX: VCX).

The post How Chalmers’ budget tips the scales for ASX 200 dividend shares like Stockland and NAB 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 positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Former Federal Treasurer Peter Costello will join the board of Helloworld Travel Ltd (ASX: HLO), the company announced today.

Deep level of experience

Helloworld said in a statement to the ASX on Tuesday that Mr Costello would join the board on June 1.

The company added:

Mr Costello has an extraordinary amount of experience at government, financial and commercial levels including over 11 years as Treasurer of the Commonwealth of Australia, Chair of the Independent Advisory Board to the World Bank, a decade as Chair of Australia’s Future Fund (which he established as Treasurer), Chair of Nine Entertainment Group alongside many other significant roles.

Helloworld Chief Executive Officer Andrew Burnes said he looked forward to working with Mr Costello, who will join as an independent, Non-Executive Director.

Shares looking cheap

Shaw and Partners’ most recent update on Helloworld said their analysis of Australian Bureau of Statistics (ABS) Overseas Arrivals and Departures data for February 2026 boded well for the company, with Departures up 8.5% for the financial year to that date.

They added:

Preliminary data for March 2026 was quite solid showing departures for the month up 13.2% versus the previous corresponding period. We retain our buy rating on Helloworld with an unchanged price target of $2.80 per share.

Helloworld launched a takeover bid for fellow travel company Webjet Group Ltd (ASX: WJL) in November last year; however, following due diligence, Helloworld did not present a bid that the Webjet board could recommend, and talks ceased in mid-February.

Strong results

In its most recent results for the half year, Helloworld said it had booked total transaction volumes of $2.1 billion for the half, “with strong forward bookings for the remainder of FY26 and well into FY27”.

Mr Burnes said at the time:

Helloworld Travel Limited delivered a solid performance in the first half, underpinned by continued investment in the business. We progressed the expansion of our retail networks, our technology offering and wholesale product range, while further strengthening our core capabilities in air ticketing and consolidation. Helloworld remains the largest network of independent travel agents and brokers across Australia and New Zealand. We continue to leverage our scale, industry expertise and strong partner relationships to drive sustainable long‑term growth. During the period, we completed multiple strategic acquisitions that have contributed positively to the Group’s financial performance. We are pleased to report a strong first‑half result and the declaration of a fully franked dividend of 5.0 cents per share.

At the time, the company reiterated its underlying EBITDA guidance of $64 to $72 million.

Helloworld shares were 1.1% higher on Tuesday morning at $1.45. The shares have traded as high as $2.10 and as low as $1.30 over the past 12 months.

The company is valued at $234.9 million.

The post Which former Treasurer has joined this ASX travel company’s board? appeared first on The Motley Fool Australia.

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

Centuria Industrial REIT (ASX: CIP) shares are edging lower on Tuesday morning.

At the time of writing, the ASX stock is down slightly to $2.93, broadly in line with weakness across the ASX 200 index.

What did this ASX 200 stock announce?

Centuria Industrial REIT released its third quarter operating update this morning.

According to the release, the ASX 200 stock has exchanged contracts on four divestments totalling $188 million, at an average 17% premium to prior book value.

These sales include the 67-69 Mandoon Road asset in Girraween for $98 million, the completed 50-64 Mirage Road development in South Australia for $50 million, and two smaller properties in Edinburgh and Epping.

Once completed, the divestments are expected to reduce gearing by approximately 3%.

Development gains

A standout from the update was the sale of the 50-64 Mirage Road development in Direk, South Australia.

The project reached practical completion during the quarter and was sold to an owner-occupier for $50 million.

Management said this represented a 33% premium to total project costs and delivered an internal rate of return of approximately 25% for unitholders.

Centuria also noted progress across several other developments, including recently completed projects in Derrimut, Victoria and Direk, South Australia.

Leasing momentum

Leasing activity also remained positive during the quarter.

The ASX 200 stock agreed lease terms across approximately 14,400 square metres during the period.

For FY 2026 to date, re-leasing spreads averaged 36%, reflecting the under-rented nature of parts of the portfolio and continued demand for industrial property in infill locations.

Data centre opportunities

Centuria Industrial REIT also revealed that it has continued to progress potential data centre opportunities across its portfolio.

During the quarter, it settled the acquisition of a data centre in Wellcamp, Queensland, as well as a strategic asset in Yarraville, Victoria, located near major power infrastructure.

Management also pointed to a potential 40MW data centre opportunity adjacent to its existing Clayton Data Centre in Victoria.

The company said it remains open to potential capital partners, joint ventures, or a demerger of data centre assets to unlock value.

Guidance reaffirmed

The ASX 200 stock has reaffirmed its upgraded FY 2026 funds from operations guidance range of 18.2 cents per unit to 18.5 cents per unit.

It also maintained distribution guidance of 16.8 cents per unit for the year.

Speaking about its outlook, the company’s fund manager, Grant Nichols, said:

Looking ahead, we foresee the domestic infill industrial market’s supply-demand imbalance to persist with limited construction of new warehouses coupled with consistently high occupier demand as tenants look to strengthen their delivery times and reduce transport costs.

Current macroeconomic uncertainty, resultant of the Middle East conflicts and global oil constraints, is impacting inflation and construction price pressures. These factors are expected to curtail future industrial market supply. The value of high-quality, existing infill industrial assets is expected to increase as the disconnect to replacement cost continues to escalate.

The post What’s going on with this ASX 200 stock today? 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.

Woodside Energy Group Ltd (ASX: WDS) and ANZ Group Holdings Ltd (ASX: ANZ) shares have both smashed the 5.1% 12-month returns delivered by the S&P/ASX 200 Index (ASX: XJO).

In morning trade today, Woodside shares are changing hands for $30.77 apiece. That sees the ASX 200 energy stock up a whopping 47.9% since this time last year, spurred by the company’s own operational successes alongside surging global oil and gas prices.

And that strong performance does not even include dividends. Atop those capital gains, Woodside shares trade on a fully-franked 5.4% trailing dividend yield.

You’re also unlikely to hear longer-term ANZ stockholders complaining.

ANZ shares are trading for $35.21 at the time of writing on Tuesday. This puts the ASX 200 bank stock up 20.7% over 12 months. And ANZ also pays twice yearly dividends, with the big four bank stock trading on a partly franked 4.7% trailing dividend yield.

If you owned ANZ shares at market close last Friday, you can expect to receive the 83 cents per share interim dividend payout (franked at 75%) on 1 July. ANZ traded ex-dividend yesterday.

But following on this strong run, Sanlam Private Wealth’s Remo Greco believes investors would do well to consider locking in some profits (courtesy of The Bull).

Here’s why.

Time to take profits on ANZ shares?

“The bank delivered a cash profit of $3.780 billion in the first half of 2026, up 14%, excluding significant items, on the second half of 2025,” Greco said of the H1 results ANZ reported on 1 May.

He added:

Return on equity was up 149 basis points. The company posted an interim dividend of 83 cents a share, with franking increased to 75%. The company’s share price has performed well in the past 12 months.

Explaining his sell recommendation on ANZ shares, Greco noted:

Our concern is higher interest rates potentially increasing provisions as mortgage and credit card holders struggle to meet increasing repayments in a weaker economy. It may be prudent to trim holdings and take some profits.

Are Woodside shares a sell today?

Atop recommending taking profits on ANZ shares, Greco also foresees potential headwinds building for Woodside’s outperforming shares.

“The energy company produced a record 198.8 million barrels of oil equivalent in full year 2025,” he said. “However, production was offset by lower realised prices.”

Greco concluded:

Consequently, net profit after tax of $2.718 billion was down 24% on the prior corresponding period. Full year fully franked dividends were down 8%.

In our view, relying on dividends carries risk if commodity prices or production fall. Investors may want to take advantage of elevated crude oil prices to cash in some gains.

The post Sell alert! Why this expert is calling time on Woodside and ANZ shares 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.

The Pinnacle Investment Management Group Ltd (ASX: PNI) share price has seen its fair share of pain within the past couple of years, dropping 36%, as the below chart shows. It could be a compelling choice for passive income at today’s valuation.

This company takes stakes in funds management businesses (affiliates) and helps them grow. Pinnacle says it’s a high-quality, scalable multi-affiliate platform compounding earnings and dividends through cycles.

It’s invested in 19 affiliates across public and private markets, spanning asset classes, investment styles and geographies. These affiliates have a long-term track record of delivering sustained outperformance over their benchmarks.

Strong long-term growth

I think it’s important not to lose sight of long-term performance, particularly if the business has been afflicted by short-term volatility. Over time, the market should realise the company is a high-performer and is delivering strong underlying growth.

In the five years to 30 June 2025, the company delivered a compound annual growth rate (CAGR) of 33% for net profit after tax (NPAT), 28% for earnings per share (EPS), and 31% for dividends per share.

The ASX share reported that it achieved aggregate affiliate funds under management (FUM) of $208.1 billion at 31 March 2026. That’s 2.9% growth since 31 December 2025 and 16% growth since 30 June 2025.

Plus, 31 March 2026 was a low point for the global share market – it has risen by high single digits since then (in percentage terms), so it looks like another strong financial year for FUM growth.

In the three months to 31 March 2026, aggregate affiliate FUM net inflows came to $9.4 billion, including $1.6 billion of Australian retail net inflows, $5.2 billion of international net inflows and $2.6 billion of Australian institutional net inflows.

I think it’s a great time to invest when there’s market volatility because fund managers are exposed to market declines, but then they benefit strongly when the market eventually recovers.

The long-term investment performance of the funds and the ongoing net inflows are a great sign for further earnings growth.

Great option for passive income

As I’ve mentioned, the business has delivered excellent dividend growth this decade, and I think it has great potential to increase its dividend significantly by 2030.

Based on the latest two dividend payments, it has a grossed-up dividend yield of around 4.75%, including franking credits. I think it’s likely to continue growing in the coming years.

According to the projection on Commsec, the business is forecast to pay an annual dividend per share of 83 cents in FY27. If the business delivers that payout, it would be a grossed-up dividend yield of more than 7%, including franking credits, at the time of writing.

I think this is a great time to invest for the long-term in the ASX share.

The post A 7% yield but down 36%! Is it time for me to buy this ASX share to earn passive income? appeared first on The Motley Fool Australia.

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

Shape Australia Ltd (ASX: SHA) shares are trading higher after the fit-out and construction services company released a strongly positive update to the market.

Records tumbling

The company said in a statement released to the ASX that its project wins had hit a record high of more than $1.16 billion as at the end of April, “significantly exceeding the FY25 full-year result of $981.6 million”.

Shape said it expected revenue to be between $1.175 and $1.225 billion, up 22.8% of FY25 revenue.

Net profit was also expected to surge, with it forecast to come in at $30 to $32 million, up from $21.2 million in FY25.

The company also said it had a strong forward pipeline of about $4.2 billion worth of work, “providing significant visibility into FY27 and beyond”.

Shape said in its statement that its strategy to grow in new sectors was paying off, with revenue from the education sector coming in at 22% of the whole this year, up from 12%, “largely underpinned by our modular operations”.

Data centre revenue had grown from less than 1% in FY25 to more than 10%, “driven by increased market activity in the Data Centre refurbishment market”.

Shape Chief Executive Officer Peter Matrix-Evans said regarding the update:

Shape is again delivering strong performance across key financial and operational metrics in FY26, continuing to drive results for our shareholders. Our resilient business model, with a strong weighting towards shorter-duration projects, combined with our focus on maintaining a shared risk profile with both our supply chain and clients, minimises potential impacts from cost escalation pressures. In addition, our strong and diversified pipeline of more than $4.2 billion enables SHAPE to remain selective, pursuing only the highest-quality opportunities and underpinning our continued growth trajectory into FY27. Through our deliberate sector and capability diversification strategy, SHAPE continues to strengthen its project portfolio while building the foundation for improved margins as we scale.

Shape also increased its headcount by 12% year on year to more than 850 people.

Analysts like what they see

Shaw and Partners’ most recent research note on Shape came with a buy recommendation and suggests there could be share price upside from the current levels of $7.05, up 5% on Tuesday.

The Shaw team said the company had done a good job of diversifying its work streams.

Aided by acquisitions, Shape has diversified its sector exposure into more resilient sectors including healthcare, defence, education, hospitality, and retail, and has expanded into solutions that capture more of the project lifecycle such as design & build and aftercare/facilities maintenance. This strategic shift contributed to its impressive financial results.

Shaw said Shape had a market-leading position in high margin fit out and a strong pipeline and net cash position.

The Shaw team in March upgraded their price target on Shape shares from $7.40 to $8.25 per share.

Shape also pays a fully-franked dividend yield of 3.94%.

The post With a record order book this ASX small cap is surging higher appeared first on The Motley Fool Australia.

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