Category: Stock Market

ASX industrials stock Southern Cross Electrical Engineering Ltd (ASX: SXE) is in focus after its share price rose 14.69% yesterday. 

It is made up of a group of companies that provides electrical, instrumentation, communications, security and maintenance services to a diverse mix of customers.

Investors were gobbling up this ASX industrials stock after its H1 FY26 results yesterday. 

What did the company report?

Included in yesterday’s results was: 

• Underlying EBITDA of $35.4m up 30.8% and Underlying EBIT of $29.1m up 25.5% respectively on then record prior corresponding period
• Gross profit for the period of $65.9m was a record half-year result and was up 30.3% on the prior corresponding period
• WestConnex arbitration settled resulting in legal dispute costs of $46.1m
• NPAT loss of $12.8m
• Revenue for the half-year was $349.1m, down 12.2% on the prior corresponding period revenue of $397.4m
• Fully franked 2.5 cps interim dividend declared. 

The company also released updated FY26 guidance. 

The board increased Underlying FY26 EBITDA guidance to at least $72m, up 31% on FY25 EBITDA, and expects further growth in future years.

Commenting on the half year results, SCEE Group Managing Director Graeme Dunn said:

I am pleased we have been able to raise our guidance for FY26 as we enter the second half of this financial year with a near-record order book. We are facing an unprecedented pipeline of data centre projects that we are tendering for now which anchors our expectations of further growth beyond FY26.

What did Bell Potter say?

Following the result, the team at Bell Potter released updated guidance on this ASX industrials stock. 

The broker said the increasingly integrated business across services and product offerings is enabling the Group to capture a greater share of contract awards, sub-contracting fewer scopes.

SXE highlighted an unprecedented acceleration in Data Centre infrastructure investment, which has enhanced tendering opportunities. 

The Data Centre project pipeline now stands at >$1,000m across the Group (up from $500m at the FY25 result). Increased momentum across other end-markets have given the company confidence in its expectation of further growth beyond FY26.

Price target upgrade

Included in the report was a buy recommendation (upgraded from hold). 

Additionally, Bell Potter raised its price target to $3.70 for this ASX industrials stock (previously $2.35). 

From yesterday’s closing price of $3.28, that indicates an upside of 12.8%. 

Increasing momentum in SXE’s secular drivers including data centre construction and renewable energy development has enhanced the company’s short-to-medium outlook. Strategic acquisitions completed over the past 5 years have broadened the Group’s capabilities and enhanced its leverage to these increasingly bullish drivers.

The post This ASX industrials stock just jumped 15% higher and is expected to keep rising appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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 Southern Cross Electrical Engineering. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

TechnologyOne Ltd (ASX: TNE) shares were on fire on Wednesday.

Following the release of an update, the ASX 200 tech stock rose 8% to end the day at $23.50.

But if you thought that was where the gains end, think again. That’s because Bell Potter has turned bullish on the stock and is tipping it to continue its rise.

What is the broker saying?

Bell Potter was pleased with TechnologyOne’s update, which included an upgrade to its guidance for FY 2026. It said:

Technology One held its AGM today and unusually provided both PBT and ARR guidance for the full year (this is usually provided at the release of the H1 result in May). The guidance for FY26 is: PBT growth of 18-20% (vs BPe 19.9% and VA consensus 17.0%); and ARR growth of 16-18% (vs BPe 17.5% and VA consensus 15.8%). The company also said “we are targeting the top end of the guidance range for both PBT and ARR.”

Technology One also provided guidance on the H1/H2 PBT split and said H1 PBT growth is expected to only be “high single digit percentage” due to an $8-9m investment in the biannual Showcase events in H1. But the H2 PBT “will be strong, delivering the full-year step-up consistent with guidance of 18-20%”. No guidance was provided on the H1/H2 ARR split suggesting more consistent growth.

Time to buy this ASX 200 tech stock

In response to the update, the broker has upgraded the ASX 200 tech stock to a buy rating with a trimmed price target of $29.00 (from $33.00).

Based on its current share price of $23.50, this implies potential upside of 23% for investors over the next 12 months.

It also expects a modest dividend yield of 1.4% in FY 2026.

Commenting on its buy recommendation, Bell Potter said:

We have reduced the multiples we apply in the PE ratio and EV/EBITDA valuations from 65x and 35x to 55x and 30x given the recent sell-off in the tech sector. We have also increased the WACC we apply in the DCF from 8.1% to 8.4% due to an increase in the risk-free rate from 4.25% to 4.5%. The net result is an 11% decrease in our target price to $29.00 which is >15% premium to the share price so we upgrade our recommendation to BUY.

The risk to our upgrade is now a lack of catalysts and even the H1 result in May may not provide one given the PBT growth will only likely be high single digit. But we do expect the company to reiterate the guidance at the result and this confidence or visibility in the H2 outlook we expect to be well received.

The post Bell Potter just upgraded this ASX 200 tech stock and is tipping a 20%+ return appeared first on The Motley Fool Australia.

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

Are you hunting for new investment ideas? If you are, it could be worth listening to what Morgans is saying about the ASX shares in this article.

Does it rate them as buys, holds, or sells? Let’s find out:

JB Hi-Fi Ltd (ASX: JBH)

Morgans notes that retail giant JB Hi-Fi delivered a solid half-year result, which was largely in line with expectations. It was also pleased to see that margins were well-managed.

However, with January starting slowly and management sounding cautious, it has put a hold rating on JB Hi-Fi’s shares with a reduced price target of $87.00. It said:

JBH delivered a solid result, which was broadly in line with expectations. Sales were robust (+7.3%) driven by continued demand for consumer electronics and home appliances and executed well during key promotional sales events. Margins were well managed, resulting in EBIT growth of +8.1% yoy.

Trading in January has slowed from the 2Q, with management noting a cautious outlook given the retail market uncertainty and continued competitive environment. We have upgraded to a HOLD (from TRIM), and look for any weakness as a buying opportunity for this high quality retailer. Our target price falls from $95 to $87.

New Hope Corporation Ltd (ASX: NHC)

This coal miner’s half-year results weren’t too bad considering recent coal price weakness. Another positive is that Morgans believes that the company is positioned to achieve the top end of its New Acland 3 guidance range.

However, it is not enough for anything but a hold rating (down from accumulate) with an improved price target of $5.00. The broker explains:

Delivered underlying, unaudited EBITDA of $106.9 million in 2Q26, bringing 1H26 EBITDA to $214.8 million despite weakness in coal prices. NHC delivered a 2Q that positions it to ramp up its Bengalla operation to its 13.4Mtpa ROM coal production run rate in 2H26 and achieve upper end of New Acland 3 guidance range. We rate NHC a HOLD (previously ACCUMULATE) with a target of A$5.00ps (previously $4.55ps).

Qualitas Ltd (ASX: QAL)

Finally, this alternative investment company’s performance was positive thanks to residential and private-credit tailwinds.

And with its shares pulling back recently, the broker sees value on offer here. As a result, Morgans has retained its accumulate rating and $3.80 price target on its shares. It said:

QAL’s 1H26 result shows a platform accelerating on deployment, benefiting from both residential and private-credit tailwinds, and converting scale into higher recurring revenue, stronger margins and growing performance fees. This has seen Fee Earning FUM (FEF) increase 38% (vs pcp), while record deployment (+57% vs pcp) was largely driven by repeat borrowers (76%).

The continued demand for QAL’s funds resulted in higher quality result, with recurring base management fees +28% (yoy) and loan transaction fees up +69% (yoy). Running contrary to the strong operational performance, QAL’s share price has declined 14% over the past three months as sector multiples moderated. In light of this share price moderation we retain an Accumulate recommendation with a $3.80/sh target price.

The post Buy, hold, sell: JB Hi-Fi, New Hope, and Qualitas shares 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.

Catalyst Metals Ltd (ASX: CYL) shares have absolutely smashed the market over the past 12 months.

During this time, the ASX 200 gold stock has risen by a sizeable 80%.

Incredibly, despite this outperformance, Bell Potter believes that even greater returns could be on the cards for investors over the next 12 months.

What is the broker saying?

Bell Potter notes that the gold miner has announced an agreement with Star Minerals Ltd (ASX: SMS) and Albright Metals Ltd (ASX: ABR) to acquire gold tenements in the Bryah Basin. It said:

CYL announced it has entered into binding agreements with Star Minerals Ltd (ASX:SMS; not rated) and Albright Metals Ltd (ASX:ABR; not rated) to acquire ~1,100 km² of Bryah Basin tenements, expanding its position to >2,280 km² and creating an ~190 km contiguous land package adjoining the Plutonic Belt.

The Bryah Basin tenure lies on the SW edge of CYL’s existing Plutonic operations and is directly connected to the Plutonic processing plant via a 70 km haul road. As part of the transaction with SMS, CYL has agreed to toll treat up to 250kt of SMS ore over two years. CYL will pay a total $4.55m in cash/scrip; funded through existing cash ($238m at 31 December 2025). CYL has also agreed to a A$1m placement in SMS shares.

The broker is a fan of the deal and believes it will strengthen the ASX 200 gold stock’s ability to create a sustained 10-year, ~200,000 ounces per annum production base. It adds:

The Bryah Basin acquisitions meaningfully advance CYL’s long‑term strategy to build a scaled, multi‑mine gold operation anchored around Plutonic. The consolidation of the historically fragmented Bryah Basin tenure, combined with immediate logistical, operational and processing synergies with near‑term toll‑treating income, strengthens CYL’s ability to create a sustained 10yr/ ~200 koz pa production base.

The expanded footprint enhances exploration optionality in one of WA’s most prospective but under‑explored districts that hosts major deposits, reinforcing CYL’s position as the dominant landholder and regional consolidator in the Bryah–Plutonic corridor.

ASX 200 gold stock tipped to rocket

According to the note, the broker has retained its buy rating on Catalyst Metals’ shares with an improved price target of $14.60 (from $13.50).

Based on its current share price of $7.61, this implies potential upside of 92% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter concludes:

CYL continues to build the Plutonic portfolio with the Bryah tenure, providing competitive advantage through the exploration upside and potential for long-term resource optionality. After factoring in the 250ktpa toll treatment agreement, lower processing unit costs, transactions costs and gold price adjustments, we are raising our Target Price to $14.60 and maintain our Buy recommendation.

The post Guess which ASX 200 gold stock could rocket 90% more 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.

Most investors spend a lot of time thinking about when to buy. Far fewer think about what happens if they simply don’t sell.

It is tempting to check your ASX share portfolio constantly, react to headlines, or try to time market cycles. But some of the most powerful wealth creation stories come from doing very little at all.

So, what might that look like with $10,000?

Aiming for a 10% return

Over very long periods, share markets have delivered average annual returns in the high single digits to low double digits. A 10% per annum return is not guaranteed in any given year, but it is broadly in line with long-term historical averages.

On the ASX, this type of return could potentially be achieved by owning high-quality ASX shares such as Goodman Group (ASX: GMG), ResMed Inc. (ASX: RMD), or REA Group Ltd (ASX: REA), all of which have strong competitive advantages and global exposure.

Alternatively, broad-based ETFs such as the iShares S&P 500 ETF (ASX: IVV) or the Vanguard MSCI International Shares ETF (ASX: VGS) have historically delivered similar long-term returns by tracking diversified global markets.

The key isn’t chasing short-term spikes. It is staying invested in businesses or funds that can compound earnings over decades.

Compounding with ASX shares over 20 years

Now let’s come back to the original question. If you invested $10,000 and achieved an average return of 10% per year, and left it untouched for 20 years, how much would it be worth?

After 10 years, your investments would grow to be worth approximately $26,000.

Then, after a total of 20 years, your ASX share portfolio would have a market value of approximately $67,000.

That’s without adding another dollar.

The reason is compounding. In the early years, growth feels modest. But as the portfolio gets larger, each 10% gain adds more dollars than the year before. Over two decades, those gains begin to stack up in a meaningful way.

Why most investors don’t see this outcome

The maths is simple. The behaviour is not.

Many investors interrupt compounding by selling during downturns, shifting strategies mid-cycle, or trying to outsmart the market. Even a few poorly timed decisions can dramatically reduce long-term returns.

Leaving an investment alone for 20 years requires patience and confidence in the underlying assets. That means focusing on businesses with durable competitive advantages, strong balance sheets, and long growth runways.

Foolish takeaway

Investing $10,000 and leaving it untouched for 20 years may not sound exciting. But at a 10% average annual return, it could turn into roughly $67,000, without any additional contributions.

The lesson isn’t about predicting the next hot stock. It is about time in the market, not timing the market. For long-term investors, patience can be more powerful than any short-term strategy.

The post What happens if you invest $10,000 in ASX shares and leave it alone for 20 years? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Goodman Group, REA Group, and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, ResMed, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Goodman Group, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This ASX healthcare share has caught fire recently. Imricor Medical Systems Inc (ASX: IMR) has surged 52% over the past 12 months.

On Wednesday the ASX small-cap healthcare stock gained another 7.8% at $2.20, bringing this year’s gain to 44%.

Investors are clearly backing what the ASX healthcare share is building in a US$10 billion market. And is there more to come?

Global first in cardiac care

Imricor has been carving out a few global firsts in cardiac care recently. The US-based medical technology business focuses on MRI-guided cardiac ablation and claims to be the first to deliver commercially viable MRI-compatible consumables for these procedures.

Last month the ASX healthcare share announced that its NorthStar Mapping System is the first MRI-native 3D mapping and guidance system cleared by the FDA. It also marks Imricor’s first capital equipment and first software-driven approval in the US.

This wasn’t an overnight win. Imricor says NorthStar’s FDA clearance caps years of R&D, third-party collaboration, and regulatory heavy lifting. The system is built to anchor every interventional cardiac MRI (iCMR) lab as its central hub.

Multiple clearances expected

Crucially, FDA approval opens the door to commercial sales of NorthStar in the United States — the world’s largest electrophysiology market. And the pipeline isn’t slowing.

Management expects multiple regulatory clearances this year as it rolls out its full MRI-guided electrophysiology platform. Investors in the ASX healthcare share are eagerly awaiting what management will reveal on 25 February when it delivers its second-half 2025 results.

Management said NorthStar’s clearance was the company’s second FDA win. It followed 510(k) approval for the VisionMR Diagnostic Catheter earlier in January. The approval further cements Imricor’s push to lead the MRI-guided interventional market.

Technology that matters

The innovations of the ASX healthcare share matter. Traditional ablation relies on X-ray guidance. Imricor’s iCMR platform lets doctors see the heart in real time using MRI.

That means better soft tissue visibility, no radiation exposure, and potentially better outcomes. If adoption builds, MRI-guided ablation could shift from niche to standard practice.

What next for the ASX healthcare share?

In March last year, the medical company raised $70 million to fund global expansion, commercial growth and R&D. Imricor isn’t thinking small. It is rolling out across four key regions: the US, Australia and New Zealand, the Middle East, and Europe, where it holds CE Mark approval.

It’s expanding into Germany, the Netherlands, France and Italy, running more US trials to secure FDA clearance, and has already signed exclusive distribution deals in the Middle East, including first sales in Qatar.

Analyst coverage is limited. TradingView data show that 3 brokers rate the $660 million ASX healthcare a strong buy. They have set an average 12-month price target of $2.49, which points to a 13% upside.

The most bullish analyst sees a possible gain of 26% for the next 12 months.  

The post Is there no stopping this groundbreaking ASX healthcare share? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in Imricor Medical Systems. 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 Wednesday, the S&P/ASX 200 Index (ASX: XJO) was on form again and pushed higher. The benchmark index rose 0.55% to 9,007 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set for another good session on Thursday following a relatively positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 46 points or 0.5% higher this morning. In late trade in the United States, the Dow Jones is up 0.3%, the S&P 500 is up 0.6%, and the Nasdaq is 1% higher.

Rio Tinto results

Rio Tinto Ltd (ASX: RIO) shares will be on watch today when the mining giant releases its eagerly anticipated full-year results. According to a note out of Morgans, its analysts expect the miner to report a 4.3% increase in revenue to US$55.96 billion and a 13.8% lift in EBITDA to US$26.54 billion. This is expected to underpin total dividends of US$4.54 per share, which will be a 13.6% increase year on year. The broker said: “Supported by a solid Q4 operationally, and rising metal prices, RIO is positioned for a healthy FY25 result, although this appears at least partly factored in given recent share price support.”

Oil prices jump

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a very good session on Thursday after oil prices stormed higher overnight. According to Bloomberg, the WTI crude oil price is up 4.5% to US$65.17 a barrel and the Brent crude oil price is up 4.3% to US$70.33 a barrel. This was driven by reports that Iran has ignored key US demands.

Buy TechnologyOne shares

TechnologyOne Ltd (ASX: TNE) shares are good value according to analysts at Bell Potter. This morning, the broker has upgraded the enterprise software provider’s shares to a buy rating with a trimmed price target of $29.00 (from $33.00). It said: “The risk to our upgrade is now a lack of catalysts and even the H1 result in May may not provide one given the PBT growth will only likely be high single digit. But we do expect the company to reiterate the guidance at the result and this confidence or visibility in the H2 outlook we expect to be well received.”

Gold price rises

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session on Thursday after the gold price raced higher overnight. According to CNBC, the gold futures price is up 2.1% to US$5,010.6 an ounce. Traders were buying the precious metal ahead of the release of US Federal Reserve meeting minutes and in response to rising Iran-US tensions.

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

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

The All Ordinaries Index (ASX: XAO) has gone from strength to strength so far in 2026 as strong earnings results and improving investor confidence continues to drive many ASX shares higher. 

But there are some ASX shares which are tipped to travel in the other direction, with analysts tipping downsides of 30% (or more) over the next 12 months.

Helia Group Ltd (ASX: HLI)

Helia shares closed higher on Wednesday afternoon, up 3.05% to $5.75 a piece. The share price is now 3.6% higher for the year-to-date and 15.23% higher over the year, albeit with significant peaks and troughs along the way.

Analysts are bearish on the ASX stock, with many tipping more volatility ahead for the currently-overpriced stock. Analysts have a consensus sell position on Helia shares, with a target price of $3.95 a piece. That implies a 31.30% downside at the time of writing. 

Dominos Pizza Enterprises Ltd (ASX: DMP)

Domino’s shares closed 1.6% higher on Wednesday afternoon at $21.60 a piece. It’s positive news for investors after the share price plunged 8% earlier last week following news of a leadership shakeup. 

Last Wednesday, the company announced it had appointed Andrew Gregory as its incoming Group Chief Executive Officer and Managing Director.

The news has come right before the pizza chain is due to report its half-year result, which is due on 25 February 2026.

For the year-to-date, Domino’s shares are down 1.01%, and 33.92% below where they were this time last year.

Analysts are split on where the shares could travel from here. TradingView data shows that out of 17 analysts, six have a hold rating. Another five have a buy or strong buy rating, and six have a sell or strong sell position. 

The average target price is $20.89, which implies a 3.29% downside at the time of writing. But then some analysts think the shares could sink even further to just $13.00 a piece. That implies a 39.81% downside from the share price at the close of the ASX on Wednesday.

Boss Energy Ltd (ASX: BOE)

At the close of the ASX on Wednesday, Boss Energy shares were 3.45% higher for the day at $1.65 a piece. The hike means the shares are now 5.1% higher for the year-to-date but a whopping 46.08% below just one year ago.

The Uranium miner is heavily reliant on uranium prices, which skyrocketed in mid-January before crashing back down to normalised levels earlier this month after a fresh increase in global supply momentarily outweighed the view of soaring growing demand expectations that carried prices in recent quarters, Trading Economics explained. 

While analyst sentiment about the outlook of the stock is mixed, the majority of experts have a bearish stance. TradingView data shows that out of 16 analysts, seven have a sell or strong sell rating. Another five have a hold rating and four have a strong buy rating. 

The average target price is $1.725 per share, which implies a 4.55% upside at the time of writing. But the more bearish analysts think the shares could sink 39.39% to just $1 within the next 12 months. 

The post 3 ASX shares tipped to fall more than 30% in 2026 appeared first on The Motley Fool Australia.

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

Baby Bunting Group Ltd (ASX: BBN) and Seek Ltd (ASX: SEK) shares are in focus after both companies released important earnings results. 

On Tuesday, both companies reported earnings from 1H FY26. 

However it hasn’t been smooth sailing as both Baby Bunting and Seek shares fell yesterday. 

Following results, the team at Morgans released updated guidance. 

It seems the broker sees one as a clear buy. 

Let’s see what it had to say. 

Baby Bunting shares get slight decrease

For H1 FY26, Baby Bunting reported: 

• Total sales of $271.4 million, up 6.7% on the prior corresponding period
• Gross profit increased 10% to $111.4 million
• Net profit after tax (NPAT) came in at $5 million, up 4.1% on last year and in line with guidance.

Investors reacted positively to this news, with Baby Bunting shares up 10% since Monday.

However the team at Morgans seem to think investors should proceed with caution. 

The broker has reiterated its hold recommendation on the consumer discretionary stock, along with a slight price target decrease to $2.60 (previously $2.70). 

From yesterday’s closing price, this indicates an upside of 10.6%. 

BBN’s 1H26 pro-forma NPAT was up 4.1% yoy to $5.0m which was in the middle of guidance range ($4.5-$5.5m) driven by comps sales growth, gross margin expansion offset by higher costs. Nine stores have been refurbished to the new store design, and have performed strongly, sales up 25%, which is at the upper end of guidance range of 15-25%. FY26 NPAT guidance has been narrowed to $17.5-$19.5m (was $17-20m).

Seek shares have big upside

Morgans seems much more optimistic on Seek shares moving forward. 

The communications stock reported H1 FY26 results on Tuesday that included: 

• Sales revenue rose 21% to $647 million
• Net revenue up 12% to $601 million
• EBITDA increased 19% to $267 million
• Record fully franked interim dividend of 27 cents per share, up 13%. 

Its share price edged higher following this result, but Morgans believes there’s more room to run for Seek shares. 

Seek shares are still down more than 30% year to date.

The broker upgraded its rating to a buy, and kept its price target at $27.50. 

From yesterday’s closing price of $16.10, this indicates an upside of 70.8%. 

Whilst our DCF-derived price target remains unchanged at A$27.50 the recent sharp share price pullback now results in ~70% TSR upside.

We move to a Buy recommendation accordingly, though SEK has still many questions to answer on the AI threat.

The post Does this broker prefer Baby Bunting or Seek shares following earnings results? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

It never feels good to open your portfolio and see red everywhere.

This month, a number of ASX shares, particularly in the tech sector, have pulled back sharply. Some have fallen on the back of weaker-than-expected results. Others have simply been caught up in broader tech weakness and shifting sentiment.

When that happens, the instinct to react is strong. But in my opinion, this is exactly when discipline matters most.

Here’s how I think about it.

First, separate price from business performance

A falling share price does not automatically mean a broken business.

Sometimes results genuinely disappoint. Growth slows. Margins compress. Guidance is cut. In those cases, I think it’s important to revisit the original investment thesis and ask an honest question: has something structural changed?

But often, the move is more about expectations resetting than about long-term fundamentals deteriorating.

If revenue is still growing, customers are sticking around, balance sheets remain strong, and competitive advantages are intact, then a sharp pullback can be more about sentiment than substance.

I always go back to the basics. What did I believe about this business when I bought it? Is that still true?

If the answer is yes, then volatility alone is not a reason to sell.

Second, stay calm and avoid forced decisions

Big drawdowns create emotional pressure.

When you see a stock down 20%, 30%, or even more in a short period, it can feel like you need to do something. But acting purely to relieve discomfort is rarely a good strategy.

I try to avoid making portfolio decisions on my worst days emotionally. Instead, I give myself space to think clearly. Sometimes that means doing nothing for a few days while I reassess.

Markets move in cycles. Tech stocks, in particular, tend to overshoot in both directions. They can become overly loved during rallies and overly punished during sell-offs.

If your time horizon is measured in years rather than weeks, short-term volatility should be viewed in that context.

Third, consider buying more (carefully)

If the investment thesis remains intact and your position size is reasonable, a sharp sell-off can be an opportunity rather than a disaster.

I’m not suggesting doubling down recklessly. But if a high-quality business is now trading at a significantly lower valuation, and you were comfortable owning it before, I think it’s logical to at least consider adding more.

That said, position sizing matters. If a single stock has already grown to dominate your portfolio, averaging down may increase risk rather than reduce it. In that case, diversification or rebalancing might be more appropriate.

For me, the key question is whether the risk-reward has improved. Lower prices can mean higher future returns, but only if the underlying business still deserves your capital.

When selling ASX investments might make sense

There are times when selling is the right move.

If the competitive position has eroded, management credibility is damaged, or the business model no longer makes sense in the current environment, then holding purely out of hope can be costly.

Patience should not become stubbornness in my opinion.

But it’s important to distinguish between a broken narrative and a broken business. They are not the same thing.

Foolish takeaway

Market pullbacks, especially in the tech sector, are uncomfortable. I’ve felt it too, including with DroneShield Ltd (ASX: DRO).

But I try to remind myself that volatility is the price we pay for long-term returns.

If the fundamentals are intact, I believe patience is usually the right response. In some cases, buying more can make sense. In others, simply holding steady is enough.

The worst response, in my view, is panic. As long as the original investment thesis hasn’t been broken, staying calm and thinking long term is often the smartest move of all.

The post What to do if your ASX investments just crashed appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield. 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.