Category: Stock Market

A new report from Betashares has revealed the sectors and themes that are emerging in the current geopolitical climate. 

According to Tom Wickenden, Investment Strategist at Betashares, geopolitics is now a structural driver of asset prices.

The short-term threat is the hit to global growth and the inflationary pressure from higher oil prices.

Given the recency of the shock, its impact will only show up in hard economic data with a lag. Put simply, the longer the war runs, the greater the risk of global recession. Our base case assumption remains a timely de-escalation without a severe shock to the global economy.

In yesterday’s report, Betashares identified three ASX ETFs that could be ideal investments in today’s climate. 

Betashares Global Defence ETF (ASX: ARMR)

According to Betashares, global defence stocks have been among the best performing since the start of Trump’s second presidential term. 

In April of 2026 the US proposed a US$1.5 trillion defence budget for FY27. This is the largest in history and a 50% increase on FY26.

Across the Atlantic, Europe’s defence priorities are also accelerating. 

EU defence spending is projected to rise from €218 billion in 2021 to €392 billion in 2025.

The direction of travel is clear, and defence contractors globally could be structural beneficiaries and a potential hedge to geopolitical threats that can cause broader equity market disruption.

The Global Defence ETF from Betashares provides a simple way to gain exposure to the potential long term structural growth in the global defence sector.

It currently holds 13 of the top 20 defence contractors in the world by defence revenue. 

Betashares Global Uranium ETF (ASX: URNM)

The Betashares report said the Iran conflict has now re-ignited energy self-sufficiency concerns globally. 

As governments reassess their baseload power (the minimum level of electricity a grid needs around the clock) and seek to reduce dependence on hostile suppliers, nuclear energy has re-emerged as a cornerstone of the solution.

With nuclear increasingly recognised as essential for energy independence, decarbonisation and AI-driven electricity demand, the uranium supply chain may be entering a period where demand outpaces supply, which could favour producers in allied nations.

An ideal allocation for investors looking to target this theme is the Global Uranium ETF. 

It provides exposure to a portfolio of global companies involved in the mining, exploration, development and production of uranium. It also includes companies that hold physical uranium or uranium royalties.

Betashares Energy Transition Metals ETF (ASX: XMET)

Critical minerals, inputs essential for AI data centres, EVs, renewable energy and defence technology, are at the intersection of future technologies and geopolitics.

According to Betashares, renewed focus on diversifying away from Chinese dependence is leading to increased investment from Australia, the US and others. 

Both the US and Australia have established strategic mineral reserves, and the latest US defence budget dramatically expands investment in domestic critical mineral supply chains. Selected producers from allied nations, Australia, Canada, Peru and Chile, could be well positioned to benefit from this government-backed push for supply chain resilience.

XMET ETF provides Australian investors with targeted exposure to global companies at the heart of the critical minerals supply chain.

The post 3 ASX ETFs positioned to outperform in today’s uncertain geopolitical climate appeared first on The Motley Fool Australia.

More reading

• The top 3 Betashares ASX ETFs over the past year
• Why this ASX defence ETF keeps attracting investor attention
• Where to invest $5,000 in ASX ETFs this month

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.

Nufarm Ltd (ASX: NUF) shares were making headlines yesterday after the ASX materials stock soared 13% in a single session. 

Investors were gobbling up Nufarm shares after releasing its FY 2026 half-year results.

What did Nufarm report?

For the half year ended 31 March 2026, it reported: 

• Statutory Net Profit After Tax $38 million, up 28% on the prior corresponding period (pcp)
• Underlying NPAT (uNPAT) $52 million, up 35% on pcp
• Underlying EBITDA (uEBITDA) $243 million, up 18% on pcp
• $193 million improvement on pcp in free cash flow
• Net debt $1.23 billion, a reduction of $135 million on pcp
• Net debt to uEBITDA for twelve months to 31 March 2026 of 3.6x, a 20% reduction on pcp
• FY26 Outlook for uEBITDA and Leverage reaffirmed.

Commenting on the announcement, Nufarm CEO Rico Christensen said 

We are pleased with first half performance and are well placed to deliver strong growth in underlying earnings and a significant reduction in leverage for the full year, consistent with previous guidance. 

We have made clear progress on the priorities we set in November last year, delivering earnings growth, improved cash flow and a reduction in leverage. The benefit of our increased strategic focus is visible in the margin improvement in Crop Protection and significant uplift in earnings from our Seed Technologies business.

Bell Potter weighs in 

Following this result, the team at Bell Potter issued updated guidance on Nufarm shares. 

Nufarm is one of the world’s leading developers and manufacturers of seeds and crop protection solutions.

The broker noted that the company’s Seeds business was a standout performer during the half. 

EBITDA more than doubled to $58 million, helped by significantly smaller losses in the omega-3 platform business.

Cash flow also improved compared with the prior year, and net debt declined to around $1.09 billion excluding leases. Debt levels finished the period in line with management guidance.

Looking ahead, management remains confident about FY26. 

The company expects strong earnings growth, supported by continued improvement in crop protection and further growth in the Seeds business. 

Nufarm is also progressing with its cost-saving program, targeting $50 million in annual savings by the end of FY26, with an additional $50 million reduction plan for FY27–28.

Upside in tact 

Based on this guidance, the team at Bell Potter retained their buy recommendation and $3.60 price target on Nufarm shares. 

From yesterday’s closing price of $2.91, this indicates an upside potential of almost 24%. 

NUF is executing on its cost out initiatives ($32m of the $50m FY26e target achieved and a $50m target in FY27-28e) with a more favourable backdrop in crop protection markets and omega-3 (a doubling in fishoil pricing). Despite this NUF trades at a ~25% discount to global crop protection and seed peers.

The post Are Nufarm shares a buy, hold or sell after jumping 13% on half-year results? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why EOS, Life360, Nufarm, and Web Travel shares are pushing higher today
• Nufarm shares jump 11% as turnaround signs continue
• This ASX industrials stock could be set to race 20% higher: Expert
• This ASX small-cap could be set to rise 47%

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.

Santos Ltd (ASX: STO) shares reached a four-year high last Friday, and are up around 28% for the year to date.

On Tuesday, the company held its annual Investor Briefing Day in Sydney.

The headlines coming out of that event did not disappoint.

Here is what investors need to know about the Santos shares story right now.

Three things Santos told the market

The Briefing Day centred on three key messages.

First, the Barossa LNG project is currently producing at 75% of its planned 2026 production rates, with plateau production targeted before year end.

This is the most important near-term earnings driver Santos has, and it is tracking on schedule.

Second, management outlined a cost reduction framework targeting higher free cash flow margins as production grows.

Third, Santos confirmed first oil from its Pikka Phase 1 development in Alaska in late May 2026, with ramp-up expected to continue over the coming weeks.

Together these milestones mark a clear shift.

Santos is moving away from being a company spending heavily on major capital projects to one collecting the returns from them.

That transition is exactly what investors have been waiting for.

The oil price is doing the rest

Oil prices surged above US$105 per barrel in 2026 on Middle East tensions.

Every dollar rise in the oil price flows almost directly into Santos’ revenue.

In Q1 2026, Santos reported sales revenue of $1.27 billion, up 3% on the prior quarter, driven by stronger crude oil prices and higher LNG volumes.

Management reaffirmed full-year production and cost guidance, which removed a key uncertainty investors had been watching.

But the shares pulled back on Tuesday

Despite the positive Briefing Day content, Santos shares fell 5% from their four-year high by Tuesday afternoon.

This has been attributed the move to profit-taking and a cooling oil price as markets began pricing in a possible US-Iran peace deal.

Oil prices dropped more than 6% on Monday on that news.

For context, Santos shares are still up more than 22% over the past twelve months even after Tuesday’s retreat.

The key risk

A US-Iran peace deal would reopen the Strait of Hormuz and push oil prices materially lower.

This is the single biggest near-term risk to the Santos investment thesis.

As a result, investors should watch Middle East developments closely.

Foolish takeaway

Santos shares are not as cheap as they were.

But a world-class LNG portfolio finally converting major capital projects to cash flow, an oil price above $100, and confirmed first production from Alaska is a powerful combination.

For investors who believe energy prices stay elevated, Santos remains one of the more interesting energy stories on the ASX today.

The post Santos shares just hit a four-year high. Here’s why they could keep rising. appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Top brokers name 3 ASX shares to buy now
• 5 things to watch on the ASX 200 on Wednesday
• Santos shares cool 5% from four-year high: Have they come off the boil, or is a rebound imminent?
• Buying Santos shares? Here’s how the company aims to cut spending and lift production

Motley Fool contributor Mark Verhoeven 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.

With around a month left before the end of FY26, I think now could be a good time to put fresh money to work in ASX shares.

I would not rush just because the financial year is ending. The market will still be there in July. But if I had $20,000 ready to invest, I would use this period to add quality, global exposure, and long-term growth to my portfolio.

Here is how I would think about it.

I’d start with a global core

The first place I would look is an exchange-traded fund (ETF) with broad international exposure.

For me, the iShares S&P 500 AUD ETF (ASX: IVV) would be a strong candidate.

The IVV ETF gives investors exposure to America’s largest listed companies. I like that because the US market has a depth of world-class businesses that is difficult to replicate on the ASX alone.

This is not just about owning the biggest technology names. The S&P 500 includes companies across healthcare, financial services, consumer brands, industrials, digital platforms, payments, software, and communication services.

I’d consider a quality ASX blue chip

I would also look for direct exposure to a high-quality Australian business.

One ASX share I would consider is Macquarie Group Ltd (ASX: MQG).

Macquarie is not just a bank. It is a global financial group with exposure to asset management, infrastructure, commodities, markets, private capital, and the energy transition.

That makes earnings less predictable than a traditional domestic bank, but I think it also gives Macquarie more ways to grow over time.

I like businesses that can adapt as markets change. Macquarie has shown over many years that it can move capital and expertise into areas where it sees opportunity. That flexibility is valuable.

I’d keep room for an ASX tech stock

Finally, I would consider using part of the $20,000 to buy Xero Ltd (ASX: XRO) shares.

Xero has built a strong position in small business accounting software, but I think the bigger opportunity is broader than that.

It can help businesses with invoicing, payroll, tax, payments, cash flow, reporting, and more automated financial tasks over time.

The share price can be volatile, and investors still need to watch valuation and execution. But I think Xero has the sort of global software opportunity that can reward patience.

Foolish takeaway

If I were investing $20,000 before the end of FY26, I would focus on quality and long-term growth rather than trying to predict what the market will do over the next month.

A mix of global exposure, high-quality Australian businesses, and a world-class ASX tech stock would be my preference. That gives the portfolio several ways to grow without making the whole plan depend on one stock or one theme.

The end of the financial year can be a useful prompt to review a portfolio. But the real goal is much bigger than 30 June. I would want these investments working for me for years.

The post How I’d invest $20,000 in ASX shares before the end of FY26 appeared first on The Motley Fool Australia.

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• 3 ASX shares that could build serious wealth for shareholders
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• Got $50k of savings? Here’s how I’d turn that into passive income of $10k a year

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, Xero, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Macquarie Group and Xero. The Motley Fool Australia has recommended 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.

BHP Group Ltd (ASX: BHP) shares finished higher on Wednesday as investors weighed up fresh comments about China’s growing influence over iron ore pricing.

The mining giant ended the session up 1.54% to $61.28.

It has been a huge year already for shareholders. BHP shares are now up around 35% in 2026 and 59% over the past 12 months.

The stock is also trading close to the top of its 52-week range, which runs from $35.52 to $62.72.

So, what has put the ASX mining heavyweight back in focus?

China talks are getting tougher

According to The Australian, BHP’s WA iron ore boss, Tim Day, expects talks with China’s state-backed China Mineral Resources Group (CMRG) to get harder.

CMRG was created by Beijing to give Chinese steel mills more weight when negotiating iron ore deals.

That puts it in a strong position with Australian miners, given China is still the world’s biggest buyer of iron ore.

The report said Mr Day believes China now has more ability to push prices lower and secure better terms. He also said BHP had found the recent talks with CMRG difficult.

Chinese media said CMRG secured a 1.8% discount on iron ore from BHP. The same reports said the group also pushed the miner away from a previous index used to set prices.

Why buyers are still backing the rally

The tougher China backdrop hasn’t been enough to stop investors buying.

BHP’s share price reaction suggests the market is still more focused on the company’s scale, earnings power, and exposure to major commodities.

There may also be some relief that the earlier tensions have cooled between BHP and the Asian superpower.

Last year, there were concerns about China’s approach to BHP cargoes and how far the standoff could go. The latest comments suggest the talks are still difficult, but they are moving through the usual commercial channels.

The cost pressure isn’t going away

Mr Day said BHP is focused on what it can control, including keeping production costs down and improving productivity at its Western Australian operations.

The Pilbara remains one of the world’s most important iron ore regions, but it isn’t getting cheaper to operate there.

Miners are dealing with higher costs, union pressure, and ongoing demands to invest in lower-emissions equipment.

The Australian also reported that BlackRock portfolio manager Olivia Markham said Australia had lost some focus on productivity and that other places around the world were cheaper to operate.

That is the balance investors are now weighing.

BHP shares have had a massive run, and the market is still backing the stock. But the company is also facing tougher customers, a higher-cost operating base, and pressure to keep its Pilbara assets competitive.

The post BHP shares near 52-week high, but China just made things more complicated appeared first on The Motley Fool Australia.

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• Invested $10,000 in Rio Tinto, Fortescue or BHP shares 5 years ago? Guess which one has gained the most

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

Block Inc. (ASX: XYZ) has slipped off the radar for many ASX investors.

That is not too surprising. The ASX 200 share is down almost 25% from its high, and the market has become much more selective with growth stocks.

But I think Block could be a comeback candidate worth watching.

This is still a business with major positions across payments, small business tools, consumer finance, buy now pay later, and digital banking. I do not think the long-term opportunity has disappeared.

Two ecosystems with a lot of reach

The reason I like Block is that it touches both sides of commerce.

Square helps sellers accept payments, manage point-of-sale systems, access software, and run more parts of their businesses.

Cash App serves consumers, with payments, banking-style services, peer-to-peer transfers, and other financial tools.

That gives Block a large opportunity if it can keep connecting those ecosystems over time.

I like this because small businesses and consumers both want simpler financial tools. Sellers want to save time, reduce admin, and get paid. Consumers want fast, useful, easy-to-use money products.

Block is trying to sit in the middle of that activity.

AI could make the products more useful

The part of Block’s latest update that stood out to me was its focus on practical artificial intelligence (AI).

Moneybot is now live across Cash App, while Managerbot is being scaled across Square sellers. These tools are designed to help customers and sellers take action, not just receive information.

That is the kind of AI use case I find interesting.

If AI can help a seller spot a problem, improve a workflow, understand patterns, or act before an issue grows, it could make Square more valuable.

If Cash App can use AI to help customers make better financial decisions, that could deepen engagement.

This is still early. Investors should not assume every AI product will become a major profit driver. But Block has a large customer base, and even modest improvements in engagement or efficiency could add up.

A stronger business than the market may remember

I also think Block is a more focused business than it used to be.

The company has been working to improve profitability while still growing. Its latest quarterly update pointed to strong gross profit growth, improving operating income, and rising engagement across key areas of Cash App and Square.

The main point is that Block is not just relying on hype. It is trying to grow while becoming more disciplined.

That combination can be powerful if management keeps executing successfully.

Foolish takeaway

Payments and fintech are competitive, consumer behaviour can shift, and investor sentiment towards growth stocks can change quickly.

But I think the market may be underappreciating the size of the opportunity. Block has two large ecosystems, a clearer focus on profitability, and emerging AI tools that could make its products more useful.

After a share price fall of almost 25% from its high, I think this forgotten ASX 200 share could be worth another look.

The post Down 25%: Could this forgotten ASX 200 share make a comeback? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block. 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.

Harvey Norman Holdings Ltd (ASX: HVN) has not been the market’s favourite ASX 200 dividend share in 2026.

Its shares are down 35% since the start of the year.

That is understandable. Big-ticket retail has been under pressure, consumers have been cautious, and investors have had plenty of other dividend shares to choose from.

But I think Harvey Norman could be a better buy than it looks at first glance.

At the current share price of $4.54, the stock offers a combination of income, value, and recovery potential that could appeal to patient investors.

A large fully franked yield

The first attraction is the dividend. According to CommSec, the consensus estimate is for Harvey Norman to pay dividends per share of 31 cents in FY26 and 31 cents again in FY27.

Based on the current share price, that represents a forward dividend yield of approximately 6.8%.

That is a large yield, and it is expected to be fully franked.

For Australian income investors, franking credits can make a meaningful difference to the after-tax return, depending on personal circumstances.

Of course, dividends are not guaranteed. Harvey Norman is exposed to the consumer cycle, and earnings can move around when shoppers pull back on furniture, appliances, electronics, and homewares.

But the forecast income is a clear reason I think the stock deserves attention.

The valuation looks reasonable

The second attraction is valuation. CommSec’s consensus estimates are for earnings per share of 38.5 cents in FY26 and 39 cents in FY27.

At $4.54, that puts Harvey Norman on a forward price-to-earnings ratio of around 12 times.

That does not scream deep bargain on its own, but I think it looks reasonable for a business with a well-known brand, global operations, and a large property portfolio.

The property side of Harvey Norman is important. This is not just a retailer renting every store and hoping for strong sales. The company has meaningful property backing, which gives the investment case another layer.

A consumer recovery could help

The third reason I think Harvey Norman is interesting is the potential for better conditions ahead.

When households feel stretched, big-ticket purchases are easy to delay. A new lounge, fridge, computer, or bedroom suite can wait.

But delayed demand does not disappear forever. If interest rates ease, housing turnover improves, or consumer confidence lifts, Harvey Norman could benefit from a better retail backdrop.

The company does not need the economy to boom for sentiment to improve. Even a shift from very cautious to slightly more confident could help.

Foolish takeaway

Harvey Norman is not a fashionable ASX 200 dividend share right now, and that may be part of the opportunity.

The yield is attractive, the valuation looks undemanding, and the business has more going for it than the current share price may suggest.

This is still a cyclical retailer, so patience is required. But for investors looking for fully franked income with recovery potential, I think Harvey Norman is worth a closer look.

The post Could this unloved ASX 200 dividend share be a better buy than it looks? appeared first on The Motley Fool Australia.

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

As investors prepare to flip their calendars to a fresh month, there’s a growing case for targeting ASX 200 value shares. 

At its core, value investing involves identifying companies whose shares are trading below what they are actually worth. 

This is based on their underlying financial performance, assets, and long-term earning potential.

Value investing usually targets mature, blue-chip stocks rather than small-caps. 

With that in mind, here are three ASX 200 stocks that could fall into this category. 

PEXA Group Ltd (ASX: PXA)

PEXA provides a digital conveyancing platform for real estate settlements in Australia. The company touts itself as offering world-first technology that facilitates near real-time tracking of settlements and faster clearance of funds.

This ASX 200 stock has struggled in 2026, falling 20% in that span. 

However analysis from brokers and experts indicates this quality company has likely been oversold. 

Despite falling significantly, its fundamentals still look strong. 

In its most recent 3Q26 results, the company posted steady growth in transaction volume and national market penetration. 

Looking ahead, it also reaffirmed NPAT guidance for FY26 at the top end of the $15m–$25m range.

Following these results, the team at Ord Minnett placed a buy rating and $20.00 price target on this ASX 200 stock. 

Ord Minnett was pleased with the ongoing momentum in Australian property transaction volumes. 

At the time of writing, PEXA shares are trading for around $10.70, indicating a potential 87% upside. 

Guzman Y Gomez Ltd (ASX: GYG)

It has been a volatile year for Guzman Y Gomez shares. 

The fast-casual Mexican food chain saw its share price fall 25% to start the year, before soaring last week on the back of news it had withdrawn from the US market. 

Investors apparently saw this move as a disciplined one from management, as the company refocussed its efforts to domestic growth. 

At the time of writing, GYG shares remain down 37% over the last year, and still firmly sit in undervalued territory according to experts. 

Morgans has put a buy rating and $29.40 price target on this ASX 200 stock, indicating an upside potential of 52% from current levels. 

Life360 Inc (ASX: 360)

Life360 is a United States-based software development company. The company’s core product is a private family and friends social networking app that allows users to communicate and share their locations.

It was a stock market darling in 2025, but has since tumbled 42% year to date. 

Despite this fall, Bell Potter believes the ASX 200 company has a healthy base of paid subscribers, and is strategically implementing AI into its model. 

The broker has a recent price target of $33 on this ASX 200 stock, indicating an upside potential of 74%. 

The post 3 highly undervalued ASX 200 stocks to target in June with up to 87% upside appeared first on The Motley Fool Australia.

More reading

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

PLS Group Ltd (ASX: PLS) shares closed in the red on Wednesday afternoon. At the close of the ASX, the ASX mining stock was down around 2% to $6.28 a piece.

But the decline barely dented PLS Group’s gains this year.

The Australian lithium miner’s shares have had a fantastic run over the past year. The shares are still up around 46% for the year-to-date and its annual increase is enormous.

So, if I’d invested $5,000 in PLS Group shares 12 months ago, what would it be worth today?

At the time of writing, the share price is a huge 369% higher than just 12 months ago.

That means that $5,000 invested in the ASX mining stock in late-May last year would be worth around $23,450.

That’s an impressive increase.

Even if you invested the same amount when the ASX first opened in January this year, your $5,000 investment would already be worth around $7,300.

Why has the share price climbed so high, and so quickly?

A lot of the share price increase over the past 12 months is due to a rally in lithium prices and improved sentiment. This was primarily driven by a surge in interest in electric vehicles (EVs) and battery energy storage. 

Global EV sales have been rising faster than carmakers can keep up, and demand for grid-scale energy storage amid a shift towards renewable energy is also soaring.

Ongoing tension in the Middle East, and consequential oil supply restraints, has also prompted a significant shift towards EVs as an alternative to petrol-fueled vehicles.

And as owner and operator of one of the world’s largest independent hard rock lithium mines, Pilgangoora in Western Australia, PLS has naturally scooped up a lot of the demand.

But it’s not just market fundamentals that have pushed the company’s share price higher over the past year. The business is also booming.

The ASX mining stock posted its third quarter update in late-April. It revealed a huge 52% quarter-on-quarter revenue increase for the March quarter. This was fuelled by a 61% increase in the average realised spodumene price PLS Group received over the three months, which rose to US$1,867 per tonne (SC5.2 equivalent).

The miner also reported a 12% increase in production to 232,400 tonnes. It also said it sold 195,700 tonnes of spodumene over the same period.

What’s next for the ASX mining shares? Can they keep climbing?

It looks like analyst sentiment on the ASX mining stock has started shifting, with many anticipating that the stock is reaching (or has now passed) fair value after the latest price rises.

TradingView data shows that eight out of 16 analysts have a buy or strong buy rating on the stock. Five analysts have a hold rating, and another five rate the shares as a sell or strong sell.

The average target price of $5.66 now implies a potential 10% downside at the time of writing.

Forecasts are quite split, however. Some think the shares have the potential to increase another 15% to $7.20 while others tip the shares to decline up to 59% to $2.60.

The post If I’d invested $5,000 in this ASX mining stock 12 months ago I’d have over $23k today! appeared first on The Motley Fool Australia.

More reading

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• Why Alkane Resources, Bapcor, PLS, and Resolute Mining shares are sinking today
• ASX lithium stocks surge more than 300%: is there more to come?

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 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.

Some ASX shares are built for short bursts of excitement. Others can compound value over many years by reinvesting at attractive rates, expanding into larger markets, and strengthening their competitive positions.

That second group can be powerful for patient investors, as high-quality businesses with long runways can create serious wealth over time.

Here are three that could do this over the next decade:

Hub24 Ltd (ASX: HUB)

The first ASX share to look at is Hub24.

It operates an investment platform used by financial advisers and their clients. These platforms help manage portfolios, reporting, administration, and access to investment products in one place.

Hub24 has benefited from a major shift in Australia’s wealth management industry. Advisers have been moving away from older platforms and toward technology-led providers that offer better functionality, flexibility, and service.

This has helped the company win market share and attract growing funds under administration. And as more money flows onto its platform, Hub24 benefits from scale, recurring revenue, and deeper relationships with advisers.

There will always be competition in platform technology. But Hub24 has built a strong position in a large industry that still has room to modernise.

Light & Wonder Inc (ASX: LNW)

Another ASX share that could build wealth over time is Light & Wonder.

It operates in the global gaming industry, providing gaming machines, digital casino content, and social gaming products. This gives it exposure to several parts of a large entertainment market.

Light & Wonder’s strength is its content. Successful gaming products rely on engaging maths models, strong brands, player appeal, and distribution across land-based and digital channels. When a company gets that mix right, popular titles can travel across markets and formats.

The business also has a global opportunity. Casinos, digital operators, and social gaming platforms all need fresh content to keep players engaged. That creates a long runway for companies that can consistently develop and distribute successful games.

This is not a risk-free sector. Regulation, competition, and consumer trends all matter. But Light & Wonder has a platform that gives it multiple ways to grow earnings if it continues executing well.

Macquarie Group Ltd (ASX: MQG)

A third ASX share to consider is Macquarie.

The investment bank and asset manager has built one of the most impressive long-term track records on the ASX. Its operations span asset management, commodities, infrastructure, green energy, banking, and markets.

What makes Macquarie interesting is its ability to find growth opportunities across cycles. It is not reliant on one narrow earnings stream. Some divisions perform better in volatile markets, while others benefit from long-term investment themes.

Its global infrastructure and asset management capabilities are particularly important. Demand for capital to fund energy transition, data infrastructure, transport assets, and essential services could remain significant for decades.

Overall, few ASX financial shares have shown the same ability to adapt, reinvest, and grow across different environments as Macquarie.

The post 3 ASX shares that could build serious wealth for shareholders 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 Hub24, Light & Wonder Inc, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Hub24 and Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.