Category: Stock Market

The Zip Co Ltd (ASX: ZIP) share price has suffered enormous volatility over the last six months, as the chart below shows. But, instead of being fearful, this could be the right time to look at the buy now, pay later business.

When valuations fall this hard, it can be a good idea to think about what might happen when market confidence returns.

While the market didn’t love the recent FY26 half-year result from Zip, there were a number of positives, and some analysts are optimistic about what the business can achieve in the coming years.

FY26

Broker UBS noted that the FY26 half-year result was a “slight miss” compared to estimates, but suggested that the Zip share price decline was “an overreaction, given US growth remains strong and whilst net bad debts had increased, this was not unexpected given Zip is now focusing on customer growth in the region and still within the comfort range of 1.5% to 2%.”

UBS is forecasting that US total transaction value (TTV) could grow by 38% in the second half of FY26. The broker suggests that Zip’s US growth is being driven by two things, which is ongoing growth of buy now, pay later in the US and a focus on predominantly non-discretionary verticals which are more resilient through economic cycles”

The broker estimates that its earnings per share (EPS) could rise at a compound annual growth rate (CAGR) of 30% over the next three years, which UBS thinks is attractive relative to buy now, pay later and banking peers.

Taking all of the above into account, UBS predicts that Zip’s net profit could more than double in the 2026 financial year to $112 million.

FY27

The broker predicts ongoing profit growth in the 2027 financial year for the business, which could see the company deliver net profit of $151 million in FY27.

These ongoing improvements in profit are expected to be driven by strong growth in the US. UBS predicts US TTV growth of 30% in FY27 for Zip.

FY28

Two exciting things could happen for owners of Zip shares in the 2028 financial year.

Firstly, its net profit could rise again in FY28 to $199 million.

Second, the company could start paying a dividend to shareholders, starting with an annual payout of 8 cents per share in FY28.

The broker UBS is expecting the company’s US division to deliver TTV growth of 22% in FY28.

FY29

The 2029 financial year could see the buy now, pay later business deliver even more profit progress.

UBS suggests the business could achieve a net profit of $259 million in FY29.

FY30

Finally, the business could achieve its most profitable year ever in the 2030 financial year.

The start of the 2030s could see the buy now, pay later business deliver net profit of $337 million, meaning profit may triple from the expected amount for the 2026 financial year.

The post Here’s the earnings forecast out to 2030 for Zip shares appeared first on The Motley Fool Australia.

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

Oil prices have surged as the war between the United States, Israel, and Iran intensifies across the Middle East.

Brent crude and West Texas Intermediate (WTI) crude have both climbed above the US$100 per barrel mark for the first time since 2022, triggering a strong rally across global energy markets.

The move reflects growing fears that the escalating conflict could disrupt oil supplies across one of the world’s most important energy-producing regions.

Here is what is driving the move.

Oil prices surge as conflict threatens global supply

Global oil markets have reacted strongly as the conflict in the Middle East enters its 10th day.

According to Trading Economics, WTI crude oil has jumped about 19% to roughly US$108 per barrel, while Brent crude is up around 17% to US$108 per barrel.

The rise comes as escalating military strikes between Israel and Iran raise concerns about disruptions to oil supplies across the region.

One of the biggest risks to global energy markets is the Strait of Hormuz, a narrow shipping route between Iran and Oman.

Around 20% of the world’s oil supply normally passes through this strategic waterway.

Recent reports suggest tanker traffic through the strait has slowed dramatically amid rising security threats and attacks on shipping vessels.

Some Middle Eastern producers have already begun cutting output or halting shipments, which is tightening supply in global energy markets.

With supply risks rising quickly, oil traders have pushed prices significantly higher.

The OOO share price is rocketing

The sharp move in oil prices is flowing through to the Betashares Crude Oil Index Currency Hedged ETF (ASX: OOO).

The ETF aims to track the performance of the S&P GSCI Crude Oil Index, which reflects movements in global oil prices.

Because the fund is currency hedged, it is designed to track the underlying oil price without the impact of fluctuations in the Australian dollar.

As oil prices have surged in recent days, the ETF has followed.

Over the past week alone, the OOO share price has surged more than 60%, rising to its latest price of $9.50.

Year to date, the ETF is now up close to 85%, reflecting the powerful rally in crude markets.

Trading volumes have also jumped as investors seek quick exposure to rising energy prices.

What happens next for oil prices

Where oil prices go next will largely depend on how the conflict develops.

Analysts say the biggest concern remains the potential for a long-term disruption to energy shipments through the Persian Gulf.

If the Strait of Hormuz remains restricted or damaged, infrastructure reduces production across the region, and global supply could tighten further.

Some analysts have warned that oil could climb well above US$120 per barrel if the conflict escalates and supply disruptions worsen.

Right now, however, energy markets remain extremely sensitive to developments in the Middle East.

And that means the OOO share price could remain volatile as investors react to new updates from the conflict.

The post Oil rockets past US$100 as Iran war escalates. This ASX oil ETF is surging appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: NextDC, WiseTech Global, and CBA shares
• Pro Medicus shares fall after market selloff overshadows $40 million contract news
• What to make of these volatile ASX shares
• What I’d buy if the ASX share market crashes
• Broker says this exciting ASX biotech stock could rise almost 50%

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

There are plenty of ASX shares out there for investors to choose from.

To narrow things down, let’s see what analysts are saying about three popular shares, courtesy of The Bull. Here’s what they are recommending:

Commonwealth Bank of Australia (ASX: CBA)

The team at Red Leaf Securities has been looking at the shares of banking giant CBA.

While the equity specialist acknowledges that CBA is Australia’s highest quality bank, its credit quality is strong, and its half-year results were ahead of expectations, it believes its shares are fully valued. As a result, it has put a hold rating on them. It explains:

CBA remains the highest quality bank, supported by scale, technology leadership and a dominant retail franchise. Credit quality is stable, arrears are contained and capital levels are strong. Recent half year results in fiscal year 2026 beat expectations, which the market welcomed. However, much of this quality is already reflected in its premium valuation.

With loan growth moderating and net interest margins normalising, earnings growth is likely to be steady as opposed to spectacular. The dividend supports total returns, making it a reliable core holding. Upside is limited at current prices. However, existing investors should maintain exposure, while new capital may find better growth or valuation opportunities elsewhere.

Nextdc Ltd (ASX: NXT)

Over at EnviroInvest, its analysts are positive on this data centre operator and have named it as a buy this week.

The investment company believes structural demand and execution momentum are reasons to buy. It said:

NextDC develops and operates data centres across Australia. Net revenue of $189.2 million in the first half of fiscal year 2026 rose 13 per cent on the prior corresponding period. Underlying EBITDA of $9.9 million was up 9 per cent. NXT sources renewable energy for its facilities and designs highly efficient cooling systems, reducing carbon intensity per megawatt. Digital infrastructure is energy intensive, but efficient operators are poised to benefit. Structural demand and execution momentum, in our view, support further upside.

WiseTech Global Ltd (ASX: WTC)

Finally, Red Leaf Securities has named WiseTech shares as a buy this week.

It highlights that the tech stock has a structurally de-risked path to margin expansion. It explains:

WTC develops and provides software solutions to the global logistics industry. Artificial intelligence (AI) continues to be embedded across its software, which is likely to cut 2000 jobs in fiscal years 2026 and 2027. AI enhances productivity across CargoWise logistics datasets and global integrations. First half revenue in fiscal year 2026 exceeded expectations. Synergies from e2open were delivered 18 months early and customer retention remains about 99 per cent. With dominant network effects across more than 190 countries, improving cost discipline and scalable growth opportunities, WiseTech offers a structurally de-risked path to margin expansion.

The post Buy, hold, sell: NextDC, WiseTech Global, and CBA shares appeared first on The Motley Fool Australia.

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

Pro Medicus Ltd (ASX: PME) shares are trading lower on Monday morning.

At the time of writing, the health imaging technology company’s shares are down almost 1% to $131.67.

Why are Pro Medicus shares falling?

Investors have been selling the company’s shares today after broad market weakness offset the announcement of two major contract renewals in the United States.

If the ASX 200 index was not being sold-off today and down 3.2% at the time of writing, Pro Medicus shares would likely be charging higher.

According to the release, the company’s wholly owned US subsidiary, Visage Imaging, has signed two five-year contract renewals with a combined minimum value of $40 million.

Pro Medicus revealed that the largest of the deals is a $31 million renewal with MedStar Health, which is one of the largest healthcare systems in the Maryland and Washington, D.C. metropolitan region.

Under the agreement, MedStar will continue using the full suite of Visage 7 modules, including the Visage 7 Viewer, Open Archive, and Worklist products. The renewal will also add the company’s Visage 7 Cardiology imaging module.

In addition, Pro Medicus has secured a $9 million five-year renewal with Zwanger-Pesiri, which is a large private outpatient radiology provider based on Long Island in the United States.

The release reveals that both agreements are transaction-based contracts and, importantly, were negotiated at higher per-transaction fees. This means the total value could increase depending on usage volumes.

Management commentary

Pro Medicus’ CEO, Dr Sam Hupert, was pleased with the news and highlighted the significance of the MedStar renewal, noting that it was the company’s first fully cloud-deployed customer. He said:

The Medstar renewal is notable in that MedStar was our first fully cloud deployed customer and has grown considerably since their initial go live. Renewing this contract, and adding the Cardiology product, confirms our belief that we have the preeminent and most scalable enterprise imaging solution, that is fully cloud native.

Dr Hupert also commented on the Zwanger-Pesiri renewal, noting the long-standing relationship between the companies. He adds:

We are very pleased to have played such a key role in Zwanger Pesiri’s growth over the past 10 years. Zwanger-Pesiri have now renewed for a third contract term, re-iterating our belief that our solution provides the best return on investment of any system in the market from both a financial and clinical perspective.

With new contract renewals secured at higher transaction pricing and additional product adoption from existing customers, investors appear pleased with the latest update.

The post Pro Medicus shares fall after market selloff overshadows $40 million contract news appeared first on The Motley Fool Australia.

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

Last week was a rollercoaster for the S&P/ASX 200 Index (ASX: XJO).

Australia’s benchmark index swung heavily throughout the week, ultimately finishing 2.95% lower on Friday’s close than Monday’s open. 

Three ASX shares in particular that bounced around were: 

• Light & Wonder Inc (ASX: LNW)
• Domino’s Pizza Enterprises Ltd (ASX: DMP)
• 4DMedical Ltd (ASX: 4DX)

When stocks crash and recover on a daily basis, it can be difficult for investors to pinpoint true value. 

Here’s what experts are saying about these ASX shares. 

Light & Wonder

Light & Wonder shares crashed more than 7% at the start of last week. They then recovered by Thursday, before falling again on Friday. 

All in all, they finished the week down 1.35%. 

It’s been a rough start to the year for the game developer, down 28% since the middle of January. 

Holders of this ASX 200 stock will be pleased to know that analysts have a positive outlook, meaning there is the possibility of a larger recovery. 

Last week, Morgans had a buy rating and $195 price target on the company. 

Unlike other sectors, the broker thinks AI disruption will strengthen its competitive edge. 

From Friday’s closing price of $129.97, the Morgans price target indicates an upside of 50%. 

Elsewhere, Bell Potter is tipping even more upside for the ASX 200 stock. 

The broker has a $220 price target on Light and Wonder shares. 

Domino’s Pizza Enterprises

It was also a turbulent week for Domino’s shares. 

The ASX 200 stock initially dropped 12% before recovering significantly. 

It finished the week 3.74% lower than Monday’s open. 

This is a snapshot of what Domino’s shareholders have endured over the last year. 

The share price is ultimately down 29% for the last 12 months. 

Outlook is mixed amongst experts moving forward. 

Morgans currently has a buy rating and $25 price target on Domino’s shares. 

Meanwhile, Morgan Stanley has a sell rating on Domino’s Pizza shares with a target of just $15.20.

The ASX 200 company closed last week in between these targets at $19.07. 

4DMedical

This ASX stock was another up-and-down company last week. 

It endured heavy rises and falls but finished the week more than 13% above Monday’s open. 

The medical technology company is up an astounding 1000% in the last year. 

Following such a run, there are now questions on valuation vs revenue. 

Meanwhile, Bell Potter is optimistic that the growth can continue. 

The broker set a $4.50 price target and issued a buy recommendation.  

That indicates an upside of roughly 4% from last week’s close. 

The post What to make of these volatile ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises and Light & Wonder Inc. The Motley Fool Australia has recommended Domino’s Pizza Enterprises 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.

Market sell-offs are never comfortable, but they are a normal part of investing.

The share market moves in cycles, and even strong companies can see their share prices fall sharply when sentiment turns negative. While it can feel unsettling in the moment, those periods often create some of the best long-term buying opportunities.

If the ASX share market were to crash, my approach wouldn’t be to panic or rush for the exit. Instead, I’d be looking for high-quality businesses whose long-term outlook remains intact but whose share prices have been dragged down with the broader market.

Here are three types of investments I’d be paying close attention to.

High-quality compounders

One of the first places I’d look during a market crash is high-quality ASX growth shares that have strong long-term track records.

Businesses like Pro Medicus Ltd (ASX: PME) and Xero Ltd (ASX: XRO) have built global platforms and operate in industries with long growth runways. These are the kinds of companies that can grow earnings for many years, but their share prices can still fall heavily during broad market sell-offs.

When that happens, the underlying businesses don’t suddenly lose their competitive advantages. What changes is the price investors are asked to pay for them.

If a crash pushed these types of companies to more attractive valuations, I would see that as a chance to build a position in businesses I already admire.

Market leaders with durable earnings

I would also look for dominant companies with resilient earnings and strong balance sheets.

Businesses like Wesfarmers Ltd (ASX: WES) and Woolworths Group Ltd (ASX: WOW) have established leadership positions in their industries and generate significant cash flow through economic cycles.

Retail spending may fluctuate, but these companies operate essential businesses with strong brands and extensive distribution networks.

During market downturns, even these kinds of blue-chip companies can be sold off alongside everything else. That can create opportunities to buy reliable, long-established businesses at prices that may not normally be available.

Broad ETFs

Finally, I would likely look to add to broad market exchange-traded funds (ETFs).

Funds such as the iShares S&P 500 ETF (ASX: IVV) or the Vanguard MSCI Index International Shares ETF (ASX: VGS) provide exposure to large numbers of companies across different sectors and regions.

Buying diversified ETFs during periods of market weakness can be a straightforward way to increase exposure to the market without needing to pick individual winners.

Over long periods of time, markets have historically recovered from downturns and gone on to reach new highs. Adding to diversified funds during those weaker periods can help investors benefit from that recovery.

Foolish Takeaway

If the ASX share market crashes, my focus wouldn’t be on trying to predict how far prices might fall.

Instead, I’d be looking for opportunities to buy strong businesses and diversified ETFs at more attractive prices. Market downturns can be uncomfortable in the short term, but they can also provide the chance to build a portfolio of high-quality investments for the long run.

The post What I’d buy if the ASX share market crashes appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Grace Alvino has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers, Xero, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Woolworths Group and Xero. The Motley Fool Australia has recommended Pro Medicus, Vanguard Msci Index International Shares ETF, Wesfarmers, 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.

Now could be the time to pounce on the ASX biotech stock in this article according to analysts at Bell Potter.

That’s because it believes the speculative stock could generate very big returns over the next 12 months if everything goes to plan.

Which ASX biotech stock?

The stock in question is Anteris Technologies Global Corp (ASX: AVR).

It is developing the DurAVR device, a class III medical device in the class of transcatheter aortic heart valves used for the treatment of severe aortic stenosis.

Bell Potter notes that the condition affects ~12 million people globally with an estimated ~150,000 procedures completed each year via the minimally invasive TAVR (transarterial valve replacement) procedure.

What is the broker saying?

Bell Potter notes that the ASX biotech stock is making a lot of progress towards getting its DurAVR product approved. It said:

Anteris continues to make excellent progress towards approval of the DurAVR by virtue of the recent opening of the Investigative Device Exemption (IDE) in the US followed by the US$320m capital raise to fund the pivotal study.

Any suggestion that DurAVR is not a serious a threat to the market leaders in the TAVR space should now be extinguished. The opening of an IDE is a seriously impressive achievement for any company, let alone AVR with no significant history at the FDA and no previous product approval. Secondly, the $90m placement (included in the $320m) to Medtronic (MDT) provides it with an effective right of last refusal on future M&A. It also amounts to a validation of the multiple features with the DurAVR technology which make it an appealing alternative to both the Edwards Life Science SAPIEN or the Medtronic’s Evolut and CoreValve TAVR devices. AVR represents Special Value for MDT, which is now well positioned for a potential acquisition.

Big potential returns

According to the release, the broker has retained its speculative buy rating with an improved price target of $13.00 (from $10.00).

Based on its current share price of $8.76, this implies potential upside of 48% for investors over the next 12 months.

Commenting on its recommendation, the broker said:

The opening on the IDE and completion of the funding round substantially de-risk the pathway to approval and subsequent revenue stream. The key risk now remains the not insignificant task of successful completion of the phase 3 trial. Being a medical device of a mechanical nature, the certainty of outcome from the trial is far higher than for a drug as evidenced by data from the ongoing clinical program. As the path to revenue is substantially de-risked, our valuation is increased from A$10 to A$13 and we maintain our Buy (Speculative) rating.

The post Broker says this exciting ASX biotech stock could rise almost 50% appeared first on The Motley Fool Australia.

More reading

• Oil rockets past US$100 as Iran war escalates. This ASX oil ETF is surging
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• What I’d buy if the ASX share market crashes

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.

Owning Wesfarmers Ltd (ASX: WES) shares could be a great idea for investors looking for a resilient business in these uncertain times. As a bonus, the Wesfarmers dividend is steadily increasing over time for shareholders.

Wesfarmers may not be a name we see at a shopping centre or on our streets, but it owns a few of Australia’s most recognised retailing businesses. Bunnings, Kmart, Officeworks, Priceline and Target are all under the Wesfarmers umbrella.

Additionally, the business has other segments that help diversify earnings – the chemicals, energy and fertiliser (WesCEF) division (which includes lithium mining), a number of healthcare businesses, and an industrial and safety division.

After seeing the numbers in the recent FY26 half-year result, analysts are forecasting encouraging trends for the Wesfarmers dividend in the coming years.

FY26

Following its FY26 half-year result, the experts at UBS said that Bunnings enjoys strong revenue growth options across categories, channels (with digital growth) and customers. The commercial segment represents half of the market, but only 38% of sales. These growth options are capital-light.

Kmart Group’s revenue slowed after the annual general market (AGM) because of Target, which suffered from weaker apparel sales and the unplanned closure of the Queensland distribution centre.

Kmart’s growth options include “driving greater category participation from existing customers & ongoing product development to gain share in more categories.”

Officeworks is investing in a transformation that should reset its cost base, improve its technology and service.

UBS said that WesCEF was the key source of positive surprise in the first half of FY26 thanks to strong ammonia nitrate and fertiliser, as well as lithium (though Mt Holland production and higher lithium pricing).

Overall, HY26 saw the company report revenue growth of 3.1% to $24.2 billion, operating profit (EBIT) growth of 8.4% to $2.5 billion and net profit after tax (NPAT) growth of 9.3% to $1.6 billion.

The solid performance helped earnings per share (EPS) climb 93% to $1.41 and the dividend per share jumped by 7.4% to $1.02.  

UBS predicts that the business could deliver an annual dividend per share for FY26 of $2.13. That would be a grossed-up dividend yield of 4%, including franking credits, at the time of writing.

FY27

The business is expected to increase its payouts in the subsequent years, which is great news for investors wanting passive income.

In the 2027 financial year, the business is projected to pay an annual dividend per share of $2.31.

FY28

A further dividend increase is forecast for the 2028 financial year, with owners of Wesfarmers shares expected to receive an annual dividend per share of $2.56.

FY29

The 2029 financial year is projected to see Wesfarmers pay an annual dividend of $2.85 per share.

FY30

The last year of this series of projections is the 2030 financial year, which could see the business pay an annual dividend per share of $3, which would be a 41% rise from FY26.

In terms of the outlook for the consumer, UBS said:

The Australian consumer is supported by population growth, a resilient labour market (employment growth continues albeit slowing recently), household wealth and rising retirement incomes.

Cost of living pressures are not worsening but are not easing, with consumers adjusting spend in food (trading down to private label & promotions), liquor (consuming less, trading down) and general merchandise & apparel, while the hoped for recovery in big ticket items has been slowed as further interest rate cuts have been replaced by interest rate rises given elevated CPI (UBS Economics [forecast] another 25bps in May26).

Given this backdrop, which remains robust but not as buoyant as 6mths ago, retailers with a strong value offering (e.g. Bunnings & Kmart)…appear best positioned.

The outlook seems positive for owners of Wesfarmers shares, in my view.

The post Here’s the dividend forecast out to 2030 for Wesfarmers shares appeared first on The Motley Fool Australia.

More reading

• What I’d buy if the ASX share market crashes
• How I’d invest $20,000 in the ASX share market right now
• Sell alert! Why this expert is calling time on Wesfarmers and CBA shares
• 3 must-own ASX blue-chip dividend stocks for Aussie investors
• Why Wesfarmers shares are a retiree’s dream in 2026

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

One of the biggest advantages of exchange-traded funds (ETFs) is how simple they can make long-term investing.

Instead of trying to pick individual winners, investors can gain access to hundreds of stocks through a single fund. Over long timeframes, that diversification can make it much easier to stay invested through market cycles.

For investors thinking about the next couple of decades rather than the next couple of months, I think broad ETFs could be a very effective foundation for a portfolio.

Here are two ASX ETFs I believe could be worth buying and holding for the next 20 years.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

One ETF I would want in a long-term portfolio is the Vanguard MSCI Index International Shares ETF.

This fund provides exposure to a large portfolio of companies across major developed markets, including the United States, Europe, and parts of Asia.

That means investors gain access to many of the world’s largest and most influential businesses, such as Microsoft, Apple, and Nvidia.

What I like about this ETF is that it gives investors exposure to global economic growth rather than relying solely on the Australian market. Over the long run, global diversification can help smooth out the impact of regional market cycles.

For investors building wealth over decades, I think having exposure to the world’s biggest companies through a fund like VGS makes a lot of sense.

Vanguard Australian Shares Index ETF (ASX: VAS)

While global diversification is important, I also think there’s value in maintaining exposure to the Australian share market.

The Vanguard Australian Shares Index ETF tracks the performance of the S&P/ASX 300 Index (ASX: XKO) and holds a broad portfolio of Australian companies across many industries.

This includes major banks like Commonwealth Bank of Australia (ASX: CBA), resource companies like BHP Group Ltd (ASX: BHP), healthcare businesses like CSL Ltd (ASX: CSL), and consumer companies like Harvey Norman Holdings Ltd (ASX: HVN) that collectively represent a large portion of the Australian economy.

One reason Australian equities are popular with income-focused investors is their dividend culture. Many companies listed on the ASX pay relatively attractive dividends, often accompanied by franking credits.

For long-term investors, this combination of income and exposure to the domestic economy can complement international investments nicely.

Foolish Takeaway

Investing for the next 20 years doesn’t require complicated strategies. Sometimes the simplest approach is to build a diversified portfolio and let it grow over time.

By combining global exposure through the Vanguard MSCI Index International Shares ETF with Australian market exposure through the Vanguard Australian Shares Index ETF, investors can gain access to hundreds of companies across multiple industries.

The post 2 ETFs I’d buy and hold for the next 20 years appeared first on The Motley Fool Australia.

More reading

• What I’d buy if the ASX share market crashes
• 4 reasons not to panic-sell ASX shares during March
• The easy way to build a diversified ASX share portfolio
• 3 ASX shares perfect for beginners
• 5 simple ASX ETFs to build a long-term portfolio around

Motley Fool contributor Grace Alvino has positions in CSL, Commonwealth Bank Of Australia, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, CSL, Microsoft, and Nvidia and is short shares of Apple. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Apple, BHP Group, CSL, Microsoft, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

National Australia Bank Ltd (ASX: NAB) shares have gained 36% in value over 12 months and 11% in 2026.  

Most brokers believe the $143 billion banking giant is trading above fair value at its current share price of $46.82.

As such, investors might want to shift their focus to a smaller ASX fintech stock: Zip Co Ltd (ASX: ZIP). The buy now pay later (BNPL) provider finished last week with a 3.7% rise to $1.85.

More importantly, brokers tip explosive upside for this BNPL stock, while downside appears more likely for NAB shares. Let’s find out why.

Profitable growth is finally arriving

The ASX growth stock is now delivering the kind of results investors have been waiting for. Over the past few years, the company has deliberately shifted away from a ‘growth at any cost’ strategy and focused on expanding while improving profitability. That change is now showing up clearly in the numbers.

In its latest half-year results, the company delivered record cash EBITDA of $124.3 million, jumping 85.6% compared to the previous year. Total income rose 29% to $664 million, while total transaction volume climbed 34% to $8.4 billion.

Just as importantly, bad debts remain well controlled at around 1.7% of transaction volume. That suggests the company is successfully managing credit risk even as it continues to grow its lending book.

For investors who previously questioned the business model’s sustainability, the rapid improvement in profitability marks a major turning point.

Expansion runway in the US

The US business is now driving Zip’s growth story. Transaction volumes, revenue and customer engagement are all rising as the platform signs new merchants and rolls out additional payment products.

The US market already generates the majority of the company’s earnings, and growth there continues at a strong pace. Analysts note the business is benefiting from rising consumer demand for flexible payment options and partnerships with large merchants.

If the company continues to build momentum in the world’s largest consumer market, its long-term growth opportunity could be significantly larger than the Australian buy now, pay later market alone.

What next for Zip and NAB shares?

The ASX growth stock has lost significant ground recently. Although Zip shares closed 14% higher on Thursday and Friday, they are still down 44% year to date.

That sharp decline has caught the attention of analysts. Most brokers now rate the stock as a strong buy, reflecting confidence in the company’s improving profitability and expanding US business.

According to analyst estimates, the Zip stock has an average 12-month price target of about $4.21. Forecasts range from roughly $3.35 to $5.27. From current trading levels, that suggests potential upside of around 82% to 186%.

Brokers are a lot less enthusiastic about NAB shares. Despite delivering a solid quarterly update, Morgans believes NAB’s shares are overvalued at current levels. The broker just placed a sell rating on the big four banks’ shares with a price target of $37.27.

This suggests a potential downside of 20.3% for investors at current levels. The most bearish analyst sees the maximum downside at 36%, while the most optimistic broker predicts an 8% upside for NAB shares.

The post Forget NAB shares, this ASX fintech stock could double in value appeared first on The Motley Fool Australia.

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