Category: Stock Market

Investors are offloading ASX Ltd (ASX: ASX) shares on Tuesday after the market operator outlined a heavier spending outlook.

At the time of writing, the ASX share price is down 8.35% to $53.90.

The sell-off comes despite a solid start to the year. ASX shares are still up around 5% in 2026, although they remain about 24% lower over the past 12 months.

Let’s take a closer look at the release.

Costs are heading higher

In today’s update, ASX provided financial guidance for FY 2027 and confirmed its FY 2026 outlook.

ASX said FY 2027 total expense growth is expected to be between 18% and 21%. Operating expenses, excluding depreciation and amortisation, are forecast to rise by between 13% and 16%.

The company said the increase is being driven mainly by technology modernisation, the Accelerate Program, remediation work, and spending linked to the ASIC inquiry and customer growth initiatives.

Capital expenditure is moving up as well.

ASX expects FY 2027 capital expenditure of between $130 million and $150 million. That’s up from its FY 2026 capex guidance of between $100 million and $120 million.

The company also expects FY 2028 capex to move higher again, with guidance of between $170 million and $190 million.

A large part of this spending is tied to technology upgrades, including work connected to CHESS Release 1, enterprise cloud, data and integration platforms, and other internal systems.

Why investors are selling

ASX is still a high-quality market infrastructure business, but today’s update shows how much money is going into keeping it that way.

The company said the spending reflects its role as a steward of critical market infrastructure. It also pointed to investment in resilience, operational efficiency, data management, AI, automation, and new product initiatives.

But with expenses and capex both moving higher, investors appear to be questioning how long this heavier spending period will last.

Dividends may also be part of the selling pressure.

ASX said its dividend payout range remains unchanged at 75% to 85% of underlying net profit after tax (NPAT). But it expects the payout to sit at the bottom end of that range over at least the next two dividends.

FY 2026 guidance unchanged

ASX did leave its FY 2026 guidance unchanged.

The company said unaudited operating revenue for the 10 months to 30 April 2026 was $1.03 billion, up 12.5% on the same period last year.

It also continues to expect FY 2026 total expense growth of 20% to 23%, including costs linked to the ASIC inquiry and CHESS Replacement Partnership Program.

ASX said it will release its FY 2026 results on 13 August 2026.

The post ASX shares sink 8% as investors baulk at spending surge appeared first on The Motley Fool Australia.

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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.

The ASX stock market is a wonderful place to find passive income investment opportunities that provide a good dividend yield and hopefully capital growth over the longer-term.

I’m going to talk about WCM Quality Global Growth Fund (ASX: WCMQ) and how many units we’d need to unlock $200 of monthly passive income.

WCM is managed by WCM Investment Management, which is based in Laguna Beach, California. The location gives the investment team a different perspective to the managers based around Wall Street in New York.

Let’s look at how effective it would be at delivering excellent passive income.

Distribution yield and units required

The ASX-listed exchange-traded fund (ETF) aims to provide investors with an annualised distribution yield of at least 5% per year.

That may not be the biggest dividend yield around, but I’d say that’s a great starting point and allows the investment to balance giving investors passive income and capital growth.

It pays the distribution quarterly. That’s not a payout every single month, so an investor would need to either divide the quarterly (or annual) amount into monthly amounts.

A monthly goal of $200 per month is an annual passive income target of $2,400. At a (minimum) 5% distribution yield, an investor would need 4,730 units of the ASX ETF, at the time of writing.

Great capital growth potential

Given how the fund links its distribution size to the net asset value (NAV) of the ASX ETF, it’s the ETF’s investment returns that will spur larger distributions.

It aims to invest in a portfolio of between 30 to 40 quality global stocks. The investment team have a fundamental belief that corporate culture is the most powerful force behind a company’s ability to grow its competitive advantage.

Since its inception in August 2018, the WCMQ ETF has returned an average of 14.7% per year (after management and performance fees). This has outperformed the MSCI All Country World Index by an average of 2.3% per year during that time.

Past performance is not a guarantee of future performance. But, with its long-term return performance, it was capable of delivering that pleasing 5% distribution yield and still delivering capital growth (and distribution growth) in the high single digit in percentage terms.

Given how the investment team look across the world for high-quality businesses to buy – with positions across the Americas, Europe and Asia Pacific – I think it’s a solid long-term contender as a passive income option.

The post I’d buy 4,730 shares of this ASX stock to aim for $200 a month of passive income appeared first on The Motley Fool Australia.

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

The Fortescue Ltd (ASX: FMG) share price has recently been a strong performer in the S&P/ASX 200 Index (ASX: XJO). In-fact, it has delivered one of the strongest gains among the major ASX blue-chip shares.

As the above chart shows, in the last 12 months the Fortescue share price has gone up by approximately 40%. That compares to a rise of around 4% for the ASX 200. Both of those figures are at the time of writing.

A $10,000 investment a year ago would now be worth $14,000.

It’s rare for a blue-chip to rise as much as that. So, we’re going to take a look at what has driven the ASX mining share to deliver such a large return.

Big increase in profitability

The market usually values a business based on how much net profit it’s making and could generate for the foreseeable future.

Many businesses have fairly consistent business models that allow them to generally and steadily grow profit each year. I’m thinking of names like Wesfarmers Ltd (ASX: WES), Telstra Group Ltd (ASX: TLS) and Commonwealth Bank of Australia (ASX: CBA). 

But, Fortescue’s profit generation can change significantly because of shifts in the commodity price.

It has a certain level of production costs per tonne of iron ore, regardless of whether the iron ore price is US$80 per tonne or US$180 per tonne. Therefore, when the iron ore price rises, most of that additional revenue can turn into operating profit (EBITDA) and net profit (aside from paying more to the government).

So, a relatively small change in the commodity price can significantly boost its profitability, which we saw in the FY26 half-year result, which also boosts the Fortescue share price.

During HY26, the hematite (iron ore) realised price improved by 7% to US$90.87 per tonne and the volume of ore sold increased by 4% to 100.2mt. This led to a 10% rise in revenue to US$8.4 billion, a 23% rise in underlying EBITDA to US$4.5 billion, a 23% increase in attributable net profit to US$1.9 billion and a 32% rise in operating cash flow to US$3.2 billion.

According to Trading Economics, since 31 December 2025, the iron ore price per tonne has risen by another couple of dollars to US$109 per tonne.

Compared to 12 months ago, the iron ore price has gone up by approximately US$10 per tonne and I think that goes quite a long way to explain the gain of the Fortescue share price, along with the recovery of investor confidence following announced US tariffs on China in the first half of 2025.

Where to next for the Fortescue share price?

The next 12 months could largely depend on what happens with the iron ore price, though copper could play an increasingly important part if Fortescue continues expanding its copper project portfolio.

According to CMC Invest, of nine analyst ratings in the past three months, the average price target is $19.37. That implies a possible double-digit fall from where it is today, with in the next 12 months.

So, it seems there are better ASX share opportunities out there at the moment.

The post $10,000 invested in Fortescue shares 12 months ago is now worth… appeared first on The Motley Fool Australia.

More reading

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• Greatland Resources secures Havieron approvals, eyes next steps
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• ASX 200 hits 2-week high as miners lead the charge

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 positions in and has recommended Telstra Group. 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.

Flight Centre Travel Group Ltd (ASX: FLT) shares are sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) travel stock closed yesterday trading for $10.28. In early morning trade on Tuesday, shares are swapping hands for $10.14 apiece, down 1.4%.

For some context, the ASX 200 is down 0.6% at this same time.

This underperformance follows a trading update, released this morning at Flight Centre’s Investor Day presentation.

Here’s what investors are mulling over.

Flight Centre shares dip on ongoing Middle East headwinds

The first three quarters of FY 2026, covering the nine months to 31 March, saw Flight Centre achieve some solid growth metrics. That included a 7.6% year-on-year increase in total transaction value (TTV), which reached $19.5 billion.

Today Flight Centre shares look to be catching some headwinds after the company reiterated that its early fourth quarter performance (Q4 FY 2026) has been “heavily impacted by Middle East tensions”.

Management noted these impacts are continuing into May, primarily hitting its leisure business. The company estimates that the conflict already shaved off some $10 million in profits in April, driven by increased refunds.

And with the busier travel season kicking in, the company expects to see an even bigger negative impact in the second two months of Q4.

According to management:

May and June are typically stronger leisure trading months and ongoing volatility leading to cancellations, refunds and reduced forward bookings could be expected to have greater impact in those months

Then there’s the rising Aussie dollar.

Currently trading for 71.7 US cents, the Aussie dollar has appreciated by 10.6% over the last 12 months.

This could also pressure Flight Centre shares, with the company noting that the Australian dollar’s strength will impact its Q4 overseas profit translation compared to last year.

On a more positive note, the ASX 200 travel agency said its corporate business has not been significantly impacted by the outbreak of the Iran war. The company added that it is “monitoring possible flow on effects from higher airfare pricing and macro-economic factors if volatility continues”.

Management noted that any negative impacts to Flight Centre’s corporate business will more likely arise in early FY 2027.

Flight Centre said it is responding to the more difficult conditions by focusing on cost discipline, with its cost margin declining to 9.2%.

The company is also promoting short to mid-haul international and domestic travel itineraries to increase its market share. And management said Flight Centre is preparing for a rebound in demand as “conditions stabilise”.

With today’s intraday losses factored in, Flight Centre shares are down 32.3% in 2026, trailing the 0.9% year to date losses posted by the ASX 200.

The post Down 32% this year, why are Flight Centre shares sinking again today? appeared first on The Motley Fool Australia.

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

Goodman Group (ASX: GMG) shares are catching the eye on Tuesday.

In morning trade, the industrial property giant’s shares are down over 5% to $28.73.

Why are Goodman shares tumbling?

Investors have been selling the company’s shares following the release of its third-quarter operational update.

Goodman released a comprehensive update, which revealed how the company is performing across its industrial property and data centre operations.

It notes that its data centre program continues to advance, with development activity and capital partnerships positioned to deliver at scale into strong customer demand across supply-constrained metro markets. Pleasingly, its projects are on track and customer commitments are at an advanced stage.

Goodman’s global power bank has increased to 6.4GW, with 3.6GW of secured power and 2.8GW in advanced stages of procurement.

The company is expecting to have 0.5GW of powered shells and fully fitted projects in work in progress (WIP) by June 2026 and total data centre WIP of >$14 billion.

Looking at its property investments, management revealed that underlying property fundamentals remain stable. This is being underpinned by low vacancy, rental growth, and limited new supply across its markets.

In addition, strong rental reversions from passing to market continue to drive like-for-like (LFL) net property income (NPI) growth. Market rental growth was slightly positive on average.

And while LFL reversion from passing to market in China was negative during the quarter and may continue as rents reset, management believes the China market fundamentals in its locations have stabilised.

This ultimately led to annual LFL NPI growth of 4.1% (6.1% ex Greater China), portfolio occupancy of 95.7% (97% ex Greater China), and a stable total portfolio at $87.1 billion.

Outlook

The company’s CEO, Greg Goodman, provided an update on its guidance, revealing that he expects Goodman to at least deliver on expectations. He said:

The Group set a target of 9% Operating EPS growth for FY26 and is currently on track to deliver at least this level of performance.

Goodman also spoke positively about the company’s outlook. He added:

The Group has progressively repositioned its portfolio toward large, infrastructure-scale industrial assets and data centres. At the same time concentrating on urban infill logistics and low latency sites in major metro data centre markets. These sites are located where demand is most durable and are becoming harder to replicate. The focus remains on positioning the portfolio to meet the evolving requirements of customers across both asset classes.

Hyperscale capex is accelerating, with our metropolitan portfolio positioned at the centre of cloud and AI demand, and the shift towards low-latency dependant AI inferencing. Supply remains constrained by grid capacity, water availability, site complexity and capital intensity. With secured power and water, significant capital capacity and projects ready to commence, customer discussions are advancing across our sites, and we are well positioned to build into this current demand and capture future growth.

It seems that the market was looking for an earnings guidance upgrade with today’s update, and the lack of one has put pressure on Goodman shares.

The post Why are Goodman shares tumbling 5% today? appeared first on The Motley Fool Australia.

More reading

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

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) shares are on the move on Tuesday.

In morning trade, the ASX 200 stock is up 9% to $30.07.

This follows the release of the medical device company’s FY 2026 results before the market open.

ASX 200 stock jumps on results day

For the 12 months ended 31 March, Fisher & Paykel Healthcare reported a 14% increase in total operating revenue to NZ$2.31 billion.

A key driver of this was its Hospital Products segment, which includes products used in respiratory, acute and surgical care. This side of the business reported revenue of NZ$1.51 billion, which is up 18% on the prior corresponding period. Sales of hospital consumables were up 16% over the prior financial year.

Commenting on the performance of its Hospital Products segment, the company’s managing director and CEO, Lewis Gradon, said:

Our Hospital business performed strongly across the portfolio of therapies globally. We were especially encouraged by consumables growth, given it occurred during a period in which hospital admissions for seasonal respiratory illnesses in the United States and other major markets appeared to be subdued compared to the previous year. This suggests that changing clinical practice continues to be a strong growth driver.

The ASX 200 stock’s Homecare Products segment, which includes products used in the treatment of obstructive sleep apnoea (OSA) and respiratory support in the home, delivered revenue of NZ$802.7 million. This was an 8% increase over the prior corresponding period. OSA masks revenue was up 7% for the full year.

Gradon commented:

Our latest mask ranges, the F&P Solo and F&P Nova, continued to drive OSA mask growth. Our newest offering, the F&P Nova Nasal, was launched in the United States this past January to a positive reception.

Fisher & Paykel Healthcare revealed that its gross margin improved to 63.7% during the year. This is an increase of 80 basis points or 122 basis points in constant currency. Management advised that this reflects the ongoing progress of its continuous improvement initiatives. It also includes the approximately 90-basis-point impact in constant currency of US tariffs on hospital products sourced from New Zealand.

This ultimately led to the ASX 200 stock delivering a 24% increase in net profit after tax to NZ$469.5 million for FY 2026.

Outlook

Management is expecting further growth in FY 2027.

It has provided guidance of FY 2027 operating revenue in the range of approximately NZ$2.45 billion to NZ$2.57 billion, and net profit after tax of NZ$500 million to NZ$550 million. This represents annual growth of 6% to 11% and 4.3% to 14.7%, respectively.

It notes that this guidance includes an estimated 50-basis point net impact to its gross margin from US tariffs and the Middle East conflict.

Commenting on its outlook, Gradon said:

The growth we have achieved is uncommon, and we do not take it for granted. The key now is to sustain that momentum – continuing to innovate, improve and work closely with our customers to create lasting value.

Our products and therapies supported the care of around 24 million patients last year. This impact reflects the efforts of many thousands of people working toward a common purpose of improving outcomes. We want to acknowledge the people of Fisher & Paykel Healthcare for their commitment, and we also want to thank our clinical partners, customers, suppliers and shareholders.

The post Guess which ASX 200 stock is jumping 9% on FY26 results appeared first on The Motley Fool Australia.

More reading

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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.

Retirement planning has a way of feeling more precise than it really is.

There are averages. There are benchmarks. There are calculators. There are projections that stretch neatly across 20, 30, or even 40 years.

But real life is rarely that clean.

Markets fall. Inflation bites. Healthcare costs rise. Plans change. Adult children may need support. A home may need repairs. A dream retirement may cost more than expected.

That is why the question is not simply whether Australians have enough superannuation to retire comfortably.

The better question may be: Have they built enough margin of safety?

The average balance may not be enough

According to figures cited by the Association of Superannuation Funds of Australia (ASFA), the average superannuation balance for Australians aged 55 to 59 is $319,743 for men and $242,945 for women.

That is a meaningful amount of money.

However, it is not obviously enough to fund a comfortable retirement by itself.

ASFA estimates that a comfortable retirement requires around $54,840 per year for a single person and roughly $77,375 per year for a couple. Its suggested lump sum is about $630,000 for singles and $730,000 for couples, assuming home ownership and some Age Pension support later in retirement.

On those numbers, many Australians in their mid-to-late 50s may still have a sizeable gap.

And that is before adding a buffer.

Why a margin of safety matters

In investing, a margin of safety means allowing room for things to go wrong.

That same idea applies to retirement.

A person who reaches retirement with just enough may be vulnerable if the numbers shift against them. A person who retires with more than enough has options.

That margin can matter in three big ways.

The first is investment returns. A retirement plan based on strong returns may look fine on paper. But returns do not arrive in a straight line. A poor run of markets early in retirement can have a major impact if retirees are drawing from their portfolio at the same time.

The second is inflation. Even modest inflation can steadily reduce purchasing power over time. A retirement income that feels comfortable today may feel tighter 10 years from now if living costs rise faster than expected.

The third is behaviour. When people feel behind, they can disengage. That may mean ignoring super, leaving money in unsuitable investments, or failing to use available contribution rules before retirement.

None of that is ideal.

The late 50s can still be powerful

The optimistic part is that 55 is not necessarily too late.

For many Australians, the decade from 55 to 65 could be one of the most important wealth-building periods of their lives.

Income may still be strong. The mortgage may be smaller. Children may be more independent. And the super balance may finally be large enough for investment returns to make a meaningful difference in dollar terms.

That is why this period should not only be viewed as the final lap before retirement. It may be the decade where the retirement outcome is most improved.

Continued employer contributions can help. Salary sacrifice may help some Australians boost their super in a tax-effective way. Catch-up concessional contributions may also be available for some people with total super balances below the relevant threshold.

For eligible homeowners, downsizer contributions may also become part of the picture later in life. That can potentially allow proceeds from selling a family home to be contributed into super, subject to the rules.

Investing well matters

One of the biggest risks may be becoming too conservative too early.

At 55, many Australians could still have a decade or more before retirement, and potentially 25 to 35 years of life after that. That is still a long investment horizon.

Cash and defensive assets have a role. But if returns fail to keep pace with inflation over long periods, the real value of retirement savings can fall behind.

That does not mean taking reckless risks. It means understanding what the superannuation balance is invested in, whether the asset allocation suits the timeframe, and whether the portfolio has enough growth potential to support a long retirement.

Foolish takeaway

Retiring comfortably is not just about reaching a number.

It is about building enough flexibility to handle the things that do not appear neatly in a spreadsheet.

The average superannuation balance of a 55-year-old may not be enough to retire comfortably today. But for many Australians, the window is not closed.

The next decade could still provide time to contribute more, invest thoughtfully, review strategy, and build a stronger buffer.

In retirement, “just enough” can be fragile.

A margin of safety may be what turns retirement from a financial balancing act into something closer to genuine peace of mind.

The post Why your superannuation may need a bigger buffer in 2026 appeared first on The Motley Fool Australia.

More reading

• $10,000 invested in Fortescue shares 12 months ago is now worth…
• Down 32% this year, why are Flight Centre shares sinking again today?
• Why are Goodman shares tumbling 5% today?
• Guess which ASX 200 stock is jumping 9% on FY26 results
• This ASX 300 share trades at 6x FY27 earnings and has 70% upside: Broker

Motley Fool contributor Leigh Gant 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.

If you are on the hunt for undervalued ASX 300 shares, then Bell Potter thinks it has found one.

Let’s see what the broker is recommending to its clients.

Which ASX 300 share?

The share that Bell Potter thinks is dirt cheap is energy exploration and development company Amplitude Energy Ltd (ASX: AEL).

It highlights that the ASX energy share has just signed a deal to acquire 50% of the Artisan discovery from ASX 200 energy producer Beach Energy Ltd (ASX: BPT). It appears to see this as a good transaction for the company, de-risking the East Coast Supply Project (ECSP). It said:

AEL will acquire 50% of the Artisan discovery (62PJ gross 2C Contingent Resource, VIC/L35 Production Licence granted) from Beach Energy (BPT, Hold, TP$1.15/sh) for $58m in upfront cash consideration plus a $3.75/GJ royalty. The acquisition is fully funded from existing cash and available debt. O.G. Energy will lift its 40% stake in Artisan to 50% on the same terms, aligning interests; OGE is JV partner in AEL’s existing Otway Basin assets.

Artisan derisks the ECSP through adding scale and blending opportunities to the existing Annie discovery (65PJ gross 2C Contingent Resource) and less reliance on exploration success (at Juliet and Nestor). Artisan more than doubles ECSP gas reserves, enabling 60TJ/day gross production over an initial 5-year period. Artisan gas with low inerts (less than 2%) can blend Annie gas (7.6% inerts) to within pipeline specifications without material processing capex.

Potentially undervalued

Based on Bell Potter’s current earnings estimates, Amplitude Energy’s shares are trading at just 6.4x FY 2027 earnings.

It sees this as undervaluing its shares and has put a buy rating and $2.90 price target on them. Based on its current share price, this implies potential upside of approximately 70% for investors over the next 12 months.

Commenting on its investment thesis for the ASX 300 share, Bell Potter said:

Debottlenecking at Orbost should incrementally lift near-term production. AEL’s realised prices should incrementally lift as new Gas Sales Agreements are signed. Spot gas prices in peak seasons provide some upside. AEL’s ESCP is fully funded and should lift group production from 2028, with the development of two existing discoveries and at least one relatively low-risk exploration prospect. The ESCP utilises latent capacity in existing pipeline and processing infrastructure.

The post This ASX 300 share trades at 6x FY27 earnings and has 70% upside: Broker appeared first on The Motley Fool Australia.

More reading

• Guess which ASX 300 energy stock just announced a major Beach Energy gas acquisition
• This beaten-down ASX 200 energy share is slipping despite a major update
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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.

After a sharp sell-off across the ASX real estate sector in 2026, investor attention has begun to shift toward the possibility of opportunity emerging from the downturn. 

The S&P/ASX 200 Real Estate Index (ASX: XRE) is down over 10% year to date. 

Real estate investment trusts (REITs) and property-linked stocks have been heavily affected by higher interest rates, tighter credit conditions, and reduced property valuations, leading to significant share price declines. 

However, for long-term investors, these periods of weakness can also signal potential value, particularly in high-quality assets with strong rental income and solid balance sheets. 

Why invest in REITs

A real estate investment trust (REIT) is a company that owns and operates property assets that typically produce income.

These companies can focus on commercial real estate, such as offices, hospitals, shopping centres, warehouses, and hotels. 

Others specialise in residential property investment, such as aged care villages and apartment buildings.

Many investors see REITs as a way to gain exposure to property markets without directly buying physical real estate, while receiving regular income and potential long-term capital growth.

A new report from Bell Potter has identified several REITs with long-term upside. 

Here are three options that received buy recommendations from the broker. 

Goodman Group (ASX: GMG)

Goodman Group is an integrated property group with operations in 14 countries. It specialises in industrial and commercial properties, owning, developing, and managing a global portfolio worth around $80 billion.

After falling significantly to start the year, it has been on a steady recovery. 

Bell Potter currently has a buy recommendation and $36.45 price target on the real estate stock. 

This indicates an upside potential of more than 18%. 

It has been receiving plenty of positive attention from other brokers too. 

Morgan Stanley put an overweight rating and $36.15 price target on this property company’s shares last week. 

Aspen Group Ltd (ASX: APZ)

Aspen Group engages in property investment and development. 

Its share price has dipped more than 12% year to date, however Bell Potter also sees upside for this real estate stock. 

In its weekly REIT report, the broker placed a buy recommendation and $6.50 price target on the company. 

From yesterday’s closing price of $4.80, this indicates an upside potential of 35%. 

Cedar Woods Properties Ltd (ASX: CWP)

Cedar Woods is an Australian property development company. Its principal interests are in urban land subdivisions and built-form development for residential, commercial, and retail purposes.

Its share price has fallen 20% year to date, but is also tipped to recover. 

Bell Potter currently has a buy recommendation and $9.65 price target on this real estate stock. 

From current levels, this implies a 40% upside. 

It’s worth noting the company also offers an attractive dividend yield projected to be over 5% in the future. 

The post Why these ASX real estate stocks could be sleeping giants appeared first on The Motley Fool Australia.

More reading

• Why are Goodman shares tumbling 5% today?
• Goodman Group reports $87.1 billion portfolio value as data centre demand grows
• 5 things to watch on the ASX 200 on Tuesday
• 2 ASX growth shares that could be long-term winners
• 2 high-quality ASX 200 shares experts rate as buys

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

Looking for big potential returns and have a high tolerance for risk? If you answered yes, then it could be worth getting acquainted with the ASX tech share in this article.

That’s because if the team at Bell Potter is on the money with its recommendation, this tech stock could be destined to deliver big returns over the next 12 months.

Which ASX tech share?

The share that has caught the attention of Bell Potter is Alcidion Group Ltd (ASX: ALC).

It is a commercial healthcare IT company with a cloud-native, modular software platform aimed at improving efficiency in hospitals, supporting interoperability, allowing for improved communication and task management, and delivering critical clinical decision support at the point of care to improve patient outcomes.

Bell Potter notes that the company has signed a major seven-year contract with UHSussex. It said:

ALC have confirmed the signing of the previously announced EPR contract with UHSussex. Financial details are largely in line with guidance from the Jan 2026 announcement when ALC was confirmed as the preferred supplier.

Key details are: (1) ~$35m total contract value (TCV) over initial 7-year period; (2) Includes rights to extend term from 7 to 10 years, which would add $14m TCV (i.e. totalling $49m over 10 years); (3) Includes option to add further modules, which would further increase TCV; (4) $8.5m revenue of the ~$35m TCV will be recognised within FY26 (an upfront capital license fee and part of the implementation fees); and (5) Implementation will take ~18 months in total with initial go live targeted for June 2027.

The broker believes that this positions the ASX tech share to deliver on its earnings guidance for FY 2026. It adds:

UHSussex is the third UK customer to adopt ALC’s EPR offering, providing further credibility and ‘referenceability’ in the UK for future competitive tenders. The $8.5m upfront/implementation component increases FY26e contracted revenue to $52.3m based on the prior Q3 FY26 update and provides increased confidence the EBITDA guidance of >$5.0m will be achieved.

Big potential returns

According to the note, Bell Potter has retained its buy rating and 16 cents price target on the ASX tech share.

Based on its current share price of 11 cents, this implies potential upside of 45% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

The changes to FY26 forecasts have negligible impact on valuation outputs, hence our $0.16 PT and Buy recommendation remain unchanged. Upcoming catalysts are most likely to come from any new additional contracts announced over the coming months, whether in the usual quarterly updates or out of cycle.

The post Why this growing ASX tech share could have 45% upside appeared first on The Motley Fool Australia.

More reading

• Bell Potter says this small-cap ASX share could rise 50%
• This ASX healthcare stock could be set to rise 50%

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