Category: Stock Market

Charter Hall Group (ASX: CHC) this week upgraded its expected earnings for FY26 by a further 3%, bringing the expected increase over last year’s result to 26.5%.

Not surprisingly, the share price reacted positively to the news; however, two brokers that have issued research notes on the shares this week think there are more gains to be had.

Strength through diversification

In terms of where the growth is coming from, the company said its institutional property funds management platform continued to grow, “underpinned by increased allocations from existing clients and new investor gross equity inflows across institutional pooled funds, partnerships, and mandates”.

Charter Hall added:

Financial year-to-date gross equity inflows total $6.5 billion, representing an increase of $1.7 billion since 1H FY26. Growth has been driven by investor customers increasing allocations within existing investments, as well as diversification into additional Charter Hall managed strategies and sectors. Recent client activity has resulted in the addition of 25 new institutional investors to the platform over the last 18 months, including several institutions making initial allocations to the Australian property sector, supporting long term growth potential.

Charter Hall Managing Director David Harrison said regarding the upgrade:

Australia continues to attract institutional capital as a stable and highly dependable real asset market. We are seeing increased allocations from existing institutional investors alongside new domestic and offshore inflows seeking diversified exposures. The resilience of unlisted property returns, and inflation hedge characteristics continue to support strong investor demand, with Australia remaining a preferred destination for global capital.

Shares looking cheap

Broker UBS said in its note to clients that Charter Hall had delivered a total return of negative 17% over the past six months, worse than the broader industry’s negative 10%.

They said Charter Hall’s underlying price-to-earnings (P/E) ratio now sat below its 10-year average.

UBS said they “expected improvement in retail investor flows following the Federal Budget, which improves the relative attractiveness of commercial vs. residential property investment and will drive improved flows into property funds businesses, in our view”.

UBS has a price target of $24.75 on Charter Hall shares compared with $20.22 at the time of writing.

Morgan Stanley said in its note that Charter Hall had defied the view that higher rates meant less flows into real estate.

The analyst team said the company announced a number of positive developments which were on foot and “reading between the lines, it doesn’t seem like the company has mid-single digit growth on its mind”.

Morgan Stanley has a price target of $26.89 on Charter Hall shares.

Charter Hall is valued at $9.75 billion.

The post After an earnings upgrade, 2 brokers weigh in on the value of Charter Hall shares appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Charter Hall, Coronado Global, Meeka Metals, and Qantas shares are racing higher today
• Guess which ASX 200 share is racing 5% higher after upgrading its earnings guidance
• Charter Hall lifts FY26 guidance as capital inflows surge
• 7 ASX shares with strengthened buy ratings this week

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

It certainly has been a stunning 12 months for Electro Optic Systems Holdings Ltd (ASX: EOS) shares.

During this time, the ASX defence and space stock has risen over 400%.

This would have turned a $1,000 investment into over $5,000.

But is it too late to buy EOS shares now? Let’s see what Bell Potter is saying about this high-flying ASX stock.

What is the broker saying?

Bell Potter notes that the company has announced the completion of its acquisition of MARSS. It said:

EOS has completed the acquisition of MARSS Group, following a $150m placement to institutional investors (excl. $25m SPP) and $40m strategic investment from Calidus LLC and another unnamed investor. The institutional placement was well supported by existing and new institutional investors at a price of $8.00/sh. The proceeds from the raise are to be used to fund the $50m upfront consideration of the MARSS acquisition, as well as growth opportunities in C-UAS, MARSS and Space Control, as well as long lead parts inventory and working capital flexibility.

The broker is positive on the transaction, highlighting that MARSS NIDAR is performing better than it was expecting in the Middle East.

MARSS’ C2 NIDAR offering is performing better than our initial expectations with the company securing €102m in new contracts from an existing Middle East customer to deliver a country-wide UAS detection and mitigation capability, with NIDAR’ C2 software at its core. With MARSS prevailing over two competing primes, the award reflects NIDAR’s demonstrated effectiveness in mitigating Shahed drone and missile attacks in the current Middle East conflict.

It then adds:

The strategic importance of the MARSS acquisition exceeds its near-term financial impact. EOS now has a technically validated and battle-proven C2 offering with a leading position in the Middle East. The integration of NIDAR into a nation’s C-UAS stack is sticky in nature and should reap benefits for EOS many years following initial contract terms. Further, MARSS gives EOS the ability to integrate its existing suite of effectors and compete for C-UAS programs as a prime contractor.

Should you buy EOS shares?

According to the note, Bell Potter has retained its buy rating on the company’s shares with an improved price target of $10.60 (from $10.40).

Based on its current share price of $8.89, this implies potential upside of 19% for investors over the next 12 months.

Summarising its investment thesis, the broker concludes:

EOS is positioned as a market leader across many C-UAS verticals and is leveraged to increasing budget allocations to C-UAS technologies. EOS possess a catalyst rich next 12 months, with potential HELW, C2 and Slinger awards on the horizon.

The post Up 400%+: Does Bell Potter think EOS shares can keep rising? 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 Electro Optic Systems. 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.

A decade is a long time in markets. Trends that look small today can become mainstream.

Technologies that feel early can become essential. And companies that dominate one niche can end up shaping entire industries.

That is why some thematic ASX exchange traded funds (ETFs) can be interesting for patient investors. They will not move smoothly every year, but they can provide exposure to structural changes that may still have a long way to run.

Here are three ASX ETFs that could be worth buying and holding for the next 10 years.

Betashares S&P/ASX Australian Technology ETF (ASX: ATEC)

The Betashares S&P/ASX Australian Technology ETF offers a way to back the ASX companies trying to modernise old industries.

This is not just a fund full of tech stocks in the narrow sense. It includes businesses reshaping how cars are sold, how medical images are read, how freight moves around the world, how companies manage data, and how households interact with digital services.

Among its holdings are Computershare Ltd (ASX: CPU), Nextdc Ltd (ASX: NXT), and Xero Ltd (ASX: XRO). These are very different businesses, but each is tied to the broader shift toward more digital, automated, and data-rich operations

The ASX tech sector can be volatile, and the fund has been hit by weaker sentiment toward growth shares. But that weakness could be part of the opportunity for investors who believe Australia’s best technology companies still have room to scale. It was recently recommended by the team at Betashares.

Betashares Global Cybersecurity ETF (ASX: HACK)

The Betashares Global Cybersecurity ETF is focused on one of the less glamorous but most important parts of the digital economy.

Every new app, cloud platform, connected device, payment system, and artificial intelligence (AI) tool creates more data and more potential points of attack. That makes cybersecurity less of an optional IT expense and more like digital insurance.

This fund gives investors exposure to global specialists such as CrowdStrike (NASDAQ: CRWD), Palo Alto Networks (NASDAQ: PANW), and Fortinet (NASDAQ: FTNT).

The good news for its holdings is that cyber security risk is unlikely to disappear. If anything, it will become more complex as businesses grow more dependent on cloud computing, automation, and remote access.

Individual cybersecurity companies can be difficult to pick because threats, products, and customer needs evolve quickly. This ASX ETF spreads exposure across a group of companies working on different parts of the security stack.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Finally, the Betashares Global Robotics and Artificial Intelligence ETF is a way to invest in machines doing more of the heavy lifting.

That does not just mean humanoid robots or futuristic factories. It includes sensors, automation equipment, surgical systems, industrial controls, and the chips that help machines process more information.

Key holdings include Keyence, ABB (SWX: ABBN), and FANUC (TYO: 6954).

This gives the fund a different flavour from many AI-focused investments. Rather than being only about software, it has exposure to the physical side of automation.

That could be important over the next decade as companies try to improve productivity, manage labour shortages, and make supply chains more efficient.

It was also recently recommended by the team at Betashares.

The post 3 exciting ASX ETFs to buy and hold for 10 years appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Nextdc and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Abb, BetaShares Global Cybersecurity ETF, CrowdStrike, Fortinet, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Fanuc and Palo Alto Networks. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended CrowdStrike. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are sitting on a $50,000 savings balance and want to turn it into passive income, then the share market could be the place to do it.

But if you want to pull in $10,000 of income from ASX shares, it won’t happen overnight.

Here’s how I would try to achieve this goal.

Don’t rush the passive income stage

If I had $50,000 of savings and wanted to eventually generate $10,000 a year of passive income, I would not immediately chase the highest dividend yields on the ASX.

That can be tempting. A 9% or 10% yield might look like a shortcut. But very high yields can sometimes be a warning sign that the market expects the dividend to be cut.

Instead, I would split the journey into two stages.

The first stage would be about growing the portfolio. The second stage would be about turning that larger portfolio into income.

I think that distinction is important. Trying to force $10,000 of income out of $50,000 would require a 20% yield. I do not think that is realistic or sensible for most investors.

But growing $50,000 into $200,000 over time is a much more practical target.

Let compounding work for you

Let’s assume an investor can achieve an average annual return of 9% from a diversified ASX share portfolio.

That is not guaranteed. Some years will be much better, and some years could be negative. But as a long-term assumption, it is a useful way to understand the power of compounding.

At a 9% annual return, $50,000 could grow to around $200,000 in just over 16 years, assuming returns are reinvested and no extra money is added.

And if you add more money along the way, the timeline could be shorter.

What I’d invest in

During the growth stage, I would focus on quality rather than just income.

That could include a mix of ASX blue-chip shares, growth shares, and exchange-traded funds (ETFs). I would want businesses with strong balance sheets, durable earnings, and the ability to reinvest for growth.

This could mean an ETF like iShares S&P 500 AUD ETF (ASX: IVV) or an ASX share like Wesfarmers Ltd (ASX: WES).

I would also want diversification. Relying on one bank, one miner, or one high-yield dividend share would make the plan more fragile than it needs to be.

Once the portfolio grows to reach around $200,000, I would then start thinking more seriously about passive income.

A 5% dividend yield on $200,000 would produce $10,000 a year in passive income. That could come from a mix of dividend shares, infrastructure stocks, listed property, and income-focused ETFs like the Vanguard Australian Shares High Yield ETF (ASX: VHY).

Some investors may also receive franking credits from certain Australian dividend shares, which could improve the after-tax outcome depending on their situation.

Foolish takeaway

I think the trick is not to ask a $50,000 portfolio to do a $200,000 portfolio’s job.

At the start, I would want the money working hard for long-term growth. Later, when the portfolio is large enough, the focus can shift more naturally towards income.

That approach requires patience, but it avoids the trap of chasing unsustainable yields too early. In my view, that is a much cleaner way to turn today’s savings into tomorrow’s passive income stream.

The post Got $50k of savings? Here’s how I’d turn that into passive income of $10k a year appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Catapult Sports, Guzman Y Gomez, and Wesfarmers shares
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• Why Fisher & Paykel Healthcare, GR Engineering, Kogan, and Wesfarmers shares are pushing higher

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 and iShares S&P 500 ETF. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield 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.

Having $10,000 to invest in the share market is a good problem to have.

The key is finding ASX 200 shares with strong business models and positive long-term growth outlooks.

To narrow things down, listed below are two ASX 200 shares that could provide investors with all the above.

Here’s what you need to know about them:

Breville Group Ltd (ASX: BRG)

Breville is one ASX 200 share that has quietly built a very impressive global business.

The company is best known for premium kitchen appliances, but the real attraction is the strength of its brand. Breville has shown it can take everyday categories such as coffee machines, ovens, and food preparation, then lift the customer experience through design, performance, and clever product development.

That is a great quality to have because premium consumer brands can be powerful when managed well. Customers are often willing to pay more for products they trust, particularly when the brand has a reputation for quality.

Breville also still has plenty of room to grow internationally. Its opportunity is not just selling more products in Australia. It is about expanding across larger offshore markets, broadening its product range, and deepening its presence with consumers who are willing to spend on better home experiences.

All in all, the company’s global brand, product discipline, and long-term market opportunity could make it one of the strongest consumer growth shares on the ASX.

WiseTech Global Ltd (ASX: WTC)

WiseTech Global is arguably one of the ASX 200’s standout technology shares.

The company provides the CargoWise logistics software used by freight forwarders, customs brokers, and supply chain operators around the world.

Global logistics is difficult, fragmented, and full of manual processes. Software that can make those workflows faster, more accurate, and more connected can become very valuable. This has underpinned significant annualised recurring revenue (ARR) growth over the past decade.

WiseTech also benefits from customer stickiness. Once a logistics business has built its operations around CargoWise, switching to another platform can be disruptive and risky.

The company’s valuation often reflects high expectations, so investors should expect share price volatility. But WiseTech has a large global market, a specialist software platform, and a long runway to keep expanding its role in global logistics.

And with its shares down heavily over the past 12 months, now could be an opportune time for investors to snap them up with a long-term mindset.

The post 2 of the best ASX 200 shares to buy with $10,000 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in 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.

Australian farmers will plant a smaller winter crop this year, according to Rabobank’s 2026/27 Australian Winter Crop Forecast.

Rabobank, which is a specialist agribusiness bank, says producers face mixed weather conditions and significantly higher input costs.

It estimates Australia’s winter cropping area will be 23.1 million hectares, down 8% on last year and 4.3% below the five-year average.

The Australian RaboResearch team predicts wheat cropping will fall 20.4% to 9.8 million hectares this season.

However, barley, canola and pulse plantings are forecast to increase.

Report author, Vitor Pistoia, a senior grains and oilseeds analyst at RaboResearch, said:

Australia enters the 2026/27 winter cropping season with a more uneven and weather-dependent cropping area than in recent years.

The season is opening with a clear geographic split across Australia’s cropping regions.

Conditions on the northern east coast, particularly in southern Queensland and northern New South Wales, have been dry through summer and early autumn, leaving limited topsoil moisture and delaying sowing.

Pistoia said lower rainfall was likely amid the high risk of a shift towards El Nino conditions this season.

He added that higher costs, particularly for fertiliser and diesel due to the Iran war, were influencing farmers’ decisions this winter.

These higher costs are encouraging shifts towards lower-input crops and contributing to a reduction in total cropping area.

Let’s take a look at experts’ ratings on three ASX agriculture shares.

Australian Agricultural Company Ltd (ASX: AAC)

Australian Agricultural Company shares have fallen 9.5% over the past 12 months.

Last week, Australian Agricultural Company reported a record operating profit of $71.6 million for FY26, up 23% year-over-year.

After reviewing the numbers, Bell Potter kept its buy rating in place on the ASX agriculture share.

The broker said:

AAC delivered a record operating performance that was understated, due to the inclusion of $9m in flood related costs.

While costs are currently experiencing inflationary pressure (grain and oil), continued strong pricing in core offshore markets, uplifts in grainfed cattle capacity (FY27-28e sales program) and a larger herd are reason for optimism in future periods.

Bell Potter reduced its 12-month price target from $1.95 to $1.85, implying a 43% potential upside from here.

Graincorp Ltd (ASX: GNC)

The Graincorp share price has tumbled 32% over the past 12 months.

After reviewing the company’s 1H FY26 results, Morgans downgraded the ASX agriculture share to a hold rating.

The broker commented:

GNC’s 1H26 result was weak but broadly in line with consensus at the NPAT level.

GNC reported a significantly larger than expected cash outflow and its core cash position was also lower than expected.

The era of special dividends now appears to be over. GNC reiterated its FY26 earnings guidance.

The outlook for the FY27 winter crop is one of caution given grain grower’s cost pressures and the BOM’s dry outlook.

GNC’s strategic assets are worth materially more than its current share price. However, given earnings look set to decline again in FY27, the stock is lacking share price catalysts, and we move to a HOLD recommendation.

The broker has a $5.62 price target, which still implies a potential 11% upside ahead.

Ricegrowers Ltd (ASX: SGLLV)

The Ricegrowers share price has lifted 11% over 12 months.

On The Bull, Mark Elzayed from Investor Pulse said the Sunrice brand owner had benefited from elevated rice prices and strong export demand.

However, he has a sell rating on this ASX agriculture share.

Elzayed explained: 

… we believe much of the good news is already reflected in the share price of this global group.

Moving forward, we expect earnings growth to moderate as global rice supplies normalise amid what we consider to be elevated input costs.

The company is up against strong competition in several markets.

Margins also face pressure from freight and currency volatility, potentially limiting near term upside.

The post Buy, hold, sell: Australian Agricultural Company, Graincorp, Ricegrowers shares appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Bronwyn Allen 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 Ricegrowers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many full-time working Australians have a great opportunity to become wealthier than some may think possible. Becoming a millionaire is not easy, but compounding should never be underestimated.

By regularly saving and putting money to work, investors can end up with a much larger pot of money compared to how much they put in.

Just having money in a high interest savings account can make a big difference.

Putting $100 per month under the mattress for ten years would be $12,000. According to the Moneysmart compound interest calculator, if the money earned a 5% interest rate, it’d be just over $15,000 – an extra $3,000, or an extra 25% in percentage terms!

That’s just putting the money into a bank account.

What about if the money had been invested in the share market and achieved the ultra-long-term return of 10% per year? That same $100 per month for 10 years would turn into $19,125.

That’s not $1 million though.

How someone on a $70,000 salary can become a millionaire

The cost of living certainly makes it harder to save when the essentials are more expensive. I won’t suggest that someone earning $70,000 will have significant room to invest each month, though that’s certainly possible for someone in a dual income household.

What if we assume that someone could save $1,000 per month and it earned an average of 10% per year over the long-term. Remember, there could be a decline in some years – that’s why it’s an average return.

In that scenario, an investor would have $191,000 after 10 years, $687,000 after 20 years and $1.06 million after 24 years. The last few years see significant progress because of compounding – if $900,000 grows by 10% that’s a $90,000 increase.

But, perhaps most importantly towards wealth-building is superannuation. The tax-efficient, mandatory system for retirement savings. Someone on an annual salary would contribute just under $5,000 (after the tax on the contributions) to their superannuation fund.

Adding in the superannuation would help shave a few years off reaching millionaire status.

If that Australian were just relying on mandatory superannuation contributions alone, and assuming they invest in an investment option (such as shares) that could return an average of around 10% per year, they’d get there in 32 years. Investment returns (after tax) will play an important role in how quickly that grows.

In my view, the future looks very bright for Aussies who regularly contribute money towards their wealth and invest in long-term, compounding options. Ideas like VanEck MSCI International Quality ETF (ASX: QUAL), Vanguard MSCI Index International Shares ETF (ASX: VGS) and excellent ASX growth shares are some of the names I look at to invest in for long-term returns.

The post How to become a millionaire on a $70,000 salary appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in VanEck Msci International Quality ETF. 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 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.

After an incredible 2024 and a decent 2025, Coles Group Ltd (ASX: COL) shares are having a bit of a rough 2026.

At the time of writing, this ASX 200 consumer staples stock is trading at $21.25 a share. That puts the company 0.42% below where it started the year, and down almost 8% from where Coles was at the end of April.

That’s a far cry from the 17% or so gain Coles enjoyed over 2024, and the approximate 12% return the grocer delivered last year. At least so far.

So does this mean Coles is undervalued at the current price of $21.25? Or is the company just descending back to the mean it has spent the past two years drifting away from? Today, let’s talk about whether I’d buy Coles shares at $21.25 each.

Is Coles a buy at $21.25 a share?

Let’s start with some numbers. At $21.25, Coles shares are trading on a price-to-earnings (P/E) ratio of 28.1. That means you are paying about $28.10 for every $1 of earnings Coles brought in over the past 12 months.

That appears quite expensive for an established, mature company like Coles, which sells consumer staples and is growing at a slow, steady pace. To illustrate, Coles is about as expensive as Google-owner Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), and Microsoft Corp (NASDAQ: MSFT), and more expensive than Meta Platforms Inc (NASDAQ: META).

All three of these American tech titans arguably have far more exciting growth runways ahead of them compared to Coles. That indicates Coles remains a pricey and unappealing investment at current levels.

But let’s see what kind of numbers the company has been posting.

At the start of this month, Coles posted its latest quarterly trading update. This revealed that the company had enjoyed revenue growth of 3.1% to $10.7 billion over the three months to 39 March 2026. That’s comparable to the 3.6% sales growth the company posted for its full 2025 financial year last August. That year saw Coles bring in a net profit after tax (NPAT) of $1.08 billion, up 2.4% from FY 2024.

These are all respectable numbers. However, they don’t justify an earnings multiple of 28 in my view. That implies growth will pick up substantially from these single-digit figures Coles has been recording of late. I don’t see a realistic path to that occurring.

As such, I don’t see many reasons to buy Coles shares at $21.25 each. Sure, income investors might appreciate Coles’ fully-franked dividend yield. But even that is sitting at an uninspiring 3.44% right now. All in all, I think there are better opportunities elsewhere for most ASX investors today.

The post Would I buy Coles shares at $21.25 each? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Meta Platforms, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Meta Platforms, and Microsoft. The Motley Fool Australia has recommended Alphabet, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A recent report has highlighted the broader economic conditions that are signalling we might be back in a value market. 

Value investing is an investment philosophy built on the belief that markets are not always efficient in the short term. However they tend to recognise true worth over time.

Why chase value?

At its core, value investing involves identifying companies whose shares are trading below what they are actually worth based on their underlying financial performance, assets, and long-term earning potential. 

This “true worth” is known as intrinsic value.

Rather than chasing trends or momentum, value investors deliberately look for situations where the market has overreacted. This can drive a stock price down below what the business fundamentals justify. 

These mispricings are treated as opportunities rather than risks.

The strategy is then to hold these undervalued assets patiently, waiting for the gap between market price and intrinsic value to close. When that happens, the share price “corrects” upward, and the investor realises a gain.

In essence, value investing is less about predicting the next market move and more about buying solid businesses at discounted prices and allowing time for market perception to catch up with economic reality.

Why value investing is back 

There are several signs that suggest we may be in the early stages of a value-driven market environment.

Inflation could remain elevated due to geopolitical tensions and high global debt, with oil prices still significantly above levels from six months ago. Historically, rising commodity prices have often signalled sustained inflation.

At the same time, value equities look relatively attractive, trading near long-term averages and at multi-year lows versus broader global equities, suggesting room for upside if conditions continue to support value.

Three ASX ETFs to target value

With these factors pointing towards a value market, there are several ASX ETFs investors may choose to target. 

Firstly, the BetaShares Ftse Rafi Australia 200 ETF (ASX: QOZ). 

This fund tracks the ASX 200, however they are measured by fundamental size rather than market cap.

This helps tilt the fund toward cheaper Australian companies based on sales, cash flow, dividends, and book value. It could be a strong fit if you want Australian large-cap value exposure. 

Turning our attention to international options, another fund to consider is Vanguard Global Value Equity Active ETF (ASX: VVLU). 

This fund seeks to provide long term capital appreciation through an active management approach that invests in global equity securities demonstrating value characteristics.

Finally, investors could also consider the VanEck MSCI International Value ETF (ASX: VLUE). 

It offers a portfolio of 250 international developed market large and mid-cap companies, with high value scores. 

The post We’re back in a value market: Here’s 3 ASX ETFs to target appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BetaShares Ftse Rafi Australia 200 ETF. 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.

Online retail has been a brutal place to operate over the past two years.

Cost of living pressures, subdued consumer confidence, and fierce competition have weighed on virtually every player in the sector.

Yet ASX retailer Kogan.com Ltd (ASX: KGN) just delivered a May business update that sent its shares surging 19% in a single session, and the numbers behind the jump deserve a closer look.

What the update showed

The May 2026 Business Update, covering the ten months ended 30 April 2026, was the strongest trading update the company has delivered in years.

Group Gross Sales rose 13.2% to $875.6 million, while Group Revenue grew 6.0% to $433.7 million.

Gross Profit climbed 11.1% to $177.9 million, and Group Adjusted EBITDA jumped 17.4% to $37.5 million.

Group Adjusted EBIT grew even more strongly, surging 25.4% to $26.9 million.

The Group Adjusted EBITDA margin reached 8.6%, placing Kogan towards the upper end of its FY2026 guidance range of 6% to 9%.

Active customers across the group grew 4% to 3.5 million.

The Mighty Ape turnaround is gaining traction

The most encouraging element of the update was not the Kogan.com core business, which has been performing well for several quarters, but the early signs of a recovery at Mighty Ape, the New Zealand subsidiary that had been a persistent drag on group earnings.

In the four months to 30 April 2026, Mighty Ape’s Gross Margin improved by 8.4 percentage points to 37.8%, a remarkable turnaround from the inventory-driven losses of the prior year.

Adjusted EBITDA losses at Mighty Ape fell 52.8% compared to the prior corresponding period, reflecting the success of the pivot toward a capital-light, higher-margin operating model.

CEO Ruslan Kogan said in the update:

Kogan.com continues to go from strength to strength, with strong growth across all key metrics. The early signs of the Mighty Ape turnaround are encouraging and we are focused on continuing to drive profitable growth across the group.

What Bell Potter thinks

Bell Potter rates Kogan shares as a buy with a price target of $5.50, describing the company as well-positioned to capture a growing share of Australia’s online retail market as digital penetration continues to rise.

The broker has noted that Kogan’s platform-based revenue streams, including Kogan FIRST memberships, Kogan Mobile, and the Kogan Marketplace, provide a more resilient and higher-margin earnings base than pure product sales.

Bell Potter also noted that these divisions are growing at a materially faster rate than the broader retail business.

The risks worth knowing

ASX retailer Kogan is not without its challenges.

The company remains loss-making on a reported basis due to non-cash items and the ongoing Mighty Ape integration costs.

Competition from global online retailers including Amazon Australia and Temu remains intense, and any deterioration in consumer spending would likely weigh on volumes quickly.

Foolish takeaway

Kogan.com’s May update confirmed that the business is firing on almost all cylinders, with core growth accelerating and the troubled Mighty Ape subsidiary showing its first real signs of recovery.

For investors who have been watching from the sidelines, today’s result makes the investment case harder to ignore than it has been in some time.

The post Why this ASX retailer just surged 19% on a strong May business update appeared first on The Motley Fool Australia.

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