Category: Stock Market

Treasury Wine Estates Ltd (ASX: TWE) and Temple & Webster Group Ltd (ASX: TPW) have both been sold down heavily over the past 12 months. One is down around 45%, while the other has fallen around 75%.

That sort of weakness can be a warning sign, and investors should always ask why the market has lost confidence. 

But I also think both ASX 200 stocks now offer a more interesting risk/reward setup for patient investors.

Treasury Wine Estates shares

Treasury Wine Estates has been a frustrating investment over the past year are down 45% over the period.

The wine giant owns some valuable brands, including Penfolds, but the market has become more cautious on its outlook. Weakness in parts of the US wine market, inventory issues, and questions around execution have all weighed on confidence.

However, I still think this is a business worth watching closely.

Penfolds remains a powerful luxury wine brand, and I think that is the centrepiece of the long-term investment case. Luxury wine is not immune from economic pressure, but great brands can be difficult to replicate. They are built over many years through reputation, quality, distribution, scarcity, and consumer trust.

China is also important. Treasury Wine’s update last month pointed to strong Penfolds depletion growth in China over the Lunar New Year period, helped by demand for Bin 389 and Bin 407. That does not fix every issue overnight, but it suggests the China rebuild is still an important potential driver of future growth.

The company is also changing the way it operates, moving to a regional model designed to improve accountability and execution in each market. I do not think investors should give full credit for that until the benefits show up, but I like the intent. Treasury Wine needs sharper execution, more focused brand investment, and better consistency.

If management can stabilise the US, keep rebuilding China, and put more focus behind its best brands, I think Treasury Wine shares could recover strongly over the next few years.

Temple & Webster shares

Temple & Webster has had an even tougher time on the share market.

The online furniture and homewares retailer is down around 75% over the past 12 months. That is a brutal fall, and it shows how quickly investors can turn on a growth stock when consumer conditions deteriorate.

Furniture is a difficult category when households are under pressure. It is easy for shoppers to delay buying a new sofa, bed, or dining table when confidence is low.

But I think Temple & Webster still has a compelling long-term opportunity.

The company is trying to win share in a large furniture, homewares, and home improvement market. Its online model gives it a wide product range, while its drop-shipping approach can reduce the need to carry heavy inventory.

A recent trading update also showed management is willing to adjust quickly. The company has been rebalancing growth and profit, with changes to promotions, pricing, supplier support, marketing, and fixed cost growth. That is important because in a tough retail environment, flexibility can be valuable.

This is still a higher-risk stock. A weak consumer backdrop could last longer than expected as interest rates rise, competition is intense, and growth shares can remain out of favour when investors prefer safer earnings.

But a 75% fall changes the conversation. Temple & Webster does not need conditions to become perfect to deliver a better outcome from here. It needs to keep taking share, improve profitability, and show investors that the business can grow through a difficult cycle.

Foolish takeaway

Sharp share price falls usually come with a long list of concerns. That is why these opportunities are uncomfortable.

But investing is not only about buying businesses when everything looks clean. Sometimes the better setup appears when expectations have been cut, patience has disappeared, and the market is waiting for proof.

Treasury Wine and Temple & Webster still have work to do. I would not expect either recovery to move in a straight line. But with sentiment already so weak, I think both stocks are worth a closer look before the good news becomes more obvious.

The post 2 fallen ASX 200 stocks I think could recover strongly appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Temple & Webster Group. 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) has had a brutal 2026.

The stock has fallen more than 33% year-to-date.

Today, the stock trades at a price that values one of the world’s largest travel management companies at less than six times its pre-pandemic earnings peak.

The market has made its verdict clear.

But markets are not always right, and the case for Flight Centre shares deserves a much closer look than the share price suggests.

Why the selling has been so aggressive

Three forces have converged on Flight Centre shares in 2026.

The first is the disruption in the Middle East.

Management confirmed this week that Q4 FY2026 performance has been heavily impacted by Middle East tensions, with the leisure business absorbing an estimated $10 million profit hit in April alone from increased refunds and cancellations.

May and June, historically the strongest months for leisure bookings, now face a similar headwind.

The second force is the Australian dollar.

The AUD has appreciated over the past twelve months against the US dollar.

For a company that earns a significant portion of its revenue in foreign currencies, this represents a material earnings headwind that flows directly through to reported profit.

The third is momentum.

Once a stock falls far enough and fast enough, forced selling from funds, stop-loss triggers, and retail panic can take prices well below what fundamentals support.

That appears to be happening to Flight Centre right now.

But the business itself keeps delivering

Strip away the noise and the underlying operational picture looks considerably more encouraging.

For the nine months to 31 March 2026, Flight Centre reported a 7.6% lift in total transaction value to $19.5 billion and a 9.7% rise in underlying profit before tax to $226.4 million.

The corporate division, which now accounts for more than half of group TTV, is the real engine of the business.

FCM Travel, Flight Centre’s corporate brand, delivered record TTV in FY2025 and has continued to grow in FY2026.

Corporate Traveler recorded more than 20% TTV growth in the United States.

Furthermore, management reaffirmed full-year FY2026 underlying profit before tax guidance of $315 million to $350 million at the Macquarie Conference in early May, a range that would represent a record result for the company.

That guidance was maintained despite the Middle East impact being known at the time, implying a strong expected second-half recovery in the corporate segment.

What Macquarie thinks about Flight Centre shares

Macquarie retains an outperform rating on Flight Centre shares with a price target of $17.95, implying upside of approximately 86% from today’s price.

The broker described the Q3 update as reflecting strong corporate performance and pointed to ongoing cost discipline and productivity investment as medium-term earnings drivers.

At current prices, Flight Centre trades on a forward price-to-earnings ratio that looks cheap relative to its own history and to global travel management peers.

Flight Centre ended FY2025 with $12.3 billion in corporate TTV, a record, and with 12,411 employees after a deliberate restructuring that redeployed savings into AI and digital capabilities.

The AI and technology angle

One part of the Flight Centre story that rarely gets attention is the investment the company has made in technology over the past three years.

Flight Centre has deployed AI-powered tools across its corporate travel management platform, reducing the cost per booking and improving margins as scale increases.

Its recent US$5 million investment in Blockskye, a blockchain-powered corporate travel payments platform, signals management is thinking about the next five years, not just the next quarter.

These investments do not show up in today’s profit, but they demonstrate management’s willingness to innovate and find new future growth avenues.

Foolish takeaway

Flight Centre shares have been sold down to a level that prices in a lot of bad news.

The Middle East impact is significant but likely temporary.

The corporate division is growing at record pace.

Macquarie sees significant upside.

And a company reaffirming profit guidance while its shares trade at six-year lows is not usually the setup that ends badly for patient investors.

The market is selling Flight Centre shares.

History suggests that is often exactly the wrong time to follow the crowd.

The post Everyone is selling Flight Centre shares. Here is why that could be a mistake. 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 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.

Do you want to invest in ASX dividend shares, but don’t know where to start? Here are three of my top picks, all yielding 5.5% or more.

APA Group (ASX: APA)

Energy infrastructure giant, APA, owns and operates an extensive portfolio of gas, electricity, solar, and wind assets in Australia. 

APA is the major owner and operator of Australia’s gas distribution network, including pipelines, gas-fired power stations, and storage facilities, which transports more than half of Australia’s natural gas. 

The ASX dividend company is highly regarded for its strong and consistent dividend payments. It has been paying consistent distributions to shareholders for nearly 20 years, with revenue derived from long-term contracted infrastructure assets.  

APA paid an interim dividend of 27.5 cents in the first half of FY26 and is guiding a full-year dividend of 58 cents per security. That translates to a forward dividend yield of around 5.7%, partially franked, at the time of writing.

Amcor Plc (ASX: AMC)

Packaging giant Amcor makes and dispenses packaging products used for food, beverages, healthcare, nutrition, beauty, wellness, and consumer goods.

Because Amcor supplies essential packaging, it is widely regarded as a consistent defensive stock. Even during economic downturns, people still need to buy groceries and healthcare goods. It’s this defensive nature that means the company can earn stable, predictable revenue, which then allows it to pay a consistent dividend. 

Amcor has been paying dividends for decades, with a history of payouts dating back to at least the mid-1990s. The company currently pays dividends to shareholders quarterly in March, June, September, and December.

Earlier this month, Amcor announced it would pay shareholders US$0.65 per security in June, unfranked. This is equivalent to A$0.91 cents per security for Australian shareholders.

The ASX dividend company is forecast to pay a dividend of $3.62 per share in FY26. Based on the current share price of $54.45, that would represent a forward dividend yield of around 6.7% at the time of writing.

The forecast dividend is then expected to ease to $3.23 per share in FY27 and rise slightly to $3.30 per share in FY28. 

Universal Store Holdings Ltd (ASX: UNI)

Universal Store is an Australian youth fashion retailer that sells casual apparel, footwear, and accessories for men and women. The business targets 15 to 34-year-olds and sells its own private labels and other popular major brands such as Converse, Tommy Hilfiger, and Asics.

Retail companies are usually cyclical, but the company’s revenue growth is strong, and margins are impressive. Management has also continued expanding its presence and opening up more stores.

The company posted 14% growth in retail sales for the first half of FY26, across 43 weeks. For FY26, Universal expects group sales of $368 million to $375 million, compared with $333.3 million in FY25. Underlying EBITA is expected to land between $61.5 million and $64.5 million, up from $54.6 million last year. At the mid-point, that implies sales growth of 11.5% and underlying EBITA growth of 15.4%.

The solid figures mean Universal is able to pay a consistent dividend payment to shareholders. The company paid its first dividend to investors in 2021 and has maintained a consistent semi-annual dividend schedule ever since.

It most recently paid shareholders 26 cents per security in March, fully franked. Universal is forecast to pay a 36.3 cents per share dividend in FY26. Based on its current share price of $6.50, this equates to a dividend yield of around 5.6%, at the time of writing. 

The post 3 ASX dividend shares yielding 5.5% or more appeared first on The Motley Fool Australia.

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

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a poor session and dropped into the red. The benchmark index fell 0.4% to 8,657.8 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 to slip

The Australian share market looks set to edge lower on Wednesday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% lower. In the United States, the Dow Jones fell 0.25%, but the S&P 500 rose 0.6% and the Nasdaq jumped 1.2%.

Oil prices mixed

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down 3.4% to US$93.29 a barrel and the Brent crude oil price is up 3.3% to US$99.29 a barrel. This was driven by concerns over rising tensions between the US and Iran.

Goodman shares given buy rating

In response to the third-quarter update from Goodman Group (ASX: GMG), Bell Potter has retained its buy rating on the industrial property giant’s shares with a trimmed price target of $35.50. It said: “While we do have some question marks vis-à-vis leasing progress, extension of timelines and associated impact on earnings mix and booking of profits, the moat around the haves and have nots for scaled data centre players appears to be widening, recognising the scale and complexity of execution.”

Gold price softens

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Wednesday after the gold price dropped overnight. According to CNBC, the gold futures price is down 0.3% to US$4,510 an ounce. This reflects concerns that higher fuel prices will drive inflation and push interest rates higher.

Buy Life360 shares

Bell Potter thinks Life360 Inc. (ASX: 360) shares are undervalued. This morning, the broker has retained its buy rating on the location technology company’s shares with an improved price target of $33.00. It said: “Key focus for us is the Q2/H1 result in August and, firstly, a strong rebound in MAU growth but secondly, and more importantly, another quarter of strong paying circle growth where anything approaching or up around 200k again would be bullish in our view.”

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

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Motley Fool contributor James Mickleboro has positions in Goodman Group and Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Life360. The Motley Fool Australia has positions in and has recommended Life360. 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.

Cochlear Ltd (ASX: COH) shares have been smashed in 2026 so far. At the time of writing, the shares have tumbled 63% for the year-to-date. 

The shares dropped under the $100-market to a decade-long low of just $90 a piece in late-April, and after a brief rebound to around $101, they’ve tumbled again.

At the time of writing, Cochlear shares are changing hands at $97.18 a piece.

What happened?

Cochlear shares crashed in April after the ASX healthcare company downgraded its FY26 earnings guidance, citing weaker conditions across developed markets and softer demand. 

The update made waves as one of the worst earnings downgrades in the company’s listed history. 

The company cut its net profit guidance for FY26 to $290-330 million, down significantly from previous guidance of $435-460 million. The market was shocked at the update.

Weaker conditions and softer demand issues included hospital capacity constraints, lower referral activity which weighed heavily on surgical volumes in developed markets, higher cost-of-living which sees households have a lower fund for discretionary spending, and some operational headwinds.

Geopolitical volatility also played a part. Escalating conflicts in the Middle East resulted in order cancellations and created risks for delivery delays to several countries in the region.

Not only that but the guidance downgrade came off the back of a softer-than-expected half-year result in February this year. 

And as if the headwinds weren’t strong enough, the company has also endured a sector-wide rotation away from ASX healthcare shares this year, as global volatility, a weaker US dollar, higher US tariffs, and increased labour costs prompted investors to sell up their holdings. 

Why I think Cochlear shares are a bargain right now

After such a sharp sell off, I think the shares are now oversold and at $100 each, are trading well below fair value.

Despite the earnings downgrade, Cochlear remains a strong, globally dominant business.

The company is a global leader for implantable hearing devices. It has strong brand recognition and the long-term outlook is intact.

Ageing populations and more awareness around treatment options is expected to support demand over time.

And while the company’s short-term earnings have changed, forecasts suggest that there will see a recovery over the next one or two years.

What do the experts think?

It looks like analysts consider the share price sell off to be an overreaction, with consensus of an upside ahead.

TradingView data shows that eight out of 18 analysts have a buy or strong buy rating on the shares. Another nine have a hold rating and one rates the stock as a strong sell.

The average $130.70 target price implies a 35% upside at the time of writing. Meanwhile, some expect the share price to rocket another 75% to $170 a piece.

The post At under $100 each, Cochlear shares look like a bargain: Here’s why appeared first on The Motley Fool Australia.

More reading

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• Why Cochlear’s brutal 2026 selloff could be creating a once-in-a-decade opportunity
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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are big gains on the ASX and then there is Dateline Resources Ltd (ASX: DTR).

Over the past twelve months, the small-cap gold and rare earths explorer has risen approximately 210%.

This makes it one of the strongest performers among small-cap resources stocks on the ASX.

That gain reflects a combination of a surging gold price, a series of significant project milestones, and growing investor excitement about the company’s rare earths potential in California.

The story behind that run is interesting, but so are the risks that come with a stock that has moved this far, this fast.

What Dateline actually does

Dateline is an Australian-listed company focused on gold mining and rare earths exploration in California, United States.

Its flagship asset is the Colosseum Gold Mine, located in the Mojave Desert approximately 50 kilometres from the Nevada border.

The mine last operated in 1992, when the gold price was US$340 per ounce. At today’s gold price of approximately US$4,500 per ounce, the economics of restarting Colosseum look more promising, and that is the core of the investment thesis.

The bankable feasibility study delivered strong numbers, but the story has since become more complicated

The completion of Dateline’s Bankable Feasibility Study in April 2026 initially gave investors confidence, outlining an initial 10.4-year production plan averaging 75,400 ounces per year in the first six years, an NPV of US$785 million at a 5% discount rate, and an internal rate of return of 49.5%.

The company raised $50 million from institutional investors at $0.40 per share shortly before the BFS release, taking its cash position to approximately $96 million and giving it the funding base to advance construction.

However, the share price has since fallen approximately 70% from its peak of $0.675 as a significant legal complication has emerged.

The National Parks Conservation Association has brought Federal Court proceedings in the United States relating to the Colosseum project, with 252 of Dateline’s 969 claims now subject to those proceedings.

Dateline has stated that its permitted activities at Colosseum continue under its existing Plan of Operations, that it was not named as a respondent in the proceedings, and that it believes its valid existing rights are intact.

However, the legal uncertainty has materially weighed on investor confidence, and construction commencement, originally targeted for mid-2026, now carries a less certain timeline.

For investors evaluating the stock today, the BFS economics remain impressive on paper, but the legal situation is the dominant variable that will determine whether those projections ever translate into actual gold production.

The rare earths angle adds another dimension

Beyond gold, Dateline has identified the potential for rare earth mineralisation within the broader Colosseum project, with geological mapping confirming a genetic link to the operating Mountain Pass rare earth mine located just 10 kilometres to the south.

In February 2026, the company acquired the Music Valley heavy rare earth elements project in California, adding 57 claims covering 1,140 acres in Riverside County.

With rare earths now classified as critical minerals by the US government and Mountain Pass the only operating rare earth mine in America, the geological proximity is attracting significant investor attention.

This opportunity is not without its risks

A 210% gain in twelve months demands serious scrutiny.

Dateline shares have experienced extraordinary volatility, especially with the legal issues mentioned earlier.

Dateline has not yet produced a single ounce of gold or rare earths commercially.

The BFS projections depend on the gold price remaining elevated, construction proceeding on schedule, and the legal and regulatory environment remaining navigable.

None of those outcomes are guaranteed.

Foolish takeaway

Dateline Resources is not for the faint-hearted.

The share price reflects an extraordinary amount of optimism about a project that has not yet broken ground, and the legal proceedings add a layer of uncertainty that investors must weigh carefully.

For highly risk-tolerant investors who have done their own deep research on the project fundamentals and the regulatory situation, the Colosseum story has merit.

For everyone else, this is a stock best admired from a safe distance.

The post Why this ASX gold stock has surged more than 210% in the past year and what investors need to know 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 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.

A low share price does not automatically mean a stock is cheap.

A company trading below $5 can still be expensive if the business is weak, the valuation is stretched, or the growth story is fading. 

But I do think this part of the market can contain some interesting opportunities.

The three ASX stocks in this article all trade below $5, which is less than the cost of a cafe latte, and I think they offer quality in different ways. 

They are not low-risk picks, but I would be happy to buy them with a long-term mindset.

Zip Co Ltd (ASX: ZIP)

The first ASX stock under $5 I would buy is Zip.

This is a very different business from the one many investors remember from the buy now, pay later (BNPL) boom. Back then, the market rewarded growth at almost any cost. That period is over.

I think today’s Zip story is more interesting because it is more disciplined.

The company has narrowed its focus, improved profitability, and strengthened its position in the United States. That US business is the part of Zip I find most appealing. It gives the company exposure to a large consumer market where flexible payments can still have a meaningful place, provided credit quality is managed well.

The key attraction for me is that Zip no longer needs investors to believe in a wild, loss-making expansion story. The investment case is now more about whether the company can keep growing revenue, manage bad debts, improve margins, and prove that its model can generate sustainable profits.

That does not remove the risks. Consumer credit can deteriorate quickly if economic conditions weaken. Competition remains intense. Regulation can also affect the sector.

But with Zip trading around $2.23, I think the market may still be underestimating how much the business has changed since the BNPL mania days.

SiteMinder Ltd (ASX: SDR)

Another ASX stock I like below $5 is SiteMinder. Its shares are currently trading around $2.85.

SiteMinder provides technology for hotels, helping them manage bookings, pricing, inventory, distribution channels, and revenue opportunities. That might sound niche, but I think it solves a real problem.

Hotels do not sell rooms through just one channel anymore. They need to manage online travel agents, direct bookings, wholesalers, metasearch, corporate travel, and other distribution partners. Prices can change quickly, and inventory needs to stay accurate across multiple systems.

That complexity creates a need for reliable software.

What I like about SiteMinder is that it sits inside a very practical workflow. Hotels want to fill rooms at the best possible rates while reducing admin and avoiding costly errors. A good platform can help with that every day.

I also think the travel technology opportunity still has room to grow. Many accommodation providers are still modernising their systems, and smaller hotels may need better tools as digital channels become more important.

SiteMinder is not risk-free either. It still needs to keep turning growth into stronger profits, and technology stocks can be volatile when investors become more cautious.

But I think the business has an attractive position in a large, global accommodation market.

Catapult Sports Ltd (ASX: CAT)

The third ASX stock under $5 I would buy is Catapult Sports. Its shares are currently trading around $3.45.

Catapult provides sports technology that teams use to monitor athlete performance, workload, tactics, and preparation. I like this business because its products can become part of the daily routine for professional sporting organisations.

Elite sport is no longer run on instinct alone. Coaches, analysts, medical teams, and performance staff all want better information. They want to know how hard athletes are training, how they are recovering, whether workloads are building too quickly, and how tactical decisions are playing out.

Catapult helps provide that data.

I think the opportunity is bigger than just selling devices. The more useful the platform becomes, the more it can support software revenue, video analysis, team workflows, and deeper customer relationships.

There is also a global angle. Sport is played everywhere, and professional teams are willing to invest in tools that can give them even a small edge.

The challenge is execution. Catapult needs to keep growing efficiently and showing that its technology can translate into a more profitable business over time.

But I think it has a strong niche, a global market, and a product set that can become more valuable as sports organisations become more data-driven.

Foolish Takeaway

I would not buy an ASX stock just because it trades below $5. The share price alone tells investors very little about quality, valuation, or future returns.

What interests me here is that each business has moved beyond the simplest version of its old story. These are not perfect companies, and I would expect volatility. But for patient investors willing to look outside the obvious blue chips, I think this is the kind of area where interesting long-term opportunities can still be found.

The post 3 quality ASX stocks I’d buy under $5 a share appeared first on The Motley Fool Australia.

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

Santos Ltd (ASX: STO) shares ended the week on a multi-year high at the close of the ASX last Friday. But the oil and gas producer’s shares have turned this week, prompting questions about whether sentiment has started shifting.

At the close of the ASX on Tuesday afternoon, the shares are down 0.88% to $7.87 a piece, and they’ve slumped 5% since reaching a four-year high on Friday.

The stock is now 28% higher for the year-to-date and 22% higher than this time last year.

For context, the S&P/ASX 200 Index (ASX: XJO) also fell into the red on Tuesday, down 0.4% at the close of the index. For the year-to-date the index is down 0.8%.

What pushed Santos shares to a four-year peak last week?

Rising oil prices have acted as a strong tailwind for Santos shares last week as conflict between the US and Iran continues to inhibit global oil supply and cause oil prices to become incredibly volatile. 

Trading Economics data shows that the price of WTI crude oil spiked over US$101 per barrel late last week. While that’s lower than the soaring US$110-level seen previously, the increase sparked fears that the oil price was starting to climb higher again.

A few company-specific price drivers, including a rise in production and improved cash flow, have also helped drive Santos shares to its latest peak.

In late-April, Santos posted its March quarter update, where it revealed a 1% increase in production and 3% rise in sales revenue versus the prior quarter. 

Its free cash flow from operations of US$383 million was in line with Q4 2025, and management reaffirmed its full-year 2026 production and cost guidance.

The company confirmed its first oil production from its Pikka phase 1 development on Alaska’s North Slope early last week. The ramp-up is expected to continue over the coming weeks.

Why has the share price come off the boil this week?

There is no price sensitive news out of the oil and gas producer to explain the cooling share price on Tuesday. 

It’s most likely driven by investors taking their gains off the table after a long rally and a cooling oil price. Oil prices plunged by more than 6% on Monday amid rising optimism about a potential US-Iran agreement to end the conflict and reopen the Strait of Hormuz. The price continued heading south on Tuesday.

But it looks like a rebound is imminent…

If analyst forecasts are correct, there is a long way for Santos shares to run over the next 12 months, with a sharp rebound expected soon.

TradingView data shows that the majority of analysts are very bullish on the oil and gas company’s shares. Out of 14, 11 have a buy or strong buy rating. The remaining three rate the stock as a hold.

The average $8.60 target price implies a potential 11% upside at the time of writing. Although some think Santos shares could rebound another 33% to $10.42 a piece.

The post Santos shares cool 5% from four-year high: Have they come off the boil, or is a rebound imminent? appeared first on The Motley Fool Australia.

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

Healthcare is one of my favourite long-term investment themes.

The world is ageing, medical technology keeps improving, and patients are demanding better diagnosis, treatment, and care. That does not mean every healthcare share will do well, but I think the sector could produce some excellent long-term winners.

Three ASX 200 healthcare shares I would buy for the future are named in this article.

ResMed Inc (ASX: RMD)

ResMed is one of the ASX 200 healthcare shares I rate most highly.

The company is a global leader in sleep health, with products that help treat sleep apnoea and other respiratory conditions. I like the business model because it combines devices with recurring revenue from masks, accessories, and software.

That recurring element is important. A patient does not just buy a device once and disappear forever. They often need replacement masks, ongoing support, connected data, and better tools to manage therapy.

I also think the long-term market remains underpenetrated. Many people with sleep apnoea remain undiagnosed, and awareness of the condition can still improve.

There has been plenty of debate about GLP-1 weight loss drugs and what they mean for sleep apnoea treatment. I see them as more of an awareness driver than a simple threat. If more patients engage with their health, seek diagnosis, and understand the risks of untreated sleep apnoea, ResMed could still benefit.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix is a higher-risk healthcare growth share, but I think the opportunity is compelling.

The company is focused on radiopharmaceuticals, including cancer imaging and targeted treatment. This is a specialised area of healthcare with the potential to improve how certain cancers are detected and treated.

What I like about Telix is that it is not simply a clinical-stage dream. It already has a commercial base, while still investing in a pipeline that could create future growth.

That combination is attractive, but it also comes with risk. Clinical trials can disappoint, regulatory timelines can change, and healthcare investors can quickly lose patience when expectations are high.

I would not put Telix in the same risk bucket as a mature healthcare leader like ResMed. But for investors comfortable with more volatility, I think Telix offers exposure to one of the more interesting areas of modern cancer care.

If management can keep growing the commercial business and advance the pipeline, the company could look very different in a decade.

Cochlear Ltd (ASX: COH)

Cochlear has had a difficult period, but I still think it deserves attention from long-term investors.

The company is a global leader in implantable hearing solutions. Its products can make a major difference to people with severe to profound hearing loss, and I think the long-term need is clear.

Ageing populations should support demand over time. Diagnosis and treatment access can also improve, especially as hearing loss becomes more widely understood as a serious health issue rather than simply an inconvenience.

Cochlear’s near-term outlook has been challenged, and confidence has weakened. But I do not think the long-term healthcare need has gone away.

For patient investors, the question is whether the current pressure is temporary or structural. I lean towards the former, although recovery may take time.

Foolish Takeaway

Healthcare investing often requires patience.

A company can have a strong long-term market and still go through periods where sentiment turns against it. That is why I like looking for businesses with real clinical need behind them, not just a fashionable story.

These three ASX 200 shares carry different risks, but they all have something I want in a healthcare investment: a reason to exist that should still matter many years from now.

The post 3 ASX 200 shares I’d buy for the future of healthcare appeared first on The Motley Fool Australia.

More reading

• What does a takeover in the US tell us about the value of Telix shares?
• The global obesity drug boom could be bigger than investors realise for this ASX stock
• 4 ASX 200 shares tipped to jump another 70-80%
• I would buy these world-class ASX shares for an SMSF
• How to start investing in ASX shares in 2026

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

As Australian investors approach retirement, their focus may shift from just growth strategies to investments that provide more accessible and stable income.

One simple and effective way to do this is through ASX ETFs. 

For Australians looking to build a straightforward retirement portfolio without spending hours researching individual shares, a two-ETF strategy can be an effective solution. 

One combination that continues to appeal to income-focused investors is pairing: 

• Vanguard Australian Shares High Yield ETF (ASX: VHY)
• Vanguard Msci Index International Shares ETF (ASX: VGS). 

A balanced approach

The Vanguard Australian Shares High Yield ETF provides low-cost exposure to companies listed on the ASX that have higher forecast dividends relative to other ASX-listed companies.

Meanwhile, the Vanguard international shares ETF invests in around 1,300 companies from developed countries, excluding Australia.

The attraction of this approach is balance. 

VHY focuses on higher-yielding Australian companies, giving investors exposure to many of the ASX’s largest dividend payers, including banks, mining giants, and established industrial businesses. 

For retirees, this ASX ETF’s attractive distributions and potential franking credits may help provide a reliable source of passive income.

At the same time, VGS delivers something many Australian portfolios often lack – genuine global diversification.

This ASX ETF provides access to thousands of companies across the United States, Europe, and Asia, including major global leaders in technology, healthcare, and consumer brands.

A portfolio split between the two could offer a practical combination of steady income and long-term growth potential.

Important retirement points

One of the biggest mistakes retirees can make is chasing the highest possible dividend yield. 

While income is important, total returns still matter. A portfolio also needs growth to help combat inflation over a retirement that could last decades.

That is where VGS can play an important role. While it may offer a lower dividend yield than Australian shares, international equities have historically delivered strong long-term capital growth.

Meanwhile, VHY can continue generating regular income from established Australian businesses, with the added bonus of franking credits that may improve after-tax returns for some investors.

Importantly, this strategy also keeps investing simple. Both ASX ETFs are low-cost, diversified, and easy to manage. 

This makes them an attractive “set-and-forget” option for long-term retirement investors.

Foolish takeaway 

The advantage of ASX ETF investing is the instant diversification and set and forget mentality in just a couple of trades. 

By combining broad Australian exposure with global diversification, investors can build a low-maintenance portfolio that balances income today with growth for tomorrow. 

Rather than trying to time the market or pick individual winners, this approach allows investors to stay consistently exposed to high-quality businesses around the world.

The post An easy 2 ASX ETF portfolio to fund retirement  appeared first on The Motley Fool Australia.

More reading

• If I could buy only one ASX ETF for the next 10 years, this could be it
• VGS vs IVV: Which ASX ETF is better?
• 3 of the best performing Vanguard ASX ETFs over the last year
• Which ASX ETFs could be buys for passive income?
• How to build a $150,000 ASX share portfolio from scratch

Motley Fool contributor Aaron Bell has positions in Vanguard Msci Index International Shares 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 Australian Shares High Yield ETF 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.