Category: Stock Market

When a new month rolls around, I like to think about whether there are simple, sensible additions that can strengthen a portfolio over the long term. Not flashy trades, just solid building blocks that do their job quietly in the background.

These are three Vanguard exchange-traded funds (ETFs) I think smart investors could look at buying in February.

Vanguard Global Value Equity Active ETF (ASX: VVLU)

The Vanguard Global Value Equity Active ETF stands out for me because it offers something different from the growth-heavy portfolios many investors already own.

Rather than chasing the most popular stocks, this ETF uses an active, rules-based approach to focus on companies trading at lower valuations relative to fundamentals like earnings, cash flow, and book value. That makes it a useful counterbalance when expensive growth stocks dominate market leadership.

I like the Vanguard Global Value Equity Active ETF as a way to introduce valuation discipline into a portfolio without having to pick individual global value stocks. It’s not about timing a rotation perfectly, it’s about diversification and improving risk-adjusted returns over time.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

The Vanguard FTSE Asia Ex-Japan Shares Index ETF is a higher-risk option, but one that can make sense for investors with a long time horizon.

The ETF provides exposure to fast-growing Asian economies, including China, India, Taiwan, and South Korea. These markets come with more volatility, but they also offer growth drivers that are hard to find in developed markets, particularly in technology manufacturing, financial services, and consumer demand.

I wouldn’t build a portfolio around the VAE ETF alone, but as a satellite holding alongside broader global exposure, it can add a different growth engine that isn’t tied to the US or Australian cycles.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The Vanguard MSCI Index International Shares ETF is still one of the best core ETFs available on the ASX, in my opinion.

It gives exposure to around 1,300 stocks across developed markets outside Australia, including the US, Europe, and Japan. Importantly, it provides access to sectors like technology and healthcare that are underrepresented on the ASX.

What I like most about the VGS ETF is its simplicity. It’s low cost, broadly diversified, and designed to compound over long periods. If I had to pick just one global equity ETF to hold for years, this would be very hard to go past.

Foolish takeaway

Smart investing doesn’t need to be complicated. A mix of global value, Asian growth, and broad international exposure can go a long way toward building a resilient portfolio.

The VVLU ETF adds valuation discipline, the VAE ETF introduces long-term regional growth, and the VGS ETF provides a dependable global core. Together, they form a balanced trio that I think makes a lot of sense heading into February and beyond.

The post 3 Vanguard ETFs for smart investors to buy in February appeared first on The Motley Fool Australia.

More reading

• Why ASX ETFs are a good place to start for beginner investors
• 3 excellent Vanguard ETFs I would buy with $3,000
• 5 ASX ETFs for genuine global exposure
• If a 25-year-old invests $1,250 a month in ASX stocks, here’s what they could have by retirement
• Why I think beginners would love these Vanguard ETFs

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

Exchange traded funds (ETFs) are a fantastic investment option for beginner investors, or for those who want ASX exposure and long-term growth without the short-term stress.

When it comes to the best options to buy and hold over the long-term. I think the Vanguard Australian Shares Index ETF (ASX: VAS) and the iShares S&P 500 ETF (ASX: IVV) are a no-brainer.

Here are three reasons why.

1. Instant diversification

As Australia’s largest ETF, VAS gives its investors exposure to the top 300 companies listed on the ASX, which means it offers incredible instant diversification across a broad range of Australian shares.

Meanwhile, IVV gives investors exposure to the largest stocks in the US. The ETF tracks the S&P 500 Index (INDEXSP: INX) which is based on the 500 largest US stocks by market capitalisation.

By combining these two ETFs together into a long-term portfolio, investors are able to spread their portfolio risk across a huge range of companies on two different indexes and therefore two different economic cycles and are subject to different aspects of risk.

2. They offer a balance of income and growth

Not all ASX ETFs offer both income and growth. But VAS is well-known for its access to long-term capital growth and potential for regular income through distributions. This includes any associated franking credits. As of 2026, the ETF has delivered 1-year total returns of roughly 9.34% and 3-year returns of 9.77%.

And IVV also pays out decent distributions via its dividends and also has a strong focus on long-term capital growth. Past performance isn’t a guarantee on future performance, but the S&P 500 Index has performed strongly in 2025, particularly in the latter half of the year, and it looks like that growth has continued through to 2026. In the past 10 years to 31st of December, the IVV ETF has returned an average of 15.56% per year.

3. They’re low cost

Both the ASX ETF’s have very low management fees. That means that more returns are paid into investors’ pockets rather than eroded down by excess fees.

VAS product fees are around 0.07% per annum for investment management costs. The EFT doesn’t charge indirect costs or net transaction fees. When it comes to platform fees, investors can expect a $9 brokerage fee when selling ETFs via a Vanguard Personal Investor Account but there is no fee for purchases.

IVV said it aims to provide investors with the performance of the S&P 500 Index, before fees and expenses. The ETF’s management fee is 0.04% plus any brokerage fees for buying and selling. 

The post VAS and IVV: 3 reasons these two ASX ETFs belong in a long-term portfolio appeared first on The Motley Fool Australia.

More reading

• 5 ASX ETFs to buy for passive income
• 3 Australian ETFS to buy and hold forever
• Why these ASX ETFs could be perfect to buy and hold forever
• If I had $5,000 to invest on the ASX today, this is how I’d split it
• 3 excellent Vanguard ETFs I would buy with $3,000

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 iShares S&P 500 ETF. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you suddenly had $5,000 to invest and your priority was income, I would focus on owning businesses that can pay you reliably through good times and bad, and ideally grow those payments over time.

These are five ASX income shares I’d be happy buying and holding for the long run.

Telstra Group Ltd (ASX: TLS)

Mobile, broadband, and network services are essential, and that gives telecommunications leader Telstra defensive qualities that are hard to replicate elsewhere on the ASX.

What I like most is that Telstra’s dividend is now backed by a simpler business and improving cash flow discipline. The company isn’t trying to reinvent itself every year. It’s focused on execution, network leadership, and returning capital to shareholders. For income investors, that predictability is valuable.

Woolworths Group Ltd (ASX: WOW)

Woolworths is a classic ASX income share for a reason. Supermarkets sit at the heart of household spending, and demand doesn’t disappear in tougher economic conditions.

While Woolworths has had a challenging period operationally, the business still generates strong cash flows and holds a dominant market position. Over long periods, that combination has translated into reliable dividends and growth. I see Woolworths as a steady income anchor rather than an exciting story, and that’s exactly what you want in a long-term portfolio.

Accent Group Ltd (ASX: AX1)

Accent Group is the higher-risk option on this list, but also one with more income upside over time.

The company has been impacted by soft consumer spending and discounting pressure, which has weighed on both earnings and its share price. However, Accent owns a portfolio of well-known footwear brands and operates with a flexible store network and strong supplier relationships.

If consumer conditions normalise, there’s scope for both a recovery in profitability and a rebound in dividends. For patient investors, this could add a bit of growth to an income-focused portfolio.

APA Group (ASX: APA)

APA is one of the most dependable income shares on the ASX. Its energy infrastructure assets are long-lived, regulated, and essential to Australia’s gas and energy networks.

What appeals to me is the visibility. APA’s earnings and distributions are supported by long-term contracts, which makes cash flows more predictable than most businesses. That reliability underpins its attractive dividend yield and makes APA well suited to investors who value income stability.

Transurban Group (ASX: TCL)

Transurban rounds out the list as a high-quality infrastructure income share.

Toll roads benefit from population growth, urban congestion, and limited alternatives. Once an asset is built and operating, it tends to generate steady, inflation-linked cash flows for decades. Transurban has also demonstrated an ability to reinvest in new projects that extend its earnings base over time. For income investors, this ASX income share offers a blend of yield today and distribution growth over the long run.

Foolish takeaway

With $5,000, I think the focus should be on owning businesses that can keep paying you through multiple cycles.

Telstra and Woolworths provide defensive income, APA and Transurban add infrastructure-backed stability, and Accent Group introduces a bit of recovery-driven upside. Together, they form a balanced mix of income and resilience that I’d be comfortable holding for many years.

The post Got $5,000? 5 ASX income shares to buy and hold forever appeared first on The Motley Fool Australia.

More reading

• How to build income on the ASX without losing sleep at night
• 5 ASX dividend shares paying 4% a year on average in 2026!
• Telstra shares’ last all-time high? It will shock you
• Forget term deposits! I’d buy these two ASX 200 shares instead
• My 3 best ASX dividend-focused stocks to buy in February

Motley Fool contributor Grace Alvino has positions in Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, Transurban Group, and Woolworths Group. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Deciding which ASX dividend shares to buy can be difficult given how much choice there is.

To help narrow things down, I have picked out two shares that brokers are tipping as buys this month.

Here’s what they are recommending to clients:

Amcor (ASX: AMC)

The team at Morgans thinks that packaging giant Amcor could be an ASX dividend share to buy.

It was pleased to see management reaffirm its synergy targets and FY 2026 guidance. So, with its shares trading on low earnings multiples, it feels that now is the time to snap them up. It said:

Following AMC’s recent 5:1 share consolidation, we update our per share estimates (EPS and DPS) to reflect the new share count. Our underlying earnings forecasts change marginally (between 0-1%), largely reflecting updates to FX assumptions. Our target price increases to $76.00 (from $15.20 previously) following the share consolidation. With a 12-month forecast TSR of 21%, we maintain our BUY rating. Following AMC’s solid 1Q26 result, management’s increased confidence in delivering FY26 synergy targets, and the reaffirmation of FY26 guidance, we believe the outlook remains positive. Trading on 10x FY27F PE with a 5.8% yield, we continue to view the valuation as attractive. AMC is due to report its 1H26 result in early February.

Morgans is expecting dividends per share of $4.01 in FY 2026 and then $4.09 in FY 2027. Based on its current share price of $63.86, this would mean dividend yields of 6.3% and 6.4%, respectively.

The broker has a buy rating and $76.00 price target on Amcor’s shares.

Endeavour Group Ltd (ASX: EDV)

Bell Potter thinks that this struggling drinks giant could be an ASX dividend share to buy now.

The broker believes that the BWS and Dan Murphy’s owner’s strategy reset could be the key to driving growth again. It said:

We retain our Buy rating and lower our TP to $4.00. With a key negative catalyst now digested by the market (Retail gross margin reset), we can now look ahead to the strategy refresh where we believe expectations remain low (however, have improved given today’s muted market reaction) and therefore presents upside surprise potential. The key risk to our thesis is a further reset in earnings following the strategy refresh.

As for income, Bell Potter is forecasting fully franked dividends of 15 cents per share in FY 2026 and then 19 cents per share in FY 2027. Based on its current share price of $3.77, this would mean dividend yields of 4% and 5%, respectively.

Bell Potter has a buy rating and $4.00 price target on its shares.

The post Brokers say these ASX dividend shares are buys appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares that look like cheap buys to me
• $10,000 in these ASX dividend shares pays how much passive income?
• These two packaging majors are tipped to return better than 25%
• Morgans says these ASX 200 shares can rise 20%+

Motley Fool contributor James Mickleboro has positions in Endeavour Group. 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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Develop Global Ltd (ASX: DVP) is an ASX materials stock that has soared over the last year. 

In the past 12 months, it has risen 138%. 

This includes a 22% rise already in 2026. 

It now sits close to its 52 week high. 

When valuations look full like this, it can be difficult for investors to jump in. 

However a new report from Bell Potter suggests the ASX materials stock can keep rising.  

2Q FY26 update

Yesterday, Develop Global released its Quarterly Activities Report- December 2025.

This included positive news regarding the company’s Woodlawn site. 

The Woodlawn copper restart is Develop Global’s recommissioning of its Woodlawn underground copper-zinc mine in NSW, bringing the operation out of care and maintenance and back into production. 

The company said the Woodlawn restart continues to perform strongly, with commissioning and ramp-up on schedule, putting the project on track for steady-state production in the March quarter:

• A record 59,000t processed in the month of December puts Woodlawn on track to reac name-plate capacity rate of 850,000tpa in the March quarter
• Quarterly revenue is up 98.5% to A$39.1 million from 9,472 tonnes of concentrate sales
• Copper and zinc concentrate production increased 36% and 43% respectively compared to the September quarter, predominately driven by higher grade production from the Kate lens. 

Reacting to the report, Bell Potter said: 

Woodlawn revenue was A$39.1m, higher than A$19.7m in the prior quarter and our $24.8m estimate. While processing volumes were broadly consistent with the prior quarter, greater copper and zinc concentrate production (up 36% and 43% on the prior quarter, respectively) implies higher head grade and / or metal recoveries.

Improved outlook for this ASX materials stock

In a report out of Bell Potter yesterday, the broker said the company ended the quarter with cash of $179.9m, drawn debt of $108.5m and equipment financing of $47.0m, for a net cash position of $24.4m (vs $46.0m at the end of the Sep-25 quarter).

This led to EPS changes of: FY26: +4% in FY26; nc in FY27-28.

Achieving steady-state Woodlawn production in the Mar-26 quarter is forecast to drive +92% EPS growth in FY27, with upside should spot commodity prices hold.

The broker highlighted the Mining Services division delivered A$55.5m in revenue in Q2 FY26. This was in line with expectations, driven by record output from its Bellevue Gold Mine contract.

The recently secured A$200m Waihi North tunnelling contract in New Zealand is set to commence in the June 2026 quarter, adding medium-term earnings visibility. 

Based on this guidance, the broker has updated its price target to $6.40 (previously $5.80). 

From yesterday’s closing price, this indicates an upside of approximately 15.7%. 

The post “A+ Scorecard” – Bell Potter just upgraded this ASX materials stock appeared first on The Motley Fool Australia.

More reading

• Why Benz Mining, Boss Energy, Develop Global, and Digico shares are storming higher today
• ASX All Ords shares smashing 52-week highs today
• This ASX ETF has returned 34% annually since inception
• $10,000 invested in WIRE ETF a year ago is now worth…
• Leading brokers name 3 ASX shares to buy today

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

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a volatile day and ultimately ended it slightly lower. The benchmark index fell 0.1% to 8,933.9 points.

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

ASX 200 to edge lower

The Australian share market looks set to edge lower on Thursday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points lower this morning. In late trade in the United States, the Dow Jones and the S&P 500 are flat, and the Nasdaq is up 0.3%.

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Thursday after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 1.3% to US$63.22 a barrel and the Brent crude oil price is up 1.25% to US$68.42 a barrel. This was driven by comments from Donald Trump that a “massive Armada is heading to Iran.”

Boss Energy shares downgraded

Boss Energy Ltd (ASX: BOE) shares are fully valued according to analysts at Bell Potter. This morning, the broker has downgraded this uranium producer’s shares to a hold rating with a $1.95 price target. It said: “We maintain our TP of $1.95/sh and reduce our recommendation to Hold (previously Buy). Our valuation assumes production at Honeymoon over the short 10Y mine life is limited to ~1.6Mlbs pa and costs remain elevated, until such a time that management have completed the work to guide otherwise. We have ascribed nil value to BOE’s exploration assets at this point. NPAT changes are: FY26 +5%, FY27 -2% and FY28 nc.”

Gold price jumps

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a very good session on Thursday after the gold price jumped overnight. According to CNBC, the gold futures price is up 4% to US$5,287 an ounce. This followed news that the US Federal Reserve kept interest rates unchanged, as was widely expected.

Mineral Resources update

Mineral Resources Ltd (ASX: MIN) shares will be on watch today when the mining and mining services company releases its quarterly update. All eyes will be on the profitability of its lithium operations following a rebound in prices. For the same reason, Liontown Ltd (ASX: LTR) shares will be watched carefully when it releases its highly anticipated quarterly update.

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

More reading

• Here are the top 10 ASX 200 shares today
• Why Benz Mining, Boss Energy, Develop Global, and Digico shares are storming higher today
• ASX 200 sinks as inflation spike dashes hopes for RBA interest rate relief
• Why is this ASX 200 uranium stock jumping 11% today?
• Bank of Queensland names new CEO as leadership transition takes shape

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.

The All Ordinaries Index (ASX: XAO) has returned 6.9% over the past 12 months, with ASX All Ords gold stock Strickland Metals Ltd (ASX: STK) leaving those gains in the dust.

Strickland Metals shares closed on Wednesday trading for 20.5 cents apiece. That sees the share price up a sizzling 169.7% since 28 January 2025, when you could have snapped up shares for just 7.6 cents each.

As you can likely guess, the record smashing gold price counts among the tailwinds that have been sending the ASX All Ords gold stock surging. On Wednesday, gold was trading for US$5,180 per ounce, putting the yellow metal up 89% in 12 months.

Investor interest has also been roused by a series of exploratory drilling successes at the company’s 100%-owned 8.6-million-ounce gold equivalent Rogozna Project, located in Serbia.

And with further drilling results pending and potentially driving a resource upgrade, the analysts at Canaccord Genuity believe the next 12 months could be even more profitable for shareholders.

Here’s why.

ASX All Ords gold stock hits rich new intercepts

Last week, on 20 January, Strickland Metals reported on the latest assay results from its 5.3-million-ounce gold equivalent Shanac Deposit. Shanac sits within the broader Rogozna Project.

Top results reported by the ASX All Ords gold stock included 37.2 metres at 1.1 grams of gold equivalent per tonne from 284.4 metres, and 113.4 metres at 1.7grams of gold equivalent per tonne from 451.0 metres.

Strickland managing director Paul L’Herpiniere was clearly pleased with the assays. He said:

The three diamond holes reported in this announcement all returned outstanding zones of strong copper-gold mineralisation, reinforcing the scale, quality and potential of our cornerstone ~5.3Moz AuEq Shanac Deposit.

L’Herpiniere noted that the latest results will contribute towards an updated Mineral Resource Estimate for Shanac, which the company said remains on track to be reported later this quarter.

Encouragingly, Strickland remains well-funded for its 2026 exploration program. The miner reported holding cash and liquid investments of $38.2 million at the end of the December quarter.

What is Canaccord saying?

In a new report following on the ASX All Ords gold stock’s latest drilling results, Canaccord said:

Recent assay results from three diamond drill holes continue to demonstrate the presence of both bulk-tonnage mineralisation and discrete higher-grade zones within the central and southern domains of the deposit.

As for what could help boost Strickland Metals shares in the months ahead, the broker added:

Drilling at Shanac concluded in late December 2025, with multiple assays still pending across the broader Rogozna Project. These results, together with recent drilling, are expected to underpin a material update to the Shanac resource according to STK.

Connecting the dots, Canaccord has a speculative buy rating on the ASX All Ords gold stock with a 65-cent price target.

That represents a potential upside of 217% from Wednesday’s closing price.

The post Why this rocketing ASX All Ords gold stock is forecast to leap another 217% appeared first on The Motley Fool Australia.

More reading

• Up 169% in a year, why is this ASX All Ords gold stock jumping again today?

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 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.

Many investors who scour the ASX for the best sources of dividend income will opt to add Westpac Banking Corp (ASX: WBC) shares to their portfolios. As an ASX bank stock, and one of the big four no less, Westpac has a strong and deserved reputation as one of the ASX’s most reliable providers of fat, fully franked dividends.

It has also built a reputation as a strong ASX performer in recent years. As recently as late 2023, Westpac shares were going for just over $20 each. Today, those same shares will set an investor back $38.87 (as of yesterday’s close). The bank has traded as high as $41 late last year. That means Westpac shares have almost doubled between late 2023 and late 2025.

While this rise has been wonderful for existing investors, it has also had the less-than-desirable effect of reducing the bank’s dividend yield. Remember, a stock’s dividend yield is a function of two underlying metrics. The first is the raw dividends per share that the stock pays each year. The second is the share price. So even though Westpac raised its raw dividends over 2025, the dividend yield on its shares dropped dramatically thanks to its enthusiastic share price performance.

But let’s talk about those raw dividends. Last year, Westpac forked out two dividend payments, as is its habit. The first was the June interim dividend worth 76 cents per share. The second, the December final dividend which came in at 77 cents per share. Both payments came fully franked, and both represented increases of 1 cent per share over the previous year’s corresponding dividend.

How much income will Westpac’s dividend provide in 2026 and beyond?

This annual total of $1.53 in dividends per share gives Westpac a trailing dividend yield of 3.94% today. That’s based on yesterday’s closing share price of $38.87.

However, trailing dividend yields reflect the past, and are not a guide to future income.

Of course, we won’t know exactly how much Westpac will dole out in dividends in 2026 until the bank reveals its two dividends later in the year.

However, we can look at what some analysts are predicting.

Earlier this week, my Fool colleague Tristan looked at what kind of dividends analysts are pencilling in from Westpac over the next few years.

In some good news for income investors, these analysts are predicting that Westpac will be able to raise its dividend to $1.575 over FY2026, rising to $1.60 per share by FY2027 and then to $1.65 by FY2028. If these numbers do turn out to be accurate, they would give Westpac shares forward dividend yields of 4.05%, 4.12% and 4.24% respectively. Let’s see what this ASX 200 banks tock reveals later this year.

The post Buying Westpac shares today? Here’s the dividend yield you’ll get appeared first on The Motley Fool Australia.

More reading

• 5 ASX dividend shares paying 4% a year on average in 2026!
• Here’s the dividend forecast out to 2028 for Westpac shares
• ASX Sectors to target and avoid in 2026: Expert
• Here are the 3 ASX ETFs I use for my super fund
• Should you buy DroneShield, Westpac, and BHP shares?

Motley Fool contributor Sebastian Bowen 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.

I don’t take broker recommendations at face value, but I do pay attention when expert views line up with improving fundamentals and sensible execution. In those cases, broker commentary can help validate whether momentum is real or just sentiment-driven.

These are three ASX shares where recent expert views make sense to me, and where I can see why analysts are comfortable recommending a buy.

Guzman Y Gomez Ltd (ASX: GYG)

Guzman Y Gomez is still relatively new to the ASX, but it’s already showing signs of the operational discipline I like to see in growing consumer brands.

Morgans recently reiterated its buy recommendation with a $32.30 target price, pointing to the launch of the BBQ Chicken Double Crunch as a positive development. The broker said early feedback suggests the product is “one of GYG’s more indulgent menu items” and that taste tests have been “overwhelmingly positive”.

What stands out to me is Morgans’ point that the product “leverages existing ingredients, meaning no incremental complexity or cost for stores”. That’s exactly the kind of innovation I like. Driving same-store sales without adding operational friction is a powerful lever, especially in a scaled restaurant business.

Morgans also noted that management has “repeatedly emphasised that menu innovation is a key lever for same-store sales growth”, and I agree this launch reinforces that message.

NextDC Ltd (ASX: NXT)

NextDC continues to benefit from strong demand for data centre capacity, and recent updates help explain why brokers remain constructive.

Ord Minnett has a buy recommendation and a $20.50 target price after noting that contracted utilisation has risen to 316 megawatts. That represents an increase of 71 megawatts, or 29%, since 30 June. It has since increased further as per this update.

What I find compelling is Ord Minnett’s observation that NextDC had only guided to 50 to 100 megawatts of contract wins for FY26. Against that backdrop, the latest update already looks like an early beat. The broker also highlighted “strong demand from both western and eastern hyperscalers”, which supports the broader industry tailwinds.

Ord Minnett said the announcement “bodes well for the full-year outcome” and lifted its target price to reflect this and the assumed value of an agreement with OpenAI, while sensibly leaving earnings estimates unchanged due to limited detail. That balance between optimism and caution feels reasonable to me.

Hub24 Ltd (ASX: HUB)

Hub24 is a familiar name and Bell Potter’s latest commentary reinforces why it continues to attract buy recommendations.

The broker described the second-quarter update as “solid”, noting that Hub24 delivered the highest quarterly inflow on record. Net inflows of $5.6 billion exceeded consensus expectations, supported by strong gross inflows and low outflows.

Bell Potter’s channel checks indicate Hub24 “continues to rank first for future flow intentions”, which I think is an important point. It suggests momentum is not just backward-looking, but supported by adviser demand going forward.

The broker also highlighted that flow growth excluding transitions is accelerating and that the business is tracking toward its custodial funds under administration targets. While the shares are trading on around 32 times FY27 EBITDA, Bell Potter views this as “around medium-term averages” given visibility and strategic progress and has a buy recommendation and $125.00 target price. I tend to agree with that assessment.

Foolish takeaway

In all three cases, the expert optimism feels grounded rather than speculative. Whether it’s margin-friendly menu innovation at Guzman Y Gomez, accelerating contract wins at NextDC, or sustained platform momentum at Hub24, the common thread is execution.

I don’t think expert views should ever replace independent thinking. But when they align with improving data points and a clear strategy, I think they’re well worth listening to.

The post Why I think these buy-rated ASX shares could be top picks appeared first on The Motley Fool Australia.

More reading

• 3 ASX growth shares to buy now while they’re on sale
• These Australian stocks have serious growth potential in 2026
• Top Australian shares to buy with $7,000 in 2026
• Morgans names 3 ASX shares to buy
• Why these ASX growth stocks could be much bigger in 5 years

Motley Fool contributor Grace Alvino has positions in Guzman Y Gomez and Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Cettire Limited (ASX: CTT) made a splash when it listed on the ASX in 2020, hailed as a local e-commerce success story. But in ensuing years, the company has experienced inconsistent profitability and significant market headwinds.

So, after recent share price falls, is Cettire worth a look?

The Melbourne-based online retailer offers consumers access to over 2,500 luxury brands, such as Versace, Gucci and Dolce & Gabbana, by sourcing supply through a grey-market approach. This drop-shipping model means it holds no inventory, enabling it to manage costs and scale rapidly.

In 2020, this cost-effective model and strong tailwinds in the online retail sector generated significant market buzz. However, this hasn’t translated to the profit results investors were hoping for.

For some investors, a history of strong revenue growth, a solid repeat customer base, and consistent momentum in the online retail sector all leave potential for a turnaround.  For others, the headwind of US tariffs, inconsistent profitability and demand volatility in the luxury goods market put it out of contention.

FY25 saw Cettire swing to a loss  

In FY25, Cettire posted gross revenue of $975.3 million, stable against $978.3 million in FY24. Profitability, however, declined sharply, from $10.5 million in net profit after tax in FY24 to a net loss after tax of $2.6 million. And while it continued to hold no financial debt, Cettire’s cash position dropped from $79 million in FY24 to $37.1 million.

In the FY25 Annual Report, Cettire Founder & CEO, Dean Mintz, pointed to several headwinds contributing to the results, including persistent inflation, trade and geopolitical tensions, consumer price fatigue, and general financial market volatility.  

He went on to highlight that the greatest opportunities moving forward lie in increased penetration and a localisation strategy:

Right now, the greatest growth opportunity for Cettire continues to be driving increased penetration within our existing category and geographic footprint, further strengthening our overall scale as well as diversification. Cettire’s localisation strategy is a critical enabler of this opportunity. recent developments in US trade policy have re‑affirmed our conviction in the localisation strategy, which provides the platform to drive revenues beyond the U.S. market.

And this makes sense. Emerging markets accounted for 37% of Cettire’s gross revenues in FY25, and Asian and Middle Eastern regions were reported to have delivered ‘outsized growth’, with successful launches in Kuwait and Bahrain, two markets that remain strong consumers of luxury goods despite overall sector decline.

It’s worth noting that upon the release of this report, Mintz and CFO Tim Hume both received salary increases. Cettire’s Change to Executive Remuneration Terms, released on 29 August 2025, cited the company’s significant growth in scale and complexity and no ‘material amendments’ to remuneration in the five years prior.

So what’s happened since?

In Q1 FY26, Cettire reported gross revenue of $196.7 million, a 1% decrease on the prior corresponding period (PCP). In addition, its active customer base fell 8% against the PCP. That said, repeat consumers accounted for 68% of gross revenue, indicating an engaged customer base. 

It will be interesting to see if indicators are more promising in its next update, expected by mid to late February 2026.

Is Cettire a buy right now?

For me, it’s not a buy as it stands. It has some potential for a turnaround if its localisation strategy is well-executed. However, Cettire’s FY25 results, a challenging market and the decision to increase executive salaries in this climate leave me wary.

Of course, it’s possible that Cettire outperforms from here. But in my view, it’s a play best only considered by investors with a deep understanding of the luxury goods market who can see a clear pathway to profitability.

The post Dressed for success or fashion fail: Is Cettire a buy right now? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why this rocketing ASX All Ords gold stock is forecast to leap another 217%
• Buying Westpac shares today? Here’s the dividend yield you’ll get
• Why I think these buy-rated ASX shares could be top picks
• After rising 22% this month, it could be time to sell this booming ASX materials stock

Motley Fool contributor Melissa Maddison 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.