Category: Stock Market

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index edged 0.15% lower to 8,831 points.

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

ASX 200 to edge lower

The Australian share market looks set for a subdued session on Tuesday despite a positive start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% lower. In the United States, the Dow Jones rose 0.3%, the S&P 500 climbed 0.75%, and the Nasdaq stormed 1.1% higher.

Buy Genesis Minerals shares

Genesis Minerals Ltd (ASX: GMD) shares are good value according to Bell Potter. This morning, in response to a binding merger proposal with Vault Minerals Ltd (ASX: VAU), the broker has retained its buy rating on the gold miner’s shares with a trimmed price target of $9.75. It said: “The Proposed Scheme is not subject to due diligence or financing conditions and offers a materially better strategic and financial outcome than the status quo, in our view. We retain our Buy rating and lower our price target to A$9.75, on account of the recent Magnetic Resources Limited transaction completion (A$639m). The Proposed Scheme has not been incorporated pending resolution of the RRL matching right.”

Oil prices edge higher

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a positive session after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.05% to US$68.73 a barrel and the Brent crude oil price is up 0.05% to US$72.15 a barrel. This is despite OPEC announcing plans to boost its output.

Gold price charges higher

It could be a good session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price charged higher overnight. According to CNBC, the gold futures price is up 1.2% to US$4,175.7 an ounce. Easing interest rate hike expectations boosted the precious metal.

Qantas shares on watch

Qantas Airways Ltd (ASX: QAN) shares will be worth watching on Tuesday after UK airline easyJet received a US$7.3 billion takeover offer from U.S. private equity manager Castlelake. This represents a forward multiple of approximately 16.5x estimated 2027 earnings. Qantas shares are currently trading at a deep discount of around 10x estimated FY 2027 earnings.

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

More reading

• Here are the top 10 ASX 200 shares today
• ASX 200 slips as Friday’s rally fades
• Oil price crash sparks broker upgrades for ASX energy shares
• Gold, cash, and a takeover twist: Why this ASX 200 gold stock is climbing today
• Move over Regis Resources! Vault Minerals shares leaping 11% as Genesis Minerals’ lobs $5.6 billion takeover bid

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.

ASX healthcare shares are showing renewed momentum, with two of the sector’s biggest names staging notable rebounds in recent weeks. At the time of writing, both CSL Ltd (ASX: CSL) and ResMed Inc (ASX: RMD) are trading higher. 

CSL shares have been one of the standout movers in the sector. The stock is up around 7% over the past five trading days and 34% over the past month, reflecting a sharp improvement in sentiment after a brutal sell-off. Despite this recovery, CSL remains heavily out of favour on a longer horizon, still down 28% year to date and nearly 49% over the past 12 months.

ResMed has also begun to recover, although its rebound has been more gradual. The ASX healthcare share is up about 10% over the past five trading days and 13% over the past month. Even so, it remains down 14% year to date and roughly 21% over the past year, leaving it well below its recent highs.

Now, the key question for investors is whether this marks the start of a sustained recovery or just a short-term bounce.

CSL: sentiment improves, but challenges remain

Earnings downgrades, acquisition concerns and a broader reset in market expectations drove the sharp decline in CSL shares. This led to a significant de-rating as investors reassessed what was once considered one of the ASX’s most reliable compounders.

The underlying business remains strong. CSL maintains its position as one of the world’s largest plasma-derived therapies companies. However, the market is now focused on whether management can restore consistent earnings momentum. Particularly as supply constraints and pricing dynamics continue to weigh on performance in key markets.

Morgans continues to support the stock. It retains a buy rating on the $58 billion ASX healthcare share with a price target of $147.59. This points to a 19% upside at current price levels.

The broker notes that the long-term story remains intact. However, a sustained recovery in sentiment may take several quarters to fully materialise as investors wait for clearer evidence in the numbers.

ResMed: growth remains intact despite volatility

The price weakness of the $44 billion ASX healthcare share has been driven more by valuation compression than by any meaningful deterioration in business performance. Broader concerns around healthcare growth stocks have also weighed on sentiment, contributing to the stock’s decline over the past year.

Despite this, the company’s fundamentals remain solid. In Q3 FY26, ResMed reported revenue rising 11% to US$1.43 billion, while non-GAAP earnings per share were up 21% to US$2.86.

Even after its recent rebound, ResMed remains at its lowest valuation level in more than a decade. It’s trading on approximately 16 times forward earnings despite expectations for double-digit earnings per share growth.

Morgans has retained a buy rating with a price target of $41.72, implying around 36% upside from current levels. The broker highlights that the current valuation may underestimate the company’s long-term growth potential.

The post 2 ASX healthcare shares crashing, now bouncing: buy, hold or sell? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Dexus, Resmed, BHP shares
• Down 22%! 3 reasons to buy the big dip in ResMed shares today
• 3 ASX 200 shares to buy now: experts
• Why BHP and these ASX shares could be strong buys this week
• 5 things to watch on the ASX 200 on Monday

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

For retirees looking to complement their superannuation with quality investments, there are several factors to consider. 

Dividend stocks are a fantastic option because they provide passive income that can supplement retirement savings while offering the potential for long-term capital growth. 

Companies with a strong history of paying consistent, and ideally increasing, dividends can provide a reliable income stream, although it’s important to remember that dividends are not guaranteed and share prices can fluctuate. 

Another important consideration is the impact of inflation.

Many retirees will need to live off superannuation for more than 20 or 30 years, and inflation can eat into the purchasing power of their savings over time. 

Investments that have the potential to deliver returns above the rate of inflation can help preserve wealth and maintain living standards throughout retirement. 

Building a diversified portfolio that includes growth assets alongside income-producing investments can provide a balance between protecting capital and ensuring retirement savings continue to work over the long term.

Here are five options to consider that stretch across growth and income assets to compliment your superannuation. 

Dividend stocks to consider 

For retirees looking to target dividend stocks, one great option is Telstra Group Ltd (ASX: TLS). 

It is often considered an attractive dividend stock for retirees because of its established market position, relatively stable cash flows, and history of paying consistent dividends. 

Its essential telecommunications services provide resilient earnings, making it a popular choice for investors seeking reliable income alongside the potential for modest long-term capital growth.

Another dividend stock with a strong reputation is BHP Group Ltd (ASX: BHP). 

It is a popular dividend stock for retirees because of its strong balance sheet, global leadership in mining, and history of returning a significant portion of profits to shareholders through dividends. 

While dividend payments can fluctuate with commodity prices, BHP’s exposure to essential resources such as iron ore and copper provides the potential for attractive income and long-term growth.

Finally, income investors might also target Macquarie Group Ltd (ASX: MQG). 

While its dividend may be more cyclical than those of traditional defensive companies, Macquarie’s exposure to infrastructure, asset management, and renewable energy provides both income potential and opportunities for long-term capital growth.

Growth shares to consider 

While passive income is important, it isn’t the entire story for a healthy compliment to your superannuation. 

For investors looking to outpace inflation during retirements, two great ASX ETFs to consider are: 

• BetaShares Nasdaq 100 ETF (ASX: NDQ)
• Vanguard Diversified High Growth Index ETF (ASX: VDHG)

These ASX ETFs focus on strong long-term growth potential. 

This makes them both an attractive option for retirees seeking capital appreciation to help offset the effects of inflation.

They also offer broad international diversification helps reduce single-market risk while providing long-term growth potential.

The post 5 of the best investments on the ASX right now to complement your superannuation appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BHP Group and BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF and Macquarie Group. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF and Telstra Group. The Motley Fool Australia has recommended BHP Group and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Artificial intelligence has produced a long list of buzzy stock ideas. Most of them sit in the United States.

But the infrastructure AI actually runs on, the data centres, the power grids, the networks, is being built right here in Australia.

Three ASX AI stocks are capturing that opportunity in very different but equally compelling ways.

NextDC: where AI workloads live

NextDC Ltd (ASX: NXT) is Australia’s largest independent data centre operator, and the closest thing on the ASX to a direct, pure-play bet on AI infrastructure demand.

The numbers confirm the demand is real and accelerating.

Contracted utilisation surged 60% to 667MW in the March 2026 quarter alone. This was driven by massive contract wins as AI workloads requiring intensive computing power, storage, and connectivity flooded into NextDC’s facilities.

The company’s forward order book, combined with existing billing, is expected to generate contracted EBITDA in excess of A$1 billion. This is more than four times the midpoint of FY26 guidance, as that contracted capacity converts to revenue progressively from FY26 through FY30.

OpenAI, one of the world’s largest and best-funded AI companies, is the foundational customer for NextDC’s $7 billion AI data centre campus in Western Sydney. This relationship relationship validates both the strategic importance of Australian AI infrastructure and NextDC’s position within it.

The risks are equally visible.

$5 billion in FY27 capital expenditure means execution matters enormously given the large sums of capital invested.

Goodman Group: a surprise ASX AI infrastructure play

Goodman Group (ASX: GMG) is the landlord of the AI revolution.

Before a data centre can be built, someone needs to secure the land, obtain planning approvals, connect the power, and deliver the shell.

That is Goodman’s role, and it is an increasingly scarce and valuable one.

Data centres now make up 73% of Goodman’s development pipeline, which is on track to reach $18 billion by June 2026. The company possesses a global power bank of 6.4 gigawatts across 16 cities that took years to assemble and that no newcomer can replicate quickly.

This is Goodman’s competitive advantage.

Morgans has noted that industry data centre capital expenditure requirements likely exceed global capital market funding capacity. This statement describes a market where the constraint is not demand but the ability to build fast enough.

Consequently, Goodman is positioned on the supply side of that constraint, with secured power, sites, and locked-in capital partners already in place.

On the broker side, Morgans retains a buy rating on Goodman with a $36 price target, and UBS endorses Goodman’s outlook with a $36.41 price target.

Megaport: how AI workloads move

Megaport Ltd (ASX: MP1) has changed the most of the three over the past twelve months.

The company was already known as a network-as-a-service provider connecting businesses to cloud platforms.

But its acquisition of Latitude.sh pushed it deeper into the AI infrastructure stack by adding high-performance GPU, CPU, and storage capabilities alongside its core connectivity offering.

Subsequently, Megaport rose almost 50% in FY26, smashing the ASX 200’s 3% gain, as the market began to recognise it as an AI infrastructure contender rather than simply a cloud connectivity story.

$254 million in new AI contracts through Latitude.sh, generating $90.6 million in annualised recurring revenue, confirmed that AI demand is already flowing into the business.

CEO Michael Reid described the contract wins as evidence that

Megaport is becoming an essential platform for powering the applications of tomorrow.

The risks across all three ASX AI stocks

However, none of these three ASX AI stocks is without risk.

NextDC’s $5 billion FY27 capex plan means any slip in execution or AI demand would hit the stock hard.

Goodman’s premium valuation reflects how much the market has already priced into its data centre transition. This leaves little room for disappointment.

Megaport has to prove the Latitude.sh contracts convert into attractive returns over time, not just headline contract values.

Additionally, all three are also sensitive to interest rate movements given their capital-intensive operating models.

Foolish takeaway for ASX AI stocks

NextDC, Goodman, and Megaport each capture the AI infrastructure opportunity from a different angle.

NextDC provides the capacity. Goodman provides the land and power. Megaport provides the connectivity.

For investors who believe AI-driven infrastructure demand will keep accelerating, all three deserve a place on the watchlist.

The post The best AI stocks on the ASX right now appeared first on The Motley Fool Australia.

More reading

• ASX 200 tech shares tanked in FY26, but there were 3 winners
• Why did Megaport shares smash the ASX 200 in FY26?
• 10 of the best ASX shares to buy in FY 2027
• Should you buy property or stocks? Here’s what you need to consider
• Should I buy the rebound in CBA shares today?

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 Goodman Group and Megaport. 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.

S&P/ASX 200 Index (ASX: XJO) shares rose 2.77% and delivered total returns, including dividends, of 7% in FY26.  

On The Bull this week, Remo Greco from Sanlam Private Wealth shares his insights on three ASX 200 shares for FY27.  

Let’s take a look. 

Dexus Convenience Retail REIT (ASX: DXC) 

The Dexus Convenience Retail REIT fell 14.8% to finish at $2.59 per share on 30 June. 

Greco has a buy rating on this ASX real estate investment trust (REIT).

Greco said:

This real estate investment trust owns service stations and convenience retail assets, mostly on Australia’s eastern seaboard.

The fund’s portfolio was valued at about $760 million on December 31, 2025. The company was recently trading at a significant discount to net tangible assets (NTA) and was yielding about 8 per cent.

The trust has an attractive development pipeline, modest debt and recently increased its buy-back target. Importantly, the NTA is supported by recent asset sales of 1.5 per cent above valuation.

Recently announced capital gains tax changes make the company’s assets appealing to self managed super funds looking for reliable income generating assets.

DXC is a solid defensive play in the current environment.

BHP Group Ltd (ASX: BHP)

The BHP share price soared 62% to finish FY26 at $59.40 last Tuesday. 

Greco has a hold rating on the ASX 200 mining share for FY27. 

He said: 

Several disappointing events have led us to downgrade BHP to a hold.

Cost over-runs at its Jansen stage 2 potash project in Canada lifts the investment cost by about $US2 billion to $US6.9 billion. Possible industrial action, although averted in June, may re-ignite at the company’s iron ore operations in the Pilbara region of Western Australia.

Any industrial action may impact stock performance.

Longer term, we like BHP’s exposure to copper – the key metal of the future.

As reported in our best-performing commodities of FY26 article, the copper price rose by 18% while iron ore increased 7% over the year. 

Resmed CDI (ASX: RMD)

The Resmed share price fell 26.6% to $28.88 on 30 June amid a broader healthcare sector rout in FY26. 

Greco has a sell rating on this ASX 200 healthcare share, and commented: 

The company makes medical devices to treat sleep apnoea. The company lifted revenue by 11 per cent in the third quarter of financial year 2026 when compared to the prior corresponding period.

In my view, GLP-1 weight loss drugs may reduce the incidence of sleep apnoea.

ResMed’s share price has been volatile in the past 12 months as investors weighed up the company’s outlook in light of popular GLP-1 drugs.

The shares have risen from $25.84 on June 3 to trade at $29.37 on July 2.

It may be prudent to sell some shares prior to RMD’s full year result.

Resmed is due to release its 4Q FY26 results on 7 August. 

The post Buy, hold, sell: Dexus, Resmed, BHP shares appeared first on The Motley Fool Australia.

More reading

• 2 ASX healthcare shares crashing, now bouncing: buy, hold or sell?
• 5 of the best investments on the ASX right now to complement your superannuation
• Down 22%! 3 reasons to buy the big dip in ResMed shares today
• Up 57%! 3 compelling reasons to still buy BHP shares today
• 3 ASX 200 shares to buy now: experts

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

S&P/ASX 200 Index (ASX: XJO) tech shares were smashed over a seven-month period between late August through to 30 March this year.

The downturn led to technology being the second-worst performer of the 11 market sectors in FY26.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) fell 37.22% and delivered total negative returns of 36.97%. 

Tech investors had much on their minds last financial year.  

Firstly, they became worried that high share price valuations and massive artificial intelligence (AI) investment in the US may create an AI bubble. 

Some experts likened the AI boom to the internet boom of the late 1990s. They warned that excessive investor enthusiasm could lead to a dot-com-style correction.

That fear spread throughout the sector quickly, with ASX 200 tech shares peaking in September and entering a bear market just two months later.

A bear market is defined as a 20% (or more) fall from the most recent high point.

There were also fears that AI may decimate software-as-a-service (SaaS) providers after Anthropic released a new legal plug-in for its agentic AI assistant, Claude, in early 2026. 

Within a week, shares in Thomson Reuters, whose SaaS platforms Westlaw and Practical Law serve legal professionals, had lost a fifth of its valuation. 

The SaaS concern hit ASX 200 tech shares hard given four of our six largest companies by market capitalisation are SaaS providers.

Wisetech shares weighed the sector down 

WiseTech Global Ltd (ASX: WTC), which was previously the market’s largest listed tech company, was also a significant drag on the sector in FY26. 

Investors were disappointed with Wisetech’s FY25 earnings, released in August, and governance issues became a big distraction. 

Wisetech went on to become the worst performer of the entire ASX 200 in FY26, dropping 70% in value. 

The company lost its status as the sector’s largest stock by market cap to Xero Ltd (ASX: XRO) in May. 

A strong turnaround for ASX 200 and US tech shares began on 31 March. Since then, ASX 200 tech shares have rebounded by almost 20%. 

Here are the three winners of the tech sector last financial year. 

1. Codan Ltd (ASX: CDA)

Electronics solutions provider Codan delivered the best capital growth among ASX 200 tech shares in FY26.

The Codan share price skyrocketed 119.49% to finish the year at $44.14.

Codan designs and manufactures electronics solutions, including communications equipment and metal detectors, for government, corporate, NGO, and consumer clients worldwide. 

The company reported a 55% increase in net profit after tax (NPAT) to $71.2 million for 1H FY26.

2. Megaport Ltd (ASX: MP1) 

Megaport provides cloud and data centre connectivity services through a global network-as-a-service (NaaS) platform.

The Megaport share price ripped 49.45% to finish FY26 at $21.58. 

In June, Megaport announced it had won four new AI infrastructure contracts worth $458.9 million.

The new work required significant capex, so Megaport ran a fully underwritten $827.3 million entitlement offer at $14.30 per share.

3. Data#3 Ltd (ASX: DTL)

Data#3 is an information and communications technology (ICT) provider. 

The Data#3 share price rose 29.43% to $9.85 on 30 June. 

Data#3 reported a 9% lift in gross sales to $1.54 billion for 1H FY26. Statutory revenue increased 8% to $423 million.

The NPAT was 3.7% higher at $23 million. 

The post ASX 200 tech shares tanked in FY26, but there were 3 winners appeared first on The Motley Fool Australia.

More reading

• Why did Megaport shares smash the ASX 200 in FY26?
• 10 of the best ASX shares to buy in FY 2027
• Top ASX 200 share of each market sector in FY26
• 7 ASX shares downgraded by brokers this week
• 3 ASX tech stocks tipped to rocket higher in FY27

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 positions in and has recommended Megaport, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Thomson Reuters. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Data#3. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The BetaShares Australia 200 ETF (ASX: A200) has grown to be one of the most popular ASX ETFs available here in Australia.

A new report from Betashares has reinforced that the new capital gains tax (CGT) changes may have handed index ETFs like this one an advantage.

What is changing with the Capital Gains Tax?

Currently, if you own shares for more than 12 months in Australia, you generally get a 50% Capital Gains Tax (CGT) discount.

On 12 May 2026, as part of the 2026-27 Federal Budget, the Government announced it would reform negative gearing and capital gains tax (CGT) arrangements.

These changes will apply from 1 July 2027:

• Limit negative gearing for residential property investments to new builds.
• Replace the 50% CGT discount for individuals, trusts and partnerships with cost base indexation and a 30% minimum tax rate on capital gains.

What does this mean for investors?

In the latest report from Betashares, the ETF provider contends that under the new laws, it could make it more expensive (tax-wise) to own a portfolio of individual shares.

However owning an ASX ETF (like Betashares A200) may become more tax-efficient.

The proposed CGT indexation rules would reduce after-tax returns for investors who hold diversified portfolios of individual shares. 

This is because losses on underperforming stocks cannot fully offset gains on outperforming stocks after adjusting for inflation.

By contrast, investors who hold a single pooled investment, such as an ETF, avoid this issue. This is because gains and losses are effectively netted within the fund, resulting in a lower overall tax burden.

Therefore, index ETFs could theoretically become more tax-efficient than directly holding a portfolio of shares under the new CGT regime.

The case for this ASX ETF

According to Betashares, one way an investor can seek to reduce the CGT indexation tax drag that stems from holding a portfolio of stocks in their own name is to invest in a market-capitalisation index tracking ETF instead.

A pooled managed investment scheme, like a managed fund or an ETF, will invariably have some capital gains that need to be distributed on an ongoing basis. But index ETFs, such as A200, are already very tax efficient at minimising those ongoing tax consequences.

And now they have the additional benefit of being able to effectively offset winners and losers within the ETF. When an investor disposes of an ETF, the capital gain is calculated based on the ETF on-market price they buy and sell at, not at the underlying stock level.

Foolish takeaway

While investors should be aware of the upcoming changes to CGT, taxes are only one part of your overall return.

The quality of your investments, diversification, risk tolerance, and time horizon are often more important.

Your personal circumstances also matter.

The impact of the proposed CGT changes depends on your marginal tax rate, whether you invest personally or through a trust, company, or superannuation fund, and how often you buy and sell investments.

 

 

 

 

 

The post Why the CGT changes may have handed this ASX ETF an advantage : Expert appeared first on The Motley Fool Australia.

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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.

DroneShield Ltd (ASX: DRO) shares started the week on the front foot, climbing 5% to $2.52.

That gain comes after a difficult month, with the defence technology stock still down around 15% over the past four weeks and 36% over the past six months. It’s been a painful reversal for investors who piled into the stock during this year’s defence rally.

But the recent pullback also changes the investment story. Much of the hype has now faded, leaving investors to focus on the fundamentals rather than momentum.

While DroneShield remains a high-risk investment, its exposure to one of defence’s fastest-growing markets could make today’s valuation far more attractive than it was just weeks ago.

Why did DroneShield shares fall?

Unlike many sharp sell-offs, there wasn’t a single announcement that triggered last month’s decline.

Instead, several factors appear to have combined to cool investor enthusiasm. Hopes of a lasting peace agreement in the Middle East may have reduced expectations for future defence spending, particularly in technologies linked to modern conflict.

At the same time, some investors likely questioned whether the stock’s rapid rise had already priced in years of future growth. Earlier this year DroneShield shares were trading at a valuation that left little room for disappointment.

The recent correction suggests the market has become more realistic about both the opportunities and the risks.

A fast-growing market

DroneShield isn’t trying to compete with the world’s largest defence contractors across every military capability. Instead, the company has focused almost entirely on counter-drone technology—a market that has rapidly shifted from a niche defence category to a strategic priority.

Conflicts in Ukraine and the Middle East have highlighted how relatively inexpensive drones can threaten military assets, airports, critical infrastructure and public events. As a result, governments around the world are increasing investment in drone detection and counter-drone systems.

Industry forecasts suggest the global counter-UAS market could exceed US$15 billion annually by the early 2030s, supported by rising defence budgets and growing adoption among both military and civilian customers.

Those structural growth drivers remain firmly in place for DroneShield shares.

A specialist competing with industry giants

DroneShield may be small, but it has successfully carved out a valuable niche. The company competes alongside defence heavyweights including RTX Corp (NYSE: RTX) and Lockheed Martin Corp (NYSE: LMT), all of which have significantly greater financial resources.

Rather than relying on a single product, DroneShield offers an integrated platform combining drone detection, electronic warfare systems, artificial intelligence-powered tracking and command-and-control software.

That specialised approach has helped the company secure an increasing number of contracts across Europe, Latin America and the Asia-Pacific region.

For a business of DroneShield’s size, those contract wins demonstrate growing credibility with defence agencies worldwide.

What do analysts think?

Broker opinion remains sharply divided. According to TradingView data, only four analysts currently cover DroneShield shares. Two rate the stock as a strong buy, while the other two recommend selling.

Despite that split, the average 12-month price target sits at $3.41, implying potential upside of around 35% from current levels. The most bullish analyst believes the shares could reach $4.80, representing potential upside of more than 90%. The most pessimistic prediction is 9% below the current share price.

The post DroneShield shares are rebounding. Is this the turning point? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Here are the top 10 ASX 200 shares today
• Why did DroneShield shares crash 29% in June?
• Here are the top 10 ASX 200 shares today
• 3 reasons to buy DroneShield shares in July

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and RTX. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lockheed Martin. 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.

Once a week, I like to look at ASIC’s short position report to find out which ASX shares are being targeted by short sellers.

That’s because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Lotus Resources Ltd (ASX: LOT) remains the most shorted ASX share with short interest of 22.8%. This ASX uranium stock suspended its shares late last month pending an update on its Kayelekera Project. At present, Lotus shares are due to stay suspended until 16 July.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease again to 14%. It seems that short sellers aren’t confident the pizza chain operator’s turnaround will be successful.
• Boss Energy Ltd (ASX: BOE) has short interest of 13.4%, which is down week on week again. This uranium miner’s production outlook from 2027 is uncertain, with an update due by the end of August.
• DroneShield Ltd (ASX: DRO) has seen its short interest fall to 12%. This counter-drone technology company has been targeted by more short sellers since it announced an ASIC investigation into some announcements and insider share sales.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 12%, which is down meaningfully since last week. Short sellers may have been closing positions after the radiopharmaceuticals company announced the successful outcome of a Type B meeting with the US FDA.
• Paladin Energy Ltd (ASX: PDN) has 11.55% of its shares held short, which is up week on week. It is yet another uranium producer that short sellers are targeting.
• CAR Group Limited (ASX: CAR) has short interest of 11.5%, which is down since last week. There may be concerns that higher interest rates could weigh on the automotive market and listing volumes.
• Flight Centre Travel Group Ltd (ASX: FLT) has 11.4% of its shares held short, which is down slightly week on week. This travel agent downgraded its earnings guidance last month due to negative impacts from the Middle East conflict. Short sellers may believe the recovery won’t be as quick as many expect.
• Treasury Wine Estates Ltd (ASX: TWE) has short interest of 11%. The Penfolds owner is facing tough trading conditions due to the cost of living crisis.
• 4DMedical Ltd (ASX: 4DX) has seen its short interest ease again to 11%. This medical technology company is growing rapidly but its shares trade on sky-high multiples. Short sellers may believe its valuation is excessive.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, DroneShield, Telix Pharmaceuticals, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended CAR Group Ltd, Domino’s Pizza Enterprises, Flight Centre Travel Group, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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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 positions in and has recommended Cochlear, DroneShield, Hub24, Light & Wonder Inc, PEXA Group, Telix Pharmaceuticals, and WiseTech Global. The Motley Fool Australia has positions in and has recommended PEXA Group and WiseTech Global. The Motley Fool Australia has recommended Cochlear, Hub24, Light & Wonder Inc, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.