Category: Stock Market

Rio Tinto Ltd (ASX: RIO) shares have been climbing again in 2026.

But after a strong move from their lows, investors may be wondering whether the ASX mining giant is still worth buying today.

For a $5,000 investment, I think the answer is yes.

Here’s why.

The valuation looks reasonable

Based on the current share price, a $5,000 investment would buy about 30 Rio Tinto shares, before brokerage.

According to consensus estimates, Rio Tinto is expected to generate earnings per share of $11.88 in FY26 and $12.39 in FY27.

That puts the stock on a price-to-earnings ratio of around 13.8 times FY26 earnings and 13.3 times FY27 earnings.

For a large global miner, I think that looks reasonable. Rio Tinto is still exposed to commodity cycles, so investors should not treat those earnings forecasts as guaranteed. But the valuation does not look stretched to me, especially if copper demand remains strong.

The dividend profile also adds to the appeal. Rio Tinto is expected to pay fully franked dividends per share of $6.54 in FY26 and $6.81 in FY27. That implies forward dividend yields of around 4% and 4.1%.

On a $5,000 investment, that would mean roughly $199 in FY26 dividends and $207 in FY27 dividends, before franking credits.

Why I like Rio Tinto shares

My answer is yes, I would invest $5,000 into Rio Tinto shares for resources sector exposure.

The main reason is copper. Rio Tinto is still heavily associated with iron ore, and that remains a major part of the business. But I think the company’s long-term appeal increasingly comes from its exposure to commodities needed for electrification, energy infrastructure, data centres, and industrial development.

In its May presentation, Rio Tinto pointed to energy transition and artificial intelligence as dual demand drivers across its portfolio. The company also highlighted expected copper demand growth of 30% between 2025 and 2035.

That is where Rio Tinto looks attractive to me. Its copper operations include major low-cost assets such as Oyu Tolgoi, Kennecott, and Escondida. The company’s Oyu Tolgoi underground project is complete and Rio Tinto expects the mine to become the world’s fourth-largest copper mine around the end of the decade.

It is also targeting 40% to 50% production growth at Kennecott from 2025 to 2028.

Low-cost operations are valuable in mining because commodity prices can move sharply. A producer with strong assets and lower costs has a better chance of generating cash through weaker periods and benefiting strongly when prices are favourable.

What to watch

There are still risks to consider. Rio Tinto remains exposed to iron ore, China, commodity prices, project execution, cost inflation, and currency movements.

The share price is also much closer to its yearly high than its yearly low. Investors who bought near $109 have already captured a much more attractive entry point.

That is why I would treat a $5,000 investment as a long-term resources position rather than a short-term trade.

Foolish takeaway

I think Rio Tinto shares are a buy for investors who want exposure to high-quality mining assets and long-term copper demand.

The valuation looks reasonable, the forecast dividend yield is attractive, and the company has several ways to benefit from demand linked to electrification, energy infrastructure, and AI-related investment.

The share price could easily be volatile because this is still a cyclical resources business.

But if I were looking to invest $5,000 into the sector today, Rio Tinto would be one of the ASX mining shares I would be happy to buy.

The post Should I invest $5,000 into Rio Tinto shares? appeared first on The Motley Fool Australia.

More reading

• 9 ASX 200 shares downgraded by analysts this week
• China’s CPI and PPI data drops today. Here is the potential impact for these ASX shares
• How Rio Tinto, Fortescue and BHP shares stacked up in June
• 6 ASX 200 large-cap shares that rose 60% to 275% in FY26
• How to get started with a portfolio delivering $500 a week in passive income

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 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.

Who doesn’t want their superannuation working harder than they do?

For many Australians, super is the most tax-effective way to build long-term passive income. While you generally can’t access it until retirement, the payoff is generous tax concessions while you’re accumulating wealth and, potentially, tax-free income in retirement.

So, how much superannuation do you actually need to generate $5,000 a month in passive income?

The answer might be simpler than you think.

It all comes down to dividend yield

A monthly passive income of $5,000 equals $60,000 a year.

From there, it’s just a numbers game. Divide your desired annual income by the dividend yield of your portfolio, and you’ll have a rough estimate of the super balance required.

For example, a superannuation portfolio yielding 3% would require around $2 million to generate $60,000 in annual dividend income. Lift that yield to 4%, and the required balance falls to roughly $1.5 million.

At a 5% yield, you’d need around $1.2 million, while a portfolio generating 6% income could potentially produce the same annual passive income with approximately $1 million invested.

The lesson? The higher your portfolio’s dividend yield, the less capital you need to generate the same income.

Of course, there’s a catch.

Yield isn’t everything

A sky-high dividend yield might look attractive, but it can sometimes signal trouble ahead. If a company’s earnings weaken, today’s generous dividend could become tomorrow’s dividend cut.

That’s why many experienced investors focus on companies that can consistently grow their superannuation, profits and dividends over time, rather than simply chasing the highest yield available.

For investors seeking lower but dependable yields, companies like Wesfarmers Ltd (ASX: WES), Macquarie Group Ltd (ASX: MQG), and Washington H. Soul Pattinson and Co Ltd (ASX: SOL) have historically offered yields of around 2% to 3%, alongside solid long-term growth.

Those wanting a balance between income and stability could consider businesses such as Telstra Group Ltd (ASX: TLS), Transurban Group (ASX: TCL), or ASX blue-chip BHP Group Ltd (ASX: BHP), which have typically provided dividend yields in the 3% to 4% range, although payouts naturally fluctuate.

For investors primarily focused on maximising income, options such as BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX), MFF Capital Investments Ltd  (ASX: MFF), WCM Global Ltd (ASX: WQG) may be worth exploring.

Foolish takeaway

There isn’t one magic super balance that guarantees $5,000 a month in passive income. It all depends on the investments you own, the income they produce, and whether those dividends remain sustainable.

As a general guide, though, investors are likely to need somewhere between $1 million and $2 million invested in quality income-producing assets to generate $60,000 a year, depending on the average dividend yield of their portfolio.

The earlier you start building your superannuation, the more time compounding has to do the heavy lifting. That’s one advantage no investor should overlook.

The post How much superannuation do you need to earn $5,000 a month in passive income? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Up 12% in 2026! Are Wesfarmers shares now too expensive?
• How much could a $500,000 ASX share portfolio pay in dividends?
• Should you buy BHP shares FY27? Here’s what experts are saying
• Do you want to earn passive income from your superannuation? Here’s a guide to get you started

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, Transurban Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Mff Capital Investments, Telstra Group, Transurban Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

While the ASX has had a slow year in 2026, there are several emerging themes that have brought investors strong returns. 

Exploring the ASX ETFs that have captured momentum is a great way to identify opportunities. 

These opportunities stretch across global markets and sectors underrepresented here in Australia. 

ASX ETFs that capture these sectors provide investors with a chance to diversify away from ASX focussed portfolios. 

Here are three funds that have raced ahead of the ASX this year. 

Global X S&P Biotech ETF (ASX: CURE)

This ASX ETF invests in companies that may benefit from further advances in genomic science. This includes companies involved in gene editing, genomic sequencing, genetic medicine/therapy, computational genomics, and biotechnology.

The fund provides global exposure to emerging areas within the Health Care sector, at the intersection of science and technology.

Examples of biotechnology companies include those focused on immunotherapy treatments and vaccines to treat human disease. 

As many investors are aware, healthcare and technology are heavily underrepresented on the ASX compared with sectors such as resources and financials. 

This fund could attract investors looking to allocate funding to these sectors that are more prominent in the US. 

The fund has rocketed over the last month, and is subsequently up 25% year to date. 

VanEck Global Clean Energy ETF (ASX: CLNE)

This ASX ETF gives investors a diversified portfolio of 30 of the largest and most liquid companies involved in clean energy production and associated technology and clean energy equipment globally.

It targets businesses related to clean energy production and associated technology and equipment globally, from both developed and emerging markets. 

Relevant business activities include but are not limited to:

• Biofuel & biomass energy production, technology & equipment
• Ethanol & fuel alcohol production
• Fuel cells technology & equipment
• Geothermal energy production
• Hydro electricity production, turbines & other equipment
• Solar energy production, photo voltaic cells & equipment
• Wind energy production, turbines & other equipment. 

Year to date, it has risen an impressive 14%. 

BetaShares Japan ETF – Currency Hedged (ASX: HJPN)

This ASX ETF tracks the performance of an index (before fees and expenses) that provides diversified exposure to the largest globally competitive Japanese companies.

Japan has emerged as one of the most compelling markets for long-term investors after decades of deflation and muted investor interest. 

A combination of structural changes is reshaping the investment landscape, while corporate governance reforms are now gaining momentum. 

These tailwinds have contributed to this ASX ETF rising 18% year to date and 47% in the last 12 months. 

The post 3 of the best performing ASX ETFs to own right now appeared first on The Motley Fool Australia.

More reading

• Own GDX, MOAT, or ESPO? VanEck just announced ASX ETF dividends

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.

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

On The Bull this week, two experts give us their views on three ASX 200 shares.

Let’s take a look.

Regis Resources Ltd (ASX: RRL)

Materials was the strongest sector of FY26, rising 47% and producing a total return of 52% for investors.

The Regis Resources share price increased 37% to finish the year at $6.03.

Regis Resources benefitted from an 18% lift in the gold price last financial year.

John Athanasiou from Red Leaf Securities has a buy rating on this ASX 200 gold share for FY27.

He said:

Unaudited gold production of 101,500 ounces in the June quarter of 2026 was up 12 per cent on the prior quarter.

Group gold production guidance for full year 2026 is at the top end of guidance at 379,000 ounces.

The company had $1.21 billion in cash and bullion on hand at June 30, 2026, an increase of $692 million over the full financial year.

Earnings remain highly sensitive to gold price movements.

However, improving cash generation and a stronger balance sheet provide support through the cycle.

Regis remains a clean, leveraged expression to the gold theme.

Woolworths Group Ltd (ASX: WOW)

Woolworths was the top-performing company for capital growth within the ASX 200 consumer staples sector in FY26.

The Woolworths share price rose 29% to finish the year at $40.03 on 30 June.

Andrew Wielandt from DP Wealth Advisory has a hold rating on Woolworths shares.

He explained:

The supermarket giant generates a strong return on equity, but profits are tighter.

The company generated group sales of $18.1 billion in the third quarter of fiscal year 2026, up 4.5 per cent on the prior corresponding period.

Guidance for reported full year 2026 Australian food earnings before interest and tax growth is expected to be in the mid to high single digit range, but no longer at the upper end of the range.

Defensive earnings from supermarkets should underpin its business despite the weakening Australian economy.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price ripped 188% to finish FY26 at $62.65. 

Mineral Resources stock was on the rebound last financial year after a shocker in FY25.

Soaring lithium prices and the ramp-up of its Onslow iron ore project contributed to stronger earnings in the first half.

Mineral Resources reported its strongest half-year result ever with record revenue of $3.1 billion and EBITDA of $1.2 billion for 1H FY26.

Athanasiou has a sell rating on this ASX 200 mining share.

He said:

MIN is a diversified resources company, with extensive operations in lithium, iron ore, energy and mining services across Western Australia.

The diversified model provides some cash flow stability via mining services, but overall earnings remain cyclical and exposed to volatile bulk commodity markets.

Higher leverage amplifies downside risk during commodity downturns.

Execution complexity across multiple divisions adds additional risk relative to simpler, more focused producers.

While the company retains strategic asset value, earnings stability remains inconsistent, in our view.

Until we see a reduction in leverage and earnings volatility, the stock remains a sell, or in the underweight category.

The post Buy, hold, sell: Regis Resources, Mineral Resources, Woolworths shares appeared first on The Motley Fool Australia.

More reading

• How much could a $500,000 ASX share portfolio pay in dividends?
• ASX consumer staples shares are quietly surging while the rest of the market stalls. Here is why
• Regis Resources steps back from Vault Minerals bid, secures break fee
• Experts name 3 big-name ASX 200 shares to sell
• 10 fantastic ASX shares to buy for 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 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 S&P/ASX 200 Index (ASX: XJO) has had a slow year to date. 

Australia’s benchmark index is up less than 1% in 2026. 

Inflation, global conflict and high interest rates have all weighed on investor sentiment. 

However the slow rate of growth also means there are buy-low opportunities for stocks that have underperformed. 

Here are two ASX shares tipped for strong growth in the next 12 months. 

Magellan Financial Group Ltd (ASX: MFG)

Magellan Financial Group is an Australian-based diversified financial services group. Its heritage business is a funds manager investing in global equities and global listed infrastructure, founded in 2006.

It has risen just 0.7% year to date, but has declined 13% since March. 

The team at Morgans believe it could rise over the next 12 months. 

The broker updated its outlook on these ASX shares following the company’s 4Q26 AUM update.

MFG’s 4Q26 AUM update showed AUM fell ~A$1bn to A$36.7bn, driven by A$2.5bn of net outflows, partially offset by A$1.7bn of positive market movements. Overall, we view this as a softer quarter. 

The A$2.5bn in outflows is a step up from recent trend, running well above the A$0.3bn average outflows of the prior four quarters, and marking the largest quarterly outflow since 3Q23. We make relatively minor downgrades to FY26F/FY27F EPS on reduced AUM assumptions, following higher 4Q26 outflows than we expected. We lower our price target to A$11.26 (from A$11.29).

With the recent pullback in the share price, the broker now sees more upside and has upgraded its recommendation to an accumulate rating (previously a hold). 

From yesterday’s closing price, Morgan’s price target indicates 14% potential upside.

Adairs Ltd (ASX: ADH)

Adairs has also struggled in 2026. 

Adairs is a homewares and home furnishings retailer in Australia and New Zealand. The company has more than 170 stores across a number of formats as well as a growing online platform.

In 2026, its share price has fallen 18%. 

However, the team at Morgans recently updated its outlook on the company and sees rebound potential following recent share price softness. 

ADH provided a FY26 trading update, with Adairs performing ahead of expectations, Mocka largely in line, but ongoing weakness in Focus on Furniture continues to weigh on group earnings. 

Group EBIT is expected to be down ~1.3%. Given the ongoing weakness in Focus on Furniture and the extended remediation time required, the group intends to recognise an impairment charge of $62-28m ($56-60m after tax). This will be excluded from underlying earnings. We have made downward revisions to our earnings in FY26/27/28. 

The broker now has a $1.70 price target and an accumulate recommendation. 

From current levels, this indicates an upside potential of approximately 15%. 

The post 2 struggling ASX shares tipped to rebound up to 15% appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: James Hardie, Adairs, Minerals 260 shares
• 9 ASX 200 shares downgraded by analysts this week
• Are Adairs shares a buy, hold or sell after their trading update?
• This ASX retail stock is falling as a $68 million furniture headache bites
• 5 best ASX 200 financial shares of FY26

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

The Space Exploration Technologies Corp (NASDAQ: SPCX) listing on the US tech-heavy Nasdaq exchange was among the most anticipated stock debuts in history, but now that the dust is starting to settle, the question of what the real value of the company’s shares is has arisen.

Investors in SpaceX betting the company can deliver

Part of the difficulty in valuing the company is that of its three divisions, only the connectivity division, which operates the Starlink internet service, is turning a profit at the moment.

While they have large aspirations, the space and AI divisions are still burning cash, even though they are already generating significant revenue.

UBS has run the ruler over the company, and in a note to clients published this week, it sets out a positive investment thesis for SpaceX shares.

Interestingly, the UBS team says that as the company brings its Starship rocket system into service, the total addressable market for the company could increase to US$30 trillion.

UBS added regarding the company:

We view SpaceX as an unparalleled set of assets with a multifaceted return profile and multiple drivers of upside for long term, risk tolerant investors. Starship – the most advanced heavy-lift, re-usable rocket – is the foundational technology that unlocks opportunities in launch, communications and AI compute creating a total addressable market nearing US$30T. Starship would effectively give SpaceX commercial control over access to space for the next decade, and we expect revenues/EBITDA to grow at a ~70%/90% CAGR through ’31 to US$660B/US$512B as opportunities in AI and connectivity scale and rapid reusability drives the launch cost per kilogram to just $200 from $1K currently ($50K for the space shuttle).  

UBS said while it was not factored into their base investment case, the company was “uniquely positioned to exploit off planet business models as they emerge, providing investors a call option as Elon Musk looks to fulfill his vision of making life multiplanetary”.

The broker said the Starship rocket system was five times larger than SpaceX’s Falcon 9 reusable rocket, which would dramatically improve the cost of getting into orbit.

Starship would then feed into the Starlink business, UBS said, enabling the deployment of next-generation satellites, “super-charging the business with 10x the capacity per satellite at about 1/10th the cost”.

UBS also noted that the company’s AI division already had contracts with Anthropic and Alphabet, “while inexpensive access to space opens up the market for orbital compute”.

Massive new markets await

UBS added:

Longer term, we believe the company could exploit other opportunities created by its control of cheap access to space including travel, cargo, orbital manufacturing and access to the lunar (and eventually, Martian) surface. While difficult to quantify, we believe these opportunities will come into focus over the next several years and become a key driver of the shares despite their lack of reference in our 5-year model.

UBS has a price target of US$210 on SpaceX shares.

The post How high will SpaceX shares go according to UBS? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• With Hormuz closed, is there an opening to buy Woodside shares?
• Up 12% in 2026! Are Wesfarmers shares now too expensive?
• ASX 200 drops as soaring oil prices rattle global markets
• Why this ASX 200 energy stock is crashing 5% on Monday

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

It was a wild, volatile, but positive start to the trading week for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Monday. After opening in the red this morning, investors quickly turned things around with a run of buying. But that didn’t last long either, with the index spending most of the day in red territory.

However, the ASX 200 staged a late comeback and only just managed to finish in the green, gaining 0.028% for the day and finishing at 8,808.5 points.

This shaky start to the trading week for the Australian markets came after a happy finish to the American trading week on Friday night (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) fared decently, rising 0.29%.

In a rare event, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) also gained 0.29%.

But let’s return to this week and the local markets to see how the various ASX sectors performed this session.

Winners and losers

At the front of today’s red sectors were tech stocks. The S&P/ASX 200 Information Technology Index (ASX: XIJ) was hit hard, plunging 2.48%.

Gold stocks were also hit hard, with the All Ordinaries Gold Index (ASX: XGD) cratering 1.89%.

Utilities shares were unpopular, too. The S&P/ASX 200 Utilities Index (ASX: XUJ) saw its value tank 1.63% today.

Consumer staples stocks were no safe haven either, as you can see by the S&P/ASX 200 Consumer Staples Index (ASX: XSJ)’s 0.91% slump.

Mining shares didn’t hold water. The S&P/ASX 200 Materials Index (ASX: XMJ) sank 0.65% this Monday.

Nor did healthcare stocks, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) dropping 0.61%.

Industrial stocks were our final losers today. The S&P/ASX 200 Industrials Index (ASX: XNJ) slid 0.17% down.

Let’s turn to the winners now. Leading the push higher were communications stocks, evidenced by the S&P/ASX 200 Communication Services Index (ASX: XTJ)’s 0.89% surge.

Consumer discretionary shares proved popular as well. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) jumped 0.86% today.

We could say something similar for financial stocks, with the S&P/ASX 200 Financials Index (ASX: XFJ) advancing 0.67%.

Energy shares also ran relatively hot. The S&P/ASX 200 Energy Index (ASX: XEJ) put on an additional 0.66% this Monday.

Finally, real estate investment trusts (REITs) only just got over the line, illustrated by the S&P/ASX 200 A-REIT Index (ASX: XPJ)’s 0.04% inch higher.

Top 10 ASX 200 shares countdown

Biotech company Mesoblast Ltd (ASX: MSB) was the best share on the index. Mesoblast stock leapt 4.91% higher this Monday to close at $2.35. This was potentially a reaction to a bullish broker note, which we covered this morning.

Here’s the rest of today’s best: 

ASX-listed company	Share price	Price change
Mesoblast Ltd (ASX: MSB)	$2.35	4.91%
Ampol Ltd (ASX: ALD)	$36.75	4.17%
Genesis Minerals Ltd (ASX: GMD)	$5.88	3.70%
Viva Energy Group Ltd (ASX: VEA)	$2.33	3.56%
Sigma Healthcare Ltd (ASX: SIG)	$2.92	3.55%
ARB Corporation Ltd (ASX: ARB)	$18.03	2.85%
Karoon Energy Ltd (ASX: KAR)	$1.45	2.12%
Insurance Australia Group Ltd (ASX: IAG)	$8.35	1.95%
Wesfarmers Ltd (ASX: WES)	$91.32	1.81%
Telstra Group Ltd (ASX: TLS)	$4.98	1.63%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

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

More reading

• Up 12% in 2026! Are Wesfarmers shares now too expensive?
• ASX 200 drops as soaring oil prices rattle global markets
• How much could a $500,000 ASX share portfolio pay in dividends?
• Regis Resources steps back from Vault Minerals bid, secures break fee
• Why Mesoblast shares could double in value

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

Well, it seems we are back to square one in the Strait of Hormuz. The fragile ceasefire between the United States and Iran apparently collapsed over the weekend. The United States has resumed strikes on Iran, while Iran has announced that, once again, ships are not permitted to transit the Strait of Hormuz. Does this mean investors should look to ASX energy shares like Woodside Energy Group Ltd (ASX: WDS)?

Yes, we seem to be in a new phase of crisis when it comes to this all-important, and now universally recognised global chokepoint. With ships unable to transit the Strait, markets have turned bearish. The S&P/ASX 200 Index (ASX: XJO) is lower today, currently down by about 0.4%. But naturally, ASX energy shares like Woodside are going the other way. Woodside itself is currently up 0.3% in today’s session to $29.14 a share. Since last Tuesday, this stock, the largest oil and gas producer on the ASX, has lifted by a confident 4.15%.

Although not quite as high as the near-$36 levels we were seeing back in April, Woodside is still up by more than 23% in 2026 to date. Over the past 12 months, investors have enjoyed a 21% return.

Despite these impressive gains, Wodoside shares are still trading on an eye-catching dividend yield of 5.67% at present.

So, with global oil prices spiking once again, and a yield of that size on the table, are Woodside shares currently in the buy zone?

Woodside shares: Time to buy?

I think anyone debating this question is missing the forest for the trees. In Warren Buffett’s view of investing, which I share, good investing practice involves buying high-quality companies that have the ability to compound their earnings over many years at cheap prices.

I think Woodside falls short on a few of those criteria. Firstly, Woodside shares are becoming more expensive, not cheaper, as a result of recent events. That’s not a buy signal in my book.

Secondly, the latest developments in the Middle East are small chapters in what is becoming a very long book indeed. Yes, the Strait is back to being closed. But no one knows if it will reopen tomorrow, next week, or next year. Buying an energy stock based on a view of when a future event may occur is getting dangerously close to flipping a coin. A gamble is, or at least should be, a very different proposition from an investment decision.

Thirdly, it’s my view that most energy shares are not high-quality compounders. Their profits are largely out of their control, riding or dying on the back of fickle global energy prices. This can be great when prices are high. But it can also lead to a prolonged drought if energy prices remain subdued.

So no, I don’t think Woodside shares are attractive following the events of the weekend. In my view, there are simply too many unknowns to make an informed investment decision given the current circumstances.

The post With Hormuz closed, is there an opening to buy Woodside shares? appeared first on The Motley Fool Australia.

More reading

• Is the Woodside share price a buy for its 14% dividend yield?
• 5 things to watch on the ASX 200 on Monday
• ASX 200 energy shares rebound after US-Iran peace deal falls apart
• How much do I need in my superannuation to get $50k per year in passive income?
• 5 things to watch on the ASX 200 on Friday

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.

Wesfarmers Ltd (ASX: WES) shares are pushing higher again on Monday.

At the time of writing, the Wesfarmers share price is up 1.41% to $90.96. Today’s gain takes its rise in 2026 to around 12%.

The stock is also trading only about 4% below its 52-week high of $95.18.

There haven’t been any new company announcements today. However, Macquarie has lifted its price target by 1.2% to $86.

While the increase is positive, the new target still sits below the current share price.

So, has the market pushed Wesfarmers shares too far?

Why have Wesfarmers shares climbed?

The recent results help explain why the share price has kept climbing.

Wesfarmers reported a 3.1% increase in first-half revenue to $24.21 billion, while net profit rose 9.3% to $1.60 billion. The fully-franked interim dividend also increased 7.4% to $1.02 per share.

Bunnings remained the largest contributor, with earnings rising 5% to $1.39 billion. Kmart Group earnings increased 6.1% to $683 million.

Returns on capital (ROC) were around 70% at both businesses, which remains one of Wesfarmers’ biggest strengths.

Nonetheless, Wesfarmers is still looking for more growth. Bunnings has expanded into categories including tools, workwear, rural products, and automotive accessories. Kmart has kept expanding its Anko range and opened more joint venture stores in the Philippines.

Management said in February that its retail businesses had continued trading well through the first 6 weeks of the second half.

Brokers remain cautious

The share price now sits well above most broker forecasts.

Macquarie’s new $86 target is one of the higher recent estimates, but it still sits around 5.5% below the current share price.

Goldman Sachs and CLSA both have $78 targets, while Citi is more bearish with a $69 target.

Most analysts remain cautious. Investing.com currently shows an average 12-month price target of $76.36, around 16% below today’s price, along with an overall sell consensus.

The valuation is another reason for the caution. Wesfarmers trades on a trailing price-to-earnings (P/E) ratio of 33.7 times and offers a dividend yield of about 2.8%.

What does the chart show?

Momentum remains strong, although the stock is nearing overbought territory.

Wesfarmers has a relative strength index (RSI) reading of 68, just below the level of 70 generally viewed as overbought.

The share price is also above the middle Bollinger Band at around $88.48. The 52-week high near $95.18 is the next resistance level, while the $88 to $90 area is the nearest support zone.

Wesfarmers is still producing solid earnings, but the share price now leaves less room for a weak result.

The full-year result on 27 August will show whether earnings are keeping pace with the share price.

The post Up 12% in 2026! Are Wesfarmers shares now too expensive? appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Macquarie Group, and Wesfarmers. The Motley Fool Australia has recommended Macquarie Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is trading lower on Monday as another jump in oil prices weighs on global markets.

At the time of writing, the benchmark index is down 0.38% to 8,772 points after briefly moving above 8,820 earlier in the session.

The selling is spread across much of the market, with 118 ASX 200 shares trading lower, compared with 75 in positive territory and 7 stocks unchanged.

However, gains from the major banks and several energy shares are helping keep the decline from becoming much larger.

Here’s what is behind today’s fall.

Oil jump rattles global markets

The latest weakness follows another escalation in the conflict between the United States and Iran over the weekend.

Brent crude oil futures have climbed around 4% to more than US$79 a barrel, while West Texas Intermediate (WTI) crude is trading above US$74.

Concerns remain centred on the Strait of Hormuz and the potential disruption to energy shipments through the key waterway.

The oil rise is also adding to inflation concerns and has pushed US futures lower ahead of Monday night’s session.

S&P 500 Index (SP: .INX) futures are down 0.48%, while Nasdaq Composite Index (NASDAQ: .IXIC) futures are falling 1.12%.

Asian markets are also mostly lower. South Korea’s Kospi has dropped around 5%, while Japan’s Nikkei is down more than 1%.

Tech, healthcare and miners in the red

The weaker global lead is hitting several of the ASX 200’s larger growth and resources stocks.

Xero Ltd (ASX: XRO) shares are down 3.57% to $70.78, while WiseTech Global Ltd (ASX: WTC) has tumbled 2.32% to $33.21.

ResMed Inc (ASX: RMD) shares have dropped 5.53% to $28.37, and CSL Ltd (ASX: CSL) is 0.94% lower at $121.73.

The major miners are also weighing on the index. BHP Group Ltd (ASX: BHP) shares are down 0.70% to $57.87, while Rio Tinto Ltd (ASX: RIO) has slipped 0.58% to $163.53.

Mineral Resources Ltd (ASX: MIN) is among the heavier fallers, sinking 4.12% to $57.24.

Consumer staples are also lower. Woolworths Group Ltd (ASX: WOW) shares are down 1.07% to $39.73, while Coles Group Ltd (ASX: COL) has dipped 1.66% to $23.17.

Banks and energy shares provide support

The ASX 200 would be much lower without support from the major banks.

Commonwealth Bank of Australia (ASX: CBA) shares are up 0.26% to $169.30. Westpac Banking Corp (ASX: WBC) has added 0.30% to $36.65, National Australia Bank Ltd (ASX: NAB) is 0.43% higher at $39.78, and ANZ Group Holdings Ltd (ASX: ANZ) has gained 0.69% to $36.30.

Higher oil prices are also helping some energy stocks. Woodside Energy Group Ltd (ASX: WDS) shares are up 0.33% to $29.15.

The post ASX 200 drops as soaring oil prices rattle global markets appeared first on The Motley Fool Australia.

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