Category: Stock Market

S&P/ASX 200 Index (ASX: XJO) shares are 0.7% lower at 8,785.6 points on Tuesday.

Ord Minnett has published new notes on three ASX shares today.

The broker reckons all of them present good buying opportunities. Here’s why.

Fortescue Ltd (ASX: FMG)

The Fortescue share price is $15.27, up 0.2% today and down 24% over 12 months. 

Ord Minnett has a buy rating and a 12-month price target of $19 on this ASX 200 mining share. 

This implies a potential 24% upside ahead.

In a new note, the broker explained its buy recommendation on Fortescue shares:

Fortescue (FMG) provided a preliminary September quarter update that was weaker-than-anticipated.

Iron ore shipments of 46.8 million tonnes (Mt) over the quarter was down 6% year-on-year and below market expectations for 49.7Mt.

While maintenance activity and planned port shutdowns affected shipments, the larger issue remains the unresolved iron ore contract negotiations with the China Mineral Resources Group (CMRG), which meant that sales volumes were even softer at 42.9Mt, as the state-backed buyer restricted deliveries of FMG cargoes.

The key issue in negotiations with CMRG appears to be long-term offtake pricing.

We assume FMG can conclude its negotiations with CMRG by the end of CY26, but if negotiations drag on, management may need to alter mine plans, adjust stockpiling strategies and reconfigure parts of its supply chain to accommodate lower sales volumes.‍

Resmed CDI (ASX: RMD)

The Resmed share price is $34.34, up 0.8% today and down 16% over 12 months. 

Ord Minnett has a buy call and a $36.20 price target on this ASX healthcare share. 

This suggests a potential 5% upside ahead.

The broker commented:

We expect the capital management program to support the shares and earnings. RMD has flagged more than US$1.85 billion will be returned to shareholders through share buybacks and dividends during FY27.

Its sleep business we expect will continue to grow ahead of market, and margins will return to expansion as productivity efficiencies and pricing take effect.

Further, RMD’s forward price-earnings multiple (circa 18x consensus) is not demanding against our EPS growth estimate of 8% in FY27 (in US dollars).

ARB Corporation Ltd (ASX: ARB)

The ARB share price is $16.97, down 0.6% today and down 53% over 12 months. 

Ord Minnett has a buy rating and a $28 price target on this ASX 200 consumer discretionary share.

This implies a potential 65% upside ahead.

The broker said:

ARB-relevant vehicle sales declined 14.4% on the pcp in Sep-26. Key ARB Toyota vehicles were mixed — HiLux sales declined 11.7% and the LandCruiser declined 59.4%, while the LandCruiser Prado grew 6.4%.

The Ford Ranger, another key ARB model, grew 4.0% and was the highest-selling vehicle in the month.

ARB expects FY27 key vehicle sales to be broadly in line with FY26, with upside from improved Toyota supply.

With 1Q27 key model sales 16.3% below the pcp, this requires a recovery over the remainder of the year.

Toyota’s August 2026 data showed further improvement in exports to Oceania, and we continue to forecast a return to earnings growth in FY27, assisted by improved supply, strong gross profit margins and continued offshore expansion.

The post 3 ASX 200 shares to buy and why: Ord Minnett appeared first on The Motley Fool Australia.

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

I’m always interested in companies with the potential to become much bigger businesses over time.

And right now, there are two ASX shares that I think have particularly exciting growth prospects.

Here’s why I would be happy buying them today.

Zip Co Ltd (ASX: ZIP)

Zip is a share I think has plenty of growth ahead of it, especially in the United States.

The buy now, pay later provider has established a growing presence in the American payments market, giving it access to an enormous pool of potential customers and merchants.

What I like is how much more business Zip could generate through its existing platform. As it attracts new merchants and increases transaction volumes, there is an opportunity to generate additional revenue without costs increasing at the same rate.

That could support considerable earnings growth over the next few years. And I think the current valuation makes that opportunity worth considering.

With Zip shares around $2.15, they are trading on a PE ratio of 14 times consensus FY27 earnings, falling to less than 10 times FY29 earnings. I think that could prove very cheap if the company delivers on market expectations.

Of course, there are challenges. Higher interest rates could make funding more expensive and put pressure on Zip’s margins. They could also place additional strain on customers, potentially leading to higher bad debts.

That makes disciplined lending particularly important as the company expands. But if Zip can keep growing its share of the enormous US market while maintaining credit quality, I think shareholders could be rewarded handsomely.

DroneShield Ltd (ASX: DRO)

DroneShield is another ASX share I would buy, although I think it requires considerable patience. The counter-drone technology company’s shares are trading around $1.48 on Tuesday, having fallen sharply from their previous highs.

That weakness comes despite what I believe is an increasingly important long-term market opportunity. Drones have become a major part of modern warfare, and governments are investing in technology capable of detecting and defeating them.

DroneShield has developed a range of systems designed to address these threats, and its growing presence in international defence markets could support substantial sales growth.

The opportunity now is to turn its expanding sales pipeline and procurement agreements into meaningful contracts.

Valuation is a challenge, with DroneShield trading on a very high forward PE ratio. But I don’t think that is the best way to assess the company at this stage.

In some ways, DroneShield reminds me of Zip shares during its earlier rapid-growth phase, when building the business and expanding its market presence were major priorities.

What I want to see is DroneShield developing the scale to convert growing demand into substantial, sustainable profits.

That is far from guaranteed. Defence orders can be unpredictable, competition is increasing, and the company still has execution and regulatory uncertainties to resolve. Nevertheless, I think the potential rewards justify considering the shares as a higher-risk investment.

Foolish takeaway

I would be happy buying both Zip and DroneShield shares today.

There is plenty that could go wrong, but I think both companies have opportunities to become much larger businesses over the coming years.

For investors comfortable with volatility and prepared to take a long-term view, I believe they could deliver excellent returns.

The post Why I'd buy Zip and DroneShield shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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.

ANZ Group Holdings Ltd (ASX: ANZ) has plenty happening behind the scenes.

The banking giant is working to simplify its operations, improve efficiency, and make better use of its position in the Australian and New Zealand markets.

But with interest rates rising and the economic outlook remaining uncertain, is now a good time to buy ANZ shares? Here’s my view.

Why I like ANZ shares

One reason I like ANZ shares is the variety of businesses it operates.

Alongside its Australian mortgage and deposit operations, ANZ has a substantial banking business in New Zealand and a well-established institutional division serving large companies across international markets.

I think that provides several opportunities to generate earnings and build stronger customer relationships.

But what interests me most today is the work management is doing to improve the business. ANZ has been implementing its ANZ 2030 strategy, which aims to simplify the bank, reduce costs, and improve customer experiences.

A significant part of this involves integrating Suncorp Bank and bringing customers onto ANZ’s existing systems. Management is targeting substantial annual cost savings from the integration, with the full benefits expected towards the end of the decade.

I think there is considerable potential here. If ANZ can reduce duplication, improve its technology, and operate more efficiently, it could generate stronger returns from its existing businesses.

That gives me a reason to be positive about its longer-term prospects.

What about the economic outlook?

The next year could still be challenging for ANZ.

Australian interest rates have been rising as the Reserve Bank attempts to bring inflation under control, with further increases possible.

Higher rates can help banks earn more from lending, particularly when their funding costs increase more slowly. But competition for mortgages and deposits can limit those benefits. 

Higher borrowing costs can also reduce demand for new loans and put pressure on households and businesses. I think that helps explain why analysts are expecting relatively little earnings growth in the near term.

Consensus forecasts point to earnings per share of approximately $2.57 in FY26 and $2.55 in FY27. That is hardly an exciting outlook, but I think it is important to look beyond the next financial year.

The benefits of ANZ’s transformation should become more meaningful as its integration and efficiency programmes progress. For me, that provides an opportunity for earnings to improve over the following years.

Is the price reasonable?

ANZ shares are currently trading around $38.86. Based on consensus forecasts, that puts the bank on a price-to-earnings ratio of approximately 15 times FY27 earnings.

I think that is a reasonable price for a major Australian bank with opportunities to improve profitability.

There is also a healthy dividend on offer. Analysts expect ANZ to pay $1.66 per share in dividends in both FY26 and FY27, representing a dividend yield of approximately 4.3% at today’s price.

That provides some income while investors wait for the bank’s transformation to deliver results.

Foolish takeaway

I would be happy buying ANZ shares around $39.

I’m not expecting particularly strong earnings growth in 2027, but I think the work management is doing could leave ANZ in a much better position over the next few years.

With a reasonable valuation and a healthy dividend, I think there is enough on offer to make it worth buying today.

The post Is now a good time to buy ANZ shares? appeared first on The Motley Fool Australia.

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

Woolworths Group Ltd (ASX: WOW) shares are up around 1% to $41.66 at the time of writing on Tuesday afternoon.

At one point earlier this morning, the shares were trading at an all-time high of $41.78 a piece.

The shares have spiked 9% higher over the past two weeks alone, and they’re now up an impressive 41% for the year-to-date.

What has sent Woolworths shares flying higher?

The supermarket giant hasn’t posted any price-sensitive news since its FY26 results announcement in August.

The sky-high share price has most likely been driven by renewed investor confidence that the company’s turnaround story is finally coming to fruition, after a difficult period in 2025.

In late-August, Woolworths posted a 3.6% year-on-year increase in sales and a 6.7% increase in EBITDA (before significant items). On the bottom line, Woolworths achieved a 15.4% increase in its NPAT (before significant items) for the year. Management also declared a 52-cent per share dividend, up 15.6% from FY25.

There has clearly been a shift in investor sentiment, and I think more recently a sector-wide investor rotation towards more defensive assets (and away from riskier or high growth shares), and some fresh economic data, has helped to propel the share price higher.

Last week, The Australian Bureau of Statistics (ABS) released data showing that, in seasonally adjusted terms, Australia’s employment rate increased by 0.1 percentage point to 4.7% in September. 

This has significantly boosted investor confidence that the Reserve Bank will decide to hold interest rates steady at its next meeting on the 3rd of November, rather than implement another hike as originally feared.

Less chance of another near-term interest rate hike has eased financial pressure on households. This is great news for an ASX consumer staples stock like Woolworths. As the company also leases large-scale stores, warehouses and distribution centres, it is highly sensitive to higher interest rates and higher lease costs.

The shares could also be climbing higher ahead of the company’s first-quarter FY27 update and annual general meeting. These are scheduled for the 28th and 29th of October, respectively.

Are the supermarket shares a buy, sell, or hold now?

According to expert forecasts, Woolworths shares are trading above fair value and we could see a correction ahead.

Market Index data shows brokers are split between a hold and a sell rating. However, the $37.73 average target price implies a downside of around 9%, at the time of writing.

Sentiment is similar on TradingView, although the majority (nine out of 17) have a hold rating on the shares. Another six rate Woolworths as a sell/strong sell and two have a buy rating.

The average $39.71 target price, however, still implies a downside of around 4%, at the time of writing.

The post Woolworths shares jump 9% to all-time high: Buy, sell or hold? appeared first on The Motley Fool Australia.

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

DroneShield Ltd (ASX: DRO) shares have been volatile over the past year, trading in a wide range from $1.41 right up to $5.09.

They are currently changing hands for $1.50, down 66.3% over a 12-month period.

The analysts at Cannacord Genuity believe this represents a good opportunity to buy in, and have a bullish 12-month share price target on the company, which I’ll get to shortly.

First let’s look at some recent news from DroneShield.

Revenue to come in as expected

Last week, DroneShield released an update, revealing that its committed revenue for FY26 was $261 million, which was at the midpoint of guidance of $250-$270 million.

Managing Director Angus Bean said at the time:

This is an encouraging update as we approach the end of the year. FY2026 Committed Revenue of $261 million is approximately 35% above that in October 2025, and 121% of our full-year revenue in 2025. We also have $29 million in Committed Revenue for FY2027 and a further $17 million for FY2028 and beyond. Committed Revenue gives us valuable visibility into future periods, with growing evidence of DroneShield’s leading role in the counter-drone industry. 2026 has been an important year when foundations have been reset, the platform has been built out, and we prepare for continued scale and growth in 2027 and beyond.

The research report from CG says that committed revenue for FY27 and FY28 was currently $29 million and $17 million, respectively.

They added that 15% of committed revenue was non-military, which was an important diversification.

CG said a late September announcement from DroneShield that it had been awarded a Joint Interagency Task Force contract in the US with a ceiling value of US$500 million was also a positive.

They said the DroneShield was one of 10 counter-drone operators of various sizes awarded the contracts, with US$500m ceilings being the largest awarded.

They added:

While not representing order guarantee, this is a strong indication of budgeting process from an existing DRO customer, with DRO having successfully completed delivery of a $25m order for DSX systems deployed on US military Infantry Squad Vehicles in September, an order executed through JIATF-401. In our view, this acts as a very late-stage, 3-year pipeline opportunity with clear visibility on contract orders from the US Department of War that has indicated its counter-drone spending intentions as a strategic priority.

DroneShield shares looking cheap

CG said they remained positive about DroneShield, despite the fact that its growth path was non-linear and difficult to predict.

They said, “we see increasing pipeline visibility and next generation product releases as future potential catalysts for the stock”.

CG has a price target of $2.60 on DroneShield shares compared to $1.50 currently.

DroneShield is valued at $1.44 billion.

The post How high will DroneShield shares go? A broker weighs in appeared first on The Motley Fool Australia.

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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 DroneShield. 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 reckon many Australians would love to have a $1 million ASX share portfolio. That represents significant wealth; it’d unlock bountiful passive income and provide financial security.

It can be a fairly simple journey to reach $1 million, but it’s certainly not easy, particularly with a higher cost of living these days. It may not be possible for every Australian, but it’s not impossible.

For starters, full-time working Australians regularly receive superannuation contributions thanks to the mandatory superannuation guarantee (SG). That alone can help plenty of Australians build a nest egg worth hundreds of thousands of dollars (if not millions) over the decades.

But this article isn’t specifically about investing in ASX shares in superannuation. The plan focuses on building wealth outside super, which could be particularly useful for people who want to create financial independence and potentially retire earlier than their mid-60s.

Having a $1 million portfolio could unlock significant cash flow for an investor. For example, with a 4% dividend yield, $1 million could create $40,000 of dividend income. A 5% dividend yield could create $50,000 of annual passive income.

In finance spaces, people talk about a 4% safe withdrawal rate (including probably increasing the withdrawal dollar amount for inflation each year) as being a way to live off the money without it running out during retirement. I like that type of plan, particularly when you consider how the ASX share market has returned more than 4% per year over the long term, so the portfolio balance could continue increasing over the years.

Let’s look at the three steps I’ suggest, and what I’m using, to build towards a $1 million ASX share portfolio.

Get personal finances in order: earn and save

Personal finances are the foundation of a good investment footing.

Earning and saving is what creates the money to invest and the financial stability to stay invested during all economic conditions.

Boosting earnings is one of the best things we can do for our finances.

Of course, growing our income is easier said than done. It could involve taking on some more hours of work, learning a new skill or tool, getting a qualification or creating a second source of work income (either as an employee or as a business).

We don’t need to bring in more income of course, but this is about creating flexibility in the household finances to be able to start building wealth with investments, or else the net worth won’t change.

It could involve a lot of hustling to bring in that second income. As an example, when I first started writing part-time at Motley Fool a decade ago, I was still working full-time in my other job. The extra income helped my household have the cash for investments. Again, it’s a choice of how (or if) we grow our income.

The other side of the coin is the spending. Spending less than we earn is a key factor in reaching a $1 million ASX share portfolio (particularly outside of superannuation).

Someone earning $50,000 and saving $10,000 each year could build their non-superannuation wealth faster than someone earning $150,000 but they only save $5,000 per year.

Motley Fool isn’t a frugal tips website and every household has a different financial picture, so for people who want to reduce spending, you’ll need to figure out what makes sense. But, things like giving Aldi a go for food shopping, making bulk meals, avoiding consumer-related debt, buying second-hand items where it makes sense (such as cars) and so on could make a big difference.

I also think it’s a good idea to have an emergency fund. Start with $1,000 in a savings account and build toward three to six months of living expenses, which is particularly important when a household relies on a main breadwinner. You don’t want to have to sell shares during weak economic times because you need the cash.

Consistently invest in (ASX) shares

Once we have regular monthly savings and an emergency fund, we can start investing in the ASX share market.

Consistently putting money into the stock market is a good routine and helps you buy (more) when the market is weak. I love it when the stock market falls because it means better prices. As Warren Buffett, one of the world’s greatest investors, once said:

To refer to a personal taste of mine, I’m going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the ‘Hallelujah Chorus’ in the Buffett household. When hamburgers go up in price, we weep. For most people, it’s the same with everything in life they will be buying — except stocks. When stocks go down and you can get more for your money, people don’t like them anymore.

Whether it’s investing $500 a month, $1,000 a month, $2,500 a month or even more, I think it’s great to regularly put money into the market. Dollar-cost averaging (DCA) is a great tactic.

What should investors buy? Well, that’s what Motley Fool is all about – helping Australians find the right investments for their portfolio.

I certainly think that exchange-traded funds (ETFs) can form the core part of the portfolio, with additional investments (such as ASX growth shares) being used for potentially stronger returns or extra diversification.

Some ASX ETFs I really like as a ‘core’ investment include Vanguard MSCI Index International Shares ETF (ASX: VGS) or VanEck MSCI International Quality ETF (ASX: QUAL) for global diversification. Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is my preferred pick for Australian investment exposure.

One thing I want to mention is that I avoid margin lending, CFDs and other financial instruments that significantly increase the risk of investing and could lead to a permanent loss of that capital if the bet goes wrong.

Watch compounding work its magic

Investing is great for building wealth because it can grow itself. If something returns an average of 10% per year, it can double in value after approximately eight years. It could then double again in another eight years. And so on.

Compounding is a very powerful force that helps our financial numbers get progressively bigger. The share market has proven it’s an incredible tool for wealth building, even if there’s some volatility along the way.

As Albert Einstein once supposedly said:

Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.

Life doesn’t necessarily work out exactly like a spreadsheet, but I want to show how regularly investing certain dollar amounts could deliver a $1 million ASX share portfolio. Sometimes we may be able to invest more per month and sometimes it could be a bit less.

If someone invested $500 per month and it returned 10% per year, it would turn into $1 million in around 30 years.

Investing $1,000 per month at a 10% annual return would reach $1 million within 24 years.

Investing $2,500 per month with a 10% average return per year turns into a $1 million ASX share portfolio within 16 years.

Finally, investing an impressive $5,000 per month at an average return of 10% per year would become in less than 11 years.

So, what are you waiting for? Get saving and investing!

The post 3 steps to build a $1 million ASX share portfolio appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in VanEck Msci International Quality ETF and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. 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.

BHP Group Ltd (ASX: BHP) shares have come under pressure on Tuesday following the release of the mining giant’s latest quarterly update.

The shares are down around 2% to $59.19 as investors digest the company’s operational performance and outlook.

There were some mixed results, but I think the announcement provides several reasons to remain positive about BHP’s future.

Here’s what stood out to me.

A strong performance from iron ore

One thing I liked about the update was the performance of BHP’s Western Australian iron ore operations. Production increased 4% compared with the same quarter last year, despite considerable planned maintenance.

The company also achieved first-quarter production records at both its mines and ports, demonstrating the strength of its integrated operations.

I think that is encouraging because iron ore remains an important source of cash flow for BHP. Keeping these operations running efficiently helps provide the financial resources needed to invest in other parts of the business.

Management also maintained its production guidance for FY27, giving me confidence that operations are progressing broadly as expected.

Copper remains the big opportunity

The copper result was less impressive, with production falling 19% during the quarter. Lower ore grades, scheduled maintenance, severe weather, and operational disruptions all contributed to the decline.

Nevertheless, BHP maintained its full-year copper production guidance. And there was some encouraging news on pricing, with average realised copper prices increasing 53% compared with the same period last year. That could provide a meaningful earnings benefit if prices remain elevated.

Looking further ahead, I continue to believe copper will become an increasingly important part of BHP’s investment case.

Demand from electricity networks, renewable energy, and AI infrastructure should create opportunities for producers capable of supplying large quantities of the metal.

BHP is preparing for that demand. The company announced further progress on its copper expansion plans, including additional funding for the proposed new concentrator at Escondida in Chile.

It also reported an increase in the mineral resource base at Olympic Dam, supporting its longer-term ambitions in South Australia.

I think these developments could help BHP become a substantially larger copper producer over the coming decade.

Another growth opportunity approaching

I was also pleased to see continued progress at BHP’s Jansen potash project in Canada.

Stage 1 is now 87% complete, with first production still expected in mid-2027. I think this could become an important addition to BHP’s portfolio.

Potash provides exposure to agriculture and global food production, giving the company another source of demand beyond its established metals businesses.

There is still considerable investment required, but Jansen is getting closer to becoming an operating business.

Foolish takeaway

I would be happy buying BHP shares following today’s update.

The weaker copper production deserves attention, but I like that management has maintained guidance while continuing to advance its major growth projects.

For me, the combination of strong iron ore operations, growing copper ambitions, and the approaching start of potash production makes BHP a mining share worth owning for the long term.

The post Should I buy BHP shares after its update? appeared first on The Motley Fool Australia.

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

Investing $10,000 in an exchange-traded fund (ETF) could be a great way to build wealth over the long term.

And one of the most popular options on the ASX is the Vanguard Australian Shares Index ETF (ASX: VAS).

But is this an ETF I would choose for a $10,000 investment today? Here’s what I think.

A simple way to own Australian shares

One of the things I like about the VAS ETF is how much exposure it provides through a single investment.

The fund tracks the S&P/ASX 300 Index (ASX: XKO), giving investors access to approximately 300 companies listed on the Australian share market.

That includes some of the country’s most established businesses, such as Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).

I think there is a lot to like about owning companies like these over the long term.

CBA has a powerful position in Australian banking, while BHP provides exposure to commodities that could benefit from global economic development.

And with hundreds of other businesses included, investors can participate in the broader performance of the Australian share market.

For someone who doesn’t want to spend time researching individual companies, I think that simplicity is a major advantage.

Income and long-term growth

Another reason I like the VAS ETF is the combination of income and capital growth it can offer.

Many established Australian shares pay regular dividends, and the fund passes on income from its underlying investments through quarterly distributions.

These can also include franking credits, which may be valuable depending on an investor’s tax circumstances.

I think that gives the VAS ETF an interesting balance. Investors can receive income along the way while potentially benefiting as the underlying businesses grow their profits and become more valuable.

There is also the benefit of low costs. Vanguard charges an annual management fee of just 0.07%, equivalent to around $7 a year for every $10,000 invested.

Over a long investment horizon, I think that is another reason the ETF makes sense.

Would I invest the full $10,000?

This is where I would consider what else I already own.

Although the VAS ETF holds approximately 300 companies, the Australian share market is heavily concentrated in banking and resources.

That means the fund’s performance can be influenced considerably by the fortunes of those industries. It also provides limited exposure to technology businesses and other industries that are more prominent overseas.

For that reason, I would be more comfortable owning the VAS ETF alongside international investments. I think that would give me a better balance across countries and industries.

Foolish takeaway

I think investing $10,000 in the VAS ETF could be a smart long-term decision.

The fund offers exposure to hundreds of Australian businesses, regular income potential, and very low fees.

I would be happy buying it today, but as part of a broader portfolio that also includes international shares.

The post Is it a smart idea to invest $10,000 into the VAS ETF? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX stocks have crept higher over the past month after a shocking period between mid-August and mid-September, when indexes tumbled.

The All Ordinaries Index (ASX: XAO) has climbed around 1% higher over the past month, and the S&P/ASX 200 Index (ASX: XJO) is up around 1.5% over the same period. 

The latest turnaround is great news for stressed investors.

However, not every ASX stock has followed the same trend. Some have continued tumbling.

But sometimes a share price pullback creates an opportunity for investors to buy shares in a good-quality company at a low price.

Here are two ASX stocks that have caught my eye recently. 

PLS Group Ltd (ASX: PLS)

PLS shares have fallen just shy of 30% at the time of writing to $2.90 per share. The shares are also now down 32% year to date.

The lithium miner’s shares started rebounding in August off the back of growing investor optimism that the lithium price recovery is improving, and then they rocketed higher again when the miner posted a strong FY26 result in mid-August.

PLS posted a 152% increase in revenue, a 59% increase in underlying EBITDA, and a swing into profit in NPAT (from a loss in the prior corresponding period).

But soon after the shares spiked in late August, they came crashing downwards.

There isn’t any price-sensitive news out of the company to explain the latest sell-off. It’s likely a combination of investors taking gains off the table and a softer lithium price.

As a pure-play lithium producer, the company is heavily tied to a fluctuating lithium price. 

And Trading Economics data shows that lithium prices have fallen sharply, from around CNY 160,000 per tonne in early September, to around CNY 102,000 this week. That’s around a 24% decrease over the past month alone, and comes amid growing concerns of softer demand combined with a market oversupply.

But brokers are still bullish that the ASX stock can rebound over the next 12 months. Market Index data shows that the majority have a buy rating on the shares, and the $5.14 average target price implies a 77% upside at the time of writing.

Paladin Energy Ltd (ASX: PDN)

Paladin Energy shares have fallen just over 28% over the past month, to a trading price of $7.29 at the time of writing. The shares are also now down 28% year to date, with the majority of that decline occurring since late August.

The ASX uranium stock has faced strong headwinds this year due to geopolitical uncertainty and a softer sentiment for uranium companies. 

Renewed conflict in the Middle East, higher inflation data, and concerns about further interest rate rises have also seen some investors reduce their exposure to higher-risk shares like Paladin Energy.

Last week, the miner also announced that its first-quarter FY27 output had dipped to 1 million pounds, further slashing investor confidence.

However, the uranium company maintained full-year FY27 guidance for its Langer Heinrich Mine. 

Paladin Energy is targeting annual uranium production of 5.1 to 5.6 million pounds for FY27, with a production ramp-up expected in the second half of the year when it mines higher-grade ores.

Investors might be spooked, but the experts are still confident in the ASX stock.

Market Index data shows the majority of brokers have a strong buy rating on Paladin Energy shares. The $13.07 average target price implies the ASX stock could rebound 79% over the next 12 months, at the time of writing.

The post 2 ASX stocks down 28% to 30% in a month I'd buy right now appeared first on The Motley Fool Australia.

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

Codan Ltd (ASX: CDA) has upgraded its profit and revenue outlook yet again, with strong demand for drone technology driving the increases.

Upgrade just a month after last update

The company last upgraded its profit outlook in late September, saying it would generate net profit of $160 million on revenue of $400 million to $410 million in the first half of this financial year.

Chief Executive Officer Alf Ianniello told the company’s annual general meeting on Tuesday that they now expected to do slightly better than this, with revenue expected to be $410 million to $420 million, and net profit expected to be not less than $162 million for the first half.

This profit level compares to $71.2 million in the first half the previous year, and a full year result for FY26 of $175.2 million.

Mr Ianniello said Codan was experiencing, “unprecedented levels and pace of demand for unmanned systems in conflict areas”, while outside of conflict areas the company’s communications division is expected to grow by about 20%.

The company’s Minelab metal detector business is tracking to book revenue for the first half which is slightly above that booked in the second half of FY26.

Mr Ianniello said of the outlook for the second half:

Regarding the full-year FY27 outlook for the Communications segment, while current indications are that the elevated sales order momentum may continue into the second half, order visibility in conflict regions is low and it is too early to determine whether the elevated demand and margin experienced in first-half FY27 will continue in second-half FY27. Balancing these factors, Codan is currently targeting full-year FY27 revenue growth for the Communications segment to be at the upper end of the previously announced 30% to 40% range compared to full-year FY26.

Shares performing strongly

Codan shares are currently up 86.8% over a one-year period and are changing hands for $62.69.

They recently hit a record high of $70.14.

Mr Ianniello said Codan was continuing to invest in the business, with $78 million spent on engineering over FY26, representing about 9% of group revenues.

He said:

This investment ensures the Group remains at the forefront of innovation and product development, supports our competitive positioning and drives our organic growth strategy. Our investment continues to be focused on future technologies including multi-waveform radios, AI-enabled dismounted soldier ecosystems, next-generation cloud-based command and control capabilities, and new detection products across recreational, gold and military markets. In FY26, ongoing innovation across our BluSDR range led to DTC securing its first orders for the sale of radios into multiple programs of record (PORs) for US military initiatives to drive sovereignty.

Codan is valued at $11.43 billion.

The post Codan has issued yet another profit upgrade appeared first on The Motley Fool Australia.

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