Category: Stock Market

With just a few hours of trade left in this King’s Birthday shortened trading week, the S&P/ASX 200 Index (ASX: XJO) is up 2.1% since last Friday’s close, with plenty of help from these three surging ASX 200 stocks.

Here’s what’s been stoking investor interest this week.

Super Retail Group Ltd (ASX: SUL)

Super Retail shares closed last Friday trading for $11.32. At the time of writing, shares are changing hands for $12.42. That sees this ASX 200 stock up 9.7% for the week.

The ASX retail giant, whose brands include Supercheap Auto, Macpac, Rebel, and BCF, has finished in the green every day this week.

On Thursday, the company made financial headlines following the release of its new five-year growth strategy.

The company is aiming to increase its store numbers from 790 to more than 900 by 2031.

“Our new group strategy puts the customer at the centre of everything we do as we build our business for its next phase of growth,” Super Retail CEO Paul Bradshaw said.

“This will require deliberate short-term investments in our systems and unlock a sustainable cost advantage over time,” he added.

Super Retail expects the transformation project to cost around $30 million a year for the next three years.

Lendlease Group (ASX: LLC)

The second ASX 200 stock racing higher this week on big news is property developer and investment manager Lendlease.

Lendlease shares closed last Friday trading for $2.46 and are currently swapping hands for $2.84 each. This sees the Lendlease share price up 15.5% for the week.

Lendlease shares have finished in the green every day this week and closed up 4.6% on Thursday following a major leadership announcement.

The company revealed that Tony Lombardo will step down from the top role before the end of the month. Nick O’Neil will take over as CEO and managing director starting on 10 September.

Currently the head of Australian Real Assets at Australian Super, O’Neil has more than 25 years of experience across corporate and investment strategy, M&A, governance, capital markets, and real asset management.

Lendlease also reaffirmed its full-year FY 2026 earnings guidance for its IDC business at 28 cents to 34 cents per share.

Which brings us to…

ASX 200 stock Steadfast Group Ltd (ASX: SDF) leads the pack

Leading the pack higher this week is insurance brokerage company Steadfast Group.

Steadfast shares closed last week at $3.96 and are currently trading for $5.23 each. That puts this ASX 200 stock up an impressive 32.1% over four trading days.

Steadfast shares closed up 36.2% on Wednesday, after the company announced that it had received a conditional, non-binding, and indicative takeover offer from Amwins and Dragoneer.

The consortium is seeking to acquire 100% of Steadfast’s shares for $6 a share. That represents a 51.9% premium to Steadfast’s closing price on Tuesday.

The post 3 ASX 200 stocks leaping higher this week on big announcements appeared first on The Motley Fool Australia.

More reading

• ASX 200 slips as oil shock puts investors on edge
• Why Larvotto, Newmont, Qantas, and Steadfast shares are dropping today
• Why Lendlease, Meteoric Resources, Super Retail, and Woodside shares are rising today
• Guess which ASX 200 stock is avoiding the selloff and charging higher on big news
• Down 53% in a year, guess which $1.8 billion ASX 200 stock is jumping today on big leadership news

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

Starting your investment journey and have $500 ready to invest?

The good news is that this can be more than enough to start building an investment portfolio with ASX exchange traded funds (ETFs).

Listed below are five ASX ETFs that beginners could choose from, depending on the type of exposure they want.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The first ASX ETF to look at is the Betashares Asia Technology Tigers ETF.

This fund gives investors exposure to leading technology companies across Asia, but excluding Japan. That can include businesses involved in semiconductors, ecommerce, digital payments, online platforms, and hardware.

It is a higher-risk option than a broad market fund because it focuses on one region and one sector. But for beginners who want exposure to Asian technology growth, this ASX ETF could be a great place to start.

Betashares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF that beginners could consider is the Betashares Global Cybersecurity ETF.

Cybersecurity has become an essential part of modern life. Businesses, governments, and individuals all need protection as more activity moves online.

This fund gives investors exposure to global companies working in areas such as threat detection, network security, identity protection, and cloud security.

It is a thematic ETF, so it can be more volatile than a broad index fund. But the long-term demand for cybersecurity services appears unlikely to disappear.

Betashares Nasdaq 100 ETF (ASX: NDQ)

A third ASX ETF to look at is the hugely popular Betashares Nasdaq 100 ETF.

This fund provides exposure to 100 of the largest non-financial companies listed on the Nasdaq exchange. Many of them are global leaders in technology, online retail, cloud computing, artificial intelligence, and digital services.

For beginners, this can be a simple way to invest in some of the world’s most influential growth companies through one ASX trade. This includes NVIDIA (NASDAQ: NVDA), Tesla (NASDAQ: TSLA), and Apple (NASDAQ: AAPL).

iShares Global Consumer Staples ETF (ASX: IXI)

Another option for beginners to look at is the iShares Global Consumer Staples ETF.

This fund invests in global companies that sell everyday products such as food, beverages, household items, and personal care goods.

These businesses may not grow as quickly as technology companies, but demand for their products can be more stable. That can make this ASX ETF useful for investors wanting global exposure with a more defensive tilt.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ASX ETF for beginners to consider is the Vanguard MSCI Index International Shares ETF.

It gives investors broad exposure to developed markets outside Australia. It holds companies across the United States, Europe, Japan, and other major markets.

For beginners, this can be one of the simplest ways to diversify globally. It will still rise and fall with share markets, but it spreads money across many countries, sectors, and companies in a single investment.

The post 5 ASX ETFs for beginners with $500 appeared first on The Motley Fool Australia.

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• SpaceX starts trading today. Here’s what ASX investors need to know
• 3 ASX ETFs for investors who want global winners
• Which ASX ETF should I buy?
• How to turn $20,000 into $200,000 with ASX shares
• Want to invest in the future? These technology ETFs are killing it

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, Nvidia, and Tesla. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Oil prices are heading lower on Friday as traders react to signs of easing tensions between the United States and Iran.

At the latest check, West Texas Intermediate crude oil is down 1.1% to US$86.80 a barrel. Brent crude is also down 1.14% to US$89.35 a barrel.

Both benchmarks are now trading near their lowest levels in almost 2 months after spending much of the past 3 months above their pre-war levels.

So, what is putting pressure on oil prices today?

Progress with Iran

The latest fall came after US President Donald Trump cancelled planned military strikes on Iran and said a peace agreement could be reached as early as this weekend.

The announcement reduced concerns that the conflict could immediately escalate and cause further damage to Iran’s oil facilities.

However, there is still no confirmed agreement.

Iran’s semi-official Fars news agency said Tehran was likely to accept a deal, but no final text had been approved. The proposed agreement would reportedly include reopening shipping through the Strait of Hormuz and restrictions on Iran’s nuclear program.

The Strait remains a major risk for the oil market. Iran has threatened vessels attempting to pass through the waterway, although commercial ships have continued to make the journey.

Brent crude has now fallen around 15% over the past month, while WTI is down about 14%.

China is buying much less oil

China’s lower oil imports are also helping keep prices below US$100 a barrel.

The Asian giant imported about 7.8 million barrels of crude oil per day in May. That was 29% lower than a year earlier and the weakest monthly result in more than 8 years.

Before the Iran conflict, China was importing close to 11 million barrels per day. That means around 3 million barrels of daily demand has dropped out of the market.

Chinese refiners have been drawing down existing stockpiles instead of buying more oil at higher prices.

Fuel demand has also weakened. Petrol sales at Sinopec fell 8% in April, while diesel sales dropped 6%.

The uptake of electric vehicles and weaker refinery activity have both reduced China’s need for imported crude.

US exports have helped fill the gap

Higher US oil exports have added more supply to the market.

Crude exports climbed above 5 million barrels per day during April and May, compared with an average of about 4 million barrels per day in recent years.

Those additional barrels have helped make up for some of the supply disruption caused by restricted shipping through the Strait of Hormuz.

What happens next?

Oil prices will continue to move with news from the United States and Iran.

A confirmed deal that allows ships to move freely through the Strait of Hormuz would ease concerns about oil supply.

However, global oil stockpiles are still falling. The International Energy Agency (IEA) expects demand to remain higher than supply until the final quarter of 2026.

Until there’s more certainty, oil prices could keep seesawing in the short term.

The post Oil prices are falling again. Here’s what is driving the drop appeared first on The Motley Fool Australia.

More reading

• 5 ASX ETFs for beginners with $500
• Why Brazilian Rare Earths, Evolution Mining, Magellan, and Qantas shares are racing higher today
• SpaceX IPO: Should you buy an ASX space ETF to cash in?
• Why EOS, Karoon Energy, REA Group, and Woodside shares are falling today
• Down 60%, are Cochlear shares now a bargain buy?

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 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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a strong gain. At the time of writing, the benchmark index is up 1.9% to 8,799.1 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are storming higher:

Brazilian Rare Earths Ltd (ASX: BRE)

The Brazilian Rare Earths share price is up 4% to $5.33. This may have been driven by a broker note out of Ord Minnett. According to the note, the broker has upgraded the rare earths stock to a speculative buy rating (from hold) with a $6.95 price target. The broker made the move in response to encouraging drilling results from the Velhinhas prospect.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is up 6% to $11.60. Investors have been buying Evolution Mining and other ASX gold stocks today after the price of gold rebounded. The catalyst for this was US President Donald Trump stating that a US-Iran peace deal was close. This led to oil prices pulling back, easing inflation and rate hike concerns. The S&P/ASX All Ordinaries Gold index is trading 5% higher on Friday afternoon.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is up 5% to $9.51. This has been driven by news that the ACCC has given the thumbs up to its proposed merger with Barrenjoey. If the merger goes ahead, Magellan advised that it plans to change its name to Barrenjoey. Magellan’s chair, Andrew Formica, said: “As we bring these two businesses together it is important that our brand reflects both the expanded capabilities of the combined Group and the opportunities ahead. The decision to adopt the Barrenjoey name recognises the transformational nature of the Merger and follows feedback from our clients, our people and our shareholders since announcement of the Merger. A unified brand will provide greater clarity while reflecting the innovative culture, alignment of interests and commitment to clients that will define the combined organisation.”

Qantas Airways Ltd (ASX: QAN)

The Qantas share price is up over 4% to $9.41. Investors have been buying the airline’s shares after oil prices pulled back overnight. As fuel is a significant cost for an airline operator, any weakness in the price of oil is good news for its margins. In addition, the potential US-Iran peace deal could give travel markets a boost.

The post Why Brazilian Rare Earths, Evolution Mining, Magellan, and Qantas shares are racing higher today appeared first on The Motley Fool Australia.

More reading

• Magellan shares race 6% higher on big merger news
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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.

If you haven’t heard, the launch, sorry IPO, of SpaceX (NASDAQ: SPCX) on the American stock market is imminent. Soon, we will know how this company’s first day of trading on the public markets turned out.

The initial public offering (IPO) of SpaceX has been the talk of the investing town over the past few months. Even in Australia, investors have seemingly been keen, as we’ve documented, to get amongst the hype.

Although SpaceX is scheduled to list on the American NASDAQ exchange, Australians have been given unprecedented access to the IPO, with CommSec offering investors the chance to directly participate.

But of course, many ASX investors will not be comfortable owning SpaceX shares directly. Holding an asset outside our local stock market, and in US dollars, can be daunting. Perhaps to get ahead of this, the past few months have seen more than one new ASX exchange-traded fund (ETF) that specialises in space stocks sprout.

Space ETFs flood the ASX amid SpaceX IPO

A few weeks ago, we checked out the launch (forgive the pun) of the BetaShares Space Industry ETF (ASX: RCKT). And, just a few days ago, ETF provider Global X (no relation to SpaceX) debuted its Global X Space Tech ETF (ASX: MOON).

Both of these funds offer investors indirect access to some of the leading space companies of the world. Of course, they don’t feature SpaceX yet, as the company is just now making its stock market entrance.

But it is almost certain that SpaceX will find itself in both of these ETFs’ portfolios in the very immediate future. In fact, it does not strain credulity to posit that the IPO of SpaceX is in fact the very reason for the birth of these funds in 2026.

So, if you want to invest in SpaceX, but aren’t comfortable with buying a US stock, is one of these ETFs a good alternative?

Well, in my view, yes. If you wish to be exposed to SpaceX, as well as other leading companies in the space industry, either RCKT or MOON would fill the role nicely.

Foolish Takeaway

However, a word of caution. As we’ve previously discussed, SpaceX can arguably be described as a speculative investment. The market capitalisation it is aiming for (US$1.77 trillion) is a long way from its revenues last year of US$18.7 billion, and even further from the operating loss of UD$4.2 billion that it recorded.

Space is clearly the hype sector of the month, and many investors are pouring in their dollars in the literal hope things will go to the moon. Hype bubbles tend to pop eventually, though, and investors eventually turn to profits as an indicator of value, rather than lofty plans. If that happens, investors in a space ETF are highly exposed. As such, I would argue that investors should think twice before betting the farm on SpaceX or any of these space-themed ETFs.

The post SpaceX IPO: Should you buy an ASX space ETF to cash in? appeared first on The Motley Fool Australia.

More reading

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• Are space ASX ETFs the next big growth opportunity or overhyped?
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• What are the best performing thematic ASX ETFs right now?

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.

The S&P/ASX 200 Index (ASX: XJO) is having a day to remember on Friday. In afternoon trade, the benchmark index is up 1.9% to 8,798.8 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is down 2% to $9.30. This morning, this defence and space company announced the successful completion of its share purchase plan. Management advised that the plan was overwhelmingly supported, with EOS receiving valid applications of $95 million from 4,909 eligible shareholders. This was significantly higher than the original $25 million target. In light of the strong demand and in recognition of the ongoing support from retail shareholders, the board exercised its discretion to accept $40 million in applications. Combined with its $150 million institutional placement and $40 million strategic placement, EOS has raised a total of $230 million from investors.

Karoon Energy Ltd (ASX: KAR)

The Karoon Energy share price is down 2.5% to $2.00. Investors have been selling the energy producer’s shares after oil prices sank overnight. Traders were selling oil after US President Donald Trump announced that he expects to sign a peace deal with Iran very shortly. This is expected to result in the reopening of the Strait of Hormuz, bringing more oil supplies to market. The S&P/ASX 200 Energy index is down 1.6% at the time of writing.

REA Group Ltd (ASX: REA)

The REA Group share price is down almost 4% to $141.47. Investors have been selling this property listings company’s shares this week following the release of two bearish broker notes. After Bell Potter downgraded the property listings company’s shares to a sell rating (from buy), UBS has followed suit and cut its recommendation to neutral from buy with a reduced price target of $165 (from $213). UBS has concerns that recent property tax changes could weigh on listing volumes in the near term. Judging by its share price weakness, it seems that some investors agree with this view.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside Energy share price is down 2% to $30.81. This follows the aforementioned pullback in oil prices overnight. This has overshadowed the release of an announcement this morning. Woodside revealed that it has exercised its right to acquire a further 10.67% interest in the Browse Joint Venture for up to US$400 million. This strengthens its position in Australia’s largest undeveloped conventional gas resource.

The post Why EOS, Karoon Energy, REA Group, and Woodside shares are falling today appeared first on The Motley Fool Australia.

More reading

• EOS shares are sliding again. Here’s what investors are worried about
• Woodside shares fall after a surprise $600 million move
• Woodside Energy lifts Browse JV stake under pre-emption deal
• Oil prices are back in focus. Here’s what that means for ASX energy shares
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro has positions in REA Group and Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. 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.

Cochlear Ltd (ASX: COH) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) hearing solutions company closed yesterday trading for $102.89. As we head into the Friday lunch hour, shares are swapping hands for $104.29 each, up 1.4%.

For some context, the ASX 200 is up 1.7% at this same time following claims by United States President Donald Trump that a peace deal with Iran may be just days away.

Despite today’s uptick, however, the Cochlear share price remains down a painful 60% in 2026.

Those losses will have only been modestly eased by the $2.15 a share in partly-franked dividends Cochlear paid to eligible stockholders on 13 April. Cochlear stock trades on a 4.1% partly-franked trailing dividend yield.

Which brings us back to our headline question.

With the company’s shares having lost more than half of their value over the last year, is the ASX 200 stock now trading for a bargain?

Should I buy Cochlear shares today?

MPC Markets’ Mark Gardner recently ran his slide rule over the ASX 200 stock (courtesy of The Bull).

“Cochlear remains a global leader in hearing implants, but the investment case has become more balanced,” he said.

“The shares have been under pressure after analysts re-assessed growth expectations and lowered revenue, margin and valuation assumptions,” Gardner added.

Looking to the company’s longer-term prospects, he said, “The long-term demand profile remains attractive, supported by ageing populations and continued adoption of implantable hearing technology.”

Explaining his hold recommendation on Cochlear shares, Gardner concluded:

However, the market will need evidence that procedure volumes and margins can recover before a stronger recommendation is warranted. At these levels, investors can continue to hold but should monitor earnings momentum and further analyst revisions.

What’s been happening with the ASX 200 stock?

Most of the pain for the shareholders was delivered on 22 April following the release of a decidedly unwelcome trading update.

Cochlear shares closed down 40.7% on the day after the company reported falling demand for its implants in developed markets, as well as flagging cancellations and delays in deliveries to the Middle East due to the ongoing conflict.

This saw management downgrade Cochlear’s full-year FY 2026 underlying net profit guidance to between $290 million and $330 million. That was down from the company’s prior FY 2026 underlying net profit guidance of $435 million to $460 million.

Cochlear also reduced its second-half FY 2026 sales growth forecast to 2% to 6% in constant currency.

The post Down 60%, are Cochlear shares now a bargain buy? appeared first on The Motley Fool Australia.

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• Do experts rate BHP, Cochlear, and ResMed shares as buys, holds, or sells?
• Buy, hold, sell: 4DMedical, Cochlear, Westpac shares
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• Short sellers are targeting these 3 ASX shares this week. Are they right?

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

Electro Optic Systems Holdings Ltd (ASX: EOS) shares are struggling to find direction on Friday.

This comes after the defence technology company released the results of its Share Purchase Plan (SPP).

The EOS share price has moved between gains and losses early in morning trade. At the time of writing, it is down 2.85% to $9.20.

That extends a difficult week for the ASX defence share, which has fallen more than 14% over the past 5 trading days.

However, investors who bought a year ago are still sitting on an enormous win. EOS shares have climbed close to 300% since this time last year.

Let’s take a closer look at today’s announcement.

Shareholders wanted $95 million worth of stock

EOS confirmed that its SPP received applications worth approximately $95 million from 4,909 eligible shareholders.

That was well above the company’s original target of $25 million.

In response to the strong demand, the board increased the size of the offer to $40 million. EOS will now issue approximately 5 million new shares at $8 each.

The offer price was the same as the company’s recent institutional and strategic placements.

However, shareholders will not receive everything they applied for. EOS said applications would be scaled back on a pro-rata basis, taking into account each applicant’s shareholding at the record date.

Allocations will also be rounded so that eligible shareholders receive at least $1,000 worth of shares.

The new shares are expected to be issued next Tuesday, with trading due to begin the following day.

Why are EOS shares falling?

The SPP attracted almost four times its original target, showing there was no shortage of demand at $8 per share.

But the price is still well below where EOS shares are trading today. Even after this week’s fall, the stock remains 15% above the SPP issue price.

That may be encouraging some investors to take money off the table before the new shares begin trading next week.

There’s also the prospect of SPP participants locking in a quick gain once their shares are issued.

EOS has raised quite a large amount of capital in a short period. The SPP comes on top of a $150 million institutional placement and a $40 million strategic placement.

Has the EOS share price run too far?

EOS has enjoyed a huge rally as investors have backed growing defence spending and demand for counter-drone technology.

The company recently completed its acquisition of MARSS, adding AI-enabled command and control systems to its defence operations.

But after a gain of almost 300% in 12 months, expectations are much higher than they were a year ago.

The strong SPP demand is encouraging, but the extra shares and discounted issue price could keep the stock under pressure next week.

The post EOS shares are sliding again. Here’s what investors are worried about appeared first on The Motley Fool Australia.

More reading

• Why EOS, Karoon Energy, REA Group, and Woodside shares are falling today
• SpaceX starts trading today. Here’s what ASX investors need to know
• ASX defence shares like Droneshield have soared since 2022. Is there any growth left?
• Why might Pro Medicus shares soon be under pressure?
• Up 331% in a year. Can EOS shares keep storming higher?

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 Electro Optic Systems. 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.

Despite recent positive pronouncements from US President Donald Trump, the Straight of Hormuz remains closed to shipping traffic and could stay that way for an indefinite amount of time.

The team at UBS has recently issued a research note on the impact of the closure on oil prices and has picked an Australian oil major as its preferred stock in the sector.

I’ll get to that shortly.

Firstly, let’s look at what they’re saying about oil prices.

Price trend is higher

UBS said:

We raise near term oil prices reflecting the extended closure of the Strait of Hormuz and assume that transit remains severely reduced until the end of July at which point we expect a gradual resumption of flows with 90% of lost supply back within 6 months.

The broker has lifted its third-quarter Brent Crude oil price forecast by US$20 per barrel to US$105, its fourth-quarter forecast by US$10 to US$90, and its 2027 forecast by US$5 to US$85.

They added:

As inventories edge closer to critical levels over the coming 2 months, we anticipate oil prices may briefly exceed $120/bbl. Despite lifting oil, we trim LNG prices over 2H26 (2027+ unchanged) recognising global gas markets have been supported by weaker demand, fuel switching & additional US supply all helping mitigate the loss of ~17% of Qatari supply. Despite this, we see LNG price risk skewed to the upside as demand to refill low gas storage levels in Europe suggests tightness may persist over the next 6-9 months.

UBS said the timing of a resolution to the Straight of Hormuz situation remains the key uncertainty for oil markets and added, “we expect Brent Crude to trade within the $80 to $150/bbl range depending on scenarios”.

Which ASX energy company is best positioned?

Among Australian energy companies, UBS has picked Santos Ltd (ASX: STO) as its preferred pick in the sector.

They said:

STO is trading at an implied oil price of $67/bbl offering investors inexpensive leverage to the upside risk in near term oil prices. While our upside oil price scenario sees Brent at $135/bbl over 2H26 & $90/bbl in 2027, even our downside price scenario (Brent at $90/bbl in 3Q26, $80/bbl in 4Q26 and $75/bbl in 2027) implies STO is undervalued at the current price.

UBS has a price target of $8.60 on Santos shares compared to $7.96 currently.

The broker is neutral on Woodside Energy Group Ltd (ASX: WDS) with a price target of $30.40, and sell-rated on Beach Energy Ltd (ASX: BPT).

The post Which ASX energy company is best placed to benefit from high oil prices? appeared first on The Motley Fool Australia.

More reading

• Oil prices are back in focus. Here’s what that means for ASX energy shares
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday

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.

If you are looking for good value ASX stocks, then read on.

That’s because Bell Potter has just named one stock as a “compelling value play.”

Which ASX stock?

The stock that the broker is recommending to clients is Select Harvests Ltd (ASX: SHV).

It is an integrated grower, processor, and marketer of almonds, owning and operating farming and processing assets in Australia.

Bell Potter highlights that recent developments in the important Californian almond growing region could give the ASX stock a boost. It said:

The implementation of the Sustainable Groundwater Management Act (SGMA) in California has the potential to result in a multi-year reduction in Californian almond supply, kickstarting an upward price cycle that would be materially beneficial for SHV.

The affected acreage: California produces ~77% of global almonds and supplies ~83% of global exports. Counties deemed in chronically overdrafted basins account for ~80% Californian almonds production. The implementation of sustainability plans in 2020, looks to be already reducing yields and as we approach 2040, there remains the scope for an acceleration in orchard removals to reach sustainability targets.

In light of this, the broker sees Australia as a logical supply hub. It adds:

First derivative winners are established almond producers (and SHV is the best ASX listed exposure). But there is also likely to be a reallocation of capital towards Australian assets and this could create a growth narrative for SHV that is missing. This would likely be through development of new orchards and/or expanded third party processing and marketing opportunities. There would also likely be favourable gains in orchard values.

Should you invest?

According to the note, the broker has retained its buy rating and $5.30 price target on the ASX stock.

Based on its current share price of $3.89, this implies potential upside of 36% for investors over the next 12 months.

In addition, Bell Potter is expecting a 2.5% dividend yield over the period, boosting the total potential return beyond 38%.

Commenting on its investment thesis, the broker said:

While yields and prices are volatile year-to-year, we see the key implication being a long-duration upswing in the commodity value first and asset values second. Trading at a 28% discount to market NAV and 5.4x FY26e EBITDA we see SHV as a compelling value play on what could be one of the best global plays on a SGMA.

The post Why this ASX stock is a ‘compelling value play’ appeared first on The Motley Fool Australia.

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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.