Category: Stock Market

Building a meaningful second income from the share market does not require a huge lump sum upfront.

In fact, consistently investing a modest amount like $300 per month into high-quality Australian shares can grow into something significant over time.

The key is patience, discipline, and allowing compounding to work its magic.

Here is how the numbers can stack up.

Building long-term wealth with ASX shares

If you invest $300 each month and achieve an average return of 10% per annum (not guaranteed but possible), your portfolio could grow materially over time.

After 10 years, you would have invested $36,000 and your portfolio could be worth approximately $60,000.

After 20 years, your total contributions of $72,000 could grow to around $220,000.

But the real magic happens over longer periods. After 30 years of consistent investing, that same $300 per month could grow into a portfolio worth roughly $625,000.

Push that out to around 35 years, and your portfolio could approach $1 million.

Turning investments into passive income

Once you have built a large enough portfolio, it can begin to generate meaningful passive income.

Using a 5% dividend yield as a simple guide, a $1 million portfolio could produce a second income of around $50,000 per year.

That is the long-term goal. And while it may take time, the pathway to getting there is surprisingly straightforward.

Let’s find out how to do it.

Backing quality Australian shares

Achieving a 10% annual return from Australian shares is not guaranteed, but it is a reasonable long-term target when investing in high-quality businesses.

These are companies with strong market positions, reliable earnings, and the ability to grow over time.

Examples include ResMed Inc (ASX: RMD), which benefits from growing global demand for sleep health solutions, and Goodman Group (ASX: GMG), which is leveraged to long-term demand for logistics and data infrastructure.

More defensive names like Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES) can provide stability, while Telstra Group Ltd (ASX: TLS) offers income and exposure to essential infrastructure.

A portfolio built around these types of businesses has the potential to deliver steady returns over time.

Staying consistent is the key

The most important part of this strategy is consistency.

Markets will go through periods of volatility, and returns will not be smooth year to year. But by continuing to invest each month, you take advantage of market dips and avoid trying to time your entries.

Over time, this approach can help smooth out your returns and keep your portfolio growing.

The long-term payoff

Turning $300 a month into a $50,000 annual income is not something that happens overnight.

But with a long-term mindset, a focus on quality, and a commitment to regular investing, it becomes an achievable goal.

The earlier you start, the easier it becomes.

The post How to invest $300 a month in Australian shares to target a $50,000 annual second income appeared first on The Motley Fool Australia.

More reading

• Why is everyone selling Wesfarmers shares?
• 3 ASX 200 shares that could quietly compound for years
• 5 ASX 200 shares I’d buy as the share market rebounds
• 2 ASX dividend stocks that could pay you a passive income for years
• Buy, hold, or sell? Treasury Wine, Domino’s Pizza, and Telstra shares

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

ASX income stocks are a fantastic option for any savvy Australian investor who wants an easy passive income. 

The problem is that some are much more reliable than others. This is especially true when the sharemarket goes through periods of instability, such as the volatility we’ve all endured throughout the past couple of months. 

As far as I’m concerned, there is one long-standing dividend-paying income stock on the ASX which stands apart from the rest: APA Group (ASX: APA).

What does APA do, and what does it pay?

APA is Australia’s largest energy infrastructure company, owning and operating an extensive portfolio of gas, electricity, solar, and wind assets.

The company is also a major owner and operator of Australia’s gas distribution network, including pipelines, gas-fired power stations, and storage facilities. It currently transports more than half the natural gas used in Australia. 

Since listing on the ASX in 2000, APA Group has substantially grown its energy assets. In more recent times, it has added solar farms to its portfolio. 

Because of this, APA is also one of the most stable ASX income shares listed on the ASX. It’s also a quiet achiever.

The company is well-known for paying strong, consistent dividends, with revenue derived from long-term contracted infrastructure assets. 

The gas and energy infrastructure pipeline owner and operator also increased its semi-annual dividends consistently for over the past 20 years. 

And what’s more, its yield is usually much higher than the wider market. 

It’s hard to find a more appealing option for investors seeking an ongoing passive income.

APA paid an interim dividend of 27.5 cents in the first half of FY26 and is guiding a full-year dividend of 58 cents per security. That translates to a forward distribution yield of 5.96%, partially franked, at the time of writing.

What’s the income stock’s share price outlook?

At the time of writing on Wednesday afternoon, APA shares are down 2.75% to $9.72 a piece. That means $1,000 invested in APA shares right now will buy you 102 shares (and a little change left over). 

Despite today’s dip, the shares are now 7.6% higher year to date and 22.6% higher than 12 months ago.

What’s particularly attractive about the stock is that it’s a stable, infrastructure-style asset that benefits from long-term contracts and isn’t sensitive to short-term fluctuations in commodity and materials prices.

After such a robust rally this year, analysts are pretty neutral on what we can expect next out of APA’s shares. TradingView data shows that most brokers (five out of 10) have a hold rating on the shares. The average target price is $8.88, which implies a 8.68% downside at the time of writing. 

The post $1,000 buys 102 shares in this 6% yielding income stock appeared first on The Motley Fool Australia.

More reading

• How I’d invest $100,000 for retirement income on the ASX right now
• 2 ASX dividend stocks that could pay you a passive income for years
• 3 top ASX dividend shares for retirement income in 2026
• How much would I need to invest in ASX shares to earn $1,000 in passive income every month?
• Why this reliable ASX dividend stock just climbed to a fresh multi-year high

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 positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building a retirement portfolio isn’t about chasing the highest yield. It’s about creating a mix of reliable dividends, diversification, and enough growth to keep up with inflation.

If I were building a $100,000 ASX retirement income portfolio today, I’d blend three quality dividend shares with two ETFs.

Here’s how I’d do it.

Reliable earnings and payouts

I’d start with $25,000 in APA Group Ltd (ASX: APA). The infrastructure giant currently offers a dividend yield of about 6.1%, backed by essential gas pipelines and electricity assets that generate long-term contracted cash flow. That kind of reliability is ideal for retirees seeking a consistent retirement income. 

Next, I’d allocate $20,000 to ANZ Group Holdings Ltd (ASX: ANZ). While the yield is a little below your original 5% screen at roughly 4.5%, the partially franked dividend and resilient banking earnings still make it highly attractive for income investors. Banks remain some of the most dependable dividend payers on the ASX. 

For a third direct shareholding, I’d put $15,000 into Transurban Group (ASX: TCL).

Like APA, it owns hard-to-replicate infrastructure assets, with toll roads across Sydney, Melbourne, and North America. Traffic-linked revenue provides inflation pass-through over time, which can help preserve purchasing power in retirement.

High-yielding blue chips and bonds

Now for the ETFs in the retirement portfolio.

I’d allocate $25,000 to the Vanguard Australian Shares High Yield ETF (ASX: VHY). This ETF gives instant exposure to a basket of Australia’s highest-yielding blue-chip shares, including banks, miners, and telcos. It reduces single-stock risk while keeping the income focus front and centre.

The final $15,000 would go into the Vanguard Australian Fixed Interest ETF (ASX: VAF). Bonds might not be exciting, but they add portfolio stability and help smooth out volatility when equity markets get rough.

This blend gives you 60% in direct quality dividend shares, 25% in diversified high-yield equities, and 15% in defensive bonds. It could deliver a blended yield of around 5.3% to 5.8%, along with solid exposure to franking credits and inflation-linked infrastructure.

On a $100,000 portfolio, that could mean $5,300 to $5,800 per year in cash income, before any dividend growth.

Foolish Takeaway

What I really like about this setup is the balance.

APA and Transurban provide infrastructure-style resilience, and ANZ adds partially franked bank income. The Vanguard ETF broadens exposure, while the fixed interest ETF reduces sequence risk, which becomes increasingly important once you’re drawing an income.

For an Australian retiree, this is the kind of portfolio that can help generate retirement income today without sacrificing long-term durability.

The post How I’d invest $100,000 for retirement income on the ASX right now appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend stocks that could pay you a passive income for years
• 3 reasons to buy ANZ shares today
• The ASX dividend stocks I’d buy for a retirement portfolio
• 3 top ASX dividend shares for retirement income in 2026
• How much would I need to invest in ASX shares to earn $1,000 in passive income every month?

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

These 2 ASX quality stocks have been hammered — and that’s exactly why they’re catching my attention.

CSL Ltd (ASX: CSL) and Xero Ltd (ASX: XRO) have both fallen more than 40% over the past 12 months and are drifting near 52-week lows.

The key question: Are these warning signs or classic buy-the-dip opportunities?

For investors willing to follow Warren Buffett’s playbook and buy quality during periods of fear, these two ASX stocks could be worth a serious look right now.

CSL: Powerful defensive edge

CSL shares may be out of favour, but the healthcare business remains world-class.

This is a global leader in plasma therapies and vaccines, supplying essential treatments for chronic and rare diseases. Demand is highly resilient as patients don’t stop needing these products during economic downturns.

That gives the ASX stock a powerful defensive edge.

Recent results have been softer, with margin pressure, restructuring costs, and policy changes weighing on performance. That’s largely what’s driven the share price lower.

But there are signs of a turnaround.

Plasma collections are improving, margins are stabilising, and its Seqirus vaccine division continues to add diversification. This looks more like a reset than a structural decline.

Risks remain, of course. Any delays in earnings recovery, ongoing cost pressures, or currency headwinds could keep sentiment weak.

Still, analysts are firmly in the corner of this $67 billion ASX stock.

Broker sentiment remains broadly positive, with most maintaining buy or outperform ratings. The average 12-month price target sits around $209.40, implying roughly 47% upside from current levels.

Xero: Recurring subscription revenue

Xero has also been caught in the tech sell-off, but its long-term growth story is still intact.

The company provides cloud-based accounting software for small and medium-sized businesses, generating recurring subscription revenue across a growing global customer base.

Its platform is sticky, scalable, and deeply embedded in client workflows. That’s a powerful combination.

So why the sell-off of the ASX stock?

It’s not just Xero. The broader tech sector has been hit by rising interest rates, valuation concerns, and fears that AI could disrupt traditional software models.

That uncertainty triggered a sharp rotation out of ASX growth stocks.

But now, bargain hunters are stepping back in.

After months of heavy selling, Xero shares are trading at a significant discount to prior highs — and analysts are taking notice.

According to TradingView data, 12 out of 13 analysts rate the stock as a buy or strong buy. Price targets suggest potential upside of up to 195%, with some tipping the shares could reach $231.10 over the next 12 months.

Meanwhile, Citi has retained its buy rating and set a $144.80 price target. That points to around 82% upside.

The risks? Competition, AI disruption, and any slowdown in growth or margins.

Foolish Takeaway

CSL and Xero have both been heavily sold, but their core businesses remain strong.

For investors following Warren Buffett, these high-quality ASX stocks look especially compelling amid market fear and volatility.

The post I’m following Warren Buffett to snap up these cheap ASX stocks appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares tipped to grow 100% or more in the next 12 months
• Why beaten down CSL shares now offer ‘long-term appeal’
• Could the CSL share price reach $200 in 2026?
• Why the recent ASX share market selloff is a wealth-building opportunity
• 2 classy ASX healthcare stocks to buy before the next market surge

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

If you are new to investing and have $1,000 ready to put to work this April, exchange traded funds (ETFs) can be a practical way to get started.

They allow you to access a wide range of companies through a single investment, which can help reduce risk while still giving you exposure to long-term growth. The key is choosing funds that complement each other and cover different parts of the market.

Here are three ASX ETFs that could be worth considering.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

The first ASX ETF to consider is the BetaShares Nasdaq 100 ETF.

This fund is heavily tilted towards companies shaping the future of technology and innovation. But rather than thinking of it as just a tech ETF, it can be useful to view it as exposure to the businesses building the digital world we interact with every day.

Its holdings include companies like Apple (NASDAQ: AAPL), Amazon.com (NASDAQ: AMZN), and NVIDIA (NASDAQ: NVDA).

NVIDIA is a great example. It designs chips that power everything from gaming to artificial intelligence, making it a key enabler of modern computing.

For beginners, the BetaShares Nasdaq 100 ETF offers exposure to companies that are not only large but deeply embedded in global trends.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

Another ASX ETF that could be a smart pick is the VanEck Morningstar Wide Moat ETF.

Instead of focusing on a particular sector, this ETF selects companies with sustainable competitive advantages, often referred to as economic moats.

Think of it as investing in businesses that are difficult to disrupt. These might be companies with strong brands, cost advantages, or unique intellectual property.

Current holdings include companies such as Nike (NYSE: NKE), Airbnb (NASDAQ: ABNB), and Fortinet (NASDAQ: FTNT).

Airbnb is a good example. Its platform connects millions of hosts and travellers globally, creating a network effect that is difficult for competitors to replicate.

This ETF is less about chasing trends and more about backing resilience.

BetaShares Global Quality Leaders ETF (ASX: QLTY)

A third ASX ETF to consider is the BetaShares Global Quality Leaders ETF.

This fund focuses on companies with strong financial characteristics such as high returns on equity, low debt levels, and consistent earnings growth.

Rather than simply being big, these businesses tend to be efficient and well-managed.

Its holdings include companies like Visa (NYSE: V), Johnson & Johnson (NYSE: JNJ), and Costco Wholesale Corporation (NASDAQ: COST).

Visa is a standout. It operates a global payments network that benefits from every transaction made using its system, without taking on the credit risk itself.

For beginners, the BetaShares Global Quality Leaders ETF provides exposure to companies that combine stability with growth, which can be a powerful mix over time. This fund was recently recommended by analysts at Betashares.

The post Where to invest $1,000 in ASX ETFs for beginners in April appeared first on The Motley Fool Australia.

More reading

• 3 simple ASX ETFs to start investing with $5,000
• How long does it take to become a millionaire with ASX shares?
• Why now could be the time to buy these popular ASX ETFs
• 5 ASX ETFs to buy and hold for 10 years
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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Nike, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Airbnb, Amazon, Apple, BetaShares Nasdaq 100 ETF, Costco Wholesale, Fortinet, Nike, Nvidia, and Visa and is short shares of Apple and BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Airbnb, Amazon, Apple, Nike, Nvidia, VanEck Morningstar Wide Moat ETF, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

After already delivering a standout 12-month run, Cogstate Ltd (ASX: CGS) shares are back in the green on Wednesday.

The gain follows a quarterly business update that highlighted continued strength in clinical trial contract activity and improving future revenue visibility.

In afternoon trade, the stock is changing hands at $2.30, up 7.48%.

That brings the company’s market capitalisation to roughly $393 million and extends its 12-month gain to just over 70%.

Let’s take a closer look at what was announced.

Sales contracts keep building in FY26

According to its third-quarter business update, Cogstate executed US$25.4 million in sales contracts during the March quarter.

That brings total sales contracts executed over the first 9 months of FY26 to US$67.1 million. That is well ahead of the US$41.3 million recorded over the same period a year earlier.

It also marked the company’s strongest March quarter contract result in recent years. The result extends the momentum seen in the first-half as demand broadened across its central nervous system (CNS) trial work.

Another closely watched metric is contracted future revenue.

Cogstate said FY26 revenue under contract had risen to US$67.1 million as at 31 March, up from US$53.1 million at 31 December.

Within that, revenue already locked in for the June quarter increased to US$35.6 million, compared with US$27 million previously.

Broader trial demand is supporting confidence

The latest update reinforces the strength of the company’s clinical trials pipeline rather than pointing to a one-off contract win.

Cogstate’s technology is used by pharmaceutical and biotech groups running CNS-focused trials, including Alzheimer’s disease, mood disorders, sleep conditions, and other neurological programs.

The business has increasingly benefited from a broader mix of trial work outside Alzheimer’s. Investors appear to favour this because it improves diversification and reduces reliance on any single drug development cycle.

With the stock still below its 52-week high of $2.97, today’s gain suggests investors are responding to improving revenue visibility.

Foolish Takeaway

I believe Cogstate remains a stock worth buying and holding for the long term, particularly as revenue certainty continues improving.

The steady lift in sales contracts and stronger revenue already locked in for the June quarter both support a more reliable earnings outlook. Broader demand beyond Alzheimer’s also points to a business generating steadier revenue over time, which could be a major win for shareholders.

After a 70% gain over the past year, the latest update supports the market view that Cogstate’s longer-term growth outlook remains very attractive.

The post This ASX healthcare stock is up 70% in a year and climbing again today 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 Cogstate. The Motley Fool Australia has positions in and has recommended Cogstate. 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 trading in the green in Wednesday afternoon trade. At the time of writing, the shares are up 3.8% to $77.12.

It’s welcome news for investors after the retail conglomerate fell out of favour this year. The leading Australian blue-chip company has been smashed by global volatility.

After initially climbing 9% through the first few weeks of the year, Wesfarmers shares have crashed nearly 18% through to early April.

While the shares have climbed higher again today, they’re still down 5.7% for the year to date and 12.7% lower than six months ago.

The sell-off of such a major blue-chip ASX stock prompts the question, why is everyone selling their Wesfarmers shares?

1. Inflation concerns

Concern about inflation rates and the rising cost of living has smashed the retail giant’s shares recently. Higher food, fuel, rent, and mortgage costs for an undetermined amount of time mean consumers are tightening their spending habits and cutting back on discretionary spending. 

While Wesfarmers has broad retail operations across several markets, its key subsidiaries include household names such as Bunnings Warehouse, Kmart Australia, Officeworks, and Priceline.

Lower sales volumes across discretionary businesses translate to a weaker outlook. And that can dampen investor confidence.

2. Its latest results missed expectations

The blue-chip company posted its H1 FY26 results in mid-February, where it revealed a 3.1% increase in revenue, a 9.3% hike in NPAT, and an 8.4% rise in EBIT. It also announced a 7.4% increase in its fully-franked interim dividend.

On paper, the result looks good, but investors weren’t impressed, and many quickly sold up their shares. By the end of the day, the stock had tumbled 5.6%, and it kept going through to late March.

3. Concerns that share price growth has peaked

Analysts are mostly bearish on Wesfarmers shares. TradingView data shows that seven out of 16 analysts have a sell or strong sell rating on the stock, and another seven have a hold rating. 

The average target price, however, is $80.36, which implies a 4% upside at the time of writing. 

4. Profit talking after a share price rally

While there are several reasons that investors could have fallen out of favour with Wesfarmers shares, it’s also possible that a lot of this year’s sales are down to investors taking their gains off the table after a strong rally. 

The company’s shares spiked to $89.25 in mid-Feb, up 9.2% over the first six weeks of the year.

5. Market-wide rotation

Looking more broadly, the Australian sharemarket has undergone a broad-based sell-off and rotation over the past couple of months after market volatility and concerns about the US-Iran war worried stressed-out investors. 

There was an overall shift from retail-heavy stocks like Wesfarmers into energy and defensive assets in order to ward off some volatility. 

The post Why is everyone selling Wesfarmers shares? appeared first on The Motley Fool Australia.

More reading

• 5 ASX 200 shares I’d buy as the share market rebounds
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• How did these ASX blue-chip shares perform in March?
• 3 quality ASX shares to buy for a beginner investor

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

Firefly Metals Ltd (ASX: FFM) shares are flying higher on Wednesday.

This comes after the copper-gold developer released another standout drilling update from its Green Bay project in Canada.

In afternoon trade, the Firefly share price is up 18.95% to $2.04, after pushing above the psychological $2 barrier during midday. That leaves it not far below its 52-week high of $2.30.

That extends an already huge 12-month run, with the stock now up 176% over the past year.

Let’s take a closer look at what was announced.

Another strong step-up in Green Bay confidence

According to today’s ASX update, Firefly’s latest underground drilling has again confirmed strong continuity within the high-grade Core Zone at the Ming deposit.

The standout intercept was 70.8 metres at 4% copper equivalent, including 19.2 metres at 7.5% copper equivalent.

A second hole returned 53.3 metres at 4.1% copper equivalent, including 18.2 metres at 5.8% copper equivalent.

The latest results continue to improve confidence in the scale and consistency of the higher-grade section of the orebody ahead of economic studies expected in mid-2026.

That remains a major focus because the current Green Bay resource already totals 50.4 million tonnes at 2% copper equivalent in measured and indicated categories.

It also includes another 29.3 million tonnes at 2.5% copper equivalent in inferred resources.

Why investors are buying the update

The strong share price move appears to reflect more than just another solid drill result.

The market is increasingly focused on the quality of the Core Zone, which could become an attractive early mining area thanks to its grade and continuity.

Today’s release also noted that economic and technical studies tied to a larger copper-gold restart remain on track for mid-2026.

At the same time, Firefly remains well funded, ending December with roughly $251 million in cash and liquid investments.

The high-grade Core Zone is also close to existing underground infrastructure, which could improve restart economics and shorten the pathway to first production.

Foolish Takeaway

Firefly’s latest Green Bay results continue to show that its high-grade core could support attractive early mine economics.

With the stock now valued at roughly $1.56 billion and still delivering strong drilling momentum, attention is now turning to the mid-2026 economic studies as the next major catalyst.

The company’s strong cash position also gives it the flexibility to continue drilling aggressively while advancing restart studies.

After a 176% gain over the past year, the latest rally shows investors are still backing further resource growth at Green Bay.

The post This ASX mining stock just jumped 19% on a huge drilling result appeared first on The Motley Fool Australia.

More reading

• This ASX healthcare stock is up 70% in a year and climbing again today
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• Why surging ASX 200 copper stocks like Sandfire and BHP shares are ‘vulnerable’

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.

Clarity Pharmaceuticals Ltd (ASX: CU6) has some big news coming this year, and the team at Canaccord Genuity is excited by the company’s potential.

The Canaccord team has a buy recommendation on the stock, and while they’ve reduced their price target on the company, it’s still extremely bullish. We’ll get to that later.

Firstly, why is there cause for interest around what the company is doing?

Prostate cancer plans progressing

Canaccord says the major focus for Clarity in the company year are its two Phase III diagnostic trials, “assessing 64Cu-SAR-bisPSMA in PSMA-avid prostate cancer”.

Canaccord goes on to say:

We are expecting readouts from both trials in 2H CY26. If positive, we would anticipate FDA submission and potential launch in 1H CY28. The company has begun bolstering its access to 64Cu in the US, having recently added Theragenics to its existing agreements with SpectronRx and Nusano. With 64Cu supply no longer a question in our minds, our attention turns towards the sales, marketing and distribution side of the equation.

Clarity said in late March that it had signed a large-scale manufacturing agreement for the supply of copper-64 (64Cu) with Theragenics, with the manufacture to take place in Atlanta, Georgia.

Clarity Executive Chair Dr Alan Taylor said at the time:

Clarity is closer than ever to commercialisation of 64Cu-SAR-bisPSMA, with outstanding data recently released from the head-to-head Co-PSMA investigator-initiated trial3 and our announcement on achieving our target number of participants in the Phase III AMPLIFY trial just months since imaging the first patient.

Large addressable market

Canaccord said they had reviewed the US market for PSMA (Prostate-Specific Membrane Antigen) compounds and forecast the 2035 market to be worth US$2.9 billion.

They added:

Should 64Cu-SAR-bisPSMA be approved, and subsequently launch in 2H28, by FY35 we see Clarity generating US$860m in sales, representing 29% share. While there is pushback regarding workflow changes and incumbency, we are encouraged by the growing body of evidence (albeit with smaller patient numbers currently), which delineates 64Cu-SAR-bisPSMA from the current (and developing) players. We see that patients, clinicians, and pharma are all incentivised to find disease at earlier time points, allowing earlier intervention.

Canaccord has a price target on Clarity shares of $8.41, down from $9, with the reduction coming from foreign exchange changes and adjustments to the timelines for the company’s portfolio.

This is well north of 100% up on the current share price for Clarity of $3.19. Clarity is valued at $1.14 billion.

The post This ASX healthcare stock could more than double according to Canaccord Genuity 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.

Not every great investment needs to be exciting.

In fact, some of the best-performing ASX 200 shares over time have been the ones that steadily grow earnings, expand margins, and reinvest for the future without attracting too much attention along the way.

For investors focused on long-term compounding, here are three ASX shares that could be worth considering.

Goodman Group (ASX: GMG)

The first ASX share that could deliver steady compounding is Goodman Group.

Goodman focuses on logistics and industrial property, which has benefited from the growth of ecommerce and supply chain optimisation.

More recently, it has been increasing its exposure to data centre developments, positioning itself to benefit from rising demand for digital infrastructure and artificial intelligence.

Its integrated model, which combines development, management, and investment, allows it to generate earnings from multiple sources.

With long-term structural demand for logistics and data infrastructure, Goodman appears well placed to continue growing its earnings in a relatively steady and predictable way.

For investors looking beyond short-term market noise, these types of businesses can often deliver strong returns simply by continuing to execute over time.

REA Group Ltd (ASX: REA)

Another ASX 200 share that could quietly compound over time is REA Group.

REA operates Australia’s leading online real estate platform, which has become the go-to destination for property listings. This dominant position gives it significant pricing power and strong network effects.

As more buyers and sellers use the platform, its value increases, allowing REA Group to continue lifting prices and expanding its revenue.

It is also leveraging its audience to grow adjacent services such as data, insights, and financial products. This creates additional revenue streams without needing to significantly expand its cost base.

With a capital-light model and strong margins, REA Group is well positioned to continue compounding earnings over time.

TechnologyOne Ltd (ASX: TNE)

A final ASX 200 share that could be a long-term compounder is TechnologyOne.

The enterprise software provider has been steadily transitioning its customers to a cloud-based platform, which is driving recurring revenue and improving margins.

What stands out is the predictability of its earnings. Once customers are embedded in its ecosystem, switching costs are high, which supports long-term retention.

TechnologyOne is also expanding internationally, particularly in the UK, where it is replicating its Australian success.

This combination of recurring revenue, operating leverage, and global expansion could support consistent growth over many years. In fact, management believes it can double in size every five years.

The post 3 ASX 200 shares that could quietly compound for years appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Goodman Group, REA Group, and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Technology One. The Motley Fool Australia has recommended Goodman Group and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.