WiseTech Global Ltd (ASX: WTC) has become one of the most difficult ASX growth shares for investors to judge.

The share price has fallen heavily, sentiment is weak, and confidence may take time to rebuild.

But I think long-term investors should be paying close attention.

The valuation has changed

WiseTech shares are trading around $32.36. That compares with a 52-week range of $28.76 to $121.31.

In other words, the share price is still sitting much closer to its low than its high.

That does not necessarily make a stock cheap. But when a company still has strong long-term growth potential, a fall of this size can change the equation.

According to CommSec, consensus estimates suggest WiseTech could generate earnings per share of 93.8 cents in FY26, $1.47 in FY27, and $2.22 in FY28.

Based on the current share price, that puts the stock on a price-to-earnings ratio of around 34.5 times FY26 earnings, 22 times FY27 earnings, and 14.6 times FY28 earnings.

These multiples still require investors to believe in growth. But if WiseTech gets close to the FY28 forecast, the valuation looks very reasonable for a global software company with a large market opportunity.

Why the business still interests me

WiseTech is not selling software into a simple market. Global logistics is messy, fragmented, and full of moving parts. Freight forwarders and logistics operators deal with customs rules, shipping lines, airlines, warehouses, tariffs, documentation, compliance, tracking, and customer expectations across many countries.

That complexity is why software can become valuable. WiseTech’s CargoWise platform helps customers manage more of that work through a single system. When software becomes embedded in daily operations, it can become difficult to replace.

I think that is the key to the investment case. WiseTech is not just trying to win casual users. It is trying to become core infrastructure for companies that move goods around the world.

If global trade continues to become more digital, automated, and data-driven, WiseTech should have a long runway.

Why the recovery may take time

The market is clearly not giving WiseTech the benefit of the doubt right now.

Part of that is because high-growth shares can be punished heavily when confidence turns. Part of it may also be because investors want more evidence that earnings growth will keep coming through, especially given AI disruption concerns and controversies surrounding its founder. It is hard to know how those headlines could affect customer perception, but they add another layer of uncertainty for investors.

Because of this, a recovery in the share price may not happen quickly. WiseTech needs to keep delivering, integrating acquisitions well, improving its platform, and showing that growth can translate into stronger profits.

But I think the market may now be too focused on the near-term disappointment and not focused enough on the long-term opportunity.

Foolish takeaway

I think now is a good time to buy WiseTech shares for patient investors.

The stock is still down around 70% from its high, sentiment is weak, and the recovery may take time. But the business operates in a huge global market where better logistics software can create real value.

If WiseTech can deliver anything close to the earnings growth currently forecast, today’s valuation looks far too low to me.

This is not a low-risk buy. But for investors willing to look beyond current market negativity, I think WiseTech shares look very attractive.

The post Down 70%, is now the time to finally buy WiseTech shares? appeared first on The Motley Fool Australia.

More reading

• Down 71%! Are WiseTech shares now a screaming bargain?
• 5 biggest losers on the ASX 200 in FY26
• WiseTech shares are now the ASX 200’s biggest loser. What next?
• Buying WiseTech Global shares? Here’s the dividend yield you’ll get today
• Buy these ASX technology shares now! The tech rally might have just begun

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 positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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) remains one of the most widely followed shares on the ASX, and for good reason. 

It sits at the centre of global demand for commodities that underpin modern infrastructure, industrial activity, and the ongoing shift toward electrification.  

For investors thinking about putting $5,000 to work, I think BHP is still worth serious consideration.

A business tied to global demand

One of the reasons I continue to like BHP is its exposure to global demand. The company produces key commodities such as iron ore, copper, and metallurgical coal, all of which play important roles in construction, manufacturing, and energy systems across the world. 

What stands out to me is that BHP is not just a cyclical miner. It is increasingly positioned around commodities that may benefit from long-term structural demand shifts, particularly copper.

Copper demand is expected to grow over time due to electrification, renewable energy infrastructure, data centres, and broader industrial expansion. That gives parts of BHP’s portfolio a different growth profile compared to traditional bulk commodities. 

Near-term noise versus long-term direction

Mining shares are never straightforward in the short term. 

Prices move with global growth expectations, China’s economic cycle, interest rates, and supply disruptions. That means sentiment can shift quickly, even if the underlying long-term story remains intact.

I think that is important context for BHP. 

There will be periods where earnings and dividends move up and down with commodity pricing. That is simply the nature of the sector. 

But over longer periods, I think the quality of BHP’s assets, scale advantages, and cost position allow it to remain one of the strongest mining companies globally.

Capital returns and discipline

Another reason investors are drawn to BHP is its approach to capital returns.

The company has a track record of returning cash to shareholders through dividends, supported by strong cash flow generation during favourable commodity cycles. 

At the same time, it has generally maintained a disciplined approach to capital allocation, focusing on large, long-life assets rather than chasing speculative expansion. 

That discipline matters in a sector where poor capital decisions can destroy long-term value.

What I would be watching

If I were investing $5,000 into BHP, I would not expect a smooth ride.

The key variables remain commodity prices, particularly iron ore and copper, as well as global economic growth, especially from China and other major industrial economies. 

I would also keep an eye on how capital is deployed across existing operations and new growth projects, as this can significantly influence long-term returns. 

Foolish Takeaway

I think it can be smart to invest $5,000 into BHP shares for long-term investors who understand the cyclical nature of resources. 

The business is exposed to global commodity demand, with copper providing an increasingly important structural growth angle alongside traditional bulk commodities. 

While short-term volatility is inevitable, I think BHP’s scale, asset quality, and capital discipline make it one of the stronger ways to gain exposure to global industrial growth through the ASX. 

For patient investors, I think it remains a share worth buying. 

The post Is it smart to invest $5,000 into BHP shares? appeared first on The Motley Fool Australia.

More reading

• The ASX 200 sector that outperformed the benchmark 7 to 1 in FY26. Can it keep delivering?
• How to get started with a portfolio delivering $500 a week in passive income
• How Australia’s commodities performed in FY26
• These ASX shares could generate $5,000 per year in passive income
• Australia’s biggest ASX shares: The heroes and villains of 2026

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.

If I had $20,000 to invest in ASX 200 shares right now, I would not be trying to guess the next short-term winner.

Instead, I would focus on businesses that sit inside long-term structural demand trends: healthcare, wealth management, and essential services that Australians continue to rely on regardless of economic conditions.

I think that approach can help smooth out some of the noise that comes from markets reacting to interest rates, sentiment shifts, and short-term headlines.

Here is how I would allocate that $20,000 today.

Sigma Healthcare Ltd (ASX: SIG)

One part of the portfolio would go to a business that operates at the centre of Australia’s healthcare supply chain.

Sigma Healthcare is deeply embedded in pharmaceutical distribution and the supply of medicines to community pharmacies across the country.

What I like about this type of business is the essential nature of demand. Medicines are not discretionary. They are required regardless of economic conditions, which can provide a level of resilience over time.

The distribution model also benefits from scale. Once a national supply network is established, it becomes difficult for smaller players to compete on efficiency, coverage, and reliability.

It is not the most exciting part of the market, but I think it is one of the most durable.

Hub24 Ltd (ASX: HUB)

Another portion of the $20,000 would go to a business that is closely tied to the growth of Australia’s financial advice and superannuation system.

Hub24 provides a technology platform used by financial advisers to manage client portfolios, reporting, administration, and investment operations.

I think this is one of those businesses that benefits from complexity rather than simplicity. As client needs become more personalised and regulatory requirements increase, advisers need better systems to manage their workload efficiently.

That creates demand for platforms that can simplify administration and improve visibility across portfolios.

Once a financial adviser integrates a platform into their workflow, it can become difficult to replace without significant disruption. That kind of embedded usage can support long-term growth.

Cochlear Ltd (ASX: COH)

The final portion of the $20,000 would go to a business operating in a very different part of the healthcare sector.

Cochlear is a global leader in hearing implant technology. It operates in a market driven more by medical need and demographics than by economic cycles. Hearing loss becomes more common with age, which creates a long-term structural demand base across developed and emerging markets.

What stands out to me is the combination of medical technology leadership and long product lifecycles. These are not low-cost or easily replaceable solutions. They require clinical trust, regulatory approval, and long-term support infrastructure.

That tends to create strong competitive positioning over time, although execution in innovation and global rollout remains critical.

Foolish takeaway

If I were investing $20,000 into ASX 200 shares this month, I would want exposure to different types of long-term demand rather than concentrating on a single theme.

Each business operates in a different part of the economy, but all three share a common feature: they are tied to needs that do not disappear when markets get uncertain.

That is the type of foundation I would want when putting $20,000 to work for the long term.

The post Where I’d invest $20,000 into ASX 200 shares this month appeared first on The Motley Fool Australia.

More reading

• Cochlear shares have jumped 23% in a month: Is there more upside ahead?
• Here are the top 10 ASX 200 shares today
• 5 biggest losers on the ASX 200 in FY26
• WiseTech shares are now the ASX 200’s biggest loser. What next?
• Cochlear shares are up 23% in a month. Buy, hold or sell?

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and Hub24. The Motley Fool Australia has recommended Cochlear and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Genesis Minerals Ltd (ASX: GMD) share price is in focus today after the company delivered quarterly gold production of 70,767 ounces, building underlying cash and equivalents to approximately A$258 million and meeting annual production guidance for the third consecutive year.

What did Genesis Minerals report?

• FY26 gold production reached 285,400 ounces, within guidance of 260,000–290,000 ounces.
• All-in sustaining cost (AISC) fell within the FY26 guidance range of A$2,500–A$2,700 per ounce.
• Underlying cash and equivalents built to ~A$258 million this quarter (from A$253 million in March), pre-investment and acquisition outflows.
• Cash and equivalents stood at A$520 million at 30 June, after A$352 million of outflows for acquisitions, growth, exploration, and tax.
• Magnetic Resources acquisition completed at a total consideration of A$639 million.
• Leonora underground mining contract transitioned successfully to Byrnecut, meeting or exceeding guidance metrics.

What else do investors need to know?

Genesis fast-tracked the Tower Hill project, completing pit dewatering and starting open pit mining ahead of schedule. The company also placed orders for a larger mining fleet and major mill equipment, aiming to achieve higher productivity and lower unit costs. Open pit work at the Bruno Lewis prospect is set to start next quarter after a 65% uplift in reserves to 280,000 ounces. Genesis is funding increased exploration, with the FY27 budget doubling to A$80–90 million thanks to recent drilling success and the addition of the highly prospective Chatterbox Trend through the Magnetic acquisition. A fully updated long‑term plan and full quarterly report (including detailed AISC) are due in September and late July, respectively.

What did Genesis Minerals management say?

Executive Chair Raleigh Finlayson said:

Genesis’ three key objectives are safety, growth and delivering on our undertakings to the market. The strong performance in the June quarter means we have met these three key goals in the past financial year, generating underlying cash of ~A$258m in the process and bringing total underlying cash build for the financial year to ~A$893m. “We have also laid the foundations for the next round of growth as part of our ASPIRE 500 strategy, with the Tower Hill development running ahead of schedule, the Magnetic acquisition completed and our exploration program delivering outstanding results across our portfolio. “Pleasingly we generated higher underlying cashflow than the previous quarter despite a lower gold price, higher diesel price, the end of third-party ore purchases, and contractor changeouts at all our underground operations. I thank the broader Genesis team, Macmahon and Byrnecut for the professional and successful transition. “We are well on track to unveil our long-term growth strategy in September, which will provide further detail on how we plan to unlock further value from our industry-leading inventory in Leonora and Laverton.

What’s next for Genesis Minerals?

Genesis plans to release an updated, fully-funded long-term plan in September, which is expected to lay out future production, exploration, and growth opportunities. The company is increasing its investment in exploration, especially at newly acquired Magnetic Resources tenements, and will begin mining at its Bruno Lewis prospect in the September quarter. The company’s “ASPIRE 500” goal, while aspirational and not a formal production target, is guiding management’s focus on growth, efficiency, and unlocking value from its portfolio.

Genesis Minerals share price snapshot

Over the past 12 months, Genesis Minerals shares have risen 26%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

View Original Announcement

The post Genesis Minerals: FY26 guidance met and growth projects advance appeared first on The Motley Fool Australia.

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• Emerald Resources locks in major mining deals at Dingo Range, Okvau
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• Vault Minerals meets guidance as growth projects advance
• Suncorp reveals FY27 reinsurance plans and FY26 guidance update
• PEXA Group responds to IPART draft service fee review

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Suncorp Group Ltd (ASX: SUN) shares are in the spotlight on Friday.

In morning trade, the insurance giant’s shares are down 5% to $18.36.

Why are Suncorp shares on the slide?

The catalyst for this move has been the release of an update from Suncorp before the market open.

This morning, Suncorp’s acting CEO, Jeremy Robson, provided an update on the successful placement of its FY 2027 reinsurance program and its FY 2026 outlook.

With respect to the former, Robson revealed that the renewal reflected continued discipline in the company’s reinsurance strategy, maintaining an appropriate balance between cost, earnings volatility, and capital efficiency.

Suncorp advised that it has now successfully placed its main catastrophe program for FY 2027, which maintains the maximum event retention of $350 million for a first and second large event. This is on top of the previously announced five-year aggregate reinsurance arrangement which commenced on 30 June.

That aggregate cover provided $800 million of protection annually, and up to $2.4 billion in total over a 5-year period.

Commenting on the program, Jeremy Robson said:

The FY27 reinsurance program demonstrates our focus on optimising returns while ensuring appropriate protection for our customers and shareholders. While the cost of reinsurance remains an important input to insurance pricing, it is pleasing to see improved market conditions reflected in the pricing of our comprehensive main catastrophe program, now complemented by the addition of aggregate protection to further enhance resilience and reduce volatility.

Suncorp has also reaffirmed its natural hazard allowance (NHA) for FY 2027 is $1,800 million, excluding claims handling expenses and profit commission.

FY 2026 update

Looking ahead to its FY 2026 results next month, Suncorp advised that it is reaffirming its underlying ITR to be towards the upper end of the 10% to 12% range.

However, its gross written premium growth is now expected to be approximately 2.7%. Suncorp notes that expectations have been impacted by an ongoing weak economy and soft commercial market in New Zealand, as well as a marginal reduction in demand in Australia.

In addition, total investment income is expected to be between $750 million and $800 million in FY 2026. This is down from $1,227 million in FY 2025.

The company explained that its lower investment income relative to FY 2025 is predominately driven by rising bond yields. These are resulting in mark-to-market losses in both insurance funds and shareholders’ funds.

Following today’s move, Suncorp shares are now down around 12% over the past 12 months.

The post Why are Suncorp shares sinking 5% today? appeared first on The Motley Fool Australia.

More reading

• Suncorp reveals FY27 reinsurance plans and FY26 guidance update
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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.

The Meridian Energy Ltd (ASX: MEZ) share price is in focus as the company secured final approval to ease access restrictions on Lake PÅ«kaki hydro storage for the next three years, a move set to bolster the security of electricity supply through winter 2028.

What did Meridian Energy report?

• Approval granted to ease access restrictions on Lake PÅ«kaki hydro storage for a three-year period
• Improved dry-year risk management expected through to winter 2028
• Hydro generation provides about 60% of New Zealand’s electricity, with Meridian’s storage covering around 15 weeks of supply
• Permanent installation of rock armouring at PÅ«kaki Dam also approved

What else do investors need to know?

The easing of Lake PÅ«kaki restrictions gives Meridian Energy additional flexibility to manage supply in challenging weather conditions, reducing the risk of price spikes and supply interruptions during dry spells. Meridian emphasised that the extra storage will only be used if there’s elevated risk to security of supply, and that usage in 2026 will likely remain well within the five-metre allowance due to current lake levels. In addition, Meridian has received the green light to reinforce PÅ«kaki Dam with permanent rock armouring. This improvement is designed to help the dam withstand wave erosion, which will be especially important when the lake operates at lower levels, further supporting long-term operational resilience.

What’s next for Meridian Energy?

Looking ahead, Meridian anticipates using the expanded storage prudently, committing to operate within the strict guidelines set by regulators. The company will only draw on the additional capacity if there is a real risk to the security of electricity supply, particularly heading into winter months. Alongside the storage increase, the permanent enhancements to PÅ«kaki Dam should further strengthen Meridian’s ability to navigate future energy market challenges and invest in developing new renewable generation capacity in the years ahead.

Meridian Energy share price snapshot

Over the past 12 months, Meridian Energy shares have declined 12%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

View Original Announcement

 

The post Meridian Energy gets green light to expand Lake PÅ«kaki storage appeared first on The Motley Fool Australia.

More reading

• Vault Minerals meets guidance as growth projects advance
• Suncorp reveals FY27 reinsurance plans and FY26 guidance update
• PEXA Group responds to IPART draft service fee review
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Vault Minerals Ltd (ASX: VAU) share price is in focus after the company reported Q4 gold production of 89,338 ounces, bringing its FY26 output to 336,540 ounces and meeting full-year guidance. Vault also highlighted a strong cash generation of $219 million in the quarter, strengthening its balance sheet.

What did Vault Minerals report?

• Q4 gold production: 89,338 ounces
• Full-year FY26 gold production: 336,540 ounces (14% increase quarter-on-quarter)
• Q4 gold sales: 87,922 ounces; FY26 sales: 334,901 ounces
• Underlying free cash flow: $219 million in Q4
• Cash and bullion at year end: $842 million, with no debt and fully unhedged
• Maiden dividend and share buyback returned $74.3 million to shareholders in FY26

What else do investors need to know?

Vault completed Stage 1 of its King of the Hills (KoTH) processing upgrade on time and on budget in March 2026. The new crushing circuit is already running above its 8 million tonnes per annum target, with Stage 2 now 71% complete and tracking ahead of schedule for a planned September 2026 completion. Underground development at the Sugar Zone operation resumed at the start of July, following the approval of a Closure Plan Amendment. These development activities will support a targeted processing plant restart in early FY28.

What’s next for Vault Minerals?

Looking ahead, Vault plans to ramp up underground works at the Sugar Zone in FY27, generating ore stockpiles and waste rock for site construction. With a strong cash position and all gold hedges extinguished, the company sees itself well placed to deliver its ongoing growth strategy across its operational portfolio. Completion of the KoTH processing upgrades in the coming months remains a key operational milestone, aimed at increasing site capacity by 50% and reinforcing Vault’s presence as a regional leader.

Vault Minerals share price snapshot

Over the past 12 months, Vault Minerals shares have risen 60%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 2% over the same period.

View Original Announcement

The post Vault Minerals meets guidance as growth projects advance appeared first on The Motley Fool Australia.

More reading

• Meridian Energy gets green light to expand Lake PÅ«kaki storage
• Suncorp reveals FY27 reinsurance plans and FY26 guidance update
• PEXA Group responds to IPART draft service fee review
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The ASX 200 sector that outperformed the benchmark 7 to 1 in FY26. Can it keep delivering?

One sector on the ASX delivered a result in FY26 that left every other sector in its wake.

Strong commodities growth contributed to the S&P/ASX 200 Materials Index (ASX: XMJ) rising 47% in FY26.

This led to the materials sector outperforming the broader S&P/ASX 200 Index (ASX: XJO) (including dividends) by a staggering 7 to 1. 

Gold miners, copper producers, and lithium names all contributed to a sector-wide run that rewarded investors who stayed patient through a difficult FY25. 

The question now is whether the conditions that drove that performance will remain in place heading into FY27.

Why the ASX materials sector outperformed so heavily

Three forces combined to drive the sector’s extraordinary FY26 performance. 

First, gold surged above US$5,400 an ounce at its peak. This delivered extraordinary returns to ASX gold miners that dominate the materials sector’s top performers list. 

Second, copper hit record highs above US$13,000 per tonne as AI data centre construction, electric vehicle adoption, and grid infrastructure investment drove a demand surge.

Third, lithium prices recovered strongly after a brutal two-year downturn, with spodumene prices rising approximately 196% over the twelve months to May 2026. This lifted ASX lithium producers from the bottom of performance tables to some of the strongest performers on the ASX. 

All three of those tailwinds are still present to varying degrees as FY27 begins. But the easy gains from the initial recovery move are mostly behind investors now. 

Let’s take a look at some ASX materials stocks that have benefited from these tailwinds.

BHP Group Ltd (ASX: BHP): Copper was a standout, but the Jansen setback is a reminder

BHP had one of the most remarkable FY26s in its long history.

For the first time in 136 years, copper earnings exceeded iron ore contributions in the first half of FY26. This came as the copper price surge translated directly into record revenue for BHP’s Chilean and South Australian copper operations.  

BHP shares hit an all-time high of $59.78 in May before pulling back amid concerns about Simandou iron ore supply and a Jansen potash cost blowout.

Yet the long-term copper thesis remains intact.

BHP plans to grow copper-equivalent production at 3% to 4% per year through 2035, adding to what is already one of the world’s most valuable copper portfolios. 

However, the Jansen impairment of approximately US$2.3 billion is a setback. Heading into FY27, investors should weigh that capital discipline concern against the undeniably strong commodity exposure BHP brings.

PLS Group Ltd (ASX: PLS): the lithium recovery still has room to run

PLS Group Ltd (ASX: PLS), formerly Pilbara Minerals, was one of the standout performers of the FY26 materials recovery.

Shares surged strongly through FY26, with the company delivering a 241% EBITDA surge in its first-half FY26 result. This came as the broader lithium price recovery flowed directly through to the bottom line.

The lithium price story for FY27 depends heavily on whether EV demand continues to grow at the pace required to absorb new supply coming online from African and South American deposits.

Most lithium analysts remain positive on the medium-term price trajectory. But the near-term uncertainty is higher than it was in FY26 when the recovery was more linear.

PLS remains the largest and most liquid pure-play lithium exposure on the ASX, This makes the company the default choice for investors who want direct lithium price sensitivity in FY27 without the stock-specific risks of smaller producers.

Liontown Resources Ltd (ASX: LTR): a higher-risk bet on lithium prices and operational ramp-up

Liontown Resources Ltd (ASX: LTR) offers a different and higher-risk version of the same lithium theme.

Unlike PLS, which is an established producer with a long operational history, Liontown is still in the early stages of ramping up its Kathleen Valley lithium mine in Western Australia following first production in mid-2024.

That ramp-up risk means Liontown’s performance in FY27 will depend not just on the lithium price, but on whether the company can hit its own production targets.

Liontown shares gained 197% in 2025 and continued to deliver for investors who held through FY26 as lithium prices recovered. But the operational risk at Kathleen Valley should not be ignored by investors considering a position.

The bull case is straightforward: if lithium prices hold above US$1,000 per tonne and Kathleen Valley continues to ramp toward its nameplate capacity, Liontown becomes a materially more profitable business in FY27 than it was in any prior year.

Can the materials sector repeat FY26 in FY27?

The most honest answer is: potentially.

The commodity tailwinds that drove the sector’s 47% return are still present, but the easy gains from the initial recovery move are already reflected in current prices.

Gold has pulled back from its highs as rate-hike expectations firmed.

Copper has found resistance above US$13,000 per tonne as Chinese demand data has been mixed.

Lithium prices have stabilised but not yet surged to a new leg higher.

For long-term investors, the materials sector still offers compelling structural exposure to AI infrastructure, electrification, and green energy demand that is likely to persist well beyond any single financial year.

For investors expecting another 47% year in FY27, the bar is considerably higher than it was at the start of FY26.

Foolish takeaway for ASX materials shares

The ASX 200 materials sector’s 47% return in FY26 was extraordinary.

BHP brings the most diversified commodity exposure and the strongest balance sheet of the three, but the Jansen impairment is a watch point.

PLS is the cleanest pure-play on lithium prices with the least stock-specific risk.

Liontown offers more upside if both the lithium price and the Kathleen Valley ramp-up deliver, but carries meaningfully more risk than either of the other two.

Whether the ASX 200 materials sectors performance can be repeated in FY27 is another question. Investors should keep an eye on whether the tailwinds that drove FY26 can continue delivering in FY27.

The post The ASX 200 sector that outperformed the benchmark 7 to 1 in FY26. Can it keep delivering? appeared first on The Motley Fool Australia.

More reading

• If I’d invested $4,000 in PLS Group shares 12 months ago, guess what I’d have now!
• How to get started with a portfolio delivering $500 a week in passive income
• How Australia’s commodities performed in FY26
• These ASX shares could generate $5,000 per year in passive income
• 5 best-performing ASX 200 shares of FY26

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

The Suncorp Group Ltd (ASX: SUN) share price is in focus after the company outlined its FY27 reinsurance program and reaffirmed FY26 outlook, with natural hazard costs expected $250 million above allowance and underlying ITR guidance towards the upper end of its 10–12% range.

What did Suncorp report?

• FY27 reinsurance program placement completed, adding $800 million annual aggregate cover for five years
• Total reinsurance costs in FY27 expected to be higher than FY26 due to exposure growth and aggregate cover
• Natural hazard costs in FY26 are forecast at $2.02 billion, approximately $250 million above the $1.77 billion allowance
• Underlying insurance trading result (ITR) for FY26 anticipated towards the upper end of the 10–12% range
• Gross Written Premium (GWP) growth for FY26 expected to be around 2.7%
• FY26 investment income expected between $750 million and $800 million, down from $1.23 billion in FY25

What else do investors need to know?

Suncorp has announced a new five-year aggregate reinsurance arrangement, effective from 30 June 2026, providing substantial protection against natural disasters. The main catastrophe cover now protects losses between $500 million and $6.4 billion, including for Home, Motor and Commercial property portfolios across Australia and New Zealand.

Total reinsurance costs in FY27 are set to rise, mainly due to the new aggregate cover and expanded exposure, but this is partly offset by more favourable catastrophe program pricing. Additionally, Suncorp will release about $100 million of capital thanks to lower capital targets, giving the balance sheet a welcome boost.

On the leadership front, Steve Johnston returns as CEO from medical leave on 6 July 2026, with acting CEO Jeremy Robson resuming as CFO, restoring the executive team’s usual structure.

What’s next for Suncorp?

Suncorp will provide further detail on capital management and natural hazard experience at its FY26 results presentation, scheduled for 12 August 2026. The company’s strategic focus remains on balancing risk protection with efficiency, aiming to protect both shareholders and customers against volatile weather events.

Looking forward, Suncorp’s enhanced reinsurance structure aims to keep earnings more stable and strengthen resilience in an increasingly unpredictable environment. The leadership team’s return to its usual configuration signals ongoing continuity in strategy and execution.

Suncorp share price snapshot

Over the past 12 months, Suncorp shares have declined 7%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

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The post Suncorp reveals FY27 reinsurance plans and FY26 guidance update appeared first on The Motley Fool Australia.

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• Meridian Energy gets green light to expand Lake PÅ«kaki storage
• Vault Minerals meets guidance as growth projects advance
• PEXA Group responds to IPART draft service fee review
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The PEXA Group Ltd (ASX: PXA) share price is in focus after the company acknowledged a draft report from the NSW Independent Pricing and Regulatory Tribunal (IPART) proposing a 20% revenue reduction for regulated service fees, which could impact an estimated $70 million in revenue.

What did PEXA Group report?

• IPART draft report proposes reducing PEXA Exchange’s regulated revenue requirement by about 20%.
• This equates to an estimated $70 million reduction in revenue for PEXA.
• The draft report recommends fee reductions over one year, but PEXA is advocating for a four-year phase-in.
• No immediate changes to PEXA’s service fees; current arrangements remain in place for FY27.
• Potential changes would commence from 1 July 2027, spanning through FY31.

What else do investors need to know?

PEXA stated that the proposed changes are still at a draft stage and remain open to public consultation. The final IPART recommendations will be submitted to the Australian Registrars’ National Electronic Conveyancing Council (ARNECC) after this process. Importantly for investors, any changes to regulated Electronic Lodgement Network Operator (ELNO) service fees wouldn’t start until FY28. PEXA has highlighted the importance of phasing any reduction to allow the business time to adjust and maintain stability. An investor briefing will be held today at 9:30am (AEST), offering more detail on PEXA’s response and future plans.

What’s next for PEXA Group?

PEXA will take part in the public consultation process, including a scheduled public hearing on 21 July 2026 and the submission of its response before 14 August 2026. The Group will continue engaging with stakeholders and IPART to shape the final outcome of the fee review. In the meantime, PEXA is focused on advocating for a more gradual introduction of any price changes and remains committed to supporting its customers and the property settlement industry.

PEXA Group share price snapshot

Over the past 12 months, PEXA shares have declined 15%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 2% over the same period.

View Original Announcement

The post PEXA Group responds to IPART draft service fee review appeared first on The Motley Fool Australia.

More reading

• Meridian Energy gets green light to expand Lake PÅ«kaki storage
• Vault Minerals meets guidance as growth projects advance
• Suncorp reveals FY27 reinsurance plans and FY26 guidance update
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Laura Stewart 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 PEXA Group. The Motley Fool Australia has positions in and has recommended PEXA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.