Category: Stock Market

Gold miner St Barbara Ltd (ASX: SBM) has announced two deals worth $470 million under which it will sell down interests in its Simberi gold operations in Papua New Guinea.

The company has also announced a positive feasibility study for expansion of the Simberi mine, which would add another 13 years to its mine life.

Two major deals announced

Late on Wednesday, St Barbara said it had struck an agreement with Chinese company Lingbao Gold Group (HKG: 3330), which would pay $370 million for a half stake in a St Barbara subsidiary, which in turn would own 80% of the Simberi gold project.

St Barbara separately announced a deal to sell 20% of Simberi to another company, Kumul Mineral Holdings, for $100 million.

St Barbara said the transactions would mean it was fully funded for its share of the expected capital costs of the Simberi expansion project, “thereby significantly derisking the Simberi Expansion Project and accelerating the timeline to final investment decision and expanded production”.  

Deal a boon for shareholders

The company said in a statement to the ASX that the deal valued the Simberi project at more than St Barbara’s current market valuation.

The transaction values 100% of the Simberi Gold Project at $800 million which represents a 31% premium to the current St Barbara market capitalisation. The transaction represents a materially higher premium to the current look through value of Simberi within St Barbara, with St Barbara’s market capitalisation also reflecting its 100% ownership of the development projects in Nova Scotia and substantial cash, bullion, gold sales receivables and investments.

St Barbara said Lingbao was a major Chinese gold producer, which was listed on the Hong Kong Stock Exchange, with a valuation of about US$2.8 billion.

St Barbara Managing Director Andrew Strelein said the two deals announced on Wednesday would help fast-track the Simberi expansion.

The investments by Lingbao and Kumul in Simberi will help us accelerate the development of the Simberi Expansion Project and the delivery of its value to our shareholders and key stakeholders in PNG.” “This is a high-quality brownfields project with low capital intensity, a highly competitive operating cost structure and long-life resource that has potential to grow in the future. With Lingbao we have a committed, experienced and a well-funded partner. In addition, we welcome Kumul to the project as a co-investor.

St Barbara also announced on Wednesday that the feasibility study into the Simberi expansion indicated it would produce 2.1 million ounces of gold over 13 years out to 2039.

The initial project capital was estimated at US$275 million, with pre-expansion growth capital of a further US$50 million to US$70 million across FY26 and FY27.

Mr Strelein said the project was developing into a “highly compelling opportunity to create real value for St Barbara shareholders”.

The expansion project would double the rate of mining from the current rate of 10 million tonnes of ore per year.

The post St Barbara announces $470 million worth of deals to bolster its expansion plans appeared first on The Motley Fool Australia.

More reading

• Brokers say buy these ASX stocks for 6% dividend yields in 2026
• APA Group declares December 2025 half-year distribution
• AMP settles legacy class action for $29 million
• 3 ASX dividend stocks to brighten your Christmas stocking
• HomeCo Daily Needs REIT posts $219m gain and refinances $810m debt

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.

The AMP Ltd (ASX: AMP) share price is in focus after the company announced a $29 million in-principle settlement to resolve a commissions class action, addressing legacy legal issues dating back to 2014.

What did AMP report?

• Reached agreement in principle to settle a class action for $29 million
• Claims relate to commissions paid from July 2014 to February 2021
• Settlement covers AMP and former advice subsidiaries
• Settlement is subject to Federal Court approval and final documentation

What else do investors need to know?

The class action was initiated in 2020 and relates to historical commissions paid by AMP and subsidiaries, including AMP Financial Planning, Charter Financial Planning, and Hillross Financial Services. The settlement also covers claims against Resolution Life Australasia (formerly AMP Life), which provided insurance products during the relevant period.

AMP has emphasised that the agreement involves no admission of liability. The company is continuing to address historic legal matters while focusing on its ongoing operations and customer commitments.

What did AMP management say?

AMP Chief Executive Alexis George said:

I’m pleased that we have resolved another legacy legal matter as we focus on the future and on delivering for our customers and members.

What’s next for AMP?

The $29 million class action settlement awaits approval from the Federal Court of Australia and final documentation processes. If approved, this will help AMP draw a line under a key legacy legal matter.

AMP has been working to resolve legacy legal and regulatory issues, with management signalling an ongoing focus on operational performance and supporting customers in the future.

AMP share price snapshot

Over the past 12 months, AMP shares have risen 14%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post AMP settles legacy class action for $29 million appeared first on The Motley Fool Australia.

More reading

• APA Group declares December 2025 half-year distribution
• HomeCo Daily Needs REIT posts $219m gain and refinances $810m debt
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Abacus Storage King declares partially franked December 2025 dividend

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.

With Christmas only a few weeks away, some Australians are turning their attention to gifts, holidays, and long lunches. Others are quietly eyeing the share market, looking for ASX dividend stocks that might deliver a little extra cheer well into the new year.

If you’re in the latter camp, three income-friendly ideas stand out thanks to resilient business models, improving outlooks, and ongoing commitments to shareholder returns.

APA Group (ASX: APA)

Energy infrastructure giant APA Group has spent the past two decades expanding and operating one of Australia’s most critical gas pipeline networks. Its steady, regulated-style earnings profile has long made it a favourite among dividend seekers, and FY25 results reinforced why.

APA delivered underlying operating earnings (EBITDA) growth of just over 6%, supported by modest margin expansion and strong underlying demand for gas transport. The company is also guiding for further earnings growth in FY26 as it progresses key expansion projects, including upgrades to the East Coast Gas Grid.

Dividends continue to edge higher, with management planning a small uplift in FY26. While not the fastest dividend growth story on the market, APA’s appeal lies in consistency. The current distribution yield sits around the mid-6% range, partially franked, and the company appears well-positioned to continue generating dependable cash flows backed by long-term contracts and essential infrastructure.

For investors who prioritise stability, APA remains one of the sturdier ASX dividend stocks heading into 2026.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Investment house Washington H. Soul Pattinson brings a different flavour of income altogether. Unlike traditional industrials or utilities, Soul Patts invests its capital across listed equities, private businesses, property, credit, and emerging ventures. The result is a diversified, long-term focused portfolio with a remarkable record of compounding value over decades.

The share price has pulled back since its merger with Brickworks, bringing its fully franked dividend yield up towards the high 2% range. That may seem modest at first glance, yet Soul Patts has increased its dividend every year since 2000 — a feat few ASX companies can match.

Recent updates have highlighted growing contributions from both established holdings and a pipeline of smaller private investments spanning multiple industries. Several of these early-stage businesses — from education services to financial advice — are being nurtured with an eye toward long-term growth.

For patient investors, Soul Patts continues to offer something rare: a conservative balance sheet, a long track record of prudent capital allocation, and dividends that have proven incredibly reliable over time.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

If diversification is your Christmas wish, the Vanguard Australian Shares High Yield ETF could be a simple way to spread income risk across dozens of large, dividend-paying companies.

The ETF screens for businesses forecast to pay higher dividends relative to the broader market while applying guardrails to avoid excessive concentration in any single sector or holding. As of the latest update, the fund holds a mix of banks, energy companies, infrastructure names, and defensive industrials — many of which have long histories of paying dividends.

VHY has delivered strong total returns since 2022 and currently offers a yield in the high single digits, with franking levels that vary quarter to quarter. Distribution volatility can occur, but longer-term investors have generally been rewarded with rising payouts over time.

For investors who prefer a hands-off approach to income investing, VHY may offer one of the simplest pathways to building a diversified basket of ASX dividend stocks.

Foolish Takeaway

Whether you favour infrastructure, diversified investment houses, or broad-market ETFs, this trio shows there are still opportunities for income-focused investors as the year winds down. 

As always, a long-term mindset and a focus on quality remain the best gifts you can give your future self.

The post 3 ASX dividend stocks to brighten your Christmas stocking appeared first on The Motley Fool Australia.

More reading

• APA Group declares December 2025 half-year distribution
• Own Qantas shares? Here are the dividend dates for 2026
• 2 strong Australian stocks to buy now with $10,000
• APA Group gains $1bn extra funding capacity after S&P credit rating change
• See which companies have just been added to key ASX indices

Motley Fool contributor Leigh Gant 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 Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Apa Group and Washington H. Soul Pattinson and Company Limited. 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.

The HomeCo Daily Needs REIT (ASX: HDN) share price is in focus today, after the company posted a $219 million preliminary unaudited valuation gain for the half-year ended 31 December 2025, representing a 4.5% lift in portfolio value, and completed an $810 million debt refinancing.

What did HomeCo Daily Needs REIT report?

• Preliminary unaudited valuation gain of $219 million, up 4.5% on June 2025 portfolio value
• Gearing remains within target range at the midpoint of 30–40%
• Refinanced $810 million of debt, now maturing July 2028, with a 42.5 basis point margin improvement
• Distribution of 2.15 cents per unit for the December quarter declared
• FY26 distribution guidance reaffirmed at 8.6 cents per unit; FFO guidance at 9.0 cents per unit

What else do investors need to know?

The valuation increase was driven by strong net operating income growth, solid tenant demand, and a slight tightening of capitalisation rates to 5.51%. This is the fourth straight period HomeCo Daily Needs REIT has posted positive net revaluation gains, bolstered by ongoing tenant-led developments.

Approximately 70% of HomeCo Daily Needs REIT’s debt is hedged until December 2026, helping manage interest rate risk. The December quarter distribution comes with an active Distribution Reinvestment Plan, allowing unitholders to reinvest with no discount.

What did HomeCo Daily Needs REIT management say?

HomeCo Daily Needs REIT Fund Manager Paul Doherty said:

This is the fourth consecutive period HDN has recorded positive net revaluation gains. The positive valuation gain has been driven by strong net operating income growth, accretive tenant led developments and capitalisation rate tightening.

What’s next for HomeCo Daily Needs REIT?

Looking ahead, HomeCo Daily Needs REIT has reaffirmed its guidance for FY26, expecting distributions of 8.6 cents per unit and FFO of 9.0 cents per unit. The company will continue focusing on high occupancy, tenant-led development opportunities, and maintaining a strong balance sheet.

HomeCo Daily Needs REIT is also a strategic investor in the Last Mile Logistics fund, aiming to further grow its footprint in convenience-based, non-discretionary retail and essential last mile infrastructure.

HomeCo Daily Needs REIT share price snapshot

Over the past 12 months, HomeCo Daily Needs REIT shares have risen 15%, outpacing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post HomeCo Daily Needs REIT posts $219m gain and refinances $810m debt appeared first on The Motley Fool Australia.

More reading

• APA Group declares December 2025 half-year distribution
• AMP settles legacy class action for $29 million
• These top ASX dividend shares offer 5% to 10% yields
• 5 things to watch on the ASX 200 on Thursday
• 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 recommended HomeCo Daily Needs REIT. 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 Xero Ltd (ASX: XRO) share price has been on a rough run in recent months, falling close to 30% from its highs. For a company long seen as one of the premium tech names on the ASX, the pullback has caught the eye of many investors, including me.

At yesterday’s market close, Xero shares were changing hands for about $114. It has been nearly two years since the stock traded this low, and analysts continue to place their estimates much higher than that.

Which brings us to the obvious question: has the market gone too far, or is this a rare chance to pick up a high-quality growth stock at a serious discount?

Why has the Xero share price struggled?

Unfortunately for Xero investors, the recent slide hasn’t come out of nowhere. The company has faced a combination of headwinds, including slower subscriber growth in important regions, higher operating costs, and rising competition. With small-business conditions softening as well, several brokers cut their price targets, which weighed further on the Xero share price.

There were also concerns that Xero’s margins might take longer to improve than previously hoped, especially with the company continuing to invest heavily in product development and AI features.

Has the market priced in too much bad news?

Despite the slump, Xero remains a high-quality, global business with a long runway ahead of it. The company continues to grow revenue at a solid pace, subscriber numbers remain strong overall, and long-term adoption of cloud accounting software still has plenty of room to expand, particularly in the UK and North America.

Several analysts have flagged the recent sell-off as overdone. Current broker price targets generally sit between $145 and $170, with Macquarie going as far as tipping nearly 90% upside from current levels.

Xero has also been trimming costs, making the business more efficient, and being more selective with its spending.

What could help improve sentiment

A few things may help shift the market’s view over the next 12 to 18 months, including steadier subscriber growth in major markets, stronger margins, continued interest in Xero’s AI-driven tools, and improving conditions for small businesses.

If Xero can show clear progress across these areas, it wouldn’t take much for investor confidence to quickly rebuild.

So, is this a buying window for long-term investors?

A 30% pullback in a high-quality tech company is not something you see very often. Xero remains a global leader in a subscription-based market, with a long runway still ahead of it.

Whether this turns out to be one of those buying moments will depend on what management delivers next, but at these levels, the Xero share price is starting to look much more appealing for long-term investors.

The post When a top ASX stock falls 30%, it gets my attention. Here’s why appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Medibank, Qantas, and Xero shares
• Stocks to target for a tech rebound in 2026
• How to build a $100,000 ASX share portfolio starting at zero
• The smart way to make a $25,000 passive income from ASX shares
• 3 explosive ASX ETFs to buy and hold

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

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

November was a tough month for Nvidia (NASDAQ: NVDA) investors. Despite reporting another blowout quarter on November 19th, the artificial intelligence (AI) juggernaut’s stock fell 12.6% from the closing bell on Oct. 31 through the end of trading on Nov. 28.

November was marked by growing fear of an AI bubble with Nvidia at its very heart. While Nvidia itself is making incredible amounts of money selling picks and shovels to AI gold miners, investors are wondering just how much gold there really is and if it’s enough to justify buying Nvidia’s extremely expensive equipment — at least at current levels.

While that concern has been on the mind of shareholders for some time, it peaked this month after Alphabet‘s Google released its latest AI model, Gemini 3. The large language model (LLM) was widely received as an improvement on the latest models from both OpenAI and Anthropic, but critically, the model was trained with Google’s own chips, not Nvidia’s.

Google’s Gemini 3 raises questions about Nvidia’s AI chip dominance

These chips — called TPUs — are specifically designed and optimized for the kinds of operations that Google uses to train its LLMs, making them both cheaper to produce and cheaper to run. That directly challenges the primary narrative driving Nvidia’s success, that its chips are so much more advanced than the competition that it is worth paying a hefty premium for them.

And while it is still true that Nvidia’s GPUs are far more powerful and flexible than Google’s TPUs, given Gemini 3 is so capable, it’s reasonable to wonder why Google — or any of the other massive hyperscalers with the means to develop their own chips — wouldn’t move toward relying primarily on their own chips.

Record Q3 earnings couldn’t stop the November sell-off

Despite this fear, however, Nvidia’s Q3 earnings showed no signs that its orders are slowing down — quite the opposite. It once again delivered massive top- and bottom-line growth, both year-over-year and quarter over quarter, with gross margins that one would expect from a Software as a Service (SaaS) company, not a chipmaker. 

Nvidia stock has regained its footing, rising roughly 4.3% so far in December. While peak fear seems to have subsided, I think investors should still be cautious. It is hard to argue with the eye-popping numbers Nvidia is delivering, but I do question how long its place at the center of the AI boom — and the AI boom itself — can continue.

There has been limited evidence of AI’s impact so far in the real economy, and while there is certainly a lot of promise in the technology, there comes a point where that won’t be enough for shareholders to stomach the hundreds of billions being invested.

Nvidia’s valuation is entirely built on its growth trajectory continuing apace. In the near term, there are no real signs that will falter. Long term, however, I have my doubts.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Nvidia stock price slumped 12.6% in November. What’s next for the artificial intelligence (AI) behemoth? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• 3 excellent ASX ETFs to buy with $3,000 in December
• 3 reasons to buy Nvidia stock like there’s no tomorrow
• If you’d invested $1,000 in Nvidia 5 years ago, here’s how much you’d have today
• Forget Nvidia? The under the radar AI stock everyone’s suddenly watching
• Better artificial intelligence stock: Palantir Technologies vs. Nvidia

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

For investors with a long time horizon and an appetite for higher returns, growth-focused exchange traded funds (ETFs) can be an excellent way to capture emerging trends and powerful compounding without the pressure of picking individual winners.

Whether you are searching for small caps, global tech, or diversified high-growth portfolios, there is likely to be an ASX ETF out there for you.

With that in mind, let’s take a look at three funds that could be top picks for growth investors heading into 2026.

Betashares Australian Small Companies Select ETF (ASX: SMLL)

Small caps are often where the next generation of market leaders begin, but they can also be volatile and difficult to analyse individually.

The BetaShares Australian Small Companies Select ETF solves this by focusing on profitable, higher-quality small stocks rather than speculative miners or businesses that are unsustainably burning cash.

Its index screens for companies with positive earnings, strong balance sheets, and reasonable valuations. That means investors avoid the traditional pitfalls of the Australian small-cap universe, which is often littered with unprofitable explorers and early-stage businesses with uncertain futures.

Current holdings include Capricorn Metals Ltd (ASX: CMM), Codan Ltd (ASX: CDA), and Breville Group Ltd (ASX: BRG).

This fund was recently recommended by analysts at Betashares.

Betashares Diversified All Growth ETF (ASX: DHHF)

Another ASX ETF for growth investors is the Betashares Diversified All Growth ETF.

If you want ultimate simplicity with maximum growth exposure, it is hard to beat this fund. This ASX ETF is invested in a blend of large, mid, and small cap stocks from Australia, global developed and emerging markets.

Betashares notes that this means it offers investors exposure to an all-cap, all-world share portfolio with the potential for high growth over the long term. In total, the fund provides exposure to approximately 8,000 stocks that are listed on over 60 global exchanges.

It was also recently recommended by analysts at Betashares.

Betashares Cloud Computing ETF (ASX: CLDD)

A third ASX ETF for growth investors to look at is the Betashares Cloud Computing ETF.

Businesses across the world now rely on cloud platforms to run software, manage data, deploy artificial intelligence, and operate at scale.

And with cloud adoption still expanding rapidly, this ASX ETF gives investors direct exposure to the companies powering that transformation.

The fund includes global cloud leaders such as Shopify (NASDAQ: SHOP), ServiceNow (NYSE: NOW), and Snowflake (NYSE: SNOW). These companies are deeply embedded in the digital economy, providing the infrastructure and software that modern organisations cannot function without.

It was recently recommended by analysts at Betashares.

The post 3 stellar ASX ETFs for growth investors to buy in 2026 appeared first on The Motley Fool Australia.

More reading

• $10,000 invested in DHHF ETF 3 years ago is now worth…
• 3 excellent ASX ETFs for investors who never want to pick stocks
• Want to invest in AI? These ASX ETFs give you instant exposure
• Where to invest $10,000 in ASX ETFs this December
• 3 ASX thematic ETFs that could boom over the next decade

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

Woolworths Group Ltd (ASX: WOW) shares ended in the green at the close of the ASX on Wednesday. The shares ended the day 0.68% higher at $29.52 a piece. The supermarket giant’s shares are now down 12.17% from their annual peak in August and 2.57% lower than this time last year.

What happened to Woolworths shares?

The supermarket giant’s share price dived nearly 20% after it posted a disappointing FY25 result in late-August. The stock dropped to an all-time low of $25.91 a piece in mid-October but was saved from any further decline after the company posted a more positive first-quarter sales update.

Since bottoming out, the Woolworths share price has recovered just over 13% to the current trading price.

Are Woolworths shares a buy today?

Woolworths is one of the largest and most established supermarket businesses in Australia, alongside Coles. Its oligopoly, with supermarket rival Coles, mean the two supermarkets have significant power over the Australian grocery sector. The latest Australian Competition and Consumer Commission (ACCC) estimates that Woolworths holds approximately 38% of Australia’s nationwide supermarket grocery sales.

It’s this dominance which gives Woolworths a competitive advantage in the retail space.

Not only is the business huge, it is also defensive. As a grocery retailer, Woolworths will always see relatively stable demand for its products, even during a downturn or period of uncertainty. Everyone needs to eat!

Another obvious reason that Woolworths shares are a great buy is its reliable passive income. The business is well-known for its lengthy history of paying consistent, and sometimes generous, dividends.

In FY25, the supermarket giant handed out a total of 85 cents per share, fully franked. Bell Potter expects the ASX retail stock will pay a boosted fully-franked dividend of 91 cents per share in FY26 and then $1 per share in FY27. 

What do the experts think?

Analysts are mostly optimistic about the stock’s share price trajectory over the next 12 months. Data shows that 6 out of 14 analysts have a buy or strong buy rating on Woolworths shares. The remaining 8 have a hold rating. 

The average target price is $30.29; however, some expect it could go as high as $33. This implies a potential 2.62% to 11.79% upside for investors over the next 12 months, at the time of writing.

Morgans is one broker which is more bearish on the shares. Its team has a hold rating on Woolworths with a price target of $28.25. The broker said it thinks the stock is currently fully valued and would “prefer to wait for further evidence of improvement before reassessing our view”.

The post Woolworths shares are down 12% from their peak. Should those who don’t own them consider buying now? appeared first on The Motley Fool Australia.

More reading

• RBA watch: Sectors to target and avoid should interest rates rise – Expert
• What’s going on with the Woolworths dividend?
• Which stocks are looking good as rates appear to be heading north?
• Buy BHP, Woolworths, and these ASX dividend shares
• Where to invest $20,000 in ASX dividend shares

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

This week, the Reserve Bank of Australia held the cash rate at 3.6%.

The lead up to this decision saw a swing in the consensus views of many experts. 

Less than two months ago, markets were anticipating further rate cuts this year, however now the sentiment has shifted to expect rate hikes in 2026. 

The team at Wilsons Advisory and Canaccord Genuity have provided an overview of how sectors have historically responded to this kind of economic climate. 

Greg Burke, Equity Strategist said the recent RBA monetary policy meeting reaffirmed that the central bank has well and truly moved from an easing bias to incrementally hawkish on-hold stance, with increasing risks of a 2026 interest rate hike. 

Despite this, the outlook for domestic equities remains constructive. Household spending remains resilient, the RBA’s three rate cuts this year have arguably yet to fully flow through to consumer activity, and loose domestic fiscal policy continues to support economic growth.

Against this backdrop, the report assesses the interest rate sensitivities of key ASX sectors.

Historically performing sectors with RBA hikes

The report said two of the sectors that have historically outperformed during RBA hike periods are: 

• Resources – According to Wilsons Advisory, a more hawkish RBA combined with a dovish Fed supports AUD strength, historically a key driver of mining sector outperformance. Ultimately, resources are more sensitive to global growth than domestic demand. 
• Consumer staples – Staples typically outperform into RBA hiking periods, and valuations look attractive relative to Cyclical Retail, creating scope for a rotation, particularly if the RBA turns more hawkish.

The report also highlighted that it is positive on the healthcare sector. 

Despite historical underperformance pre-RBA hikes, relative valuations are already at 20-year lows, supporting a more constructive sector view.

It’s worth noting that while banks often outperform ahead of RBA hikes, Wilsons Advisory said sector valuations are elevated relative to prior cycles, and earnings momentum is mixed, which tempers its outlook.

Sectors likely to underperform

The report from Wilsons Advisory also said retailers typically underperform prior to RBA hikes and are vulnerable to higher rates, particularly as valuations are demanding. We prefer global earners.

According to the report, domestic cyclicals – including media, retail and other parts of the broader Consumer Discretionary sector – are particularly vulnerable to higher short-term interest rates and typically underperform in the lead up to RBA rate hikes, as investors anticipate a weaker environment for household spending.

Another sector to potentially underperform during RBA rate hike periods is real estate. 

Wilsons Advisory said similar to domestic cyclicals, the RBA’s pivot to a more hawkish on-hold stance removes a key tailwind for A-REITs and other long-duration assets.

However, policy is yet to become an outright headwind with the RBA remaining on-hold.

Stocks to watch 

In the resources sector, the report said given the sector’s higher sensitivity to the global growth pulse than to domestic demand, it remains positive on resources irrespective of the RBA’s policy stance. 

Our preferred large-cap exposures are copper: Sandfire Resources NL (ASX: SFR), aluminium: Alcoa (ASX: AAI) and gold: Evolution Mining Ltd (ASX: EVN), Northern Star Resources Ltd (ASX: NST).

In the consumer staples sector, Wilsons Advisory noted it has outperformed in the lead up to the past three RBA hiking cycles. 

While the sector is exposed to the broader consumer environment, household spending on essentials – particularly food and groceries – is typically highly resilient through the economic cycle. This has historically driven rotations out of Cyclical Retailers and into the more defensive Consumer Staples sector, as the market anticipates tougher times ahead for consumers.

Its preferred stock is Woolworths Group Ltd (ASX: WOW). 

The post RBA watch: Sectors to target and avoid should interest rates rise – Expert appeared first on The Motley Fool Australia.

More reading

• Woolworths shares are down 12% from their peak. Should those who don’t own them consider buying now?
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• What’s going on with the Woolworths dividend?
• Which stocks are looking good as rates appear to be heading north?

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

ASX defence stocks have surged in 2025. 

This has been influenced by ongoing geopolitical tension, which has prompted governments to spend more on their defence sector. 

This includes development of technology such as drones, AI or electronic warfare. It also includes equipment such as missiles or submarines. 

Australia is included in this defence spending push. 

In March this year, the Australian government announced it was investing an additional $50.3 billion into the Australian Defence Force (ADF).

Yesterday, the team at Bell Potter released a report including analyst outlooks and stock picks for December 2025. 

In the report, Baxter Kirk, Industrials Analyst, said global defence strategy is undergoing a structural pivot, driven by the proliferation of low-cost, high-lethality unmanned systems in recent conflicts. 

This rise of asymmetric warfare has exposed the economic inefficiency of traditional air defence, creating an urgent mandate for “attritable” drones and cost-effective counter-measures. 

We view the twin themes of resilient drone connectivity and counter-drone solutions as key drivers of defence procurement for the coming cycle.

The report also included two ASX defence stocks with buy recommendations.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The company is a provider of counter-drone solutions, remote weapon systems (RWS), and space control technologies. 

Its stock price has already risen by 266.41% in 2025. 

According to Bell Potter’s report, following the landmark A$125m award for the world’s first export of a 100kw High Energy Laser Weapon (HELW) in August 2025, EOS has secured a firstmover advantage in the high-value HELW counter-drone vertical. 

Looking ahead to 2026, the broker said it sees upgrade potential to revenue estimates, driven by increasing global capital allocation toward counterdrone capabilities. 

Specifically, Bell Potter anticipates the advancement of HELW contracts (>1 unit) through the sales pipeline alongside continued awards for conventional and counter-drone RWS.

As well as a buy recommendation, Bell Potter has a price target of $8.10 on this ASX defence stock. 

From yesterday’s closing price of $4.80, this indicates a further upside of 68.75%. 

Elsight Ltd (ASX: ELS)

Elsight is a key supplier of communication modules to drone manufacturers. 

Its flagship product, Halo, integrates multiple communication pathways (5G, LTE, SATCOM, RF) into a single resilient, encrypted data link, functioning as a mission-critical enabler for Beyond Visual Line of Sight (BVLOS) operations. 

According to Bell Potter, CY25e marked a pivotal inflection point for ELS, with the company achieving profitability and delivering estimated revenue growth of 12x YoY (BPe). 

We enter CY26e viewing Halo as a marketleading enabler of BVLOS connectivity for unmanned systems. Accordingly, we forecast a 41% revenue CAGR over CY25-28e, driven by the rapid proliferation of unmanned systems across both defence and commercial verticals.

Elsight has risen by 473.68% already in 2025. 

The broker has a price target of $2.00 along with a buy recommendation. 

This indicates this ASX defence stock is trading close to fair value or slightly over at $2.18. 

The post Two ASX defence stocks to add to your christmas wish list appeared first on The Motley Fool Australia.

More reading

• The sleeper defence stock set to explode? Up 240% in 2025, and poised to fire again!
• 4 ASX shares I’d buy today with $10,000
• Top brokers name 3 ASX shares to buy next week
• Brokers name 3 ASX shares to buy today
• Forget Droneshield shares, I’d buy this ASX defence stock instead

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.