Category: Stock Market

Consumer discretionary stocks are susceptible to rise and fall with economic cycles. 

Household spending can be linked to metrics like inflation, interest rates and CPI. 

When times are tough, we’re less likely to splurge on non-essential items like electronics and jewellery. 

Two ASX consumer discretionary stocks that offer these kinds of products are Lovisa Holdings Limited (ASX: LOV) and Kogan.Com Limited (ASX: KGN). 

The team at Bell Potter has just released fresh guidance on both these consumer discretionary stocks. 

Here’s the latest analysis from Bell Potter. 

Lovisa Holdings Limited (ASX: LOV)

Lovisa offers affordable, on-trend fashion jewellery and other accessories. 

Its vertically integrated business model involves developing, designing, sourcing, and merchandising 100% of its Lovisa-branded products.

Its stock price has experienced plenty of volatility this year, and at the time of writing, is trading at $30.68 per share. 

However, as the chart shows below, shares have been as high as $43.00 and as low as $21 in 2025. 

The company held its AGM last week. 

Following the AGM, Bell Potter maintained its hold recommendation on this ASX consumer discretionary stock. 

However, the broker reduced its price target to $33.50 (from $42.00 previously). 

Bell Potter reduced its price target on the company primarily because the latest trading update showed softer-than-expected comparable sales and a need to temper earlier, more optimistic assumptions, which flowed through to lower earnings forecasts and a lower valuation multiple.

Our Price Target decreases by ~20% to $33.50 (prev $42.00). Along with our earnings revisions, we also reduce our target P/E multiple to ~32x on FY27e (prev. 38x on FY27e) to reflect the de-rating in LOV/broader peer group and our relative expectations for growth within our overall coverage.

Kogan.Com Limited (ASX: KGN)

This consumer discretionary stock is an Australian pure-play online retailer. 

The company primarily caters to value-driven consumers through its private label products, spanning multiple categories including consumer electronics, appliances, homewares, hardware and toys.

Kogan’s share price has dropped 50% year to date. 

Following its AGM last week, Bell Potter maintained its hold rating but reduced its price target to $3.30 (from $4.30 previously). 

The broker said EBITDA for the period was at the lower end of the 6-9% EBITDA margin guidance for FY26.

It also noted that while the company does showcase some stability, it is focused on the Nov-Dec period for the Australian business, as challenging comps are being tested. A path to recovery is expected in the NZ business in 2H thereafter.

We continue to view EBITDA margins as highly sensitive to the investment into sustaining the GS/customer/subscriber growth. At our revised PT of $3.30 the total expected return is <15% so we maintain our HOLD rating.

Based on the broker’s revised price target of $3.30, there is an estimated upside of 9.27% from Kogan’s closing price yesterday of $3.02. 

The post Lovisa vs Kogan – Which consumer discretionary stock does Bell Potter prefer? appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares that I think are buys for both growth and dividends
• 5 things to watch on the ASX 200 on Tuesday
• Leading brokers name 3 ASX shares to buy today
• Why Gentrack, Kogan, Webjet, and WiseTech shares are pushing higher today
• Why Accent, DroneShield, Lovisa, and Pilbara Minerals shares are sinking today

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 Kogan.com and Lovisa. The Motley Fool Australia has recommended Kogan.com and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Chrysos (ASX: C79) is an ASX industrials stock that has risen 67% year to date. 

However, it hit a bit of a speed bump yesterday, falling 8%. 

Last month, The Motley Fool’s Leigh Grant covered in depth how its unique and innovative product – PhotonAssay – is changing the way mining companies test ore. 

This kind of disruptive technology has seen its market capitalisation rapidly approach $1 billion and is quickly gaining investor attention. 

This could be an opportunity for investors to gain exposure to an innovative company at a slight discount.

What is Chrysos?

Chrysos combines science and software to create technology solutions for the global mining industry. 

Its flagship product is PhotonAssay. 

It can be used to detect a wide range of elements. However, it has proven particularly effective for assaying gold and is currently being rolled out across the gold mining industry.

PhotonAssay delivers faster, safer, more accurate, and environmentally friendly analysis of gold, silver, and complementary elements. 

The technology has rapidly displaced slower, more hazardous, and costly processes. It has quickly become an innovative and valuable mining industry solution.

AGM at a glance

Yesterday, the company held its 2025 AGM, and reiterated FY26 guidance of:

• FY26 Total Revenue range of $80m to $90m
• FY26 EBITDA range of $20m to $27m

Following the AGM, the team at Bell Potter upgraded this ASX industrials stock to a buy rating. This was along with an increased price target. 

It seems the broker believes Monday’s 8% decline in share price could be an opportunity for investors to get in at a discount. 

Here’s what the broker had to say. 

Industry adoption accelerating

In a report yesterday from Bell Potter, it highlighted the year-to-date (YTD) financial update (to 31 October 2025). 

According to the report, revenue for this ASX industrials stock was $28.9m, up 54% year over year (YoY). 

The broker also noted the company now has 41 deployed units, with recent deployments in Ontario and Norseman, two units currently being installed in Perth, two new lease agreements with ALS and Acrux Gold, and an MoU with Allied Gold for two additional units. 

Upcoming installations include C79’s first Newmont unit in Ghana, as well as additional units for Bureau Veritas in Chile, MSALABS in Canada, and Allied Gold in West Africa.

The company’s industry adoption has accelerated over the past year, driven by its new Master Services Agreement with Newmont and expanding relationships with major commercial labs. 

The exploration upcycle is expected to provide additional growth, supporting an EBITDA beat, and further accelerating adoption of PhotonAssay technology.

Buy recommendation for this ASX industrials stock

After previously having a hold rating on Chrysos shares, Bell Potter has upgraded the shares to a buy recommendation with an upgraded price target of $9.40. 

This ASX industrials stock closed yesterday at $8.04 each. 

With Bell Potter’s updated price target, the broker indicates an upside of 16.92%. 

Our C79 valuation is driven by a discounted cash flow model of the company’s expected PhotonAssayTM deployment and resulting sales, under a leasing model. We also recognise a corporate cost valuation allowance.

The post Should you buy the dip on this soaring ASX industrials stock? appeared first on The Motley Fool Australia.

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

Virgin Australia (ASX: VGN) and BHP Group (ASX: BHP) are two of the most recognisable Australian brands/shares. 

The team at Ord Minnett have provided fresh guidance on both.

Virgin Australia has been operating in Australia for many years. However, it recently returned to the ASX when it completed its long-awaited initial public offering (IPO) in June. 

After experiencing some volatility, its stock price is now essentially back where it started, closing yesterday at $2.96 each. 

With such a short span on the ASX, it can be difficult for investors to pinpoint fair value, despite its household name. 

However, the team at Ord Minnett have an optimistic view that Virgin shares can take off. 

Here’s the latest guidance out of the broker. 

Near-term confidence for Virgin

Ord Minnett said a key focus for Virgin will be how it manages the significantly higher jet fuel spreads.

Recent data shows average global jet fuel prices jumped circa 8% in the last two weeks of October alone. 

The refiners’ jet fuel crack spread – the price difference between crude oil and refined products – in October was up almost 40% on the crack spread in September.

‍However, a recent trading update from Virgin Australia gave Ord Minnett confidence that the near-term outlook is sound, given Virgin’s hedging program. The program incorporates the jet fuel spread. This means recent rising fuel prices will have little effect on FY26 earnings. 

Post FY26, Ord Minnett expects higher fuel costs will be mostly offset by management of the RASK metric. This could be a mix of higher ticket prices and reduced capacity.

Post the trading update, we have nudged our FY26 EPS estimate down 0.3%, while our FY27 and FY28 forecasts are cut by 2.8% and 3.1%, respectively, to incorporate the impact of fuel costs, which leads us to trim our target price to $4.00 from $4.10.

From yesterday’s closing price of $2.96, this updated price target of $4 indicates an impressive upside of 35.14%. 

Modest upside for BHP shares

Ord Minnett also sees value in BHP shares. 

The mining giant is currently navigating an appeal due to its involvement in the 2015 Fundao dam failure in Brazil at its Samarco project, which it owns in a joint venture with Brazilian company Vale. 

However, Ord Minnett noted trials that are not expected to be finalised before 2028 or 2029. Furthermore, any damages would also be mitigated by claims already paid out. 

Vale and BHP are nearly halfway through the US$32 billion settlement, leaving BHP’s remaining share to pay at circa US$9 billion.

Ord Minnett already incorporates a provision of US$6.1 billion for Samarco in our model, so we have made no changes to our earnings estimates or valuations post the UK court decision.

Despite all this, Ord Minnett has maintained its accumulate recommendation on BHP shares with a target price of $45.

Based on yesterday’s closing price, this indicates an upside of 10.78% for BHP shares. 

‍

The post What is Ord Minnetts’ view on Virgin Australia and BHP shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BHP Group. 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.

Treasury Wine Estates Ltd (ASX: TWE) shares are experiencing a horrible year. Treasury Wine shares have been under constant pressure as investors digest softer sales and a procession of downgrades.

The global wine share is trading at $5.65 apiece at the time of writing. That sees Treasury Wine shares down 49.9% over 12 months and at levels that remain at 10-year lows.

Operational and macro headwinds

The fall is painful for a prestigious company that is known for premium wine labels such as Penfolds, 19 Crimes and Lindeman’s, which are sold in more than 70 countries around the world.

The slide of Treasury Wine shares reflects a mix of operational and macro headwinds. The sale of premium wines has cooled, and the cost of freight has increased.

The company’s board has also flagged distribution challenges in key markets, such as the US. Another strategically important market, China, has recovered more slowly than expected despite the easing of trade hurdles in 2024. Trade and geopolitical shifts, particularly in the US, add to Treasury Wine’s problems.  

Downgrades and a paused buyback program

Those setbacks have led to earnings downgrades, the withdrawal of formal earnings guidance from the company and a pause to the company’s $200 million buyback program.

These moves have shaken investor confidence, and as a result, the share price has suffered significantly. The 40 cents per share in partly franked dividends that Treasury Wine paid over the full year will only compensate its shareholders modestly for their share price losses. At Monday’s closing price, Treasury Wine shares trade on a dividend yield of 7%.

Trimmed price targets

Analysts have responded with varying degrees of caution, and recent broker notes show some downgrades. However, most analysts still see Treasury Wine as positive, with a ‘hold’ or ‘buy’ recommendation. Some brokers have trimmed their price targets, though, and they now span a wide range, from $5.50 at the low end to above $10 at the top.

Ord Minnett is one broker that recently slashed its valuation for the Treasury Wine shares. Analysts of the broker lowered the 12-month price target for the wine stock from $8.00 to $6.50, following a review of its model as the new CEO takes over the reins at Treasury Wine. This suggests a 15% upside at the current share price.

The broker explains:

Our changes are driven by the following factors: (i) excessive inventory in its Americas business, which will need to be cleared – we forecast revenue declines of $150 million at a margin of 55% as stock is depleted from its sales channels; (ii) weak demand for its Penfold products in China during the mid-autumn festival season; and (iii) removal of earn-out payments on its acquisition of Daou Vineyards in 2023.

The post Are Treasury Wine shares a buy, now they are at 10-year lows? appeared first on The Motley Fool Australia.

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• Why did the ASX 200 dive to a near six-month low last week?
• Leading broker names 1 ASX 200 share to buy and 1 to hold
• Down 47% in a year, are Treasury Wine shares finally on sale?

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Navigator Global Investments (ASX: NGI) is an ASX financials stock that has already risen more than 75% in 2025. 

Navigator Global Investments is a diversified alternative asset management company that partners with a variety of institutional asset managers operating across different investment styles, product types, and client bases.

It has around US$73 billion in assets under management and is currently partnered with 11 businesses.

Yesterday, it closed trading at $2.94, and is now up 24.58% in just the last month. 

In a fresh note out of Ord Minnett, it appears the broker sees plenty more upside in this ASX financials stock following Navigator Global Investments’ recent investor day. 

Ord Minnett said the recent investor day underscored the immense growth opportunity that the asset manager has in front of it.

The broker has a buy rating on the stock and has just raised its target price to $3.50 from $2.80.

Let’s see what was behind the upgrade. 

Highlights from investor day 

The team at Navigator Global Investments reiterated that in FY25, ownership-adjusted AUM increased to US$27.7 billion, up 6% from the previous year.

The team at Ord Minnett also pointed out principals from partner firms referred glowingly to the company’s assorted value-add levers, in particular, the Blue Owl Business Services Platform. 

Blue Owl’s GP Strategic Capital platform offers minority equity and financing solutions to private capital managers.

Ord Minnett also pointed to organic growth and targeted acquisitions as key drivers of future growth. 

The combination of organic growth, supplemented by targeted US$80 million ($125 million) of strategic acquisitions from a large opportunity set, sees the business well-placed to achieve its 2030 target of a doubling of operating earnings (EBITDA) from 2025.

Other noted highlights included: 

• A strong endorsement of Navigator’s offering from the principals of the 1315 Healthcare and Waterfall AM fund managers.
• Because Navigator’s partners are highly diversified, aggregated performance fees are more consistent, and along with the high margins of alternative managers, this generates steady cash flows that investors are only just starting to value.
• The size of Navigator’s acquisition target set, i.e. firms in the US$1–US$10 billion range, is significant at more than 8,000.

Ultimately, this diversification can help smooth earnings, and paired with high margins, creates steady cash flows that Ord Minnett believes the market hasn’t fully valued until now.

This has positively influenced Ord Minnett’s view of the company moving forward. 

Earnings forecasts and target price adjusted 

Following the investor day, Ord Minnett bumped up its earnings forecasts and price target for this ASX financials stock. 

We made minor adjustments to our earnings forecasts post the investor day, notably our EBITDA estimate for FY26 has increased by 3% to $106.5m, after adjusting our performance fee estimates for Lighthouse Partners.

Based on the new price target from Ord Minnett, the broker now sees an upside of 19.05% for this financials stock. 

The post Top broker says this skyrocketing financials stock is still a buy! appeared first on The Motley Fool Australia.

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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 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.

ASX shares that offer a combination of growth and dividends can be an appealing option because they allow us to benefit from wealth-building share price growth and a pleasing passive income.

I’d usually write about a few particular businesses for an article like this, which I recently invested in. But other names can also tick the box, which I’ll highlight below.

Coincidentally, all three names are from the retail sector, which typically means a relatively low price/earnings (P/E) ratio and therefore a pleasing dividend yield. Let’s get into it.

JB Hi-Fi Ltd (ASX: JBH)

JB Hi-Fi is one of Australia’s leading electronic retailers, selling a wide variety of items including phones, TVs, tablets, laptops, smart wearables (such as watches and rings), headphones, video games, and more.

The country’s ongoing (and seemingly growing) love for electronic products is helping drive sales growth. In the first quarter of FY26, JB Hi-Fi Australia sales grew 6%, JB Hi-Fi New Zealand sales rose 39.3%, The Good Guys sales rose 2.5% and E&S sales increased 4.1%.

The ASX share has impressed by focusing on efficient costs and achieving a high level of sales for its store size.

Broker UBS predicts the company’s net profit could rise to $497 million and that the dividend per share could be solid at $3.40. That means it’s trading at 21x FY26’s estimated earnings with a potential grossed-up dividend yield of 5%, including franking credits.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a retailer that sells affordable jewellery to younger shoppers. It has stores across dozens of countries, giving it a large addressable market to expand into by opening more stores.

The recent trading update from the ASX share included solid numbers, in my opinion. For the first 20 weeks of FY26, total sales were up 26.2% year over year, with global comparable store sales growth of 3.5%. This is a fast rate of rising profit, which is supportive for long-term share price growth and dividends, in my view.

With a steadily climbing store count and the scale advantages that come with it, I believe the company is well-positioned to deliver long-term growth and dividends.

The forecast from analysts at UBS suggests the business is valued at 33x FY26’s estimated earnings, and the dividend per share could be hiked to 88 cents per share, translating into a dividend yield of almost 3%.

Premier Investments Ltd (ASX: PMV)

The third ASX share I want to tell you about is the owner of Peter Alexander, Smiggle, and a chunk of Breville Group Ltd (ASX: BRG) shares.

Smiggle has struggled in recent times following the onset of COVID-19, though its sales decline has shown signs of improving. I’m much more excited about the Peter Alexander business, which is showing a good sales performance in Australia, benefiting from new and enlarged stores.

In FY25, Peter Alexander sales grew by 7.7%, with 9.2% growth in the second half of FY25. I’m expecting ongoing growth in FY26, as well as a useful boost from the Peter Alexander expansion in the UK, with an initial focus on London.

According to the forecast from UBS, the Premier Investments share price is valued at 15x FY26’s estimated earnings with a possible grossed-up dividend yield of 6.2%, including franking credits.

The post 3 ASX shares that I think are buys for both growth and dividends appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Breville Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa and Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Orica Limited (ASX: ORI) is an ASX 200 stock that has already risen more than 40% in 2025. 

For context, the S&P/ASX 200 Financials (ASX: XFJ) index has risen by roughly 5% in the same span. 

Orica is a global manufacturer and supplier of explosives and blasting systems, primarily to the mining industry. 

It is the world’s number one supplier of commercial explosives. The company has operations across more than 100 countries and an approximate market share of around 28%.

Despite already rising significantly this year, the team at Ord Minnett have raised its price target on this ASX 200 stock. 

This comes after Orica posted its highest earnings before interest and tax (EBIT) in more than a decade.

So, how much further can this ASX 200 stock rise?

Here’s Ord Minnett’s view. 

Orica Limited benefiting from solid demand

In a note from the team at Ord Minnett yesterday, this ASX 200 stock met market expectations when it reported its highest earnings before interest and tax (EBIT) in more than a decade for FY25. 

According to the broker, this was underpinned by:

• Solid demand for its specialty chemicals and explosives products
• Tighter cost control
• A more balanced supply-demand equation in the ammonium nitrate market. 

The company, which added another $100 million to its share buyback program, guided to FY26 EBIT growth “across all segments.” This was buoyed by strong fundamentals in the gold and copper sectors. These sectors make up around half of its group sales. 

The ASX 200 stock also firmed up its divisional medium-term outlook as follows:

• Blasting solutions – EBIT growth is now expected above that of GDP “through the mining cycle”, supported by improved product mix, wider margins, earnings and technology benefits, up from previous guidance of just ‘growth’;

• Digital solutions – Growth in EBIT is now forecast to be in the mid-teens, up from low double-digits previously, as customer adoption accelerates and exploration activity increases; and
• Specialty chemicals – EBIT growth is now guided to be in the high single digits, up from mid-single digits previously, buoyed by strong mining sector activity, especially in the gold industry.

Target price upgrade for ASX 200 stock

Yesterday, the Orica share price rose almost 1.5% to close trading at $23.35. 

Based on the above guidance from Ord Minnett, the broker has now upgraded its price target to $26.00 and raised EPS estimates. 

It has also maintained its buy recommendation. 

This updated price target indicates an upside of 11.35%. 

Post the result, we have raised our EPS estimates by 2.1%, 2.3% and 8.5% for FY26, FY27 and FY28, respectively, to incorporate higher earnings assumptions for the specialty chemicals and blasting solutions divisions, which leads us to raise our target price to $26.00 from $23.00.

The post Ord Minnett just raised its price target on this soaring ASX 200 stock appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you want to build real wealth in the share market, one of the smartest strategies is to back high-quality ASX growth shares and give them time.

A decade may feel like an eternity in investing terms, but it is long enough for strong businesses to expand, compound earnings, and transform into serious wealth builders.

Right now, the ASX offers no shortage of growth opportunities, but three names that stand out are listed below. Here’s why these ASX shares could reward patient investors over the next 10 years:

Goodman Group (ASX: GMG)

Goodman could be one of the most compelling long-term growth stories on the ASX. It has evolved from an industrial property owner into a global infrastructure powerhouse.

Demand for high-quality industrial real estate remains robust, driven by e-commerce and supply-chain optimisation.

In addition, Goodman is increasingly positioned at the heart of the artificial intelligence boom. Its global pipeline includes data-centre-led developments requiring enormous amounts of power and specialised infrastructure, areas where it has both experience and first-mover advantage.

With an exceptional balance sheet, strong development partnerships and a track record of disciplined execution, Goodman is well placed to keep compounding earnings long into the next decade.

Siteminder Ltd (ASX: SDR)

Another ASX growth share that could be a buy for the long term is Siteminder.

Its hotel commerce platform helps accommodation providers manage bookings, pricing, distribution and payment systems from a single cloud-based solution. At the last count, it was generating more than 130 million reservations worth over $85 billion in revenue for its hotel customers each year.

But with many hotels still running outdated legacy systems, the shift toward modern, integrated software represents a long growth runway. In fact, management estimates it has a total addressable market (TAM) of 1 million hotels. This compares to its current customer base of approximately 50,000 properties.

So, with travel markets normalising and hotel operators improving digital investment, Siteminder is positioned for sustained recurring revenue expansion over the next decade.

Telix Pharmaceuticals Ltd (ASX: TLX)

Finally, Telix could be another ASX growth share to buy and hold. This biotech’s flagship cancer imaging product, Illuccix, has experienced strong global uptake, underpinning substantial revenue growth and validating the company’s radiopharmaceutical platform.

With multiple therapeutic candidates advancing through clinical development, including prostate, kidney, and brain cancer treatments, Telix has the potential to evolve into a major international oncology player.

Especially given how radiopharmaceuticals are emerging as one of the fastest-growing fields in cancer care, offering highly targeted treatment with fewer side effects.

The post Build significant wealth with these ASX growth shares over the next 10 years appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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Motley Fool contributor James Mickleboro has positions in Goodman Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, SiteMinder, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Goodman Group and Telix Pharmaceuticals. 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.

The list of corporations with a market capitalization of $1 trillion is short — but what about those that have hit $5 trillion? It’s hardly a list, as it’s composed of just one company, Nvidia.

However, several others aren’t too far behind. One of them is Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), the parent company of Google, which has a current market cap of $3.4 trillion. Will it be the next to hit $5 trillion? 

The case for Alphabet

Alphabet isn’t the corporation closest to the $5 trillion mark. Other than Nvidia, which has already achieved that milestone but is currently worth less than that, Microsoft and Apple are both ahead. The former has a market capitalization of $3.7 trillion, while the latter is valued at $3.9 trillion.

It’s also worth mentioning Amazon, which is currently trailing at $2.4 trillion. However, it may be able to catch up, provided it gains significant market value while its peers decline over the next couple of years.

There are good reasons to believe Alphabet could perform at least as well as Amazon for the foreseeable future. Both are leaders in the cloud computing market. Amazon has a larger market share, but Alphabet is growing sales in that division more quickly.

The rest of their businesses put Alphabet squarely in the lead for one reason — margins.

AMZN Revenue (Quarterly) data by YCharts.

Amazon generates higher sales, but Alphabet has higher profits and higher margins. Meanwhile, Alphabet still reigns supreme in search, despite challenges from artificial intelligence (AI) chatbots.

The company has made changes to address this issue, including an AI overview and an AI mode within its renowned search engine. Furthermore, Alphabet eliminated a major risk this year and avoided the worst outcome — that of losing its Chrome browser, a crucial part of its advertising empire — in its antitrust lawsuit. In my view, Alphabet has enough momentum to stay ahead of Amazon in the next couple of years.

What about Apple? Despite the iPhone maker’s recent better-than-expected financial results, it’s still facing significant threats.

The tariff situation is constantly evolving, and more news on that front could negatively impact Apple’s stock price, as it still manufactures most of its products in China, a country President Trump has targeted with tariffs. Alphabet is also already cashing in on its AI strategy, whereas Apple has been lagging behind its similarly sized tech peers.

Alphabet’s AI offerings through its cloud division, including its AI overviews and AI mode, as well as algorithms that increase engagement on YouTube — leading to higher ad revenue — are all important tailwinds for the company. So Alphabet could perform much better than Apple and beat the iPhone maker to a $5 trillion valuation.

What about Microsoft? Both companies are thriving in the cloud and AI spaces. Microsoft arguably has an edge over Alphabet in both. However, Alphabet appears more reasonably valued when considering traditional valuation metrics.

GOOG Price-to-Earnings Ratio (Forward) data by YCharts.

That’s one reason Alphabet could overtake even Microsoft to become the next $5 trillion company.

The more important question

Of course, outcomes are always hard to predict. A lot could happen in the next 12 months (or so) that would disrupt Alphabet’s path to a $5 trillion market cap, and one of its peers could get there before.

Will Alphabet perform well enough in the next couple of years to be the next company to reach this goal? That’s less important than determining whether the stock is worth holding for long-term investors, regardless of what happens in the short term. In that department, Alphabet looks like a great pick. It’s a leader in several industries, boasting massive growth prospects in digital advertising, cloud computing, AI, and streaming.

The tech giant also has a hand in innovative and potentially disruptive new sectors, such as self-driving vehicles. Further, Alphabet benefits from a strong competitive advantage, thanks to its brand name, switching costs in cloud computing, and network effects in internet search.

After eliminating a major antitrust threat, the company’s prospects look stronger than ever. All things considered, Alphabet appears to be a buy, even if it doesn’t become the next $5 trillion company. 

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

The post Will Alphabet be the world’s next $5 trillion stock? 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.

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Prosper Junior Bakiny has positions in Alphabet, Amazon, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Microsoft, 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 chasing reliable passive income, the Australian share market remains one of the best places in the world to look.

Plenty of homegrown ASX shares deliver consistent earnings, strong cash flow, and fully franked dividends.

If you are looking to build or top up an income-focused portfolio, here are five ASX dividend shares that could be worth considering:

Adairs Ltd (ASX: ADH)

Adairs is one of Australia’s leading homewares retailers. It has returned to form recently following a difficult retail cycle. With improved inventory management, stronger online performance and cost efficiencies flowing through, the business now sits in a healthier financial position. As consumer sentiment gradually improves, Adairs’ margin profile and cash generation should benefit, supporting its fully franked dividend. It currently trades with an estimated forward dividend yield of 6.8%.

BHP Group Ltd (ASX: BHP)

BHP is one of the most dependable dividend payers on the ASX. Its world-class mining assets generate enormous free cash flow through the cycle, allowing the company to continue rewarding shareholders even when commodity prices soften. Analysts expect BHP to maintain strong fully franked distributions over the coming years thanks to its low-cost operations and robust balance sheet. For example, the consensus estimate is for a 3.9% dividend yield in FY 2026.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to look at is Coles. It is a favourite among defensive income investors, and for good reason. This supermarket giant generates consistent earnings through all economic conditions, supported by steady demand for essential goods. In addition, its focus on automation, cost efficiencies, and private-label expansion is helping push margins higher, which bodes well for its future dividends. The market is expecting a fully franked 3.5% dividend yield this year.

Dicker Data Ltd (ASX: DDR)

Dicker Data is an IT hardware and software distributor with a long track record of steady revenue growth, resilient margins, and rising dividends. Its relationships with top-tier technology vendors, along with its focus on recurring product demand, have helped support consistent cash flow. As digital infrastructure spending remains strong across the corporate sector, Dicker Data is positioned to continue rewarding shareholders with fully franked dividends. It currently trades with an estimated forward dividend yield of 4.6%.

Telstra Group Ltd (ASX: TLS)

Finally, Telstra could be a core holding for income-focused investors. With strong demand for mobile services, expanding 5G adoption, and ongoing improvements to network efficiency, Telstra continues to deliver stable earnings. Management has outlined plans to lift dividends gradually through its Connected Future 30 strategy, supported by recurring cash flow from mobile, enterprise and infrastructure businesses. This is expected to underpin a 4.1% fully franked dividend yield in FY 2026.

The post Buy Telstra and these ASX dividend shares for passive income appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adairs. The Motley Fool Australia has positions in and has recommended Adairs, Dicker Data, and Telstra Group. 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.