Category: Stock Market

S&P/ASX 200 Index (ASX: XJO) tech stocks, including REA Group Ltd (ASX: REA) and TechnologyOne Ltd (ASX: TNE), have taken a beating this past year.

Indeed, while the ASX 200 has managed to push 2.8% higher over the last 12 months, the S&P/ASX All Technology Index (ASX: XTX) has plunged 27.5% over this same period.

(All price data as at late afternoon trade on Wednesday, 24 June.)

As for REA Group, at $131.55 each, shares in the online property listings company are down a sharp 43.9% in a year. REA shares also trade on a 2% fully-franked trailing dividend yield.

TechnologyOne shares have fared a little better, but not much.

At $28.05 apiece, shares in the ASX 200 software-as-a-service (SaaS) provider have dropped 30.5% in 12 months. TechnologyOne stock also trades on a 1.3% partly-franked trailing dividend yield.

While each company has faced its own issues, they’ve both gotten caught up in the so-called SaaSpocalypse. This has seen most SaaS stocks suffering steep declines amid investor concerns that artificial intelligence could replace a lot of the services these companies offer.

Then there’s rising interest rates, with the RBA hiking rates three times this year and the US Fed switching from an easing outlook to potential tightening as well.

That’s a particularly strong headwind for many tech stocks, including TechnologyOne and REA, as these are often priced with higher future earnings in mind. And as interest rates go up, so too does the present cost of investing in those future earnings.

But following the past year’s sell-off, a number of prominent fund managers are seeing value emerging in the ASX tech space.

REA and TechnologyOne shares tipped to thrive in an AI world

Solaris portfolio manager Damien Keune expects that REA shares won’t be taken out by the rise of artificial intelligence.

“The AI revolution might change how buyers search for properties, but the houses still need to be listed somewhere,” Keune said, quoted by the Australian Financial Review.

According to Keune:

REA has lived through many property cycles, and they’ve always managed to report positive earnings growth because they’re so embedded in what is an emotionally charged process of buying and selling a house.

And Ten Cap portfolio manager Jun Bei Liu said she is bullish on TechnologyOne shares.

Liu noted:

ASX tech is becoming interesting again. The ones we like are those that still have a long runway for revenue growth, recurring income, and operating leverage, even in an AI world.

The post Why these top fundies are buying REA and TechnologyOne shares appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 shares I’d buy for powerful growth
• 3 buy-rated ASX tech shares with bright futures
• Down 16%: What on earth is going on with TechnologyOne shares?
• These ASX 200 shares are down 40% to 65% and could be bargain buys
• REA shares fall 43% to a three-year low. Is it time to buy?

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

The CSL Ltd (ASX: CSL) share price has experienced significant volatility over the last few years following the COVID-19 pandemic. The last year has been challenging for shareholders, as the chart below shows.

The ASX biotech share has a diversified earnings business, yet many of them are facing a challenging operating environment. CSL operates in areas like immunoglobulin products, albumin, HEMGENIX, iron deficiency treatment, plasma and recombinant therapies, and vaccines.

Let’s look at the performance of the CSL share price and what would have happened to $10,000.

A heavy decline for the ASX biotech share

In the past year, the CSL share price has more than halved (it has dropped 51.6%), and it’s down 57% from August 2025.

With such a painful drop, a shareholder who had $10,000 a year ago now only has an investment that’s worth just over $4,800. A little bit of dividend income may have helped offset a small part of that decline, but investors are certainly facing big losses.

Its latest update demonstrated the problems it’s experiencing.

The company now expects FY26 revenue to be around $15.2 billion, while underlying net profit (NPATA) – excluding restructuring costs and impairments – could be around $3.1 billion. Both of those guided figures are both on a constant currency basis.

There were a few different negatives in that update.

In US immunoglobulin, while demand is growing in the mid-to-high-single-digits, consistent with CSL’s expectations, reported revenue will reflect CSL’s normalisation of channel inventory, resulting in approximately $300 million of revenue being impacted.

Additionally, with its albumin in China, while CSL’s share has expanded and volumes have stabilised, market value has declined, resulting in an expected venue impact of approximately $200 million.

CSL also said that impacts from the Middle East conflict, revised HEMGENIX growth and competition in iron collectively resulted in an expected revenue impact of approximately $150 million.  

But, on the positive side of things, CSL continues to expect revenue growth in the second half of FY26 for CSL Behring, supported by “underlying demand, ongoing commercial execution and benefits from operational and transformation initiatives”.

Finally, the financial performance of the vaccine business (Seqirus) in FY26 is expected to be “moderately stronger than previously anticipated”.

It said it expects to recognise approximately $5 billion of impairments across FY26 and FY27.

Is the CSL share price a buy?

Analysts are still feeling somewhat cautious on the business, despite the much lower valuation.

According to CMC Invest, there have been 11 ratings on the business in the last three months, with three buy ratings and eight hold ratings.

The average price target on the CSL share price is $135.28. That implies a possible rise of 16% in the next year.

Despite such a large decline, little recovery is expected, so there could be better opportunities out there.

The post $10,000 invested in CSL shares 12 months ago is now worth… appeared first on The Motley Fool Australia.

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• New to ASX shares? Avoid these 3 beginner mistakes
• Down 54%: What should I do with my CSL shares now?
• Is this broker right about CSL shares?
• 3 cheap ASX shares that could be hiding in plain sight

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

A new month is on the horizon, so what better time to consider making some investments.

If exchange traded funds (ETFs) are on your shopping list and you have $5,000 to invest, then it could be worth checking out these three ASX ETFs listed below. Here’s what they offer:

Betashares S&P/ASX Australian Technology ETF (ASX: ATEC)

The first ASX ETF to look at is the Betashares S&P/ASX Australian Technology ETF.

This fund gives investors exposure to Australia’s technology sector in one trade.

That makes it quite different from many local share market funds, which are often dominated by banks, miners, supermarkets, and large industrial companies.

The Betashares S&P/ASX Australian Technology ETF opens the door to businesses that are helping digitise the economy. That can include software companies, online marketplaces, data-driven businesses, and technology-enabled platforms.

Australia has produced several impressive technology companies, and the market could produce more as businesses continue shifting processes, payments, data, and customer interactions online.

For investors who want local exposure but do not want another fund shaped mainly by traditional blue chips, it could offer something different.

VanEck Global Defence ETF (ASX: DFND)

Another ASX ETF that could be worth considering is the VanEck Global Defence ETF.

This fund gives investors exposure to listed global companies involved in the defence industry.

The investment case here is not built around a short-term market fad. Defence spending is being shaped by geopolitical tension, military modernisation, cybersecurity needs, supply chain security, and the push by governments to strengthen national capability.

That can create long-term demand for companies involved in aerospace, defence systems, communications, surveillance, naval technology, and related equipment.

This is a more specialised ETF, so it should be expected to move differently from a broad market fund.

As a result, it may appeal to investors who believe defence will remain a strategic priority for governments over the next decade. However, it also comes with sector concentration risk, as performance will be tied closely to spending cycles, contracts, policy decisions, and global security conditions.

VanEck MSCI International Quality ETF (ASX: QUAL)

A third ASX ETF to dig deeper into is the VanEck MSCI International Quality ETF.

This fund is designed for investors who want global exposure but with a quality filter.

It focuses on international companies with stronger financial characteristics. That can mean businesses with solid profitability, healthier balance sheets, and more dependable earnings profiles.

That quality screen can be useful when markets are uncertain. Companies with strong financial foundations often have more flexibility. They can keep investing, protect margins, and manage harder conditions without being forced into short-term decisions.

All in all, it could be a strong option for investors wanting international diversification with a quality focus.

The post Where to invest $5,000 in ASX ETFs in July appeared first on The Motley Fool Australia.

More reading

• 3 amazing tech ETFs to buy and hold forever
• 10 amazing ASX ETFs for the next decade
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• If the ASX 200 rallies in the back half of the year these sectors could be portfolio winners
• 3 ASX ETFs for investors who want global winners

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.

One of the best things about Australia’s wealth and retirement system is system is superannuation, which offers a lower tax rate compared to someone working full-time. Superannuation is great for passive income, whether that’s in retirement or building wealth towards retirement.

If I were investing $8,000 into superannuation, I’d look for ideas that offer long-term growth potential, while still providing a high dividend yield. Investing in superannuation should mean we can put the money to work for many years, giving it more time for compounding.

I’ll run through a couple of investments that I think could be excellent long-term buys. If an investor had $8,000 to invest (or more), I’d definitely recommend the following ideas.

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

I think Soul Patts may be the very best idea for superannuation investing.

The investment house has the ASX record for the longest streak of annual dividend increases – it has grown its regular payout every year for 28 years in a row!

If I were investing in a business for passive income, I’d want to choose a name I’d be extremely confident is likely to pay more next year. I wouldn’t want a payout cut when I’m relying on that income. Plus, the regular dividend growth helps offset (and outpace) inflation.

Another benefit of Soul Patts is that it has a diversified portfolio across a number of industries like energy, resources, telecommunications, property, swimming schools, agriculture and electrification, among many others.

With steadily growing investment cash flow, Soul Patts can fund larger dividends to investors. It regularly makes new investments too, helping its portfolio grow in value, which is a tailwind for the Soul Patts share price.

I think it has a solid starting dividend yield, which can rise over time. Its current grossed-up dividend yield, including franking credits, is 3.5%. I believe that’s a good starting point for superannuation.

WCM Quality Global Growth Fund (ASX: WCMQ)

Another ASX investment I really want to highlight is this exchange-traded fund (ETF) which gives investors exposure to a compelling portfolio of international shares.

There are a few very appealing index funds that have low fees while providing exposure to strong global companies. Many of these ETFs are also becoming increasingly concentrated on just a few large US tech shares. That has both its positives (great businesses) and negatives (concentration risk).

However, the WCMQ ETF looks to invest in a portfolio of between 20 to 40 high-quality stocks that have expanding economic moats. In other words, their competitive advantages are getting stronger as time goes on. Additionally, the WCM investment team wants to see that the business has a corporate culture that can support improvements of the competitive advantages.

The fund as returned an average of 15.1% per year since August 2018 and it targets a minimum annualised cash yield of 5% per year.

These two investments, along with other ASX shares, could be an excellent buy for the long-term in superannuation.

The post How to invest $8,000 for passive income in superannuation? appeared first on The Motley Fool Australia.

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• Want passive income? These 3 ASX dividend stocks could deliver
• How much is needed in superannuation to target an $11,000 monthly passive income?
• Here are the top 10 ASX 200 shares today
• I’d buy this ASX share because it offers almost everything an investor could want
• Term deposits or ASX dividend shares as the RBA holds?

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited and Wcm Quality Global Growth Fund. 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 Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It is easy to assume a falling share price means a deteriorating business.

With Life360 Inc (ASX: 360) shares, that assumption would be wrong.

Life360 shares are down 29% in the calendar year to date. Shares have been caught up in the broader rotation away from high-multiple ASX technology names.

Yet Christopher Watt from Bell Potter Securities has a buy rating on this ASX 200 tech share, and his reasoning is worth understanding before writing this one off as just another falling growth stock.

Why Life360 shares have lagged the business

Life360 provides a mobile family safety app used to track location, monitor driving behaviour, and provide emergency assistance for families.

The business itself has not been struggling.

Today, Life360 trades on a price-to-earnings multiple of just 28x. This multiple looks low for a company with this kind of subscriber growth trajectory.

This gap between a falling share price and a growing underlying business is the kind of situation income and growth investors are trained to look past the headlines for.

What is actually driving subscriber and revenue growth

Life360 has been steadily expanding its monetisation strategy beyond its original subscription model.

The company has diversified into advertising revenue and data partnerships, reducing its reliance on subscription growth alone to drive the top line.

This diversification gives Life360 multiple, less correlated revenue streams. This is a structural advantage over single-product software companies that are entirely dependent on subscriber growth to grow revenue.

Life360’s advertising revenue grew 329% year-on-year to US$19.7 million in Q1 2026 following the Nativo acquisition. Encouragingly, core subscription revenue grew a separate 36% over the same period.

A broader monthly active user base, paired with a growing advertising revenue stream layered on top, has kept underlying fundamentals improving even as the share price has fallen.

Why Bell Potter sees a buy for Life360 shares

Bell Potter’s buy rating reflects a view that the market is mispricing Life360 relative to its growth trajectory and improving monetisation.

When a stock has been swept up in sector-wide selling pressure rather than company-specific bad news, the eventual repricing, once sentiment turns, can be sharp.

This is the bet implicit in Bell Potter’s rating.

The risks worth understanding

Life360 operates in a competitive market.

Major technology platforms, including Apple and Google, have built or could build competing location-sharing features directly into their own ecosystems.

Life360’s ability to keep growing depends on continuing to out-innovate larger competitors with greater resources.

Furthermore, ASX technology shares as a group remain sensitive to interest rate expectations, meaning Life360 shares could continue to move with broader sector sentiment regardless of how the underlying business performs in the near term.

Foolish takeaway

Life360 shares are down 29% in 2026, but the underlying business tells a different story from the share price chart.

A reasonable earnings multiple, a diversifying revenue base, and a buy rating from an analyst willing to look past the recent selling all point in the same direction.

For investors who believe the sector-wide tech sell-off has been indiscriminate rather than company-specific, Life360 is a name worth understanding in depth before dismissing it on price action alone.

The post Why this analyst rates Life360 shares a buy right now appeared first on The Motley Fool Australia.

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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 positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If income were the goal, I would want ASX dividend shares connected to assets people keep using.

That is why infrastructure can be a useful place to look. The best assets are difficult to replace, provide essential services, and can keep generating cash flow through different economic conditions.

Two ASX dividend shares I would consider buying are Transurban Group (ASX: TCL) and APA Group (ASX: APA).

Transurban Group shares

I think Transurban is one of the most interesting income shares on the ASX.

The company owns and operates toll roads in major cities, including Sydney, Melbourne, Brisbane, Greater Washington, and Montreal. These are not ordinary roads. They are important transport corridors in places where congestion, population growth, and time savings can make road access valuable.

That gives Transurban a rare type of asset base. A good toll road can remain useful for decades. It can be expensive to build, politically hard to approve, and difficult to duplicate once a city has grown around it. That scarcity is part of the investment appeal.

For income investors, Transurban offers exposure to cash flows linked to road usage. Traffic volumes can move with economic activity, work patterns, and cost-of-living pressures, but major urban roads can still sit at the centre of how people and goods move around.

The company is also expected to pay a distribution of 69 cents per security in FY26. That gives it a 4.5% forward dividend yield, which I think is attractive for investors looking for passive income.

Of course, Transurban is capital intensive. Debt, interest rates, regulation, traffic assumptions, and major project costs all need watching. But I think the company’s portfolio of toll road assets gives it a strong foundation for long-term income.

APA Group shares

APA is another ASX dividend share I would be happy to consider for income.

The company owns and operates energy infrastructure across Australia. Its assets include gas pipelines, processing and storage facilities, electricity transmission infrastructure, power generation, batteries, and renewable energy assets.

I think the appeal is the role these assets play in the energy system. Energy demand does not disappear just because the economy slows. Households, businesses, hospitals, factories, data centres, and transport networks all need reliable energy. APA’s infrastructure helps move and support that energy supply.

The company also sits in an interesting position as Australia’s energy system changes. Gas, firming power, storage, renewable generation, and transmission could all have a role to play as the country tries to balance reliability, affordability, and lower emissions.

For income investors, APA’s distributions are obviously a key attraction. The business has guided to a 58 cents per security distribution in FY26, which provides a solid 5.5% yield at recent prices.

Infrastructure owners can face pressure from debt costs, regulation, project spending, and changing energy policy. Still, I think APA’s long-lived assets and importance to Australia’s energy system make it a useful passive income candidate.

Foolish takeaway

A strong income portfolio should have cash flow with structure behind it.

That is what I like about Transurban and APA. One helps people and goods move through major cities. The other helps energy move through the economy.

There will be periods when interest rates, regulation, or market sentiment put pressure on infrastructure shares. That comes with the territory. But if the aim is to build passive income from assets with real-world importance, I think these two ASX dividend shares are worth a close look.

The post 2 ASX dividend shares I’d buy for passive income that can last appeared first on The Motley Fool Australia.

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

The team at Morgans has been busy looking at several ASX shares this week.

Is it bullish, bearish, or lukewarm on these shares? Let’s find out:

Amcor PLC (ASX: AMC)

Morgans is positive on this packaging giant but not quite enough for a buy rating.

It has put an accumulate rating and $65.40 price target on the ASX share. Based on its current share price of $58.58, this implies potential upside of approximately 12% for investors. It commented:

Following its merger with Berry Global in April 2025, AMC identified a non-core portfolio of ~US$2.5bn in revenue. These lower-growth or lower-margin businesses where AMC lacks scale or leadership positions are expected to be divested over time via cash sales or joint ventures/partnerships.

While there is a range of scenarios that can play out, using conservative assumptions, we estimate the combined non-core portfolio could be worth ~US$1.8bn. To date, AMC has reached agreements to sell six businesses for a combined value of ~US$500m. AMC plans to use proceeds from non-core asset sales to reduce leverage, which stood at 3.8x at the end of 3Q26. While management expects leverage to end FY26 at 3.4-3.5x, the stretched balance sheet remains a key investor concern. Our analysis indicates a strong negative relationship (correlation coefficient -0.76) between AMC’s leverage and its 1-year forward PE multiple. We therefore expect a reduction in leverage to support an improvement in AMC’s PE multiple over time.

Beach Energy Ltd (ASX: BPT)

This ASX energy share has been given a sell rating by Morgans this week with a reduced price target of 81 cents. This compares to its current share price of 86 cents.

The broker is bearish due to its belief that the company could fall short of expectations. It said:

We mark-to-market our second half estimates for weaker spot gas prices, while also trimming our Waitsia output forecasts for FY26-28 on continuing struggles. After downgrading our Q4 estimates for daily production rates, we see potential for BPT to fall just short of its FY27 group production guidance. While BPT’s share price has already been under pressure, its earnings outlook has declined at a faster rate, with its forward EV/EBITDA actually rising. We downgrade our recommendation to Sell (from Hold) with a revised target price of A$0.81 (was A$1.10).

Reliance Worldwide Corporation Ltd (ASX: RWC)

Although this plumbing parts company’s shares trade on undemanding multiples, it isn’t quite enough for anything more than a hold rating at present with a price target of $3.60. This is a touch lower than its current share price of $3.72.

The broker was positive on its decision to close its Australian brass operations. It said:

RWC has announced plans to close its Australian brass casting, forging and machining operations, along with several smaller sites, as part of its ongoing global footprint rationalisation program. We think the decision makes sense given RWC’s reduced reliance on Australian-sourced brass in recent years. Annualised net savings are expected to be ~US$9m by the end of FY27, with benefits in the Americas more than offsetting an adverse impact on APAC earnings. One-off costs of US$100-110m (including ~US$5m cash) are expected to be incurred in FY26.

We make no changes to underlying assumptions, with changes to earnings forecasts reflecting the one-off costs in FY26 and net benefits expected across FY27 and FY28. RWC’s valuation remains undemanding (12.8x FY27F PE) and recent developments related to the Middle East conflict should be positive for the global macroeconomic outlook. However, US housing demand remains subdued with 30-year fixed mortgage rates still around 6.5%. The timing of a recovery in housing activity remains uncertain and we therefore maintain our HOLD rating.

The post 1 ASX share to accumulate, one to hold, and one to sell appeared first on The Motley Fool Australia.

More reading

• How much do I need in my superannuation to get $1000 per week in passive income?
• Here are the top 10 ASX 200 shares today
• Why Aurelia Metals, Beach Energy, IAG, and Rio Tinto shares are falling today
• 5 things to watch on the ASX 200 on Wednesday
• Buy, hold, sell: How does Morgans rate these ASX shares?

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

Building a portfolio does not need to be difficult.

With the right mix of ASX exchange traded funds (ETFs), investors can get broad exposure to Australian shares, global markets, and selected quality companies.

Here is one simple way to do it with just three investments.

iShares S&P 500 ETF (ASX: IVV)

The first ASX ETF to consider as part of this portfolio is the iShares S&P 500 ETF.

This fund can act as the global growth engine of the portfolio. It gives investors exposure to 500 large companies listed in the United States, which remains the deepest and most influential share market in the world.

That means the fund is connected to many of the businesses setting the pace in technology, healthcare, consumer products, financial services, industrials, and communication services. This includes Apple (NASDAQ: AAPL) and NVIDIA (NASDAQ: NVDA).

A key attraction of this fund is that it does not require investors to decide which US giant will win next. It spreads capital across a large group of market leaders and allows the portfolio to participate as corporate America keeps adapting, innovating, and expanding.

Vanguard Australian Shares Index ETF (ASX: VAS)

The Vanguard Australian Shares Index ETF could be another good addition to this portfolio.

It brings the portfolio back home. The fund provides exposure to a large basket of Australian shares, including banking giants, mining behemoths, healthcare companies, retailers, property groups, infrastructure businesses, and industrial names.

The Vanguard Australian Shares Index ETF also provides a source of income, as many Australian companies have a long history of paying dividends.

This gives the portfolio a different shape from a purely global strategy. It adds exposure to Australian profits, Australian dividends, and the domestic economy, while still spreading risk across a broad group of local companies.

VanEck Morningstar International Wide Moat ETF (ASX: GOAT)

The final component of this portfolio could be the VanEck Morningstar International Wide Moat ETF.

This ASX ETF can add a more selective layer to the portfolio. It looks beyond Australia and focuses on international companies that are judged to have strong competitive positions and attractive valuations.

That makes it different from a standard index fund. Instead of simply following the biggest companies by market value, it tries to find businesses with advantages that may help protect profits over time. Those advantages can come from strong brands, valuable intellectual property, cost benefits, customer loyalty, or products that are difficult to replace.

This can give the portfolio exposure to companies that may be able to defend their market positions through changing conditions. It also helps broaden the portfolio beyond the Australian market and the US-heavy exposure investors may already get through IVV.

Foolish takeaway

It might be simple, but combining the IVV, VAS, and GOAT ETFs could give investors a winning three-ETF portfolio with global scale, local exposure, dividend potential, and a selective quality tilt.

The post How to build a winning ASX portfolio with just 3 investments 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 iShares S&P 500 ETF. The Motley Fool Australia has recommended VanEck Morningstar International Wide Moat ETF and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Last week was a tough week for BHP shares.

BHP Group Ltd (ASX: BHP) has spent two decades trying to prove it can be more than an iron ore and copper company.

Jansen, its giant potash project in Saskatchewan, Canada, is the clearest test of that ambition.

This week, that test got harder.

BHP shares fell 3.20% on Friday to $62.96 after the company revealed another cost blowout at Jansen. The stock has now fallen approximately 8% from its 52-week and record high.

What actually happened at Jansen

BHP completed a detailed review of the cost and schedule estimates for Jansen Stage 2, and the news was not good.

The company now expects Stage 2 to cost between US$4.9 billion and US$5.4 billion more than previously estimated. This is on top of an original sanctioned budget of US$4.9 billion approved back in October 2023.

BHP will recognise an impairment charge of about US$2.3 billion against Jansen Stage 2 as part of its FY26 results.

First production from Stage 2 is now targeted for FY2031, a delay from the originally planned 2029 start.

Stage 1, separately, remains on track for first production in FY2027, though its cost estimate has also crept higher since being sanctioned.

BHP has confirmed it will provide a further update on Stage 1 timing and spending before 31 December 2026.

Why the market reacted so sharply

An impairment charge of this size is, by definition, a non-cash accounting adjustment rather than an immediate cash outflow.

But it is also a credibility issue.

This is not the first time Jansen’s costs have risen beyond what was originally promised. Each successive upward revision makes the market more sceptical of management’s next set of project projections.

BHP shares had already gained around 35% since the start of 2026. This has left little margin for disappointment once the news landed.

Does this change the long-term investment case for BHP shares?

Jansen represents BHP’s attempt to diversify beyond iron ore and copper into a third major commodity pillar tied to global food security and agricultural productivity.

Management still sees potash as an important long-term growth area despite the cost overrun. The company has explicitly framed this week’s update as a matter of timing and cost rather than an abandonment of the underlying strategy.

That framing matters for how investors should weigh the news. The setback is real, but BHP is not signalling that it is walking away from potash altogether.

Why BHP shares could still be a buy

The case for BHP shares has never rested primarily on Jansen.

BHP’s growing copper exposure, combined with rising global demand for electricity-intensive infrastructure, including data centres, electric vehicles, and renewable energy, remains the stronger near-term driver of the company’s earnings and dividend.

The current pullback to approximately 9% below the record high gives investors a more reasonable entry point into a business whose iron ore cash generation and copper growth trajectory have not been altered by this week’s news.

Jansen still adds a longer-term potash option, even with a delayed timeline, rather than removing a pillar of the investment case entirely.

Foolish takeaway

BHP’s bet beyond iron ore just got more expensive and will take longer to pay off than originally promised.

That is a setback, and the market’s sharp reaction reflects real concern about capital discipline at BHP.

But the core reasons to own BHP shares: scale, a strong iron ore cash engine, and growing copper exposure tied to the AI and electrification megatrend, remain firmly in place.

For investors who can accept that mega-projects rarely run exactly to plan, the post-Jansen pullback may offer a reasonable entry point rather than a reason to walk away.

The post BHP’s bet beyond iron ore just hit a snag. Are BHP shares still a buy? appeared first on The Motley Fool Australia.

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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.

When it comes to investing in the lithium industry, PLS Group Ltd (ASX: PLS) shares are the go-to for many investors.

And while it is undoubtedly one of the highest-quality lithium miners in the world, a strong gain over the past 12 months could mean that upside is limited from here.

That certainly isn’t the case for the ASX lithium share in this article according to the team at Bell Potter, with the broker suggesting that it could more than double in value.

Which ASX lithium share?

The share that Bell Potter is bullish on is lithium developer Ioneer Ltd (ASX: INR).

It is the owner of the Rhyolite Ridge lithium-boron project in Nevada, USA.

Bell Potter notes that the project is designed to produce +24ktpa lithium carbonate equivalent and +135ktpa boric acid over the first 25 years.

However, it points out that ore reserves suggest that it could support an 82-year project life at this initial production rate.

Bell Potter was pleased to see that the South Korean government and Hyundai Engineering have taken a shine to the project and has signed non-binding letters of intent this week. It said:

While non-binding, the calibre and commentary from these counterparties provides strong endorsement of INR’s project development pathway. INR is currently running a Strategic Partnering Process to introduce new project-level equity funding in support of a Final Investment Decision at Rhyolite Ridge. It is reasonable to assume that the KIND, MOLIT and Hyundai LOIs are part of this process.

The Rhyolite Ridge project is fully permitted; an October 2025 project economic update outlined potential production of 27.8ktpa lithium hydroxide and 135.5ktpa boric acid at a capital cost of US$1.7b and with a lithium AISC of US$4,628/t LCE (net of boron co-product credits). The project is also backed by a US$996m US Department of Energy concessional loan. With cash of US$62m and no debt (31 March 2026), INR is fully funded to FID.

Should you invest?

According to the note, the broker has retained its speculative buy rating on the ASX lithium share with a slightly improved price target of 40 cents (from 39 cents).

Based on its current share price of 15.5 cents, this implies potential upside of approximately 160% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

Rhyolite Ridge is strategically important as a fully permitted, near-term and US-located source of lithium and boron supply. Both lithium and boron are USGS-designated critical minerals. Rhyolite Ridge received development approval in October 2024 and engineering design is 70% complete. Lithium markets have recently strengthened, and we expect continued growth in underlying demand and limited new sources of supply will support lithium chemicals prices over the medium to long term. Our INR valuation is $0.40/sh.

Key INR value catalysts are the outcomes of the Strategic Partnering Process in the lead-up to a Final Investment Decision and commencement of development, all expected in 2H 2026.

The post Forget PLS shares, this US-focused ASX lithium share could rise 100%+ appeared first on The Motley Fool Australia.

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