Category: Stock Market

GrainCorp Ltd (ASX: GNC) shares have had a tough time in 2026.

Since the start of the year, the ASX 200 stock has lost almost a third of its value.

Is this a buying opportunity for investors? Let’s see what analysts at Bell Potter are saying about the grain exporter’s shares following their decline.

What is the broker saying?

Bell Potter notes that recent industry data has been released and it isn’t looking favourable for GrainCorp. It said:

The ABARE Jun’26 east coast crop forecast implies a -27% YoY contraction in the east coast winter crop and a -19% YoY contraction in the southeastern canola crop.

Winter East coast crop forecast: ABARE has issued a June 2026-27 east coast winter crop forecast of 23.8mt (vs. 27.2mt in the pcp and a R5YA of 24.2mt). The forecast is predicated on an acreage forecast of 10,370mHa (vs. Jun’24 of 12.0mHa and R5YA of 11.5mHa) and a yield forecast of 2.29t/Ha (vs. Jun’25 of 2.3t/Ha). The acreage forecast is a 7yr low and the yield projection is broadly comparable with the outcome experienced in similar years when the acreage was in the 10,000- 11,000mHa range.

However, the broker highlights that this crop forecast is notoriously unreliable. It explains:

The June forecast is historically the least accurate, on average it has underestimated the final crop size by ~5% over FY11-25 and in the past 5years has underestimated the final crop outcome by ~19%.

Nevertheless, it has still reduced its profit expectations. The broker adds:

NPAT changes are -1% in FY26e and -15% in FY27e reflecting lower crop receipts and lower canola crush volumes, offset in part by stronger crush margins. Our target price is $5.20ps (prev. $5.90ps) reflecting a view that with a drier bias GNC is likely to trade at a discounted multiple.

Is this ASX 200 stock a buy, hold, or sell?

According to the note, Bell Potter has retained its hold rating on GrainCorp’s shares with a reduced price target of $5.20.

This is only marginally higher than the current share price of $5.05.

Commenting on its investment thesis, Bell Potter said:

In the June report we noted a seven year low in east coast winter crop acreage sown and a seven year low in southeastern (VIC/NSW/SA) canola production. Key months are now the August-September window, which are crucial for yield development in a potentially dryer backdrop.

The post Down 30%: Does Bell Potter rate this ASX 200 stock as a buy, hold, or sell? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 4 ASX 200 shares tipped to rise 30% or more in the year ahead
• Buy, hold, sell: Australian Agricultural Company, Graincorp, Ricegrowers shares
• Here are the top 10 ASX 200 shares today
• ASX 200 consumer staples shares outperformed again last week

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.

A severe sector-wide downturn has put ASX healthcare 200 shares under significant pressure this year driven by macroeconomic pressures, a weaker US dollar, rising inflation, higher cost-of-living, and regulatory uncertainty.

The S&P/ASX 200 Health Care Index (ASX: XHJ) is the worst performing sector by far in 2026 and has significantly unperformed the broader index. The decrease has pushed many major ASX healthcare companies to multi-year lows.

At the time of writing, the ASX 200 Health Care Index is down around 34% for the year to date and 47% lower than 12 months ago.

For context, the wider S&P/ASX 200 Index (ASX: XJO) is largely flat for the year to date and 3% higher than this time last year.

Sector wide declines might look concerning, but I think it presents a great opportunity for investors to buy into ASX 200 healthcare shares for cheap.

Here are three stocks that I’d buy today, while they’re on sale.

ResMed Inc (ASX: RMD)

ResMed shares have fallen to a two-year low this week and are down 28% for the year so far. The global leader in sleep health was swept up in the general sector-wide ASX healthcare sell-off. Its latest third-quarter earnings update also came in softer than expected, which didn’t help lessen declining sentiment. But I think the ASX 200 healthcare share is now oversold and below fair value. Sleep disorders require long-term management, and as a global leader, ResMed has a powerful position in a large (and growing) market. According to Market Index data, brokers have a strong buy consensus on ResMed shares and tip a 67% upside to an average $43.38 target price, at the time of writing.

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH)

Fisher & Paykel shares have rebounded around 14% since hitting a two-year low in mid-May, but the shares have still got some more room to run before they return to 2025-levels. At the time of writing, the shares are still down around 6% for the year to date and they’re 11% lower than 12 months ago. Investors have been buying this medical device company’s shares following the release of its strong FY26 result last month, which showed investors that the business is sound. The ASX 200 healthcare company reported a 14% increase in total operating revenue and a 24% increase in NPAT. Brokers rate the shares as a strong buy and tip a potential 21% upside to an average $36.90 target price, at the time of writing.

Pro Medicus Ltd (ASX: PME)

Pro Medicus shares have rebounded around 21% since the health imaging technology company announced a new contract win. In late May, the ASX 200 healthcare company confirmed it has signed a five-year, A$28 million contract renewal with Allegheny Health Network (AHN). The increase has helped recoup some, but not all losses shed by the company over the past year. Pro Medics shares are still around 28% lower for the year to date and 43% below their trading price this time last year. The company’s US subsidiary also won two $40 million five-year contract renewals back in early March. It looks like we’ll see plenty more out of the company over the next 12 months, too. The majority of brokers rate the ASX 200 healthcare shares as a strong buy and tip an 18% upside to an average $188.51 target price, at the time of writing.

The post 3 ASX 200 healthcare shares to buy while they’re on sale appeared first on The Motley Fool Australia.

More reading

• Why AI is making Pro Medicus shares a once-in-a-generation buy
• Here are the top 10 ASX 200 shares today
• Which tech share is the ‘most defensively positioned software business’ on the ASX?
• Are CSL and ResMed shares buys at 52-week lows?
• Why DroneShield, Pro Medicus, SRG Global, and Woodside shares are charging higher today

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

The Ingenia Communities Group (ASX: INA) share price is in focus as the company reaffirmed it expects to deliver its FY26 result at the top of its guidance, forecasting 10%–15% EBIT growth and a 5%–10% rise in underlying EPS on FY25. It’s also expanding its development pipeline, with over 3,400 new home sites acquired or secured in the second half.

What did Ingenia Communities report?

• FY26 settlements anticipated in the range of 560 to 575 homes, including joint ventures
• EBIT guidance for FY26 set at $180.5 to $188.7 million, up 10% to 15% on FY25
• Underlying earnings per share targeted at 32.5c to 34.0c, representing 5% to 10% growth
• Development pipeline expanded to over 3,400 potential home sites acquired or secured in 2H26
• Recurring income and occupancy remain high across lifestyle, rental, and gardens assets

What else do investors need to know?

Ingenia Communities is continuing to benefit from stable, annuity-style cash flows, drawing on its established land lease and rental homes, and cash from tourism operations. Year-to-date FY26 sales are up 30% on the prior period, while there are 428 deposits and contracts on hand, supporting both this year’s and future settlements.

The group is also selling lower-growth assets to free up around $140 million in capital, which will be redeployed to support further development. Construction programs remain on schedule, with new projects started at sites across NSW, Victoria, and Queensland.

What did Ingenia Communities management say?

CEO John Carfi said:

The Group is well positioned to deliver at the top of guidance and to navigate changing market conditions. The business is underpinned by a strong and stable revenue base from our established land lease and rental communities and resilient holidays performance. Long-term demand drivers – an ageing population, lack of housing supply and desire for affordable living – remain firmly in place, with the commencement of new projects providing a runway for settlements growth.

A sale process for lower growth assets has commenced and is expected to release approximately $140 million in capital over the next six months, with a further update to be provided at the upcoming result.

What’s next for Ingenia Communities?

Ingenia expects to finalise the sale of non-core assets in the next six months, freeing funds to accelerate development and target ongoing growth. Its 5-Year Plan aims to achieve 10–15% compound annual growth in settlements to FY29, supported by a large pipeline of home sites and ongoing high occupancy across the portfolio.

Management remains confident in stable demand drivers and will provide further detail with its full FY26 results due 25 August 2026.

Ingenia Communities share price snapshot

Over the past 12 months, Ingenia Communities shares have declined 32%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post Ingenia Communities affirms strong FY26 outlook and development pipeline appeared first on The Motley Fool Australia.

More reading

• If I could buy just 1 ASX stock in June, it’d be this cheap ASX 200 share
• Superloop upgrades FY26 earnings guidance and unveils new strategy
• Megaport secures 4 new AI contracts, announces capital raise
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The All Ordinaries Index (ASX: XAO) is up 0.3% today, with plenty of help from this surging ASX All Ords gold stock.

The outperforming stock in question is Medallion Metals Ltd (ASX: MM8).

Medallion Metals shares closed yesterday trading for 40.5 cents. In early morning trade on Wednesday, shares are changing hands for 43 cents apiece, up 6.2%.

Here’s what’s grabbing investor interest.

ASX All Ords gold stock jumps on historic drill results

Medallion Metals shares are charging higher after the miner announced more high-grade gold results from the Lounge Lizard gold deposit, located within its Forrestania Gold Project in Western Australia.

The latest results stem from the ASX All Ords gold stock’s ongoing evaluation of previously unreleased historical drilling at the deposit, conducted in the 1990s.

Citing the two rounds of outstanding high-grade results from Lounge Lizard that it has already reported, the miner said the latest results give it a better understanding of the geological layout.

Having integrated the legacy drilling from 212 drill holes into recently completed 3D geological modelling, Medallion Metals noted this will “greatly enhance” its exploration efforts moving forward in a system that remains open down-dip and along strike.

Top results reported from the deposits included 11 metres at 6.94 grams of gold per tonne from 50 metres, and 3 metres at 13.5g/t Au from 17 metres.

The ASX All Ords gold stock is aiming for an initial Mineral Resource Estimate (MRE) for the Forrestania Gold Project deposits in the third quarter of 2026. It noted the potential for mine life extensions beyond the current Feasibility Study.

What did Medallion Metals management say?

Commenting on the results boosting the ASX All Ords gold stock today, Medallion Metal managing director Paul Bennett said, “This latest phase of validation continues to strengthen our understanding of the Lounge Lizard mineralised system and the continuity of high-grade mineralisation beneath the historical open pit.”

Bennett added:

By integrating validated historical drilling with field mapping, the team has improved confidence in the updated geological interpretation across multiple lodes, with these results continuing to highlight the potential for additional high-grade ounces at Lounge Lizard.

Importantly, Lounge Lizard is continuing to reinforce its potential to become a near term production source as we look to build the Forrestania production profile alongside other high-grade deposits across the project tenure with the ultimate objective of extending mine life and increasing production rates beyond those outlined in the Feasibility Study.

With today’s intraday gains factored in, the Medallion Metals share price is up 43.3% since this time last year, outpacing the 3.5% one-year gains delivered by the All Ords.

The post Guess which ASX All Ords gold stock is leaping higher today on more high-grade results appeared first on The Motley Fool Australia.

More reading

• Why Codan, Medallion, Megaport, and Mineral 260 shares are storming higher today

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 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.

DroneShield Ltd (ASX: DRO) has given investors another reason to pay attention this week.

On Tuesday, the counter-drone technology company announced that it has secured a contract supporting the mission of US Joint Interagency Task Force 401.

The contract has an initial value of $19.3 million, with a further $5.6 million in options over a five-year period. It covers mobile and fixed-site counter-drone solutions, including hardware, subscriptions, warranties, and services.

Why the contract is positive

I think this contract is important for a few reasons.

First, it adds revenue visibility. DroneShield expects at least $10 million of the initial value to be committed revenue for FY26, with the balance expected in FY27.

Second, it shows the company is continuing to gain traction in the United States. That is a key market because defence, government, and critical infrastructure customers are increasingly focused on drone threats.

Third, the contract includes more than just one product sale. It involves mobile and fixed-site systems, along with subscriptions, warranties, and services. I like that because it points to a broader solution rather than a simple equipment order.

Counter-drone technology is not a one-and-done market. Threats change, software needs updating, customers need support, and systems need to remain effective as drones become cheaper, faster, and more capable.

A growing defence need

The main reason I like DroneShield shares is that the problem the company is solving appears to be getting more important.

Drones are now a major part of modern conflict and security planning. They can be used for surveillance, disruption, targeting, and attacks. Outside the battlefield, they can create risks for airports, prisons, public events, critical infrastructure, military bases, and government sites.

That creates demand for technology that can detect, track, identify, and defeat drone threats.

DroneShield is positioned in that market through its sensing, electronic warfare, and command-and-control solutions. The company is also using artificial intelligence to improve its products and help customers respond to fast-changing aerial threats.

There are risks to consider. Defence sales can be lumpy, contract timing can move around, and the share price can be volatile when expectations are high. Investors also need to watch competition, production capacity, margins, and execution.

But I think the latest US contract supports the view that this is not just a speculative theme. Customers are committing meaningful capital to counter-drone capability.

Would I buy DroneShield shares?

Yes, I would buy DroneShield shares after this contract win.

Not because one contract changes everything, but because it adds another piece of evidence to a larger growth story.

The company appears to be gaining credibility with important customers, expanding in the US, and selling into a market where demand could keep rising as drone threats become more widespread.

This is still a higher-risk ASX share. I would not treat it like a mature defence prime or a defensive blue-chip stock. But for investors comfortable with volatility, I think the long-term opportunity is compelling.

Foolish Takeaway

The US contract win is a positive development for DroneShield, but it is not the whole investment case.

The real attraction is the direction of the market. Drones are changing how governments, militaries, and infrastructure operators think about security. That shift could create a long runway for companies with proven counter-drone technology.

DroneShield still has plenty to prove as it scales. But this latest win suggests it is moving in the right direction. For patient investors who can handle the risks, I think the shares remain a buy.

The post Should I buy DroneShield shares after its US contract win? appeared first on The Motley Fool Australia.

More reading

• Why DroneShield, Pro Medicus, SRG Global, and Woodside shares are charging higher today
• DroneShield shares jump as fresh US defence deal fires up investors
• Why DroneShield, Lendlease, PlaySide, and ResMed shares are tumbling today
• What happened to DroneShield shares in May?
• 3 ASX shares that brokers tipped to soar in the next 12 months

Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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.

Do you know if you have enough money in your superannuation account to retire in your 60s? Or how your superannuation compares to others the same age?

Here’s a run-through of the average superannuation balance of Australians aged 57. 

How does yours stack up?

What is the average superannuation balance for Australian men aged 57?

There aren’t exact figures, but brackets determined by the Association of Superannuation Funds of Australia (ASFA) provide a good guide.

The data shows that the average Australian male aged 55 to 59 has around $319,743 in their super.

What about the superannuation balance for women the same age?

Women the same age have quite a lot less. The average balance for Australian women aged 55 to 59 is $242,945. That’s a gap of around $76,000.

The lower balance is usually because women typically take time out of the workforce to raise children or work fewer hours. They also tend to have lower overall incomes.

Is it enough to live a comfortable lifestyle when I want to retire?

Here’s the bad news. Even if your superannuation is on track with the rest of the population around the same age, it might not actually be enough to retire on.

Especially if you want to live a comfortable retirement lifestyle.

ASFA retirement standard figures calculate that a comfortable retirement will cost single Australians approximately $54,840 per year. For couples, it’ll cost around $77,373.

In order to afford that, singles will need a superannuation balance of around $630,000, and couples will need around $730,000. These figures assume you’ll also get a part-Age Pension payment.

I’ve crunched the numbers, and Aussies aged 57 will need a superannuation balance of around $439,000 in order to meet that balance before retirement.

You’ll note that this is up to $196,000 more than the balance of average Australians the same age.

Do you have any tips to boost my superannuation balance before it’s too late?

The good news is that, at age 57, there are still several things you can do to turbocharge your superannuation balance before you retire.

My first advice is always to check that your super fund is performing well and that your investment strategy and risk profile match your own. There isn’t much use in adding additional funds until your super fund is working efficiently.

Next is time to add extra contributions wherever you can. Individuals can make concessional (before-tax) super contributions, such as salary sacrificing, taxed at a reduced rate of 15% and up to an annual cap. You can also make after-tax payments within your annual limits. 

Government contributions might also be available depending on your personal circumstances. There is a downsizer contributions rule, a bring-forward rule, a government co-contribution rule, and many others.

If you’ve done all these things and your superannuation balance still doesn’t stack up, another option is to delay your retirement. If you think about it, retiring in your early 70s rather than mid-60s gives you an extra five or so years of income and compound growth.

The post Average superannuation balance at age 57 in 2026. How does yours compare? appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 healthcare shares to buy while they’re on sale
• Ingenia Communities affirms strong FY26 outlook and development pipeline
• Guess which ASX All Ords gold stock is leaping higher today on more high-grade results
• Should I buy DroneShield shares after its US contract win?
• These 3 ASX shares will deliver better than 5% dividend yields, Macquarie says

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 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.

Depending on your investor profile, a strong dividend stream can be a good target to have.

I’ve had a look at the research reports coming out of Macquarie and have selected three companies which the broker’s analyst team predicts will continue to pay strong dividend yields for the next couple of years at least.

Not surprisingly, one is an infrastructure company, but the other two might be from less obvious sectors for steady payouts.

Let’s have a look what they’re saying.

APA Group (ASX: APA)

This company is a gas pipeline operator, and hence its revenues and returns tend to be fairly stable over time.

Macquarie said in its recent research note on the company that APA has highlighted that it expects further opportunities as coal exits the energy market, and from increasing demand from data centres.

The broker also highlights the fact that the Federal Government’s gas reservation policy creates incentives for companies to develop new gas fields.

The Macquarie team said:

For APA the policy also includes an expectation the exporters ‘are pursuing commercial arrangements to overcome any infrastructure constraints that may otherwise prevent them supplying’. This should provide support for more pipeline investment medium term.

Macquarie’s share price target on the company is $10.41, which is only slightly higher than the $10.13 price at the time of writing, but the broker is predicting a dividend yield of 5.7% this year, rising to 5.9% by 2028.

EBOS Group Ltd (ASX: EBO)

This company is, in its own words, “the largest and most diversified Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products”.

Macquarie actually has a very bullish price target on the stock in addition to the dividend yield which has brought it into this list.   

EBOS in April downgraded its FY26 underlying EBITDA guidance to $610 to $620 million, down from a previous range of $615 to $635 million, due to higher fuel and energy costs.

Macquarie said on the positive side of the ledger, a new First Pharmaceutical Wholesaler Agreement has been struck with the Federal Government, which will benefit EBOS’ Symbion division.

Macquarie has a price target of NZ$36.44 on the stock compared with NZ$19.60 at the time of writing.

The broker is forecasting a dividend yield of 5.9% for this year, rising to 6.9% by 2028.

Nine Entertainment Co. Holdings Ltd (ASX: NEC)

The Macquarie team said in their research note on Nine that they believed the advertising market could be approaching a cyclical low point, “with early signs of improved business confidence”.

Macquarie added:

Assuming inflation does not materially worsen versus expectations, we are optimistic on an improving ad market in FY27.

The Macquarie analysts also noted that a new agreement requiring digital platforms to pay for news is likely to be struck in early FY27, which could also be a benefit for Nine, which owns titles such as the Australian Financial Review and The Age.

Macquarie has a price target of $1.05 on the shares, compared with 93.5 cents at the time of writing, and is predicting a dividend yield of 6.4% this year, rising to 8% in 2028.

The post These 3 ASX shares will deliver better than 5% dividend yields, Macquarie says appeared first on The Motley Fool Australia.

More reading

• 3 strong ASX dividend shares for retirees to buy
• 2 strong ASX dividend shares with big yields to buy in June
• 3 of the best ASX dividend shares to buy in June
• 3 ASX dividend shares raising dividends like clockwork
• 3 ASX dividend shares yielding 5.5% or more

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

Qantas Airways Ltd (ASX: QAN) and Virgin Australia Holdings Ltd (ASX: VGN) shares give investors two different ways to invest in Australian aviation.

I think both are worth watching, but my preference is clear.

I would buy Qantas shares by far.

Virgin has some appeal on valuation, but I think Qantas has the stronger business, broader earnings base, better dividend outlook, and more attractive long-term investment case.

Virgin Australia shares look cheap

Virgin Australia is the cheaper of the two airline stocks on headline earnings multiples.

According to CommSec, consensus estimates point to earnings per share of 50 cents in FY26, 46.9 cents in FY27, and 54.4 cents in FY28.

Based on a share price of $2.64, that puts Virgin on around 5 times FY26 earnings, 6 times FY27 earnings, and less than 5 times FY28 earnings.

That looks inexpensive.

Virgin also has a clearer position than it had in the past. The business is now more focused, and its role in the Australian market appears more disciplined. It has a well-known brand, exposure to domestic travel, and the potential to benefit if demand remains solid.

However, I do not think the low valuation is enough to make it my preferred pick.

Airline earnings can move quickly when fuel prices rise, competition increases, or demand weakens. A low price-to-earnings (P/E) ratio can look attractive, but it needs to be weighed against the quality and resilience of the earnings.

The dividend outlook is also modest. CommSec estimates dividends per share of 5 cents in FY26 and 4.5 cents in FY27, implying dividend yields of around 1.9% and 1.7%.

Virgin Australia may do well from here, but I think there is a better airline stock to buy.

Why I prefer Qantas shares

Qantas trades on a higher valuation, but I think it deserves to.

CommSec estimates point to earnings per share of 98.4 cents in FY26, $1.16 in FY27, and $1.15 in FY28.

Based on a share price of $9.21, that puts Qantas on around 9 times FY26 earnings and around 8 times FY27 and FY28 earnings.

That is more expensive than Virgin, but I do not think it looks stretched for a business with Qantas’ advantages.

The dividend outlook is also much stronger. CommSec forecasts dividends per share of 39.6 cents in FY26, 44.8 cents in FY27, and 56.2 cents in FY28. That implies forward yields of around 4.3%, 4.9%, and 6.1%.

I would not treat an airline as a defensive dividend share. But if those forecasts are achieved, the income stream could become a meaningful part of the total return.

What I like most about Qantas is the quality of the overall business.

It has the premium Qantas brand, Jetstar for value-focused travel, a strong domestic position, international exposure, and a loyalty business that adds another layer to the investment case.

That loyalty business is a major difference in my view. Frequent Flyer points, partners, financial products, retail offers, and customer engagement give Qantas ways to earn from its customer base beyond simply selling seats on planes.

Qantas also has more strategic flexibility. Fleet renewal, network adjustments, premium travel, low-cost travel, loyalty, and capital management all give the group several levers to pull over time.

Foolish Takeaway

Virgin Australia may appeal to value-focused investors, but Qantas is the clear winner for me.

I think its higher valuation is justified by the quality of the business, the strength of its brands, and the broader ways it can generate earnings over time.

The share price will still be volatile at times. That comes with the airline sector. But for investors looking for the ASX airline stock to buy and hold, I think Qantas is comfortably the better choice.

The post Qantas shares vs Virgin Australia shares: Which ASX airline stock would I buy? appeared first on The Motley Fool Australia.

More reading

• 5 reasons to buy Qantas shares today
• My 3 best ASX 200 blue-chip shares to buy in June
• How high could Virgin Australia shares fly? RBC Capital Markets weighs in
• Why brokers are turning bullish on Qantas shares after a strong May performance
• How Qantas shares soared ahead of the ASX 200 in May

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

Northern Star Resources Ltd (ASX: NST) shares are jumping on Wednesday.

At the time of writing, the gold miner’s shares are up 8% to $22.79.

This is the second day in a row of strong gains, with news of an activist investor taking a position boosting its shares on Tuesday.

Why are Northern Star shares rising today?

The company’s shares are rising today after it released its latest mineral resource and ore reserve estimate.

Investors appear pleased with the scale of the update, which shows a major increase in Northern Star’s resource and reserve base.

According to the release, group mineral resources have increased to 88.9 million ounces. This represents an increase of 18.2 million ounces, or 26%, after mining depletion.

Group ore reserves have also increased strongly, rising by 6.1 million ounces, or 27%, to 28.4 million ounces after mining depletion.

This is important because mineral resources and ore reserves are key indicators of a gold miner’s long-term production potential. A larger reserve base can support longer mine lives, future production growth, and greater confidence in the company’s development plans.

Hemi included for the first time

A key driver of the increase was the first inclusion of the Hemi Project following Northern Star’s acquisition of De Grey Mining.

Hemi contributed mineral resources of 13.2 million ounces and ore reserves of 5.5 million ounces.

Management said the project is expected to become Northern Star’s fourth production centre and a major long-term growth platform.

This appears to be one of the standout parts of the update, given Hemi’s scale and strategic importance to the company’s future.

KCGM and Pogo also grow

There was also positive news from Northern Star’s existing key assets.

At KCGM, mineral resources increased to 42.2 million ounces, up 3.3 million ounces. Ore reserves rose to 15 million ounces, with growth driven largely by the Fimiston Underground.

At Pogo, mineral resources increased by 3.1 million ounces to 9.3 million ounces, while ore reserves increased by 0.3 million ounces to 2.4 million ounces.

Northern Star said the higher tonnes and lower grade at Pogo enhance future development optionality.

Together, KCGM, Pogo and Hemi now account for 65 million ounces, or 73%, of the company’s total resource base.

Low-cost discovery

Another positive was the cost of adding new ounces.

Northern Star revealed that additional resource ounces were added at an average discovery cost of less than $23 per ounce.

For a gold miner, adding ounces cheaply through exploration can be a powerful way to create shareholder value.

Management commentary

Northern Star’s managing director, Stuart Tonkin, was pleased with the results. He said:

The results highlight Northern Star’s commitment to exploration investment, which continues to drive strong organic and inorganic growth across our expanding portfolio year-on-year and deliver long-term returns for shareholders. For the first time, the Hemi Mineral Resources and Ore Reserves have been reported under the Northern Star methodology and economic framework, establishing a consistent, portfolio-wide approach that enhances comparability and underpins future growth opportunities. Technical work continues to optimise ore feed sources to determine the inputs that will be utilised for a final business case assessment.

KCGM, Pogo and Hemi are key strategic assets that are central to positioning the Company within the first half of the global cost curve, reinforcing the strength, quality and resilience of our future portfolio and supporting a compelling long-term growth outlook.

The post Why are Northern Star shares jumping 8% today? appeared first on The Motley Fool Australia.

More reading

• Why this activist hedge fund is buying Northern Star shares and what this means for investors
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Why’s the ASX 200 falling today despite another tech rally?
• Why has the gold price fallen 17% since the Iran war began?

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.

Megaport Ltd (ASX: MP1) shares will be out of action on Wednesday.

The network services company requested a trading halt while it undertakes a major capital raising.

What did Megaport announce?

This morning, Megaport announced four new artificial intelligence (AI) infrastructure contracts with a combined total contract value of approximately $458.9 million.

These contracts relate to AI inference workloads and are expected to commence in the first half of FY 2027.

The company revealed that the contracts will require approximately $369.5 million of capital expenditure, mainly for high-performance NVIDIA GPUs, as well as network and storage infrastructure.

Megaport also plans to establish an on-demand GPU Pool, supported by $350 million of investment.

This will allow enterprise customers to access AI infrastructure through both contracted and consumption-based commercial models.

Why is this important?

Megaport is positioning itself to build what it calls a Globally-Distributed AI Inference Cloud.

This essentially means providing the infrastructure that companies need to run AI applications closer to their customers.

This is important because AI inference workloads often need low latency. Megaport believes its footprint of more than 1,100 connected data centres across 31 countries gives it an advantage in supporting these workloads.

The company notes that demand for GPU-based compute is currently outstripping supply as enterprise AI adoption accelerates.

Commenting on the news, Megaport’s CEO, Michael Reid, said:

AI inference represents one of the biggest infrastructure opportunities of the next decade. The contracts announced today reflect the accelerating demand for globally-distributed AI inference infrastructure. Megaport’s software-provisioned compute, network, and storage platform positions us strongly to meet that demand.

AI inference is becoming a global infrastructure challenge, not simply a GPU problem. As AI adoption accelerates, organisations need seamless access to GPUs, CPUs, storage, and the connectivity that powers them. Megaport is built to deliver it all.

Capital raising

To fund the contracts and the GPU Pool, Megaport is undertaking a fully underwritten entitlement offer to raise $827.3 million.

Eligible shareholders will be able to subscribe for one new share for every 3.08 existing shares held.

The new Megaport shares will be issued at $14.30 per share. This represents a 13.9% discount to Megaport’s last closing price of $16.61 on Monday.

The proceeds will be used to fund hardware for the new contracts, establish the GPU Pool, cover transaction costs, and provide balance sheet flexibility for future growth opportunities.

Trading update

Megaport also provided a trading update this morning.

It advised that its network annual recurring revenue increased 25% year on year on a constant currency basis to $277.7 million in April 2026.

Including the new strategic contracts, its Compute division has pro forma annual recurring revenue of $385.2 million. This lifts total group pro forma annual recurring revenue to $662.9 million.

The company has also tightened its FY 2026 revenue guidance range to between $307 million and $315 million.

Its FY 2026 EBITDA margin and group capital expenditure guidance remain unchanged.

Megaport shares are expected to return to trade on Friday.

The post Megaport shares in focus amid $458.9m AI contract wins and capital raising appeared first on The Motley Fool Australia.

More reading

• Megaport secures 4 new AI contracts, announces capital raise
• Buy, hold, sell: Origin Energy, Megaport, NAB shares
• Megaport shares halted after 86% surge. Is another major deal coming?
• Why did Megaport shares rocket 70% in May?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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.