Category: Stock Market

The Australian share market has pulled back from recent highs, with investors navigating a mix of rising interest rates, geopolitical uncertainty, and shifting global growth expectations.

While this type of volatility is not unusual, some sectors have felt the pressure more than others. In particular, non-bank financials have had a challenging period, with several high-quality names seeing meaningful share price declines.

Two examples are Pinnacle Investment Management Group Ltd (ASX: PNI) and Netwealth Group Ltd (ASX: NWL). Over the past 12 months, their share prices have fallen more than 27% and 20%, respectively.

For long-term investors, periods like this often spark discussion around contrarian thinking. When sentiment turns negative, it can sometimes push share prices below what the underlying business performance might justify. That doesn’t automatically mean value is present — but it can create a reason to look more closely.

So, how are these two businesses actually performing beneath the surface?

Inflows climbing

Pinnacle operates a multi-affiliate funds management platform. Rather than managing all assets directly, it takes equity stakes in specialist investment boutiques (known as affiliates) and earns a share of their fees and profits.

This model allows Pinnacle to scale across asset classes and geographies while remaining relatively capital-light.

Recent results suggest the underlying business continues to grow, even as performance fees fluctuate. Funds under management (FUM) reached $202.5 billion, up 13%, supported by record net inflows of $17.2 billion for the half.

Importantly, core earnings appear resilient. Pinnacle reported strong growth in its share of affiliate profits (excluding performance fees), with underlying net profit (NPAT) also rising solidly versus the prior period.

The variability comes from performance fees, which declined compared to the previous corresponding period — highlighting the cyclical nature of earnings in funds management.

Strategically, the business continues to expand globally, with increasing exposure to international markets and private assets, alongside new investments such as its stake in Pacific Asset Management.

Improving profitability 

Netwealth is a platform provider offering technology, administration, and investment solutions to financial advisers and their clients. It generates revenue primarily from fees linked to funds under administration (FUA) and from transaction and ancillary services.

The structural tailwinds behind the business — including the shift towards platform-based investing and independent advice — remain firmly in place.

Recent results highlight strong operational momentum. Netwealth reported FUA of $125.6 billion, up 23.6% year on year, alongside total income growth of 24.7% to $193.8 million.

Profitability also improved, with operating earnings (EBITDA) rising 23.9% and net profit after tax increasing nearly 20%.

Revenue growth has been broad-based, with platform revenue climbing 25.3%, supported by growth across administration, transaction, and ancillary fees.

The company continues to benefit from strong inflows and adviser growth, with custodial inflows of $16.4 billion for the half and expanding market share in the platform sector.

Management remains focused on investing in technology and product capability, including AI-driven enhancements, to support long-term growth and adviser productivity.

Foolish takeaway

Despite notable share price declines over the past year, both Pinnacle and Netwealth appear to be delivering solid underlying business performance.

Pinnacle’s growth continues to be driven by inflows and its scalable affiliate model, while Netwealth is benefiting from structural industry shifts and strong platform growth.

As always, markets can sometimes weigh short-term uncertainty more heavily than longer-term fundamentals. If these companies can continue to grow revenue and earnings over time, a shift in sentiment could eventually see valuations move higher again.

Whether that plays out — and over what timeframe — remains something investors will be watching closely.

The post 2 beaten-down ASX financial stocks worth a closer look appeared first on The Motley Fool Australia.

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• Where to invest $5,000 in Australian shares for the rest of 2026
• Are these 3 ASX shares at 52-week lows going cheap?
• 3 of the best ASX income stocks to buy now
• Should I invest $2,000 in the VAS ETF?
• 3 ASX growth shares I’d buy and hold with $3,000

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

Barrenjoey has had a look at a couple of the ASX-listed, Africa-focused gold miners and has identified two companies its analyst team believes are deeply undervalued at current prices.

Let’s have a look at who they like.

West African Resources Ltd (ASX: WAF)

The Barrenjoey team has published a research note on this company with the title “Cash harvest in 2026”, which gives some indication of how positive they are on the stock.

They note that after a “challenging” 2025, the company enters 2026 in a net cash position, “with its two key assets humming and on track to produce 475,000 ounces at an all in sustaining cost of US$1,991 per ounce on our estimates”.

The Barrenjoey team went on to say:

The shares have traded down 30% since January and are now imputing an almost unbelievable 43% free cash flow yield in 2026 with the potential to deliver a dividend yield exceeding 10%. Uncertainty around the government’s request to purchase a stake in Kiaka remains unresolved, but the shares are now pricing in a scenario materially worse than the recently reported additional 25%. We expect the business will deliver $1.1bn in free cash flow this year, and will be in a strong position to make material capital returns to shareholders.

Barrenjoey says their price target is based on a “worst case scenario” regarding what stake in the Kiaka mine the Burkina Faso Government opts to take.

Barrenjoey has a $4.80 price target for West African Resources shares, compared with $2.89 currently.

If achieved, that would represent a return of 66.1%. West African Resources is valued at $3.46 billion.

Perseus Mining Ltd (ASX: PRU)

This company announced just this week that it had sold its 70% stake in the Meyas Sand Project in Sudan to a Chinese company for US$260 million, which Barrenjoey said was about 50% more than Perseus paid for it.

Barrenjoey said the transaction was a net positive, as it had the asset on the books as worth $118 million, “given the ongoing civil war in Sudan and uncertainty around Perseus’s ability to develop it”.

The Barrenjoey analysts point out that Perseus shares are down 20% from their January peak, ”since which time management has announced the doubling of Reserves at Nyanzaga, realised value at Meyas Sand and positioned the company for improved capital returns in 2026”.

The Barrenjoey analysts added:

We view Perseus as the highest-quality ASX-listed African gold exposure, with its history of operational excellence and geographic diversification typically driving a healthy premium over its ASX listed African gold peers.

They said that the company should be in a position to “meaningfully” lift its full-year dividend following the Sudan sale.

Barrenjoey has increased its price target for Perseus from $6.50 to $6.80, compared with $4.80 currently.

The post 2 ASX gold miners to buy for solid share price gains, according to Barrenjoey appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 gold stocks like Northern Star and Newmont down so much today?
• Top brokers name 3 ASX shares to buy today
• Which ASX gold shares have risen the most in 2026?
• Here are the top 10 ASX 200 shares today
• Why Challenger, Meeka Metals, Vulcan Energy, and West African Resources shares are rising today

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

Shares in Dateline Resources Ltd (ASX: DTR) are under pressure on Thursday following the release of a new operational update.

At the time of writing, the Dateline share price is down 7.92% to 46.5 cents.

The decline comes despite the company outlining progress at its Colosseum Gold and Rare Earth Elements (REE) project in California.

Here is what the company announced.

Dateline secures second drill rig

According to the release, Dateline has acquired a second diamond drill rig to accelerate its drilling program at the Colosseum project.

The company said the rig has already been mobilised to site and is undergoing final safety checks ahead of drilling.

The new rig will operate alongside an existing contractor-operated rig. Together, the two rigs are expected to support a 12-hole drilling program targeting rare earths elements.

Dateline said the additional capacity will also allow it to test gold mineralisation at the site, including extensions of the North Pipe area.

The newly acquired rig is track-mounted and capable of drilling to depths of up to 1,200 metres. This is expected to provide greater flexibility to access areas where conventional truck-mounted rigs may be limited.

Focus remains on Colosseum project

The Colosseum project is located in California, near the well-known Mountain Pass rare earths mine.

Dateline owns 100% of the project and is progressing both gold and rare earths exploration activities.

Previous work at the site has defined a JORC compliant gold resource. The company is also assessing the potential to expand this resource while testing for additional rare earths mineralisation.

Management said the addition of a second rig is expected to increase drilling activity and lift exploration output across both commodities.

Strong run despite today’s pullback

While today’s share price decline may draw attention, it follows a period of strong gains.

Dateline shares are up more than 100% since the start of the year. Over the past 12 months, the stock has delivered returns of more than 11,500%.

The company currently has a market capitalisation of around $1.6 billion and has recorded large trading volumes in recent sessions.

What to watch from here

With two rigs now operating, Dateline should generate more drilling data across both gold and rare earths targets. This includes work around the North Pipe area and other parts of the project.

The larger program is also expected to improve coverage across the site as drilling ramps up.

Attention will now turn to updates on drilling progress and results from the expanded program.

The post Up 100% in 2026, this ASX stock just dropped 8%. Here’s why appeared first on The Motley Fool Australia.

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• Dateline shares surge again after major US rare earths deal

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

The S&P/ASX 200 Index (ASX: XJO) is down 1.5% in early afternoon trade on Thursday.

That’s roughly where the benchmark index has been at all day.

This sees the ASX 200 down a sharp 7.6% since the closing bell on 2 March.

The broader Aussie sharemarket has come under pressure this month amid ongoing concerns over resurgent inflation and the resulting RBA interest rate hikes. And surging energy prices, fuelled by the war in Iran, have done nothing to assuage those concerns.

Which is why we’ve been keeping a close eye on Australia’s unemployment numbers.

So long as the jobs market remains tight, as it has been, wages are likely to keep rising, adding to inflationary pressures.

In making its decision to raise interest rates by a quarter percentage point to 4.10% on Tuesday, the RBA relied partly on its forecast that unemployment will increase from 4.1% to 4.3% by June.

Which brings us to the latest Australian jobs data, just released by the Australian Bureau of Statistics (ABS).

ASX 200 stays in the red despite unemployment uptick

The ASX 200 is up a slender 0.1% since the ABS released the jobs report at 11:30am AEDT.

Investor reaction has been muted to the news that Australia’s seasonally adjusted unemployment rate increased to 4.3% in February.

Commenting on the jobs data, Sean Crick, ABS head of labour statistics, said:

The number of unemployed people grew by 35,000, contributing to the 0.2 percentage point increase of the unemployment rate in February.

This month we saw fewer people who were unemployed and waiting to start a job in January move into employment in February, compared to recent Februarys. We also saw more people remaining unemployed this month compared to recent Februarys.

Crick added, “This month we saw more people move into part-time employment, particularly those aged 65 and over. Additionally, this month we saw that fewer people are leaving jobs to retire compared to a year ago.”

What are the experts saying about RBA interest rates now?

As for what ASX 200 investors might expect from the interest rates following today’s jobs data, National Australia Bank Ltd (ASX: NAB) noted before the data release (quoted by The Australian Financial Review):

This release will be important for the RBA’s assessment of spare capacity in the labour market, with RBA’s Hauser recently noting that the economy has limited spare capacity, with unemployment coming in “a bit” below expectations and measures of labour demand a little higher.

If unemployment remains at 4.1%, this would do little to ease the RBA’s concerns around labour market tightness. By contrast, a print of 4.2% would ease concern the labour market may be tighter still than their February assessment.

Global X senior product and investment strategist Marc Jocum cautioned that ASX 200 investors are unlikely to see the RBA reverse its tightening policy based on today’s employment figures.

“Today’s jobs data reinforces the tightening bias, suggesting policy will need to stay restrictive for longer than markets may be hoping,” Jocum said.

The post What today’s jobs numbers mean for ASX 200 investors appeared first on The Motley Fool Australia.

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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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is out of form and sinking deep into the red. At the time of writing, the benchmark index is down 1.5% to 8,508.3 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

EBR Systems Inc (ASX: EBR)

The EBR Systems share price is up 4% to 72 cents. This follows the release of the medical device company’s quarterly update. EBR Systems’ president and chief executive officer, John McCutcheon, was pleased with the progress the company is making. He said: “2025 marked a defining year for EBR as we successfully transitioned from a development-stage company to a commercial medical device business. Achieving FDA approval for the WiSE CRT System in April and initiating our U.S. commercial launch were transformational milestones that position EBR at the forefront of leadless cardiac resynchronisation therapy.”

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is up a further 3% to $10.01. This defence and space company’s shares have been rebounding after a major sell-off on Tuesday. The catalyst for this was news that the company’s CEO, Dr Andreas Schwer, was given approval to sell 2.5 million EOS shares on-market following the exercise of options that were granted under a long-term incentive plan. Some investors may believe the selling was an overreaction, especially after its CEO committed to retain a shareholding well above the minimum levels required under its recently announced shareholding policy.

Racura Oncology Ltd (ASX: RAC)

The Racura Oncology share price is up 21% to $2.89. Investors have been buying this oncology company’s shares after it announced the successful dosing of a patient in Hong Kong with its RC220 cancer compound. Importantly, there has been no vein inflammation or other adverse events reported following the dosing. Racura’s CEO, Dr Daniel Tillett, said: “The safe dosing of the third patient in our RC220 solid tumour trial in Hong Kong and recruitment of the first dose escalation cohort is an important milestone for Racura Oncology. We are grateful to all the patients, investigators, and clinical teams who have made this trial possible and we look forward to treating patients on the updated protocol.”

Woodside Energy Group Ltd (ASX: WDS)

The Woodside Energy share price is up 6% to $33.44. This has been driven by another rise in oil prices overnight amid concerns over the impact of the war in the Middle East on supplies. It isn’t just Woodside that is rising today. The S&P/ASX 200 Energy index is up 4.9% at the time of writing.

The post Why EBR, EOS, Racura, and Woodside shares are rising today appeared first on The Motley Fool Australia.

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

Let me start with an uncomfortable truth:

If the Australian government announced a meaningful Budget surplus today, plenty of people would be furious.

Not a bit disappointed. Furious.

We’d hear that Canberra was “out of touch”. That it was “ignoring struggling families”. That it was “hoarding money while people are doing it tough”.

And politically, that reaction is exactly why we’re unlikely to see one.

But here’s the thing – and it matters more than the politics:

A Budget surplus right now would probably be one of the most effective forms of cost-of-living relief the government could deliver.

Not because it hands out cash.

But because it helps stop taking it away (via inflation) in the first place.

Before we go further, we need to introduce a concept that doesn’t get nearly enough airtime (but you’ve probably read from me before): structural Budget balance.

In plain English, it’s this: what would the Budget look like if the economy were running at a normal, sustainable pace?

Not booming. Not in recession. Just… steady.

That matters because government revenues and spending naturally move with the economic cycle.

When times are good, tax receipts surge – more people working, higher profits; more income tax and company tax flowing in.

At the same time, welfare spending tends to fall, particularly unemployment benefits.

The Budget can look healthy – even in surplus – without any real policy effort.

Flip that around in a downturn and the opposite happens. Revenues fall, spending rises, and deficits appear.

Again, often automatically.

So when we talk about surpluses and deficits, we need to separate what’s cyclical (driven by the economy) from what’s structural (driven by policy settings).

Because it’s the structural position that really tells us whether fiscal policy is helping or hurting.

And let me be clear: deficits aren’t inherently bad.

In fact, at the right time, they’re exactly what you want.

When the economy is weak – businesses cutting back, unemployment rising, households tightening their belts – government spending can step in to support demand. And automatically!

That’s not theoretical. It’s practical.

More spending keeps people in jobs. It supports incomes. It prevents downturns from becoming something worse.

Think back to the pandemic, or the global financial crisis.

Deficits weren’t a failure of policy.

They were the policy.

As I often say: prepare, don’t predict. And part of that preparation is recognising that sometimes the government needs to support the economy.

But – and this is the bit we tend to forget (some of us just because… our politicians, probably on purpose) – the opposite is also true.

When the economy is running hot, deficits become part of the problem.

Because when the government spends more than it collects, it’s adding demand.

More money chasing the same goods and services.

And when demand runs ahead of supply?

Prices go up.

That’s where we’ve been. It’s where we are now.

And it’s what the RBA confronted on Tuesday.

When inflation rises, the RBA steps in, lifting interest rates to cool things down.

Higher rates reduce borrowing, slow spending, and – eventually – bring inflation back under control.

But here’s the key point: fiscal policy (the Budget) and monetary policy (interest rates) are working against each other.

The government is running stimulatory deficits while the RBA is trying to slow the economy with higher rates.

Which, if you sit with it for more than 30 seconds, is maddening.

One pressing the accelerator.

The other hitting the brakes.

But a Budget surplus would change that dynamic.

Instead of adding demand, the government would be taking more out of the economy than it’s putting in.

That reduces overall spending power.

Less demand means less pressure on prices.

And less pressure on prices means the RBA doesn’t need to push interest rates as high – or keep them there as long.

So while a surplus doesn’t feel like “relief” – no cheques, no rebates, no big announcements – it works in a quieter, more powerful way.

It pushes back against inflation.

And by doing so, lessens the need for higher interest rates.

For mortgage holders, who otherwise bear the full brunt of monetary policy, that’s real relief.

The other thing? Australia hasn’t just been running deficits at the wrong time in the cycle.

We’ve been running structural deficits for a long time.

In other words, even when the economy is doing reasonably well, government spending is still exceeding revenue.

That leaves us with very little room to move when things go wrong.

If you’re already in deficit during the good times, what happens when the bad times arrive?

You go deeper into deficit.

And rack up far more debt.

And as a result, future governments have fewer options. Future budgets have higher interest expenses to pay, reducing the money available for other programs and/or the ability to lower taxes.

A structurally balanced Budget – or better yet, a small structural surplus – gives policymakers flexibility.

It means they can afford to run deficits when they’re needed.

Without putting long-term pressure on the system.

If the logic is this clear (and I think it is!), why aren’t we aiming for structural balance – and running surpluses when the economy is strong?

Because politics isn’t economics.

A surplus requires restraint. It means saying “no” – or at least “not now” – to spending demands.

It requires a population to understand and to vote accordingly, too. (Not for one party or another… just to resist voting for whoever gives out the most handouts, whatever the long term cost!)

Right now, those demands are loud.

Households are under pressure. Prices are high. Mortgage repayments have jumped.

All of that is real.

But here’s the thing: the spending designed to provide relief can end up prolonging the problem.

More spending means more demand… which means more inflation… which probably means higher (or a longer wait for lower) interest rates.

Round and round we go.

We, and our politicians, are the problem.

We want lower prices.

And lower interest rates.

And lower taxes.

And more government support.

And no cuts to services.

…At the same time.

Unfortunately, economics doesn’t work like that. We don’t have a magic pudding.

Good governance means different parts of the cycle require different responses.

Deficits when the economy is weak.

Surpluses when the economy is strong.

And, crucially, a structural position that gives us the flexibility to do both.

Now, none of this is to suggest governments shouldn’t help, when real problems are identified.

Of course they should… especially for those most in need.

But we also need to recognise that not all help comes in the form of a handout or subsidy or discount.

Sometimes, the best help is the kind that reduces inflation.

That brings interest rates down sooner.

That takes pressure off the system as a whole.

Right now, that kind of help would look a lot like a Budget surplus.

Bottom line?

Governments need courage, and we need to vote thoughtfully, telling our pollies what we want.

This is what that looks like:

Running deficits when the economy needs support.

Running surpluses when it doesn’t. (And when it needs cooling!)

And aiming, over time, for a structurally balanced Budget that gives us room to move.

Because the alternative – permanent deficits, short-term fixes, and policy driven by fear of backlash – doesn’t make us richer.

It leaves us more exposed.

And, ultimately, worse off.

Fool on!

The post The Budget surplus we don’t want (but need) appeared first on The Motley Fool Australia.

More reading

• How higher interest rates could send CBA shares plunging 42%
• 2 beaten-down ASX financial stocks worth a closer look
• 2 ASX gold miners to buy for solid share price gains, according to Barrenjoey
• Up 100% in 2026, this ASX stock just dropped 8%. Here’s why
• What today’s jobs numbers mean for ASX 200 investors

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

The S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. In afternoon trade, the benchmark index is down 1.55% to 8,507.7 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down 3.5% to $9.32. This has been driven by a combination of broad market weakness and the infant formula company’s shares going ex-dividend today. Last month, A2 Milk released its half-year results and declared a fully franked 8.3 cents per share interim dividend. Eligible shareholders can look forward to receiving this payout in a couple of weeks on 2 April.

BWP Trust (ASX: BWP)

The BWP Trust share price is down 4% to $3.64. The catalyst for this appears to have been a broker note out of UBS this morning. According to the note, the broker has downgraded the Bunning Warehouse-focused property company’s shares to a neutral rating (from buy) with a reduced price target of $3.89. UBS highlights that the last time there was an energy crisis (the start of the Russia-Ukraine conflict), Australian REITs sank deep into the red as interest rates rose.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 6% to 20.7 cents. Investors have been selling the lithium miner’s shares following broad weakness in the mining sector and the completion of its $120 million institutional placement. Those funds were raised at a 4.5% discount of 21 cents per new share and will be used to restart the Finniss Lithium Project this year. Core Lithium’s managing director, Paul Brown, said: “The strong support we have received through this equity raising is a clear endorsement of Core’s restart strategy and the long-term value of the Finniss Operation. Combined with the strategic funding from Glencore, InfraVia and Nebari, this places Core in a fully funded position to execute the restart in line with the FID.”

Newmont Corporation (ASX: NEM)

The Newmont share price is down 5.5% to $146.51. This follows a sizeable pullback in the gold price overnight after the US Federal Reserve kept rates on hold. It appears that traders were hoping for a rate cut, which would be supportive of the safe haven asset, but rising oil prices have seemingly ruled that out. It isn’t just Newmont that is falling today. The gold industry is a sea of red, with the S&P/ASX All Ordinaries Gold index down 8% at the time of writing.

The post Why A2 Milk, BWP, Core Lithium, and Newmont shares are sinking today appeared first on The Motley Fool Australia.

More reading

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• Core Lithium shares tumble after $120m capital raising for Finniss restart
• 5 things to watch on the ASX 200 on Thursday
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• Which ASX gold shares have risen the most in 2026?

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.

Westpac Banking Corp (ASX: WBC) shares haven’t exactly flown under the radar lately.

After climbing around 37% over the past year, they’ve delivered the kind of return investors usually hope for from growth stocks, not major banks.

But with that strong performance now behind it, the more important question is whether there’s still value on offer today for a $10,000 investment?

Westpac shares look fully valued after strong run

After a rally like this, I always ask whether the upside is already priced in.

Westpac’s latest quarterly update shows a steady, improving business. It delivered around $1.9 billion in quarterly profit, with growth supported by lending momentum and cost discipline.

That’s solid. But it’s not exceptional enough, in my view, to justify chasing the shares after such a strong run.

Margins are still under pressure, with net interest margin slipping slightly, reflecting competition and a changing rate environment.

So while the business is performing well, I think the share price is already factoring in a lot of that progress.

I wouldn’t sell… but I wouldn’t buy either

If I already owned Westpac shares, I wouldn’t be rushing to sell them.

The bank remains well capitalised, profitable, and positioned to benefit from steady credit demand. Its capital ratio sits comfortably above target levels, and its outlook remains stable.

But investing is about opportunity cost.

And right now, I don’t think Westpac offers a compelling risk-reward profile.

Why I prefer CBA instead

If I’m going to invest in a bank, I want the best one.

For me, that’s Commonwealth Bank of Australia (ASX: CBA).

Its latest first-half results highlight why. The bank continues to deliver strong and consistent profitability, with cash NPAT of $5.45 billion for the half and a return on equity of 13.8%, which remains sector-leading.

It also declared a fully franked dividend of $2.35 per share, supported by a strong balance sheet and resilient earnings.

What stands out to me is consistency.

CBA continues to execute well, invest in technology, and maintain strong credit quality. Its scale, brand, and operational discipline have allowed it to outperform peers over time.

Yes, it often trades at a premium valuation. But in my experience, there’s usually a reason for that.

Quality over alternatives

I tend to lean toward owning the highest-quality business in a sector rather than spreading exposure across multiple similar names.

That’s especially true in banking, where differences in execution, margins, and returns can compound over time.

Westpac is improving, but I don’t think it’s operating at the same level as CBA right now.

And if I already have exposure through CBA, I don’t see a strong case to add Westpac on top.

Foolish takeaway

Westpac shares have performed well and the business is on a solid footing. But after a 37% rise over the past year, I think the valuation looks full.

I wouldn’t sell if I owned them. But if I had $10,000 to invest today, I’d be looking elsewhere.

For me, that means sticking with the highest-quality option in the sector rather than chasing a bank that has already had a strong run.

The post Should I invest $10,000 in Westpac shares right now? appeared first on The Motley Fool Australia.

More reading

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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.

The Lynas Rare Earths Ltd (ASX: LYC) share price is higher on Thursday after the company released a key operational update.

At the time of writing, the Lynas share price is up 1.86% to $20.01. The stock has been a strong performer this year and is now up around 60% in 2026.

The gain comes even as the broader market moves lower. The S&P/ASX 200 Index (ASX: XJO) is down 1.5% amid escalating developments in the Middle East.

Lynas produces first samarium oxide in Malaysia

In the announcement, Lynas confirmed it has successfully produced its first samarium oxide at its Malaysian operations.

This marks an important expansion of the company’s heavy rare earths processing capability. Previously, Lynas produced separated neodymium and praseodymium products, which are widely used in permanent magnets.

With the addition of samarium oxide, Lynas is now increasing its range of separated heavy rare earth products.

Samarium is used in high-performance magnets, particularly in electronics and defence-related applications. The company noted that the product is already in demand from customers requiring advanced magnet materials.

How this fits into Lynas’ long-term growth plan

The production milestone forms part of Lynas’ broader plan to expand its heavy rare earths capabilities.

The company has previously outlined plans to develop heavy rare earth separation at its Malaysian facility as part of its long-term growth strategy.

This work sits within Lynas’ “Towards 2030” plan, which is focused on increasing production and expanding its product mix.

Management confirmed that samarium oxide production was delivered ahead of schedule, marking the first step in this expansion.

Lynas is now working to add further heavy rare earth products, including dysprosium and terbium, which are used in high-performance magnets.

The company said initial heavy rare earths production capacity is expected to be available within the next 2 years.

Strong share price performance in 2026

Despite some volatility in recent months, Lynas shares have delivered strong gains over the past year.

The stock is up more than 160% over the past 12 months and around 60% since the start of 2026.

The company currently has a market capitalisation of approximately $20 billion and remains one of the largest rare earth producers outside China.

What to watch next

Today’s update shows Lynas is moving ahead with its expansion plans.

The next focus will be progress in heavy rare earth production and updates on new products.

Progress on its expansion plans and new production capacity will be key in the months ahead.

The post This major update just sent Lynas shares higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. 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.

Shares in travel companies such as Qantas Airways Ltd (ASX: QAN) have been under pressure since the start of the Iran conflict in late February.

Shares in the national carrier were trading just shy of $10 when the first attacks were launched by the US and Israel, and are now trading at $8.49, although keep in mind the shares went ex-dividend during this period.

Qantas shares still good value

The team at Macquarie have had a look at Qantas’s valuation in light of the conflict and believes that there’s still plenty of upside to be had.

That said, they believe that jet fuel costs in the short term will be a negative.

As they said in their research note to clients:

Entering the third week of the conflict, we adjust our earnings forecasts down to reflect a structurally higher crack spread for the rest of FY26, and the limited ability to pass through the higher costs. With 90 days to run, much of the sales have already been made across international, domestic and Jetstar.

“Crack spread” refers to the differential between the cost of a barrel of crude oil and the cost of refined products such as jet fuel.

The Macquarie team also believes Qantas has some flexibility in capital management.

Balance sheet remains robust. FY26 dividend we anticipate would move back to the base level of about $0.396 per share, i.e., 4.6% yield, reflecting a 50% payout if the $150m share buyback is executed, which remains our default assumption. Leverage remains in the low half of the preferred range post downgrades, and recent currency strength should aid future capex spend.

On any disruptions caused by the Iran conflict, Macquarie says Qantas has flexibility, being able to retire planes or delay capital expenditure.

Price target lowered

Macquarie has lowered its target price for Qantas by 40 cents per share, but at $11.60, it is still well above where the stock is trading.

Qantas also recently settled a class action relating to flight credits during the pandemic, which was lodged against the company in August 2023.

Under the terms of the settlement, Qantas agreed to pay $105 million with no admission of liability.

Qantas said earlier this month:

The class action related to flights scheduled to depart between 1 January 2020 and 1 November 2022 that were cancelled by Qantas, and included allegations that the airline breached its contractual obligations regarding refunds. In August 2023, Qantas removed the expiry date on flight credits issued during Covid, meaning customers can request a cash refund indefinitely.

Qantas said it would recognise a provision for the settlement in its second-half results.

Qantas is currently valued at $13.2 billion.

The post How high does Macquarie think Qantas shares will go? appeared first on The Motley Fool Australia.

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