Category: Stock Market

Westpac Banking Corp (ASX: WBC) shares have continued sliding since the bank’s latest quarterly update.

A new 52-week low naturally makes the shares look more tempting.

But has the investment case improved enough for me to buy?

The valuation has come down

Westpac shares touched a 52-week low of $33.46 on Monday, well below their 52-week high of $43.32.

That represents a decline of almost 23% from the peak and has taken some of the heat out of the valuation.

According to CommSec, analysts currently expect earnings per share of $2.08 in FY26 and $2.15 in FY27. At $33.46, Westpac is trading at around 16 times FY26 earnings and approximately 15.6 times FY27 earnings.

Those numbers look considerably more reasonable to me than they did when the shares were above $40.

Consensus forecasts also point to fully franked dividends of $1.54 per share in FY26 and $1.55 in FY27, so investors are still being offered a healthy stream of income while they wait.

But a cheaper share price alone is not enough to make me change my view.

My main concern hasn’t gone away

I wrote negatively about Westpac earlier this month after its third-quarter update, and the issue that bothered me then is still important today.

Mortgage applications have slowed.

Westpac reported average monthly mortgage applications of around 29,000 during the third quarter, while the run rate following the federal budget had fallen further to approximately 26,000.

That catches my attention because home lending remains a huge part of Westpac’s business. Its Australian mortgage portfolio stood at $529.1 billion at the end of June.

The bank also expects Australian housing credit growth to slow from 6.8% in FY26 to 4.7% in FY27.

Westpac is still profitable and its third-quarter update contained positives, including growth in business lending and deposits. But I would like to see clearer evidence that the bank can generate stronger growth outside its enormous mortgage business before becoming more positive.

The consensus numbers do not give me much reason to rush either. Earnings per share are currently expected to rise only modestly between FY26 and FY27, while the dividend forecast is almost unchanged.

I’d rather own CBA or NAB

If I wanted to buy an Australian bank today, I would still look elsewhere.

Commonwealth Bank of Australia (ASX: CBA) remains my preferred high-quality banking business.

I like its enormous customer franchise, strong digital capabilities, and ability to grow relationships across personal banking, home lending, business banking, and other financial services.

National Australia Bank Ltd (ASX: NAB) also interests me more than Westpac.

NAB’s strong position in business banking gives it exposure to an area I find attractive, particularly when competition and slower growth can make Australian home lending more challenging.

Westpac is working to strengthen its own business banking operations, including adding more regional bankers. That could help over time.

For now, though, I think CBA and NAB give me stronger reasons to invest.

Foolish takeaway

The new 52-week low has made Westpac shares more reasonably priced, but I am still not a buyer.

I would want more than a falling share price to change my mind. The slowdown in mortgage applications remains a concern, while current forecasts suggest earnings growth could be fairly subdued in the near term.

Westpac could certainly recover from here, and its dividend may attract income investors.

For my own money, though, I would rather put it behind CBA or NAB and wait for stronger evidence before reconsidering Westpac.

The post Are Westpac shares a buy at their new 52-week low? appeared first on The Motley Fool Australia.

More reading

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• 3 reasons to buy CBA shares following its results

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.

Shares in automotive repairer AMA Group Ltd (ASX: AMA) have fallen almost 50% over the past 12 months, but the analyst team at Bell Potter thinks the company is worth another look.

Solid profit result posted

The company last week reported its full-year results, with revenue coming in at $1.04 billion and EBITDA tipping the scales at $68 million, up 8.6%.

Managing Director Ray Smith-Roberts said the company had delivered positive results despite a challenging operating environment.

He said:

AMA is increasingly becoming a vertically integrated business that combines vehicle repair services with automotive parts sourcing and supply, enabling greater control over repair quality, turnaround times and costs. Being vertically integrated, with multiple income streams, provides us with a key competitive advantage. Strong performances from our ACM, Mechanical and ADAS businesses demonstrate the value of complementary capabilities across the vehicle repair lifecycle and position the Group to respond to evolving customer and industry needs.

The company opened three new sites during the year, in South Australia, New South Wales, and Tasmania.

The company also declared a dividend of 0.5 cents per share – its first since 2019.

On the outlook for FY27, AMA Group said it expected EBITDA to be in the range of $75 to $80 million, “subject to ordinary trading conditions”.

Shares looking cheap, broker says

Bell Potter has a positive outlook on the company despite the earnings results missing consensus estimates.

They said:

The result … missed the guidance of $70-75m and was largely driven by a lower-than-anticipated uplift in repair volumes during Q4 as a result of higher fuel prices and public transport concessions. A highlight of the result was the positive free cash flow of $2.5m – we had forecast around breakeven – and the lower than expected year end net debt level of $18.4m. Positive surprise of the result was a final dividend of 0.5c fully franked where we had not forecast any.  

Bell Potter slightly downgraded its earnings expectations for AMA Group, with its EBITDA forecast now $76.7 million, which is towards the lower end of the company’s own forecast.

This flowed through into a lower price target for the company, down from $1 to 90 cents, but still well above the current share price of 49.5 cents.

Bell Potter said one of the main risks to the company was customer concentration.

They said:

The car insurance market in Australia is heavily concentrated and a significant proportion of AMA’s revenue is derived from the top two insurers, Suncorp and IAG. Any breakdown in the relationship with one or both of these insurers could have a material adverse impact on AMA’s revenue and profitability.

The post Bell Potter says this ASX small cap could almost double in value appeared first on The Motley Fool Australia.

More reading

• Are Westpac shares a buy at their new 52-week low?
• 3 ASX shares I’d buy for their global growth potential
• Two ASX data centre stocks rated a buy
• Buy, hold, sell: CSL, BHP, Westpac shares
• 3 ASX shares I’d buy if I were a beginner 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.

Some of my favourite ASX opportunities are businesses that have already proven themselves in Australia but still have enormous markets overseas to pursue.

If they can keep building their international presence, I think the three shares below could be considerably larger businesses in the years ahead.

Breville Group Ltd (ASX: BRG)

Breville has turned an Australian appliance brand into a global premium kitchen business.

Its products now compete in major markets around the world, particularly across coffee and food preparation.

I think coffee is one of the most interesting parts of the opportunity.

Consumers have become increasingly willing to spend money on better coffee at home, and Breville has built a strong reputation for machines that sit between basic household appliances and much more expensive professional equipment.

That gives the company room to keep attracting people who want to recreate the café experience at home.

Breville can also grow by entering more countries, expanding its product range, and encouraging existing customers to buy additional products over time.

One thing I like is that the company does not need to become the dominant appliance company everywhere. Winning a larger share of premium kitchen spending across a growing collection of markets could be enough to support many years of expansion.

Catapult Sports Ltd (ASX: CAT)

Catapult Sports operates in a growing part of the technology industry.

Its technology helps professional sporting organisations analyse athlete performance, video, tactics, and other information used by coaches and performance teams.

I think there is a strong long-term reason for clubs to spend more in this area.

Elite sport is enormously competitive. Even small improvements in player preparation, recruitment, injury management, or tactical decision-making can be valuable when teams are trying to gain an advantage.

Catapult can keep expanding by signing more organisations, adding more teams within existing customers, and encouraging those customers to use more of its software and technology.

The company has also broadened its offering through areas such as video analysis and athlete scouting.

For me, that creates the opportunity for Catapult to become increasingly embedded in how professional sporting organisations operate.

There are major leagues, clubs, universities, and sporting programs across the world, so I think the addressable market still gives the business plenty of room to run.

Megaport Ltd (ASX: MP1)

Megaport gives businesses a way to connect their networks directly to cloud providers, data centres, and other digital infrastructure.

I think that becomes more valuable as companies rely on a growing number of cloud services.

Artificial intelligence (AI) could create another source of demand for Megaport’s services.

AI workloads require enormous amounts of computing power and data to move between infrastructure. Businesses may need to connect to several cloud providers or specialised computing platforms rather than keeping everything in one place.

Megaport has also expanded into AI infrastructure through Latitude.sh, giving it exposure to customers looking for access to high-performance computing.

I like the broader idea here. As corporate IT infrastructure becomes more distributed, businesses need flexible ways to connect everything together. Megaport has built a global network specifically around solving that problem.

If cloud computing and AI infrastructure continue expanding, I think the amount of connectivity businesses require could grow substantially with them.

Foolish takeaway

I think Australian investors sometimes underestimate just how large the opportunity can become when an ASX-listed company succeeds internationally.

Breville, Catapult Sports, and Megaport already have businesses that extend well beyond Australia, but I think there is still plenty of territory left to capture.

I would be comfortable buying all three and giving their global ambitions years to play out.

The post 3 ASX shares I’d buy for their global growth potential appeared first on The Motley Fool Australia.

More reading

• Two ASX data centre stocks rated a buy
• Top brokers name 3 ASX shares to buy next week
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• 8 ASX shares just upgraded by the experts
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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 positions in and has recommended Catapult Sports and Megaport. The Motley Fool Australia has positions in and has recommended Catapult Sports. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Data centre and cloud computing businesses have been taking off over the past year as the AI revolution takes hold.

There are several Australian businesses positioning themselves to benefit from AI growth, some of which have already enjoyed impressive share price gains.

The brokers at UBS have released reports this week on companies they like in the sector.

Let’s see what they’re saying.

Goodman Group (ASX: GMG)

This company last week reported an operating profit of $2.67 billion for FY26, up 15.7% on the previous year, and said it was targeting earnings growth of 9% in the current financial year.

The company said:

The result reflects continued demand for Goodman’s urban locations and the growing contribution from data centre developments, where secured power, scarce land and customer and investment partner engagement are supporting a significant development pipeline.

Chief Executive Officer Greg Goodman said the strong operating result positioned the company well as a global provider of digital infrastructure.

He added:

Goodman has been active in data centres since 2005 and over the past five years, we’ve deliberately deepened our exposure to the sector by securing the sites, power and capital needed in major metro markets. Demand is structural across both logistics and data centres. Automation and robotics continue to drive logistics requirements while scarcity of power and land remains the key constraint on AI and cloud growth supporting data centre demand. Hyperscaler capex expectations continue to rise, with many customers facing undersupply into 2027 and 2028.

UBS said demand remained “incredibly strong”, with the company having a “compelling” offering.

UBS has a buy rating on the stock and a price target of $33.66 compared to $27.43 currently.

Megaport Ltd (ASX: MP1)

This cloud computing company last week announced FY26 revenue of $312.2 million, up 37%, while EBITDA was up 24% to $77.1 million.

Megaport Chief Executive Officer Michael Reid said:

Our team delivered an exceptional result in FY26. The Network business produced its strongest commercial performance to date, Latitude.sh expanded rapidly following acquisition, and our combined capabilities secured major long-term customer contracts across Compute, Network, and Storage. We have materially increased the scale of the business, broadened the markets we can serve, and created a much larger opportunity. Now our job is to execute against it.

UBS said the net outcome of the results report was “firmly in the positive” and estimated EBITDA of $624 million for Megaport in FY28.

The broker has a price target of $26.40 on Megaport shares, up from $24.20, compared to the current share price of $18.19.

The post Two ASX data centre stocks rated a buy appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I’d buy for their global growth potential
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• 2 ASX shares highly recommended to buy: Experts
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Motley Fool contributor Cameron England has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Megaport. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are 0.3% higher at 9,086.1 points on Monday.

Let’s start the new week with some fresh ratings from the experts

CSL Ltd (ASX: CSL)

The CSL share price is $170.37, up 1.3% today and down 21% over 12 months. 

CSL shares soared 23% last week after the company released its FY26 results and provided a positive outlook.

The CSL share price has ripped 85% since the healthcare sector began its long-awaited rebound on 3 June.

Morgans has a buy rating on this ASX 200 healthcare giant.

Analyst Derek Jellinek said: 

The FY26 result was broadly in line with expectations, with revenue of US$15.8bn (+3% vs guidance) and underlying NPATA of US$3.1bn.

Importantly, underlying Ig demand remains strong, Seqirus delivered seasonal influenza growth despite lower US immunisation rates and transformation savings reached US$176m ahead of target, although Vifor continues to face challenges.

While FY27 targets flat top line growth, as Vifor remains a significant drag, the earnings trajectory is becoming increasingly skewed towards recovery, supported by stabilising plasma economics, cost-outs and improved commercial execution.

We make modest changes to FY27-28 estimates and increase our blended DCF, PE and EV/EBITDA-based target price to A$187.71 on a multiple roll forward.

BHP Group Ltd (ASX: BHP)

The BHP share price hit a new record high of $67.72, up 3.9%, in early trading on Monday.

BHP released its FY26 report last week, and following this, John Athanasiou from Red Leaf Securities gave the miner a hold rating.

Athanasiou said (courtesy The Bull):

The company posted attributable profit of $US9.8 billion in full year 2026, up 9 per cent on the prior corresponding period. Revenue of $US58.8 billion was up 15 per cent.

The company’s copper portfolio is positioned to benefit from electrification, renewable infrastructure, power grid investment and data centre growth.

However, BHP remains heavily exposed to iron ore, leaving earnings sensitive to Chinese demand and commodity price movements.

The quality of BHP’s asset base, balance sheet and diversified portfolio leaves existing shareholders with little reason to sell.

However, after a solid run, prospective investors may be better served waiting for a potentially more attractive entry point.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is $33.60, down 0.7% today and down 12% over 12 months. 

Following Westpac’s 3Q FY26 update, Athanasiou put a sell rating on the ASX 200 bank share. 

He said: 

The bank remains well capitalised and continues to generate solid earnings, but the operating environment is becoming increasingly competitive.

Mortgage pricing is aggressive, deposit competition remains intense and the scope for sustained margin expansion appears limited.

Westpac’s dividend remains attractive, but investors should also consider opportunity cost.

We believe there are more compelling opportunities on the ASX, which offer stronger structural growth or more attractive valuations.

The post Buy, hold, sell: CSL, BHP, Westpac shares appeared first on The Motley Fool Australia.

More reading

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• How much must I invest in BHP shares to earn a $1,000 passive income in 2027?
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Motley Fool contributor Bronwyn Allen 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 BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I were starting out in the share market today, I would want businesses I could understand and feel comfortable holding for years.

I would also favour companies that already have strong positions but still have clear ways to grow.

For those reasons, these three would be high on my list.

Goodman Group (ASX: GMG)

Goodman develops and owns large-scale property used by some of the world’s biggest companies.

Its portfolio includes logistics facilities, warehouses, and data centres, with properties concentrated around major cities where land and access to power can be difficult to secure.

I think that makes Goodman a particularly interesting way for a beginner to gain exposure to some powerful long-term trends.

Online shopping and increasingly complex supply chains have created demand for well-located logistics space. At the same time, cloud computing and artificial intelligence are driving enormous investment in data centres.

Goodman’s advantage is that it already owns and controls property in locations where these facilities are needed.

It also has decades of experience developing major projects and works with large global customers that need substantial amounts of space.

For a beginner, I like that the basic investment idea is easy to follow. Businesses need somewhere to store goods and run computing infrastructure, and Goodman is focused on supplying that property in places where it can be difficult to build more.

I think that could keep creating opportunities for a long time.

ResMed Inc. (ASX: RMD)

ResMed is one of the world’s major providers of technology for treating sleep apnoea and other respiratory conditions.

Its devices help people breathe properly while they sleep.

But selling a sleep treatment machine is only the beginning. ResMed can generate recurring revenue by providing replacement products, while its digital technology helps patients and healthcare providers manage treatment.

There is also a large group of people around the world who have sleep apnoea but have either not been diagnosed or are not receiving treatment.

As awareness improves and more people seek help, ResMed has the opportunity to bring more patients into its ecosystem.

For someone new to investing, I think this is a relatively straightforward long-term story. ResMed provides products that address a genuine medical need, has spent decades developing expertise in the field, and can keep growing by helping more people receive treatment.

That is the type of business I would be comfortable learning to invest with.

Macquarie Group Ltd (ASX: MQG)

Macquarie is much more than an Australian bank.

It operates across asset management, commodities and financial markets, banking, advisory, and investing, with activities spread around the world.

I think that range is one of the reasons it could suit a beginner.

Macquarie has several ways to find opportunities as economic conditions change. Its asset management business can invest in areas such as infrastructure, energy, and real assets. Its commodities operations help businesses manage financial and physical risks, while its banking and advisory businesses provide further sources of earnings.

What interests me is the experience Macquarie has built in areas requiring large amounts of capital and specialist knowledge.

Infrastructure, renewable energy, digital networks, transport, and other major projects will continue requiring investment for decades. Macquarie has positioned itself to participate in many of those opportunities around the world.

The business can be more complicated than the other two, but I think the central idea remains simple. That is that Macquarie has built expertise in allocating capital and finding opportunities across markets.

I would be comfortable backing that capability over a long period.

Foolish takeaway

If I were a beginner, I would not feel any pressure to find the most exciting share on the market.

I would rather start with established businesses whose long-term opportunities I can understand, then give myself time to learn while those companies continue doing what they do well.

Goodman, ResMed, and Macquarie would give me that kind of starting point, which is why I would be happy to buy all three with the intention of holding for years.

The post 3 ASX shares I’d buy if I were a beginner today appeared first on The Motley Fool Australia.

More reading

• Two ASX data centre stocks rated a buy
• 2 ASX shares highly recommended to buy: Experts
• Could CSL shares really hit $200? Experts reveal their 12-month targets
• Top brokers name 3 ASX shares to buy next week
• 3 excellent ASX shares I would buy and hold for 10 years or more

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 positions in and has recommended Goodman Group, Macquarie Group, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Goodman Group and Macquarie Group. 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 become one of the ASX’s most closely watched growth shares.

The opportunity is substantial, but this is still a company where investors need to be comfortable with plenty of uncertainty along the way.

So, would I buy the shares and hold them for the long term?

Counter-drone technology has become increasingly important

The first reason I am positive on DroneShield is the problem it is trying to solve.

Small drones are now being used extensively in modern conflicts, while governments are also thinking more seriously about protecting airports, military bases, critical infrastructure, and other sensitive locations.

That creates demand for technology that can detect drones quickly and, when appropriate, stop them.

DroneShield specialises in this area. Its products use radio-frequency sensing, artificial intelligence, electronic warfare, and other technology to identify and respond to drone threats.

I think its focus is an important strength.

DroneShield has spent years developing specifically for the counter-drone market rather than treating it as a small part of a much larger defence business. I think that experience could become increasingly valuable as customers look for technology that has already been tested and can continue adapting as drones change.

The technology keeps moving forward

Another reason I would be comfortable holding DroneShield is that the company is not relying on one successful product.

Drone threats are changing quickly. New drones can use unfamiliar frequencies, move faster, and try to avoid existing detection methods.

DroneShield has been responding with regular software and hardware development. Its recently released RfAI-3 technology is designed to identify previously unseen drones rather than depending entirely on a catalogue of known signals.

It has also recently launched RfRecon, a portable system that helps military and security users understand activity across the radio-frequency environment.

I like this because it shows the opportunity extends beyond simply selling more of the same equipment.

If DroneShield can keep improving the technology already deployed with customers while developing new products around their needs, it could build much deeper relationships over time.

It is preparing for a much larger business

Manufacturing is another part of the story I think investors should watch closely.

There is little value in winning major defence orders if a company cannot produce enough equipment to fill them.

DroneShield has been investing heavily to increase its manufacturing capability in Australia, while also establishing production in Europe. Its first European-produced counter-drone system came off the production line earlier this year.

That gives the company more capacity to pursue larger programs while also bringing production closer to important overseas customers.

For me, that is an encouraging sign that management is building the business for a much greater level of demand than it has historically served.

I would still treat this as a high-risk investment

This is where I would be careful.

Defence orders can be large and unpredictable, procurement processes can take time, and future revenue may not arrive smoothly from one period to the next.

Competition is another consideration. The counter-drone opportunity is attracting major defence companies and specialist technology businesses around the world.

DroneShield also needs to keep investing rapidly enough to stay ahead as drone technology evolves.

That means I would be much more comfortable holding DroneShield as a relatively small part of a diversified portfolio than making it one of my largest investments.

Foolish takeaway

For an investor with a high tolerance for risk, I think DroneShield shares are worth buying and holding.

What keeps me interested is the possibility that counter-drone technology becomes a much larger and more permanent part of defence and security spending around the world.

DroneShield has already spent years developing specialist technology and is now building the manufacturing footprint needed to compete for bigger opportunities.

There could be plenty of volatility between here and there. But with a long timeframe and sensible position size, I think the potential reward makes that risk worth considering.

The post Are DroneShield shares worth buying and holding? appeared first on The Motley Fool Australia.

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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.

Reece Ltd (ASX: REH) shares are heading south on Monday after the plumbing products group released its FY26 results.

At the time of writing, the Reece share price is down 5.62% to $15.61. By comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.3% higher to 9,090 points.

The company reported higher revenue for FY26, although profit slipped. Reece also lifted its final dividend, giving shareholders some good news despite the drop in the bottom line.

So, does the result make Reece shares worth buying?

Let’s take a closer look.

Reece lifts its final dividend 13%

Reece declared a fully-franked final dividend of 13.40 cents per share.

That is almost 13% higher than the 11.86 cents per share paid a year earlier.

Combined with the 5.44-cent interim dividend, Reece will pay total dividends of 18.84 cents per share for FY26. That’s up 2.6% from 18.36 cents in FY25.

At the current share price of $15.61, the full-year payout gives Reece shares a trailing dividend yield of around 1.2% before franking credits.

Reece shares will trade ex-dividend on 6 October, with the record date on 7 October. The final dividend will then be paid on 21 October.

What did Reece report?

For the 12 months ended 30 June 2026, Reece reported sales revenue of $9.38 billion, up 4.5% from the previous year.

EBITDA was flat at $901 million, while EBIT fell 2.6% to $534 million. Net profit after tax (NPAT) declined 2.8% to $308 million.

Earnings per share (EPS) still increased 0.7% to 49.5 cents.

The Australian and New Zealand business was the stronger part of the result. Sales rose 8.3% to $4.2 billion, while EBITDA increased 7.3% to $532 million as volumes recovered.

Nonetheless, conditions were tougher across the US business. Sales increased 6.5% in US dollar terms, but EBITDA fell 4.5% as weak residential construction weighed on demand.

Reece also continued investing in its US network, opening 25 new branches during the year.

Are Reece shares a buy?

There were some positives in the result, particularly the recovery in Australia and New Zealand and the higher final dividend.

Management expects that momentum in ANZ to continue into FY27, helped by a solid pipeline of activity.

However, the US outlook remains less certain. Reece expects only modest growth there while residential new construction remains weak.

Investors also need to consider the price they are paying.

At $15.61, Reece shares are trading at around 32 times FY26 earnings. That’s not cheap for a company that reported lower profit for the year and is still dealing with a weak US housing market.

And while the dividend increase is a positive, the 1.2% trailing yield is unlikely to attract investors looking mainly for income.

The post Reece shares sink despite dividend boost. Is it a buy? appeared first on The Motley Fool Australia.

More reading

• Reece FY26 earnings: Revenue up, profit edges lower
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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 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.

Nuix Ltd (ASX: NXL) shares are starting the week with a bang.

Shares in the All Ordinaries Index (ASX: XAO) investigative analytics and intelligence software provider closed on Friday trading for $1.425. In morning trade on Monday, shares are swapping hands for $1.80 apiece, up 26.3%.

For some context, the All Ords is up 0.2% at this same time.

This strong outperformance follows the release of the ASX tech stock’s full year FY 2026 results.

Here’s what stoking investor interest.

Nuix shares surge on return to profit

The ASX All Ords tech stock enjoyed a strong year of growth.

Highlights included an 18.8% year-on-year increase in revenue to $263.2 million. The company credited this to broad-based expansion through both existing customer growth and new customer wins.

And earnings rocketed too. Nuix shares are getting a lift, with the company reporting adjusted management earnings before interest, taxes, depreciation and amortisation (EBITDA) of $59.8 million, up 60.4% from FY 2025, with margins increasing to 22.7% from 16.8% last year.

This helped drive a 154% year on year increase in the company’s underlying cash flow to $51.0 million.

On the bottom line, Nuix swung back into profit, achieving a statutory net profit after tax (NPAT) of $16.4 million, up from a $9.2 million loss in FY 2025.

Tapping into AI

Nuix shares could also get longer-term support from the company’s investments in AI across its operations.

“Shifts in enterprise AI deepen Nuix’s defensive moat and provide revenue opportunities,” the company said.

Nuix noted that its approach to AI adoption is designed to “scale capacity rather than reduce headcount”.

What did management say?

Commenting on the results lifting Nuix shares today, CEO John Ruthven said, “FY26 was a year of profitable growth and decisive action.”

Ruthven added:

Financial performance was robust across key metrics, with ACV [Annualised Contract Value] within our guided range, material increases in profitability and a substantial lift in cash generation. Nuix Neo continues to scale as the primary engine of profitable growth.

During the year, we made the structural changes required to shift from feature selling to platform value. We have restructured our go-to-market with enhanced commercial capability, established a clear AI strategy, and unified product and technology, backed by a one-off R&D Accelerator investment in FY27.

Looking to what could impact Nuix shares in the year ahead, Ruthven said:

We are building on continued underlying momentum. With enhanced commercial capability in place, continued investment in platform and AI capabilities, and a clear strategy for profitable growth, we are well positioned to capture the significant opportunity ahead.

The post Why are Nuix shares rocketing 26% on Monday? appeared first on The Motley Fool Australia.

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• Nuix share price on watch amid robust FY26 earnings and platform growth

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.

The GR Engineering Services (ASX: GNG) share price is in focus today after the company reported record FY26 EBITDA of $63.1 million on revenue of $493.2 million, and increased its fully franked dividend to 25.0 cents per share for the year.

What did GR Engineering Services report?

• FY26 revenue rose to $493.2 million (FY25: $479.0 million)
• EBITDA reached $63.1 million, up from $57.2 million in FY25
• NPAT increased to $39.0 million (FY25: $34.2 million)
• Final dividend lifted to 13.0 cents per share, full year total 25.0 cents (fully franked)
• Year-end cash position of $87.9 million with no debt
• Strong operating cashflow of $62.7 million for the year

What else do investors need to know?

GR Engineering has been awarded more than $1.0 billion in new contracts since 1 April 2026, supporting a robust pipeline into FY27 and FY28. Key contract wins cover a diversified commodity base, with over 60% of FY27 revenue expected from non-gold projects.

To fund growth and recent contract wins, the company announced a placement aiming to raise up to $100 million plus a $10 million share purchase plan. Together, these moves are set to boost pro-forma cash to $197.9 million post-raising, maintaining the company’s debt-free posture and providing flexibility for acquisitions and IT upgrades.

What’s next for GR Engineering Services?

Looking ahead, GR Engineering is forecasting FY27 revenue in the range of $825 million to $850 million. Over 90% of this guidance is already secured through existing contracts, underpinning strong confidence in future earnings.

The company’s focus remains on delivering contracted work across a growing pipeline, expanding across multiple commodities, and deploying new capital into operational capabilities and potential acquisitions.

GR Engineering Services share price snapshot

Over the past 12 months, GNG Engineering shares have risen 41%, outperforming the All Ordinaries Index (ASX: XAO), which is flat over the same period.

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The post GR Engineering Services posts record FY26 result and lifts dividend appeared first on The Motley Fool Australia.

More reading

• GR Engineering Services lands $275m Yitirrti project contract

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.