Category: Stock Market

Telstra Group Ltd (ASX: TLS) shares hit a multi-year high last week.

They have since fallen 6%.

That kind of reversal after a strong run tends to unsettle investors.

But is the selling a warning sign, or simply a natural pause after an extended rally?

The answer matters, because Telstra has become one of the more widely held defensive stocks on the ASX in 2026.

What happened

The pullback started when investors began locking in gains after the share price spiked to a multi-year high early last week.

That profit-taking was then accelerated when a flurry of brokers downgraded their outlooks on the stock.

Most notably, Shaw and Partners named Telstra as a sell this week, stating:

Telstra is currently trading at elevated levels, in our view, with its defensive appeal pushing the share price higher. We believe its limited growth potential and narrowing dividend yield make the risk-reward less attractive at current prices.

The bull case is still intact

The bear case on Telstra is primarily about valuation, not the business itself.

And the business itself continues to perform well.

Telstra shares are up 7% year to date and 10% higher than this time last year, even after this week’s pullback.

The company’s mobile division remains the dominant force in Australian telecommunications, with pricing power and subscriber growth continuing to support revenue.

The $1.25 billion on-market share buyback announced earlier this month is a signal of management’s confidence in the business at current prices.

In the first half of FY2026, Telstra delivered mobile services revenue growth of 5.6% and group cash EBIT growth of 14%, confirming the underlying momentum is real.

Analysts forecast a full-year FY2026 dividend of 21 cents per share, representing a 10% increase on FY2025, with UBS forecasting further dividend increases through to FY2030.

The valuation debate

The crux of the bear argument is that Telstra now trades at a premium to its historical average, with its defensive qualities fully priced in.

Brokers have an average price target of $5.33, implying a slight downside from current levels.

That is a tight spread between current price and consensus target, which limits the upside case for new buyers.

Furthermore, the defensive premium that Telstra commands could come under pressure if interest rates stay elevated, as higher rates make income from term deposits and bonds more competitive relative to dividend stocks.

That dynamic is one reason Shaw and Partners cited the narrowing dividend yield as a concern.

Foolish takeaway

The 6% pullback in Telstra shares does not signal anything fundamentally wrong with the business.

The mobile franchise is strong, the dividend is growing, and the buyback shows board confidence.

What the selloff does reflect is a valuation that had run ahead of the underlying growth rate.

For long-term income investors already holding Telstra, there is little reason to panic.

For new investors considering entry, the current pullback has created a marginally better starting point than last week.

The post Why are Telstra shares falling and should investors be concerned? appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares I’d buy for reliable passive income
• Why Telstra and these ASX dividend shares could be top buys for income
• Telstra shares fall 6% from a multi-year high: What happened, and is it time to sell up?
• How much is needed in superannuation to target a $3,000 monthly passive income?
• How to start investing in ASX shares in 2026

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

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a disappointing session and sank deep into the red. The benchmark index fell 1.45% to 8,592.9 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set to rise on Friday following a positive night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 55 points or 0.65% higher this morning. On Wall Street, the Dow Jones was up 0.05%, the S&P 500 rose 0.6%, and the Nasdaq stormed 0.9% higher.

Oil prices rise

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) will be on watch on Friday after a positive night for oil prices. According to Bloomberg, the WTI crude oil price is up 0.9% to US$89.46 a barrel and the Brent crude oil price is up slightly to US$94.31 a barrel. Traders are waiting for news on whether the US-Iran ceasefire will be extended.

Mineral Resources shares named as a buy

Mineral Resources Ltd (ASX: MIN) shares could be good value according to analysts at Bell Potter. This morning, the broker has retained its buy rating on the mining and mining services company’s shares with an improved price target of $80.50. It said: “Completion of the US$765m MIN-POSCO lithium transaction will accelerate balance sheet deleveraging paired with cash flows from persistent iron ore and lithium market prices. MIN’s mining services platform delivers a stable earnings stream that is expected to expand with internal and third-party volume growth. The company is well positioned to execute its next phase of growth with potential to reinstate fully franked dividends.”

Gold price recovers

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a good finish to the week after the gold price rebounded overnight. According to CNBC, the gold futures price is up 1% to US$4,527.9 an ounce. Traders were buying the precious metal after the release of US inflation data which was in line with expectations.

Champion Iron given hold rating

Champion Iron Ltd (ASX: CIA) shares are fully valued now according to analysts at Bell Potter. In response to the iron ore miner’s FY 2026 results, the broker has retained its hold rating with a trimmed price target of $4.85 (from $5.00). It said: “CIA expect to ramp-up high-grade concentrate (DRPF grade) production from mid2026. While we expect iron content price premiums for this product, full value-in-use premiums are unlikely to be realised until longer-term offtake is secured. Free cash flow should improve from FY27 as capex rolls off, supporting debt servicing and ongoing dividends. On valuation, we retain our Hold recommendation.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

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• Is this ASX materials stock a buy, hold or sell after sliding on earnings results?
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Kingsgate, Metcash, Woodside shares
• 6 ASX 200 shares just upgraded by the experts
• Why Eagers Automative, Endeavour, IPH, and Newmont shares are sinking today

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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.

Can $5,000 a year really turn into serious wealth?

I think it can. But the important part is not trying to make every dollar work overnight. It is letting repeated investing and time do the work together.

Investing $5,000 a year into ASX shares

Let’s assume an investor puts $5,000 a year into ASX shares and achieves an average annual return of 9%.

That return is not guaranteed. The share market will have strong years, flat years, and painful years. But 9% is a useful long-term target for understanding how compounding can work.

After five years, investing $5,000 a year at 9% could grow to roughly $32,000. That is a solid result, but it may not feel life-changing.

After 10 years, it could be worth around $80,000.

At that point, the portfolio is starting to look more meaningful. But the really interesting part comes later, when the investment returns start becoming larger than the annual contribution.

That is when compounding begins to feel more powerful.

The later years can change everything

After 20 years, investing $5,000 a year at 9% could grow to around $280,000.

After 30 years, it could grow to approximately $740,000.

Finally, after 34 years, the figure could be more than $1 million.

That is the part I find most interesting. The annual investment amount has not changed. It is still $5,000 a year. But the result becomes much larger because the returns are building on a bigger and bigger base.

This is why I think time is such an underrated part of investing.

A person does not need to find the perfect ASX share every year. They need a sensible plan, patience, and the discipline to keep putting money to work through different markets.

What would I invest in?

If I were investing $5,000 a year, I would focus on quality and diversification.

That could mean using an ASX exchange-traded fund (ETF) like the Vanguard MSCI Index International Shares ETF (ASX: VGS) for broad exposure, then adding individual ASX shares where I see strong long-term opportunities.

I would want businesses with durable demand, capable management, good balance sheets, and the ability to grow earnings over time.

I would not want the plan to depend on one hot stock, one sector, or one short-term theme. Over decades, the market will change many times. A more balanced approach gives investors a better chance of staying the course.

Foolish takeaway

So, can someone get rich by investing $5,000 a year into ASX shares?

I think the answer is yes, provided they give the plan enough time and avoid getting shaken out by every market downturn.

The most powerful part of this strategy is not the first year, or even the first decade. It is what happens when the habit keeps going for 20, 30, or 35 years.

That is when ordinary annual contributions can become something much more impressive.

The post Can you get rich by investing $5,000 a year into ASX shares? appeared first on The Motley Fool Australia.

More reading

• 3 top ASX ETFs for Gen Z investors to buy
• How to become a millionaire on a $70,000 salary
• An easy 2 ASX ETF portfolio to fund retirement 
• If I could buy only one ASX ETF for the next 10 years, this could be it
• VGS vs IVV: Which ASX ETF is better?

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 recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Most investors know they should be investing in Australian shares.

Far fewer know the most efficient way to do it.

The Betashares Australia 200 ETF (ASX: A200) solves that problem in a single trade, giving investors ownership of 200 of the largest companies listed on the ASX at a management fee of just 0.04% per annum.

This is the lowest of any Australian shares index ETF available on the market.

Or, to put it in other words, that is $4 per year on a $10,000 investment.

What A200 actually holds

A200 tracks the Solactive Australia 200 Index, which covers 200 of the largest ASX-listed companies by free float-adjusted market capitalisation.

The top holdings read like a who’s who of Australian business: Commonwealth Bank, BHP, CSL, NAB, Westpac, ANZ, Macquarie, and Wesfarmers all feature prominently.

Financials make up approximately 32% of the fund, materials approximately 20%, and healthcare around 10%.

That concentration in banks and miners is both a strength and a risk.

It means A200 captures the extraordinary dividend income that Australian banks and resource companies generate.

But it also means the fund underperforms in periods when technology or healthcare stocks lead global markets.

The income case

For income investors, A200 offers a particularly attractive proposition.

The fund pays distributions quarterly, in January, April, July, and October, with the most recent quarterly distribution of $1.20 per unit paid on 20 April 2026 carrying 85.14% franking.

That high franking level reflects the concentration of ASX banks and major miners in the portfolio, which historically pay some of the most tax-effective fully franked dividends available anywhere in the world.

For Australian taxpayers who can utilise those credits, their effective dividend yield rises significantly above the headline figure.

The performance track record

A200 was launched in May 2018 and has delivered annualised total returns of approximately 9.8% per annum since inception, closely tracking the ASX 200’s performance after fees.

Over the past twelve months, the fund has delivered a total return of approximately 2.4%, reflecting a market that has been held back by rate hikes and healthcare sector weakness even as resources and energy stocks surged.

A200’s 52-week high of $153.82 was reached on 2 March 2026, with the fund currently trading at approximately 6% below that peak.

This may represent a more attractive entry point than was available earlier in the year.

Why the 0.04% fee matters more than most investors realise

The difference between a 0.04% and a 0.20% management fee sounds trivial.

Over 30 years on a $100,000 investment growing at 8% per annum, the difference in ending wealth is approximately $85,000.

That is the compounding cost of paying a slightly higher fee, year after year, on the same underlying index exposure.

A200’s 0.04% fee is not just the lowest Australian shares ETF fee on the ASX.

It is meaningfully lower than its closest competitors, including Vanguard’s VAS at 0.07% and iShares’ IOZ at 0.09%, giving A200 a cost advantage that compounds in investors’ favour over time.

The risks

A200 is not a hedge against a broad Australian market downturn.

If the ASX 200 falls, A200 falls with it.

The concentration in financials and materials means the fund is particularly sensitive to housing market stress, commodity price cycles, and Chinese economic conditions.

Investors seeking global diversification will need to complement A200 with offshore exposure.

Foolish takeaway

A200 will, consistently and at minimal cost, deliver the return of Australia’s 200 largest businesses, including their fully franked dividends, reinvested quarterly into a growing portfolio.

For long-term investors who want a simple, low-cost core allocation to Australian shares, it is very hard to beat.

The post Why this ASX ETF could be the simplest way to own Australia’s 200 best businesses appeared first on The Motley Fool Australia.

More reading

• Building wealth with ASX ETFs? Don’t make these errors
• Top 10 ASX shares bought and sold in April

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

ASX materials stock Champion Iron Ltd (ASX: CIA) has been making headlines this week after tumbling on earnings news. 

Champion Iron is an iron ore miner, explorer, and developer operating in Quebec, Canada. The company currently owns and operates the Bloom Lake open-pit mine which exports high-grade, low-contaminant iron ore globally.

As Aaron Teboneras reported yesterday, investors were exiting their positions after Champion Iron released its fourth-quarter results.

What did the company report?

For the three months ending March 31, the company reported: 

• Champion Iron produced 3.4 million wet metric tonnes (wmt) of high-purity 66.2% iron ore concentrate during the quarter. This was up 8% from the same period last year.
• Revenue fell to US$414.5 million for the quarter, down from US$425.3 million a year earlier.
• Net income fell, dropping to US$23.2 million from US$39.1 million.

These results left investors seemingly disappointed, with the ASX materials stock falling over 4% on Thursday following the release. 

Its share price is now down 22% year to date. 

Bell Potter weighs in 

Following these results, the team at Bell Potter provided updated guidance on this ASX materials stock. 

Largely, the company delivered FY26 earnings below Bell Potter’s expectations, mainly due to weaker realised iron ore prices and higher operating costs. 

EBITDA was C$499 million compared with the broker’s forecast of C$541 million, while net profit came in at C$169 million versus expectations of C$207 million.

According to Bell Potter, the increase in unit costs was driven by lower sales volumes, logistics disruptions, severe winter weather and inventory de-stocking. The company also provided little additional operational commentary beyond its April production update.

CIA elected to pay a much lower final dividend to preserve cash liquidity given volatile macroeconomic conditions, breaking a track record of consistent C$0.10/sh semi-annual payments.

Hold recommendation maintained for ASX materials stock 

Based on this guidance, Bell Potter retained its hold recommendation. 

The broker also lowered its 12 month price target to $4.85 (previously $5.00). 

Based on this share price target, the broker sees little upside for this ASX materials stock. 

Champion Iron shares closed trading yesterday at $4.78. 

CIA expect to ramp-up high-grade concentrate (DRPF grade) production from mid 2026. While we expect iron content price premiums for this product, full value-in-use premiums are unlikely to be realised until longer-term offtake is secured. Free cash flow should improve from FY27 as capex rolls off, supporting debt servicing and ongoing dividends. On valuation, we retain our Hold recommendation.

The post Is this ASX materials stock a buy, hold or sell after sliding on earnings results? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• This ASX small-cap gold stock could surge 136% according to Bell Potter
• Why this ASX real estate stock is a compelling buy according to Bell Potter
• Warning: Champion Iron shares slide as profits take a hit
• Are Nufarm shares a buy, hold or sell after jumping 13% on half-year results?

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

The market frenzy that swept ASX gold stocks in 2025 and into the start of 2026 seems to have subsided. 

Investors were pouring into the safe-haven sector over the last 18 months. However it now appears many see opportunities elsewhere. 

Despite this shifting sentiment, the team at Bell Potter has just identified a new ASX gold stock and initiated coverage with significant optimism. 

The company in focus is Aurum Resources Ltd (ASX: AUE). 

Company overview 

Aurum Resources is a Perth-based gold exploration and development company. It is focused on its two projects in Côte d’Ivoire, West Africa:

• The flagship Boundiali Gold Project (BGP) and;
• The more recently acquired Napié Gold Project (NGP). 

According to Bell Potter, Aurum Resources is well funded, with a cash balance of $61.5m at end March 2026. 

It is undertaking an aggressive exploration and Resource growth strategy with the objective of building a substantial multi-asset gold business in Côte d’Ivoire. 

Current funding is sufficient to achieve key upcoming milestones of a Pre-Feasibility Study (imminent), Resource updates (2HCY26) and completion of a Definitive Feasibility Study (4QCY26).

Like many ASX small-cap stocks, it has experienced plenty of volatility this year. 

At the time of writing, it is down 23% year to date. 

However Bell Potter believes it can double in the next 12 months. 

Strong ownership and value mindset 

Bell Potter believes the ASX gold stock’s management and board are strongly aligned with shareholders.

According to the broker, the company is committed to cost effective strategies. 

A clear example is AUE’s owned and operated fleet of 16 diamond drill rigs which operate at a fraction of the cost of third-party rigs and under the direct control of AUE, bringing multiple benefits.

Bell Potter estimates that more than 90% of Aurum Resources’ spending in FY26 year-to-date has gone directly into exploration and evaluation activities, rather than overheads.

Aurum Resources has grown its mineral resources from 3.28 million ounces of gold in July 2025 to 4.38 million ounces by May 2026 at an estimated discovery cost of only A$15–17 per ounce. This is considered very cost-effective for the gold industry.

Significant upside for this ASX gold stock

Bell Potter has initiated coverage on this ASX gold stock with a speculative buy recommendation. 

The broker has also placed a price target of $1.30 on the company, which indicates an upside potential of 136% from current levels. 

AUE is one of the most successful gold exploration companies active in West Africa. Its management team has a demonstrated track record of discovery, Resource growth, project construction, development, operation and divestment. AUE is well funded, shows exploration upside and ongoing successful, value accretive drilling.

The post This ASX small-cap gold stock could surge 136% according to Bell Potter appeared first on The Motley Fool Australia.

More reading

• Is this ASX materials stock a buy, hold or sell after sliding on earnings results?
• Why this ASX real estate stock is a compelling buy according to Bell Potter
• Are Nufarm shares a buy, hold or sell after jumping 13% on half-year results?
• This ASX industrials stock could be set to race 20% higher: Expert
• This ASX small-cap could be set to rise 47%

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

BHP Group Ltd (ASX: BHP) shares are known for many things.

Among them, the S&P/ASX 200 Index (ASX: XJO) mining giant counts as the biggest stock by market cap on the ASX. A crown it recently reclaimed, and one it looks likely to hold onto for a while, from Commonwealth Bank of Australia (ASX: CBA).

BHP is also commonly associated with iron ore and copper.

And for good reason.

In the half year ending 31 December, the Aussie mining giant produced 134 million tonnes of iron ore for US$7.5 billion in earnings before interest, taxes, depreciation and amortisation (EBITDA).

The half year also saw BHP produce 986,000 tonnes of copper for EBITDA of US$8 billion.

The miner also produces sizeable amounts of coal and potash.

And, of course, BHP shares are widely recognised for the company’s reliable, twice yearly fully-franked dividends.

But what the miner isn’t well known for is its outperformance on the sustainability front.

And it may be some time yet before that changes.

BHP shares still reliant on diesel

Switching a global mining fleet comprised of thousands of heavy vehicles and drilling equipment from diesel to electric is no easy feat. No matter what Fortescue Ltd (ASX: FMG) Andrew ‘Twiggy’ Forrest would have you believe.

Which isn’t to say that BHP isn’t trying.

In 2019, the ASX 200 miner set a goal to reach net zero emissions by 2050.

And on its website, the company notes:

We know our stakeholders and partners are increasingly focused on our sustainability performance and use it as a key determinant in assessing BHP and our industry. We strive to continuously improve and exceed these expectations.

But speaking at The Australian Financial Review Mining Summit in Perth, Tim Day, BHP’s Western Australian iron ore asset president, admitted that the miner’s emission slashing goal was taking longer than forecast.

He pointed to the company’s giant ore hauling trucks as one of the bigger sticking points.

Day said (quoted by the AFR):

You’ve actually got to have the skills, you have to redesign entire operations to allow for it, having the charging units, the energy density in the batteries, and it has to be safe for everybody.

While he said the company is making progress on emissions reductions, he said BHP is “not quite ready” to run its entire mining fleet on batteries.

According to Day:

These are big machines, big trucks that we’re trying to run on batteries, and we’ve got a couple of them running around the Pilbara now, but we’re trying to work out how to deploy them as fast as we can.”

He added, “We do have solar … but we’ve got to get the diesel answer worked out.”

While BHP may be lagging Fortescue on the path to net zero, its stock value has charged ahead of the rival mining company.

Over the past 12 months, the BHP share price has gained 57% while Fortescue shares have gained 39%.

The post Why BHP shares are ‘not quite ready’ to go green appeared first on The Motley Fool Australia.

More reading

• Should I sell my BHP shares in June?
• Buying Rio Tinto, BHP or Fortescue shares? Here’s why CMRG matters
• Why BHP shares hitting a fresh all-time high could be just the beginning
• BHP shares near 52-week high, but China just made things more complicated
• How do ASX dividend shares compare to savings deposit rates 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX real estate stocks have been amongst the worst performing sectors in 2026. 

The S&P/ASX 200 Real Estate Index (ASX: XRE) is down roughly 10% year to date.

This sector in particular has been impacted by higher interest rates, tighter credit conditions, and reduced property valuations. 

These headwinds have all contributed to significant share price declines for many real estate stocks. 

However, it has also created buy-low opportunities for quality companies in the sector. 

One such opportunity is GemLife Communities Group (ASX: GLF). 

Company overview 

GemLife (GLF) is a developer, builder, operator and owner of over 55s lifestyle (land lease) communities (LLC). 

GLF generates recurring rental income from c.2,000 occupied homes and development profits from a further c.8,000 development sites representing 10+ years of pipeline.

Its share price has fallen almost 10% in 2026. 

However the team at Bell Potter is tipping a rebound following the company’s promising AGM operating update.

Tracking to expectations

GemLife Communities said at its AGM that trading is continuing broadly in line with expectations. 

The company reaffirmed its CY26 guidance, expecting earnings per share of 28.5c to 30.0c and around 420 property settlements. This is largely consistent with Bell Potter and market forecasts.

Management said average selling prices are tracking in line with, or slightly above, the second half of CY25 levels, while home build margins are expected to remain around 50%, similar to last year. The company also noted that settlements are continuing to track positively against its full-year target.

Bell Potter made small adjustments to its earnings forecasts for CY26-28 to account for higher expected development and operating costs, as well as updated interest rate assumptions. 

Overall, Bell Potter revised CY26-28 EPS forecasts by between -8% and +1%, reflecting lower margin assumptions due to higher development costs in CY27/28. 

Strong upside remains according to Bell Potter

Based on this guidance, the team at Bell Potter moderately reduced its share price target to $5.65 (previously $6.15). 

From yesterday’s closing price of $4.59, this indicates an upside potential of 23%. 

There is still some water to go under the bridge this year, but GLF’s initial guidance range remains achievable in our view with our focus on the ground work for CY27 given likely lower housing turnover due to budget driven residential housing uncertainty and potential for cost inflation contributed by Brisbane Olympics in 2030.

We continue to monitor sales progress vis-à-vis cashflow and the balance sheet (29.5% as at CY25), but today’s update is encouraging and consistent with our expectations.

The post Why this ASX real estate stock is a compelling buy according to Bell Potter appeared first on The Motley Fool Australia.

More reading

• Are Nufarm shares a buy, hold or sell after jumping 13% on half-year results?
• This ASX industrials stock could be set to race 20% higher: Expert
• This ASX small-cap could be set to rise 47%
• Which of these ASX shares hitting record highs is the best buy right now?
• Bell Potter is tipping a 40% rebound for this ASX consumer discretionary stock

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

BHP Group Ltd (ASX: BHP) shares fell around 1% on Thursday, to close the day at $60.55 a piece.

But the decline barely dented gains made recently. May was a strong month for the ASX mining stock.

Despite the latest decline, the shares are still 32% higher for the year-to-date and over 57% higher than this time 12 months ago. BHP shares are still trading close to an all-time high of $62.06 that the mining giant recorded in mid-May.

Now the question is, have BHP shares now reached a ceiling, or is there more to come in June?

What happened to BHP shares in May?

There have been a few tailwinds over the past month pushing the miner’s shares to record highs.

A boom in commodities prices and a new non-executive director appointment helped drive the miner’s share value upwards.

Investors have rotated back into diversified miners after the price of copper surged close to a multi-year high.

According to Trading Economics, copper futures climbed to an all-time high of over US$6.6 per pound in mid-May.

Stronger investor sentiment for the red metal comes off the back of signs that the US and Iran were moving closer to a deal that could reopen the Strait of Hormuz.

Copper is one of the world’s hottest metals right now, with strong demand for usage in electric vehicles, solar panels and data centres. And the demand isn’t going away anytime soon.

Around the same time, the miner announced the appointment of Mark Vassella as a Non-Executive Director. Vasella is an industry veteran, having served many years as CEO of BlueScope Steel Ltd (ASX: BSL). Investors appeared to be thrilled with the news.

The soaring share price also saw the miner regain the crown as the largest stock on the ASX. BHP now has a market capitalization of around $307 billion, according to Market Index.

Should I sell my shares in June?

I think BHP shares have now peaked. I’m not sure that we’ll see much more out of the mining giant’s shares over the next few months, but given the sustained tailwinds and strong copper demand, there is no sign that the shares will tumble any time soon either.

Analysts seem to agree.

TradingView data shows that 15 out of 18 analysts have a hold rating on BHP shares. The average $57.03 target price implies a potential 6% downside at the time of writing. 

Although forecasts that the shares could increase to a maximum target price of $68.63 imply there is potential for another 14% upside.

The post Should I sell my BHP shares in June? appeared first on The Motley Fool Australia.

More reading

• Buying Rio Tinto, BHP or Fortescue shares? Here’s why CMRG matters
• Why BHP shares hitting a fresh all-time high could be just the beginning
• BHP shares near 52-week high, but China just made things more complicated
• This ASX 200 stock is rising after a major bidding shake-up
• How do ASX dividend shares compare to savings deposit rates 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

James Hardie Industries plc (ASX: JHX) shares ended around 3% higher on Thursday afternoon. When the bell rang on the ASX the shares were trading at $30.95 a piece.

The latest jump means the share price has now rebounded around 19% from a six-month dip in mid-May.

The increase has also pushed the shares around just under 1% higher for the year-to-date, but they’re still around 12% lower than this time last year.

Why are James Hardie shares rebounding?

The global fibre cement product manufacturer’s share price dipped to just $26.02 on the 18th of May after the company as dwindling investor sentiment caused many to shy away from the stock.

But shortly after, James Hardie shares turned and started climbing higher. 

It looks like the main trigger was James Hardie’s fourth-quarter FY26 results, which it posted to the ASX ahead of the market open on Wednesday last week.

The result was mixed, with the company revealing a 25% year-on-year increase in net sales driven by additional sales from James Hardie’s AZEK acquisition, a US-based outdoor building products company.

Excluding that acquisition, organic net sales declined by 2% from FY25. And on the bottom line, the company reported a 75% year-on-year decline in NPAT.

Meanwhile, adjusted EBITDA was up 17% year-on-year, coming in above previous guidance figures.

It looks like the results were stronger than many expected, and the stabilised earnings result seems to have reignited investor confidence.

Buyers have been snapping up James Hardie shares in the company ever since the announcement. 

This is a sharp turnaround from earlier this year when concerns about the AZEK acquisition, company demand and weaker earnings guidance saw investors sell up.

Can they keep climbing higher?

Analysts seem to think so.

TradingView data shows that 17 out of 22 analysts have a buy or strong buy rating on the stock. The average $36.54 target price implies a potential 18% upside at the time of writing. And the $43.07 maximum target price suggests the shares could increase another 39% over the next 12 months.

Morgan Stanley is one broker with a buy rating on the James Hardie shares. 

Morgans also has a buy rating and recently commented that it seems the shares as undervalued at current levels. The broker said that market conditions remain subdued, with lower builder activity and affordability pressures. 

Morgans said that FY26 could be “chalked up” as a transformational but financially dilutive year. Meanwhile, FY27 is expected to be about margin and cash-recovery driven by synergies rather than a housing market improvement.

Macquarie said James Hardie was expecting soft, but stabilising conditions in the US which was a negative, and downgraded their price target on the company from $41.10 to $39.60, although this is still well above the average target price on TradingView.

The post James Hardie shares rebound 19%: Is it time to buy? appeared first on The Motley Fool Australia.

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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.