Category: Stock Market

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a small decline. At the time of writing, the benchmark index is down 0.1% to 8,818.5 points.

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

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up over 1% to $6.78. Investors have been buying this infant formula company’s shares after it received approval from the State Administration for Market Regulation (SAMR) to transition the two China label infant milk formula (IMF) product registrations that were acquired in connection with the a2 Pokeno facility to a2 branded products. A2 Milk’s CEO, David Bortolussi, said: “SAMR approval marks a significant milestone in our China growth strategy and Supply Chain transformation. It supports long-term growth in our core IMF business through market access and innovation, accelerates the development of advanced nutritional manufacturing capability, and captures attractive financial returns through incremental brand contribution and vertical margin capture.”

Lindian Resources Ltd (ASX: LIN)

The Lindian Resources share price is up almost 10% to 90.5 cents. This morning, this rare earths developer provided an update on construction progress at its Kangankunde Rare Earths Project in Malawi. Lindian Resources’ executive director, Zac Komur, commented: “Kangankunde is delivering outstanding progress, with construction, mining readiness, procurement, infrastructure and operational preparation all advancing strongly.”

Perenti Ltd (ASX: PRN)

The Perenti share price is up 5% to $2.40. This follows news that its Barminco business has been awarded the contract to provide underground mining services at Barrick Mining’s Fourmile Project in the United States. Management revealed that the contract has an estimated value of $275 million and a 45-month term. Work is due to commence in July. CEO Vanessa Torres said: “Securing the underground mining contract at Fourmile is an exciting development for our North America team. We look forward to expanding our relationship with Barrick through this project. This supports our strategy to expand operations in tier-one mining jurisdictions and continues our disciplined growth into the North American market with both Barminco and Swick.”

SGH Ltd (ASX: SGH)

The SGH share price is up 2.5% to $44.42. This morning, this diversified investment company announced plans to undertake a $500 million on-market share buy-back over the next 12 months. Management advised that it made the decision after a sustained period of strong operating cash flow and de-leveraging. It notes that its leverage has reduced below its through-the-cycle target of 2.0x.

The post Why A2 Milk, Lindian Resources, Perenti, and SGH shares are pushing higher today appeared first on The Motley Fool Australia.

More reading

• A2 Milk shares jump 7% on big China and special dividend news
• These ASX shares were buy rated even before today’s $500m buyback. How high could they go?
• SGH announces $500m buy-back and highlights financial strength
• a2 Milk Company gets China approval and plans $300m dividend
• Here are the top 10 ASX 200 shares today

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.

Well, that was fast!

Last week, investors were assured by United States President Donald Trump that the Strait of Hormuz would fully reopen for oil shipments and other cargo vessels on Friday. But over the weekend, Iran claimed that the vital shipping route was once again closed for business.

The original reopening of the Strait of Hormuz – which was responsible for some 25% of global oil and gas shipments prior to the Middle East war – came following a tentative peace deal between the US and Iran.

But that deal looks to be fraying amid the ongoing conflict between Israel and Iran’s Hezbollah allies in Lebanon.

In response to Israeli strikes in Lebanon, Iran’s leaders said the US is in breach of its agreement to not only halt attacks on its own territory but also to stop the fighting in Lebanon.

Trump took a decidedly different approach. The US president wrote on social media:

Iran must immediately stop their highly paid PROXIES in Lebanon from causing trouble. If they don’t, we’ll hit Iran very hard again, just like we did last week, only harder!!!

Despite Iran’s claims, oil tankers were still reported to be moving through the contested shipping route over the weekend.

Negotiations, spearheaded by US Vice President JD Vance, remain ongoing, with the latest reports indicating the strait may remain open.

Or not…

What does the Strait of Hormuz closure mean for ASX shares?

So far, ASX investors appear to be taking the news in stride.

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has climbed out of the red to be up 0.2%.

Technology stocks are having a tougher run of it, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) down 1% at this same time.

That’s likely because a breakdown of the peace deal and a renewed closure of the Strait of Hormuz will drive oil prices higher again. This, in turn, will stoke inflation and pressure central banks to raise interest rates.

ASX tech stocks are often more sensitive to interest rate moves, as they tend to be priced with future earnings in mind. And as rates go up, so too does the price of investing in those future earnings.

Gold shares also often take a hit amid concerns over rising inflation and rates. But most of the ASX gold stocks are bucking that historic trend today, with the S&P/ASX All Ordinaries Gold Index (ASX: XGD) up 2% on Monday. This follows a 1.3% increase in the gold price to US$4,211 per ounce.

And while the Brent crude oil price is up 0.7% to US$81.10 per barrel (according to data from Bloomberg), the S&P/ASX 200 Energy Index (ASX: XEJ) is down 0.9% today as traders hedge their bets on the outcome of the ongoing negotiations.

The ASX 200 Energy Index remains up 14.4% year to date.

What should I do if I’m buying ASX shares?

If you’re a day trader, issues like the closure and potential reopening of the Strait of Hormuz present some great opportunities to make, or lose, a lot of money.

If you’re buying ASX shares for the long term, the best thing to do is to try to avoid changing your investment plans based on the daily and weekly news cycles.

Long-term investors would do well to continue to focus on buying quality companies at a good price. Also, to look for strong management teams, solid growth prospects, and sizeable moats in place to keep would-be competitors at bay.

The post The Strait of Hormuz is closed again! What does that mean if you’re buying ASX shares? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: JB Hi-Fi, Westpac, Santos shares
• Guess which ASX 300 food stock is falling on bird flu fears?
• 3 reasons why the Wesfarmers share price is a buy
• Is the NAB share price good value after crashing 24%?
• Targeting a dividend yield above 10%? Try these shares on for size

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.

S&P/ASX 200 Index (ASX: XJO) shares started the day in the red on Monday but are rising in mid-morning trading.

ASX 200 shares are currently up 0.1% to 8,840.3 points.

Among the 11 market sectors, the consumer discretionary sector is in the lead today, up 0.6%.

The tech sector is the laggard, down 0.7%.

Meanwhile, on The Bull this week, three experts give us their opinions and recommendations on three ASX 200 shares.

Let’s take a look.

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is $78.94, up 1.3% today and down 18% in the calendar year to date (YTD). 

Toby Grimm from Baker Young has a buy rating on this ASX 200 consumer discretionary share.

Grimm said: 

The share price of this consumer electronics giant has significantly fallen since August 2025 in response to cost of living and supply chain cost pressures and increasing interest rates.

Despite these issues, JBH is expected to deliver positive sales and underlying earnings growth during the next two years.

The outlook for consumer electronics remains structurally sound. Diminishing rate hike expectations is another positive.

The stock is trading on more appealing multiples compared to 2025 and was recently offering an attractive dividend yield above 5 per cent.

Following three interest rate rises already this year, some experts expect the Reserve Bank’s next move will be a cut due to low GDP growth, recent softer inflation data, and consumer sentiment falling to one of its weakest levels in 50 years.

Given the market looks 6 to 12 months ahead, it seems that value investors may be looking for opportunities in ASX 200 retail shares today.

Santos Ltd (ASX: STO)

Santos shares are $7.31 apiece, up 0.1% today and up 19% YTD. 

Niv Dagan from Peak Asset Management has a hold rating on this ASX 200 energy share. 

Dagan said much of the near-term upside for Santos shares depends on successful execution of major projects.

Barossa is online and ramping up, while the Pikka phase 1 in Alaska has started production, with both expected to materially increase free cash flow at plateau rates.

Management is also targeting at least 60 per cent of free cash flow for shareholder returns and a $2.5 billion reduction in net debt by 2030.

However, the investment case still relies on commodity prices, capital discipline and the delivery of a large multi-year development pipeline across Australia, Papua New Guinea and Alaska.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is $35.03, up 0.1% today and down 10% YTD.

Christopher Watt from Bell Potter Securities has a sell rating on this ASX 200 bank share.

Watt explained: 

The business is improving on the metrics that matter, but the operating backdrop is weakening.

Mortgage applications since the Federal Budget in May are below the prior two quarters, pointing to a slowdown in housing credit growth into next year.

Proposed tax changes to capital gains tax and negative gearing have soured sentiment, and there’s no fresh financial guidance to lean on.

With Westpac’s stock trading near the top of its range amid a possible earnings downgrade, I see more downside than upside from here.

The Federal Government has proposed that the 50% capital gains tax (CGT) discount for assets held longer than 12 months be replaced by a cost base inflation indexation method from 1 July 2027. Additionally, a minimum 30% CGT rate will apply.

To incentivise new housing, investors in new residential properties will be able to choose between the two CGT methods when they sell.

Also, from 1 July 2027, investors will not be able to negatively gear established properties purchased for investment, but will be able to do so with new homes.

The post Buy, hold, sell: JB Hi-Fi, Westpac, Santos shares appeared first on The Motley Fool Australia.

More reading

• Why CSL, Westpac, and this big-name ASX 200 share could be sells
• 1 ASX dividend stock down 35% I’d buy right now
• Experts name 3 ASX 200 shares to buy
• 5 things to watch on the ASX 200 on Monday
• Invested in ASX 200 bank shares for dividends? This fundie prefers other stocks

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 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 S&P/ASX 300 Index (ASX: XKO) food stock came under heavy selling pressure on Monday. Inghams Group Ltd (ASX: ING) opened almost 13% lower after the poultry producer responded to Australia’s first mainland detection of the H5N1 bird flu strain.

During the first hour of trade, it managed to claw back some losses. At $1.98 per share just before midday, Inghams shares were down 5.6%, while the ASX 300 edged 0.1% higher.

Why are Inghams shares sinking?

Investors appear worried about what bird flu could mean for Australia’s poultry industry and the ASX 300 food stock in particular.

Before the market opened, Inghams announced it had moved to a state of high biosecurity vigilance following the detection of H5N1 avian influenza in wild birds in Western Australia.

Importantly, the virus has not been detected in poultry and Inghams has not reported any infections within its operations.

That wasn’t enough to calm investors.

Bird flu outbreaks have caused significant disruption to poultry industries overseas. They can lead to flock culls, production interruptions, higher costs, and supply chain disruptions. With those risks now on investors’ minds, many headed for the exits.

What is Inghams doing?

Inghams has moved quickly to strengthen protections across its operations.

The company is implementing enhanced biosecurity measures and working closely with government authorities and industry groups.

Its focus is on reducing the risk of infection entering its farming network and protecting its poultry assets.

For now, the response is precautionary. But investors appear concerned about what could happen if the virus spreads beyond wild bird populations.

A stock already under pressure

Monday’s sell-off comes on top of an already difficult year for shareholders.

Inghams shares have lost around 20% of their value in 2026.

The company has faced pressure from weaker earnings growth, operational challenges, and concerns over margins. Earlier this year, management cut guidance after reporting softer-than-expected profitability, disappointing investors and weighing on sentiment.

As a result, the stock entered Monday’s session with little room for further bad news.

What’s next?

The next phase will depend on whether the virus remains confined to wild birds.

At present, there is no evidence that commercial poultry operations have been affected. That’s an important distinction.

However, markets tend to look ahead rather than focus on current conditions. Investors are now assessing the potential risks to production, costs, and earnings should the situation escalate.

For Inghams, the latest update doesn’t change operations today. But it has introduced a fresh uncertainty at a time when investors were already questioning the company’s growth outlook.

That helps explain why the ASX 300 food stock suffered such a sharp reaction on Monday.

The post Guess which ASX 300 food stock is falling on bird flu fears? appeared first on The Motley Fool Australia.

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• Why Catapult Sports, Harvey Norman, Inghams, and Opthea shares are sinking today

Motley Fool contributor Marc Van Dinther 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 Wesfarmers Ltd (ASX: WES) share price has jumped an impressive 15% in the past month, as the chart below shows. This has significantly outperformed the S&P/ASX 200 Index (ASX: XJO), which only increased by 2.4% in the last month.

Despite the big rise of Wesfarmers, the business could still deliver good long-term returns from here, in my view.

I think there are a few reasons why the business still looks attractive to me, despite its higher price/earnings (P/E) ratio.

Excellent businesses for the economic conditions

Wesfarmers is best known for owning a number of leading retailers including Bunnings, Kmart and Officeworks.

I view Bunnings and Kmart as two of the leaders of their respective areas of the retail world of hardware and general merchandising.

They have built a strong market share based on market-leading prices, offering great value. I think these businesses are well-positioned to continue serving Australian households during this period of higher inflation and elevated interest rates – just like they did a few years ago.

If there is an economic slowdown during FY27, Wesfarmers could benefit from a larger market share. The more scale Wesfarmers can achieve, the stronger its cost advantages will be for customers and the stronger its economic moat.

Its exposure to lithium mining could also be helpful following a large rise of the lithium price over the last year. Rising production from its lithium project should flow through to its earnings and cash flow.

Ongoing earnings diversification

Despite having a great earnings base already, the company is regularly looking for opportunities to expand the addressable markets of its businesses, which is helpful for a blue-chip to continue growing at a pleasing pace and not stagnate.

For example, Wesfarmers has opened five Anko stores in the Philippines and it plans to open five more Anko stores by the end of FY27.

Another example is that Bunnings has expanded its auto care and pet range, enabling to compete in two large retail categories.

A third example is how Kmart has opened a large K home store, which is a dedicated home and living products store with an expanded range. It could be a challenger to the IKEA model.

In the coming years, I expect the business to continue to add to its product ranges and even add entirely new businesses, which should be supportive over the long-term for the Wesfarmers share price.

Great margins

The margins of Kmart and Bunnings are extremely impressive and suggest to me how much money the business could generate on reinvested profit in the coming years.

In the FY26 half-year result, Wesfarmers reported that Bunnings Group generated a return on capital (ROC) of 70.8% and Kmart Group made a ROC of 69.8%. Considering the store networks of these businesses are growing, the future still looks very promising for Wesfarmers.

Its return on equity (ROE) is very good, in my opinion. In the HY26 result, the ROE excluding significant items was 32.7%, up from 31.2% in HY25. This means it’s making great use of retained shareholder funds and it’s becoming increasingly profitable.

Wesfarmers is a great business, though it’s not the only ASX share that I think is a buy right now.

The post 3 reasons why the Wesfarmers share price is a buy appeared first on The Motley Fool Australia.

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• 5 ASX 200 shares I would buy if I were starting from scratch

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

National Australia Bank Ltd (ASX: NAB) shares have come under significant pressure recently.

On Monday, the NAB share price is trading at $37.68. That leaves the banking giant only modestly above its 52-week low of $35.48 and a long way from its 52-week high of $49.45.

In fact, NAB shares are now down approximately 24% from that high.

Does this pullback mean NAB shares are now good value?

Why has the NAB share price pulled back?

NAB is one of Australia’s largest banks and remains a major dividend payer.

But the banking sector is facing a more complicated backdrop than it was a year ago.

Higher interest rates can put pressure on borrowers, slow credit growth, and increase the risk of bad debts. At the same time, intense competition for deposits and home loans can make it harder for banks to grow margins.

Proposed changes to negative gearing could also create uncertainty for property investors and the broader housing market.

This is important because Australian banks are deeply tied to housing, business lending, consumer confidence, and the health of the economy.

When investors become concerned about these areas, bank valuations can come under pressure quickly.

What are brokers saying?

Broker opinion on NAB is mixed.

Citi recently placed a neutral rating on the bank’s shares with a $36.75 price target. Based on the current share price, that suggests the broker sees the stock as trading close to fair value.

Macquarie Group Ltd (ASX: MQG) is also neutral, though its $39.00 price target sits slightly above the current share price and implies potential upside of around 3.5%.

Morgan Stanley is more negative. It has an underweight rating and $34.50 price target on NAB shares, which implies potential downside of approximately 8%.

Morgans has a trim rating and $36.10 price target, which points to modest downside from current levels.

But it isn’t all doom and gloom. The team at UBS has a buy rating and $48.50 price target on NAB shares. If that proves accurate, the bank’s shares could rise by almost 29% from where they trade today.

And then there are dividends.

The consensus estimate is for fully franked dividends of 170 cents per share in both FY 2026 and FY 2027. This is flat on FY 2025.

Based on the current NAB share price of $37.68, that represents a forward dividend yield of approximately 4.5%.

Time will tell which broker makes the right call. But if UBS is on the money with its recommendation, big returns could be on the cards for investors over the next 12 months.

The post Is the NAB share price good value after crashing 24%? appeared first on The Motley Fool Australia.

More reading

• Invested in ASX 200 bank shares for dividends? This fundie prefers other stocks
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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia 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.

Depending on what sort of investor you are, targeting either capital growth or high dividends might be your priority.

For those who are targeting high dividends, it pays to keep an eye out for the stocks and funds that are paying out well, but which can still be bought cheaply on a yield basis.

I’ve selected three that might fit the bill. Let’s have a look.

Ophir High Conviction Fund (ASX: OPH)

The Ophir High Conviction Fund only pays out a dividend once a year. The good news is it’s not too late to buy in.

The ex-dividend date for the upcoming 35.17-cent-per-share dividend is June 30, so you’d have to move relatively quickly to be able to take advantage of it.

Given the Ophir share price is currently $2.86, the shares are paying a dividend yield of 12.3%.

It must be said that the shares are currently down 13.9% over a 12-month period, and are trading at a discount to the fund’s net asset value of $3.18.

Ophir’s top five holdings are in A2 Milk Company Ltd (ASX: A2M), MAAS Group Holdings Ltd (ASX: MGH), Mineral Resources Ltd (ASX: MIN), ResMed Inc (ASX: RMD), and SuperLoop Ltd (ASX: SLC).

Atlas Arteria Ltd (ASX: ALX)

Atlas Arteria has announced a 50% boost to its full-year dividend payout as it moves to fend off a takeover bid from Diamond Infraco.

The toll roads operator previously had a dividend target of 40 cents per share, but on Monday morning, it said in a statement to the ASX that this target would be increased to 60 cents per share.

At the company’s current share price of $5.10, that equates to a full-year dividend yield of 11.8%.

The company said on Monday:

The Independent Directors now intend to target paying distributions to ALX Securityholders of at least 60.0 cents per ALX Security in the 12 months following the end of the Offer Period made up of ordinary distributions of 40.0 cents per ALX Security and additional distributions of at least 20.0 cents per ALX Security. These distributions are expected to be funded by a combination of distributions from Atlas Arteria’s portfolio cash flows, proceeds from potential asset sales and, where appropriate, utilising corporate borrowing proceeds.

WAM Capital Ltd (ASX: WAM)

This fund has paid out a 7.75-cent dividend twice a year like clockwork in recent times, giving it a dividend yield of 10.1%.

Part of well-known investor Geoff Wilson’s stable, the fund’s portfolio has returned an annualised 14.5% return since 1999, compared with 8.5% for the S&P/ASX All Ordinaries Index (ASX: XAO).

The fund said in a recent statement that one of its top performers had been network-as-a-service provider Megaport Ltd (ASX: MP1), while telco Tuas Ltd (ASX: TUA) was a drag on the portfolio.

The post Targeting a dividend yield above 10%? Try these shares on for size appeared first on The Motley Fool Australia.

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• Atlas Arteria: Takeover offer lifted to $5.10 per security
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Motley Fool contributor Cameron England has positions in Megaport and Ophir Asset Management Pty – Ophir High Conviction Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I had $10,000 to invest in ASX 200 shares in FY27, I would focus on businesses with room to grow for years.

The market can move quickly, and FY27 will almost certainly bring surprises. But I think the best starting point is still quality.

With that in mind, these are three ASX 200 shares I would consider buying.

Netwealth Group Ltd (ASX: NWL)

Netwealth is one ASX 200 share I would want exposure to in FY27.

At its core, the company helps financial advisers and their clients manage wealth through a modern investment platform. But I think the more interesting point is what that platform allows advisers to do.

Advice businesses are under pressure to serve clients more efficiently, manage more paperwork, provide better reporting, and build portfolios that can be tailored to individual needs. That creates a strong reason for advisers to use technology that reduces friction. Netwealth sits inside that workflow.

The company benefits when more funds move onto its platform, but I think the long-term opportunity is about more than simply gathering assets. It is about becoming part of the operating system for wealth advice.

Australia has a large pool of retirement savings, and many investors will need help managing that money over time. If Netwealth can keep making advisers’ jobs easier, it should have a long runway.

Breville Group Ltd (ASX: BRG)

Breville is another ASX 200 share I would buy for FY27.

I see Breville as a business built around small moments that happen every day. Coffee in the morning, toast before school, dinner after work, and a weekend meal prepared properly.

That may sound simple, but those routines are exactly why the brand can be powerful. A well-designed kitchen appliance can become part of daily life, and customers who trust the brand may return when they upgrade or move into a new category.

Breville also has a global opportunity. The company is not limited to Australia, and its premium positioning can travel well if the products keep earning their place on kitchen benches.

The coffee category remains an important growth driver, but I also like the broader idea. Breville is trying to sell better tools for the home, not just appliances. That gives it a richer brand story than a standard retailer.

Overall, I think Breville’s design culture, international reach, and category focus make it one of the more interesting consumer growth shares on the ASX.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is the third ASX 200 share I would consider for FY27.

The jewellery retailer has built a business around fast product turnover, affordable pricing, and a store format that can be rolled out across many markets.

What I find interesting is the repeat nature of the purchase. Lovisa is not selling items that customers necessarily buy once every few years. Fashion jewellery can be tied to outfits, events, gifting, travel, seasons, and changing styles. That gives the business plenty of chances to bring customers back.

The model also has a useful simplicity. Small-format stores, high product density, and a sharp focus on one category can support attractive economics when execution is strong.

But the global store opportunity is the main attraction in my opinion. Lovisa has already shown that the concept can work outside Australia, and I think there is still room to expand in existing and new markets. And if management continues to execute, Lovisa could be a much larger company over the long term.

Foolish takeaway

If I were investing $10,000 in ASX 200 shares in FY27, I would want businesses that can become more valuable through execution rather than simply waiting for the economy to improve.

Netwealth, Breville, and Lovisa all have different growth engines, but each has a clear way to keep expanding if management keeps making good decisions.

That is the appeal for me. FY27 may bring volatility, but quality businesses with long runways can still reward investors who give them enough time.

The post Where I’d invest $10,000 in ASX 200 shares in FY27 appeared first on The Motley Fool Australia.

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

Temple & Webster Group Ltd (ASX: TPW) has been a painful share to own over the past year.

The online furniture and homewares retailer has fallen heavily, which means investors have clearly lost confidence in the near-term outlook.

In fact, Temple & Webster shares ended last week at $5.67, which is 80% below its 52-week high of $29.06.

Despite the market falling out of love with it, I think the longer-term opportunity is still worth taking seriously.

But it is important to remember that this is a higher-risk ASX growth share. Even so, I think Temple & Webster could be worth the risk for patient investors.

A large market moving online

Furniture and homewares is a big category. People need beds, sofas, tables, chairs, rugs, lighting, storage, office furniture, outdoor settings, and décor. Those purchases can be delayed when conditions are tough, but the category does not disappear.

The long-term question is how much of that spending keeps shifting online.

I think Temple & Webster is well placed if more customers become comfortable buying larger household items digitally. Online shopping allows people to compare products, styles, colours, dimensions, reviews, and prices without walking through multiple stores.

That can be especially useful in furniture, where range matters.

A traditional store has limited floor space. Temple & Webster can offer a much broader catalogue, giving customers more choice across styles and price points.

The model has attractive potential

The appeal of Temple & Webster is not just the online furniture theme.

It is the possibility that scale can make the business more efficient over time.

As the brand grows, the company should have more data on what customers want, which products convert, where demand is strongest, and how to improve the buying experience. Better data can help with marketing, product range, pricing, and customer retention.

The business can also keep improving delivery, supplier relationships, and private label opportunities.

That does not guarantee success. Execution will be crucial. But I like businesses where the model can become stronger with scale, and Temple & Webster has that potential.

Why I’d consider buying

I think the market can become too focused on the short-term discomfort around consumer discretionary retail.

Consumer spending is under pressure at times, just like now as interest rates rise, and furniture can be a lumpy category. But investors buying today are not buying the same share price as a year ago.

They are buying a business with a lower market valuation and, in my view, a long runway if management keeps improving the customer proposition.

Temple & Webster will suit investors who can accept volatility. It is unlikely to feel like a smooth ride. But I think the online opportunity, brand position, and operating leverage potential make it one ASX growth share worth considering after its heavy fall.

Foolish takeaway

Temple & Webster is not a defensive stock. It is a growth share that requires patience and a tolerance for uncertainty.

That said, the business is operating in a large category where online penetration can still grow. If the company keeps building trust, improving range, sharpening logistics, and using data well, the current weakness could eventually look like an opportunity.

I think this is a share for investors who can look past a difficult period and focus on what the business could become over the next five to 10 years.

The post Down 80%, could this ASX growth share be dirt cheap? appeared first on The Motley Fool Australia.

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

Some investors spend years searching for the perfect ASX share.

They wait for the perfect entry point, the perfect broker note, the perfect chart setup, or the perfect market conditions.

The bigger opportunity may be much simpler.

For many investors, the most powerful strategy is to just buy quality ASX shares and exchange traded funds (ETFs) regularly, then give the portfolio enough time to compound.

It sounds almost too basic, but that is exactly why it can work.

The habit matters more than the headline

Markets are noisy. There will always be a reason to wait. Interest rates may look uncertain, valuations may look stretched, earnings season may be approaching, or the economy may feel too fragile.

The problem with waiting for comfort is that markets rarely offer it at the right time.

Regular investing removes some of that pressure. Instead of trying to guess the best day to buy, investors put money to work consistently across different market conditions.

That means some purchases will be made when prices are high, some when prices are low, and many when the outlook feels unclear.

Over long periods, this can help investors build a meaningful portfolio without relying on perfect timing.

Where should you invest?

Regular investing works best when the money is going into assets that can grow over time.

That could mean broad ASX ETFs such as the Vanguard Australian Shares Index ETF (ASX: VAS), which gives investors exposure to a large basket of local companies, or the iShares S&P 500 ETF (ASX: IVV), which provides access to many of the largest businesses in the United States.

It could also mean high-quality companies with long growth runways.

Goodman Group (ASX: GMG) has exposure to logistics, industrial property, and data centres, Wesfarmers Ltd (ASX: WES) owns strong retail and industrial businesses, including Bunnings and Kmart, and Xero Ltd (ASX: XRO) operates in cloud accounting and small business software.

These types of investments can still fall in value, sometimes sharply. But the long-term goal is to own assets that become more valuable as earnings, cash flow, dividends, and market positions improve.

The strategy is simple, but the discipline is hard

The mechanics are straightforward. Choose a regular amount to invest, pick a small group of quality shares or ETFs, add money consistently, reinvest dividends where appropriate, and review the portfolio occasionally rather than obsessing over every daily move.

The harder part is emotional. Investors need to keep going when markets fall, when other people appear to be making faster money, and when the portfolio feels like it is moving too slowly.

This is where a simple plan can help. A regular investment schedule reduces the temptation to keep changing strategy. A focus on quality reduces the risk of chasing weak businesses and a long time horizon gives the portfolio space to recover from inevitable setbacks.

The key takeaway

Getting rich from ASX shares does not require constant trading or finding the next market darling.

A more realistic path is built around regular investing, quality assets, dividend reinvestment, patience, and time.

It may feel slow at first. But slow can become powerful when it is repeated for long enough.

For investors who can stick with the process, this simple ASX investing strategy could quietly become one of the best wealth-building decisions they ever make.

The post The ASX investing strategy that could quietly make you rich appeared first on The Motley Fool Australia.

More reading

• Down but not out: 3 ASX tech shares ripe for a rebound
• 4 ASX ETFs to help you sleep through market crashes
• Buy, hold, sell: CSL, Steadfast, and Wesfarmers shares
• How I’d invest $250 a week in ASX shares to aim for $700,000
• New to investing? 3 ASX shares to set and forget until 2036

Motley Fool contributor James Mickleboro has positions in Goodman Group and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Wesfarmers, Xero, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Goodman Group, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.