Category: Stock Market

I think the best long-term ASX 200 shares to own often have two things in common.

They already have strong positions today, and they still have ways to become more valuable over time.

That is the combination I like. I am not looking for a quick trade or a one-year bounce. I am looking for businesses that can keep widening their advantage, reinvest well, and reward patient investors over a decade.

Two ASX 200 shares I think could beat the market over the next 10 years are named in this article.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one ASX 200 share I would be happy to buy and hold for the next decade.

The group is best known for Bunnings. Its brand, scale, trade exposure, store network, and product range give it an enviable position in home improvement.

But I think the wider Wesfarmers group is what makes the investment case more interesting.

Kmart has become a powerful value retail business at a time when many households are still looking carefully at price. Officeworks gives the group exposure to work, study, technology, and business needs. Priceline and the broader health division add another long-term avenue, while OnePass and data-led retail initiatives could help the group build deeper customer relationships across its brands.

Wesfarmers also has balance sheet flexibility and a long record of disciplined capital allocation. That can be important over a 10-year period because opportunities will not always arrive in a neat, straight line. I like businesses that can invest through the cycle, make acquisitions when the price is right, and step back when the numbers do not stack up.

The valuation can be demanding sometimes, and retail conditions can still weaken. But I think Wesfarmers has the quality, brands, and management discipline to keep creating value well beyond the next result.

REA Group Ltd (ASX: REA)

REA Group is another ASX 200 share I think could beat the market over the long term.

The company owns realestate.com.au, and I think it is one of the strongest digital platforms in Australia.

The reason I like REA is that its platform sits at the centre of a very important decision: buying, selling, or renting property.

That gives it a powerful position. Buyers and renters want to search where the listings are. Agents and sellers want to advertise where the audience is. Advertisers, lenders, and property-related service providers also want access to that audience.

REA’s recent quarterly update showed how strong that audience remains. The company reported record Australian audiences in the March quarter, with 12.9 million average monthly visitors. It also noted that realestate.com.au attracts and engages buyers for 9 in 10 properties that sell on its platform.

But I do not think investors need to get lost in the numbers. The key point is simple: REA has a very hard-to-replicate position in Australian property.

I also think the business has more growth options than just charging more for listings. Premium products, data, seller leads, agent tools, property insights, financial services, and AI-enhanced search could all help increase the value of the platform over time.

The housing market can be uneven, and REA also often trades on a premium valuation. But I think great platform businesses can deserve premium valuations as their competitive position continues to strengthen.

Foolish Takeaway

A decade is a long time in the share market.

There will be weak markets, valuation resets, earnings disappointments, and plenty of moments when investors question even the best businesses.

But that is also why I like focusing on companies with strong foundations and multiple ways to grow. Wesfarmers and REA do not need one single theme to go perfectly right. They have built advantages that can keep working across different market conditions.

For patient investors, I think both ASX 200 shares have the quality to deliver market-beating returns over the next 10 years.

The post 2 ASX 200 shares I think could beat the market over 10 years appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Aristocrat Leisure, Brambles, Wesfarmers shares
• Why did ASX 200 retail shares lead the market last week?
• Down 17%: Why I’d buy and hold Wesfarmers shares
• With no savings at 40, I’d follow Warren Buffett’s approach to build wealth
• I’d aim for $1 million in retirement buying just 10 ASX 200 shares

Motley Fool contributor Grace Alvino has positions in Wesfarmers. 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.

Term deposits are a popular option with income seekers.

It isn’t hard to understand why. They can offer predictable interest payments and capital stability, which can be useful for conservative investors.

But ASX dividend shares can offer something term deposits cannot: the potential for growing income and capital growth over time.

There are risks, of course, and dividends are never guaranteed. But for investors comfortable with share market volatility, the three ASX dividend shares below could be worth a closer look.

Harvey Norman Holdings Ltd (ASX: HVN)

The first ASX dividend share to look at is Harvey Norman.

The retail giant has been part of the Australian market for decades and remains one of the country’s best-known consumer brands. Its stores sell furniture, bedding, electronics, appliances, and other household products.

Retail conditions can be tough when interest rates are high and households are watching their spending. But Harvey Norman has been through plenty of cycles before.

The company also has something that sets it apart from many retailers: a large property portfolio. This gives the business another layer of asset backing and adds depth to the investment case.

Harvey Norman shares are expected to offer a 6.75% dividend yield in FY 2027.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that could be worth a look is HomeCo Daily Needs REIT.

This property trust owns convenience-based assets focused on the things people use regularly. Its portfolio includes daily needs centres, large-format retail, health and services properties, and other convenience-focused locations.

This gives it a different profile from shopping centres that rely heavily on fashion, luxury goods, or discretionary spending.

Tenants such as supermarkets, pharmacies, medical services, childcare operators, and household goods retailers can provide a more resilient rental base. That can be useful when the economic outlook is uncertain.

HomeCo Daily Needs REIT is expected to provide income investors with a 7% dividend yield in FY 2027.

Transurban Group (ASX: TCL)

A final ASX dividend share to consider instead of term deposits is Transurban.

The toll road operator owns major transport assets in Australia and North America. These roads are hard to replicate and often form critical parts of city transport networks.

This gives Transurban exposure to long-term population growth, urban congestion, and essential travel routes. Revenue can also be supported by contracted toll increases across parts of its network.

A 4.15% dividend yield is expected from Transurban shares in FY 2027.

The post Forget term deposits and buy these ASX dividend shares in June appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares offering yields above 5% that most investors have never heard of
• Why did ASX 200 retail shares lead the market last week?
• ASX shares to buy now: How I’d invest a $1,000 lump sum
• 3 defensive ASX dividend shares I’d buy and hold
• 3 of the best ASX dividend shares to buy in June

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 Transurban Group. The Motley Fool Australia has positions in and has recommended Harvey Norman and Transurban Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

History tells us that the S&P/ASX 200 Index (ASX: XJO) traditionally brings returns of anywhere from between 7% and 9%. 

However it’s important to recognise this is an average, which means it’s not a steady rise every single year. 

Unfortunately for ASX investors, 2026 is shaping up as a down year for the benchmark index. 

Many pundits actually predicted this back at the start of the year. 

Inflation, rising interest rates and global conflict have all weighed on sentiment. 

At the time of writing the ASX 200 is essentially flat compared to the start of 2026. 

Why turn to dividend investing?

When capital gains are stagnating, dividend investing can provide investors with a valuable source of returns that is largely independent of share price movements.

Rather than relying solely on a rising market, dividend investors are paid to hold quality businesses that generate consistent cash flow and share a portion of their profits with shareholders.

This can be particularly attractive during periods of uncertainty, when market volatility makes capital growth harder to come by.

Better yet, some ASX dividend shares are currently offering yields that comfortably exceed what investors can earn from term deposits or savings accounts.

With that in mind, here are three ASX dividend shares that could help investors block out the market noise and lock in a yield of up to 11%.

Shaver Shop Group Ltd (ASX: SSG)

While Shaver Shop Group flies under the radar compared to blue-chip giants, it boasts one of the best yields on the ASX. 

The company engages in selling personal grooming products through their corporate and online stores and generates income from franchise stores. It retails various products across the oral care, hair care, massage, air treatment, and beauty categories.

The business currently offers a trailing grossed-up dividend yield of approximately 11%, including franking credits. 

What’s even more pleasing for investors, is this has been consistent dating back to 2017. 

Centuria Office REIT (ASX: COF)

Centuria Office REIT is Australia’s largest pure-play office real estate investment trust (REIT). It owns a $2.3 billion portfolio of office and commercial property assets throughout Australia.

Real estate stocks have largely struggled in 2026, and Centuria Office REIT has seen its share price fall as a result. 

However on the positive side, its expected FY26 distribution of 10.1 cents per security translates into a dividend yield of around 11%.

Fortescue Ltd (ASX: FMG)

Fortescue currently sits as one of the largest iron ore production and exploration companies in the world. 

ASX materials stocks like Fortescue have long been targeted by dividend investors for their consistent payouts. 

In good news for dividend investors, this is expected to continue in the next few years. 

This ASX dividend stock is expected to pay a yield between 4% and 5% until FY28. 

The post 3 ASX dividend shares to block out the noise and lock in a yield as high as 11% appeared first on The Motley Fool Australia.

More reading

• Top 10 ASX shares bought and sold by investors in May
• Buying Fortescue shares today? Here’s the dividend yield you’ll get
• Is this ASX dividend share a buy for its 11% dividend yield?
• Here’s the dividend forecast out to 2028 for Fortescue shares
• 2 ASX shares with dividend yields above 10%

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

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with the smallest of declines. The benchmark index edged a fraction lower to 8,729.4 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 to fall

The Australian share market looks set to fall on Tuesday despite a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 31 points or 0.35% lower. In the United States, the Dow Jones rose 0.1%, but the S&P 500 climbed 0.25%, and the Nasdaq pushed 0.4% higher.

Oil prices jump

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a strong session after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 5.75% to US$92.42 a barrel and the Brent crude oil price is up 4.6% to US$95.29 a barrel. This follows reports that Iran has ended peace talks and vowed to block the Strait of Hormuz.

BHP and Rio Tinto on watch

BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares will be on watch on Tuesday after a strong night of trade for their NYSE-listed shares. Both mining giants rose over 2% and ended the session within touching distance of new record highs. This appears to have been driven by another solid rise from copper prices overnight.

Gold price tumbles

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor session after the gold price tumbled overnight. According to CNBC, the gold futures price is down 1.7% to US$4,513.9 an ounce. Traders were selling gold after US-Iran peace talks abruptly ended and sent oil prices hurtling higher, sparking inflation and rate hike fears.

Buy Artrya shares

Artrya (ASX: AYA) shares could offer strong returns according to analysts at Bell Potter. This morning, the broker has retained its buy rating and $6.10 price target on the healthcare AI stock. This implies potential upside of almost 30% for investors over the next 12 months. It said: “The recognition of CCTA image analysis by CMS and Physicians to efficiently and effectively detect and diagnose CAD is a huge growth driver for image analysis providers. CCTA utilisation is surging and this provides a strong foundation for AYA’s superior product features to capture material market share over our forecast horizon.”

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

More reading

• Why BHP shares just got a big buy call
• Top 10 ASX shares bought and sold by investors in May
• Here are the top 10 ASX 200 shares today
• Worried about capital gains tax and ASX shares? Here’s why you shouldn’t be
• Leading brokers name 3 ASX shares to buy 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When most Australian investors buy into a simple ASX index fund, they normally do so for a simple reason. Index funds are designed for passive investment over long periods of time, making them a perfect fit for investors who don’t want to do stock picking themselves, but still wish to build long-term wealth using the share market.

Index funds promise simplicity and passivity, at the expense of achieving the kinds of millionaire-making returns that motivate most active stock pickers.

Until recently, that was a pretty spot-on assessment to have come to. But one ASX index fund has turned it on its head.

Korean stocks on the ASX

That would be the iShares MSCI South Korea ETF (ASX: IKO). Just as an ASX index fund like the iShares Core S&P/ASX 200 ETF (ASX: IOZ) tracks the S&P/ASX 200 Index (ASX: XJO), representing the largest 200 stocks on the Australian share market, IKO follows the MSCI Korea 25/50 Index. This index represents the best of the Korean public markets, and currently tracks about 80 South Korean companies.

Just as the ASX 200 represents a slice of Australian business, this index offers up the cream of Korean capitalism. Until recently, most ASX investors wouldn’t have batted an eye at this. After all, most advanced economies around the world have indexes that track their stock market’s performances. Most offer similar returns that average in the high single-digits over long periods of time.

However, the iShares MSCI South Korea ETF has put that adage to shame. And that’s a gross understatement.

Exactly a year ago, IKO units were going for $97.71 each. Today, those same units are worth $309.92 at the time of writing. That’s up an incredible 217.2% over the past 12 months. You can add another 1.46% on top of that to account for this ASX index fund’s dividend distributions too, if you’d like.

How has this ASX index fund returned more than 200% in a year?

So how on earth does a simple ASX index fund deliver a return like that? For comparison, the iShares ASX 200 ETF has risen by 3.38% over the same period.

Well, it seems a perfect storm has hit the Korean markets. The Korean stock exchange is top-heavy. The two largest stocks in the IKO ETF are SK Hynix Inc, and Samsung Electronics Ltd. These two companies alone currently account for 23.8% and 21.9% of this index fund’s weighted portfolio, respectively. The next-most significant holding only contributes 3.52%.

As it happens, SK Hynix and Samsung are both leaders in what is arguably the hottest industry in the world right now – chipmaking. As the boom in artificial intelligence (AI) investment has taken off over recent years, the fortunes of these beneficiaries have soared. Samsung shares have (as of the time of writing) rocketed by 512% since this time last year. SK Hygenix is up more than 1,000%.

As such, IKO owners have these two names to mostly thank for their newfound wealth.

It’s hard to say what’s next for this high-flying ASX index fund. Before you get FOMO and buy in though, it’s worth pointing out that, as of 30 April, IKO’s long-term average is 8.58% per annum since its inception in 2000. Only time will tell if ‘this time it’s different’.

The post Meet the simple ASX index fund up 220% in 12 months appeared first on The Motley Fool Australia.

More reading

• These 2 top performing ASX ETFs show why investors should look beyond Australia and the US
• Here are the 3 best performing iShares ASX ETFs over the last year
• After surging nearly 200%, is this the best ASX ETF in 2026?

Motley Fool contributor Sebastian Bowen 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.

May was an interesting month for Qantas Airways Ltd (ASX: QAN).

The first week brought more of the same pain that has characterised 2026: elevated jet fuel costs, Middle East uncertainty weighing on booking confidence.

Then the mood shifted. Reports of US-Iran peace negotiations sent oil prices lower. Qantas shares surged almost 5% in a single session on 26 May.

By month end, the stock had recovered meaningfully from its lows.

The broker community, which has been bullish on Qantas throughout the 2026 selloff, appears to be vindicated in at least one sense: the pain that drove the selling is beginning to ease.

What drove the May recovery in Qantas shares

The most important catalyst was the oil price.

Jet fuel is the single largest operating cost for any airline, and Qantas had been absorbing a severe fuel cost shock in 2026.

In its April update, the company flagged second half FY2026 jet fuel costs of $3.1 billion to $3.3 billion, more than double previous expectations, as Middle East conflict sent oil prices surging above US$105 per barrel.

The emergence of US-Iran peace talks pushed Brent crude from US$115 to US$103 per barrel in a single session on 26 May, directly reducing the near-term fuel cost outlook.

Furthermore, Qantas simultaneously increased its international unit revenue growth guidance for the second half of FY2026 to 4% to 6%. This increase was on the back of the extraordinary strength of demand on European routes despite the Middle East headwinds.

What brokers are saying about Qantas shares

The broker consensus on Qantas shares is unusually unified for a stock under such obvious pressure.

Macquarie upgraded Qantas shares to outperform following the 20% share price pullback from February highs, with a price target of $11.25. The broker cited demand-side resilience as evidence the selloff has been driven by temporary fuel cost concerns rather than any fundamental impairment of the business.

Ausbil co-portfolio manager Mans Carlsson described Qantas as the most undervalued stock his fund holds, noting that at an FY2028 price-earnings ratio of approximately 7 times, the market is pricing in an assumption that oil prices remain permanently elevated.

The tailwinds brokers keep coming back to

Beyond the near-term fuel noise, brokers point to three longer-term reasons for their bullish conviction on Qantas shares.

First, international travel demand has recovered well above pre-pandemic levels and continues to grow, particularly on premium cabins where Qantas earns the highest margins.

Second, the Qantas domestic business has maintained pricing discipline, with domestic unit revenue growth of approximately 5% guided for the second half of FY2026.

Third, Project Sunrise, Qantas’s planned direct flights from Sydney and Melbourne to London and New York, represents a new transformative revenue opportunity that is not yet fully reflected in broker forecasts.

The risks brokers acknowledge

The bear case on Qantas shares is not without merit.

A re-escalation of the US-Iran conflict could push oil prices back above US$110 per barrel, undoing the relief rally quickly.

 The airline is also exposed to Australian consumer confidence, which has been under pressure from the RBA’s rate hiking cycle.

Any deterioration in domestic traffic volumes would compound the international fuel cost headwind.

Foolish takeaway

The fuel cost shock that drove the 2026 selloff is beginning to ease.

If geopolitical tensions continue to ease, investors may have an opportunity to buy into the stock at an attractive price.

For investors who have been watching Qantas shares from the sidelines, the broker community is sending a clear signal that the opportunity may be closing.

The post Why brokers are turning bullish on Qantas shares after a strong May performance appeared first on The Motley Fool Australia.

More reading

• How Qantas shares soared ahead of the ASX 200 in May
• 3 reasons I would buy Qantas shares under $10
• 3 ASX shares that could benefit most if the US-Iran peace deal holds
• Virgin Australia, Qantas shares jump 8% higher this week. Are the ASX airline stocks a buy, sell or hold?
• If you invested $1,000 in Qantas shares a decade ago, here’s what they would be worth now

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 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.

One of the stories of the year has been the stark underperformance of ASX healthcare shares. 

As the calendars turn over to June, the S&P/ASX 200 Health Care Index (ASX: XHJ) sits almost 33% lower than at the start of the year. 

This makes it the worst performing sector in 2026 by some margin. 

ASX healthcare shares have been hit by a combination of earnings downgrades, rising cost pressures, weaker overseas earnings and investor concerns that growth across the sector is slowing. 

Because healthcare makes up a large part of the Australian market’s growth-stock universe, higher interest rates and a strong rotation into energy, mining, and resource stocks have amplified the sell-off.

For investors, this could be an intriguing opportunity to gain exposure to quality companies at a historic discount. 

Here are three of the largest ASX healthcare stocks that are tipped to rebound from historic lows. 

Pro Medicus Ltd (ASX: PME)

Pro Medicus enjoyed a fast start to the month of June. 

The medical imaging technology company rose over 9% yesterday following a key contract win.

Investors will be hoping this is the start of a long-term rebound. 

Despite yesterday’s 9% gain, it remains down 35% year to date. 

It closed yesterday at $144.46 per share. 

However brokers are confident it will rise significantly higher in the next 12 months. 

13 analysts offering a one year forecast have an average price target of $187.27 on Pro Medicus shares, indicating roughly 3% upside from current levels. 

11 of the 13 analysts rate the stock as a strong buy or buy. 

ResMed Inc (ASX: RMD)

While Pro Medicus shares started June off with a big rise, it was the opposite start to the month for ResMed shares. 

ResMed is a global leader in sleep technology.

Its share price fell more than 7% yesterday, and is now down 26% year to date. 

It now sits at a new 52-week low of $26.27. 

However this could now be a rare opportunity to scoop up this ASX healthcare stock at a significant value. 

Morgans expects a rebound over the next 12 months. The broker has a price target of $41.72 along with a buy rating. 

This indicates an upside potential of almost 59%. 

Sonic Healthcare Ltd (ASX: SHL)

It has been a similarly difficult 2026 for Sonic Healthcare shares. 

Its share price is down more than 14% year to date. 

However the global healthcare provider could also be set to recover in the near term. 

12 analysts forecasts via TradingView have an average one year price target of $23.40 on this ASX healthcare stock. 

This indicates an upside potential of 21% from current levels. 

The post Is June set to be the month of the ASX healthcare rebound? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why 4DMedical, IperionX, Pro Medicus, and Ventia shaares are storming higher today
• Why DroneShield, Lendlease, PlaySide, and ResMed shares are tumbling today
• Why are Pro Medicus shares rocketing 12% today?
• Pro Medicus renews $28m contract with Allegheny Health Network

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 positions in and has recommended ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Pro Medicus and Sonic Healthcare. 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 have enjoyed a tremendous run over the past year.

In Monday afternoon trade, shares in the S&P/ASX 200 Index (ASX: XJO) mining giant were up 0.6%, trading for $62.71 apiece.

That sees the ASX 200 stock up 66% over the past 12-months, smashing the 3.5% one-year gains posted by the benchmark index.

Atop those capital gains, BHP has also paid out two fully-franked dividends totalling a (rounded) $1.96 a share. BHP shares trade on a fully-franked 3.1% trailing dividend yield at the time of writing.

Taking those franking credits into account, the grossed-up dividend yield is 4.5%.

And looking ahead, Red Leaf Securities’ John Athanasiou believes Australia’s biggest mining stock is well-positioned to keep outperforming (courtesy of The Bull).

Here’s why.

Should you buy BHP shares today?

According to Athanasiou:

Iron ore sales continue to drive earnings, but the key long-term story is copper, where demand is structurally supported by electrification, grid investment and artificial intelligence related infrastructure.

Consequently, it gradually shifts BHP from a traditional cyclical miner towards a more diversified industrial metals compounder.

Athanasiou is also bullish on the outlook for BHP’s future passive income payments.

“Cash generation remains strong, supporting consistent dividends and capital management,” he said.

Summarising his buy recommendation on BHP shares, Athanasiou concluded:

The balance sheet is conservative, allowing flexibility through the cycle. While iron ore is still exposed to Chinese demand volatility, BHP’s scale and low-cost positioning provide downside protection.

What’s happening with the ASX 200 miner’s copper ambitions?

Over the past 12 months, the copper price has surged 42%, trading for US$13,636 per tonne on Monday afternoon.

And with global copper prices likely to remain strong due to electrification, grid investment, and artificial intelligence-related infrastructure demands Athanasiou mentioned above, many big Aussie miners have been working hard to increase their exposure to the red metal.

BHP has been leading the charge, with the miner producing 984,000 tonnes of copper in the first half of the financial year (H1 FY 2026). This saw copper bringing in more than half of BHP’s earnings for the first time.

The company reported underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) from its copper division of US$8 billion in H1. That was up 59% year on year, and it saw copper contribute 51% of BHP’s half-year underlying EBITDA.

And, as CEO Mike Henry revealed following the miner’s Q3 results release on 22 April, BHP shares are on track to continue increasing their exposure to the red metal.

“In copper, strong performance at Escondida and Antamina supports our expectation of delivering production in the upper half of FY26 group copper guidance,” Henry said.

BHP’s full-year copper production guidance is between 1.9 million tonnes and 2.0 million tonnes.

The post Why BHP shares just got a big buy call appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Top 10 ASX shares bought and sold by investors in May
• 3 ASX mining shares to buy: experts
• Buy, hold, sell: BHP, PLS Group, CBA shares
• Experts name BHP and these ASX 200 shares to buy this week

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.

Short selling is one of the most transparent forms of market pessimism available.

When professional investors bet against a stock, they not only demonstrate their conviction but also send a signal to the market.

This week, three well-known ASX shares are attracting significant short interest.

Should investors be worried?

WiseTech Global Ltd (ASX: WTC)

WiseTech is down 43% year to date and 63% over the past twelve months.

The short sellers who have been betting against WiseTech shares have been richly rewarded in 2026.

According to the latest ASIC short position data, 7.93% of WiseTech shares are currently held as short positions, placing it among the more heavily shorted stocks in the ASX technology sector.

The bear case rests on three pillars.

First, the company announced it would cut approximately 2,000 jobs as part of a two-year AI-linked restructuring program, nearly a third of its total workforce, attracting union intervention and a Fair Work Commission claim.

Second, the Q3 FY2026 update confirmed that one-off integration costs related to the E2open acquisition would reach US$45 million to US$50 million in FY2026, materially compressing profit margins.

Third, analysts have cut the consensus full-year FY2026 EPS forecast as earnings forecasts have been revised downward following the integration cost blowout.

However, there is also a credible counter-argument in favour of WiseTech.

WiseTech’s CargoWise platform is used by all of the world’s top 25 global freight forwarders. The platform has high switching costs, giving strong future revenue visibility.

Bell Potter sees strong upside from current levels, and the business model continues to generate strong recurring revenue despite the near-term headwinds.

The bears may be right in the short term, but the long-term case is considerably harder to dismiss.

Cochlear Ltd (ASX: COH)

Cochlear shares are down 61% year to date, making the company one of the worst-performing large-cap ASX stocks in 2026.

The short sellers targeting Cochlear are betting that the April earnings downgrade marks the beginning of a more sustained deterioration. Today, 4.7% of outstanding shares are reported as being held short.  

Their case rests on two concerns.

First, the 30% guidance cut was driven partly by hospital capacity constraints and declining hearing aid referrals in developed markets, trends that could persist for several quarters.

Second, Morgans retained a hold rating and cut its price target to $107.17, while Macquarie slashed its target from $239 to $115, signalling genuine broker uncertainty about the recovery timeline.

Nevertheless, the bull case must also be considered.

Cochlear holds approximately 50% global market share in a market with just 3% penetration of an addressable patient population exceeding six million people in developed markets alone.

Jarden sees significant upside from current levels, and CEO Dig Howitt has been clear that surgeries are being delayed, not cancelled. He points specifically to short-term disruptors such as the conflict in the Middle East as an explanation for this trend.

Lendlease Group (ASX: LLC)

Lendlease shares crashed 6% yesterday after the company announced the sale of its Milano Santa Giulia development rights for $250 million. This translated into the booking of a $175 million post-tax operating loss.

The stock is down 55% over the past twelve months.

The short sellers (6.37% of total shares) have the most straightforward case of the three.

Lendlease is selling assets at material discounts to book value, recognising significant losses in the process. This raises questions about whether the remaining portfolio is also overvalued on the balance sheet.

Furthermore, each divestment removes future earnings potential, making it harder to see how the business rebuilds to a meaningfully larger earnings base in the medium term.

However, Lendlease management pointed to more than three billion dollars in liquidity and a Moody’s investment grade credit rating, arguing the balance sheet can absorb the losses while the simplification strategy plays out.

Foolish takeaway

Short sellers are sometimes right, but they are rarely right forever.

WiseTech, Cochlear, and Lendlease each face real near-term challenges that justify some level of caution.

However, all three also carry longer-term qualities that suggest the current pessimism may be creating opportunities for patient investors willing to accept short-term volatility.

The post Short sellers are targeting these 3 ASX shares this week. Are they right? appeared first on The Motley Fool Australia.

More reading

• Top 10 ASX shares bought and sold by investors in May
• Here are the top 10 ASX 200 shares today
• 3 ASX tech shares I’d buy as they rebound from the AI selloff
• Why DroneShield, Lendlease, PlaySide, and ResMed shares are tumbling today
• Guess which ASX 200 stock is crashing 8% today on $250 million divestment news

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 Cochlear and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One of the hardest things for any management team to do is admit when something is not working.

On the 22 May 2026, Guzman y Gomez Ltd (ASX: GYG) did exactly that.

Co-CEO and founder Steven Marks had spent three months on the ground in Chicago.

His conclusion, delivered to shareholders, was that the US business required far more time and capital than originally expected.

He said:

Having spent the last 3 months in the US, I realized this was going to take significantly more time and capital than we had expected. The current performance of the US business could not justify continued investment of shareholder capital.

Guzman y Gomez shares surged as much as 20.58% on the day, closing 9.57% higher at $19.81.

Why the US exit is actually good news for Guzman y Gomez shares

At first glance, exiting the world’s largest fast food market sounds like bad news.

In reality, it removes one of the biggest overhangs that have weighed on Guzman y Gomez shares since the company’s ASX debut.

Guzman y Gomez entered the US market in 2020 with high hopes.

However, the business struggled to differentiate from rival Chipotle, and the challenges of operating in Chicago proved harder than management anticipated.

The US losses had been dragging on overall group numbers and absorbing management attention.

This attention could have been focused on the far more profitable Australian business.

The exit costs are contained.

Guzman y Gomez expects a one-off financial hit of between US$30 million and US$40 million, mostly non-cash.

Actual cash outflows are not expected to exceed US$15 million.

That is a manageable price to pay for a clean slate.

The Australian business is performing strongly

With the US distraction removed, investors can now focus on what really matters: the Australian growth story.

Guzman y Gomez lifted its Australia Segment underlying EBITDA guidance for FY2026 to approximately $85 million, representing growth of 29% on the prior year.

The company currently operates 237 restaurants in Australia, with a long-term target of 1,000.

That pipeline of 108 new sites already approved and in development represents a visible growth path.

Furthermore, the international master franchise model in Singapore and Japan is working well.

Singapore opened its 24th restaurant this week.

Both markets are guiding to further openings over the next 12 months.

These are capital-light, royalty-style exposures that cost Guzman y Gomez almost nothing to maintain and prove that the brand travels.

What Bell Potter thinks about Guzman y Gomez shares

The broker community responded decisively to the announcement.

Bell Potter upgraded Guzman y Gomez shares to a buy rating from hold with an improved price target of $24.50, from a prior target of $22.10.

The broker said:

We welcome the US exit as a previous overhang removed on the stock and see the switch to focusing on the core Australia opportunity as more beneficial to shareholders. We are confident in the medium-term Australia opportunity, backed by a pipeline of 108 restaurants, as well as the successful master franchising operation in Singapore and Japan.

However, with the US overhang now fully removed and the 29% Australian EBITDA growth confirmed, several analysts believe the Bell Potter target itself could prove conservative.

Citi, which had already been sceptical about the US prospects, called the exit decision the right one.

The broker noted there is “significant growth” in Australia where the long-term target of 1,000 restaurants has barely been scratched.

For context, Guzman y Gomez shares traded as high as $43 in December 2024, before the US concerns mounted.

A return even to half that level from today’s price of $19.81 would represent significant upside.

Foolish takeaway

Guzman y Gomez shares are not without risk.

The US exit signals a painful lesson learned and takes one major growth option off the table.

Competition in Australia from other quick service restaurant chains remains significant.

However, the decision removes what had been the most persistent valuation overhang on Guzman y Gomez shares since listing.

What remains is a 29%-growing Australian restaurant business with a clear path to 1,000 locations, a capital-light international franchise model, and a founder back in Australia focused entirely on the core opportunity.

For long-term investors, the case for Guzman y Gomez shares looks considerably cleaner today than it did a week ago.

The post Why Guzman y Gomez shares could shoot 30% higher after exiting the US market appeared first on The Motley Fool Australia.

More reading

• Here are the 10 most shorted ASX shares
• Why did ASX 200 retail shares lead the market last week?
• Top brokers name 3 ASX shares to buy next week
• Why these ASX 200 shares could shoot 20% and 50% higher
• A rare buying opportunity in 1 of Australia’s top shares?

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 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.