Category: Stock Market

ASX ETFs can form the backbone of a resilient portfolio designed to withstand market crashes and long-term volatility.

Market downturns are inevitable. The challenge for investors isn’t avoiding them entirely but building a portfolio that can withstand the volatility and keep compounding over time.

One approach is to combine broad Australian shares, global equities, currency protection, and defensive fixed income assets.

Here’s an example of a diversified four-ETF portfolio designed to help investors sleep a little easier when markets become turbulent.

Vanguard Australian Shares Index ETF (ASX: VAS)

This popular Vanguard ASX ETF provides exposure to around 300 of Australia’s largest listed companies for a management fee of 0.07% per annum.

Its two largest holdings are typically Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP), giving investors exposure to both the financial and resources sectors.

VAS forms the foundation of the portfolio with a 40% weighting. Australian shares have historically delivered attractive dividend income and franked distributions, making them particularly appealing for local investors.

The ASX ETF’s role is to provide long-term growth and income while maintaining exposure to Australia’s strongest businesses.

BetaShares Global Shares ETF (ASX: BGBL)

A portfolio focused solely on Australia risks missing opportunities overseas. That’s where BGBL comes in.

The ASX ETF tracks a broad index of developed-market shares and charges a management fee of just 0.08%.

Its largest holdings include NVIDIA Corp (NASDAQ: NVDA) and Microsoft Corp (NASDAQ: MSFT), two companies benefiting from powerful long-term trends such as artificial intelligence and cloud computing.

A 30% allocation provides global diversification and reduces reliance on the Australian economy.

The ETF’s role is to drive capital growth through exposure to thousands of leading businesses across North America, Europe, and Asia.

Vanguard MSCI Index International Shares (Hedged) ETF (ASX: VGAD)

This ASX ETF complements BGBL by providing international share exposure while hedging foreign currency fluctuations back into Australian dollars.

The ETF charges a management fee of 0.21% and also has significant exposure to global giants such as Microsoft and Apple Inc (NASDAQ: AAPL).

A 15% allocation helps reduce the impact of sharp currency movements, which can sometimes add volatility during uncertain periods.

Its role is to provide global growth exposure while smoothing returns for Australian investors who prefer less foreign exchange risk.

iShares Core Composite Bond ETF (ASX: IAF)

No sleep-well portfolio would be complete without a defensive allocation.

The iShares Core Composite Bond ETF invests in a diversified portfolio of Australian government and investment-grade corporate bonds for a management fee of 0.10%.

Its largest exposures are typically Australian Commonwealth Government bonds and state government securities.

While bonds generally won’t match shares for long-term returns, they can provide valuable stability when equity markets come under pressure.

A 15% allocation to this ASX ETF acts as the portfolio’s shock absorber, helping reduce overall volatility and providing liquidity during market sell-offs.

A portfolio built for all seasons

With 70% allocated to growth assets, 15% to currency-hedged international shares, and 15% to bonds, this portfolio balances growth and defence.

No portfolio is immune from market crashes. However, combining these four ASX ETFs could help investors stay invested through the inevitable ups and downs that accompany long-term wealth creation.

The post 4 ASX ETFs to help you sleep through market crashes appeared first on The Motley Fool Australia.

More reading

• Here’s where I would invest $5,000 in ASX shares
• 10 amazing ASX ETFs for the next decade
• Invested in ASX 200 bank shares for dividends? This fundie prefers other stocks
• Close to retirement? 4 ASX shares for decades of income
• 5 ASX 200 shares I would buy if I were starting from scratch

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, and Nvidia. The Motley Fool Australia has recommended Apple, BHP Group, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The rare earths boom has created some extraordinary winners on the ASX. But few can match the performance of little-known ASX mining stock Sunrise Energy Metals Ltd (ASX: SRL).

The strategic minerals developer has seen its share price explode more than 2,300% over the past 12 months as investors piled into companies with exposure to critical minerals and alternative supply chains.

So, how much would a $5,000 investment in this ASX mining stock made a year ago be worth today?

A life-changing return

Any investor who put $5,000 into Sunrise Energy Metals shares on 22 June last year would have plenty to celebrate.

At the time of writing, the ASX mining stock is changing hands at $17.55 each. That represents a staggering gain of approximately 2,304% over the past year.

As a result, a $5,000 investment made 12 months ago would now be worth around $115,200.

That’s the kind of return most investors only dream about.

Of course, gains of this magnitude are rare and typically reflect a dramatic change in market expectations about a company’s future prospects.

Why investors are excited

This $2.75 billion ASX mining stock sits at the centre of an emerging opportunity involving scandium, one of the world’s rarest and most strategically important metals.

Scandium is classified as a rare earth element and is prized for its ability to strengthen aluminium while improving flexibility, heat resistance, and corrosion resistance. These properties make it valuable for aerospace applications, defence technologies, fuel cells, and next-generation semiconductor manufacturing.

Australia holds one of the world’s highest concentrations of scandium resources. Importantly, New South Wales is believed to be the only region globally where scandium could potentially be mined as a primary commodity.

That has placed Sunrise Energy firmly on investors’ radar.

Earlier this year, Beijing introduced export controls on scandium and several other rare earth elements, raising concerns about future supply availability across Western markets. As governments and manufacturers seek alternative sources, attention has increasingly turned toward projects outside China.

The Syerston opportunity

At the heart of Sunrise Energy’s investment case is its Syerston project in New South Wales.

The company believes the project hosts one of the world’s largest and highest-grade scandium deposits.

If successfully developed, Syerston could become a major low-cost supplier of scandium to Western economies. Management’s vision includes a standalone mine and processing facility capable of supplying material for 5G and 6G semiconductor chips, fuel cells, and advanced aluminium alloys used in both civilian and military applications.

This strategic positioning helps explain why the market has become increasingly optimistic about the future of the ASX mining stock.

Buy, hold, or sell?

Despite the remarkable share price performance, analyst coverage remains limited.

According to TradingView data, only one broker currently covers the ASX mining stock. Encouragingly, that broker has assigned Sunrise Energy a strong buy rating and a $20.00 price target.

Based on the current share price of $17.55, that suggests potential upside of approximately 14%.

The key risk is execution. Sunrise Energy still needs to successfully finance, develop, and commercialise its flagship project. However, if demand for critical minerals continues growing and the company delivers on its plans, investors clearly believe there could be more gains ahead.

The post This ASX mining stock turned $5,000 into an absolute fortune appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday
• Here’s where I would invest $5,000 in ASX shares
• Is the only way up for WiseTech shares after a 65% fall?
• 8 ASX shares with 30% to 220% upside ahead: Experts
• 4 ASX ETFs to help you sleep through market crashes

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 team at Ord Minnett has been busy running the rule over a number of big-name ASX 200 shares recently.

Does the broker rate them as buys, holds, or sells? Let’s see what it is saying:

CSL Ltd (ASX: CSL)

Ord Minnett continues to rate CSL shares as a hold with a $117.00 price target. This is largely in line with its current share price of $116.32.

The broker believes the market is underestimating the challenges that its CSL Vifor business is facing and is expecting earnings below consensus estimates. It explains:

Ord Minnett has reviewed its CSL (CSL) model further with a focus on its Vifor nephrology business that is facing challenges which, in our view, are being underestimated by the broader market. Our estimates for Vifor revenue and operating profit in FY27 are below consensus estimates by 15% and 32%, respectively, while our forecasts for operating profit across the FY27–FY29 horizon are more than 10% below market expectations.

Our target price on CSL is unchanged at $117.00 post this latest review. Despite the apparent significant upside [previously] on offer, Ord Minnett maintains its Hold recommendation on the stock given the significant uncertainty around the earnings outlook and broader issues as management attempts to reset the business.

Steadfast Group Ltd (ASX: SDF)

Takeover target Steadfast has been given a hold rating and $6.00 price target by Ord Minnett. This compares to its current share price of $5.15.

It notes that the insurance broker recently received a takeover bid of $6.00 per share from a consortium led by American wholesale insurance distributor Amwins. Ord Minnett believes that this may be the best the shareholders get. It said:

Absent the current bid, the chances of realising a value for the company of $6.00 a share any time soon would appear remote, even if that price is towards the bottom end of its historical trading range. We make no changes to our EPS estimates but raise our target price to $6.00 from $5.55 and lower our recommendation to Hold from Buy.

Wesfarmers Ltd (ASX: WES)

Finally, Ord Minnett has also put a hold rating on Wesfarmers shares with a price target of $75.00. This is below its current share price of $85.76.

It was pleased with its strategy day presentation, but believes its shares are fully valued based on a sum of the parts valuation. It commented:

Wesfarmers (WES) delivered a well-received presentation at its strategy day where the retail and industrial conglomerate laid out how plans to exploit AI and leverage its data to accelerate its long-term sales and earnings growth at its key Bunnings, Kmart, and Officeworks businesses.

Post the strategy day, we have made minor changes to our EPS estimates to incorporate Officeworks transformation costs, a lower contracted price and reduced spodumene concentrate price for the Covalent lithium arm, and currency impacts. Overall, this drives reductions in our EPS forecasts of 0.2%, 1.2% and 0.8% over FY26, FY27 and FY28, respectively. We raise our sum-of-the-parts (SOTP)-derived target price on Wesfarmers to $75.00 from $70.00 to factor in higher earnings multiples but reiterate our Hold recommendation on valuation grounds.

The post Buy, hold, sell: CSL, Steadfast, and Wesfarmers shares appeared first on The Motley Fool Australia.

More reading

• How to know when a beaten-down ASX share is worth buying
• Healthcare shares led the ASX 200 last week. Is a sector comeback underway?
• If I invest $8,000 in CSL shares, how much passive income will I receive in 2027?
• New to investing? 3 ASX shares to set and forget until 2036
• The bull and bear case for CSL shares

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

If I were investing $250 a week in ASX shares, I would not be looking for income just yet.

Income can come later. At this stage in my life, I would be trying to build wealth.

I would want quality, diversification, and growth. I would also want a structure that is easy to keep adding to, because the habit of investing every week could end up being just as important as the individual shares I choose.

Here is how I would approach it.

I’d start with ETFs

The first thing I would do is build a base with exchange-traded funds (ETFs).

ETFs can give a portfolio instant diversification. That is useful when starting out because it reduces the pressure to find the perfect individual ASX share straight away.

I would want exposure to global businesses, not just the Australian market. One option could be the Vanguard MSCI Index International Shares ETF (ASX: VGS), which gives investors access to a broad spread of large companies across developed markets.

Another option could be the iShares S&P 500 AUD ETF (ASX: IVV), which focuses on the largest listed companies in the United States. This can provide exposure to global leaders in technology, healthcare, consumer goods, financials, and other major sectors.

The point is not that these are the only ETFs to consider. The point is that I want the portfolio’s foundation to be broad, simple, and capable of compounding over many years.

Once that base is in place, I think the rest becomes easier.

Then I’d add quality ASX shares

After building that ETF foundation, I would start adding individual ASX shares.

This is where I would be selective. I would want businesses with strong competitive positions, clear growth options, and the ability to reinvest for the future.

TechnologyOne Ltd (ASX: TNE) is the kind of ASX 200 share I would consider. Its software is used by organisations that need core systems to keep operating properly. That can make the business sticky, especially as more customers shift to software-as-a-service products.

Hub24 Ltd (ASX: HUB) is another example. Australia has a large pool of wealth, and financial advisers need better platforms to manage portfolios, reporting, and client administration. If Hub24 keeps winning market share, I think it could remain a strong long-term compounder.

I would also look at businesses such as Aristocrat Leisure Ltd (ASX: ALL). It has a global scale, strong intellectual property, and a long history of investing in gaming content and technology. That gives it a different growth profile from many traditional ASX shares.

These are examples rather than a fixed shopping list. The broader idea is that I would use individual shares to add quality growth on top of the ETF base.

What could $250 a week become?

The numbers can become surprisingly large over time.

Investing $250 a week means putting $13,000 a year.

If my portfolio achieved an average annual return of 9%, it could grow to around $700,000 after 20 years.

That is not guaranteed. Returns will move around, and there will be difficult years. But it shows why consistency can be so valuable.

A weekly investment that feels manageable today could become a very serious portfolio in the future.

Foolish Takeaway

If I were investing $250 a week in ASX shares, I would begin with ETFs, then add high-quality individual companies once the foundation was in place.

I would focus on wealth-building rather than income and reinvest along the way.

The aim would not be to make the portfolio exciting. It would be to make it durable, diversified, and capable of compounding for years.

That is how I would try to turn a simple weekly habit into a meaningful long-term ASX share portfolio.

The post How I’d invest $250 a week in ASX shares to aim for $700,000 appeared first on The Motley Fool Australia.

More reading

• The perfect ASX ETF retirement portfolio alongside your super
• 10 amazing ASX ETFs for the next decade
• How to build an ASX share portfolio that can survive a market selloff
• 5 ASX 200 shares I would buy if I were starting from scratch
• How I’d choose the best ASX shares I could hold for 10 years

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24, Technology One, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Hub24, Technology One, Vanguard Msci Index International Shares ETF, 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.

Owning ANZ Group Holdings Ltd (ASX: ANZ) shares has been a typical ASX blue-chip share pick for investors who want passive income.

The ASX bank share usually trades on a relatively low price/earnings (P/E) ratio valuation and has a fairly generous dividend payout ratio.

ANZ has a lot of competition in the banking space. On the ASX alone there’s a long list of names competing with ANZ including Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), Macquarie Group Ltd (ASX: MQG), Bank of Queensland Ltd (ASX: BOQ), Bendigo and Adelaide Bank Ltd (ASX: BEN), MyState Ltd (ASX: MYS) and Pepper Money Ltd (ASX: PPM).

Despite that, the bank still makes billions of dollars of profit each year, which funds the company’s solid dividend.

For an investor who wants $10,000 of annual passive income, let’s take a look at what level of passive income ANZ is projected to pay in FY26.

ASX bank share dividend forecast

ANZ’s financial year runs to September, so we’re close to three-quarters of the way through the 2026 financial year. It’ll be a few months until we find out about the annual result and what the profit figures could be.

Analysts have forecast what the ASX bank share may be able to deliver.

According to the projection on Commsec, the ASX bank share could pay an annual dividend per ANZ share of $1.68 in FY26.

At the time of writing, this translates into a dividend yield of 4.8%, excluding franking credits.

That means, to generate $10,000 of annual passive income from ANZ in FY26, an investors would need 5,953 ANZ shares to receive that much in dividends.

Pleasingly for shareholders, the bank is projected to see a rise in its dividend per share of 2.4% in FY27 to $1.72. If we focus on this forecast amount, an investor would only need 5,814 ANZ shares for $10,000 of annual passive income, excluding franking credits.

Is this a good time to invest in ANZ shares?

When there’s a lot of competitors in an industry, it’s normal to see profit margins being challenged. Given how quickly Macquarie is growing, it’s possible that ANZ’s market share could decline in the coming years, unless it can change the trend.

According to Commsec’s collation of analyst opinions on the business, there are currently six buy ratings, eight hold ratings and two sell ratings.

It seems analysts are a bit more positive than negative on the ASX bank share right now, but I think there are better opportunities out there today that could grow earnings more in the long-term.

The post How many ANZ shares do I need to buy for $10,000 of passive income? appeared first on The Motley Fool Australia.

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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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. 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.

A falling share price can make any ASX share look tempting.

After all, investors like buying things on sale. If a company was popular at a much higher price, it can feel logical to assume that a big decline has created a bargain.

That can be true, although it takes more work than simply looking at how far the share price has fallen.

The best opportunities usually appear when the market has become too pessimistic about a business that still has strong long-term prospects.

Here is how investors can think through it.

Understand why the share price has fallen

The first step is to understand the reason behind the fall.

A share price can decline because the whole market is weak, investors have lost patience with growth shares, interest rates have moved higher, or the company itself has disappointed.

Those are very different situations.

A high-quality business caught in a broad market selloff may deserve a different response from a company that has repeatedly missed guidance, lost market share, or taken on too much debt.

This is where investors need to separate sentiment from substance.

If the share price has fallen while the company’s competitive position, balance sheet, and long-term opportunity remain largely intact, the selloff may be worth investigating more closely.

Look for signs the business still has a future

A beaten-down share becomes more interesting when the company still solves an important problem or owns assets that should remain valuable over time.

WiseTech Global Ltd (ASX: WTC), for example, sells software into the global logistics industry, where freight forwarders and supply chain operators need better systems to manage complexity.

Treasury Wine Estates Ltd (ASX: TWE) gives investors exposure to a portfolio of wine brands, global distribution channels, and the premiumisation of consumer tastes across key markets.

CSL Ltd (ASX: CSL) operates in healthcare markets where demand is driven by medical need rather than fashion or short-term consumer trends.

The key is to ask whether customers are still likely to need what the company provides in five or ten years.

A lower share price is more useful when the business still has a long runway.

Check the financial foundations

A company can have an exciting story and still be a risky investment if its finances are weak.

Investors should look at debt, cash flow, margins, and the ability to keep funding growth through difficult periods.

A strong balance sheet gives management more room to keep investing when conditions are tough. Healthy cash generation can reduce the need for capital raisings, asset sales, or painful cost cuts.

This is especially important for companies that have fallen heavily.

When confidence is low, the market can become far less forgiving. Businesses with stronger financial foundations have a better chance of waiting out the pressure and rebuilding investor trust.

Focus on future earnings, not the old share price

One common mistake is anchoring to the previous share price high.

A share that has fallen heavily still needs to be assessed against its future earnings, cash flow, and growth potential.

Investors should ask whether the business can realistically grow into a higher valuation over time. That may involve looking at revenue growth, margins, market share, recurring income, and management’s track record.

If the previous share price was inflated by unrealistic expectations, a big fall may simply be a reset. If the market has become too cautious about a good business, the lower price may create a genuine opportunity.

Be patient

Even when the analysis is right, the timing can be uncomfortable.

A beaten-down ASX share can stay out of favour for months or even years. Sentiment usually takes time to recover, particularly when investors have been disappointed.

This is why patience is important.

Investors can reduce the pressure of perfect timing by buying gradually, leaving room to add more if the share price falls further, and avoiding oversized positions in companies where confidence is still being rebuilt.

Foolish takeaway

A fallen ASX share becomes attractive when the business remains strong, the balance sheet can handle pressure, the valuation has become more sensible, and the long-term growth story still makes sense.

That combination can turn a selloff into a genuine opportunity.

The post How to know when a beaten-down ASX share is worth buying appeared first on The Motley Fool Australia.

More reading

• Healthcare shares led the ASX 200 last week. Is a sector comeback underway?
• If I invest $8,000 in CSL shares, how much passive income will I receive in 2027?
• The bull and bear case for CSL shares
• Here are the top 10 ASX 200 shares today
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Motley Fool contributor James Mickleboro has positions in CSL, Treasury Wine Estates, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Treasury Wine Estates, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates and WiseTech Global. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a few names in my portfolio I’ve significantly invested in for passive income and long-term growth. One of those is MFF Capital Investments Ltd (ASX: MFF), a listed investment company (LIC) that offers numerous positives as a reliable ASX dividend stock.

It’s led by Chris Mackay, with the investment team growing in recent years to add significant capabilities to the business.

The LIC is approximately $3 billion in size, and I believe it has a very positive future ahead for multiple reasons.

Diversification

The ASX dividend stock’s investment strategy is to invest in high-quality opportunities. Its portfolio is mostly global shares, though it does own a couple of ASX-listed investments too.

I think it’s wise to look across the entire global share market for opportunities because there are so many more opportunities outside of Australia compared to on the ASX.

MFF aims to invest in businesses with enduring competitive advantages and good prospects for profit growth. Some of its largest positions include Alphabet, Amazon, Mastercard, Visa, Bank of America, Meta Platforms, American Express and Microsoft.

As you can see, these are the types of businesses that have compelling long-term compounding profit potential, which can help drive shareholder returns over the long-term.

Over the last 10 years, it has delivered an average total shareholder return (TSR) of 14% per year, which is a good measure of its performance. Portfolio performance of that level is enough to deliver both capital growth and good long-term dividends.

Reliable ASX dividend stock

MFF has increased its regular annual dividend every year since 2018, so it already has a good record of dividend increases.

The business has provided guidance that it’s going to hike its FY26 annual dividend per share by 23% to 21 cents. That follows on from the FY25 annual dividend being hiked by more than 30%.

The FY26 payout means the business could pay a grossed-up dividend yield of approximately 6%, including franking credits.

MFF says that it has a focus on growing dividends over time. It has significant franking credits and profit reserves to continue paying large dividends to shareholders.

I think the business has a great shot at continuing to grow its annual dividend per share at a strong pace. I wouldn’t be surprised to see the business hike its payout to 25 cents per share in FY27, which would translate into a grossed-up dividend yield of approximately 7.1%, including franking credits, at the time of writing.

How much could $1,000 buy?

If an investor were to put $1,000 into MFF shares, they’d be able to buy 198 MFF shares.

I’d be very happy to invest in the ASX dividend stock for the long term.

The post $1,000 buys 198 shares in an incredibly reliable ASX dividend stock appeared first on The Motley Fool Australia.

More reading

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Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, American Express, Mastercard, Meta Platforms, Microsoft, and Visa. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Meta Platforms, Mff Capital Investments, Microsoft, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX 200 healthcare shares led the 11 market sectors last week with a 4.84% increase over the five trading days.

The S&P/ASX 200 Index (ASX: XJO) lifted 0.28% amid a US-Iran interim peace deal and oil prices dropping to pre-war levels.

The ASX 200 finished the week at 8,828.7 points.

It’s potentially significant that healthcare was out in front last week given the sector’s poor performance over the past 12 months.

The S&P/ASX 200 Health Care Index (ASX: XHJ) is down 39% over 12 months and down 25% in the calendar year to date.

The healthcare index hit a 9-year low of 21,947.2 points on 3 June.

Samy Sriram, a market analyst at online investment platform, Stake, says healthcare companies have had many headwinds.

They include currency challenges for those reporting in US dollars; three interest rate rises in Australia; cost of living pressures; higher shipping costs; new caps on insurance payouts in some nations; higher labour costs; and regulatory uncertainty in the US.

However, markets are cyclical. At some point in a downturn, share prices fall to levels that offer too much value to ignore, and investors dive back in.

Does 3 June represent that pivot point?

ASX 200 healthcare shares have increased 13% since 3 June compared to just a 0.49% bump for the broader benchmark index.

Let’s review some individual company performances last week.

Healthcare shares led the ASX sectors last week

The CSL Ltd (ASX: CSL) share price ascended 8.19% to close at $116.32 on Friday.

Sigma Healthcare Ltd (ASX: SIG) shares rose 4.55% to $2.76 apiece.

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) shares dropped 2.17% to $31.53.

Pro Medicus Ltd (ASX: PME) shares lifted 5.37% to $172.80.

Resmed CDI (ASX: RMD) shares fell 3.75% to $26.68.

Sonic Healthcare Ltd (ASX: SHL) shares eased 0.74% to $20.05.

The Ramsay Health Care Ltd (ASX: RHC) share price lifted 1.73% to $39.49.

The Cochlear Ltd (ASX: COH) share price shot 13.87% higher to $118.14.

Telix Pharmaceuticals Ltd (ASX: TLX) shares increased 6.62% to $14.50.

The Ansell Ltd (ASX: ANN) share price rose 2.46% to $29.99.

The EBOS Group Ltd ASX: EBO) share price fell 3.87% to $16.91.

Mesoblast Ltd (ASX: MSB) shares ripped 9.23% to $2.13 apiece.

Megastar ASX 200 healthcare share, 4DMedical Ltd (ASX: 4DX), rocketed 23.37% to $4.54.

4DMedical shares are up 1,716% over 12 months.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Healthcare (ASX: XHJ)	4.84%
Financials (ASX: XFJ)	1.69%
Information Technology (ASX: XIJ)	0.99%
Consumer Discretionary (ASX: XDJ)	0.51%
Consumer Staples (ASX: XSJ)	0.15%
A-REIT (ASX: XPJ)	0.02%
Industrials (ASX: XNJ)	(0.13%)
Materials (ASX: XMJ)	(0.46%)
Communication (ASX: XTJ)	(1.67%)
Utilities (ASX: XUJ)	(3.66%)
Energy (ASX: XEJ)	(7.33%)

The post Healthcare shares led the ASX 200 last week. Is a sector comeback underway? appeared first on The Motley Fool Australia.

More reading

• If I invest $8,000 in CSL shares, how much passive income will I receive in 2027?
• New to investing? 3 ASX shares to set and forget until 2036
• How to build a $1 million ASX share portfolio for retirement
• The bull and bear case for CSL shares
• 5 ASX 200 shares I would buy if I were starting from scratch

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Cochlear, ResMed, and Telix Pharmaceuticals. 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 Ansell, CSL, Cochlear, Pro Medicus, Sonic Healthcare, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was a busy week for Australia’s top brokers. This has led to a number of broker notes being released.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Bannerman Energy Ltd (ASX: BMN)

According to a note out of UBS, its analysts have initiated coverage on this uranium developer’s shares with a buy rating and $5.15 price target. UBS is feeling positive about the long-term uranium outlook and is forecasting a price of US$100 per pound. It believes this will be driven by an increasing focus on energy security and growing demand from AI and data centres. The broker highlights that this enhances the project economics of Bannerman’s Etango operation. This operation is based in Namibia, which it views as a relatively stable jurisdiction with a track record of successful and stable uranium assets with international ownership. In light of this, UBS sees a lot of value in the company’s shares at current levels. The Bannerman Energy share price ended the week at $3.40.

Flight Centre Travel Group Ltd (ASX: FLT)

A note out of Morgans reveals that its analysts have retained their buy rating on this travel agent’s shares with an improved price target of $14.80. Morgans points out that given recent downgrades from other travel industry peers because of the Middle East conflict, it wasn’t surprised to see Flight Centre downgrade its earnings guidance last week. It believes that if it were not for the conflict, FY 2026 would have been a great year for Flight Centre given its strong results for the first nine months of the financial year. Looking ahead, Morgans is positive on Flight Centre’s outlook and expects a strong rebound in its performance in the second half of FY 2027. As a result, it thinks investors should be buying the company’s shares while they are down. This is especially the case given its belief that when operating conditions ultimately improve, both Flight Centre’s earnings and share price will move materially higher. The Flight Centre share price was fetching $11.92 at Friday’s close.

Liontown Ltd (ASX: LTR)

Analysts at Bell Potter have retained their buy rating on this lithium miner’s shares with an improved price target of $2.90. According to the note, Bell Potter believes the outlook for lithium prices is positive. It came to this conclusion after comparing medium term lithium supply restarts and greenfield projects versus expected demand. In light of this, it has lifted its lithium price forecasts and its earnings estimates for Liontown in FY 2027 and FY 2028. In addition, due to current lithium price strength, Bell Potter notes that the company can rapidly generate cash to support incremental production expansions and shareholder returns. It also continues to see the Kathleen Valley operation as highly strategic in terms of scale, long project life, and location in a tier-one mining jurisdiction. The Liontown share price ended the week at $1.98.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in CSL and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

AMP Ltd (ASX: AMP) shares are in in the green at the time of writing.

Back in February, the share price crashed 26% after the financial services company posted a disappointing FY25 financial result.

This marked the company’s largest one-day fall since the wealth manager since 2003, when its value tanked 36%.

At the time, AMP reported a 20.8% lift in underlying NPAT, a 9% increase in total assets under management (AUM), and a 11.3% decline in statutory NPAT over the year. The result was far below market expectations across the board and investors were disgruntled.

Ongoing geopolitical tensions and concerns about Australia’s inflation data rate also weighed heavily on financial shares like AMP.

Thankfully, AMP’s first-quarter update was a little more positive. The company reported a 45% growth in Platforms net cashflows and improved Superannuation & Investments (S&I) net cash outflows in April.

There have been plenty of headwinds facing the company this year, but I still think AMP shares are a no-brainer buy. 

Here are three reasons why.

1. Excellent growth potential ahead

While AMP’s FY25 results disappointed investors, fact is, it still demonstrates that the company’s earnings are growing across its wealth platforms, superannuation business and also improved cash flow.

The first-quarter update in April confirmed that strong business growth is underway and revealed a significant momentum across several of its key divisions.

AMP is focused on improving its operational leverage in its platforms, and looking at new capital relief strategies to help enhance returns. 

AMP is also planning to build on its position in China and leverage retirement expertise in New Zealand in response to ongoing sector tailwinds.

The good news is that AMP is still viewed as a potential turnaround story.

Many think that if management successfully executes its strategy, improves profitability, and restores market confidence, the share price could benefit from both earnings growth and a higher valuation multiple.

2. Management is confident

At the same time as announcing its first-quarter results, AMP announced a $150 million share buyback. This is positive for investors because it reduces the number of shares on issue and can increase earnings per share over time. It also flags management confidence in the business. 

3. Brokers are bullish

According to Market Index data, the majority of brokers have a strong buy rating on AMP shares, and expect a 6% upside (at the time of writing) over the next 12 months to an average price target of $1.70 a piece.

TradingView data shows some are even more bullish. Out of 10 analysts, eight have a buy or strong buy rating on AMP shares and another two rate the financial stock as a hold. The average 1.715 target price implies a 7% upside ahead and the maximum $1.94 target price implies the shares have the potential to climb another 22% from here, at the time of writing.

Citi is one of the more positive brokers. It renewed its buy call on AMP shares with a $1.80 target earlier this month.

The post 3 reasons to buy AMP shares today appeared first on The Motley Fool Australia.

More reading

• 7 ASX 200 shares with strengthened buy ratings this week

Citigroup is an advertising partner of Motley Fool Money. 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.