Category: Stock Market

Artificial intelligence is changing the game for many companies on the ASX, in good ways and bad.

Macquarie has identified two ASX 200 companies that will benefit from the use of AI, but it’s fair to say the companies are nothing at all alike.

Let’s look at the companies they are tipping as winners.

Megaport Ltd (ASX: MP1)

Megaport shares have jumped about 70% over the past month alone, but Macquarie is backing this company to more than double again.

Part of the reason Megaport is so attractive is that it has been winning some big contracts recently.

Just this week, it announced that its subsidiary Latitude.sh had secured three major GPU, CPU, network and storage contracts across two customers, “reinforcing Megaport’s position as a critical infrastructure partner in the accelerating AI ecosystem”.

Megaport said further:

These binding, fixed-term contracts secure committed long-term revenue irrespective of usage, delivering strong returns and aligning with our infrastructure and capital deployment strategies. The combination of Megaport’s foundational network infrastructure automation with Latitude.sh’s compute and storage capabilities has created a global automated infrastructure platform, enabling the combined Group to pursue and secure new value-accretive opportunities.

So what does the company actually do? In short, it provides a “network-as-a-service” platform that allows its customers globally to access computing and storage facilities.

Megaport added this week that the market opportunity remained large.

Since the acquisition of Latitude.sh, Megaport has assessed and continues to evaluate a significant and increasing number of comparable opportunities enabled by its automated global infrastructure capabilities. The Company will remain highly disciplined in assessing similar opportunities, applying rigorous criteria across counterparty credit quality, committed contract terms, attractive paybacks3, and overall returns.

The new customers announced this week were both US-based technology providers.

Following the new deal announcement, Macquarie issued a research note to its clients with a price target on Megaport shares of $26.30, compared to $13.05 currently, implying potential upside of more than 100%.

Breville Group Ltd (ASX: BRG)

Macquarie believes that Breville, the coffee machine and small appliance maker, could benefit from AI in a very different way.

One of the growth drivers for Breville, Macquarie says, is entering new markets, and they believe that AI “will assist with licencing, regulation and safety requirements”.

Macquarie says that Breville’s sales in China, Korea, Mexico, and the Middle East grew at better than 50% in the first half of FY26.

They went on to say:

China and Korea performance, as well as potential Japan and India entry, could see APAC segment growth accelerate. APAC has the potential to be the fastest growing segment, despite including Australia, BRG’s most mature market. Note De’Longhi Coffee products are also available on Amazon in Japan, India and Brazil.

Macquarie has a target price of $37.10 on Breville shares, compared with $28.87 currently.

Breville is valued at $4.11 billion.

The post Macquarie says these two ASX 200 companies will benefit from AI, in very different ways appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Aristocrat, Breville, and Healius shares
• This ASX tech stock has exploded 75% in a month, but can it climb higher?
• ASX tech shares vs. ATEC ETF: How they fared during sector downturn
• Why Megaport just landed its biggest ever AI infrastructure contract
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Cameron England has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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.

For many investors, Telstra Group Ltd (ASX: TLS) shares remain one of the first places they look for passive income on the ASX.

I don’t find that very surprising.

The telco giant may not offer the biggest dividend yield on the market, but I think it offers something just as important in the current environment: resilience.

With cost-of-living pressures, rising interest rates, and geopolitical conflict weighing on the economy, defensive income stocks can play a very useful role in a portfolio.

What income could Telstra provide?

According to CommSec, consensus estimates point to Telstra paying shareholders franked dividends of 21 cents per share in FY26 and then 21.5 cents per share in FY27.

Based on the current Telstra share price of $5.37, that implies a forward dividend yield of approximately 3.9% in FY26 and then 4% in FY27.

While that isn’t the highest dividend yield available on the ASX, I don’t think income investing should only be about chasing the largest number.

Why I like Telstra shares for passive income

I think Telstra has defensive qualities that many businesses simply don’t have.

Its mobile and telecommunications networks are essential infrastructure. Households and businesses continue to need connectivity through different economic conditions, which gives Telstra a relatively stable revenue base.

In my opinion, that can be very important when the economy is uncertain.

The company has also spent recent years simplifying its operations, strengthening its mobile business, and focusing more clearly on returns to shareholders.

It has also introduced periodic price increases for its mobile and internet contracts in order to cover inflationary pressures. This supports a growing stream of recurring revenue and has thus far not led to elevated churn levels.

For me, that makes Telstra an appealing option for investors wanting a dependable income stream.

Fully-franked dividends add appeal

Another positive is franking.

The forecast dividends are expected to be largely fully franked, which can increase the after-tax value of the income for eligible Australian investors.

That can make Telstra’s dividend yield more attractive than it first appears, particularly for retirees and income-focused investors.

Foolish Takeaway

I think Telstra shares are a good buy for passive income.

They may not offer the largest yield on the ASX, but they provide defensive exposure, steady cash flow, franked dividends, and a business model that should remain relevant for many years.

In this kind of uncertain market, that combination looks appealing to me.

The post Are Telstra shares a top buy for passive income? appeared first on The Motley Fool Australia.

More reading

• Create a river of dividends for passive income alongside work earnings with ASX stocks
• How to build passive income on the ASX without chasing the highest yield
• Buying Telstra shares today? Here’s the dividend yield you’ll get
• How much is needed in superannuation to target a $5,000 monthly passive income?
• Where I’d invest $10,000 into ASX 200 dividend shares right now

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

ASX energy stock Meridian Energy Ltd (ASX: MEZ) is pushing higher today.

Shares in the dual-listed, New Zealand-based sustainable energy provider closed yesterday trading for $4.81. In morning trade on Thursday, shares are swapping hands for $4.82, up 0.2%.

For some context, the S&P/ASX 200 Index (ASX: XJO) is up 0.6% at this same time.

Longer term, Meridian Energy shares are down 7.2% over a year. That sees the ASX energy stock commanding a market cap of around $12.8 billion.

Meridian Energy shares also trade on a 3.7% unfranked trailing dividend yield.

Here’s what investors are mulling over today.

ASX energy stock lifts on operating update

Meridian Energy shares are in the green following the release of the company’s April operating report.

The ASX energy stock, which sources the majority of its power from hydro, noted rising hydro storage levels following another month of “sizeable inflows”. This followed on a period of unseasonably heavy rainfalls.

Indeed, in the month to 11 May, the company reported that national hydro storage increased from 106% to 119% of the historical average. Breaking that down by region, South Island storage increased to 109% of average levels while North Island storage increased to 201% of average levels.

April also saw a 3.7% year-on-year increase in New Zealand’s national electricity demand. This helped drive an 8.2% increase in Meridian’s retail sales volumes.

Breaking that down by segments, year on year, Meridian’s sales volumes in residential were 25.0% higher, small medium business were 9.2% higher, large business were 11.4% higher, agriculture were 6.1% higher, and corporate were 0.8% higher.

What did Meridian management say?

Commenting on the results that look to be supporting the ASX energy stock today, Meridian CEO Mike Roan said:

We’re maintaining good momentum as we move through the second half of the financial year.

Significant rainfall events in the North Island and solid South Island inflows have boosted national hydro storage to close to 120% of average for this time of the year, meaning the country’s electricity system is exceptionally well fuelled as we enter the cooler months.

What else is happening with the ASX energy stock?

Separately, Meridian reported that it had received consent to build a 120MW solar farm. This will be built alongside an already consented battery energy storage system (BESS) at Bunnythorpe, north of Palmerston North.

Bunnythorpe Energy Park will form part of a NZ$3 billion investment Meridian is making through to 2030 to build new renewable energy capacity.

Guy Waipara, Meridian general manager development, said:

We’re thrilled to receive this approval… Solar energy is playing an increasingly important role in New Zealand’s electricity generation, and we’re excited to bring this to Manawatu.

The post How heavy rainfall is helping this $13 billion ASX energy stock appeared first on The Motley Fool Australia.

More reading

• Meridian Energy’s April retail sales and hydro storage climb in 2026
• Meridian Energy shares: Strong customer growth in March

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.

Shares in ASX microcap Nanoveu Ltd (ASX: NVU) have jumped more than 30% after the company said it would acquire a Singapore-based drone company.

Nanoveu said in a statement to the ASX that it would acquire Spinoff Robotics, a company which, “develops and operates proprietary drone platforms, bringing aerial robotics, mechanical design, fluid dynamics and engineering capabilities in-house”.

The consideration for the purchase is three million Nanoveu shares plus four million performance rights subject to milestones being achieved.  

Spinoff Robotics founder Dr Chee How Tan would also be issued two million performance rights, also subject to milestones being achieved.

Purchase leads to total drone solution

Nanoveu said the acquisition meant that it would now be able to offer a full stack drone solution across software, hardware and airframes.

Nanoveu’s technology includes tethered drone solutions, and drones which can operate without GPS, which are highly resistance to jamming.

The company said further re the acquisition:

Spinoff develops clean-sheet aerial platforms engineered from first principles, with full in-house control over airframe, aerodynamics, flight control and on-board sensing, to meet mission-specific requirements. The acquisition will add two technologies validated by tier 1 customers, along with in house-developed proprietary drone products (the ALICE tethered drone and the METRON sub millimetre photogrammetry system). Furthermore, the acquisition will bring underlying engineering capability to design and build next generation purpose-built drones for identified target verticals.

Nanoveu said it would now, “hold every foundational layer required to design and field its own proprietary drone platforms from the ground up across mission profiles ranging from persistent intelligence, surveillance and reconnaissance overwatch to battlefield-grade tactical platforms”.

The company added:

The acquisition arrives at a moment when defence procurement globally is accelerating, allied governments are mandating sovereign and trusted-supply-chain drone capability, and recent geopolitical events have exposed the operational vulnerability of GPS-dependent and RF-reliant aerial platforms.

As well as defence applications, Nanoveu said there was a large market for drone security systems to be used by airports and data centres.

Nanoveu Executive Chairman Dr David Pevcic said regarding the deal:

The proposed acquisition of Spinoff Robotics is a defining step in the build-out of Nanoveu’s autonomous drone platform, providing the in house deployment surface to scale ECS-DoT silicon and validate next-generation edge-AI functions — including multi-chip configurations, GPS-free navigation and mission-specific perception workloads — in one of the highest-volume edge-AI markets. With proprietary airframes and sensing sitting alongside the Company’s silicon, edge-AI IP and autonomy algorithms, Nanoveu is placed to own every layer of the stack required to ship validated reference designs into defence, critical-infrastructure security and industrial inspection.

Shares surge

Nanoveu shares traded as high as 8.4 cents, up 33.3% before settling back to be 12.7% higher at 7.1 cents.

Nanoveu is valued at $68 million.

The post A new drone deal has this ASX microcap share rocketing up appeared first on The Motley Fool Australia.

More reading

• Macquarie says these two ASX 200 companies will benefit from AI, in very different ways
• Are Telstra shares a top buy for passive income?
• How heavy rainfall is helping this $13 billion ASX energy stock
• EOS shares rocket as $726 million order book turns heads
• CSL shares vs CBA shares: Which is the better buy?

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

It has already been one of the wildest ASX defence stock moves of the past year, and Electro Optic Systems Holdings Ltd (ASX: EOS) is climbing again today.

At the time of writing, the EOS share price is up 8.15% to $9.16.

That means the stock is still down around 3% in 2026, but remains up more than 620% over the past 12 months.

Today’s buying comes after the company gave investors a fresh update on its MARSS acquisition, new Middle East orders, and a much larger combined order book.

MARSS deal moves closer

In its ASX release, EOS said it has agreed revised terms for its acquisition of the assets of the MARSS group business.

MARSS is a counter-drone systems business. Its NiDAR command and control systems are used to detect, track and defeat drone attacks.

The company said the upfront payment of US$36 million is being made today. It also expects the acquisition to complete in coming days.

There is still no guarantee on timing, but the update suggests the deal is moving closer after earlier transaction uncertainty.

EOS also said it will draw down $70 million from a secured term loan facility to help fund the deal. Of that amount, $50 million will go towards the upfront payment, with the balance expected to support transaction costs and general funding needs.

New orders land in the Middle East

The likely part that is getting investors most interested today is the jump in MARSS’ contract pipeline.

EOS said MARSS has secured new May 2026 orders totalling 102 million euros, or about $165 million. Those orders came from an existing customer in the Middle East.

MARSS has also entered an 85 million euro contract with another Middle Eastern military customer.

The contract involves installations for a country-wide drone detection and mitigation system, with NiDAR C2 software at its core.

Most revenue is expected to be earned during 2026 and 2027, with about 70% of cash expected across that period.

Order book gets bigger

The update also gives investors a clearer view of the combined order book.

EOS said MARSS’ order book now stands at 135 million euros, or about $217 million. If the deal completes, this would lift the company’s total order book to a massive $726 million.

The existing order book has also grown from $459 million at the end of December to $509 million on 15 May.

Foolish takeaway

While the MARSS deal is not finished yet, it appears to be moving in the right direction.

If EOS signs off on the deal, the share price could push into new all-time highs. The market would be looking at a bigger business, more defence orders, and stronger exposure to drone defence spending.

The post EOS shares rocket as $726 million order book turns heads appeared first on The Motley Fool Australia.

More reading

• 3 superannuation decisions you’ll regret in retirement
• 3 ASX stocks positioned to benefit from rising global defence budgets
• Down 13% in a week, are EOS shares now too cheap to ignore?
• Brokers name 3 ASX shares to buy right now
• Up 670%: Is it too late to buy this ASX defence stock?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. 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.

Commonwealth Bank of Australia (ASX: CBA) and CSL Ltd (ASX: CSL) are two of the highest-quality businesses on the ASX.

They are also both trading well below their recent highs.

CBA shares are down around 18% from their 52-week high, while CSL shares have fallen to multi-year lows after a very difficult period for the biotechnology giant.

I rate both as buys. But if I could only choose one today, I would lean toward CSL.

The case for CBA shares

CBA is still the highest-quality major bank in Australia, in my view.

It has a powerful deposit franchise, a huge customer base, strong digital capability, and a brand that gives it an advantage across home loans, transaction banking, business banking, and wealth-adjacent services.

The bank has consistently shown over many years that it can generate strong profits, support large dividends, and trade at a premium valuation relative to its peers. Investors trust the business for good reason.

In my opinion, the recent share price fall has simply made the buying case more appealing.

CBA had been priced very strongly, and the market may have been looking for an excuse to take some heat out of the valuation. After an 18% fall from its high, the risk-reward looks better than it did a few months ago.

For investors wanting quality, income, and exposure to Australia’s largest bank, CBA remains a share I would be happy to own.

Why CSL shares get my vote

CSL is a very different situation.

Sentiment toward the biotechnology giant is incredibly weak. The shares are at multi-year lows, the outlook has become more uncertain, and investors are questioning the quality of a business that was once viewed as one of the safest growth names on the ASX.

That is not comfortable. But I think the market may now be treating CSL as if its problems are structural and permanent. I do not see it that way.

CSL still owns world-class healthcare assets across plasma therapies, vaccines, and specialty medicines. It has a global scale, deep scientific capability, long-standing customer relationships, and exposure to markets where demand should keep growing over time.

The company clearly needs to rebuild trust. Guidance downgrades and execution issues are not easy to ignore. Management must prove that the business can return to more reliable growth, improve productivity, and restore confidence.

But if the current issues are largely short term, today’s share price could end up looking too pessimistic.

That is why I would choose CSL shares over CBA for the next five years.

Foolish Takeaway

CBA may be a better business right now in terms of confidence and execution. But I think CSL may offer a better opportunity.

CBA still trades with a quality premium, even after its sell-off. That premium is understandable, but it may limit upside if earnings growth is steady rather than spectacular.

CSL is in a much more difficult place, but the share price already reflects a lot of disappointment.

If CSL stabilises, restores earnings momentum, and shows that its core healthcare franchises remain strong, I think the upside could be meaningful.

In other words, CBA looks like the safer buy. CSL looks like the more compelling recovery buy.

The post CSL shares vs CBA shares: Which is the better buy? appeared first on The Motley Fool Australia.

More reading

• Should you buy the dip on CBA shares? Here’s what the experts say
• Why is everyone selling CBA shares?
• Buy, hold, sell: COG Financial Services, Macquarie, CBA shares
• The CBA share price crash was an accident waiting to happen. Here’s why
• Buy, hold, sell: CBA, Life360, and Macquarie shares

Motley Fool contributor Grace Alvino has positions in CSL and Commonwealth Bank Of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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.

If you are hunting for some new portfolio additions, then it could pay to hear what Morgans is saying about the three ASX shares in this article.

Does the broker rate them as buys, holds, or sells? Let’s dig deeper into things:

Aristocrat Leisure Ltd (ASX: ALL)

Morgans was impressed with this gaming technology company’s performance in the first half of FY 2026. It notes that Aristocrat outperformed expectations thanks largely to its gaming business.

In response, the broker has retained its buy rating on Aristocrat shares with an improved price target of $67.00. It said:

Aristocrat Leisure (ALL) 1H26 result beat our forecasts and came broadly in line with consensus, despite management’s prior flagging of a softer than usual 1H skew. Gaming was the clear standout – strong outright sales on continued Baron cabinet demand and solid leased adds in a thin content period. Product Madness and Interactive came in below our forecasts, though the latter is complicated by a D&D reclassification and acquisition drag that flatters the headline miss.

Greater clarity on the FY26-29F earnings shape is expected at the July investor day. Capital management remains a key pillar – a $1bn buyback extension marks $5.1bn returned over five years, underpinned by a fortress balance sheet at 0.3x net debt/EBITDA. We now assume a normalised 1H/2H skew and incorporate ~$100m in annualised savings in FY27, lifting EPSA 3% and 4% for FY26-27F respectively.

Breville Group Ltd (ASX: BRG)

Another ASX share that Morgans is positive on is appliance manufacturer Breville.

Following the release of positive updates from peers, the broker has retained its buy rating on Breville’s shares with a $36.75 price target. It commented:

1Q26 updates from key offshore peers have shown broadly positive read-throughs for BRG, despite an ongoing challenging consumer and macro backdrop. We consider small domestic appliance peers with a premiumisation focus (DLG / KitchenAid), innovation-led NPD (SN), high Coffee exposure (DLG) and ongoing geographic expansion (all) as holding strong relevance for BRG.

Sales momentum across these select peers in 1Q26 (DLG +6.6%; Ninja brand +9.1%; KitchenAid +10%) appears broadly positive and supportive of our view for ongoing outperformance from BRG. BUY maintained.

Healius Ltd (ASX: HLS)

Finally, Morgans was disappointed with this healthcare company’s update and sizeable downgrade to earnings.

And given the increased uncertainty over the outlook of its pathology business, the broker has retained its hold rating with a reduced price target of 41 cents. It said:

HLS has materially downgraded FY26 earnings, which we find disappointing given reiterated consensus-aligned guidance at the 1H26 result only three months ago. While Pathology cost control continues to improve and labour optimisation initiatives are gaining traction, weaker volumes, ongoing GP softness and mounting regulatory/funding pressures are offsetting operational progress. Agilex continues to perform relatively well, and HLS has commenced a strategic review following unsolicited interest in the asset.

However, the extent to which value can be crystallised above the original high acquisition multiple remains uncertain given the business’ modest scale and inconsistent earnings trajectory. While a potential Agilex sale could provide balance sheet upside, the downgrade reinforces that sustainable margin recovery within core Pathology remains elusive. We adjust FY26-28 estimates, with our target price decreasing to A$0.41. HOLD.

The post Buy, hold, sell: Aristocrat, Breville, and Healius shares appeared first on The Motley Fool Australia.

More reading

• Macquarie says these two ASX 200 companies will benefit from AI, in very different ways
• Up 13%: Why this ASX 200 stock is a buy with even more upside
• 9 ASX 200 shares with renewed buy calls from the experts this week
• 5 things to watch on the ASX 200 on Thursday
• 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.

A falling share price does not automatically create a bargain. Sometimes it is the market correctly reassessing a business. But other times, a heavy sell-off can leave a good company priced for a far worse future than it is likely to deliver.

That is what I think may be happening with the three ASX shares in this article.

All have fallen more than 60% from their highs. For investors with patience, I think they could be bargain buys.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster has been one of the hardest-hit ASX growth shares.

That is not too surprising. Online retail stocks can be punished heavily when consumer spending weakens, interest rates rise, and investors become less willing to pay up for growth.

But I think the long-term story still has a lot of appeal.

Temple & Webster is trying to win in a large category that is still moving online. Furniture and homewares have historically been showroom-heavy, but I think more customers are becoming comfortable researching, comparing, and buying these products digitally.

That gives Temple & Webster a structural tailwind if it keeps improving its range, delivery experience, pricing, and brand awareness.

The business also has a useful advantage in not needing the same store network as traditional retailers. That can give it more flexibility as it scales.

There are risks. Furniture demand is tied to housing turnover, renovations, and household confidence. The Federal Budget has also added more uncertainty around the housing outlook.

But after such a large share price fall, I think Temple & Webster could be worth another look. If the online shift continues and consumer conditions eventually improve, the rebound potential could be meaningful.

WiseTech Global Ltd (ASX: WTC)

WiseTech Global has also fallen heavily from its highs.

The logistics software company has faced investor concerns around valuation, management issues, acquisitions, AI disruption, and growth in its core business.

I think those concerns explain the sell-off. But I do not think they erase the long-term opportunity.

WiseTech is tied to one of the most complex parts of the global economy: moving goods across borders. Freight forwarders, customs brokers, and logistics providers handle paperwork, compliance, tariffs, routing, warehousing, and transport networks.

That complexity creates demand for specialist software.

CargoWise is already used by many logistics companies to help manage these workflows. If WiseTech can keep expanding the role its software plays across global trade, the company could become much larger over time.

Cochlear Ltd (ASX: COH)

Cochlear is a very different type of fallen share.

This is not a speculative growth company. It is a global leader in hearing implants, with a long history of innovation and a strong position in a specialised healthcare market.

What I like is that hearing loss is not a short-term theme. It is a long-term healthcare need linked to ageing populations, diagnosis rates, technology adoption, and access to treatment.

Cochlear has spent decades building trust with surgeons, audiologists, patients, and healthcare systems. That is difficult to replicate.

The company’s growth may not always be smooth. Healthcare funding, competition, product cycles, and currency movements can all affect performance.

But I think the market may be too focused on near-term disappointment and not enough on the durability of the franchise.

If Cochlear can continue improving its products, expanding access, and supporting lifelong patient care, I think the business can keep compounding over time.

Foolish Takeaway

Share price falls of more than 60% are not small setbacks. They usually mean confidence has been badly damaged.

But that is exactly why I think these opportunities are worth studying. Temple & Webster, WiseTech, and Cochlear do not need every investor to agree today. They just need their businesses to keep improving over the next few years while expectations remain low.

That is where patient investors can sometimes find the best bargains.

The post 3 ASX shares down over 60% that could be bargain buys appeared first on The Motley Fool Australia.

More reading

• WiseTech shares crash 65% — is the bottom near?
• ASX tech shares vs. ATEC ETF: How they fared during sector downturn
• 9 ASX 200 shares with renewed buy calls from the experts this week
• Are these 2 battered ASX healthcare shares too cheap to ignore?
• These ASX retail stocks are near 52-week lows, are they bargain buys?

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

Alkane Resources Ltd (ASX: ALK) shares are falling on Friday morning.

At the time of writing, the ASX 200 stock is down 1% to $1.54.

Why is this ASX 200 stock falling?

Investors have been selling the gold miner’s shares after a pullback in the gold price overshadowed the release of third quarter results revealing the strongest quarterly performance in its history.

According to the release, Alkane delivered record revenue of $274.4 million for the three months ended 31 March 2026. This compares to revenue of $63.2 million in the prior corresponding period.

The increase was driven by higher gold equivalent sales, the addition of the Costerfield and Björkdal operations following its merger with Mandalay Resources, and stronger realised gold prices.

Alkane sold 43,373 gold equivalent ounces during the quarter at an average realised gold price of $6,315 per ounce and an average realised antimony price of $34,394 per tonne.

Record production

Production was also strong. Alkane produced 44,669 ounces of gold and 377 tonnes of antimony during the quarter. On a gold equivalent basis, production reached 45,776 ounces, supported by contributions from Tomingley, Costerfield, and Björkdal.

The ASX 200 stock’s EBITDA came in at a record $161.2 million, compared to $20.8 million a year earlier.

Most notably, net profit increased to a record $93 million. This compares with a profit of $8.1 million in the prior corresponding period.

Free cash flow was also very strong at $127.6 million, up from $7.7 million in the third quarter of FY 2025.

Management commentary

The ASX 200 stock’s managing director, Nic Earner, was pleased with the quarter. He said:

Alkane has just delivered the strongest quarter in its history. During a period of high gold and antimony prices, the power of our three mine portfolio delivered exceptional operating results as they produced a record 44,669 ounces of gold and 377 tonnes of antimony, which generated record profit after taxes of $93 million.

The Company ended the quarter in with cash and bullion of $362 million which will provide the support for Alkane’s growth plans. Given the strong performance to date, we move into the second half of the year with momentum and are on track to meet our production and cost guidance for 2026.

Outlook

Alkane confirmed that it remains on track to meet its FY 2026 guidance.

This is gold equivalent production of 155,000 to 168,000 ounces with all-in sustaining costs of $2,600 to $2,900 per ounce.

The post Guess which ASX 200 stock is dropping despite record quarterly profit appeared first on The Motley Fool Australia.

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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.

The Vicinity Centres (ASX: VCX) share price is in focus after the retail property giant announced a $400 million acquisition of Eastern Creek Quarter, set to boost its exposure to metropolitan Sydney and expand its Outlet centre network.

What did Vicinity Centres report?

• Signed contract to acquire Eastern Creek Quarter (ECQ) in Western Sydney for $400 million
• Settlement expected by 30 June 2026, pending landlord consent
• Acquisition funded by existing debt facilities; gearing to rise by around 200 basis points
• ECQ includes a new 20,000 sqm Outlet centre, 10,000 sqm retail centre, and 11,000 sqm large-format retail offering

What else do investors need to know?

ECQ is strategically located in a major growth corridor in Western Sydney, providing Vicinity with more frequent everyday shoppers as well as destination shopping flows. The asset’s mix of retail space covers both convenience and outlet segments.

This acquisition builds on Vicinity’s ongoing strategy to focus on “fortress-style” assets, aiming for strong, sustainable income and lifting its presence in Australia’s biggest city. With a solid track record of driving growth through well-managed centres, Vicinity plans to use its property management expertise to enhance ECQ’s long-term value.

What did Vicinity Centres management say?

Vicinity’s CEO and Managing Director Peter Huddle said:

For some time now, Vicinity has been a selective, timely and disciplined acquirer of strategically aligned retail assets. As a hybrid retail asset that is strategically located and boasts a new Outlet centre with future development opportunity, acquiring ECQ makes sense for Vicinity.

Furthermore, by intentionally maintaining a conservative but flexible capital structure, we have been able to once again, capitalise on an attractive acquisition opportunity, that will enhance earnings resilience and strengthen our future income and value growth profile.

What’s next for Vicinity Centres?

Looking ahead, Vicinity intends to leverage its proven leasing, management and development capabilities to unlock further value at ECQ. Strengthening its Sydney footprint and Outlet offering supports Vicinity’s aspiration to deliver reliable and growing returns for shareholders.

The company remains committed to fortress-style assets in high-performing trade areas and will continue to pursue opportunities that align with its investment strategy.

Vicinity Centres share price snapshot

Over the past 12 months, Vicinity Centres shares have risen 9%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Vicinity Centres: $400m Sydney acquisition expands Outlet network appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.