Category: Stock Market

Yesterday afternoon, Steadfast Group Ltd (ASX: ADF) reported a 14.6% increase in underlying revenue to $1,010.4 million and lifted its interim dividend by 5.1% to 8.2 cents per share for 1H26.

What did Steadfast Group report?

• Underlying diluted EPS (NPAT): 12.4 cps, up 6.9%
• Underlying NPATA: $161.5 million, up 6.3%
• Statutory NPAT: $127.0 million (1H25: $106.4 million)
• Underlying NPAT: $137.5 million, up 7.3%
• Underlying EBITA: $293.6 million, up 12.6%
• Interim fully franked dividend: 8.2 cps, up from 7.8 cps

What else do investors need to know?

Steadfast’s Australasian broker network delivered 4.4% gross written premium (GWP) growth to $6.4 billion, supported by performance improvements, acquisitions, and careful expense management. The underwriting agencies segment contributed $1.2 billion GWP, up 3%, and international businesses recorded a $9.5 million uplift in underlying EBITA thanks to recent acquisitions and organic growth.

The Board is undertaking an independent workplace culture diagnostic with EB&Co to ensure Steadfast’s culture aligns with company values and identify areas for improvement. The company also confirmed the promotion of Hannah Lee to Chief Financial Officer.

What did Steadfast Group management say?

Managing Director & CEO Robert Kelly AM said:

The 1H26 results continued our record of strong growth in revenue and profit and reflects a strong underlying business and the Group’s resilient and adaptable business model. The executive leadership team remains focused on delivering earnings growth and maintaining discipline in the execution of our business strategy to deliver sustainable and solid returns to our shareholders.

What’s next for Steadfast Group?

Looking ahead, Steadfast reaffirmed its FY26 guidance and expects underlying NPATA between $365 million and $375 million, and underlying NPAT between $315 million and $325 million, with diluted EPS growth guidance of 6% to 10%. Management remains committed to its broker hubbing strategy, operational efficiency programs, and exploring further acquisition opportunities.

Key guidance assumptions include modest increases in insurance premium pricing and continued focus on cost and margin discipline across the group.

Steadfast Group share price snapshot

Over the past 12 months, Steadfast shares have declined 27%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post Steadfast Group lifts revenue, profit, and dividend in 1H26 earnings update 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 positions in and has recommended Steadfast Group. The Motley Fool Australia has positions in and has recommended Steadfast Group. 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.

You can barely buy a coffee in the Melbourne CBD for under $5 these days. Yet on the ASX, there are still shares trading below that price point, making them accessible to many investors.

Here are three ASX shares below $5 that I think have serious long-term potential.

PLS Group Ltd (ASX: PLS)

PLS Group has benefited from a strong rebound in lithium prices over the past year, and that recovery is now flowing through to its financial results. This has seen its share price rise to $4.72 this month at the time of writing.

In its FY26 half-year result, the company reported a 40% increase in realised pricing and a 47% lift in revenue to $624 million. Underlying EBITDA jumped to $253 million, with margins expanding to 41%, highlighting the leverage in the business when pricing improves.

Importantly, PLS continues to operate as a low-cost producer, with unit operating costs falling 8% during the half. It also ended the period with $954 million in cash, giving it a strong buffer through the cycle.

Lithium will always be volatile, but with pricing momentum restored and margins recovering, I think PLS offers meaningful exposure to the long-term electrification trend at a sub-$5 share price.

SiteMinder Ltd (ASX: SDR)

SiteMinder is a very different type of opportunity. At the time of writing, it trades at $3, which is down from its high of $7.96.

This is a global hotel distribution and revenue platform with a strong recurring revenue model. It now serves tens of thousands of properties worldwide and continues to expand its Smart Platform offering.

While software stocks have been volatile amid AI disruption fears and valuation resets, SiteMinder has been accelerating annual recurring revenue growth and improving profitability. That combination is not easy to find at this price point.

To me, this looks like a structural growth business trading below $5 due more to market sentiment than a collapse in fundamentals.

DroneShield Ltd (ASX: DRO)

DroneShield is arguably the highest-risk name on this list, but also potentially the most rewarding. Its shares are trading at $2.99 at the time of writing, down from a high of $6.71.

The company develops counter-drone technology designed to detect and defeat unmanned aerial systems. With geopolitical tensions elevated globally, defence spending is increasing in many regions.

DroneShield has been building its sales pipeline and strengthening its product offering, particularly in radio frequency detection and defeat systems. If large contracts convert from its pipeline, revenue growth could accelerate quickly.

At just a few dollars per share, investors are not paying a blue-chip price for this business. But they are getting exposure to a niche defence technology segment that could expand meaningfully over time.

Foolish Takeaway

A share trading below $5 does not make it cheap in the valuation sense. Market capitalisation and earnings power matter far more than the sticker price.

However, when I see companies like PLS, SiteMinder, and DroneShield trading for less than the price of a Melbourne CBD coffee, I cannot help but think there is potential upside if their respective industries move in their favour.

The post 3 ASX shares below $5 with huge potential appeared first on The Motley Fool Australia.

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

The market often focuses on what might happen this quarter. But real wealth is usually built by backing long-term shifts that reshape industries over many years.

By 2030, technology, automation, and digital entertainment could look far larger and more embedded in everyday life than they do today.

With that in mind, here are three ASX exchange traded funds (ETFs) that are positioned around trends that could still be in the early stages.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

Asia remains a powerhouse of innovation and manufacturing.

The Betashares Asia Technology Tigers ETF provides investors with exposure to stocks such as Taiwan Semiconductor Manufacturing Company (NYSE: TSM), Tencent (SEHK: 700), and Baidu (NASDAQ: BIDU).

Taiwan Semiconductor Manufacturing Company is critical to the global semiconductor ecosystem, producing advanced chips used in artificial intelligence, smartphones, and high-performance computing. Tencent dominates digital payments, gaming, and social platforms across China. Baidu continues to invest heavily in AI and autonomous driving technologies.

As AI adoption accelerates and semiconductor demand expands, Asia’s leading tech firms are likely to remain central players. If those trends deepen, this ASX ETF’s underlying businesses could be substantially larger by 2030.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Automation is steadily becoming the backbone of modern industry.

The Betashares Global Robotics and Artificial Intelligence ETF invests in stocks like Nvidia (NASDAQ: NVDA), Intuitive Surgical (NASDAQ: ISRG), and ABB Ltd (SWX: ABBN).

Nvidia’s chips power AI training and inference in data centres worldwide. Intuitive Surgical’s robotic systems are increasingly used in hospitals, improving surgical precision. ABB develops industrial automation systems that help manufacturers boost productivity.

As businesses seek efficiency gains, robotics and AI could move from competitive advantage to basic necessity. By 2030, automation may be far more deeply embedded in manufacturing, logistics, and healthcare. It’s no wonder then that this fund was recently recommended by the team at Betashares.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

Digital entertainment is no longer niche. It is mainstream.

The VanEck Video Gaming and Esports ETF offers investors exposure to stocks such as Nintendo (TYO: 7974), Advanced Micro Devices (NASDAQ: AMD), and Electronic Arts (NASDAQ: EA).

Nintendo remains a global leader in console gaming and intellectual property. AMD designs chips that power gaming consoles and PCs. Electronic Arts develops popular sports and action franchises that generate recurring revenue through in-game content.

Gaming is increasingly shifting toward digital downloads, online services, and esports competitions. As younger generations grow up with gaming as a core entertainment channel, industry revenues could expand well beyond current levels. This fund was recently recommended by analysts at VanEck.

The post 3 fantastic ASX ETFs that could be much bigger in 2030 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Abb, Advanced Micro Devices, Baidu, Intuitive Surgical, Nvidia, Taiwan Semiconductor Manufacturing, and Tencent. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Electronic Arts and Nintendo and has recommended the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool Australia has recommended Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Listed below are three ASX shares that are popular with investors.

But popular doesn’t necessarily mean they are good investments. So, let’s see what Catapult Wealth is saying about them, courtesy of The Bull. Are they buys, holds, or sells?

AMP Ltd (ASX: AMP)

Although Catapult Wealth acknowledges that this financial services company has made progress with its turnaround strategy, it isn’t enough for a positive rating.

This is especially the case given the increased competition for its platforms business. As a result, the wealth management firm has named AMP as a sell. It said:

This diversified financial services company has been making progress with its turnaround strategy. Simplifying the business is revealing positive outcomes. However, there’s a long road ahead for AMP given its disappointing performance over many years.

Its platform business is exposed to the tailwind of a growing superannuation asset pool, but it lags competitors in a space with rapidly evolving technology. The shares were priced at $1.41 on March 1, 2021. The shares were trading at $1.37 on February 19, 2026. Better options exist elsewhere.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator could be one to avoid according to Catapult Wealth. It thinks Domino’s faces too many headwinds and has named its shares as a sell. It explains:

The fast food giant has been expanding into European and Asian markets with some success. However, in our view, DMP faces too many headwinds. Domino’s is battling cost inflation on raw materials, cost of living pressures among consumers and a long term trend towards healthier options.

Also, Domino’s faces significant competition from an ever-growing list of food choices and home delivery services.

Netwealth Group Ltd (ASX: NWL)

One ASX share that Catapult Wealth is positive on is Netwealth. This week, it has named the investment platform provider’s shares as a buy.

While its exposure to the First Guardian collapse was disappointing, the wealth management firm thinks investors should look beyond this and focus on the future. It highlights that Netwealth has a significant growth opportunity with less than 9% market share. It said:

Netwealth agreed in late 2025 to pay compensation of $100.7 million to customers who invested in the First Guardian Master Fund, a collapsed fund that was included on its platform. On February 18, 2026, investors responded positively to the company’s first half results in fiscal year 2026. Platform revenue of $189 million was up 25.3 per cent on the prior corresponding period.

A statutory loss of $2.2 million includes the First Guardian compensation expense. Excluding the expense, net profit after tax of $69 million was up 19.9 per cent. Netwealth is the second fastest growing superannuation and investment platform in Australia, driven in part by technology investment and leadership in a rapidly changing sector. With less than 9 per cent of market share, Netwealth still has plenty of room to continue growing in double digits.

The post Buy, hold, or sell? AMP, Domino’s and Netwealth shares appeared first on The Motley Fool Australia.

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

Fortunately for income investors, there are a lot of ASX dividend shares to choose from on the Australian share market.

To narrow things down, let’s take a look at three that experts are tipping as buys, courtesy of The Bull. Here’s what they are recommending:

Charter Hall Long WALE REIT (ASX: CLW)

The team at Catapult Wealth thinks this property company could be an ASX dividend share to buy this week.

It likes the company due to its reliable income stream and generous dividend yield, explaining:

This Australian real estate investment trust reported solid first half results in fiscal year 2026, which were in line with expectations. Statutory earnings of $153.6 million increased 209 per cent compared to the prior corresponding period. Net tangible assets of $4.68 per security were up 2 per cent from June 30, 2025.

CLW’s share price has declined due to the re-emergence of inflation and its impact on interest rates and bond yields. CLW appeals for its reliable income stream. It was recently trading on a dividend yield above 6.5 per cent, supported by a high quality property portfolio with occupancy of 99.9 per cent and a weighted average lease length of more than nine years.

Wesfarmers Ltd (ASX: WES)

Over at Shaw and Partners, its analysts believe Wesfarmers could be an ASX dividend share to buy.

The broker is a fan of the Bunnings owner and believes it has one of the best management teams around. It believes this leaves it well-placed to continue creating value for investors. It said:

This industrial conglomerate remains one of the best managed companies in Australia. Its management team consistently demonstrates smart capital allocation and a disciplined acquisition strategy amid maintaining a strong oversight on operations across its diverse group of businesses. This quality of leadership gives me confidence that Wesfarmers can continue delivering long term value, even through changing economic conditions.

Its diversified revenue streams across retail, chemicals and industrial operations also provide resilience that few companies can match. The company posted its first half results for fiscal year 2026 on February 19. Revenue of $24.212 billion was up 3.1 per cent on the prior corresponding period. Statutory net profit after tax of $1.603 billion increased 9.3 per cent.

Woolworths Group Ltd (ASX: WOW)

Another ASX dividend share that is being recommended as a buy by Shaw and Partners is Woolworths.

It likes the supermarket giant due to its defensive qualities and dependable long-term outlook. It said:

The supermarket giant’s revenue base is remarkably consistent, supported by everyday essential spending. Even during softer economic periods, consumers continue to prioritise groceries and household staples, which helps stabilise WOW’s earnings. The company’s ongoing investment in digital shopping, supply chain improvements and customer experience initiatives should continue to support dependable, long term performance.

The post Experts name 3 ASX dividend shares to buy appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Woolworths Group. 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.

The S&P/ASX 200 Index (ASX: XJO) endured another negative session this Tuesday, its second slight loss of the trading week thus far.

By the time trading wrapped up today, the ASX 200 had given up a morning lead to close down 0.041%. That small drop leaves the index at 9,022.3 points.

This miserly session for the ASX follows an even nastier start to the American trading week on Wall Street in the early hours of this morning.

The Dow Jones Industrial Average Index (DJX: .DJI) was crushed, dropping 1.66%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared slightly better, but still lost 1.13% of its value.

But let’s return to the local markets and take stock of how the different ASX sectors fared amid today’s tough trading conditions.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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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.

Betashares investment strategist, Tom Wickenden, says ‘the great rotation’ into small-cap shares has begun.

Wickenden points out that 2025 was the first year since 2020 that ASX small-cap shares outperformed the rest of the market.

The S&P/ASX Small Ords Index (ASX: XSO), which tracks companies ranked 101 to 300 by market cap, delivered a total return (capital growth plus dividends) of 24.96% last year.

By comparison, the S&P/ASX All Ords Index (ASX: XAO) delivered total returns of 10.56%.

Small-cap shares typically have market caps between a few hundred million dollars and $2 billion.

Wickenden said:

Following years of large cap earnings stability and pricing power during the higher-than-normal interest rate environment, 2025 gave way to a rate cutting cycle supporting mid and small caps. 

Lower interest rates reduce smaller companies’ debt servicing costs and boost their earnings potential.

Wickenden said:

Mid and small caps in Australia also reported much stronger earnings growth throughout 2025, further driving the performance turnaround. 

Lower funding costs and easing input pressures helped to lift margins and free cash flow across these segments. 

Wickenden points to the Betashares Australian Small Companies Select ETF (ASX: SMLL) as an example of the trend.

SMLL ETF delivered a total return of 36.39% last year. It was the second-best-performing ASX ETF holding Aussie shares in 2025.

Here are three ASX exchange-traded funds (ETFs) that provide exposure to small-cap shares both on the ASX and overseas exchanges.

Betashares Australian Small Companies Select ETF (ASX: SMLL)

This ASX-focused ETF seeks to track the returns of the Nasdaq Australia Small Cap Select Index before costs.

Betashares explains the ETF’s strategy:

SMLL invests in a portfolio of ASX-listed companies that are generally within the 91-350 largest by free float market capitalisation. The portfolio will typically consist of 50-100 securities.

SMLL’s index uses screens that aim to identify companies with positive earnings and a strong ability to service debt.

Relative valuation metrics, price momentum and liquidity are also evaluated as part of the selection process.

ASX gold stocks dominate the ETF’s list of top holdings.

There’s Perseus Mining Ltd (ASX: PRU) shares at 6.1%, Westgold Resources Ltd (ASX: WGX) 4.8%, Genesis Minerals Ltd (ASX: GMD) 4.6%, Vault Minerals Ltd (ASX: VAU) 4.4%, Capricorn Metals Ltd (ASX: CMM) 4%, and Ramelius Resources Ltd (ASX: RMS) 3.9%.

Over the past five years, SMLL ETF has delivered an average annual total return of 9.73% after fees.

Vanguard MSCI International Small Companies Index ETF (ASX: VISM)

VISM ETF seeks to track the MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars before fees.

This ASX ETF gives investors access to more than 4,000 smaller companies operating in more than 20 developed countries.

The top holdings are flash memory designer and manufacturer Sandisk Corp (NASDAQ: SNDK) 0.82%, US laser and photonics technologies developer, Coherent Corp (NYSE: COHR) 0.39%, and aircraft engine leasing operator, FTAI Aviation Ltd (NASDAQ: FTAI) 0.29%.

VISM ETF has delivered an average annual total return of 9.9% after fees over the past five years.

VanEck MSCI International Small Companies Quality ETF (ASX: QSML)

QSML ETF seeks to mirror the performance of the MSCI World ex Australia Small Cap Quality 150 Index before costs.

This provides exposure to a diversified portfolio of 150 high-quality, small-cap companies in developed countries outside Australia.

Stocks are selected on three key fundamentals: return on equity (ROE); earnings stability; and low financial leverage.

The top holdings are US aerospace industrial company, Curtiss-Wright Corp (NYSE: CW) 1.9%, precious metals royalties company, Royal Gold Inc (NASDAQ: RGLD) 1.8%, and US convenience store operator, Casey’s General Stores Inc (NASDAQ: CASY) 1.65%.

QSML ETF began trading in March 2021.

Over the past three years, the ASX ETF has produced an average annual total return of 14.87% after fees.

The post 3 ASX ETFs capitalising on ‘the great rotation’ into small caps appeared first on The Motley Fool Australia.

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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 Coherent and Curtiss-Wright. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Casey’s General Stores. 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.

Lendlease Group (ASX: LLC) shares are trading in the red again on Tuesday afternoon. At the time of writing, the shares are down another 2.94% for the day, to $4.12 a piece.

Today’s decline follows a sharp sell-off of the international property developer’s shares yesterday after it posted its first-half FY26 results.

Since the announcement early on Monday morning, Lendlease shares have now fallen 10.13% to an all-time low. 

The current trading price also represents a 20.06% decline for the year to date and a 34.32% decline over the past 12 months.

What spooked investors in Lendlease’s latest results?

The property and infrastructure group reported a statutory loss after tax of $318 million for the half year ended 31 December 2025. 

The loss, which includes non-cash negative investment property revaluations and impairments of $118 million primarily in the US, UK, and Singapore, is down from a $48 million profit for the half year for FY24.

Lendlease said the result has been driven by non-cash negative investment property reevaluations and impairments. 

Operating profit after tax (OPAT) was at a loss of $200 million, including profit of $87 million from its Investments, Development and Construction (IDC) division and a loss of $287 million from its Capital Release Unit (CRU).

The company also revealed that it had managed to reduce its net debt to $3.3 billion, which is down $0.1 billion on FY25. It also achieved group statutory gearing of 25.8% and available liquidity of $3.3 billion, which provides balance sheet flexibility.

The Board said it remains committed to returning surplus capital to securityholders, including through an on-market buyback. This will occur once there is more certainty that underlying gearing will be sustainably at 15%. It also assumes that previously stated preconditions have been met.

Lendlease also declared an interim distribution of 6.2 cents per share. This will be paid on 18th March, and the record date is 2nd March. 

Are Lendlease shares a buying opportunity or is it time to sell?

Analysts haven’t confirmed or revised their position or target price on Lendlease shares following its results yesterday morning. But we might expect some movement in the coming days.

At the time of writing, TradingView data shows that analysts are divided about the outlook for Lendlease shares. Out of seven analysts, four hold a strong buy rating on Lendlease stock. Another two have a hold rating, and one analyst has rated the shares as a sell.

However, after the latest crash, all target prices imply an upside ahead for the shares, at the time of writing.

The average target price is currently $5.41 per share, implying a 30.40% upside over the next 12 months. If the maximum target price remains unchanged, then investors could be looking at a huge 56.82% upside to $6.50 a piece.

The post Are Lendlease shares a buy following its half-year results? appeared first on The Motley Fool Australia.

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

Adore Beauty Ltd (ASX: ABY) shares are being smashed on a profit result its Chief Executive has characterised as “strong”.

The company said in a statement to the ASX on Tuesday that it had posted record underlying EBITDA of $4.1 million for the first half of the year, up 14.5% on the prior corresponding period.

In a separate release, however, the company says net profit was down 69.9% to $189,000, while sales increased markedly, from $102.9 million to $111.9 million.

Investors clearly didn’t like the numbers, pushing Adore Beauty shares 23.3% lower to 66 cents, not far off their 12-month lows of 61 cents.

Management positive on the outlook

Chief Executive Officer Sacha Laing said regarding the result:

Adore Beauty has achieved a strong financial result in the first half of FY26, benefitting from our maturing customer-led strategy. We cost-effectively acquired new customers at the fastest rate in four years whilst halving acquisition costs with record levels of marketing efficiency. Importantly, operating leverage, growing owned brands, and disciplined cost management delivered record earnings despite margin pressures arising from exceptionally strong Black Friday period sales. We stepped-up our omni-channel rollout during the half, opening 10 stores since July with a further six in the pipeline for the remainder of CY2026. While more than half of these stores opened in the final months of CY2025, we are already seeing the benefit of our retail network on customer acquisition and brand awareness.

Ms Laing said while retail conditions remained challenging, “improving quality of revenue remains a priority for the business, as we continue to acquire more customers at the top of the funnel, reduce our promotional cadence, increase share-of-wallet, and grow our higher-margin iKOU brand”.

The company said it had opened its first stores in both Queensland and South Australia during the first half, with all of the new stores expected to reach maturity in 12-18 months, and make a meaningful contribution to the business from the second year of operation.

The group’s loyalty program now has 509,000 members, contributing 78% of sales in the first half, Adore said.

The company said regarding this:

‘Adore Rewards’ is structured to reward frequent and repeat purchasing behaviour, increasing engagement and share-of-wallet while supporting marketing efficiency. The Adore Beauty app is another driver of marketing efficiency, accounting for 35% of online sales during the period, up from 25% for the same period last year. The strong performance of loyalty and app continues to improve quality of revenue, offsetting the reduction in promotional cadence.

The company also said it had secured a lease for a new major national fulfilment centre, which would unlock material operating efficiencies from the second half of FY27.

Adore Beauty was valued at $80.8 million at the close of trade on Monday.

The post Despite a “strong” financial result, this retailer is being sold down heavily appeared first on The Motley Fool Australia.

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

S&P/ASX 200 Index (ASX: XJO) shares can be a great source of passive income. Term deposits offer guaranteed income, but the payout does not grow. Therefore, Term deposits can’t provide inflation protection for an income stream either.

An ASX 200 share can provide that golden trifecta of a good dividend yield, payout growth and capital growth.

There are a few ASX 200 shares that could be an excellent pick compared to a term deposit.

APA Group (ASX: APA)

APA Group is an important business for the Australian economy because of its large energy asset base.

Its key asset is the gas pipeline network that transports half of the nation’s gas usage. The business has recently announced a plan to expand its network to increase its gas capacity to transport more volume from the north of the country (supply) to the south (demand) which will comes with a cost of hundreds of millions of dollars, but could unlock stronger earnings.

The business also has gas storage, gas processing, gas-powered energy generation, wind farms, solar farms, batteries and electricity transmission.

APA’s asset base allows it to generate defensive earnings each year, with a large majority of revenue growth linked to inflation.

As the cash flow grows, the ASX 200 share is able to fund a higher distribution for investors.

APA has grown its annual distribution every year for the past two decades, which is the second-best growth streak on the ASX.

It’s expecting to grow its FY26 annual distribution by 1.75% to 58 cents per security. That translates into a potential distribution yield of 6.3%, noticeably better than a term deposit.

Centuria Industrial REIT (ASX: CIP)

The other business I want to highlight is this real estate investment trust (REIT), which focuses on industrial properties in important metropolitan areas.

It owns a few different types of industrial buildings: distribution centres, manufacturing and production, transport logistics, data centres and cold storage.

There are a number of positives that are providing income tailwinds including a growing population, increased e-commerce adoption, fresh food and pharmaceutical demand, increased data centre demand, onshoring of supply chains and limited supply of new industrial properties.

Those positive demands are helping drive the underlying rental income potential of the business. It reported that in the first half of FY26, it delivered 5.1% like for like net operating income (NOI) growth.

It’s expecting to deliver funds from operations (FFO – rental earnings) per security of between 18.2 cents to 18.5 cents in FY26. That would be growth of up to 6% year-over-year.

The ASX 200 share expects to deliver accelerating earnings growth in the medium-term as its rental contracts reset to market rates rather than being 20% ‘under-rented’ on average.

Its net tangible assets (NTA) per unit is $3.95, so it’s trading at a discount of around 20%, which is very appealing to me. It’s like being able to buy a property portfolio at 20% less than it’s actually worth.

On the distribution side of things, it’s expecting to increase its annual distribution by 3% to 16.8 cents per security in FY26. That translates into a forward distribution yield of 5.3%. That’s more appealing to me than a term deposit.

The post Forget term deposits! I’d buy these two ASX 200 shares instead 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.