Category: Stock Market

ANZ Group Holdings Ltd (ASX: ANZ) shares have sunk lower on Wednesday afternoon. At the time of writing, the major bank’s shares are down 1.88% to $34.48 a piece.

Today’s drop comes off the back of a run of share price declines. Over the past week, ANZ shares have tumbled 7%. 

The bank shares are now down 5% for the year to date, but are still 21% higher than this time 12 months ago.

Analysts are uncertain about the outlook for the shares, too. TradingView data shows that half (8 out of 16) have a hold rating on ANZ shares. Another 6 have a buy or strong buy rating, and two have a sell or strong sell rating on the stock.

The average $35.54 target price implies a small 3% potential upside over the next 12 months. However, there is a large swing between the maximum and minimum target prices.

Some think the shares could tumble another 28% to $24.96, while others think the share price could climb 20% higher to $41.50 each.

The outlook for ANZ shares might look uncertain this year, but what about the bank’s passive income?

Are ANZ shares a good play for passive income?

As one of Australia’s big four major banks, ANZ is generally considered to have stable earnings and predictable cash flow. 

While bank stocks are usually considered cyclical, ANZ’s strong deposit base and diversified portfolio mean it is also relatively defensive in nature.

In early May, the bank reported a 70% jump in its cash profit for the first half of FY26. Statutory profit was also up 62%, operating income was up 3%, and the bank’s operating expenses were 22% lower.

ANZ confirmed it has now achieved 49% of its gross cost-savings target of $800 million for FY 2026.

The bank’s performance means it is able to make a reliable and regular dividend payment to shareholders every six months, payable in July and December. 

It also offers both a dividend reinvestment plan (DRP) and a bonus option plan (BOP) as alternatives to receiving cash dividends on ANZ ordinary shares.

At the same time as its latest results announcement, ANZ also confirmed an 83-cent per share dividend payment, franked at 75%, to be paid to shareholders in July. This translates to a forward dividend yield of around 4.8%.

The 83-cent dividend is the same payout that investors have been receiving every six months since July 2024. Although the latest payout will receive an additional 5% franking (previously 70%).

Passive income investors will be pleased, though. CommSec expects that ANZ will pay an annual dividend per share of $1.68 in FY26. This translates to a 4.87% dividend yield at the time of writing. The broker thinks the dividend will keep climbing too, to $1.72 per share in FY27.

That’s a decent passive income. It also puts ANZ at the front of the pack with the highest dividend yield offering among the big 4 major banks. 

The post Are ANZ shares a good buy for passive income? 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.

The ASX mining share sector has a number of compelling businesses which could be underrated by the market.

The investment team of the listed investment company (LIC) WAM Active Ltd (ASX: WAA) have outlined two ASX stocks that look like appealing investments with their outlooks and the current valuations.

Miners may not have the strongest economic moats on the ASX, but they do have the ability to deliver big returns when resource prices increase and/or when projects are found and developed.

Let’s dig into why the experts at WAM like these two ASX mining shares.

Solstice Minerals Ltd (ASX: SLS)

The fund manager said that Solstice Minerals is advancing the Nanadie copper-gold project near Meekatharra in Western Australia.

WAM noted that, in April, the company released visual results of deeper drilling below earlier high-grade copper hits.

The fund manager said these results suggest the mineral system extends well below the current resource, highlighting the deposit’s potential scale.

In the near-term, WAM thinks that there is potential upside for the Solstice Minerals share price as “drilling helps define a larger resource, while laboratory results confirming grade and continuity build confidence in a pathway towards an approximate 250 million tonne deposit.” The fund manager said this suggests the ASX mining share is undervalued relative to its peers on comparable multiples.

WAM said that it remains bullish on copper, supported by the energy transition and electrification themes.

Core Lithium Ltd (ASX: CXO)

The other ASX mining share that the experts highlighted was Core Lithium, which ones 100% of the Finniss lithium project in the Northern Territory. It also has exploration exposure across the Northern Territory and South Australia in base metals, rare earths and gold.

WAM noted that the share price rallied in April on two supportive developments.

First, a 20,000 tonne sale of fine-particle ore ready for shipment to Glencore’s international trading arm at approximately $405 per tonne, together with the earlier sale from its lithium concentrate stockpile, generating approximately $18 million to support the Finniss restart.

The fund manager said that while the transactions were modest in dollar value, they suggested demand and sentiment had improved enough to support a restart.

While the transactions were modest in dollar value, they suggested demand and sentiment had improved enough to support a restart.

Broader optimism across the lithium sector also strengthened during the month as supply discipline took hold and lithium prices increased.

The experts then explained why they’re excited about the business:

We remain bullish on lithium, supported by strong demand from battery energy storage systems and electric vehicles, with battery lithium intensity growing at more than 30% per annum.

Core Lithium offers strong exposure to a recovery in lithium prices as it works towards a relatively low-risk restart in the second half of 2026, and we expect the supply response to be more disciplined this cycle.

The post Experts rate these 2 ASX mining shares as compelling buys appeared first on The Motley Fool Australia.

More reading

• Why CBA, Core Lithium and Fortescue shares are making waves on Wednesday
• Core Lithium shares jump again after a major Finniss milestone
• ASX mining stock drops despite big lithium news
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• This $1 billion ASX lithium stock is in the spotlight today. Here’s why

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are down 0.4% to 8,635.7 points on Wednesday.

The share market has been volatile this year amid a metals rout in late January and the ongoing global oil shock.

ASX 200 shares are now in the red for 2026, down 1% in the year to date (YTD) at the time of writing.

However, brokers say the following three ASX 200 shares are on a completely different trajectory.

In fact, they reckon these stocks could more than double in value over the next year.

Let’s find out why.

Catalyst Metals Ltd (ASX: CYL)

The Catalyst Metals share price is $5.64, up 1.5% today, and down 24% in the YTD.

Morgans has a buy rating on this ASX gold mining share with a 12-month target of $15.13.

This implies a potential 163% capital gain over the next 12 months.

After reviewing the miner’s 3Q FY26 report, Bell Potter said:

We maintain our BUY rating, with valuation supported by strong cash generation and a clear production growth pipeline, albeit with near-term cost pressures emerging.

Catalyst reported gold production of 26.1koz at an all-in sustaining cost (AISC) of A$2,901 per ounce for 3Q FY26.

Morgans said the miner generated solid operating cash flow of A$103 million at an average realised price of A$7,014 per ounce.

CYL continues to strengthen their balance sheet, adding A$39m during the quarter to close with A$277m in cash and bullion while reinvesting heavily across growth and exploration initiatives.

Growth momentum continues across the Plutonic Belt, with multiple new ore sources advancing (Trident, K2, Old Highway) alongside a high-grade discovery at Cinnamon, supports the pathway to c.200kozpa production.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is $2.03, up 2% today and down 27% YTD.

Mesoblast specialises in allogeneic cellular medicines for severe inflammatory diseases.

Bell Potter has reaffirmed its speculative buy rating on this ASX 200 healthcare share.

The broker has a $4.45 price target on Mesoblast shares, suggesting a more than doubling in value over the next year.

Bell Potter said:

The company’s future is looking brighter than ever with revenues expanding and new product approvals now well advanced for heart failure and chronic lower back pain. 

At the very least, today’s cash flow result should provide shareholders with confidence that MSB can generate earnings and cash flow positive operations from sales of Ryoncil alone.

Objective Corporation Ltd (ASX: OCL)

The Objective Corporation share price $10.69, down 0.09% today and down 35% YTD.

The ASX tech share hit a fresh 52-week low of $10.33 today.

Shaw and Partners reiterated its buy rating on Objective Corporation shares last week.

The broker has a price target of $22.10, implying a 106% upside ahead.

Last week, Objective Corporation founder and CEO Tony Walls spoke at Shaw & Partners’ TechRise conference.

The broker said:

Management framed OCL as being in its strongest position in years despite broader SaaS disruption narratives, with FY26 ARR guidance unchanged at 10–14% and 15% reiterated as the core long-term target.

The post 3 ASX 200 shares predicted to double over 12 months 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 Objective. The Motley Fool Australia has positions in and has recommended Objective. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Anson Resources Ltd (ASX: ASN) took off on Wednesday after the ASX lithium company said a demonstration plant at its Green River project had been greenlit.

Major Korean partner

The company said in a statement to the ASX that it had struck an agreement with major Korean conglomerate POSCO for the construction and operation of a demonstration plant at the Green River project in Utah.

Anson shares were trading 45.3% higher on the news at 7.7 cents, with more than 33 million shares changing hands.

The company said further re the agreement:

Under the agreement POSCO committed to setting up its direct lithium extraction demo-plant to extract lithium from brines produced from the Bosydaba #1 well owned by Anson at the Green River Lithium Project. POSCO will be responsible for engineering, construction, operation and maintenance of the facility, while Anson will provide access to property, infrastructure and brine supply. POSCO will pay Anson a facilitation fee of about $7.2 million.

Anson said POSCO was expected to commence operation of the demonstration plant in 2027 and complete the work in 2028.

The two companies would also continue to explore potential cooperation opportunities, “including joint investment in the project, during the operation of the demonstration plant, as outlined in the MoU Agreement”, Anson said.

Racking up wins

The demonstration plant news followed Anson announcing on Monday that its subsidiary A1 Lithium had been admitted as a member of the U.S. Defense Industrial Base Consortium (DIBC), which is a program overseen by the Department of War.

Anson said further:

Membership of the DIBC provides A1 Lithium with enhanced access to U.S. federal agencies, including the Department of Energy (“DOE”) and DoW, and supports engagement on programs focused on critical minerals, advanced manufacturing and domestic supply chain resilience. A1 Lithium has previously submitted applications under several U.S. Department of Energy grant and funding initiatives, which are currently pending, and continues to actively evaluate additional opportunities aligned with the development of the Green River Lithium Project in Utah.

Anson Executive Chairman Bruce Richardson said regarding this announcement:

Admission into the DIBC represents another important milestone for the company and further strengthens its engagement with key U.S. government initiatives focused on critical minerals and domestic supply chain development. The Green River Lithium Project is strategically positioned within the United States and aligns strongly with current federal priorities surrounding secure domestic lithium supply. We look forward to continuing discussions with government agencies and industry participants as we advance our projects toward development.

Anson was valued at $85.8 million at the close of trade on Tuesday.

The post Which junior ASX lithium stock is surging 45% on good news? 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 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 All Ordinaries Index (ASX: XAO) has slumped 1.6% in 2026, but this ASX All Ords healthcare share has taken a much bigger hit.

The beaten down stock in question is Oneview Healthcare (ASX: ONE).

In early afternoon trade on Wednesday, OneView Healthcare shares are down 3.0%, trading for 16 cents apiece.

This sees the ASX All Ords healthcare share down a painful 60.0% year to date.

Looking ahead, however, Securities Vault’s Nathan Lodge believes the company, which provides digital tools for patients, families and caregivers, could be poised to rebound (courtesy of The Bull).

OneView is currently partnered with healthcare systems in the United States, Australia, Ireland, the Middle East and Asia, helping to unify the care experience in more than 80 hospitals.

Should you buy the ASX All Ords healthcare share today?

“Its care experience platform integrates patient engagement tools into hospital systems,” said Lodge, who has a buy recommendation on the ASX All Ords healthcare share.

“The company’s offering should generate demand,” he added. “Potential upside exits following positive momentum.”

According to Lodge:

The investment thesis hinges on hospital digitisation and patient experience mandates, particularly in the US, where funding tailwinds remain supportive.

As for the second reason you might want to buy OneView shares today, Lodge said, “As deployments scale up, Oneview’s recurring revenue model should drive operating leverage.”

Summing up his bullish outlook on the beaten down stock, Lodge concluded, “Importantly, the company has already secured major hospital clients, reducing execution risk compared to earlier stage peers.”

What’s the latest from OneView?

OneView Healthcare reported its March quarter results on 27 April.

The ASX All Ords healthcare share closed up 2.9% on the day after reporting a $9 million quarter-on-quarter increase in its cash balance to $17.1 million. That was spurred by a successful $19 million capital raising during the quarter.

“The successful completion of the recent capital raise in extremely challenging market conditions represents a strong endorsement of Oneview’s strategy and execution,” OneView Healthcare CEO James Fitter said.

Looking ahead, Fitter added:

The first quarter of the year has been a busy period for the business, with continued engagement across our sales channels and progress that supports our objectives for 2026…

With a strengthened balance sheet, continued deployment activity across new and existing customers, and growing demand for digitally supported bedside experiences, the company is well positioned to maintain momentum as we progress through the year.

The post 3 reasons this beaten down ASX All Ords healthcare share could come roaring back appeared first on The Motley Fool Australia.

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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.

CSL Ltd (ASX: CSL) shares are in the red again in Wednesday’s trade. 

At the time of writing, the shares are down another 0.22% to $98.33 a piece. Although at one point earlier this morning, the shares were up 2.3% to $100.80 each. 

It’s more bad news for investors after the shares suffered their biggest ever one-day crash on Monday this week. 

CSL shares tumbled 20% on Monday following the company’s latest market update. The company announced it has lowered its FY26 revenue guidance to US$15.2 billion on a constant currency basis, and an NPATA of around US$3.1 billion. This is down from a revenue of US$15.6 billion and profit of US$3.3 billion reported in FY25.

Today’s decline means CSL shares are now even further away from levels seen in 2024-25.

The biotech company’s share price has now dropped 28% over the past month, is 43% lower year-to-date, and is currently trading 59% below levels seen this time last year.

Why do CSL shares keep tumbling?

Dwindling investor confidence is the main reason that CSL shares keep tumbling.

CSL was once widely viewed as one of the most dependable growth companies on the ASX. But over the past few years, it has experienced a notable slowdown in earnings growth, operational challenges, and other headwinds, including lower vaccine demand, a surprise restructuring, and a shock CEO exit.

There has also been a broad market rotation away from healthcare-related stocks in 2026. 

ASX healthcare shares have lagged behind most other sectors on the index so far this year as investors reposition themselves towards ASX energy stocks, resources, and defensive assets. 

Are CSL shares still a buy?

Analysts have widely considered the biotech company’s shares oversold and undervalued for some time now. But it looks like sentiment is finally shifting.

Just two weeks ago, TradingView data showed that 12 of 18 analysts had a buy or strong buy rating on the stock, with an upside of up to 109% to $268.84 per share over the next 12 months.

But today, that data has been significantly revised.

The latest data shows that only 9 of 18 analysts now have a buy or strong buy rating on the shares. Another nine have a hold rating.

The potential target prices are much lower, too.

The maximum target price has been lowered from $269.84 to $195.19. Although it still implies a potential 98% maximum upside ahead for the shares.

The average $147.63 target price implies a potential 50% upside ahead for investors at the time of writing. 

Can CSL shares regain momentum?

It’s possible, but the latest guidance downgrade hasn’t helped investor sentiment. It’ll take a proven track record of short-term revenue and profit growth for investors to regain confidence.

Although if CSL is able to speed up its earnings growth, investor sentiment could shift quickly, and the share price could start to rebound. 

The post Down 59%: Will CSL shares ever regain momentum? 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 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.

Our Aussie share market is having another difficult session on Wednesday, and the selling is starting to look more persistent.

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is down 0.38% to 8,637 points.

That leaves the benchmark index on track for its fourth straight daily decline. It also adds to a weak month for investors, with the ASX 200 finishing higher on just 6 trading days over the past month.

The index is still up about 4.46% over the past year, but the shorter-term picture looks much weaker. Over the past month, the ASX 200 is now down 3.61%.

Here’s what’s dragging the market lower.

CBA sell-off hits the banks

Commonwealth Bank of Australia (ASX: CBA) is doing most of the damage on the ASX 200 today.

CBA shares are currently down 9.64% to $155.03 after the bank released its latest quarterly update.

The bank reported an unaudited quarterly cash profit of $2.7 billion, down 1% on the prior quarter. It set aside more money to cover possible bad loans, with its loan impairment expense rising to $316 million.

The selling has also spread across the other major banks.

Westpac Banking Corp (ASX: WBC) is down 3.11%, National Australia Bank Ltd (ASX: NAB) is down 1.50%, and ANZ Group Holdings Ltd (ASX: ANZ) is down 1.54%.

Investors are also digesting the Federal Budget, with analysts assessing what changes to negative gearing and the capital gains tax (CGT) could mean for investor lending growth.

Miners provide some support

Nonetheless, the fall could have been worse without support from the big miners.

BHP Group Ltd (ASX: BHP) is up 3.47% to $61.855, while Rio Tinto Ltd (ASX: RIO) is 2.68% higher to $190.39, and Fortescue Ltd (ASX: FMG) is up 1.87% to $22.32.

That has helped cushion the broader market, but it has not been enough to offset the pressure from the banks.

There are also some strong individual moves.

Aristocrat Leisure Ltd (ASX: ALL) is up 12% after reporting a stronger half-year result and expanding its share buyback program by $1 billion. The company also lifted its interim dividend to 50 cents per share.

On the other side, Zip Co Ltd (ASX: ZIP) is down 4.68% to $2.345 after confirming it must rebrand its Australian products and services following a court ruling.

Wages data adds to the mix

Investors also had fresh economic data to consider.

The Australian Bureau of Statistics (ABS) said wages rose 0.8% in the March quarter, matching the previous two quarters. Annual wage growth eased to 3.3%, down from 3.4% a year earlier.

That’s not a shocking result, but it does come at a time when investors are already watching inflation and interest rates.

The post The ASX 200 just fell for a fourth straight day. Should investors be worried? appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is having a poor session on Wednesday. In afternoon trade, the benchmark index is down 0.4% to 8,635.4 points.

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

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura Rare Earths share price is up 11% to 36.75 cents. This morning, this rare earths developer announced a binding offtake term sheet with Traxys North America. This will see Arafura supply 500 tonnes per annum of NdPr oxide from the Nolans project. Arafura’s managing director, Darryl Cuzzubbo, said: “We have long believed that the right partners would define the quality and durability of Arafura. The offtake relationships we have established are not just transactional arrangements. They reflect growing alignment between industry participants and government-supported initiatives aimed at establishing resilient critical minerals ecosystems as an imperative, not merely an opportunity.”

Aristocrat Leisure Ltd (ASX: ALL)

The Aristocrat Leisure share price is up 12% to $51.51. This morning, the gaming technology company released its half-year results and revealed normalised revenue of $3.03 billion. This was up 6.4% in constant currency. Normalised EBITA increased 6.2% to $1.12 billion, or 14% in constant currency. Another positive is that the company has increased its on-market share buy-back program by $1 billion (up to $2.5 billion in aggregate) and extended it through to 12 May 2027. Aristocrat’s CEO and managing director, Trevor Croker, said: “Aristocrat delivered a strong first half, with clear progress across the business and market share gains in key segments. Our earnings growth reflects disciplined execution, strong revenue momentum throughout our portfolio, and a continued focus on efficiency and extracting operating leverage.”

BHP Group Ltd (ASX: BHP)

The BHP share price is up a further 3% to $61.78. This follows yet another strong rise in the copper price overnight, taking the base metal to a record high. In other news, this morning BHP announced the appointment of Mark Vassella as a non-executive director. Vassella has over 40 years’ experience in the global steel industry and materials value chain. He was the CEO and managing director of BlueScope Steel Ltd (ASX: BSL) from January 2018 to January 2026.

Perenti Ltd (ASX: PRN)

The Perenti share price is up 7% to $2.17. This morning, the mining services company announced that its Barminco business has been awarded an $850 million four-year contract by Bellevue Gold Ltd (ASX: BGL). The company’s CEO, Mark Norwell, said: “This contract award reinforces Barminco as a global leader in underground mining, further strengthening Barminco’s underground mining portfolio and earnings in Australia.”

The post Why Arafura, Aristocrat, BHP, and Perenti shares are racing higher today 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Share prices for three of Australia’s major fast food operators have all been under pressure in recent months, with the analysts at Morgans saying this means it could be a good time to buy.

Consumers looking for quality

In a research note distributed to clients this week, the broker said it had done extensive market research, as well as its own consumer survey, which indicated that more than half of consumers cited food quality and taste as the most important factors affecting which fast food they bought, with only a small number citing cost as the primary issue.

The research also indicates that the sector has an opportunity to capitalise on changing consumer trends.

As Morgans said in its research note:

As alcohol consumption falls sharply among younger Australians, discretionary capacity is migrating toward food experiences that meet a quality threshold. Nearly six in ten Gen Z diners expect to spend more on eating out in 2026 than in 2025, making them the most growth-oriented dining cohort in the market.

All three of the companies analysed by Morgans have a buy rating, so without further ado, let’s have a look at what they’re saying.

Guzman Y Gomez Ltd (ASX: GYG)

Morgans said Guzman Y Gomez is in favour because of its high-quality, health-led proposition.

They added:

This supports structural long-term growth. Material earnings growth is well supported by daypart expansion, strong unit economics, a large white space opportunity and operating leverage, with the pace of US loss narrowing the key variable to monitor.

Morgans has a price target of $26.70 on Guzman Y Gomez shares compared with $17.14 currently.

Guzman Y Gomez is among the most-shorted stocks on the ASX.

Collins Foods Ltd (ASX: CKF)

The KFC and Taco Bell operator is a “defensive compounder”, Morgans says, having a cash-generative business, “with a management team set to navigate a difficult macroeconomic backdrop, and a value proposition that makes it a natural beneficiary of casual dining trade-down”.

Morgans said the German growth pipeline was effectively unpriced at current levels, “and the valuation is undemanding”.

Morgans has a price target of $12.50 on Collins Foods shares compared with $8.02 currently.

Colins Foods is valued at $935.6 million.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Morgans said Domino’s had been an unintentional case study for the sector by training customers to expect discounts, eroding the pricing power needed to maintain franchisee profitability.

The broker said Domino’s is now a turnaround story, with strong foundations and a solid management team.

They added:

However, we require consecutive results showing improved EBIT margins and evidence of returning franchisee profitability without further top-line deterioration before full conviction is warranted. We view their value proposition as weaker than peers.

Morgans has a price target of $25 on Domino’s shares compared with $15.63 currently.

The post Which 3 ASX fast food operators are going cheap at current levels according to Morgans? 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 positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Collins Foods and 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.

The fund managers in charge of the listed investment company (LIC) WAM Capital Ltd (ASX: WAM) are excited about the potential returns of certain ASX shares.

Smaller ASX shares may have more growth potential than larger companies because they are earlier on in their growth journeys.

WAM Capital aims to find the most compelling undervalued growth opportunities in the Australian market. Let’s look at two of them that were recently highlighted.

Artrya Ltd (ASX: AYA)

The fund manager described Artrya as a medical technology company that uses artificial intelligence (AI) to help detect coronary artery disease using non-invasive scans in emergency and primary care settings.

WAM noted that the Artrya share price increased in April after the release of the FY26 third-quarter results.

The investment team said the result highlighted a key milestone: the company has entered a revenue-generating phase with its foundation customer, Tanner Health, and is commencing patient scanning using Artrya’s platform.

Multiple major US partners, including Northeast Georgia Health and Cone Health, continued onboarding and are expected to commence scanning by early FY27, according to WAM, supporting a pathway to multi-site revenue growth.

The ASX share also progressed its Salix Coronary Flow module, an AI tool that assesses coronary blood flow from CT scans, towards US Food and Drug Administration (FDA) submission for regulatory approval, targeting rollout in the first half of FY27.

The fund manager concluded its thoughts on the business with the following:

We believe the share price performance demonstrates increasing confidence in execution, with scan volumes and revenue conversion being key near-term milestones.

FINEOS Corporation Holdings PLC (ASX: FCL)

The other ASX share WAM highlighted from the WAM Capital portfolio is FINEOS, which develops software used by global health insurers to manage core functions such as policy administration, claims handling, and customer billing.

The fund manager noted that the FINEOS share price rose during the month after a solid quarterly update that supported confidence in improving cash generation and contract momentum.

FINEOS reported free cash flow of €11.1 million and a closing cash balance of €47.1 million (up €19.3 million on the prior quarter), highlighting continued progress towards its FY26 profitability and cash targets.

WAM said that new contract wins, including a North American client and the Motor Accidents Insurance Board of Tasmania, also demonstrated continued demand for the platform.

Guidance was reaffirmed for FY26 revenue of €147 million to €152 million.

The fund manager concluded:            

We believe the April share price strength reflects growing confidence in the company’s ability to increase cash generation, and translate contract wins into sustainable earnings.

The post 2 exciting ASX shares to buy with big growth potential! 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 FINEOS Corporation. The Motley Fool Australia has positions in and has recommended FINEOS Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.