Category: Stock Market

The Aristocrat Leisure Ltd (ASX: ALL) share price is in focus after the company reported its half-year FY26 result, including a 16% surge in NPATA and 19% growth in EPSA.

What did Aristocrat Leisure report?

• Total segment revenue of $3.03 billion, up 6.4% in constant currency
• NPATA rose 16% to $794 million
• EBITDA grew to $1.32 billion, up 13.1%
• EPSA (fully diluted) increased 19% to 129.0 cents
• Interim unfranked dividend of 50 cents per share (up 13.6%)
• Roughly $1 billion returned to shareholders through dividends and buy-backs

What else do investors need to know?

Aristocrat saw standout growth in its core Gaming and Social Casino (Product Madness) segments, with both market share and recurring revenue on the rise. The Gaming business grew installed machine share to 43% in North America and nearly doubled ANZ unit sales, contributing to record profitability.

The Interactive segment delivered strong iLottery and content revenue, further diversifying growth avenues. The group remains focused on disciplined capital management while investing in design, development, and expanding AI capability across its businesses.

What’s next for Aristocrat Leisure?

Looking ahead, management expects FY26 NPATA growth, supported by continued momentum in Gaming and Interactive, and accelerating content expansion. Aristocrat is targeting 4,000–5,000 net new gaming units this year and remains on track towards its US$1 billion FY29 Interactive revenue target.

Further investment in design, development, and AI is planned to drive efficiencies and sustain Aristocrat’s position as a market leader, alongside an ongoing focus on shareholder returns.

Aristocrat Leisure share price snapshot

Over the past 12 months, Aristocrat Leisure’ shares have declined 33%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Aristocrat Leisure posts double-digit profit and dividend growth in HY26 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.

The exchange-traded fund (ETF) Betashares Nasdaq 100 ETF (ASX: NDQ) has delivered great returns over the long-term. But, investors may be questioning whether it’s actually worth investing in at this level.

One of the best pieces of investment advice that helps investors outperform the market, in the long-term, is “be fearful when others are greedy and greedy when others are fearful”.

As the above chart shows, the NDQ ETF reached an all-time high this week. It certainly doesn’t seem as though investors are fearful about the companies within the NDQ ETF portfolio right now.

Yes, I’d much rather invest when the unit price was below $50 – significantly below where it is today – but we don’t know if or when the unit price will get back to that level.

The question is – is it worth investing in today at this high valuation? I think investors should remember one key factor.

Great businesses continue growing earnings

The NDQ ETF is invested in 100 of the largest non-financial businesses in the US.

The biggest positions in the portfolio include Nvidia, Alphabet, Apple, Microsoft, Amazon¸ Tesla and Micron Technology.

These businesses have collectively soared over the last few years, largely because they have grown their earnings as a group. The NDQ ETF has justified capital growth because the underlying companies are driving impressive financial progress.

As the chart below shows, the fund’s unit price has increased by more than 100% in the past five years.

These businesses are regularly releasing new products and services, as well as implementing price rises on some products. New phones, devices, accessories, subscriptions – earnings have been driven by product developments and market share gains.

AI is one of the latest and biggest things the US tech giants are focused on. It’s not quite clear how they’re going to monetise AI to make a reasonable return on all of the expenditure on AI-related efforts.

If a company continues growing profit, it’s very likely to send the share price higher. The business can grow into a valuation.

Final thoughts on the NDQ ETF

So, while it’s true it’s not cheap at an all-time high, it’s also true that it has hit an all-time high numerous times over the last five years, as the chart below shows.

It has reached plenty of highs before and kept growing thanks to the quality of the businesses involved.

I think the same can continue over the long-term, so I’d be happy to invest in the NDQ ETF today, though I’d start with a small position following its 20% rise since the end of March, at the time of writing.

The post Why invest in Betashares Nasdaq 100 ETF (NDQ) at an all-time high? 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 Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Micron Technology, Microsoft, Nvidia, and Tesla. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Microsoft, and Nvidia. 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, the Australian share market is home to a large number of ASX dividend shares.

To narrow things down, let’s look at three high-yield options that brokers are tipping as buys this week. They are as follows:

Cedar Woods Properties Limited (ASX: CWP)

Bell Potter has named Cedar Woods as an ASX dividend share to buy.

Cedar Woods is one of Australia’s leading property companies. It owns a high-quality portfolio that is diversified by geography, price point, and product type. This leaves it well-positioned to benefit from Australia’s chronic housing shortage.

Bell Potter is positive on the company’s outlook. It is expecting Cedar Woods to be in a position to pay fully franked dividends per share of 38 cents in FY 2026 and then 41 cents in FY 2027. Based on its current share price of $7.20, this equates to 5.3% and 5.7% dividend yields, respectively.

The broker has a buy rating and $9.65 price target on its shares.

IPH Ltd (ASX: IPH)

Another ASX dividend share that is being tipped as a buy is IPH.

It is an intellectual property services company, providing patent and trademark services across multiple jurisdictions through a large number of brands.

IPH has a long history of paying attractive dividends to its shareholders thanks to its strong cash flow generation.

The team at Morgans is bullish and is expecting the company to pay fully franked dividends of 38 cents per share in FY 2026 and then 39 cents per share in FY 2027. Based on its current share price of $3.58, this equates to dividend yields of 10.6% and 10.9%, respectively.

Morgans has a buy rating and $5.39 price target on the company’s shares.

Premier Investments Ltd (ASX: PMV)

A third ASX dividend share that could be a buy according to analysts is Premier Investments.

It owns the popular Smiggle and Peter Alexander brands and holds a significant investment portfolio.

While trading conditions have been tough, Macquarie believes Premier Investments is positioned to continue paying attractive dividends to shareholders. This is largely due to the strength of the Peter Alexander brand.

Macquarie is expecting fully franked dividends of 95.2 cents per share in FY 2026 and then 97.4 cents per share in FY 2027. Based on its current share price of $12.01, this would mean generous dividend yields of 7.9% and 8.1%, respectively.

Macquarie has an outperform rating and $16.90 price target on its shares.

The post 3 ASX dividend shares to buy for 5% to 10% yields 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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended IPH Ltd and Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Light & Wonder Inc (ASX: LNW) is one of Australia’s largest consumer discretionary shares.

It is a leading global cross platform games company that operates three cohesive segments in the gaming sector.

It has been in focus this week after the company released quarterly results.

The company’s net income came in at US$52 million, down 37% on the first quarter the previous year.

Net income fell 37% to US$52 million, while diluted net income per share declined 30% to US$0.66.

Management attributed the decline largely to approximately US$50 million in legal reserve contingencies associated with legacy legal matters.

Light and Wonder shares have experienced some volatility since reporting, and ultimately are down 29% from the start of the year. 

Here is the latest guidance from Morgans following last week’s results. 

Softer than expected

Morgans said Light & Wonder delivered a softer than expected 1Q26 result missing Morgans and consensus on revenue and AEBITDA in what is seasonally the group’s weakest quarter. 

The North American Gaming operations installed base was the standout negative surprise – ex-Grover net installs of -420 units, driven by the earlier than anticipated Resorts World New York VLT to Class III conversion – compounded by weak international machine sales and ongoing SciPlay softness. Grover delivered a strong 660 sequential net adds on Indiana market entry, and AEBITDA margins expanded across every segment.

Buy rating retained 

Based on this guidance, Morgans has retained its buy recommendation, but lowered its 12-month target price to $168 (previously A$183) on Light and Wonder shares.

The market’s 8% sell-off reflects legitimate frustration, though at ~10x forward PER and an FY26-28F EPSA CAGR of 17%, we view the dislocation as an opportunity.

From yesterday’s closing price of $110.30, this indicates an upside potential of 52%. 

Other brokers weigh in

Light & Wonder shares are drawing attention from other brokers too. 

It seems sentiment around the market suggests Light & Wonder shares could now be significantly undervalued.

Following its results, both UBS and Macquarie updated their guidance on the gaming stock. 

Macquarie’s price target on the stock is $200, while UBS has a price target of $210 on Light & Wonder shares.

The broker said they were confident the company could deliver 5% to 9% EBITDA growth this year.

Elsewhere, Bell Potter have retained their buy rating on this gaming technology company’s shares with a reduced price target of $190.00. 

These estimates between $190 and $210 indicate upside potential of between 72% and 90%. 

The post Why do brokers believe Light & Wonder shares could rise between 72% and 90%? appeared first on The Motley Fool Australia.

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

ASX tech stock Megaport Ltd (ASX: MP1) has exploded higher over the past month, leaving many investors wondering whether the rally is only getting started.

The $2 billion share has surged more than 50% in just one month, dramatically outperforming the S&P/ASX All Technology Index (ASX: XTX), which has gained roughly 4% over the same period.

Despite the sharp rebound, Megaport shares are still down around 19% year to date at the time of writing, roughly in line with the broader ASX tech stock benchmark.

So, could Megaport still have room to double from here?

Powering global data flow

Megaport operates a global network-as-a-service platform that enables businesses to instantly connect to cloud providers, data centres, and internet infrastructure worldwide.

In simple terms, the ASX tech stock helps enterprises move and manage massive amounts of data quickly and securely without needing to build expensive physical infrastructure.

That positioning is becoming increasingly valuable as artificial intelligence, cloud computing, and digital infrastructure demand continue to accelerate globally.

Importantly, Megaport generates recurring revenue through long-term customer contracts, giving investors exposure to scalable software-like earnings growth.

AI demand continues driving growth

One major reason investors remain bullish on this ASX tech stock is its growing exposure to AI-driven infrastructure demand.

Megaport recently announced a major new compute and storage customer contract valued at approximately US$25.1 million, or around $35.4 million, over 36 months. The agreement adds approximately US$8.4 million, or A$11.8 million, in annualised recurring revenue (ARR).

That matters because recurring revenue growth is often a key driver of higher valuations for technology companies.

Management said its subsidiary Latitude.sh is ideally positioned as a critical infrastructure platform to continue capturing “unprecedented AI-driven demand for CPU, GPU and storage”. As global businesses invest heavily in artificial intelligence systems and high-performance computing, demand for scalable network infrastructure may continue rising rapidly.

Strong recurring revenue momentum

The ASX tech stock is also continuing to deliver impressive underlying growth metrics.

Megaport’s network ARR reached $272 million as at 31 March 2026, representing 23% year-over-year growth on a constant currency basis. Those are strong growth figures in a market where many technology companies are struggling to maintain momentum.

The company’s expanding customer base, growing enterprise demand, and increasing exposure to AI infrastructure are helping support investor optimism despite broader volatility across the technology sector.

Risks remain

Of course, risks still exist. Technology shares can remain highly volatile, particularly when valuations become stretched after sharp rallies. Megaport also faces intense competition in cloud infrastructure and connectivity markets.

Profitability and execution will remain key areas investors watch closely.

Still, analyst sentiment currently appears very positive. According to TradingView data, 12 of 15 brokers rate the ASX tech stock as either a buy or strong buy, while the remaining three have hold recommendations.

The average analyst price target currently sits at $15.32, implying roughly 55% upside from current levels. Meanwhile, the most bullish analyst valuation suggests the stock could climb as high as $24. That points to a potential upside of around 142%.

The post After a 50% surge, could this ASX tech stock still double? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

The iShares S&P 500 ETF (ASX: IVV) is a very popular option and it isn’t hard to see why.

It is one of the simplest ways for Australian investors to access the US share market.

Rather than trying to pick individual American stocks, this exchange traded fund (ETF) gives investors exposure to the S&P 500 index through a single trade.

Here are three reasons why it could be worth buying and holding for the long term.

IVV ETF provides exposure to world-class companies

The first reason to consider the fund is the quality of the businesses inside the fund.

The S&P 500 is home to many of the largest and most influential companies in the world. These are businesses with global brands, deep customer bases, strong balance sheets, and major positions in their industries.

Its holdings include names such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Berkshire Hathaway (NYSE: BRK.B).

This gives investors access to companies across technology, healthcare, financials, industrials, consumer goods, and more. It is not a bet on one sector or one theme. It is exposure to a broad group of companies that help drive the US economy.

For investors wanting simple global exposure, it remains one of the cleanest options on the ASX.

It has a strong long-term track record

Another reason to buy and hold the iShares S&P 500 ETF is the long-term performance of the market it tracks.

The S&P 500 index has delivered an average annual return of around 10% over the past century. That period has included wars, recessions, inflation shocks, market crashes, banking crises, and a global pandemic.

Despite all of that, the index has continued to rise over time.

This does not mean returns will be smooth. They never are. There will be periods when the IVV ETF falls sharply, sometimes for months or even years.

But the long-term lesson is clear. Investors who stay invested through difficult periods have historically been rewarded for their patience.

That makes the fund a strong option for those who want to benefit from long-term compounding without constantly trading in and out of the market.

It keeps investing simple

A third reason to like the IVV ETF is its simplicity.

Investing can quickly become complicated when trying to choose individual shares, time the market, or respond to every piece of economic news.

This ASX ETF removes a lot of that pressure. It gives investors diversified exposure to 500 large US companies in a single investment.

That can make it easier to stay consistent. Investors can add to the fund over time, reinvest distributions, and let the underlying companies do the work.

The low-cost structure also helps. Over long periods, keeping fees down can make a meaningful difference to total returns.

For investors who want a straightforward way to build wealth over time, the iShares S&P 500 ETF has plenty of appeal as a long-term holding.

The post 3 reasons to buy and hold the IVV ETF forever 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 positions in and has recommended Apple, Berkshire Hathaway, Microsoft, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Apple, Berkshire Hathaway, Microsoft, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Argo Investments Ltd (ASX: ARG) is a leading ASX dividend stalwart. It’s a listed investment company (LIC) that provides investors with exposure to ASX blue-chip shares.

Unlike many ASX-listed exchange-traded funds (ETFs) that listed in the last decade or two, Argo is very old and has a demonstrated track record of stability and longevity. It has been operating since 1946, making it one of the oldest companies on the ASX.

LICs are not a high-growth area, but they have unique benefits compared to ETFs and operating companies that makes Argo an appealing choice.

Solid passive dividend income

The business says it provides fully franked sustainable dividends. It has paid dividends every year since inception in 1946 and those payments have been fully franked since 1995.

That doesn’t mean the payout will necessarily be bigger every single year. But, since 2010, most financial years have seen a payout increase for shareholders.

In the FY26 half-year result, the business announced that it’s going to increase its interim dividend per share by 8.8% to 18.5 cents.

That means the last two dividends to be declared by the business come to 38.5 cents per share, translating into a grossed-up dividend yield of 6.2%, including franking credits, at the time of writing.

There are not many ASX dividend stalwarts that have a higher dividend yield than that.

Diversification

The business does not follow an index, so it gives investors a different exposure than the S&P/ASX 200 Index (ASX: XJO), but it does still invest in a variety of recognisable names.

Some of its biggest positions include BHP Group Ltd (ASX: BHP)), Macquarie Group Ltd (ASX: MQG), Commonwealth Bank of Australia (ASX: CBA), Rio Tinto Ltd (ASX: RIO), Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES) and Telstra Group Ltd (ASX: TLS).

I like that the risks are spread across a number of businesses, rather than just one. Plus, Argo can switch its portfolio to different investments if one stock goes wrong. This can be contrasted to a concentrated investment such as a bank (a bank is stuck as a bank!).

Great value

A business like Argo is backed by its significant portfolio value. We can price it largely to the underlying value of all of the shares it owns. It seems to be trading very cheaply.

The ASX dividend stalwart regularly tells investors about its underlying value, which is measured with the net tangible assets (NTA) figure.

On 8 May 2026, the business had a pre-tax NTA of $10.48. It’s currently trading at a 16% discount, at the time of writing, which is around the biggest discount it has traded within the last 30 years.

I think this is a good time to invest in the business for the long-term.

The post An ASX dividend stalwart every Australian should consider buying appeared first on The Motley Fool Australia.

More reading

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

If you didn’t get a chance to watch the budget last night, chances are you will have seen, read or heard about it by now. The budget is one of the most important nights on the political and economic calendar. The government outlines the state of our nation’s finances for the coming fiscal year, and it is normally where major policy changes are announced when an election is not around the corner. Today, we’re going to focus on the changes to capital gains tax (CGT) that were just unveiled.

If you’ve been investing in ASX shares for any length of time, or any houses for that matter, you may already be familiar with capital gains tax. In fact, this tax in particular is one of the most impactful for investors. CGT is a bit of a strange tax. It is not technically a tax in its own right, like the goods and services tax (GST) or tobacco excise is. Rather, it is an extension of income tax, specifically designed to cover assets that are bought and sold for a profit, or capital gain.

Inflation and discounts

Between its introduction in 1985 and 1999, CGT worked by adding any profit an investor made on an investable asset purchased after 1985 (investment property, shares, a business, gold bullion, art, etc.) to an individual’s taxable income in the year that it was sold. Before 1985, capital gains were not taxed, believe it or not. Until last night (more on that in a moment), any asset bought before 1985 could still have been sold and the profit pocketed tax-free.

To illustrate, if one bought an investment property for $100,000 back in 1984, and sold it for $200,000 in 1996, then that person could just keep the whole $200,000, no questions asked. However, if they bought that $100,000 property in 1986 and sold it in 1996, a $100,000 profit would be added to their taxable income in 1996.

To account for the corrosive effects of inflation, investors were allowed to deduct any profits that could be attributed to inflation rather than asset growth before getting the bill from the taxman.

That all changed in 1999. The Howard government threw out this inflation indexation and replaced it with the 50% CGT discount. This meant that, rather than deducting inflation from an asset’s capital gain, investors could simply get a 50% discount on the tax owed from an asset sale. That’s if they had owned that asset for 12 months or longer. If that property owner we mentioned earlier had waited another five years before selling their property for $200,000, they would only need to declare a capital gain of $50,000, rather than $100,000, minus the gains attributed to inflation.

This 50% discount model for CGT has been in place ever since.

But last night, Treasurer Jim Chalmers announced that we will soon be going back to the future.

What do the CGT changes mean for ASX investors?

One of the announcements in last night’s budget was the return of the inflation indexation model. From 1 July 2027, capital gains will have to be indexed to inflation once more, with the 50% discount set to go the way of the dodo. In a double hit for property investors, negative gearing has also been abolished for new purchases of existing properties from today. But that’s an issue for another time.

For now, any assets sold, ASX shares or otherwise, can continue to use the 50% discount model. But from 1 July next year, all asset owners will need to move to the inflation indexation model. That includes assets owned prior to 1985, marking the end of a very old grandfathering period. Capital losses will still be able to be carried and used to offset gains, though.

Tax changes will vary from case to case, of course. But there is a high likelihood that the changes will result in the average stock market investor paying more tax when selling a profitable investment than under the prior system.

Keep an eye out for more budget coverage from us this week, including how other changes announced last night will affect ASX investors and shares.

The post How will the new capital gains tax affect ASX shares? 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.

ASX 200 stock Dyno Nobel (ASX: DNL) has been under the microscope this week. 

Dyno Nobel is a leading global manufacturer of explosives, as well as a producer of fertilisers and industrial chemicals. It’s estimated the company’s share of the international commercial explosives market is around 15%.

The company rocketed 10% on Monday following the release of its half-year results. 

What did the company report?

As Laura Stewart reported on Monday, Dyno Nobel reaffirmed its full-year earnings guidance. 

This reinforced strong underlying growth in its global explosives business and a sharp lift in first-half earnings.

The company also reported: 

• Statutory net profit after tax (NPAT): $20 million (1H25: $7 million)
• NPAT excluding individually material items (IMIs): $161 million, up 83% (1H25: $88 million)
• EBIT excluding IMIs: $243 million, up 39% (1H25: $174 million)
• EBITDA excluding IMIs: $378 million, up 17% (1H25: $323 million)
• Interim dividend: 4.6 cents per share (unfranked), 50% payout ratio. 

Commenting on the results, CEO and Managing Director Mauro Neves said:

1H26 marks the beginning of a new era for Dyno Nobel as we concluded our separation from the Fertilisers business and move forward as a pureplay global explosives leader. We continued the successful execution of our transformation program, and our explosives business delivered robust underlying earnings growth, driven by the strong operating performance of our privileged assets.

What did Morgans have to say?

Following the result, the team at Morgans said the 1H26 result from this ASX stock was materially stronger than expected. 

After a stronger than expected 1H26, DNL would have upgraded its FY26 Explosives guidance had it not been for a stronger AUD, cost headwinds given the conflict in the Middle East and stranded costs post the sale of Phosphate Hill. 

We have made material revisions to our FY26 forecasts reflecting the sale of Phosphate Hill for a poor price. Moving forward, DNL is now a pure play explosives company. We have made modest upgrades to FY27/28. 

Limited upside for this ASX 200 stock

Following Monday’s 10% gain, it appears this ASX 200 stock is now hovering close to fair value. 

Following the results, Morgans maintained a hold rating, along with a new price target of $3.46.

From yesterday’s closing price of $3.53, this indicates the ASX 200 stock is roughly 2% above fair value. 

Elsewhere, 10 analysts forecasts via TradingView have a maximum estimate of $4.00 per share, and a minimum of $3.30. 

The post Is this ASX 200 stock a buy, hold or sell after impressive earnings results? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 2026 federal budget has landed at a difficult time for the Australian economy.

The conflict in the Middle East has disrupted global oil supplies, pushed fuel prices higher, and added to inflation pressure. 

Treasury expects inflation to reach 5% through the year to the June quarter 2026, while economic growth is forecast to slow to 1.75% in 2026–27.

Against that backdrop, the latest budget is trying to do a few things at once: provide cost-of-living relief, respond to the oil shock, make the tax system fairer, and keep the budget on a more sustainable path.

Here are three key takeaways from the announcement.

Workers are getting tax relief

The first major takeaway is that workers are at the centre of the budget.

The government has announced a new $250 Working Australians Tax Offset for more than 13 million workers, starting in the 2027–28 income year. It is also introducing a $1,000 instant tax deduction from 2026–27, allowing workers to claim the deduction without keeping receipts.

According to the ABC, Treasurer Jim Chalmers described the worker tax offset as the biggest cost-of-living measure in the budget. The report also highlighted that the government is funding these changes partly through reforms to negative gearing, the capital gains tax discount, and discretionary trusts.

For households, this is the most obvious near-term support.

It will not solve every cost-of-living problem, especially with fuel prices still elevated. But it does put more money back into workers’ pockets at a time when inflation is rising again.

The bigger political point is that the government is presenting this as a tax system reset, not just a one-off handout.

The oil shock is driving a lot of the budget

The second takeaway is how much of this budget is shaped by fuel.

The government says the Middle East conflict has created the largest global oil supply disruption on record, which is flowing through to petrol, diesel, fertiliser, plastics, and other supply chains.

That explains several of the budget’s biggest measures.

The government has announced a $14.8 billion package to strengthen Australia’s fuel resilience, including a $7.5 billion Fuel and Fertiliser Security Facility and a $3.2 billion Australian Fuel Security Reserve. It says more than one billion extra litres of petrol and diesel have already been secured for March to June.

There is also direct relief for motorists. The budget includes $2.9 billion to more than halve the fuel excise and reduce the heavy vehicle road user charge to zero for three months. Petrol and diesel excise has fallen from 52.6 cents per litre to 20.6 cents per litre for three months.

I think this is one of the clearest signs that the budget is responding to immediate pressure rather than simply setting long-term policy.

Fuel costs affect households directly at the pumps, but they also feed into transport, food, manufacturing, and retail prices. So, trying to soften that hit makes sense.

Housing, productivity, and budget repair are still big themes

The third takeaway is that the budget is also looking beyond the current shock.

Housing is a major focus. The government is reforming negative gearing and capital gains tax concessions, which it says will help support an additional 75,000 homeowners over the decade. It is also putting $2 billion into local infrastructure to support up to 65,000 new homes.

Productivity is another big theme. The budget includes measures to reduce regulatory burden by $10.2 billion a year, build a Single National Market, make the $20,000 instant asset write-off permanent, and support more research and development.

On the fiscal side, the budget remains in deficit, but the government says the position is stronger than at the mid-year update. The underlying cash deficit is forecast at $31.5 billion in 2026–27, with gross debt expected to peak lower than previously forecast.

Foolish takeaway

This federal budget is being shaped by a difficult mix of higher inflation, weaker growth, and global uncertainty.

The main message is clear enough: workers get tax relief, fuel security becomes a national priority, and the government is trying to make housing and productivity central to the next phase of reform.

There will be debate about whether the tax changes go too far, whether the cost-of-living relief is enough, and whether the budget can genuinely improve productivity.

But the 2026 federal budget is not a quiet one. I think it is a reform-heavy budget built around a more volatile world.

The post 3 key takeaways from the 2026 federal budget appeared first on The Motley Fool Australia.

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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 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.