Category: Stock Market

JB Hi-Fi Ltd (ASX: JBH) shares have faced headwinds in recent times, but the underlying business continues to demonstrate its resilience.

Indeed, the whole retail sector has had a rough time of late.  

Cost of living pressures have weighed on consumer confidence, competition has intensified, and supply chain disruptions have pushed up component costs across the electronics sector.

Yet through all of it, JB Hi-Fi has continued to grow.

The numbers back it up

JB Hi-Fi delivered a strong first half of FY2026, reporting a 7.3% increase in sales to $6.1 billion, an 8.1% rise in operating profit to $454 million, and a 7.1% lift in earnings per share to $2.80.

The company also raised its interim dividend by 23.5% to $2.10 per share, fully franked.

Revenue for the last twelve months now stands at approximately $10.97 billion, up 8.6% year-on-year. 

Strong demand for technology and consumer electronics drover sales up 6.3%, with mobile phones performing particularly well and online sales climbing 11.2%. 

The New Zealand segment delivered standout growth, with sales rising 32.6% and EBIT more than doubling.

Q3 FY2026 keeps the momentum going

The most recent quarterly update confirmed that JB Hi-Fi Australia sales grew 4.0% in the third quarter of FY2026, with New Zealand sales surging another 23.2%. 

The Good Guys also delivered continued sales momentum, adding to the group’s overall performance. 

Management did flag some near-term headwinds, including supplier component cost increases and stock availability shortages driven by global AI-related demand for chips and memory. 

But these are industry-wide challenges, and JB Hi-Fi’s scale and supplier relationships put it in a stronger position than most to navigate them.

Brokers are taking notice

UBS upgraded JB Hi-Fi to a buy rating after the first half result, noting that the stock deserves to trade on a higher earnings multiple than it has historically attracted. 

The broker drew comparisons to Wesfarmers Ltd (ASX: WES) and its Bunnings and Kmart divisions, suggesting JB Hi-Fi’s consistent execution may warrant a similar re-rating. 

The average analyst price target for JB Hi-Fi currently sits at around $103, implying meaningful upside from current levels.

Foolish Takeaway

JB Hi-Fi is not a flashy growth stock. 

The company is instead a well-run, disciplined retailer with a strong brand, a loyal customer base, and a management team that consistently delivers. 

The share price has pulled back over the past twelve months, which has created a more attractive entry point for long-term investors.

For Fools willing to look through the near-term noise, the opportunity here looks interesting.

The post Why JB Hi-Fi shares can turn things around despite a tough retail environment appeared first on The Motley Fool Australia.

More reading

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• How much do I need to invest in ASX shares for $500 a month of passive income?
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• 2 big-name ASX 200 shares at 52-week lows that I’d buy and hold

Motley Fool contributor Mark Verhoeven 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 Wesfarmers. 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.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and recorded another decline. The benchmark index fell 0.35% to 8,670.7 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 to edge lower

The Australian share market looks set to fall again on Wednesday following a relatively poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% lower. In the United States, the Dow Jones rose 0.1%, but the S&P 500 fell 0.15% and the Nasdaq dropped 0.7%.

Oil prices storm higher

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices stormed higher overnight. According to Bloomberg, the WTI crude oil price is up 4.4% to US$102.38 a barrel and the Brent crude oil price is up 3.45% to US$107.82 a barrel. Traders were buying oil after US-Iran peace deal hopes faded.

Aristocrat Leisure results

Aristocrat Leisure Ltd (ASX: ALL) shares will be on watch on Wednesday when the gaming technology company releases its half-year results. According to a note out of UBS, its analysts are expecting Aristocrat to report double-digit growth, with EBITA of $1.12 billion and a net profit of $798 million.

Gold price slips

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Wednesday after the gold price slipped overnight. According to CNBC, the gold futures price is down 0.2% to US$4,719.9 an ounce. Rising oil prices have created interest rate uncertainty in the US, which is weighing on the precious metal.

Buy Life360 shares

Bell Potter thinks investors should be buying Life360 Inc. (ASX: 360) shares following the release of its first-quarter update. In response to the update, the broker has retained its buy rating on the family safety and location technology company’s shares with a trimmed price target of $32.59 (from $35.50). It said: “1Q2026 revenue and adjusted EBITDA of US$143.1m and US$17.1m were 4% and 18% ahead of our forecasts and 4% and 14% ahead of VA consensus. The key positive of the result was the strong paying circle growth of 201k q-o-q which was more than double our forecast of 99k and well ahead of VA consensus of 109k. The key negative was the MAU growth of only 2.0m q-o-q which was well below our forecast of 2.6m and further below VA consensus of 3.1m.”

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wesfarmers Ltd (ASX: WES) shares have fallen a long way from their highs.

On Tuesday, the ASX 200 blue chip hit a 52-week low of $70.87 before closing at $71.30.

That means Wesfarmers shares are now down around 25% from their 52-week high of $95.18.

For a business of this quality, I think that is worth paying attention to.

A lower price for a high-quality business

Wesfarmers is rarely a share that looks obviously cheap.

The market usually places a premium valuation on the company because it owns some of Australia’s strongest retail brands and has a long history of disciplined capital management.

According to CommSec, consensus estimates point to earnings per share of $2.55 in FY26 and $2.74 in FY27. Based on the latest share price, that means Wesfarmers is trading on around 26 times estimated FY27 earnings.

That is still a premium to the broader market.

But I do not think all businesses should be valued the same way. In my view, Wesfarmers deserves a higher multiple because of the quality of its assets, balance sheet strength, and long-term growth options.

Why I like Wesfarmers shares

The main attraction is the strength of the group’s brands.

Bunnings remains one of the best retail businesses in Australia. It has a powerful position in home improvement, strong customer loyalty, and a store network that would be very hard for competitors to replicate.

Even in an uncertain economic environment, I think Bunnings has qualities that can help it remain resilient. Australians still need to repair, maintain, and improve their homes. The timing of larger projects can move around, but the underlying demand does not disappear.

Kmart is another reason I like Wesfarmers.

Its value-focused offer can be very relevant when households are under pressure. As cost-of-living pressures remain front of mind, I think retailers that can deliver value without damaging the customer experience may be well placed.

That gives Wesfarmers a useful mix. It owns businesses that can benefit in stronger periods, while also having brands that remain relevant when consumers are watching every dollar.

More than just retail

Wesfarmers is best known for Bunnings and Kmart, but I think investors should look beyond the retail story.

The company also has exposure to lithium through its Mt Holland project. This gives Wesfarmers a long-term option in a commodity that could benefit from electric vehicles, batteries, and energy storage.

Lithium prices can be volatile, and I would not make that the only reason to buy the stock. But I like that Wesfarmers has an additional growth lever outside its core retail businesses.

The group also has a strong balance sheet, which I think is a major advantage.

A strong balance sheet gives management flexibility. It can invest through downturns, support growth projects, make acquisitions if attractive opportunities appear, and keep returning capital to shareholders when appropriate.

That matters even more when economic conditions are uncertain.

The dividend adds to the appeal

Wesfarmers is also expected to continue paying fully franked dividends.

According to CommSec, consensus estimates are for dividends per share of $2.16 in FY26 and $2.33 in FY27.

Based on the latest share price, that FY27 forecast dividend implies a yield of around 3.3%, fully franked.

That is not the highest yield on the ASX, but I think it is attractive when combined with the company’s quality and long-term growth potential.

Foolish takeaway

Wesfarmers shares are still not cheap in the traditional sense.

But after a 25% fall from their 52-week high, I think the valuation is starting to look much more reasonable for a business of this calibre.

The group has strong brands, a value-focused retail engine, lithium exposure, a solid balance sheet, and fully franked dividends.

For investors looking for a high-quality ASX 200 share to buy and hold, I think Wesfarmers could be a bargain buy at current levels.

The post Why I think Wesfarmers shares could be a bargain buy appeared first on The Motley Fool Australia.

More reading

• Why JB Hi-Fi shares can turn things around despite a tough retail environment
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• How much do I need to invest in ASX shares for $500 a month of passive income?
• 3 ASX ETFs that could be top picks for beginners
• 2 big-name ASX 200 shares at 52-week lows that I’d buy and hold

Motley Fool contributor Grace Alvino has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. 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.

Shares in WiseTech Global Ltd (ASX: WTC) fell 6% on Tuesday to $39.80, yet they’re still up around 9% over the past month.

Zoom out a little further and the picture looks far more dramatic. The ASX tech stock is down 43% year to date and has slumped 59% over the past 12 months, now drifting back toward the lows last seen in March.

So what’s driving this volatile “yo-yo” share price action?

A sticky, high-value software platform

WiseTech is best known for its flagship product CargoWise, a logistics software platform used across the global supply chain industry.

Its customers include freight forwarders, customs brokers, logistics providers, and companies managing complex cross-border trade.

This is not lightweight software. CargoWise is deeply embedded into mission-critical workflows such as freight forwarding, customs compliance, routing, documentation, and global trade processing.

Once integrated, systems like this are notoriously difficult and expensive to replace, which creates strong customer retention and recurring revenue visibility.

A huge global opportunity

Despite the recent price weakness of WiseTech shares, the company continues to point to a large long-term opportunity.

At its latest Macquarie Australia Conference presentation, the company said CargoWise is targeting an $11 trillion-plus global logistics market. It also highlighted expansion opportunities beyond core freight software, including TradeWise, trade finance, customs and border systems, and digital identity verification.

On paper, the long-term demand story remains intact.

Guidance still intact, margins still strong

Importantly, WiseTech has maintained its FY26 guidance. The company expects revenue of US$1.39 billion to US$1.44 billion and EBITDA of US$550 million to US$585 million, implying a healthy EBITDA margin of around 40% to 41%.

That kind of margin profile is rare in enterprise software and helps explain why WiseTech shares have historically commanded a premium valuation.

WiseTech is also leaning heavily into artificial intelligence, with management aiming to improve productivity, reduce labour intensity and enhance platform capabilities for customers.

Why the market is uneasy

Despite the strong fundamentals, investors have been cautious. Concerns include valuation compression, acquisition strategy risk, global trade uncertainty and potential disruption from AI-driven competition.

There have also been ongoing board-related concerns that have weighed on sentiment and added volatility to the share price.

Geopolitical tensions have not helped either. Issues such as the US–Iran conflict and disruptions around the Strait of Hormuz have added uncertainty to global shipping routes and trade flows.

However, these are cyclical pressures rather than structural breaks in demand.

Foolish Takeaway

At around $40, WiseTech shares are still well below previous highs near $121, which changes the risk-reward equation significantly.

While it is far from risk-free, the combination of recurring revenue, global scale, and embedded customer relationships remains compelling.

Once global trade conditions stabilise and sentiment shifts away from near-term noise, WiseTech could re-rate quickly.

For now, the share price volatility reflects uncertainty, not necessarily a broken business.

The post What on earth’s going on with WiseTech shares? appeared first on The Motley Fool Australia.

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

ResMed Inc. (ASX: RMD) shares have fallen sharply.

On Tuesday, the medical device company’s shares hit a 52-week low of $27.25 before closing at $27.66.

That leaves ResMed shares down around 39% from their 52-week high.

For a global healthcare business that is still growing, profitable, and exposed to a very large long-term market, I think that kind of pullback is worth a closer look.

A much cheaper valuation

The first thing that stands out to me is the valuation.

According to CommSec, consensus estimates are for ResMed to generate earnings per share of $1.56 in FY26, $1.69 in FY27, and $1.83 in FY28.

Based on Tuesday’s closing price, that means ResMed shares are trading on around 16 times estimated FY27 earnings.

I think that looks too cheap for a business of this quality.

This is not a company struggling to grow. ResMed’s latest quarterly update showed revenue up 11% to US$1.43 billion, with non-GAAP diluted earnings per share up 21% to US$2.86. It also reported a non-GAAP gross margin of 62.8%, up 290 basis points on the prior corresponding period.

I do not think investors need to buy the stock because of one quarter. But I do think those numbers show the business is still performing well, despite what the share price performance might be suggesting.

The market opportunity is enormous

The bigger reason I like ResMed is the long-term opportunity.

Sleep apnoea remains a large and underpenetrated market. ResMed has previously pointed to more than 1 billion people with sleep apnoea globally, with less than 20% of obstructive sleep apnoea patients diagnosed or treated in the US and less than 10% in the rest of the world.

That is a huge gap.

If more people are diagnosed and treated over time, ResMed should have a long runway for growth across devices, masks, software, and connected health tools.

I also think the GLP-1 concern may be more complicated than the market sometimes assumes.

Weight loss drugs could reduce sleep apnoea severity for some patients. But ResMed’s real-world data analysis suggests patients with an obstructive sleep apnoea diagnosis who were prescribed GLP-1 drugs were more likely to start PAP therapy and had higher PAP resupply rates.

In other words, greater attention on obesity and metabolic health may actually help bring more patients into the sleep health system.

What about the Noctrix acquisition?

One issue the market appears to be weighing up is ResMed’s proposed acquisition of Noctrix.

I can understand the concern.

When a company with a strong core business buys into an adjacent area, investors sometimes worry that management is trying to offset slowing growth elsewhere.

But I do not see this as a sign that ResMed is plugging a hole in a sinking ship.

The Noctrix acquisition looks complementary to me.

Noctrix has an FDA De Novo classified device for refractory moderate-to-severe restless leg syndrome. ResMed says restless leg syndrome affects around 7% of adults globally and overlaps with obstructive sleep apnoea. The company also describes it as the next step in its focus on sleep health and adjacent total addressable market areas with unmet needs.

That makes sense to me.

ResMed is already a leader in sleep and breathing health. Expanding into a related sleep disorder seems like a logical extension of its existing strategy, especially if it can use its scale, clinical relationships, and digital health capabilities to support adoption.

Should you buy ResMed shares?

For me, the answer is yes, provided the investor is taking a long-term view.

ResMed shares may remain volatile. The market could stay focused on GLP-1 drugs, valuation questions, competition, or whether the Noctrix deal delivers the expected benefits.

But I think the current share price is offering a rare opportunity.

At only 16 times estimated FY27 earnings, investors are getting a high-quality healthcare business with strong margins, a net cash balance sheet, and a very large underpenetrated market.

The post Should you buy ResMed shares at their 52-week low? 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 positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Serious money continues to flow into three of the ASX’s most popular exchange-traded funds (ETFs), with Vanguard Australian Shares Index ETF (ASX: VAS), Vanguard MSCI International Shares ETF (ASX: VGS) and iShares S&P 500 ETF (ASX: IVV) now collectively managing close to $50 billion in funds under management.

These three ASX ETFs form the backbone of countless long-term portfolios, offering broad exposure to Australia, global markets and the world’s largest economy.

But after strong gains and shifting global conditions, investors may be asking whether they still deserve a place in a modern portfolio.

Aussie classic

The Vanguard Australian Shares Index ETF remains the core domestic building block for many investors, tracking the performance of the ASX’s largest companies.

The ASX ETF has delivered around 5% over the past 12 months, reflecting steady but modest growth compared to global markets.

Two of its largest holdings include Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP), giving investors exposure to both financials and resources.

The strength of VAS lies in its diversification across Australia’s leading companies and its consistent dividend income stream. However, risks remain, particularly its heavy concentration in banks and resources, which can make returns heavily dependent on domestic economic conditions and commodity cycles.

US tech heavy ETF

The iShares S&P 500 ETF has been one of the strongest performers among the trio, rising around 15% over the past 12 months.

This ASX ETF gives investors exposure to 500 of the largest US companies and has been driven by strong earnings growth in American technology and consumer sectors.

Two of its biggest holdings include Apple Inc. (NASDAQ: AAPL) and Microsoft Corporation (NASDAQ: MSFT), both of which have been key beneficiaries of artificial intelligence and cloud computing trends.

The strength of IVV lies in its exposure to global innovation leaders and long-term US economic growth. However, risks include currency fluctuations for Australian investors and a heavy concentration in US mega-cap technology stocks, which can increase volatility if sentiment shifts.

True global reach

The Vanguard MSCI International Shares ETF provides broad global diversification outside Australia and has returned around 12% over the past year.

This ASX ETF invests across developed markets, reducing reliance on the Australian economy and offering exposure to a wide range of industries and geographies.

Two of its largest holdings include Apple and NVIDIA Corporation (NASDAQ: NVDA), giving investors exposure to both established tech leaders and high-growth semiconductor demand.

VGS is often viewed as a long-term portfolio stabiliser due to its global reach. However, it still carries risks linked to international market cycles, geopolitical uncertainty and currency movements, all of which can impact returns for Australian investors.

Foolish takeaway

Despite strong recent performance across all three funds, these ASX ETFs continue to play distinct and complementary roles in long-term portfolios. VAS offers domestic stability and dividends, IVV provides high-growth US exposure, and VGS delivers global diversification.

For many investors, the combination remains a powerful foundation for building wealth over time. But understanding each ETF’s risks and exposures is essential in deciding whether they still deserve a place in your portfolio today.

The post Are these ASX ETF giants still worth buying today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Apple, BHP Group, Microsoft, Nvidia, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Plenty of ASX shares are receiving updated guidance from experts as companies release quarterly results and announcements. 

Three ASX shares have just been given fresh buy recommendations from the team at Morgans. 

Here’s what the broker had to say. 

HMC Capital (ASX: HMC)

HMC is an ASX-listed property company focusing on ownership, development, and management of real estate assets.

The company released a business update last week.

Following this update, the team at Morgans slapped a fresh buy rating on this ASX stock, suggesting it can rebound from the 27% fall year to date. 

The broker said HMC’s 3QFY26 update outlined a strategic shift to a more focused and simpler business model – concentrating on: 

• Growing FUM across existing verticals (health, energy, digital and real estate)
• Delivering returns across the various co-investments (distributions and fair value gains)

With FUM continuing to grow across real estate and private credit and an expectation HCW distributions may recommence in c.FY27, the c.40cps of NPBT in FY27 looks baseline and leaves the business trading on a modest 10x PER, while the current share price is underpinned by a mark-to-market NTA of c.$2.10/sh or c.$2.69/sh when adopting our target prices for the underlying listed funds.

On this basis, the broker retained its buy recommendation with a $4.05 target price.

At the current price of $2.94, this indicates an upside potential of 38%. 

Magellan Financial Group (ASX: MFG)

Magellan is an Australian-based funds manager investing in global equities and global listed infrastructure.

It released an update on May 5th and announced the transfer of management of its Global Equities funds (MGOC and the Hedged Fund, ~A$5.3bn AUM) to Vinva Investment Management, a Sydney-based systematic equity manager with A$47bn+ AUM in which MFG already holds a 28% stake. 

Morgans has maintained its buy recommendation, but has acknowledged that in terms of financial impact, it estimates a revenue reduction of approximately A$29m in year one, partially offset by management’s flagged cost savings of ~A$7m.

While changes are clearly needed to revive MFG’s stalled funds management franchise, this update is a reminder that the path forward may involve some short-term pain.

The broker’s updated price target of $11.19 (previously $11.99) still implies a 30% upside from current levels. 

Orica (ASX: ORI)

Orica is a leading global manufacturer and supplier of explosives and blasting systems, primarily to the mining industry.

It released its half-year results last week.

ORI’s 1H26 result beat consensus estimates across all business units. Cashflow was much stronger than feared and the balance sheet is in strong shape. Consequently, the Board rewarded shareholders with a step-up in the dividend. The outlook remains positive and further growth is targeted in FY26 and over the medium term. 

Our forecasts remain largely unchanged. With leverage to attractive industry fundamentals, market leading positions, solid earnings growth, proven management team and strong balance sheet, we reiterate our BUY rating with a new price target of A$26.60.

From its current share price of $22.13, this price target indicates an upside potential of 20%. 

The post Three ASX shares with fresh buy recommendations to target this week 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 HMC Capital. The Motley Fool Australia has recommended HMC Capital. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX industrials stock SKS Technologies Group (ASX: SKS) has been in focus this year after racing ahead of the market. 

Since the start of 2026, it has risen 110%. 

SKS Technologies engages in the development and distribution of technology products. It provides audiovisual products & solutions and electrical and communications cabling for the commercial, retail, health, defense and education market.

In the last 12 months, it has exploded more than 400%. 

After such a rapid rise, prospective investors are likely questioning if it’s too late to jump on board this runaway train. 

Last week, the company released key announcements regarding new contracts.

What did this ASX industrials stock announce?

SKS Technologies has received written confirmation from Buildcorp Group Pty Ltd for the award of a contract to supply and install a fully integrated electrical technology solution for a major retailing group for its new headquarters in Melbourne’s Docklands precinct. 

The project is valued at approximately $22 million. 

SKS Technologies Chief Executive Officer, Matthew Jinks, said:

The awarding of this project reflects our reputation and position in the market for quality and capability, reinforcing our business as a trusted partner for complex, large-scale commercial developments. It also further strengthens market confidence in our team’s ability to execute critical infrastructure with precision, safety and efficiency.

The project is due for completion in 1Q28.

This catapulted the share price to a new record high last week, and prompted updated guidance from the team at Morgans. 

Here’s what the broker had to say. 

$1.2bn pipeline sparks further confidence 

Morgans said SKS’s $22m contract win for the new Coles head office sees the group work in hand expand to $355m ($270m for FY27), with SKS’s Tenders pipeline exceeding $1.2bn (of which >$1bn relates to prospective data centre projects). 

SKS’s share price momentum increasingly reflects confidence in the group’s strong FY27 outlook, and ability to win a greater share of its healthy pipeline of prospective data centres. We lift our PBT forecasts by ~12-15% in FY27-28F, reflecting our expectations for further conversion of SKS’s share of this pipeline over the year ahead.

Based on this guidance, Morgans retained its accumulate rating, with a revised price target of $8.95.

While this optimism is reassuring for holders of the stock, those on the outside looking in have likely missed the majority of growth.  

From yesterday’s closing price of $8.32, this updated price target indicates a modest upside of 7% for this ASX industrials stock.

The post This ASX industrials stock has doubled in 2026 – is there any more upside according to Morgans? 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 recommended Sks Technologies Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The team at Morgans have adjusted their outlook on these ASX shares following key updates over the last week. 

Despite the downgrade, Credit Group (ASX: CCP) and Amcor Plc (ASX: AMC) still have buy recommendations from the broker. 

These ASX shares have fallen significantly this year, however Morgans does see a rebound in sight. 

Here’s the latest from the broker. 

Credit Corp’s trading update broadly positive

Credit Corp released a trading update last week which led to a 10% single-day rise.

The debt collector revealed that it is on track to deliver record earnings in FY 2026. 

It is projecting net profit after tax of $100 million to $110 million, which would be up from $94 million in FY 2025. 

It also advised that its ledger investments will be higher than previously expected at $295 million to $330 million and gross lending is now projected to be higher at $420 million to $430 million.

Morgans maintained its buy recommendation but lowered its price target to $19.15 (previously $19.35). 

Management noted CCP is on track for strong earnings, with investment providing “a platform for growth in FY27”. Sustained delivery of the 3Q PDL momentum, alongside conversion of the US scale-up is key to a re-rating in our view. CCP is trading on ~7x FY27 PE, which we view as undemanding given the earnings profile.

From yesterday’s closing price of $11.505, this indicates an upside potential of 66%. 

Amcor results mixed

Amcor also released an important update last week in the form of quarterly results.

It reported a 77% rise in net sales to US$5.91 billion and an 87% increase in adjusted EBITDA to US$892 million.

Amcor shares jumped 5% following this result, however Morgans were less convinced than the general market. 

The broker said while AMC’s 3Q26 earnings were largely in line with expectations, FY26 underlying EPS and FCF guidance was downgraded. 

Key positives include Berry synergy benefits tracking above initial expectations, continued progress on portfolio optimisation with further non-core asset divestments, and pass-through mechanisms working well with movement in resin prices due to the Middle East conflict not having a material impact on earnings. 

Key negatives include ongoing soft volumes, a downgrade to FY26 underlying EPS guidance (albeit better than feared), a reduction to FCF guidance, and leverage at the end of FY26 now expected to be higher than previously anticipated.

Based on this guidance, the broker reduced its price target to $65.40 (from $68.20). 

From yesterday’s closing price of $55.20, this updated price target indicates an upside potential of 18%. 

Trading on 9.2x FY27F PE with a 6.7% yield, we believe AMC’s valuation remains attractive with Berry synergies tracking well. Further non-core asset sales (particularly the North America Beverage business) will be a potential positive catalyst. BUY rating maintained.

The post Why did this broker just lower its price targets on these ASX shares? appeared first on The Motley Fool Australia.

More reading

• Should you buy Amcor shares for the 7% dividend yield?
• What does Macquarie say Amcor is worth after this week’s quarterly?
• Why Amcor, Credit Corp, Neuren, and Zip shares are charging higher today
• Why Tabcorp, Light & Wonder and Amcor shares are making waves on Thursday
• Why are Amcor shares surging higher today?

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 positions in and has recommended Amcor Plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Amcor PLC (ASX: AMC) shares have underperformed over the last 12 months.

On Tuesday, shares in the S&P/ASX 200 Index (ASX: XJO) global packaging giant closed up 0.51%, trading for $55.25 apiece.

Despite that lift, Amcor shares remain down 22.24% since this time last year, trailing the 5.31% 12-month gains delivered by the benchmark index.

However, following on the now completed acquisition of United-States-based packaging company Berry Global last year, Amcor has ramped up its dividends.

The ASX 200 stock is favoured by many passive income investors for making quarterly payouts, rather than just twice per year.

Indeed, in the first two quarters of 2026, the company has declared two unfranked dividends totalling $1.84 a share. That’s up from a total of 39.4 cents a share from the previous two quarterly dividends.

The latest Amcor dividend of 91 cents a share for the March quarter is still up for grabs, by the way. If you want to bank that passive income, you’ll need to own the stock at market close on 26 May. Amcor shares trade ex-dividend on 27 May. You can then expect to see receive that payout on 17 June.

That passive income boost was supported by a 77% year-on-year increase in quarterly net sales to US$5.91 billion. And Amcor’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$892 million leapt by 87%.

Which brings us back to our headline question…

Amcor shares: Buy, hold, or sell?

Sanlam Private Wealth’s Remo Greco recently analysed the outlook for Amcor stock (courtesy of The Bull).

Greco noted that Amcor shares have come under heavy selling pressure since trading at six-month highs in February.

According to Greco:

The global packaging giant’s share price has fallen significantly from recent highs over investor concerns about rising plastic resin costs, which are linked to petrochemical and oil prices.

The RBA’s three consecutive interest rate hikes in 2026 and the resulting rising Aussie dollar, along with the outbreak of the Iran war, have also thrown up headwinds for the stock.

Greco said:

Concerns about potential supply constraints and a stronger Australian dollar have contributed to a weaker share price. The shares have fallen from $67.84 on February 27, a day prior to the start of the Middle East conflict, to trade at $55.32 on May 7.

Connecting the dots, Greco issued a hold recommendation on Amcor shares.

“The sell-off may have been excessive. The stock trades notably below peers and was recently yielding more than 7%. A de-escalation of Middle East tensions would lower earnings risk,” he concluded.

The post Should you buy Amcor shares for the 7% dividend yield? appeared first on The Motley Fool Australia.

More reading

• Why did this broker just lower its price targets on these ASX shares?
• What does Macquarie say Amcor is worth after this week’s quarterly?
• Why Amcor, Credit Corp, Neuren, and Zip shares are charging higher today
• Why Tabcorp, Light & Wonder and Amcor shares are making waves on Thursday
• Why are Amcor shares surging higher today?

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 positions in and has recommended Amcor Plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.