Many investors might choose to stay away from ASX small-cap stocks. 

That’s because historically, they can come with increased volatility. 

There are more than 2,000 small-cap companies on the ASX. 

Many of these are companies that are yet to turn a profit, rely on private or government funding, or have unproven leadership.

Sometimes, they have all of the above. 

But a select few of these small-cap stocks will turn into blue-chip companies. 

Let’s look at CSL (ASX: CSL) for example. 

In the early 2000’s the company had a market cap hovering around $1.5 billion and a share price just over $10. 

Fast forward to today, and the company is one of the top 10 largest companies in Australia with a share price of roughly $184, representing almost a 2000% gain since 2002. 

While this is a one-off example, it illustrates the potential long-term upside of identifying profitable small-cap stocks. 

This year, there have been two mining companies that have had share price gains of between 180-200%. 

This kind of return, regardless of risk-appetite, is worth paying attention to for investors. 

Let’s look at the two companies. 

Predictive Discovery Ltd (ASX: PDI)

The company operates gold and uranium exploration projects in West Africa. According to the company, Its strategy is to identify and develop gold deposits within the Siguiri Basin, Guinea. 

After last week’s close, its share price is now up 200% in 2025. 

Key highlights were the completion of its Definitive Feasibility Study (DFS) which, according to the company, confirms its Bankan Gold Project as a rare gold asset, with large-scale, a long-life production profile, robust margins, and the ability to generate strong returns through the cycle. 

However, as with any mine project – this depends on variables like execution, commodity prices etc. 

In October, the company announced a merger with fellow Robex Resources (ASX: RXR). 

However, Perseus Mining Ltd (ASX: PRU) has now also tabled an offer to Predictive Discovery. 

The offer was deemed as a “superior proposal” by the board. 

Robex now has five business days, until 10 December 2025, to decide whether to match or exceed that offer.

This decision will be important to watch, as two competing companies are essentially fighting for exposure to Predictive Discovery’s assets. 

Resolute Mining Ltd (ASX: RSG)

Resolute Mining is also an African-focused gold miner. It has operated for more than 30 years as an explorer, developer and operator.

The company has benefited from surging commodity prices and key increases in production. 

In October, the company was granted two new exploration permits. The company said it aims to kick off exploration across these permits in 2026. 

This contributed to boosted gold estimates 60% larger than historical estimates at the site.

Its share price has now soared 168.29% in 2025. 

The post Should we be paying more attention to these two rocketing ASX small-cap mining stocks? appeared first on The Motley Fool Australia.

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• 6 ASX shares including Ora Banda and Aussie Broadband ascend into ASX 200
• Why 4DMedical, Dateline, Predictive Discovery, and Wildcat shares are racing higher
• Why Block, Collins Foods, Perseus Mining, and Robex Resources shares are falling today
• This ASX 300 gold stock is rocketing 27% amid takeover bidding war
• Perseus Mining launches superior offer for Predictive Discovery shares

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 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.

This year has been rough on this ASX 200 mining stock. New Hope Corporation Ltd (ASX: NHC) shares are down significantly in 2025, falling 20% for the year to date.

The sliding share price is reflecting a steep decrease in global coal prices. Yet the coal mining company still delivers a relatively high dividend yield of 8.5% at current levels.

For income-focused investors, that might look tempting. But is it really time to buy this ASX 200 mining stock?

Diversifying coal-market risk

New Hope is one of Australia’s established coal miners. Its operations include major assets such as the Bengalla Mine in New South Wales and the New Acland Mine in Queensland.

In FY2025, higher output from the mines, especially New Acland, boosted saleable coal production to 10.7 Mt.

New Hope also increased its equity in Malabar Resources to about 23%, increasing its exposure to metallurgical coal and diversifying its coal-market risk. The company highlights that it maintains key strengths: low-cost operations, coal type diversification, and disciplined management despite weak prices.

Market beating dividends

Shares in the coal stock closed last week at $3.99, a gain of 2.8%. The ASX 200 mining stock is down 8% this month and 19% over a year, but still up 171% over five years.

However, New Hope has continued to reward passive income investors with some market beating dividends.

Shareholders received a fully franked 19 cent interim dividend on 9 April, and a final fully franked 15 cent dividend from New Hope on 8 October. The total annual dividend is 34 cents per share, giving New Hope stock a fully franked 8.5% trailing yield that partially offsets last year’s capital losses.

The company also introduced a Dividend Reinvestment Plan (DRP), letting eligible shareholders reinvest dividends as new shares.

Management has stated dividends will continue as the main form of shareholder return, supported by strong franking credits.

What do the experts think?

New Hope’s weak share price and high yield may appeal to income investors who accept commodity risk. Returns depend highly on unpredictable coal market conditions. If coal prices rebound, the coal miner could deliver strong investor returns.

Brokers are divided. Only a few analysts rate the ASX 200 mining stock a buy and set a target price over $5.00. Most market watchers are more conservative with a hold recommendation and a target price for the next 12 months of $4.10, a modest upside of 2.7%.

Analysts at Macquarie Group (ASX: MQG) have become cautious, downgrading New Hope to ‘underperform’ and cutting their 12-month price target to $3.80 per share. They are citing weaker coal-price outlook and subdued production expectations as the reason for the downgrade.

The post ASX 200 mining stock down 20% with 8% yield: is it a buy? 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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 have had a reputation for profit growth over the years. But, the business is now facing headwinds in the US and a potentially slower growth outlook.

The ASX biotech share has carved out a good position in immunoglobulin (IG) products, blood plasma collection centres and vaccines.

Analysts are not convinced the business can continue growing profit as strongly for the foreseeable future.  

With uncertainty in the air, let’s take a look at how much profit analysts are projecting the business could produce in the coming years.

FY26

Despite all of the difficulties the business is facing, the broker UBS is projecting that the company’s net profit could rise in 2026.

UBS noted that at a recent capital markets day, CSL expects high single digits IG sales growth in FY27 and FY28, with the broker predicting 5% growth. The market is expected to see mid-single-digit to high-single-digit growth, along with market share gains of between 1% to 2%.

The broker noted that market share gains in IG are expected to come from new hospital sales force, pre-filled syringe adoption and enhanced tender capabilities.

UBS also highlighted that high single-digit sales growth is expected in hemophilia, AHC and HAE.

The broker is also expecting that the net profit margin could increase 100 basis points (1.00%) across FY27 and FY28 due to lower costs of goods sold as well as operating leverage.

In FY26, US$200 million is expected to be achieved of its cost saving target of US$550 million. Separately, CSL is targeting an 11% reduction in addressable manufacturing costs by FY28.

CSL believes it’s well-positioned to deal with US tariffs and other headwinds related to the US with “likely plasma exclusion and its growing US investment”.

UBS also said that Seqirus (the vaccine business) is outperforming in a difficult US market, with a significant drop in US vaccination rates. But, market share gains in Europe are helping offset some of the pain. UBS said there is room for a recovery because flu doses in FY26 are around 30% below pre-COVID levels, while other large markets are at pre-COVID levels.

There are a lot of moving parts with CSL, which are all under scrutiny amid all of the CSL share price pain.

Despite all of the above, the business is projected to grow its net profit to US$3.46 billion in FY26.

FY27

Profit is expected to continue to rise in the 2027 financial year for shareholders.

UBS projects that owners of CSL shares could see the company’s net profit climb to $3.79 billion in FY27.

FY28

The 2028 financial year could get even better for CSL, with UBS forecasting that the company’s net profit could increase to $4.17 billion.

FY29

The FY29 net profit could climb even further for shareholders, according to UBS, to $4.5 billion.

FY30

If UBS is correct with its projections, then CSL could achieve a net profit of $4.7 billion in FY30. This implies a possible rise of net profit by 38% between FY26 and FY30. Time will tell how close these projections are to reality, but they are promising.

The broker has a buy rating on the business, with a price target of $275. That suggests a possible rise of almost 50% in the next year.

The post Here’s the earnings forecast out to 2030 for CSL shares appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
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• 2 big ASX 200 shares this fund manager rates as buys
• Brokers name 3 ASX shares to buy today
• Why CSL shares now look ‘massively oversold’

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 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.

With interest rates now heading lower and savings accounts offering slimmer returns, many investors are shifting their focus back to dividend-paying shares.

And with the ASX home to some of the world’s most reliable income shares, there are plenty of attractive opportunities for those looking to put $20,000 to work right now.

If you’re building or expanding an income-focused portfolio, three well-established Australian shares stand out as top choices for December.

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman has long been a favourite among dividend investors thanks to its strong cash generation, extensive store network, and conservative balance sheet. While retail conditions have been patchy in 2025 due to cost-of-living pressures, Harvey Norman continues to benefit from resilient demand in categories such as appliances, technology, and furniture.

Another positive is that management owns a significant portion of the business, aligning their interests with shareholders and supporting a disciplined approach to capital allocation. And as economic conditions stabilise in 2026, Harvey Norman’s earnings, and its dividends, are well placed to improve again.

At present, its shares trade with a trailing fully franked dividend yield of 3.9%.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share to consider for that $20,000 investment is Super Retail Group.

It is the owner of well-known retail brands Supercheap Auto, Macpac, BCF, and Rebel. These businesses operate in categories where customers tend to remain relatively loyal even during tougher economic periods. That resilience has helped Super Retail deliver consistently strong earnings and a steady stream of dividends.

In recent years, the company has strengthened its balance sheet, expanded its online presence, grown its loyalty program, and improved inventory efficiency, positioning it well for the future. Especially now interest rates are falling.

And with its shares trading at attractive levels compared to historical averages, dividend investors are being offered both income and potential upside as trading conditions normalise.

Super Retail’s shares currently trade with a trailing fully franked dividend yield of 4.2%.

Woolworths Group Ltd (ASX: WOW)

A final ASX dividend share to consider is Woolworths. As one of the country’s big two supermarket operators, it is a defensive option that is able to generate stable revenue regardless of economic cycles.

This consistency allows Woolworths to pay reliable dividends year after year. And despite some recent share price weakness related to increased competition and shifting consumer behaviour, Woolworths remains a dominant player with a strong brand, deep customer loyalty, and growing digital capabilities.

It is currently trading with a trailing fully franked dividend yield of 3.1%.

The post Where to invest $20,000 in ASX dividend shares appeared first on The Motley Fool Australia.

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

Corporate Travel Management Ltd (ASX: CTD) and uranium miner Boss Energy Ltd (ASX: BOE) are among six ASX shares that will be dropped from the S&P/ASX 200 Index (ASX: XJO) in the December rebalance.

Corporate Travel Management shares have been suspended since 26 August after the company revealed accounting irregularities in its UK operations.

Auditors have since discovered incorrect revenue recognition of GBP 45.4 million and other irregularities.

S&P Dow Jones Indices announced its next quarterly rebalance, effective 22 December, after the market close on Friday.

Car parts retailer Bapcor Ltd (ASX: BAP) and poultry producer and food processor Inghams Group Ltd (ASX: ING) will also drop out.

Alternative asset and property fund manager, HMC Capital Ltd (ASX: HMC) will also go.

Intellectual property services firm, IPH Ltd (ASX: IPH), rounds out the list of ASX 200 departees.

You can find out which shares will enter the ASX 200 index on 22 December here.

What is an index rebalance?

Every three months, S&P Dow Jones Indices reviews and updates Australia’s leading market indices.

Rebalances ensure the indices accurately rank the nation’s largest listed organisations by market capitalisation.

Indices provide a consistent way to measure and monitor the market’s performance over the long term.

The ASX 200 is the benchmark index for the Australian share market.

However, other indices, like the S&P/ASX All Ordinaries Index (ASX: XAO) and S&P/ASX 300 Index (ASX: XKO), are also very important.

Why is it bad for these ASX 200 shares?

Membership in the ASX 200 indicates a company’s strong market standing.

Being dropped in a rebalance can signal potential problems, market headwinds, or a declining stock valuation.

As shown below, all six of these ASX 200 shares have fallen over the past year (except the frozen Corporate Travel Management shares).

Leaving the ASX 200 can have tangible effects on a share’s price. This is because it triggers passive investment exits.

Many exchange-traded funds (ETFs) and managed funds are designed to track the performance of the ASX 200.

This means that every quarter, fund managers must buy the shares that enter the ASX 200 and sell those that leave.

This can result in extra trading activity around the rebalance date, which may influence a share’s value.

Rebalances have greater significance than ever before due to the rising popularity of ASX ETFs.

The latest Betashares data shows Australians ploughed a record $5.99 billion into ASX ETFs in October.

A record $321.7 billion is now invested in more than 400 ETFs on the market today.

ASX ETFs are a passive, diversified investment option that many investors perceive as convenient and lower risk.

They are a basket of shares that investors can buy in one trade for one brokerage fee, with low ongoing management fees thereafter.

The post Corporate Travel Management and Boss Energy shares dumped from ASX 200 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 6 ASX shares including Ora Banda and Aussie Broadband ascend into ASX 200
• Guess which ASX mining stock was just promoted to the S&P/ASX 50?
• ASX 200 mining shares outperform as iron ore and copper prices strengthen
• Investors can target $1,240 a year in dividend income from $20,000 in this ultra-high-yielding ASX 200 gem – here’s how

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 Corporate Travel Management and HMC Capital. The Motley Fool Australia has positions in and has recommended Corporate Travel Management. The Motley Fool Australia has recommended HMC Capital and IPH Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) shares rose 7.61% last week to close at a new 52-week high of $44.84 on Friday.

The market’s largest mining stock was not alone in this feat.

Fellow ASX 200 heavyweight iron ore shares Fortescue Ltd (ASX: FMG) and Rio Tinto Ltd (ASX: RIO) also hit new 52-week highs.

The Fortescue share price rose 3.27% to close at a 52-week high of $22.11 on Friday.

Rio Tinto shares reached a new 52-week high of $140.58 on Thursday and closed 4.68% higher for the week at $138.47 apiece.

The market’s largest pure-play copper stock, Sandfire Resources Ltd (ASX: SFR), also reached a record high of $17.20 on Thursday.

Commodity prices push miners higher

Stronger iron ore and copper prices pushed these four ASX 200 mining shares to new price milestones last week.

Iron ore rose 2.9% to US$107.88 per tonne.

That may not sound like a big price increase, however, it’s significant given the overall year-to-date (YTD) gain is only 4.1%.

Copper futures rose 4% to US$5.40 per pound on Friday, up a stunning 35.5% for the year.

Stronger iron ore and copper prices are particularly positive for BHP and Rio Tinto shares.

Both miners have significantly expanded their copper operations, with BHP now the world’s largest copper producer.

BHP also has high-quality metallurgical coal operations, and the coking coal price lifted 6% last week to US$209.50 per tonne.

Meanwhile, other tailwinds for Rio Tinto shares are rising aluminium and lithium prices, up 14% and 25%, respectively, in the YTD.

Rio Tinto also promised investors a ‘stronger, sharper, and simpler‘ business model in a strategy update last week.

Boosted BHP share price moves miner closer to No 1. spot

BHP is not only the largest mining share but also the second biggest company by market capitalisation on the ASX 200.

Last week’s share price surge has potentially put BHP on a path to overtaking Commonwealth Bank of Australia (ASX: CBA) as Australia’s most valuable listed company.

If this occurs, it would be a reclamation for BHP shares.

CBA took the title in July last year after an unprecedented share price surge made it the world’s most valuable bank stock.

CBA shares are now in a steep correction.

The CBA share price has plummeted almost 20% from a record $192 apiece in late June to $154.21 on Friday.

Now, just $30 billion of market cap separates BHP ($228 billion) and CBA shares ($258 billion) at the top of the ASX 200 table.

BHP vs. CBA shares: what do the experts say?

Most major brokers have a neutral or buy rating on BHP shares with minimal share price growth projected over the next 12 months.

Last week, JP Morgan reiterated a hold rating on BHP with a 12-month share price target range of $42.25 to $46.27.

Citi also placed a hold rating on the ASX 200 mining stock with a price target of $46.27.

Ord Minnett has a buy rating on BHP shares with a price target of $45.

Morgan Stanley also gives the ‘Big Australian’ a buy rating. The broker predicts the BHP share price will lift to $48 by this time next year.

Conversely, most brokers have a sell rating on CBA shares.

Morgans has a sell rating on CBA with a share price target of $96.07. This suggests a potential 38% downside over the next 12 months.

Ord Minnett has a sell rating with a price target of $105 on CBA shares. Jarden says sell with a target of $100.

UBS says sell with a target of $125 and Goldman Sachs also gives a sell rating with a target of $132.84.

The post BHP shares surge 8% on their way to reclaiming the No. 1 title from CBA appeared first on The Motley Fool Australia.

More reading

• How to invest your first $1,000 in the share market the smart way
• ASX 200 mining shares outperform as iron ore and copper prices strengthen
• Expert lists its top resources shares to target in December
• Here are the top 10 ASX 200 shares today
• Major ASX 200 mining shares hit 52-week highs

JPMorgan Chase is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and JPMorgan Chase. 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.

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week in the red. The benchmark index was down 0.2% to 8,634.6 points.

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

ASX 200 expected to fall

The Australian share market looks set for a poor start to the week despite a decent finish to the last one on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 13 points or 0.15% lower. In the United States, the Dow Jones was up 0.2%, the S&P 500 rose 0.2%, and the Nasdaq pushed 0.3% higher.

Oil prices rise

It could be a decent start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices pushed higher on Friday night. According to Bloomberg, the WTI crude oil price was up 0.7% to US$60.08 a barrel and the Brent crude oil price was up 0.8% to US$63.75 a barrel. Stalling Russia and Ukraine peace talks gave prices a boost. Though, over the weekend, the US claims that progress was made.

Quarterly rebalance

A number of ASX 200 shares will be on watch today after being kicked out of the benchmark index at the December quarterly rebalance. Leaving the ASX 200 index on 22 December are Bapcor Ltd (ASX: BAP), Boss Energy Ltd (ASX: BOE), Corporate Travel Management Ltd (ASX: CTD), HMC Capital Ltd (ASX: HMC), Inghams Group Ltd (ASX: ING), and IPH Ltd (ASX: IPH).

Gold price flat

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price traded flat on Friday night. According to CNBC, the gold futures price was steady at US$4,243 an ounce. However, the precious metal had a good week, driven by expectations that the US Federal Reserve will cut interest rates this month.

Buy Catalyst Metals shares

Bell Potter thinks that Catalyst Metals Ltd (ASX: CYL) shares are in the buy zone right now. This morning, the broker has retained its buy rating on the gold miner’s shares with an improved price target of $9.30. It said: “We view CYL as derisking the Plutonic gold hub with a clear line of sight to a 200kozpa steady state (FY29). Execution on the plan (five mines feeding an underutilised 1.8Mtpa plant) and Reserve growth towards >2Moz are viewed as the key drivers of multiple re- ratings and margin expansion.”

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

More reading

• 6 ASX shares including Ora Banda and Aussie Broadband ascend into ASX 200
• Guess which ASX mining stock was just promoted to the S&P/ASX 50?
• ASX 200 mining shares outperform as iron ore and copper prices strengthen
• Investors can target $1,240 a year in dividend income from $20,000 in this ultra-high-yielding ASX 200 gem – here’s how
• Should you buy Santos, Beach Energy or Woodside shares? Here’s Macquarie’s top pick

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Corporate Travel Management and HMC Capital. The Motley Fool Australia has positions in and has recommended Corporate Travel Management. The Motley Fool Australia has recommended HMC Capital and IPH Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.