Building a portfolio that delivers income today while still growing over time can feel like a balancing act.

Lean too heavily toward income and you risk missing out on long-term capital growth. Focus only on growth and you may end up with little cash flow to reinvest or use when you need it. The good news is that the ASX offers plenty of opportunities to combine both objectives in a single, well-structured portfolio.

Here is how I would approach building an ASX portfolio designed for both income and growth.

Start with a reliable income base

Every income and growth portfolio benefits from a solid foundation.

This is where established Australian shares with consistent earnings and a history of paying dividends come into play. These businesses are often tied to everyday spending or essential services, which helps support regular cash flow across different market conditions.

Shares such as Woolworths Group Ltd (ASX: WOW) or Telstra Group Ltd (ASX: TLS) are good examples of companies that may not grow rapidly, but can provide dependable income that anchors a portfolio.

This income can be taken as cash or reinvested to accelerate long-term growth.

Add shares that can grow dividends over time

The next step is to look beyond dividend yield alone.

Some of the most effective income portfolios are built around companies that start with a modest yield but increase their dividends as earnings grow. Over time, this can lead to a rising income stream that keeps pace with inflation and boosts total returns.

Businesses like ResMed Inc. (ASX: RMD) or CSL Ltd (ASX: CSL) illustrate this approach. While income may not be the primary attraction initially, long-term earnings growth creates the capacity for higher dividends in the future.

This is where income and growth begin to work together rather than compete.

Use ETFs to smooth and diversify returns

ETFs can play a valuable role in balancing an ASX portfolio.

Income-focused ETFs provide diversified dividend exposure, reducing reliance on any single stock. At the same time, growth-oriented ETFs can lift long-term return potential without requiring constant stock selection.

An ETF such as Vanguard Australian Shares High Yield ETF (ASX: VHY) can support income, while a broader fund like Vanguard MSCI International Shares ETF (ASX: VGS) introduces global growth and diversification beyond Australia.

Using ETFs alongside individual shares helps create a smoother investment experience over time.

Reinvest income strategically

One of the most powerful tools in an income-and-growth portfolio is dividend reinvestment.

In the early and middle stages, reinvesting dividends back into shares or ETFs can significantly accelerate compounding. That income effectively buys more assets, which then generate even more income in the future.

As the portfolio grows, investors can gradually shift from full reinvestment toward taking some income as cash, without needing to overhaul the portfolio.

Foolish takeaway

Building an ASX portfolio for income and growth is about balance, not compromise.

By combining reliable dividend payers, companies with growing earnings, and a small number of well-chosen ETFs, it is possible to create a portfolio that delivers cash flow today while still compounding for the future. With patience and discipline, income and growth can work together rather than pulling in opposite directions.

The post How to build an ASX share portfolio for income and growth appeared first on The Motley Fool Australia.

More reading

• Are Woolworths shares a blue-chip buy?
• What are the healthcare stocks where RBC Capital Markets thinks you can make money?
• Why Goldman Sachs expects Woolworths shares to leap 21%, plus dividends!
• Check out this CSL share price forecast for 2026. It’s hard to believe!
• Would Warren Buffett buy Telstra shares?

Motley Fool contributor James Mickleboro has positions in CSL, ResMed, and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and ResMed. The Motley Fool Australia has positions in and has recommended ResMed, Telstra Group, and Woolworths Group. The Motley Fool Australia has recommended CSL, Vanguard Australian Shares High Yield ETF, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Lynas Rare Earths Ltd (ASX: LYC) has been one of the ASX’s biggest winners over the past year. But after a huge run, the stock has hit a speed bump today.

At the time of writing, Lynas shares are down 6.39% to $15.24. The pullback comes after a sharp rally in recent weeks. The stock is still up around 25% over the past month and more than 120% over the past year.

A breather after a strong rally

After a strong run higher, Lynas shares have run into selling pressure. Some investors appear to be taking profits following the recent rally, particularly after the stock moved close to a 3-month high.

This type of pullback is common in resource stocks, where momentum can change quickly. As prices cool across parts of the rare earths market, traders appear to be stepping back and reassessing, leading to short-term volatility.

Rare earths prices cool from recent highs

Another factor weighing on Lynas shares is a pullback in rare earth prices, particularly neodymium and praseodymium. These metals are critical for making magnets used in electric vehicles, wind turbines, and defence equipment.

Prices surged strongly late last year on supply concerns and geopolitical tensions. More recently, those prices have cooled as markets review demand and Chinese supply conditions.

Why investors still back Lynas for the long run

Lynas is one of the few large rare earths producers outside China, a position that has attracted growing attention from both governments and global investors focused on supply security.

Demand for rare earths is expected to keep rising over the long term. These materials play a critical role in technologies that are central to global energy and security policies.

The company has also benefited from strong investor interest in anything linked to energy transition and national security.

What the market is watching next

Looking ahead, investors will be watching a few key things.

The biggest focus right now is rare earths pricing. Materials such as neodymium and praseodymium have eased recently, and any stabilisation or rebound would likely support the share price.

After a strong run, investors will also be looking closely at Lynas’ next earnings update to see whether the company can meet those higher expectations.

Foolish bottom line

Today’s drop looks more like consolidation than reversal in the underlying trend. After rising more than 120% in a year, some volatility is normal.

For long-term investors, the key question is whether demand for rare earths keeps growing. If it does, Lynas is very well placed to benefit over the long term.

The post Why Lynas shares are sliding today, despite a massive year appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Catalyst Metals, Lynas, Polynovo, and St George Mining shares are pushing higher today
• ASX 200 materials sector outperforms as mining shares continue their ascent
• Here are the top 10 ASX 200 shares today
• Lynas shares storm 26% higher. Is the stock a buy, hold or sell for 2026?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. 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 Wesfarmers Ltd (ASX: WES) share price is in the green in Tuesday afternoon trade. At the time of writing, the shares are 0.38% higher at $82.95 a piece.

For the year to date, shares in the retailer, which owns the Kmart Group, Bunnings Warehouse, Officeworks, Priceline, and many more household names, have climbed 1.47%. They’re now trading 15.58% ahead of this time last year.

Why is the Wesfarmers share price in the spotlight this week?

On Monday, the AFR reported that Wesfarmers had abruptly called off plants to support the largest franchisee in its Priceline pharmacy network, Infinity Pharmacy Group, which owes more than $400 million. The move means the company is on the verge of collapse and has been pushed into receivership.

In an update today, the AFR said that Wesfarmers reportedly “accused the owner of the largest Priceline franchisee [Infinity Pharmacy Group] of embarking on a debt-fuelled acquisition spree even as the business teetered on the brink and was falling behind in paying suppliers”.

The Wesfarmer share price has fallen 0.126% since Monday morning. While the latest news doesn’t appear to have affected the stock right now, it could affect investor sentiment as the group moves closer to its FY26 half-year results announcement. Wesfarmers is expected to post its next update next month on the 19th February.

The retail company’s annual general meeting (AGM) in late October slashed investor confidence and caused a sharp 15% sell-off. Some areas of the business saw year-to-date sales growth, but management said that challenging trading conditions have affected its Industrial and Safety division.

What do analysts think of the stock?

Analysts are bearish on the outlook for Wesfarmers shares. TradingView data shows that 7 out of 15 analysts have a sell or strong sell rating on Wesfarmers shares. Another 6 have a hold rating, while two have a strong buy rating.

The average target price is currently $81.64, implying a 2.14% downside for investors over the next 12 months at the time of writing. Although the difference between the maximum and minimum 12-month target price is significant. 

Some analysts think the shares could fall another 23.78% to $63.60 over the next 12 months, from the current trading price. Meanwhile, others are much more optimistic and expect the Wesfarmers share price to jump 19.8% to $100 per share.

In my view, Wesfarmers shares are a long-term passive-income play rather than a short-term gain play.

The company is one of the most effective ASX blue-chip shares to own over the long term. That’s because while Wesfarmers is famous for its household-name retailers, it also owns several other businesses. This diversity helps the company maintain a strong track record of delivering growth while consistently increasing dividends for shareholders.

The post Why is everyone talking about the Wesfarmers share price this week? appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I would hold for the next 10 years
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• My simple 5-share ASX retirement portfolio
• These ASX shares won big last year and are still excellent buys for 2026
• 3 ASX shares that I rate as buys for both growth and dividends

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.

RBC Capital Markets has issued a note to its clients this week, warning that the coming reporting season could be a difficult one for the healthcare sector.

But that’s not to say they believe there isn’t money to be made, with bullish price targets on a number of stocks.

Doing it tough

The RBC team said broadly regarding the sector:

We are expecting a somewhat difficult reporting season for our covered Australian healthcare companies with most results either coming in line with consensus expectations or disappointing. We have a similarly challenging view for the remainder of 2026 with our covered companies likely affected by new management teams ‘kitchen sinking’ guidance, cost pressures impacting margins, and competitive threats constraining revenue growth.

RBC said they were flagging “potential result misses” from Cochlear Ltd (ASX: COH), Regis Healthcare Ltd (ASX: REG), Nanosonics Ltd (ASX: NAN), Australian Clinical Labs Ltd (ASX: ACL), Monash IVF Ltd (ASX: MVF), and a beat from CSL Ltd (ASX: CSL).

They went on to say:

In this context, we favour stocks with strong near-term earnings outlooks that can hold their current valuation multiples and obtain share price appreciation through earnings growth.

These companies included CSL, ResMed Inc (ASX: RMD), Cochlear, Ansell Ltd (ASX: ANN), and Integral Diagnostics Ltd (ASX: IDX).

Price targets looking attractive

Drilling down further into the companies expected to experience share price gains, RBC said they believed ResMed would deliver a “solid” result, with double-digit revenue and net profit growth.

RBC has a price target on ResMed of US$311 for its US-listed stock compared with $US257.58 currently, which would be a 20.7% gain if achieved.

For CSL, RBC expects “a better-than-expected result with revenue and gross profit exceeding consensus forecasts”.

RBC has a price target of $230 on CSL shares compared with $178.21 currently.

For Cochlear, the RBC team believe the hearing device company could miss consensus forecasts, but still has a bullish price target on the stock of $325 compared with $268.93 currently.

Regarding Ansell, RBC forecasts “a soft operational result with revenue and gross profit missing consensus expectations, but better cost management enabling an EBIT and NPAT beat”.

RBC has a price target of $41 on Ansell shares compared with $33.75 currently.

For Integral Diagnostics, RBC “forecast IDX’s 1H26 revenue being in line with consensus, however earnings coming in below expectations”.

Despite this they have a bullish share price target of $3.50, compared with $2.59 currently.

The post What are the healthcare stocks where RBC Capital Markets thinks you can make money? appeared first on The Motley Fool Australia.

More reading

• How to build an ASX share portfolio for income and growth
• 3 ASX shares I would hold for the next 10 years
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• 3 ASX 200 shares I’d load up on if markets crashed tomorrow
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Motley Fool contributor Cameron England has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Cochlear, Nanosonics, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Ansell, CSL, Cochlear, Integral Diagnostics, and Nanosonics. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woolworths Group Ltd (ASX: WOW) shares are pushing higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $30.46. In afternoon trade on Tuesday, shares are changing hands for $30.55 each, up 0.3%.

For some context, the ASX 200 is down 0.6% at this same time.

Taking a step back, Woolworths shares are up a slender 1.3% over the past 12 months. Though that doesn’t include the 84 cents a share in fully-franked dividends Woolies paid to eligible stockholders over this time.

Woolworths stock currently trades on a fully-franked trailing dividend yield of 2.8%.

Why have Woolworths shares underperformed over the full year?

Shares in the supermarket giant have yet to fully recover from the steep falls that followed on the release of the company’s FY 2025 results on 27 August.

Indeed, the stock remains down 8.5% since market close on 26 August, the day prior to the results release.

Woolworths shares plunged 14.7% on 27 August and continued to slide from there through to mid-October.

Investors were overheating their sell buttons after the company reported a 12.6% year-on-year fall in earnings before interest and tax (EBIT) to $2.75 billion. And FY 2025 net profit after tax (NPAT) of $1.39 billion was down 17.1% from FY 2024.

Why Goldman Sachs is bullish on Woolworths stock

After plumbing a five-year closing low of $25.91 a share on 14 October, shares in the ASX 200 supermarket have been on the rebound, now up 17.9% from those lows.

Woolworths CEO Amanda Bardwell foreshadowed that improving performance following the release of the company’s FY 2025 results.

“After a highly disrupted first half, we have taken action to reposition the group for long-term sustainable growth,” Bardwell said at the time.

Bardwell added:

We have seen some early positive signs with improving customer scores… Most important was getting it right for our customers.

We have invested in lowering shelf prices, increasing specials and absorbing cost price increases on everyday items and made our pricing clearer and easier to understand.

And Goldman Sachs believes the past three months’ rebound in Woolies’ stock is far from finished (courtesy of The Bull).

The broker recently initiated coverage on the supermarket giant with a buy rating, noting that the Aussie Supermarket segment more broadly is approaching a “turning point” amid improving product and shelf availability.

Goldman Sachs analyst Peter Marks has a $37 price target on Woolworths shares. That represents a potential upside of 21.1% from current levels. And it doesn’t include those upcoming dividends.

The post Why Goldman Sachs expects Woolworths shares to leap 21%, plus dividends! appeared first on The Motley Fool Australia.

More reading

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

Soaring ASX small-cap gold shares played a big role in the outperformance of the S&P/ASX Small Ords Index (ASX: XSO) last year.

Robert Hawkesford and Daniel Broeren, who run Blackwattle’s Small Cap Quality Fund, said strongly rising share prices for junior gold explorers pushed the small-cap index higher at 2.5x the pace of the S&P/ASX All Ords Index (ASX: XAO) in 2025.

Small-caps are typically young, growing companies with market capitalisations of between a few hundred million dollars and $2 billion.

Let’s take a look at some examples of ASX small-cap gold shares booking incredible 12-month growth rates.

ASX small-cap gold shares ripping up the charts

Barton Gold Holdings Ltd (ASX: BGD)

The Barton Gold share price has soared 385% over 12 months.

Barton Gold is a mineral explorer in South Australia.

Its projects include Tarcoola, a brownfield open-pit mine, and Tunkillia, which has a 1.5Moz Au JORC Mineral Resource Estimate.

Kingsgate Consolidated Ltd (ASX: KCN)

The Kingsgate share price is up 408% over 12 months.

The Australian gold and silver producer owns the Chatree Gold Mine in Thailand and the Nueva Esperanza Gold-Silver Project in Chile.

Golden Horse Minerals Ltd CDI (ASX: GHM)

The Golden Horse share price has ascended 250% over 12 months.

Golden Horse is working on multiple gold prospects in Western Australia. Its flagship project is Hopes Hill.

Black Cat Syndicate Ltd (ASX: BC8)

Black Cat shares are up 111% over 12 months.

This Western Australian miner has a portfolio of high-grade projects in prime gold regions.

They include the Paulsens Gold Operation in the Pilbara and the Kal East Gold Project east of Kalgoorlie.

What’s next in 2026?

All of these ASX small-cap gold shares benefited from a 65% rally in the gold price last year.

That was gold’s greatest annual rise in more than four decades and came on top of a 27% lift in 2024.

Strong central bank purchasing, lower interest rates, geopolitical tensions, US tariffs, and other elements have fuelled gold’s growth.

Professional investors are expecting the gold price to rise further in 2026.

A Goldman Sachs poll conducted in November found one in three institutional investors expect gold to go above US$5,000 per ounce this year.

Today, the gold price is US$4,672 per ounce, down 0.1% at the time of writing.

Warwick Grigor, an analyst at mining investment company Far East Capital, says gold has continuing tailwinds in the new year.

In an article, Grigor commented:

There is not much doubt that the gold price will continue to rise during 2026.

Sure, there will be volatility and some people are already saying that gold is a sell, but you would have to be very brave to exit gold just now.

As Hawkesford and Broeren point out, “smaller cap companies offer the greatest range of opportunities” for investors.

By nature, these young companies have more room for growth than larger, established companies.

This makes ASX small-cap shares exciting, but also risky, for investors.

If you’re considering buying ASX small-cap gold shares, Grigor has some advice on how to choose among them.

How to choose ASX small-cap gold shares

Far East Capital expects another strong year for the gold sector in 2026, but Grigor warns that “not every company will be a winner”.

The first step to selecting a good ASX small-cap gold share for investment is assessing its quality.

Grigor said:

Take the time to think about the quality of the investment being presented to you.

An existing producer can be more easily assessed by looking at its track record but there are many new companies coming through the pipeline.

They will be highly aspirational and have grand plans, but you need to take the time to consider how realistic they are.

The second step is considering the quality of the management team.

If you’re happy with the people running the business, then step three is assessing its technical merits.

Grigor said:

Many of these companies will be going to raise money while the ducks are quacking, but often their plans will be incomplete and uncertain — yet they can be made to look good on paper.

Most of these should be treated as trading opportunities in the near term, and they might be great stocks to own in the resource definition and expansion stage but never forget about the subsequent development and commissioning risk.

The post Considering ASX small-cap gold shares? Expert advice on how to decide appeared first on The Motley Fool Australia.

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

Zip Co Ltd (ASX: ZIP) shares are trading in the red again on Tuesday. At the time of writing the shares are down 0.98% to $3.03 a piece. 

The latest decline means the shares have now dropped 9.55% for the year-to-date but are 0.66% above the trading price this time last year.

What dragged Zip shares lower so far this year?

Zip shares jumped over 11% in just two days of trade earlier this month after positive market sentiment for buy-now-pay-later (BPNL) stocks boosted investor confidence. But the hike was short-lived.

However last week, Zip shares plunged 13.24%. There was no news out of the company at the time to explain the decline so it was more-than-likely linked to investors selling off their stock and taking profit.

What’s next for the business in 2026?

There have been plenty of ups and downs for the Australian financial technology company over the past year, but the business continues to show strong and improved earnings.

In the first quarter of FY26, the company said that its total transaction value grew 38.7% to $3.9 billion and income was up 32.8% to $321.5 million. 

At the time, the company said it is on track to meet its FY26 results target.

Meanwhile, Zip is also working on broadening its product range beyond the traditional BNPL options. In late October, the company announced that its US segment is expanding its partnership with programmable financial services business, Stripe.

Zip has said it is still considering a secondary sharemarket listing in the US which would reduce dependence on Australian markets and potentially introduce more opportunity for business expansion. A dual listing on Nasdaq could help the business tap into US capital markets and boost its valuation among US-based investors.

The next major update out of the company is expected next month. Zip plans to post its FY26 half-year results h on the 19th of February. Investors are expecting that the company will reveal news about whether the business is still on track, any news about the potential US expansion, and an update on transaction growth. 

Are Zip shares a buy, hold or sell?

Despite a lacklustre start to the year so far, analysts seem to be bullish that there is plenty more upside ahead for Zip shares. I certainly think the stock is a screaming buy for 2026.

Analysts at UBS have a buy rating and price target of $5.20 on the BNPL provider. The broker said that significant share price weakness has created a buying opportunity for investors.

Analysts at Citi also have a buy rating on Zip shares, and a price target of $4.30. The broker is predicting total transaction value (TTV) growth of 43% in the second quarter. 

TradingView data shows that the majority of analysts have the same bullish sentiment. Eight out of 10 have a buy or strong buy rating on the shares. The maximum target price is $6.11, which, at the time of writing, implies a potential 104.01% upside ahead over the next 12 months. 

The post Are Zip shares a buy, hold or sell in 2026? appeared first on The Motley Fool Australia.

More reading

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

BHP Group Ltd (ASX: BHP) shares are slipping today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant are down 1.7% in early afternoon trade on Tuesday, changing hands for $47.94 apiece.

For some context, the ASX 200 is down 0.6% at this same time.

Despite today’s retrace, BHP shares remain up 19.1% since this time last year. And that doesn’t include the $1.71 a share in fully-franked dividends the miner paid out over the 12 months.

This sees the stock handily outpacing the 5.7% one-year returns posted by the benchmark index.

And looking ahead, the team at Airlie Funds Management expect more outperformance to come (courtesy of The Australian Financial Review).

Here’s why.

BHP shares in the sweet spot

BHP is a diversified miner. The majority of its revenue comes from iron ore, with its growing copper revenue coming in at number two.

As you’re likely aware, the iron ore price has defied consensus expectations that it would trade below US$100 per tonne this year and potentially fall to US$80 per tonne.

However, BHP shares are Airlie’s biggest portfolio holding. The fund manager expects that iron ore prices will remain above US$80 per tonne, forecasting “fresh cash windfalls” for the miner, topping what the market has priced in.

Then there’s copper. Amid ongoing growth in global EV sales and the world’s push towards electrification, copper prices have surged more than 39% over the past year, currently trading for US$12,967 per tonne. And copper prices are widely expected to keep pushing higher in 2026.

This has helped send shares in ‘pure play’ ASX copper stock Sandfire Resources Ltd (ASX: SFR) rocketing 91.6% over 12 months.

That’s well ahead of the 19.1% gains delivered by BHP shares or rival rising copper producer Rio Tinto Ltd (ASX: RIO), whose shares are up 22.5% over this period.

Commenting on that lagging performance, Airlie fund manager Emma Fisher said, “We believe the valuation opportunity for both diversified miners [Rio Tinto and BHP] comes as the market is unwilling to ‘pay up’ for the 50% to 60% of both businesses that currently comes from iron ore.”

BHP increases FY 2026 copper guidance

BHP reported its half-year results (H1 FY 2026) for the six months to 31 December this morning.

On the copper front, the miner reported steady copper production of 984,000 tonnes, with its achieved copper price up 32% year on year to US$5.28 per pound. And BHP shares could get support with the miner upgrading its full-year FY 2026 copper guidance to 1.90 million tonnes to 2 million tonnes. That’s up from prior guidance of 1.80 million to 2 million tonnes.

“We have increased FY26 group copper production guidance off the back of stronger delivery across our assets,” BHP CEO Mike Henry said.

BHP shares increasing copper exposure

Commenting on the half-year results that have as yet failed to lift BHP shares today, Zavier Wong, market analyst at eToro, said:

BHP’s half-year update showed steady execution across iron ore and coal, providing a solid base for the business. It’s no surprise, though, that copper is the headline investors are focused on.

Wong noted, “BHP lifting copper production guidance highlights just how strategically important the metal has become, both for the company and the global economy.”

He concluded:

BHP is clearly positioning copper as a long-term growth pillar, with a pathway towards 2 million tonnes of production in the 2030s. Over the past 12 months, we have seen just how critical copper has become for the world’s largest miners as they look to secure future supply.

The post Why this fund manager is buying BHP shares appeared first on The Motley Fool Australia.

More reading

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

The Insurance Australia Group Ltd (ASX: IAG) share price is trading in the red again on Tuesday morning. At the time of writing, the shares are down 0.13% to $7.52 a piece.

Today’s decline means the IAG share price is now down 5.88% for the year-to-date and represents a 13.06% drop over the past year.

What happened to the IAG share price lower?

The IAG share price has been relatively volatile over the past 12 months, fluctuating anywhere between $7.10 a piece to $9.21 a piece. 

The shares crashed 15% in a week in February last year after investors were unhappy with its FY25 half-year result. 

The shares reached an annual low of $7.31 a piece in early April before climbing just over 20% to end the financial year at around $9 per share. 

The insurance company’s share price tumbled constantly throughout the final quarter of the 2025 calendar year after IAG provided FY26 guidance for GWP growth of “low-to-mid single digit”.

In 2026 so far the shares have tumbled even further after extreme weather conditions across the country. Recent weather events, such as bushfires and widespread flooding, raises concerns about the number of insurance claims and reinsurance costs. Investor concerns about what this might mean for the business has likely contributed to the pullback in the share price.

Buying opportunity or time to sell up?

While the IAG share price has tumbled recently, there has also been some positive news out of the business. 

Earlier this month, the insurance company announced that it has successfully integrated its RACQ Insurance (RACQI) business into its main catastrophe cover.

IAG also announced that it has expanded its WAQS arrangements to cover 35% of the consolidated business. The company has maintained RACQI’s separate standalone reinsurance program that comprised quota share and catastrophe protections.

IAG’s total 2026 catastrophe reinsurance program provides a main catastrophe cover for two events up to $10 billion, with an attachment at $500 million.

UBS recently said it predicts that the business could generate $1 billion of net profit in FY26.

The broker has a buy rating on IAG shares with a price target of $9.10. This implies a potential 21.01% upside for investors over the next 12 months, at the time of writing.

Some brokers are even more bullish. TradingView data shows that 7 out of 11 analysts have a buy or strong buy rating on the shares. The maximum target price is $9.90, which implies the shares could jump another 31.47% from the share price at the time of writing. 

There is no crystal ball to show exactly what will happen with the IAG share price. But with potential upsides as high as those noted above, the current price point could present a great opportunity for investors to get into the stock before it starts climbing again.

The post IAG share price drops 13 in a year: Buying opportunity or time to sell up? appeared first on The Motley Fool Australia.

More reading

• Looking at the IAG share price? Here’s how much this stock pays in dividends
• Brokers rate these 3 ASX shares as buys in January
• Why are IAG shares slipping today?
• IAG integrates RACQ Insurance into reinsurance
• Why these brokers are bullish on the Suncorp share price

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

S&P/ASX All Ords Index (ASX: XAO) shares rose by 7.11% and delivered total returns, including dividends, of 10.56% last year.

That was slightly higher than the benchmark S&P/ASX 200 Index (ASX: XJO), which rose 6.8% and returned 10.32%.

Earlier this month, we covered the five best-performing ASX All Ords shares for capital growth in 2025.

A number of stocks, not just the top five, more than tripled in value last year.

Here, we look at whether the experts think there is any room for further price growth in 2026 from two of these stocks.

Can these 2 ASX All Ords shares maintain their trajectory?

The following ASX All Ords shares rose by more than 200% in 2025.

Can they stay on this incredible upward trajectory?

Pantoro Gold Ltd (ASX: PNR)

The Pantoro share price rose 220% to close at $4.89 on 31 December.

Today, the Pantoro Gold share price is $5.48, up 0.64%.

Like all ASX All Ords gold shares, Pantoro benefited from the astounding 65% gold price rally last year.

Gold has continuing tailwinds, including interest rate cuts, geopolitical tensions, and strong central bank buying worldwide.

Pantoro is optimising its 100% owned Norseman Gold Project in the Eastern Goldfields of Western Australia.

Norseman’s total mineral resource is 4.8Moz. 

Pantoro bought a stake in Norseman in 2019 and merged with its joint venture partner in 2023 to achieve 100% ownership.

Over the past seven years, Pantoro has defined ore reserves of 958,000 ounces.

It has also built a new gold processing plant capable of producing 1.2Moz per annum, and recommenced production across the open pit and underground operations.

Over the past fortnight, three brokers reiterated their buy ratings on Pantoro Gold shares and raised their 12-month price targets.

Ord Minnett lifted its target from $6.40 to $7.30.

Canaccord Genuity increased from $7.30 to $7.50.

Goldman Sachs raised its target from $6.80 to $8.

Clearly, these brokers think this ASX All Ords gold share has more room to run.

Core Lithium Ltd (ASX: CXO)

This ASX All Ords lithium share leapt 206% to finish 2025 at 28 cents per share.

On Tuesday, the Core Lithium share price is 26 cents, down 8.9%. There is no news from the company today.

Core Lithium shares have benefited from a rebound in lithium commodity prices since mid-2025.

The global oversupply that killed lithium prices in 2023 is now over, and demand for batteries and electric vehicles is higher.

Analysts at Trading Economics say the lithium carbonate price is now at a two-year high.

Core Lithium’s flagship Finniss Project was put into care and maintenance in early 2024 due to weak lithium prices.

However, the miner released a restart plan last year and says it will only take a month to resume production.

However, it can’t reopen the mine without new financial partners.

Core Lithium raised its ore reserve estimate for the Grants deposit by 33% to 1.53Mt at 1.42% Li2O last year.

Last week, Canaccord Genuity reiterated its buy rating on this ASX All Ords lithium share.

The broker lifted its share price target from 27 cents per share to 40 cents per share.

This implies a potentially large upside of 35% this year.

Goldman Sachs is much less optimistic.

Earlier this month, the broker reiterated its hold rating and increased its price target from 14 cents to 18 cents.

This suggests a 30% share price decline is on the cards.

The post Brokers rate 2 ASX All Ords rippers of 2025: Is their phenomenal run over? appeared first on The Motley Fool Australia.

More reading

• One of the ASX’s biggest losers today. What is happening at Core Lithium?
• Up 365% since April, should you buy the recent dip in Core Lithium shares?
• Why EOS, Humm, Pantoro Gold, and Robex shares are dropping today
• Up 211% in a year, guess which ASX 200 gold share just announced new high-grade results
• Silver, lithium, and critical minerals commodities book double digit gains in just one week

Motley Fool contributor Bronwyn Allen has positions in Core Lithium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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.