In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decline. At the time of writing, the benchmark index is down 0.4% to 8,658.3 points.

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

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH)

The Fisher & Paykel Healthcare share price is up 7% to $29.66. Investors have been buying this medical device company’s shares following the release of a strong FY 2026 result. Fisher & Paykel Healthcare reported a 14% increase in total operating revenue to NZ$2.31 billion and a 24% increase in net profit after tax to NZ$469.5 million for FY 2026. The company’s CEO, Lewis Gradon, said: “Our Hospital business performed strongly across the portfolio of therapies globally. We were especially encouraged by consumables growth, given it occurred during a period in which hospital admissions for seasonal respiratory illnesses in the United States and other major markets appeared to be subdued compared to the previous year. This suggests that changing clinical practice continues to be a strong growth driver.”

GR Engineering Services Ltd (ASX: GNG)

The GR Engineering Services share price is up 5.5% to $5.50. This morning, this engineering services company won an engineering, procurement and construction (EPC) contract from Boab Metals Ltd (ASX: BML). This is in relation to the Sorby Hills Silver-Lead Project, which is located 50 km from Kununurra in Western Australia. The company estimates that the contract is worth $109 million.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is up 16% to $3.99. The catalyst for this has been the release of a trading update from the ecommerce company this morning. For the 10 months ended 30 April, Kogan reported total gross sales growth of 13.2% to $875.6 million and a 25.4% increase in group adjusted EBIT to $26.9 million. This was driven by a strong performance from the core Kogan business and a much-improved performance from the Mighty Ape business. It said: “The Company delivered a Group Adjusted EBITDA margin of 8.6%, towards the upper end of previously provided FY26 guidance, which includes the impact of the turnaround of Mighty Ape. This performance was driven by strong profitability within Kogan.com, which achieved Adjusted EBITDA margin of 11.5%, together with materially improved performance at Mighty Ape in the most recent four months to 30 April 2026.”

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is up almost 2% to $77.14. This may have been driven by a broker note out of Morgans. It has upgraded the Bunnings owner’s shares to an accumulate rating (from trim) with a slightly improved price target of $81.10 (from $80.50). It said: “WES’s share price has fallen 9% over the past 12 months and 7% over the past 6 months. The stock is now trading on a more reasonable 26.5x FY27F PE compared to a peak one-year forward multiple of ~37x in August 2025.”

The post Why Fisher & Paykel Healthcare, GR Engineering, Kogan, and Wesfarmers shares are pushing higher appeared first on The Motley Fool Australia.

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• With first half profits jumping to $1.6 billion, are Wesfarmers shares a buy today?
• Guess which ASX All Ords share is rocketing 20% on big news
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• 5 things to watch on the ASX 200 on Tuesday
• Buying Wesfarmers shares today? Here’s the dividend yield you’ll get

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

Commonwealth Bank of Australia (ASX: CBA) shares have softened 0.1% at the time of writing on Tuesday afternoon, to $164.43 a piece. 

For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.52% at the time of writing.

Despite today’s slightly lower price, CBA shares have now rebounded 7% from a 14% crash earlier this month. 

The drop came after the banking giant posted a disappointing third-quarter capital market update on the 13th of May, reporting flat operating income and a 1% decline in its unaudited cash NPAT. 

Investors were spooked by the results and rushed to sell up their shares, sending the share price tumbling in what was its biggest one-day fall on record.

But as quickly as the stock crashed, it started to rebound.

Why are CBA shares climbing higher again?

CBA shares have climbed steadily higher following the announcement, now recouping around 7% of losses that were shed.

There hasn’t been any price-sensitive news out of the banking giant since the update, so the rebound is likely sentiment-driven.

It looks like investors considered the sharp sell-off to be excessive. It’s also likely that after the panic selling eased, bargain-hunting investors started snapping up the shares for cheap.

Cooling concerns around mortgage, credit growth, and negative gearing changes also helped the bank’s share price rebound. 

The night before CBA released its trading update, Treasurer Jim Chalmers delivered the latest federal budget, where he outlined a structural change to negative gearing. He said that under the new rules, negative gearing would only apply to newly built homes, ending tax deductions for losses on existing residential investment properties. Investors initially reacted negatively.

CBA is a classic blue-chip stock

The banking giant is also supported by a flight to quality. In unstable markets, investors often rotate into large companies with stable dividends and dominant market positions to mitigate volatility. 

As a bank, CBA is mostly considered a cyclical stock, but it also has defensive assets. Australians will always need banking. From home loans to credit cards and even bank accounts. Banking is an essential service, rather than a discretionary spend.

It looks like CBA is the safe-haven stock of choice for investors right now.

Is CBA a buy, sell, or hold?

Analysts are mostly bearish on the outlook for CBA shares, with consensus of a downturn ahead. TradingView data shows that 14 out of 16 analysts have a sell or strong sell rating on the stock. 

The average target price is $127.57, which implies a 22% downside at the time of writing. But some think the share price could crash 45% to $90 in the next 12 months.

The post CBA shares rebound 7%: Is the banking giant a buy, sell or hold? appeared first on The Motley Fool Australia.

More reading

• Morgan Stanley tips 5% earnings downgrades for ASX 200 bank shares. Here’s why
• 4 reasons to buy CBA shares today
• Buy, hold, sell: Wesfarmers, Telstra, CBA shares
• Experts recommend CBA and these ASX shares as buys
• Why I think CBA shares are a blue-chip buy in June

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

The S&P/ASX 200 Index (ASX: XJO) is having a subdued session on Tuesday. In afternoon trade, the benchmark index is down 0.4% to 8,659.6 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

ASX Ltd (ASX: ASX)

The ASX share price is down 12% to $51.72. This follows the release of guidance for FY 2027 from the stock exchange operator this morning. ASX revealed that FY 2027 total expense growth is expected to be between 18% and 21%. It advised: “This is primarily driven by technology modernisation, the expanded Accelerate Program as part of our response to the ASIC Inquiry and investments to support customer-driven growth.” The company has also increased its capex guidance for FY 2027. It now expects capex of $180 million to $200 million (from $160 million to $180 million). It then expects capex of $170 million to $190 million in FY 2028.

Challenger Ltd (ASX: CGF)

The Challenger share price is down 5% to $8.88. This is despite the annuities company releasing its investor day update and speaking positively about its outlook. Challenger’s CEO, Nick Hamilton, said: “Our transformation of recent years has brought us to this moment as a simpler, more focused business. We’re building the bridge between the accumulation system and the retirement system through distribution partnerships, advice and product innovation, and customer education. We’re making guaranteed income accessible in ways it simply wasn’t before. I have never been more confident in our strategic position, or more excited for the opportunity that’s here.”

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is down over 3% to $9.95. The catalyst for this has been the release of a trading update from the travel agent this morning. Flight Centre advised that for the nine months to 31 March, it achieved a 7.6% year-on-year increase in total transaction value (TTV) to $19.5 billion. While this was solid, investors appear concerned with its performance since the end of March. Management advised that it has been “heavily impacted by Middle East tensions.” It estimates that it lost $10 million in profits in April because of the tensions due to increased refunds. Looking ahead, it warned: “May and June are typically stronger leisure trading months and ongoing volatility leading to cancellations, refunds and reduced forward bookings could be expected to have greater impact in those months.”

Goodman Group (ASX: GMG)

The Goodman share price is down 2% to $29.41. This morning, this industrial property company released its third-quarter update and revealed strong numbers. And while it is now expecting to at least achieve its operating earnings per share growth guidance in FY 2026, it seems that some investors were betting on a firmer guidance upgrade.

The post Why ASX, Challenger, Flight Centre, and Goodman shares are falling today appeared first on The Motley Fool Australia.

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• Why are Goodman shares tumbling 5% today?
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Motley Fool contributor James Mickleboro has positions in Goodman Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Challenger, Flight Centre Travel Group, and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is losing ground on Tuesday, with broad selling across the market and oil prices back in focus.

At the time of writing, the ASX 200 is down 0.48% to 8,650 points.

The benchmark index has fallen below its previous close of 8,692 points after touching an intraday low of 8,628.9 points. That marks its weakest level over the last 3 sessions.

The selling is fairly broad, with 9 of the 11 sectors in the red and 126 of the 200 stocks trading lower.

Property and financial stocks are doing much of the damage, while oil prices are adding another layer of uncertainty after a volatile few sessions.

Oil swings keep investors nervous

Oil prices are still doing a lot of the work in setting the tone for markets of late.

Earlier in the session, investors had been weighing the prospect of a possible US-Iran deal. Brent crude had dropped below US$95 a barrel as traders considered whether pressure around the Strait of Hormuz could ease.

But the relief didn’t last long.

Brent crude futures have bounced as much as 2.2% after recent US attacks on Iranian targets. US futures also trimmed part of their earlier gains, which added to the more cautious tone across the ASX.

The quick change in direction shows how sensitive markets remain to headlines out of the Middle East.

That has left investors dealing with another quick reversal in sentiment.

Property and financials drag on the index

Property stocks are doing some of the heavier work on the downside today, with Goodman Group Ltd (ASX: GMG) shares down around 2.46% to $29.31, despite the company reaffirming its earnings guidance.

The financial sector is also weighing on the ASX 200. Commonwealth Bank of Australia (ASX: CBA) shares are down 0.44% to $163.87, while Macquarie Group Ltd (ASX: MQG) is roughly flat at $240.20.

ASX Ltd (ASX: ASX) is one of the biggest drags, falling about 11.2% to $52.21 after its latest guidance pointed to another year of rapid expense growth.

Pexa Group Ltd (ASX: PXA) is also weaker, down around 6.3% to $10.76 after UBS cut its target price.

Some stocks are still finding buyers

Not every part of the market is being sold off today.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) is one of the stronger performers, with its shares up around 7.4% to $35.62 after a solid earnings update.

Kogan.com Ltd (ASX: KGN) is also jumping outside the ASX 200, with its shares up around 15% to $3.96 after reporting stronger earnings growth.

Those moves show investors are still willing to reward companies that give them a clearer reason to buy.

But they aren’t doing enough to change the direction of the wider market.

The ASX 200 is now down around 0.7% in 2026 and about 1.5% over the past month. It remains up around 3.5% over the past year, but today’s trading shows how uneven the recent momentum has become.

The post ASX 200 sinks as oil shock puts investors back on edge appeared first on The Motley Fool Australia.

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

Investors are still finding reasons to buy NRW Holdings Ltd (ASX: NWH) after a huge 12-month run.

The contractor’s shares are up 2.08% to $7.35 on Tuesday after the company announced a fresh batch of project wins.

It has already been a massive period for shareholders.

NRW shares have gained around 42% in 2026 and about 164% over the past year, putting the stock among the stronger performers on the ASX.

Here’s what was in the update.

Fredon locks in new work

According to the release, NRW’s wholly owned subsidiary Fredon has secured a suite of contracts across Victoria and Western Australia.

The contracts have a combined value of about $120 million.

Fredon provides electrical, communications, technology, and maintenance services across infrastructure, resources, commercial, and industrial markets.

The work is spread across several projects, rather than being tied to just one large contract.

It also spreads the risk and gives Fredon exposure to a mix of data centres, hospitals, student accommodation, and commercial infrastructure.

What the contracts cover

The biggest part of the update is tied to an existing data centre project in Leederville.

Fredon has secured an additional $9 million electrical package on the project, lifting its total contract value there to about $55 million. Completion is expected in August 2027.

The company has also won a $26 million electrical and communications package for the Bunbury Hospital redevelopment in Western Australia. NRW said the project will deliver one of the most modern hospital facilities in regional Australia, with work due to begin in April 2026.

Fredon has picked up a $16 million electrical, communications, ICT, and security package for a University of Western Australia project in Nedlands. Construction on the 14-storey development started in October 2025 and is scheduled to finish in June 2027.

It has also secured a $10 million electrical and security package at the 609 Wellington Street student accommodation project in Perth. The development will provide 835 student beds and is due to be completed in June 2027.

Why the work is getting noticed

NRW has long been known for its mining and civil infrastructure work, but Fredon adds another source of contract revenue.

Today’s update shows the group is also picking up work across areas outside traditional mining activity.

Hospitals, data centres, student accommodation, and commercial buildings all require large, complex electrical and technology packages.

Fredon CEO Scott Olsen said the awards reflect the business’ ability to deliver critical infrastructure projects in live operating environments across Australia.

NRW chief executive Jules Pemberton said the contracts highlight Fredon’s diversity and strength in regional communities.

After such a strong share price run, investors will still be watching whether NRW can keep adding work at attractive margins.

The stock now has a market cap of about $3.4 billion and trades on a high price-to-earnings ratio (P/E) of 70.

The post This ASX 200 stock is up 164% in a year and still winning work appeared first on The Motley Fool Australia.

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

S&P/ASX 200 Index (ASX: XJO) shares are down 0.7%, and the bank shares are underperforming on Tuesday.

At the time of writing, the Commonwealth Bank of Australia (ASX: CBA) share price is $162.99, down 1% today.

The National Australia Bank Ltd (ASX: NAB) share price is $37.54, down 1.9%.  

ANZ Group Holdings Ltd (ASX: ANZ) shares are $35.37 apiece, down 1.1%.

Westpac Banking Corp (ASX: WBC) shares are also 1.1% lower at $36.38.

Macquarie Group Ltd (ASX: MQG) shares are down 1.5% at $233.95.

Today, the world is waiting for further news on an impending US-Iran deal that would reopen the Strait of Hormuz.

Oil prices have dropped significantly in anticipation of the key shipping channel reopening after nearly three months of effective closure.

The Brent Crude oil price is currently US$97.72 per barrel, down 12% in a week.

Regardless of when the war ends, economists say the full economic effect of the oil shock is yet to play out.

The question is not whether the impact will be bad, but rather, how bad.

The Australian Bureau of Statistics reported today that 72% of Australian businesses are under pressure due to higher fuel costs.

Higher petrol and diesel prices, along with three interest rate rises this year, have contributed to a multi-year low in consumer sentiment.

Rates have gone up due to resurgent inflation. That started before the war began, and it’s now been exacerbated by higher fuel prices.

We’ve also just seen the first sign of a weakening jobs market. Unemployment rose to 4.5% in April amid 18,600 job losses.

On top of all that, proposed changes to capital gains tax (CGT) are worrying businesses and investors in shares and property.

Top broker predicts impact of CGT tax changes

In a new note, analysts from top broker Morgan Stanley said softer mortgage growth and margin headwinds stemming from the proposed CGT changes could result in FY27 earnings downgrades of about 5% for the major ASX 200 bank shares.

This is because the banks are highly exposed to the residential housing market, which is already weakening due to higher interest rates.

The analysts said a deterioration in housing market sentiment would raise the probability of lower valuation multiples for bank stocks.

Concern about the impact of CGT changes was partly behind a 10% daily drop for CBA shares earlier this month.

That was the biggest one-day fall for CBA shares ever.

It followed the bank’s 3Q FY26 update, which was released the morning after the Federal Budget.

CBA reported an unaudited cash net profit after tax (NPAT) of $2.7 billion, down 1% on the quarterly average for 1H FY26.

Investors also noticed the $200 million increase to bad debt provisions, which CBA attributed to higher geopolitical and economic risks.

Will ASX 200 bank shares fall?

ASX 200 bank share price movements are often seen as a barometer of investor confidence in the economy.

And right now, the economy isn’t looking great.

Consumer confidence is near pandemic lows; higher inflation and interest rates are expected; we have entrenched low productivity growth; the first signal of a weakening jobs market; and the impending long-tail impact of the global oil shock and changes to CGT tax on top.

Additionally, when any ASX stock trades on a stretched valuation, it’s natural to assume that mean reversion will occur at some point.

ASX 200 bank shares have been on the up since November 2023. The big five have all reset their record highs over the past year.

The following chart showing percentage changes in ASX 200 bank share prices since November 2023 paints a picture.

Portfolio manager Suhas Nayak from contrarian fund manager Allan Gray says the major ASX 200 banks are trading at rich levels today.

Four of the major five are trading on a price-to-earnings (P/E) ratio of 18 times to 19 times, compared to the historical average of 12 times.

And CBA shares are out on their own at 26.7 times.

Nayak told The Australian that this presents a risk for share prices:

It just exposes you to valuation risks across those particular companies that have done particularly well.

What about bank dividends?

An additional factor that may increasingly weigh on ASX 200 bank shares is their declining dividend yields.

As ASX 200 bank share prices have stormed higher, earnings have not kept pace, so dividend yields have reduced.

This makes ASX 200 bank shares less attractive to investors focused on passive income. (Find out current bank dividend yields here).

Nayak said:

The total returns from here look not as appealing as many other parts of the market.

Morgan Stanley has a sell rating on CBA, Westpac, and NAB shares today.

The broker gives a buy rating to ANZ and Macquarie shares.

The post Morgan Stanley tips 5% earnings downgrades for ASX 200 bank shares. Here’s why appeared first on The Motley Fool Australia.

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

Flight Centre Travel Group Ltd (ASX: FLT), Goodman Group (ASX: GMG) and Mineral Resources Ltd (ASX: MIN) shares are turning heads today.

But not for their outperformance.

During the Tuesday lunch hour, only one of the three big-name ASX stocks is edging above the 0.5% losses posted by the S&P/ASX 200 Index (ASX: XJO), with the other two taking a steeper tumble.

Here’s what’s grabbing investor interest.

Mineral Resources shares growing their lithium footprint

In earlier trade, shares in the ASX 200 lithium miner and diversified resources producer were up as much as 2% at $72.94 apiece, marking a two-year high.

But, potentially impacted by intraday concerns over renewed conflict in the Middle East, Mineral Resources shares are down 0.2% at the time of writing, trading for $71.39 apiece.

The mining giant is creating a buzz today after announcing that, together with JV partner Jiangxi Ganfeng Lithium, it has made the final investment decision (FID) to build a flotation plant at its Mt Marion lithium project, located in Western Australia. The FID also greenlights the development of underground mining at the project.

The JV partners will spend around $490 million on the combined works across FY 2027 and FY 2028.

Commenting on the decision that’s intended to support Mineral Resource shares over the longer term, managing director Chris Ellison said:

This high-return brownfield investment sets up Mt Marion for decades to come. Underground mining and flotation will work together to access deeper high-grade ore, lift recoveries and produce a single 5% product.

Flight Centre shares sink on Middle East travel impacts

Flight Centre shares are down 3.6% at the time of writing, changing hands for $9.91 each.

This follows a trading update from the ASX 200 travel stock, delivered during its annual Investor Day.

Investors look to favouring their sell buttons after Flight Centre noted that after a strong first three quarters of FY 2026, its fourth quarter performance has been “heavily impacted by Middle East tensions”.

Flight Centre expects to record a $10 million reduction in its expected April profits amid rising refunds and other headwinds from the ongoing Iran war.

The company’s leisure business has been hardest hit, with Flight Centre warning that May and June may take an even steeper hit on the company’s bottom line, noting that May and June are typically stronger leisure trading months.

Which brings us to…

Goodman shares repositioning for AI data centre growth

Joining Flight Centre and Mineral Resources shares in the headlines today, Goodman shares are down 2.5%, trading for $29.30 apiece.

This follows the release of the ASX 200 integrated property group’s third-quarter update.

Goodman shares are slipping despite the company reporting a stable total portfolio value of $87.1 billion. And on the growth front, as at 31 March, Goodman has $14.5 billion of work in progress across its development projects.

Over the past four quarters, Goodman has leased 3.3 million square metres, bringing in $491 million in annual rental income.

Commenting on the company’s shifting focus, most notably impacted by the surging demand for AI-enabled data centres, Goodman Group CEO Greg Goodman said:

The group has progressively repositioned its portfolio toward large, infrastructure-scale industrial assets and data centres…

Hyperscale capex is accelerating, with our metropolitan portfolio positioned at the centre of cloud and AI demand, and the shift towards low-latency dependant AI inferencing.

The post Why Flight Centre, Goodman and Mineral Resources shares are creating a buzz on Tuesday appeared first on The Motley Fool Australia.

More reading

• Why ASX, Challenger, Flight Centre, and Goodman shares are falling today
• Mineral Resources shares hit two-year high on big lithium news
• Down 32% this year, why are Flight Centre shares sinking again today?
• Why are Goodman shares tumbling 5% today?
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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 Goodman Group. The Motley Fool Australia has recommended Flight Centre Travel Group and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Qantas Airways Ltd (ASX: QAN) and Virgin Australia Holdings Ltd (ASX: VGN) shares have jumped higher over the past week as investors redirect their attention to ASX airline stocks.

At the time of writing, on Tuesday lunchtime trade, Qantas shares have slumped 0.11% to $9.17. Over the past week, the flying kangaroo’s shares have climbed 7.8% higher, recouping losses made in March. Qantas shares are now down 12% year to date.

Meanwhile, Virgin Australia shares have tumbled 2.7% in Tuesday lunchtime trade, to $2.53 a piece. Despite today’s drop, the ASX airline shares are still 7.7% higher than a week ago. For the year to date, Virgin Australia shares are down 27%.

Both ASX airline stocks crashed in March: Here’s why

The two aviation companies have faced significant headwinds so far in 2026 as conflict in the Middle East and rising fuel prices put airlines under pressure.

The largest operating cost for airlines is its jet fuel, which is refined from crude oil. Given Australia imports more than 90% of its refined fuel, its local prices track global oil prices and currency movements. 

That means that when oil prices rise due to tight supply or geopolitical tensions, jet fuel prices also rise. This then means that airlines, such as Qantas and Virgin Australia, face higher operating costs, which can pressure profits and potentially weigh on their share prices.

Both airlines previously raised domestic airfares and reduced routes in response to rising jet fuel costs in order to maintain, or even boost, revenue. But investors were still concerned about the airline’s operating costs and profits, and many have turned their backs on the travel companies over the past few months.

Why have Qantas and Virgin Australia shares turned around over the past week?

It looks like investors are slowly rotating back into airlines and travel companies after fears around Middle East fuel disruptions have started to ease. 

According to Trading Economics data, WTI crude oil prices started tumbling late last week and now sit around US$91 per barrel. Oil prices plunged by more than 6% on Monday alone amid rising optimism about a potential US-Iran agreement to end the conflict and reopen the Strait of Hormuz. 

Easing fuel costs and supply concerns are great news for airline companies.

Meanwhile, although international travel demand has softened thanks to geopolitical tensions and cost-of-living pressures, domestic travel has continued to remain resilient. 

Why are they tumbling again today?

There isn’t any price-sensitive news out of Qantas or Virgin Australia today to explain the latest price dip, and the oil price has remained stable after the latest dip.

It’s likely that today’s downward pressure is sentiment-driven, or that investors are taking gains off the table after the recent price spike.

What’s next for Virgin Australia’s shares?

The outlook for Virgin Australia shares is incredibly bullish. Analyst consensus is that the stock is a buy and they tip an upside of up to 64% to $4.15 over the next 12 months. 

What’s next for Qantas shares?

It looks like Qantas shares could storm higher too, although at a slightly lower rate. The majority of analysts (13 out of 14) have a buy or strong buy rating on the airline stock. They also expect the shares to fly another 40% to $12.80 over the next 12 months, at the time of writing.

The post Virgin Australia, Qantas shares jump 8% higher this week. Are the ASX airline stocks a buy, sell or hold? appeared first on The Motley Fool Australia.

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

I firmly believe some of the best long-term buying opportunities can appear when investors are still feeling unsure.

But I am not looking for perfect conditions. I am looking for strong businesses where the market’s confidence has weakened, but the long-term opportunity still looks attractive.

Three ASX shares I think fit that idea are named in this article.

CSL Ltd (ASX: CSL)

CSL has been a difficult share to own in recent years and is down 60% over the past 12 months.

For a long time, it was treated as one of the ASX’s simplest long-term compounders. The business had a strong record, global scale, and exposure to healthcare markets that could grow over time.

That story has become more complicated. The market has lost confidence, the outlook has been challenged, and investors are no longer willing to give CSL the same benefit of the doubt.

I think that is why the stock is worth watching. CSL is still a global healthcare business with leading positions across plasma therapies, vaccines, and specialist medicines. Its problems do not look like the end of the company’s competitive position to me. They look more like a difficult period where margins, growth expectations, and investor trust all need to be rebuilt.

That rebuild may take years, so I do not think investors should expect a quick turnaround.

But I like the risk/reward more now than I did when expectations were much higher. The dividend yield has also become more appealing, which can help patient investors wait while management works through the next stage of the business.

REA Group Ltd (ASX: REA)

REA Group is another ASX share I would be happy to buy during a period of weaker sentiment. Its shares are down over 40% from their high.

The company owns Australia’s dominant digital property platform, realestate.com.au. That is a very valuable position.

Property buyers want to go where the listings are. Agents want to advertise where the buyers are. Sellers want their homes seen by the largest possible audience. That creates a powerful network effect.

I think REA has several ways to keep growing over time. Premium listings can become more valuable, agents can use more data and digital tools, and consumers can be served across more parts of the property journey.

The business can also benefit from artificial intelligence over time. Better search, more useful property insights, improved valuation tools, and smarter agent products could all make the platform more valuable.

Netwealth Group Ltd (ASX: NWL)

Down over 40% from its high, Netwealth is one of my preferred wealth platform shares.

The business benefits from a long-term change in financial advice. Advisers need better technology, more efficient administration, managed accounts, portfolio reporting, and tools that help them serve clients at scale.

Netwealth has built a strong reputation with advisers, and that can be hard to replicate.

What I like most is the scalability of the model. Once funds are on the platform, additional growth can support margins over time, provided the business continues to invest wisely and maintains service quality.

Competition is the risk. Hub24 Ltd (ASX: HUB), large institutions, and other platforms are all fighting for adviser flows. Valuation can also be demanding when the market is excited about platform growth.

But I think Netwealth remains a high-quality business in a sector with strong long-term tailwinds.

Foolish Takeaway

Market caution can be frustrating, but it can also be useful.

It gives investors time to look beyond the next result and ask a better question: Which businesses could still be stronger in five or 10 years?

I do not think any of these ASX shares will be smooth performers. But I like buying quality when the market is still debating the outlook. That is often where patient investors can find their edge.

The post Down 40%+! I’d buy CSL and these ASX shares while investors are still cautious appeared first on The Motley Fool Australia.

More reading

• Why I’d buy DroneShield, CSL, and WiseTech shares right now
• Under $100, are CSL shares finally too cheap to ignore?
• Down 40%: Investing $1,000 into these ASX 200 shares could be a smart move
• Here are the latest growth forecasts for the CSL share price
• I’d listen to Warren Buffett and load up on cheap ASX shares

Motley Fool contributor Grace Alvino has positions in CSL and Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Hub24, and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended CSL and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Picking individual global shares can be difficult.

There are thousands of companies to choose from, and many Australian investors may not have the time or interest to closely follow overseas businesses.

That is where exchange-traded funds (ETFs) can help.

One ASX ETF I think could be a simple way to own a portfolio of high-quality global shares is named in this article.

VanEck MSCI International Quality ETF (ASX: QUAL)

The VanEck MSCI International Quality ETF is one of my preferred ASX ETFs for global exposure.

This fund does not simply buy the biggest companies in the world. It focuses on businesses with quality characteristics, including strong returns on equity, earnings stability, and lower financial leverage.

I like that approach because not every large company is a great business.

Some businesses are highly cyclical. Others rely too heavily on debt. Some have inconsistent earnings or operate in sectors where returns can move around sharply.

A quality filter helps narrow the field. The QUAL ETF gives investors exposure to global companies that have already proven they can generate attractive financial results.

Its holdings currently include world-class names such as Nvidia, Apple, and Microsoft.

But I do not just like the fund because of the famous names.

I like it because it gives investors a rules-based way to own global companies with strong financial traits without needing to decide which one will win next. That is useful because even great businesses can go through periods of weaker performance.

For Australian investors, this ASX ETF can also help balance a portfolio.

The ASX is heavily exposed to banks, miners, supermarkets, infrastructure, and property. Those sectors can be good, but they do not give investors the same access to global technology, healthcare, software, consumer brands, and industrial leaders.

The QUAL ETF can fill some of that gap.

The management fee is higher than that of a basic index ETF, so investors need to be comfortable paying more for the quality screen. There is also no guarantee that quality shares will outperform every year.

In some markets, cheaper cyclical shares or more speculative growth stocks may do better.

But over the long term, I think owning financially strong global businesses is a sensible strategy. Companies with durable profitability and resilient earnings can be very powerful compounders when given enough time.

Foolish Takeaway

I think investing globally is a great thing for a portfolio.

The hard part is building a portfolio that can survive different market conditions and still compound over time.

That is why I like the QUAL ETF. It is not trying to be the flashiest ETF on the ASX. It is trying to give investors access to global quality in a disciplined way.

For a long-term portfolio, I think that can be a very useful building block.

The post Could this ASX ETF be the easiest way to invest in global quality? appeared first on The Motley Fool Australia.

More reading

• 2 ETFs that could be buys today for any ASX share portfolio
• 5 excellent ASX ETFs to buy and hold for 25 years
• How to become a millionaire on a $60,000 salary
• Is it time for investors to turn back to defensive ASX shares?

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 Apple, Microsoft, and Nvidia. The Motley Fool Australia has recommended Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.