Santos Ltd (ASX: STO) shares have had a rough run. The ASX energy heavyweight is trading 22% lower over 6 months, even as it throws off a dividend yield of 6%.

For income hunters, that combination looks tempting. But does it signal a genuine buying opportunity, or just reflect the risks baked into the oil and gas cycle?

Why the share price has fallen

Santos shares have been caught in a perfect storm of softer oil and LNG prices. Investors are also nervous around large project spending, and the takeover speculation that once supported the share price has also faded.

As energy markets cooled, so did enthusiasm for the sector, dragging Santos stock lower despite its scale and cash-generating assets.

The bull case

At its core, Santos is a high-quality energy producer with long-life assets across Australia, Papua New Guinea, Timor-Leste, and the US. LNG remains the backbone of earnings, underpinned by long-term contracts that provide some insulation from short-term price swings.

The next few years could be pivotal for Santos shares. Major growth projects, including Barossa LNG and the Pikka oil project in Alaska, are nearing first production.

Once operational, they’re expected to lift output and free cash flow materially. If execution goes to plan, Santos should look like a very different business in the next few years compared with today.

More disciplined dividends

The dividend coming with Santos shares is another key attraction. Santos has shifted towards a clearer capital return framework, aiming to pay out a substantial share of free cash flow to shareholders.

At current prices, the yield of 5.96% is well above the broader market, making Santos shares appealing to income-focused investors willing to tolerate volatility. However, Santos’ dividend history hasn’t been perfectly smooth. Payouts have been cut in weaker cycles and lifted again when cash flows recovered.

The current policy is more disciplined, linking dividends directly to free cash flow rather than stretching the balance sheet. That makes today’s yield enticing but not guaranteed.

The risks to watch

Oil and gas prices remain the biggest swing factor. A sustained downturn in global energy markets would pressure earnings and could limit the company’s ability to maintain current dividends.

Santos is also capital-intensive. Big projects bring big rewards, but delays or cost blowouts would hurt confidence and valuation.

There’s also the long-term structural risk. As the world transitions toward cleaner energy, fossil fuel producers face increasing regulatory, political, and ESG pressure. That doesn’t make Santos shares totally unattractive, but it does cap how generously the market may value its earnings.

So, are Santos shares a buy?

If energy prices stabilise and new projects deliver as expected, Santos shares could offer a mix of solid income and meaningful share price upside from current levels.

Brokers buy into Santos’ income and growth proposition. TradingView data shows that most analysts see the $20 billion energy stock as a buy. They set the average 12-month price target at $7.33, a 20% upside at the current share price of $6.12.

The post Down 22% with 6% yield: Are Santos shares a serious buy? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• Is the Santos share price too cheap to ignore?
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday

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 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 Lynas Rare Earths Ltd (ASX: LYC) share price is in focus after the company reported quarterly gross sales revenue of $201.9 million, up 43% on the prior corresponding period, and an average selling price of $85.60/kg, reflecting firmer market conditions.

What did Lynas Rare Earths report?

• Gross sales revenue of $201.9 million for Q2 FY26, compared to $200.2 million in the prior quarter
• Sales receipts of $185.0 million, up from $171.3 million in Q1 FY26
• Closing cash and short term deposits of $1,030.9 million
• Total rare earth oxide (REO) production at 2,382 tonnes, with NdPr production at 1,404 tonnes
• Cash payments for capital expenditure, exploration, and development totalled $45.2 million
• Average selling price increased to $85.60/kg across all rare earth products

What else do investors need to know?

Lynas completed major kiln maintenance at its Malaysia facility in December, with operations safely restarting in January 2026. Power supply disruptions at the Kalgoorlie plant reduced production in the quarter, but electricity supply has now stabilised.

The company made good progress on its growth projects, with commissioning of the Mt Weld expansion project completed and its new flotation circuit ramping up. December saw 92% of Mt Weld’s electricity needs met by renewable energy, exceeding targets.

Lynas also began work on expanding heavy rare earth (HRE) separation at its Malaysia operation. The first production of Samarium is forecast for Q4 FY26, and detailed engineering of the full facility is underway.

What did Lynas Rare Earths management say?

CEO and Managing Director Amanda Lacaze said:

As shareholders will be aware from the announcement released on 13 January 2026, I have advised the Board of my intention to retire from my position as CEO and Managing Director at the end of the current financial year. I have been privileged to lead this company for the past 12 years and believe this is the right time to make the transition. I remain fully committed to my role, to continuing to deliver value for shareholders, and working to ensure a smooth transition.

What’s next for Lynas Rare Earths?

Looking ahead, Lynas aims to optimise production and recoveries at its Mt Weld facility and advance its heavy rare earth separation projects in Malaysia and the United States. The company continues to develop new supply chain partnerships, particularly outside China, as part of its 2030 growth strategy.

With CEO Amanda Lacaze retiring at the end of the financial year, the board has launched a search process for her successor. Lynas is focused on ensuring a smooth leadership transition and maintaining its position as a leading supplier of rare earths.

Lynas Rare Earths share price snapshot

Over the past 12 months, Lynas Rare Earths shares have risen 122%, significantly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Lynas Rare Earths reports 43% sales growth, CEO to retire appeared first on The Motley Fool Australia.

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• Paladin Energy lifts uranium output and sales in December quarter
• Evolution Mining posts record cash flow in December quarter
• Rio Tinto posts strong 2025 Q4 production results
• Meridian Energy reports record hydro inflows and rising customer growth

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Austal Ltd (ASX: ASB) has been a booming ASX defence stock over the last 12 months. 

Its share price has soared more than 148% in the last year. 

However, shares fell 5.85% yesterday despite no price-sensitive news from the company. 

This marks a significant drop after a red-hot start to the year. 

Is it an opportunity for new investors to buy the dip?

Let’s find out. 

Defence stocks still booming

ASX defence stocks have been amongst the best-performing themes in the last 12 months. 

Investors have undoubtedly noticed the unbelievable stock price rise for Droneshield Ltd (ASX: DRO). 

This defence stock is up more than 600% in the last 12 months. 

But it isn’t alone. 

Other defence stocks that have enjoyed big gains in the last year include: 

• Electro Optic Systems Holdings Ltd (ASX: EOS) is up 794.17%
• Elsight Ltd (ASX: ELS) is up 1,163.64% 
• Vaneck Global Defence ETF (ASX: DFND) is up 79.80%
• Betashares Global Defence ETF (ASX: ARMR) is up 62.66%

These defence stocks and funds have all risen amidst global political tension and conflict. 

This has increased government investment, funding, and development of technology such as drones, AI, or electronic warfare.

Where does Austal fit into this puzzle?

Austal is an Australian-based shipbuilder that specialises in the design, construction, and support of defence and commercial vessels globally.

Austal’s products include naval vessels, defence surface warfare combatants, high-speed support vessels, law enforcement patrol boats, offshore vessels, and passenger and vehicle ferries.

It has enjoyed a red-hot 12 months, amidst the same tailwinds pushing other defence stocks higher. 

Recently, it has signed key contracts which have bolstered investor confidence and long-term outlook. 

Is it still a buy?

Despite yesterday’s sell-off, these ASX defence shares are still 18% higher year to date. 

The share price closed yesterday at $8.05. 

Based on ratings from analysts, it appears it is now priced close to fair value. 

Late last year, Macquarie had a price target of $8.10 on Austal shares. 

Meanwhile, TradingView has an average analyst target of $7.84. 

The current share price would indicate it is hovering close to fair value. 

However, for prospective investors, it is worth considering recent geopolitical events and their impact on defence shares. 

US tensions involving Greenland (Arctic security, NATO posture) and Venezuela (energy security and regional stability) could influence global defence spending and allied procurement priorities. 

These could impact defence companies through higher demand for surveillance, maritime, aerospace, and sustainment capabilities aligned with US and allied programs.

The post This sizzling ASX defence stock just fell 6% – Time to buy the dip? appeared first on The Motley Fool Australia.

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• These ASX 200 stocks are already up 20-30% in 2026! Are they a must buy?
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Aussie defence stocks tick higher on bullish Trump comments

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 DroneShield, Electro Optic Systems, and 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.

The Evolution Mining Ltd (ASX: EVN) share price is in the spotlight after the gold and copper producer posted a record group operating mine cash flow of $1.1 billion for the December 2025 quarter, and an underlying group cash flow of $541 million, both well ahead of the previous period.

What did Evolution Mining report?

• Record operating mine cash flow of $1.1 billion, up 57% on the prior quarter
• Group net mine cash flow hit $727 million, an increase of around 100%
• December quarter gold production of 191,000 ounces and 18,000 tonnes of copper
• All-in Sustaining Cost (AISC) of $1,275 per ounce – sector leading for the quarter
• Cash balance finished at $967 million, with gearing improved to 6%
• No significant debt repayments due until November 2028

What else do investors need to know?

Evolution Mining reported another quarter of stable safety performance and continued to track in line with group production and cost guidance. Mungari operations delivered record quarterly production of 50,000 ounces, with the expanded plant now fully commissioned and set for ongoing growth.

At Ernest Henry, heavy rainfall temporarily suspended mining, but all staff were safely evacuated, and short-term operational impacts are expected. The company has also been proactive, consolidating exploration ground near Ernest Henry to support long-term growth.

What did Evolution Mining management say?

Managing Director and CEO Lawrie Conway said:

Evolution delivered another consistent quarter representing eight consecutive quarters of delivery to plan. Delivering to plan in a rising metal price environment with minimal hedging has generated record cash flow and sector-leading cost performance. Our teams continue to safely demonstrate operational discipline while also successfully progressing key growth projects. Mungari’s expanded plant and new mining hub is fully commissioned and already generating strong return on investment via record high cash flows. We continue to bank the benefits of higher metal prices, which is ultimately delivering value for shareholders.

What’s next for Evolution Mining?

Evolution has reaffirmed its FY26 production guidance of 710,000–780,000 ounces of gold and 70,000–80,000 tonnes of copper, with group AISC now improved by 6% to between $1,640 and $1,760 per ounce. Group copper production is forecast toward the lower end of the range following the weather event at Ernest Henry.

Key project studies at Cowal, Ernest Henry and Northparkes are due for Board review next quarter. Evolution’s sights remain firmly set on growing production at a lower cost while investing in exploration and asset expansion.

Evolution Mining share price snapshot

Over the past 12 months, Evolution Mining shares have risen 139%, strongly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Evolution Mining posts record cash flow in December quarter appeared first on The Motley Fool Australia.

More reading

• Vault Minerals delivers strong gold production and cash flow in December quarter
• Paladin Energy lifts uranium output and sales in December quarter
• Lynas Rare Earths reports 43% sales growth, CEO to retire
• Rio Tinto posts strong 2025 Q4 production results
• Meridian Energy reports record hydro inflows and rising customer growth

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Rio Tinto Ltd (ASX: RIO) share price was in focus today as the company reported standout 2025 fourth quarter results, including an 8% increase in copper-equivalent (CuEq) production for the year and record shipments from its Pilbara iron ore operations.

What did Rio Tinto report?

• Full-year copper-equivalent production up 8% year-on-year
• Pilbara iron ore production hit 327.3 million tonnes, steady year-on-year, with Q4 up 4% to 89.7 million tonnes
• Iron ore shipments reached a record 326.2 million tonnes for the year; up 7% for Q4
• Copper production surged 11% to 883,000 tonnes, topping guidance
• Bauxite production set a record at 62.4 million tonnes, up 6%
• Record quarterly lithium output, and aluminium production rose 3% to 3.38 million tonnes

What else do investors need to know?

Rio Tinto’s operational results reflected strong recovery from earlier weather issues and highlighted expansion milestones, such as first exports from the Simandou iron ore project in Guinea. The company delivered project ramp-ups across copper, bauxite, and lithium, underpinned by ongoing improvements in operational efficiency.

Expenditure on exploration and evaluation dropped to US$795 million, primarily as more costs were capitalised relating to the Rincon lithium project. Management reaffirmed production guidance for 2026, keeping targets in line with strategic plans outlined at the company’s recent Capital Markets Day.

What did Rio Tinto management say?

Chief Executive Simon Trott said:

Our operations delivered exceptional production performance, both on a quarter-on-quarter and full year basis, as we leverage our strong foundation of operating excellence and project delivery across our portfolio.

What’s next for Rio Tinto?

The group expects 2026 production guidance to remain unchanged, with ongoing project ramp-ups in Pilbara iron ore, Simandou, Oyu Tolgoi copper, and lithium capacity in Argentina. Several brownfield expansions and greenfield studies are underway, including feasibility at the Rhodes Ridge iron ore project and advanced work on multiple battery minerals assets.

Capital plans reflect continued focus on portfolio growth and operational improvements, including cost discipline and investment in critical minerals for the global energy transition. Rio Tinto’s leadership notes ongoing strategic reviews in some business units, aiming to unlock further value in coming years.

Rio Tinto share price snapshot

Over the past 12 months, Rio Tinto shares have risen 21%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Rio Tinto posts strong 2025 Q4 production results appeared first on The Motley Fool Australia.

More reading

• Vault Minerals delivers strong gold production and cash flow in December quarter
• Paladin Energy lifts uranium output and sales in December quarter
• Lynas Rare Earths reports 43% sales growth, CEO to retire
• Evolution Mining posts record cash flow in December quarter
• Meridian Energy reports record hydro inflows and rising customer growth

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

When people talk about ASX growth shares, the focus often falls on the same familiar names. 

That makes sense. Quality businesses tend to attract attention. But it also means some companies with genuine earnings potential get overlooked, especially if they operate in less glamorous niches or have gone through periods of volatility.

These are three ASX growth shares that I believe are underappreciated today, not because they lack quality, but because their earnings power is not always obvious at first glance. Here’s why I would invest $1,000 in them.

Catapult Sports Ltd (ASX: CAT)

Catapult is a company I think many investors still underestimate.

It operates in elite sports performance technology, providing wearable devices and analytics software used by professional teams around the world. Once a team embeds Catapult’s technology into its training and performance systems, switching providers is not easy. That creates customer stickiness that is easy to overlook if you only focus on short-term results.

What gives Catapult real earnings power, in my view, is the combination of recurring software revenue and operating leverage. The company has already invested heavily in product development and global distribution. As revenue continues to grow, particularly from subscriptions, incremental margins should improve.

Catapult is not without risk, and its share price has reflected that over time. But as its top line growth and cash flow improves, I think the market may start paying more attention to the underlying economics of the business rather than just its history.

Sigma Healthcare Ltd (ASX: SIG)

Sigma is a company that looks very different today than it did a few years ago.

Following its merger with Chemist Warehouse, Sigma has become a vertically integrated healthcare group with scale across wholesale distribution, franchising, and retail pharmacy. That scale matters. It provides purchasing power, operational efficiencies, and a more defensible competitive position.

Healthcare demand is structural rather than cyclical. People need access to medicines and pharmacy services regardless of economic conditions. This gives Sigma a level of earnings resilience that is often underappreciated by the market.

The Chemist Warehouse integration process does carry execution risks, and I would not pretend otherwise. But if management delivers on integration benefits and cost synergies, Sigma’s earnings profile could look very different over the next few years. That potential upside is not something I think is fully reflected in current sentiment.

Hub24 Ltd (ASX: HUB)

Hub24 is one of my preferred ways to gain exposure to the structural growth of Australia’s wealth management industry.

The shift toward platform-based investing, transparency, and adviser-led solutions continues to benefit Hub24 and underpin funds under administration growth.

What I like about Hub24’s earnings power is how clean the model is. Revenue scales with platform usage, costs are relatively controlled, and the business benefits from long-term industry trends rather than short-term market sentiment.

Hub24 shares are not cheap on traditional valuation metrics, which may be why some investors hesitate. But I think that misses the point. Businesses that consistently grow earnings at attractive rates and generate high returns on capital rarely look cheap. For me, Hub24’s ability to convert growth into profits is what makes it stand out.

The common thread

What links Catapult, Hub24, and Sigma is not hype or short-term momentum. It is the presence of real earnings power that can become more visible over time.

Each operates in a market with structural tailwinds. Each has a business model that can scale. And each, in my opinion, is still not fully appreciated for what it could earn if execution remains solid.

The post 3 underappreciated ASX growth shares I would buy with $1,000 appeared first on The Motley Fool Australia.

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

Investing in ASX ETFs gives investors a great opportunity for diversification in a single trade. 

Of course, knowing what you are investing in is vital when making your decision. 

However an often overlooked aspect of ASX ETF investing is the cost of management fees. 

What are ASX ETF management fees?

ASX ETF management fees are the ongoing costs charged by the fund provider to operate and manage the exchange-traded fund. 

These fees help cover expenses like portfolio management, administration, index licensing, custody, and regulatory compliance. 

Management fees are usually expressed as a percentage per annum (% p.a.) of the total value of your investment.

Rather than being charged directly to investors, the fee is automatically deducted from the ETF’s assets on an ongoing basis, meaning it is reflected in the ETF’s unit price and overall returns over time.

It is also important to recognise that different funds have different fees based on how complex the fund is to run. 

Actively managed and specialised funds tend to be more expensive due to research, trading, and management costs, while passive index funds are usually cheaper. 

Fees can also be higher for funds with international exposure, currency hedging, or less liquid assets. In contrast, large, broad-market funds often have lower fees because their costs are spread across more investors.

Does the management fee really matter?

When you compare funds, you might see management costs ranging from 0.05% p.a. to even 1% p.a. 

While 1% might not sound like a lot, even a tiny difference in management fees can add up over the long-term, especially with large investments. 

The Motley Fool’s Sebastian Bowen covered this in great detail last year. 

His research shows an ASX ETF that is 0.05% cheaper can save you almost $6,000 over a 20-year period. 

With that in mind, here are some options for investors seeking low-fee ASX ETFs that have also brought strong returns. 

Vanguard Us Total Market Shares Index ETF (ASX: VTS)

This fund is the cheapest fund I could find in terms of management fees p.a.

Its management fee sits at just 0.03% p.a. 

The fund provides exposure to some of the world’s largest companies listed in the United States.

Alongside this low ongoing cost, it has risen by 93.89% in the last 5 years. 

iShares S&P 500 ETF (ASX: IVV)

Put simply, this fund aims to provide investors with the performance of the S&P 500 Index. 

The fund has risen by 104.83% in the last 5 years. 

Alongside this growth, it has a very low cost fee of 0.04% p.a. 

Vanguard FTSE All-World ex-US ETF (ASX: VEU)

This ETF provides exposure to many of the world’s largest companies listed in major developed and emerging countries outside the US.

It has a management fee of 0.04% p.a and has risen by 43% in the last 5 years. 

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This is Australia’s second largest ETF by market capitalisation.

It has a management fee of 0.18% p.a. 

The fund includes around 1,300 companies from developed countries, excluding Australia.

It has risen by almost 80% in the last 5 years. 

The post ASX ETFs with big gains and low fees appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Aaron Bell has positions in Vanguard Msci Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF and iShares S&P 500 ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Hub24 Ltd (ASX: HUB) shares avoided the broad market weakness on Tuesday and charged higher.

The ASX 200 stock was up almost 9% at one stage before finishing the day 3% higher at $101.21.

Investors were buying the investment platform provider’s shares after responding positively to the release of its latest quarterly update.

Can this ASX 200 stock keep rising in 2026?

Bell Potter was impressed with the company’s performance during the second quarter and remains positive on the investment opportunity here.

In response to its update, the broker said:

HUB released a solid 2Q26 update, printing the highest quarterly inflow on record, and provided similar positive comments around the pipeline. Our channel checks indicate it continues to rank first for future flow intentions.

Net inflows of $5.6bn exceeded consensus expectations of $4.7bn, reflecting solid gross inflows of $9.3bn and low outflow leakage, in what we consider to be an important quarter. Flow growth ex-transitions continue to accelerate.

Bell Potter is feeling positive on the ASX 200 tech stock’s outlook, highlighting that key revenue drivers remain constructive. It adds:

Revenue drivers remain constructive, with ASX trading activity up +44% and our average FUA landing +32% 1H26 (versus +33% 1H25). We are also constructive on equity markets with average month-to-date returns of +2.0%, supportive US macro environment and a commodities boom risking some guidance parameters.

It also highlights that new features look set to strengthen its offering in the near term. Bell Potter said:

There were new features outlined that deliver further efficiencies for advisers, with a focus on developing the fresh reporting capabilities from 1Q26, and automation of transition processe[s] was expanded to better onboard and retain clients.

Time to buy

According to the note, the broker has retained its buy rating and $125.00 price target on the ASX 200 tech stock.

Based on its current share price of $101.21, this implies potential upside of 24% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

Our Buy thesis and price target is unchanged, with the current forward multiple around average levels, factoring in FY27 visibility, leading indicators and strategic progress.

HUB is currently trading on 32x FY27 EBITDA – around medium-term averages but we see a clear pathway to achieving guidance for $148-162bn custodial FUA. Comments point to a fast start, tracking ahead on the current run-rate.

The post Why this incredible ASX 200 stock could rise almost 25% appeared first on The Motley Fool Australia.

More reading

• 3 underappreciated ASX growth shares I would buy with $1,000
• Here are the top 10 ASX 200 shares today
• Why Bellevue Gold, DroneShield, Hub24, and Telix shares are storming higher today
• Hub24 shares jump 8% on record-breaking performance
• HUB24 posts record inflows in Q2 FY26 earnings

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 Hub24. The Motley Fool Australia has recommended Hub24. 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 off to a modest start in 2026. 

Australia’s benchmark index is up roughly 1% since the start of the new year. 

Two ASX 200 stocks I have my eye on are ARB Corporation Ltd (ASX: ARB) and IperionX Ltd (ASX: IPX). 

These two companies have experienced very different starts to the year. 

However it appears both may be trading below fair value. 

Here’s what experts are saying. 

ARB Corporation Ltd (ASX: ARB)

This ASX 200 company is Australia’s largest designer, manufacturer, and distributor of four-wheel-drive and light commercial vehicle accessories.

The company has carved a niche with aftermarket accessories including bull bars, suspension systems, differentials, and lighting.

Its stock price has tumbled more than 11% for the year to date. 

This week alone, the company has seen its share price fall 12% on the back of its half-year trading update.

It appears investors were heavily selling after the company reported Australian aftermarket sales declined 1.7%. 

The Motley Fool’s Aaron Teboneras reported yesterday this result reflected softer demand for key vehicle models and ongoing fitting capacity constraints.

Perhaps even more concerning was that ARB expects to report underlying profit before tax of approximately $58 million for the half year. 

This represents a 16.3% decline compared with the prior year.

However, it wasn’t all bad news. The company also reported export sales had increased 8.8%, with US market sales up 26.1%. 

This ASX 200 company is now trading close to its 52-week low, which could be an attractive entry point for value investors.

TradingView has an average one year price target of $41.34. 

This indicates more than 45% upside from yesterday’s closing price. 

IperionX Ltd (ASX: IPX)

It has been a very different year for IperionX. 

The low carbon titanium developer has seen its share price soar almost 20% since the start of the year. 

This has been fuelled by key contract wins amidst the United States’ push to strengthen the defence-related supply chains for critical materials.

Despite the emerging tailwinds, this ASX 200 stock still sits 20% below its 52-week high.

It also experienced a slight dip yesterday, dropping more than 2%. 

Analysts insights suggest it has the potential to keep rising. 

Back in December, broker Bell Potter said the company has the potential to disrupt the incumbent titanium supply chain through materially lowering production costs and manufacturing waste. 

The broker has a speculative buy recommendation along with a price target of $9.25. 

This indicates a further upside of 33.29% from yesterday’s closing price. 

Meanwhile, TradingView estimates suggest the stock price could rise a further 37%. 

The post Should you buy the dip on these ASX 200 stocks? appeared first on The Motley Fool Australia.

More reading

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

ASX blue-chip shares may be some of the safest investments to make right now considering all of the volatility happening and the different economic dynamics that are playing out, including AI and the huge capital expenditure that’s occurring.

Stability is a valuable thing during times of uncertainty. The three businesses I’m going to highlight look like good buys right now, including where their valuations are today.

Let’s get into it.

Transurban Group (ASX: TCL)

Transurban is Australia’s largest toll road operator, with roads in Melbourne, Sydney, Brisbane, and North America.

As the chart below shows, the Transurban share price has been drifting lower since November 2025, but this could prove to be an appealing entry point for the business, considering it’s still seeing traffic growth.

If the business continues seeing traffic growth and inflation of toll prices over time, then its operating profit (EBITDA) and cash flow can continue rising.

The quarterly update for the three months to September 2025 saw the ASX blue-chip share’s annual daily traffic (ADT) increase 2.7% year over year, with Sydney ADT up 1.7%, Melbourne ADT up 3.2%, Brisbane ADT up 2.6%, and North American ADT up 6.8%.

With the business continuing to invest in new projects, ADT can rise further. The future looks bright for the business.

It’s expecting to pay an annual distribution per security of 69 cents, which represents an increase of 6% year over year. At the time of writing, this translates into a forward distribution yield of 5%.

Australian Foundation Investment Co Ltd (ASX: AFI)

I don’t think of AFIC, Australia’s largest listed investment company (LIC), as a single business but as a portfolio of names.

It’s invested in many ASX blue-chip shares, offering solid diversification.

Its portfolio gives exposure to names like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Wesfarmers Ltd (ASX: WES), and Macquarie Group Ltd (ASX: MQG).

I like how the portfolio has been constructed to offer both long-term capital growth and dividends for shareholders.

The fact that the ASX blue-chip share is (likely) trading today approximately 10% below its net tangible assets (NTA) is appealing to bargain hunters.

Coles Group Ltd (ASX: COL)

The supermarket and liquor business (it owns liquor retailers like Coles Liquor and Liquorland) isn’t a high-flying stock, but it’s clearly doing very well against peers.

Its supermarket business saw 7% sales growth excluding tobacco in the first quarter of FY26, which I’d describe as a strong performance, as its exclusive products, own-brand items, and value attract customers.

An ASX blue-chip share with defensive characteristics doesn’t need to deliver huge earnings growth to outperform the market. Compounding is a powerful force; it’s not just for the fastest-growing businesses.

As its supermarket network grows, offering more products and services and improving its supply chain, the company’s profits can continue to rise.

At the time of writing, it’s down by more than 10% since September, making this a better time to buy.

The post 3 ASX blue-chip shares I’d buy with $10,000 right now appeared first on The Motley Fool Australia.

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