S&P/ASX 200 Index (ASX: XJO) copper stock Capstone Copper Corp (ASX: CSC) is storming higher today. 

Capstone Copper shares closed yesterday trading for $9.60. At the time of writing, shares are swapping hands for $10.25 apiece, up 6.8%.

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

Capstone Copper shares look to be catching some tailwinds today, with the copper price up 2% overnight to US$12,167 per tonne.

Despite coming under pressure following the outbreak of the Iran war on 28 February, the copper price is up more than 22% since this time last year amid strong global demand for the conductive metal and limited new supply growth.

The Capstone Copper share price has fallen more than 30% since the outset of hostilities in the Middle East, with the ASX 200 copper stock now up 7% over 12 months. This sees the company currently commanding a market cap of around $7.9 billion.

Which brings us back to our headline question.

Should you buy this ASX 200 copper stock today?

Copper’s non-corrosive properties see it widely used in areas such as plumbing. While the red metal’s conductive nature has seen strong demand growth in recent years amid the world’s push towards electrification. 

Commenting on global trends that could support Capstone Copper shares over the long run, Medallion Financial Group’s Philippe Bui said (courtesy of The Bull):

The company provides exposure to one of the strongest long term commodity themes – increasing copper demand driven by electrification, energy transition and global infrastructure investment.

And Bui noted that the ASX 200 copper stock has strong growth potential. He said:

The company produces about 200,000 tonnes of copper equivalent annually, and has a pipeline of expansion projects capable of materially increasing production over time. With copper supplies expected to tighten structurally in coming years, Capstone is well positioned to benefit from higher long-term prices.

Connecting the dots, Bui issued a hold recommendation on Capstone Copper shares.

He concluded:

While capital expenditure remains elevated during the expansion phase, the growth outlook is compelling. Investors already positioned in the stock should continue to hold exposure to what we regard as an appealing long term copper growth story.

What’s the latest from Capstone Copper shares?

The ASX 200 copper stock reported its fourth quarter and full calendar year 2025 results on 3 March.

Highlights for the full year included a 47.5% increase in revenue from 2024 to $2.36 billion.

And earnings before interest, taxes, depreciation and amortisation (EBITDA) of $953 million were up 92% year on year. 

“2025 was an inflection point for Capstone, representing tangible delivery on peer leading growth with our copper production up 22%,” Capstone CEO Cashel Meagher said on the day.

The post Should you buy this $8 billion ASX 200 copper stock amid surging global demand? appeared first on The Motley Fool Australia.

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• Three stocks to buy for double-digit returns, according to Macquarie
• Why Capstone Copper, Life360, Neuren, and St George Mining shares are falling today

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

MA Financial Group Ltd (ASX: MAF) was one of the highfliers among financial shares last calendar year, but the shares have been staging a retreat over the past three months.

The analyst team at Jarden believes this presents an opportunity to get in on the action and has a bullish share price target on the company, which we’ll get to later.

Firstly, what does MA Financial Group do?

Diversified financial offering

MA Financial Group has three key pillars of the business: alternative asset management, lending and technology, and corporate advisory and equities.

Jarden is predicting strong earnings growth, which they believe has been sold down partly in response to bad news in the US private credit space.

As they said in a research note to clients:

Following 31% earnings per share growth in FY25, we forecast 38%/22% growth in FY26/27, driven by continued double-digit assets under management growth in asset management focussed in real estate and private credit, strong operating leverage in MA Money business (FY26E loan book growth forecast 62%), and a moderating drag from the US business.

Jarden said there were few signs of stress locally around private credit, with the issues in the US driven in large part by loans to unlisted software companies, which are being caught up in the AI revolution.

Strong historical performance

Jarden said MA Financial Group had a strong track record of lending to corporates, with a 0% loss history and no loans in arrears.

They said they were overweight on the shares for several reasons.

Fundamentally, we like the story. There are multiple earnings drivers, and management have executed well. MA Money is easily surpassing MAF’s expectations with book growth in excess of 100%. From a rating standpoint, we initiate at Overweight (as opposed to Buy) due to risks including: 1) we are about 9% below FY26 NPAT consensus, driven primarily by a more conservative Transaction Revenue forecast of $34m. Consensus looks achievable but in our view most things need to go right including comping strong non-recurring revenue in asset management; 2) the macro environment (including private credit concerns) and rising interest rates present a degree of near-term uncertainty; and 3) competition more broadly across commercial real estate credit, asset backed securities markets and mortgages.

Jarden says MA Financial Group shares are trading at their lowest price-to-earnings ratio in almost 2 years, and it has a price target of $9.45, compared with $7.15 at the time of writing, which would represent 32.2% upside if achieved.

MA Financial Group was valued at $1.37 billion at the close of trade on Monday.

The post Which ASX financial stock could deliver 30% upside? appeared first on The Motley Fool Australia.

More reading

• $7,500 invested in New Hope shares 5 weeks ago is now worth…
• Should you buy this $8 billion ASX 200 copper stock amid surging global demand?
• Why ASX 200 gold stocks like Northern Star and Evolution Mining are storming higher today
• Oil slides below US$100 as tensions shift, ASX energy stocks pull back
• Down another 5% today: Is the party finally over for the EOS share price?

Motley Fool contributor Cameron England 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 Ma Financial Group. 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) gold stocks, including Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN) are charging higher today.

In early afternoon trade on Tuesday, the ASX 200 is up 0.4%, having given back earlier intraday gains of 1.6%.

The gold miners’ strong rally is coming off the boil as well, though ASX gold shares are still outpacing the benchmark. At the time of writing, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is up 2.6% after having been up 5.3% in morning trade.

Here’s how these ASX 200 gold stocks are performing at this same time:

• Northern Star shares are up 2.0% at $17.55
• Newmont Corp (ASX: NEM) shares are up 4.8% at $138.10
• Evolution Mining shares are up 3.1% at $11.86
• Ramelius Resources Ltd (ASX: RMS) shares are up 3.3% at $3.42
• Bellevue Gold Ltd (ASX: BGL) shares are up 0.4% at $1.26
• Genesis Minerals Ltd (ASX: GMD) shares are up 6.3% at $5.69
• Perseus Mining Ltd (ASX: PRU) shares are up 2.4% at $4.67
• Vault Minerals Ltd (ASX: VAU) shares are up 2.1% at $3.69
• Westgold Resources Ltd (ASX: WGX) shares are up 3.1% at $5.18
• Ora Banda Mining Ltd (ASX: OBM) shares are down 1.0% at $1.04

Boom!

With the exception of Ora Banda, here’s why the Aussie gold miners are outperforming today.

ASX 200 gold stocks rally on Trump’s Iran reprieve

After getting hammered throughout most of March following the outbreak of the Iran war on 28 February, ASX 200 gold stocks like Evolution Mining and Northern Star are rallying today amid hopes that the conflict could end sooner than later.

This comes after United States President Donald Trump extended his 48-hour deadline to begin bombing Iranian power plants if Iran doesn’t fully reopen the Strait of Hormuz.

Trump offered a five-day reprieve, saying the US is in talks with Iran. An assertion that Iranian authorities have denied.

As you’ll have noticed at the petrol station, the oil price has rocketed since the start of the war, with Iran all but closing the vital shipping route in retaliation.

Indeed, on Friday, Brent crude oil was trading north of US$112 per barrel, according to data from Bloomberg.

But the oil price plunged almost 11% overnight, briefly dipping below US$100 per barrel, and is currently trading at US$102.76 per barrel following Trump’s comments.

And should the US succeed in reopening the Strait of Hormuz, which carries around 20% of the world’s oil shipments, Trump predicted that the oil price would “drop like a rock”.

Why is that important for ASX 200 gold stocks like Northern Star, Newmont, and Evolution Mining?

Mostly because soaring energy costs will rekindle global inflation and, in turn, lead to higher interest rates. And gold, which pays no yield itself, historically struggles in high or rising interest rate environments.

Stay tuned!

The post Why ASX 200 gold stocks like Northern Star and Evolution Mining are storming higher today appeared first on The Motley Fool Australia.

More reading

• Which top ASX gold stock just took the biggest hit?
• 5 things to watch on the ASX 200 on Tuesday
• Down 40% in a month. Does the Northern Star share price have further to fall?
• Why Genesis Energy, Northern Star, PLS, and WiseTech shares are falling today
• Should you buy these ASX gold stocks after last week’s crash?

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 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.

Oil prices dropped below key levels, with both major benchmarks declining after a shift in the latest geopolitical developments.

According to Trading Economics, WTI crude is trading around US$89.70 per barrel, down about 8.7% on the session. Brent crude is near US$100.60 per barrel, after falling roughly 10.3%.

This follows a pullback in prices after recent gains linked to supply disruptions across the Middle East.

Shift in expectations weighs on prices

Recent reports indicate that the United States has paused planned strikes on Iranian energy infrastructure for five days following high-level discussions.

Markets seem to have interpreted this as a possible step toward easing tensions.

Earlier, oil prices surged as tensions between the US and Iran raised fears about supply routes, particularly through the Strait of Hormuz. This chokepoint handles roughly 20% of global oil flows.

With the immediate risk of disruption appearing lower, traders appear to have adjusted their expectations, leading to a decline in prices.

Volatility remains elevated

Despite the recent pullback, oil remains higher on a longer-term basis.

Brent crude is up around 38% since the start of the US-Israel conflict involving Iran. Prices briefly moved above US$110 per barrel, up from around US$70 before the conflict.

Recent trading also highlights how quickly prices are moving. Brent has recorded large swings within a single session as markets reacted to escalating updates.

These moves have been driven by changing expectations around supply risk.

ASX energy stocks move lower

The drop in oil prices weighed on local energy stocks in early trading today.

Woodside Energy Group Ltd (ASX: WDS) shares were down about 3.5% in early trading to $33.56. The stock remains roughly 20% higher over the past month.

Santos Ltd (ASX: STO) shares also declined, falling around 3% to $7.82. The company’s shares are still up about 14% over the same period.

Ampol Ltd (ASX: ALD) shares were down about 0.8% to $33.19. In contrast, Viva Energy Group Ltd (ASX: VEA) shares rose approximately 2.3% to $2.43.

Coal stocks also moved lower, with Whitehaven Coal Ltd (ASX: WHC) down about 2% and New Hope Corporation Ltd (ASX: NHC) slipping around 1%.

Foolish takeaway

Oil prices have fallen as immediate supply concerns have eased, though they remain above pre-conflict levels.

While there have been no confirmed disruptions to production or shipping, recent price movements have been driven by changes in expectations.

Moves across ASX energy stocks seem to have followed these changes in oil prices, rather than any new specific updates from the companies themselves.

The post Oil slides below US$100 as tensions shift, ASX energy stocks pull back appeared first on The Motley Fool Australia.

More reading

• $7,500 invested in New Hope shares 5 weeks ago is now worth…
• Why is the Woodside share price getting smashed on Tuesday?
• Can these red hot ASX energy shares keep charging higher?
• What would a gas tax mean for ASX energy stocks?
• 5 things to watch on the ASX 200 on Tuesday

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.

The Electro Optic Systems Holdings Ltd (ASX: EOS) share price has dropped another 4.6% lower in Tuesday morning trade. At the time of writing, the shares are trading at $8.53 each.

The shares are 509% higher than just 12 months ago. But since peaking at an all-time high of $11.74 in mid-March, the EOS share price has slumped by over 27%. And it’s down 14% for the year to date.

What happened to the EOS share price this month?

The Aussie defence company, which develops and produces advanced electro-optic technologies, benefited from surging demand for exposure to the defence sector in late 2025 and early 2026. 

Ongoing conflict in the Middle East and rising geopolitical tensions have led to an uptick in government defence spending. This includes the development of missiles or submarines, as well as technologies such as drones, AI, and electronic warfare.

As a result of strong demand for defence technology, EOS has won several major contracts over the past few months, helping build investor confidence and sending the share price soaring to an all-time high earlier this month.

But as quickly as the share price spiked, it has slumped back down amid strong headwinds. 

Two weeks ago, investors were spooked by news that an EOS announcement on 15 December 2025 regarding a conditional US$80 million high-energy laser contract failed to adequately disclose market-sensitive information.

Less than a week later, the company announced significant insider selling after the exercise of options. EOS announced that its CEO, CFO, and other senior executives had exercised millions of share options and are now planning to sell a significant portion of those shares. In total, management exercised more than 3.4 million options under the company’s long-term incentive plan, converting them into ordinary shares, and they also flagged their intention to sell. 

The news caught investors off-guard, and the volume of shares being disposed of raised questions. 

Investor selling ramped up quickly and sent the share price crashing.

Is this the end of the road for the EOS share price rally?

Analysts don’t seem to think so.

Despite the latest share price decline, analysts are still bullish that there is still some more upside ahead for the EOS share price. All four analysts on TradingView data have a strong buy consensus. 

The maximum target price is $16, which implies a potential 82% upside at the time of writing. Even the minimum $9.40 target price represents a potential upside of 12% at the time of writing.

The post Down another 5% today: Is the party finally over for the EOS share price? appeared first on The Motley Fool Australia.

More reading

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• Why EBR, EOS, Racura, and Woodside shares are rising today
• Electro Optic Systems just had its DroneShield moment. Here’s what investors should know

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 Electro Optic Systems. 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 recovering on Tuesday and pushing higher. In afternoon trade, the benchmark index is up 0.3% to 8,393.3 points.

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

BHP Group Ltd (ASX: BHP)

The BHP Group share price is up 3% to $48.56. This follows a rise in copper and iron ore prices overnight after the US postponed military strikes on Iran. It isn’t just BHP that is rising on Tuesday. A good number of mining shares are pushing higher, which has driven the S&P/ASX 200 Resources index 2.3% higher at the time of writing.

EchoIQ Ltd (ASX: EIQ)

The EchoIQ share price is up 19% to 73 cents. This morning, this healthcare technology company announced that its EchoSolv HF technology would be deployed via the Mayo Clinic Platform – Solutions Studio Program. This will enable Mayo Hospitals and 80 external partner hospitals to participate. The company’s CEO, Dustin Haines, said: “The expansion of our agreement with Mayo Clinic is one of the more strategically important milestones in the Company’s history. A more equitable arrangement with one of the most respected hospital systems in the US, as we move closer to FDA clearance and commercial deployment, leaves us well positioned for the months ahead.”

Life360 Inc (ASX: 360)

The Life360 share price is up 3% to $19.32. Investors have been buying the family safety technology company’s shares following another rise by its Nasdaq listed shares overnight. Despite this, Life360 shares are still down 40% since the start of the year amid broad weakness in the tech sector. Last week, Morgan Stanley put an overweight rating and $30.00 price target on its shares. This implies potential upside of 55% for investors over the next 12 months.

Qantas Airways Ltd (ASX: QAN)

The Qantas Airways share price is up almost 3% to $8.37. This has been driven by a pullback in oil prices overnight amid optimism that the US and Iran could soon commence peace talks. Given that fuel is one of Qantas’ largest operating expenses, any relief in oil prices will be good news for future profitability. Last week, Macquarie Group Ltd (ASX: MQG) put an outperform rating and $11.60 price target on Qantas’ shares. This suggests that upside of almost 40% is possible from current levels.

The post Why BHP, EchoIQ, Life360, and Qantas shares are racing higher today appeared first on The Motley Fool Australia.

More reading

• This could be a once-in-a-decade opportunity to buy cheap ASX tech stocks
• Why is the Woodside share price getting smashed on Tuesday?
• Which ASX biotech’s shares are rocketing higher on big US news?
• 5 things to watch on the ASX 200 on Tuesday
• Where to from here for BHP shares after crashing over 20%?

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Macquarie Group. The Motley Fool Australia has positions in and has recommended Life360 and Macquarie Group. 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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is back on form and pushing higher. At the time of writing, the benchmark index is up 0.4% to 8,398.6 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down 5% to $3.63. This appears to have been driven by a de-escalation in Middle East tensions. Some investors may believe that this could mean less demand for counter-drone technology solutions than expected. Not even the release of an announcement has stopped its shares from falling. DroneShield announced new interoperability between its DroneSentry-C2 command-and-control software and optical sensing technologies from OpenWorks Engineering. DroneShield’s chief product officer, Angus Bean, said: “Operators need clarity, not complexity. Expanding our ecosystem with additional optical sensing technologies from OpenWorks Engineering gives customers more options to tailor their deployments, while SensorFusionAI ensures all inputs are combined into a clear, operational picture.”

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman Y Gomez share price is down 3% to $16.75. This is despite there being no news out of the quick service restaurant operator. However, with its shares among the most shorted on the Australian share market, it is possible that short sellers have been increasing their positions and putting pressure on its share price.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is down 1.5% to $7.32. This may have been driven by a broker note out of Morgan Stanley this morning. It has downgraded the insurance giant’s shares to an underweight rating with a $6.60 price target. Morgan Stanley has concerns over AI disruption, believing that AI agents could put pressure on premiums by finding consumers better prices.

Myer Holdings Ltd (ASX: MYR)

The Myer share price is down almost 3% to 28.2 cents. This department store operator’s shares were up as much as 17% today before taking an almighty U-turn. After initially responding positively to Myer’s half-year results, the market appears to have seen something it didn’t like. Myer reported total sales growth of 24.5% to $2,279.5 million including acquired businesses. On a pro forma basis, which adjusts for the inclusion of Apparel Brands in both periods, sales were up 2.1%. The company’s underlying net profit after tax climbed 21.7% to $51.7 million, allowing the board to declare a fully franked interim dividend of 1.5 cents per share.

The post Why DroneShield, Guzman Y Gomez, IAG, and Myer shares are falling today appeared first on The Motley Fool Australia.

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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 DroneShield and is short shares of DroneShield. The Motley Fool Australia has recommended Myer. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

KMD Brands Ltd (ASX: KMD) has rejected an offer from US surfwear company Stokehouse Unlimited to buy its Rip Curl business and list it separately on the share market.

KMD said in a statement to the ASX on Tuesday that it had engaged advisers to assess the concept put forward by Stokehouse, “which involved KMD Brands de-merging Rip Curl into a separate NZX and ASX listed company and subsequently merging Rip Curl with Stokehouse”.

KMD said further in its statement to the ASX:

Stokehouse proposed that after the de-merger of Rip Curl from KMD Brands, and its merger with Stokehouse, Stokehouse shareholders would own 22% of the merged entity. This proposed ownership structure is misaligned with the earnings delivered by the Stokehouse and Rip Curl businesses given Stokehouse’s immaterial contribution to combined EBITDA, and would unfairly dilute KMD Brands shareholders. In addition, Mr. Naude, the current CEO of Stokehouse, would be Chief Executive of the combined business, and he would lead the business from California.

Not interested in a deal

KMD said that its board had carefully evaluated the proposal and determined it was not in the best interests of shareholders, “as it does not provide a clear path to enhance shareholder value, as compared to the continued execution of the Next Level transformation”.

The board said there were several reasons for its decision, including that the suite of brands within its own business was highly complementary.

They also said the Stokehouse business had limited scale and profitability and “has significant debt relative to its earnings profile”.

They also said:

There is no new capital being introduced by Stokehouse, and instead the transaction concept relies on a large capital raising by the smaller demerged Rip Curl-Stokehouse entity which would create significant further dilution for KMD Brands shareholders in addition to the dilution they would suffer through Stokehouse shareholders owning 22% of the demerged Rip Curl entity.

No value being created

KMD brands Chair David Kirk said the Stokehouse proposal, “creates no value for shareholders and is challenging from an execution standpoint”.

In addition, the combination of multiple surf brands that directly compete with each other is not a strategy that has proven effective. Our focus remains on executing the Next Level strategy, which has already gained momentum.

KMD Brands shares were 3.2% higher at 16 cents on Tuesday morning. The company’s shares were changing hands at a 12-month low of 15.5 cents on Monday.

The company was valued at $110.3 million at the close of trade on Monday.

KMD will release its first-half results to the market tomorrow, 25 March.

The post Which ASX retail company just rejected a deal to buy its Rip Curl stores? appeared first on The Motley Fool Australia.

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• Down another 5% today: Is the party finally over for the EOS share price?
• Why BHP, EchoIQ, Life360, and Qantas shares are racing higher today
• Why DroneShield, Guzman Y Gomez, IAG, and Myer shares are falling today
• This ASX stock is up 2,700% in a year. Here’s what’s driving the dip today
• This could be a once-in-a-decade opportunity to buy cheap ASX tech stocks

Motley Fool contributor Cameron England 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 Sunrise Energy Metals Ltd (ASX: SRL) share price is moving lower on Tuesday following a fresh announcement from the company.

At the time of writing, shares are down 2.23% to $7.44. Despite today’s pullback, the stock remains one of the strongest performers on the ASX, up roughly 2,700% over the past 12 months.

So, what did the company announce, and why are investors taking some money off the table?

New geothermal partnership announced

According to the release, Sunrise has teamed up with US-based I-Pulse and Greenvale Mining to deploy a new drilling method in the Millungera Basin in Queensland.

Under the deal, I-Pulse will run the project and spend an initial US$5 million to earn an 80% stake. Sunrise will keep 15%, while Greenvale will hold the remaining 5%.

The aim is to develop geothermal energy using I-Pulse’s drilling technology, which can reach deep underground more efficiently than traditional methods.

Management said early work suggests the Millungera Basin could be one of the most promising geothermal areas in Australia.

Large-scale energy potential highlighted

One of the main takeaways from the update is just how large the potential resource could be.

Data from the Geological Survey of Queensland suggests the basin may hold more than 611,000 petajoules of stored energy. That is roughly equal to around 600 times Australia’s annual electricity use.

Results from existing wells also show higher-than-average heat levels, which supports the case for a large geothermal system.

From here, the companies plan to carry out more studies and drilling to better understand the resource. The goal is to develop it into a steady, emissions-free power source.

Why the share price is falling

Despite the size of the opportunity, today’s share price drop is not unusual.

After a strong run over the past year, it is common to see some investors take profits. The stock has also eased back in recent weeks, which suggests the upward momentum has slowed.

It is also worth noting that the announcement focuses on long-term potential rather than near-term earnings. Without immediate revenue or cash flow, some investors may be less willing to buy in at current levels.

What to watch next

This update adds to Sunrise’s bigger plans, which already include its battery materials projects in New South Wales.

The geothermal deal opens up a new growth opportunity, but it is still early and will take time to develop. More testing, drilling, and funding will likely be needed before it moves further ahead.

In the near term, attention will turn to further updates on exploration work, drilling results, and the project’s commercial development.

The post This ASX stock is up 2,700% in a year. Here’s what’s driving the dip today appeared first on The Motley Fool Australia.

More reading

• 3 lesser-known ASX shares making investors an outrageous amount of money

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.

It doesn’t happen often.

A group of high-quality ASX tech stocks, many of them with global businesses, all falling heavily at the same time.

But that’s exactly what we’re seeing right now.

Driven by concerns around interest rates, valuation resets, and, more recently, artificial intelligence (AI) disruption, a number of well-known names have been pushed 35% to 60% below their highs.

That doesn’t automatically make them buys. But it does make them worth a closer look.

Here are five I think stand out.

Xero Ltd (ASX: XRO)

Xero has gone from market darling to market concern in a relatively short period of time. But I still see a global accounting platform with strong positioning among small and medium-sized businesses.

It continues to grow its subscriber base and expand internationally, particularly in markets like the UK and North America.

The key for me is that accounting software is deeply embedded in operations. Once a business is using Xero, switching is difficult.

The share price may be down significantly, but the long-term growth opportunity still looks intact.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is a very different kind of tech company. It operates in medical imaging software, supplying hospitals and healthcare providers with high-performance diagnostic tools.

What stands out is its reputation and track record. The company has consistently won large contracts, particularly in the United States.

Healthcare isn’t a short-term trend. Demand for imaging and diagnostics continues to grow, supported by ageing populations and increasing healthcare needs.

After a sharp share price decline, I see an opportunity to buy a high-quality business with strong long-term potential at a better price.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of the quieter success stories on the ASX. It provides enterprise software to government agencies, universities, and large organisations, with a strong focus on recurring revenue.

What I like here is the consistency. The company has steadily grown its earnings over time while transitioning customers to its cloud platform.

That creates visibility and predictability, which is valuable in any environment.

It may not attract the same attention as some other tech names, but I think its reliability is part of what makes it appealing.

Life360 Inc. (ASX: 360)

Life360 brings a different type of growth exposure. Its app connects families through location sharing and safety features, and it has been building a large global user base.

The business is now focused on monetisation, converting users into paying subscribers, and expanding its product offering.

There’s still execution risk here, particularly with recent acquisitions, but I think the opportunity is significant if it continues to scale successfully.

With the share price down heavily, the market appears to be questioning that path, which is where I think potential upside can emerge.

Catapult Sports Ltd (ASX: CAT)

Catapult sits at the heart of sports and technology. It provides performance analytics and wearable technology to professional sports teams around the world.

What I find interesting is its niche positioning. It has built strong relationships across elite sports leagues like the NBA, EPL, and NFL, which gives it a level of defensibility.

The business has been moving toward a recurring revenue model, which could improve stability over time.

Like many ASX tech stocks, it hasn’t been spared from the recent sell-off, but the long-term opportunity in sports analytics remains.

Foolish Takeaway

When markets turn against a sector, everything tends to fall together.

Right now, ASX tech looks to be in that phase, with Xero, Pro Medicus, TechnologyOne, Life360, and Catapult shares all being hit hard despite their long-term growth potential.

There’s no guarantee of a quick rebound. But for patient investors, I think this could be one of those once-in-a-decade periods where high-quality stocks are available at far more reasonable prices.

The post This could be a once-in-a-decade opportunity to buy cheap ASX tech stocks appeared first on The Motley Fool Australia.

More reading

• Why BHP, EchoIQ, Life360, and Qantas shares are racing higher today
• Forget CSL shares, this ASX healthcare stock could double in value
• A rare buying opportunity in 1 of the ASX’s top shares?
• Up 11%: Why have these 2 ASX tech stocks surged in March?
• Here are the top 10 ASX 200 shares today

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 Catapult Sports, Life360, Technology One, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Catapult Sports, Life360, and Xero. The Motley Fool Australia has recommended Pro Medicus and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.