There are a lot of ASX shares for investors to choose from on the Australian share market.

To narrow things down, let’s see what analysts at Bell Potter are saying about the three popular shares listed below, courtesy of The Bull. Here’s what you need to know:

CSL Ltd (ASX: CSL)

Despite trading on lower than normal multiples and having an attractive longer term product pipeline, the team at Bell Potter still only rates CSL shares as a hold this week. Following the biotech giant’s half-year results, the broker said:

 This plasma and vaccines giant reported revenue of $US8.3 billion in the first half of 2026, down 4 per cent on the prior corresponding period. Underlying net profit after tax and amortisation (NPATA) of $US1.9 billion, excluding restructuring costs and impairments, was down 7 per cent. The company has maintained full year guidance, with revenue forecast to increase between 2 per cent and 3 per cent and NPATA between 4 per cent and 7 per cent at constant currency. CSL trades below its historical price/earnings ratio and peers. Longer term product pipelines remain attractive.

Lynas Rare Earths Ltd (ASX: LYC)

Bell Potter has named this ASX rare earths stock as a sell this week. It believes the company’s shares are expensive (and volatile). And with execution risks remaining elevated, the broker thinks investors should keep their powder dry for the time being. It said:

While Lynas boasts strategic positioning in rare earths amid a positive long term theme, execution risks, in our view, remain elevated. The consensus among market watchers is for significant volatility ahead. Operational challenges, including power supply disruptions at the Kalgoorlie processing plant and geopolitical uncertainty, add further complexity. The share price has been volatile. It rose from $6.89 on February 12, 2025 to $21.64 on October 15. LYC was trading at $15.92 on February 12, 2026. There’s no dividend yield.

Wesfarmers Ltd (ASX: WES)

Finally, Bell Potter has put a hold rating on Wesfarmers shares ahead of its half-year results.

The broker sees potential for a strong result to be a positive catalyst for its shares, but with a stretched valuation, it thinks investors should be waiting for a better entry point. It said:

The industrial conglomerate’s interim results for fiscal year 2026 are scheduled to be released on February 19. The results could serve as a positive catalyst, with growth most likely led by Bunnings and Kmart Group. Wesfarmers posted statutory net profit after tax of $2.926 billion in full year 2025, an increase of 14.4 per cent on the prior corresponding period.

While its valuation remains stretched, operating momentum and productivity investments in digital and supply chain capabilities support earnings resilience. Capital management initiatives — such as a payout of $3.56 a share that includes special distributions — further enhances total return. The current valuation leaves a hold recommendation.

The post Buy, hold, sell: CSL, Lynas, and Wesfarmers shares appeared first on The Motley Fool Australia.

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• Utilities outperform as ASX 200 ascends to a 3-month high
• Recap: Winners and losers from earnings season week 2
• The earnings were awful, but here’s why I’m still holding my CSL shares
• Buy, hold, sell: James Hardie, CSL, and CBA shares

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has recommended CSL and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Aurizon Holdings Ltd (ASX: AZJ) share price is in focus today after reporting a 9% rise in first-half FY2026 EBITDA to $891 million and lifting its interim dividend by 36% to 12.5 cents per share.

What did Aurizon Holdings report?

• Revenue up 4% to $2.1 billion
• EBITDA increased 9% to $891 million
• NPAT rose 16% to $237 million
• Earnings per share up 20% to 13.6 cents
• Interim dividend of 12.5 cps, 90% franked (36% increase)
• Free cashflow up 41% to $335 million

What else do investors need to know?

Aurizon attributed the result to higher volumes, a regulatory revenue uplift, and continued discipline on costs. The half saw solid gains across the Bulk, Coal, and Network business units, supporting the group’s improved earnings.

The interim dividend payout ratio was lifted to 90% of Underlying NPAT, and Aurizon extended its on-market buy-back by $100 million, now totalling up to $250 million. The company also completed a review of its Network business, deciding to keep its integrated rail model rather than pursue a demerger or monetisation.

What did Aurizon Holdings management say?

Managing Director & CEO Andrew Harding said:

Today’s results underscore the strength of Aurizon’s two largest business units, Network and Coal and the continued growth of Bulk and Containerised Freight… Revenue growth was driven by regulatory uplift and higher volumes, while disciplined cost control — including the successful execution of last year’s $60 million cost‑out program — further strengthened our position… We determined that retaining 100% ownership of Network remained the option that best delivers long-term value for our shareholders.

What’s next for Aurizon Holdings?

Aurizon expects full-year underlying EBITDA in the range of $1,680 million to $1,750 million and has upgraded expected full-year dividends to 22-23 cents per share. The group is maintaining its focus on disciplined growth, cost control, and investment in both transformation and growth capex.

Management says they are progressing with the draft 10-year undertaking for the Central Queensland Coal Network, which, if approved, is expected to provide an average annual revenue uplift and long-term certainty for customers and shareholders.

Aurizon Holdings share price snapshot

Over the past 12 months, Aurizon shares have risen 13%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Aurizon Holdings hikes dividend after stronger FY2026 half-year profit appeared first on The Motley Fool Australia.

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• JB Hi-Fi posts record first-half sales, profit and dividend lift
• Treasury Wine Estates posts $649.4m loss, suspends dividend as transformation accelerates
• Bendigo and Adelaide Bank earnings: Profit up, dividend holds steady

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 Stockland Corporation Ltd (ASX: SGP) share price is in focus today after the diversified property group posted a statutory profit of $292 million for the first half of FY26, up 19% on last year, and a 29.5% surge in post-tax Funds From Operations (FFO) to $325 million.

What did Stockland report?

• Statutory profit: $292 million (1H25: $245 million)
• Post-tax FFO: $325 million, up 29.5%
• FFO per security: 13.5 cents
• Distribution: 9.0 cents per security (1H25: 8.0 cents)
• NTA per security: $4.25 (FY25: $4.22)
• Gearing: 28.1%, within target range of 20%–30%

What else do investors need to know?

Stockland’s Development business had a standout half, with Masterplanned Communities settlements up 60% to 3,168 lots and development FFO nearly tripling to $106 million. The company’s Investment Management arms, including Town Centres and Logistics, continued to deliver steady growth, despite some asset disposals and partnership transfers.

The group also reaffirmed its full-year targets for both its Masterplanned and Land Lease Communities, and completed its target of net zero scope 1 and 2 emissions across operations, highlighting its focus on sustainability.

What did Stockland management say?

Tarun Gupta, Managing Director and CEO said:

We delivered a strong first half result, with earnings growth supported by higher development production and continued progress in executing our strategy.

Our Investment Management portfolios performed well, delivering positive comparable growth across all sectors, supported by strong leasing outcomes and contributions from recent project completions. We continue to expand our capital partnering platform and recycle capital toward attractive growth opportunities, while maintaining balance sheet strength and funding flexibility.

What’s next for Stockland?

Looking ahead, Stockland expects development earnings and cash flow to be “materially weighted” to the second half of FY26, as more settlement receipts flow through. The company is targeting 7,500–8,500 lot settlements in Masterplanned Communities and 700–800 for Land Lease Communities for the full year.

Management also expects gearing to moderate further by year-end, and the distribution per security to be in line with FY25 at 25.2 cents. Stockland will keep progressing its commercial pipeline, especially with new data centre opportunities and an expanded focus on the Land Lease sector.

Stockland share price snapshot

Over the past 12 months, Stockland shares have declined 4%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Stockland posts strong 1H26 result on development surge appeared first on The Motley Fool Australia.

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• Abacus Storage King posts profit growth, reaffirms outlook for 2026
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• Treasury Wine Estates posts $649.4m loss, suspends dividend as transformation accelerates
• Bendigo and Adelaide Bank earnings: Profit up, dividend holds steady

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.

Genesis Minerals Ltd (ASX: GMD) has struck a deal with Magnetic Resources Ltd (ASX: MAU) to take over the smaller company in a deal worth about $639 million.

Magnetic Resources shareholders will receive $1.40 in cash and 0.0873 Genesis Minerals shares for each of the shares they own, with the bid having an implied value of $2 per share.

Magnetic shareholders would also have the option to receive their payment entirely in cash or scrip.

Magnetic Resources shares last traded at $1.60 before the offer, which is being endorsed by the company’s board, was announced.

Complementary assets

In an announcement to the ASX on Monday morning, Genesis said that Magnetic’s Lady Julie gold project, which has a mineral resource of about 2.2 million ounce of gold at a grade of 1.8 grams per tonne, offered a clear pathway “to supply incremental open pit and underground ore to Genesis’ operating three million tonne per annum Laverton mill about 20km away”.

The company added:

Lady Julie’s northern boundary borders the land acquired by Genesis via its recent acquisition of Focus Mineral’s Laverton Gold Project, meaning there is scope for substantial synergies and cost savings by allowing Lady Julie to integrate into a much larger open pit operation.  

The company said there was also the opportunity to derisk the development of Lady Julie by applying Genesis’ existing processing infrastructure and proven mining expertise.

Genesis added that there was “compelling exploration upside” along strike and down dip at Lady Julie.

Long-term plan in the wings

The company also said it would release an updated, multi-year strategic plan following the completion of the takeover.

Genesis Chair Raleigh Finlayson said the deal made sense for shareholders of both companies.

This transaction creates substantial value for both groups of shareholders, delivering genuine synergies while combining the right assets with the right people”. “Magnetic’s Lady Julie Gold Project will add more than 2Moz at an attractive high grade to Genesis’ Laverton inventory, further bolstering the mine life and production outlook”. “Shareholders of both companies will benefit by leveraging Genesis’ existing infrastructure, including the 3Mtpa Laverton mill, and through the savings which would flow from a single open pit development.

Magnetic Managing Director George Sakalidis said the deal’s announcement followed a strategic review which the board and its advisers had been working on for several years, “to explore potential options to collaborate with other operators which have the existing skill set or combination synergies to develop Magnetic’s discoveries and unlock value for our shareholders”.

He added:

This proposal provides an opportunity for shareholders to realise an attractive premium, with the flexibility to accept cash or shares in Genesis. Exchanging Magnetic shares for Genesis shares will enable Magnetic shareholders to retain exposure to Lady Julie with the benefit of Genesis’ best-in-class project development team, diversified operating cash flow and robust balance sheet.

Shaw and Partners recently put a price target of $4 per share on Magnetic Resources.

Genesis Minerals was valued at $8.22 billion at the close of trade on Friday.

The post Genesis Minerals lobs takeover bid for Magnetic Resources appeared first on The Motley Fool Australia.

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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 JB Hi-Fi Ltd (ASX: JBH) share price is in focus after the retailer reported a record half-year result, with sales up 7.3% to $6.1 billion and net profit after tax rising 7.1% to $305.8 million.

What did JB Hi-Fi report?

• Total sales jumped 7.3% to $6.10 billion
• EBIT (Earnings Before Interest and Tax) grew 8.1% to $454.0 million
• NPAT (Net Profit After Tax) rose 7.1% to $305.8 million
• Earnings per share increased 7.1% to 279.7 cents
• Interim dividend lifted 23.5% to 210.0 cents per share (75% of NPAT)
• Strong balance sheet with net cash of $489.5 million

What else do investors need to know?

JB Hi-Fi Australia saw sales lift 6.3%, with categories like mobile phones and computers performing well and online sales climbing 11.2%. The New Zealand segment delivered standout growth, with sales rising 32.6% and EBIT more than doubling.

The Good Guys brand also grew, with strong demand in home appliances and online sales up 14%. The e&s business, a recent acquisition, contributed $144.8 million in sales as the group continues to invest for long-term growth.

JB Hi-Fi increased its dividend payout ratio range from 65% to 70-80% of NPAT, underlining a commitment to rewarding shareholders while keeping the balance sheet strong and flexible.

What did JB Hi-Fi management say?

Group CEO, Nick Wells, said:

We are pleased to report record sales and strong earnings for HY26, as we built on the momentum of the previous year. In a retail environment where customers are seeking value, our brands continue to resonate strongly and our teams continue to execute to a high standard.

What’s next for JB Hi-Fi?

Looking ahead, JB Hi-Fi reported continuing sales growth in January 2026, though management remains cautious given the uncertain retail outlook and strong competition. The company will maintain its focus on delivering value and high customer service levels while investing in new stores, digital sales, and strategic initiatives.

The group is also committed to sustainability and supporting people, aiming for long-term positive impacts across its teams, communities, and the environment.

JB Hi-Fi share price snapshot

Over the past 12 months, the JB Hi-Fi shares have declined 25%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post JB Hi-Fi posts record first-half sales, profit and dividend lift appeared first on The Motley Fool Australia.

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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.

If you want broad diversification without constantly picking stocks, a small collection of well-chosen exchange-traded funds (ETFs) could be the way to do it.

With that in mind, here’s how ASX investors could build an ultimate four-ETF portfolio:

iShares S&P 500 AUD ETF (ASX: IVV)

Every core portfolio needs a strong foundation, and the iShares S&P 500 AUD ETF could provide that.

Tracking the S&P 500, this ETF gives investors a slice of the 500 largest US stocks. This includes global leaders such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and Tesla (NASDAQ: TSLA).

The US remains home to many of the world’s most innovative and profitable companies. Over long periods, the S&P 500 has demonstrated an ability to adapt as industries evolve. Old leaders fade, new leaders emerge, and the index refreshes itself.

Vanguard MSCI International Shares ETF (ASX: VGS)

While the US dominates headlines, global diversification still matters.

The Vanguard MSCI International Shares ETF provides investors with exposure to developed markets outside Australia, spanning Europe, Japan, and other advanced economies. This reduces reliance on a single country and helps smooth performance across cycles.

It also captures stocks that may not feature prominently in US indices but are global leaders in their own right, such as LVMH Moet Hennessy Louis Vuitton SE (FRA: MOH). For investors who want broad international exposure without complexity, this ASX ETF adds geographic balance to the portfolio.

Betashares Australian Quality ETF (ASX: AQLT)

The Australian share market is heavily weighted toward banks and miners. The Betashares Australian Quality ETF allows investors to take a different approach to investing locally.

Instead of simply tracking the largest Australian stocks, it tilts toward companies with strong profitability metrics and balance sheet strength. That quality filter can help investors avoid some of the more cyclical or weaker names in the index.

The Betashares Australian Quality ETF ensures the portfolio has domestic exposure, while still emphasising resilience and long-term earnings power. This fund was recently recommended by analysts at Betashares.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Finally, every modern portfolio can benefit from a growth pick.

The Betashares Global Robotics and Artificial Intelligence ETF focuses on stocks involved in robotics and artificial intelligence, including the likes of Intuitive Surgical (NASDAQ: ISRG), Keyence, and Nvidia. These businesses sit at the forefront of automation, machine vision, and AI-driven innovation.

While thematic ETFs can be volatile, allocating a portion of capital to a structural growth theme allows investors to participate in transformative industries without having to pick individual winners. The team at Betashares also recently recommended this fund.

The post The ultimate 4-ETF portfolio for ASX investors in 2026 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 Apple, Intuitive Surgical, Microsoft, Nvidia, Tesla, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, 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.

The ASX tech share space has been a painful place to be invested over the last few months. Some investors have decided to hit the sell button. But, that’s not the strategy I’d choose to go with right now.

I think it’s important not to be too influenced by the share price movements. I wouldn’t buy something just because it has gone up in value and I wouldn’t sell something just because it has gone down.

The cliché phrase to make money with the share market is ‘buy low, sell high’ not ‘buy high, sell low’.

So, there are a few strategies I’d think about in this situation.

Stick with it

It’s not ideal to see our portfolio values fall, particularly when the decline is around 50% (or more).

However, the huge drops we’re seeing don’t necessarily mean there has been a deterioration of business profitability. Yes, AI may affect some businesses and industries. But, don’t forget that AI could also assist profitability at certain companies that have been sold off.

Either way, Warren Buffett – one of the world’s greatest investors – once made this very astute observation:

The stock market is a device to transfer money from the impatient to the patient.

It’s at times like this that I think investors need to be patient with good businesses/investments, even when share prices fall.

There are certain times when share prices look expensive and there are times when share prices become dramatically cheaper.

For me, ASX tech share volatility is not a bad thing, instead I think it’s a great opportunity to buy shares at a much cheaper price.

Look for (ASX) share opportunities

Bear markets can be stressful times, but for patient investors they seem like the best time to invest.

As Warren Buffett once said:

If you expect to be a net saver during the next five years, should you hope for a higher or lower stock market during that period?

Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall.     

Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.

Buying at lower prices can help unlock bigger long-term returns and create better margins of safety for investors. I’m looking at ASX tech share names like TechnologyOne Ltd (ASX: TNE) and Xero Ltd (ASX: XRO).

I also try to only buy investments that I’d be excited to buy more at cheaper prices. That way, declines can be seen as an opportunity (and hopefully fairly short-term) for investors.

Look at ASX defensive shares

I believe investors should regularly put money towards building their portfolio. If investing in heavily sold-off ASX tech share seems too risky, then investing in defensive areas of the Australian economy could be more reassuring.

Names like Telstra Group Ltd (ASX: TLS), Coles Group Ltd (ASX: COL), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES), APA Group (ASX: APA) and so on could be smart buys, in my view.

If they can deliver resilient profits then the share prices could hold up better than other areas of the market, as we’ve already seen over the last few months.

The post 3 ways to play the ASX tech share sell-off appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Technology One and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One, Washington H. Soul Pattinson and Company Limited, Wesfarmers, and Xero. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, Washington H. Soul Pattinson and Company Limited, and Xero. The Motley Fool Australia has recommended Technology One and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

These 2 ASX dividend shares are very different from each other. Different sectors. Different drivers.

But both Santos Ltd (ASX: STO) and Sonic Healthcare Ltd (ASX: SHL) are quality companies and now sit at more compelling prices.

For investors chasing a mix of income and potential upside, the 2 ASX dividend shares could be worth a closer look.

Santos Ltd (ASX: STO)

The first ASX dividend share has found fresh momentum, climbing about 8% this year to $6.70 as oil prices rebound and investors rotate back into energy.

The story is shifting. Santos is emerging from a heavy spending phase just as major projects near completion. That timing matters.

At its core, the ASX dividend share owns long-life oil and LNG assets across Australia, Papua New Guinea, Timor-Leste, and the US. LNG under long-term contracts helps steady cash flow when spot prices swing.

Now the growth projects loom large. Barossa LNG and Alaska’s Pikka oil development are edging toward first production. If delivered on time and on budget, they should lift output, free cash flow, and earnings power. In a few years, Santos could look leaner, higher-margin, and more cash-generative.

Income adds to the appeal. The stock currently offers a dividend yield of around 5.4%, well above the broader market. Management has tightened its capital return framework, linking dividends directly to free cash flow rather than stretching the balance sheet. That’s more disciplined — but not immune to commodity cycles.

Still, if prices hold and projects deliver, Santos offers income plus upside. Consensus broker targets sit around $7.22, an 8% capital upside from here, before dividends. The team at Macquarie has an outperform rating and a 12-month price target of $7.77, which would be a 16% return from the current share price.

Sonic Healthcare Ltd (ASX: SHL)

This ASX dividend stock isn’t the flashy growth name stealing headlines. Sonic Healthcare is the steady compounder. The ASX dividend share that keeps delivering.

This is a defensive business by design. When the economy slows, people still need blood tests, biopsies, and scans. Diagnostic demand is essential, recurring, and far less sensitive to consumer confidence than most sectors.

The ASX dividend share’s pathology and imaging network stretches across Australia, Europe, the US, and the UK. That global footprint gives it multiple earnings engines and a natural hedge if one region softens. Few ASX healthcare shares can match that diversification.

The structural tailwinds are hard to ignore. Ageing populations and the shift toward preventative healthcare mean more testing, not less. Higher volumes support steady cash flow, while management’s disciplined acquisition strategy has added scale without blowing out margins.

Then there’s the dividend.

The $10 billion ASX dividend share pays shareholders twice a year and has a long history of maintaining — and gradually increasing — payouts. Bell Potter expects partially franked dividends of 109 cents per share in FY26 and 111 cents in FY27.

At a recent share price of $21.20, that implies yields of roughly 5.1% and 5.2%. Brokers are cautiously optimistic, with an average 12-month price target of $25.65, suggesting a potential upside of 21%.

Analysts at Bell Potter have a buy rating and a $28.50 price target on its shares. This suggests a 34% upside.

The post 2 quality ASX dividend shares trading at a discount appeared first on The Motley Fool Australia.

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

The Treasury Wine Estates Ltd (ASX: TWE) share price is in focus today after the company reported a 39.6% drop in EBITS to $236.4 million, meeting previous guidance. Statutory net profit after tax (NPAT) swung to a $649.4 million loss due to a significant non-cash impairment, while underlying performance of key brands remained positive.

What did Treasury Wine Estates report?

• Net Sales Revenue (NSR) fell 16.0% to $1.3 billion.
• EBITS dropped 39.6% to $236.4 million; EBITS margin shrank to 18.2% from 25.3%.
• NPAT before material items and SGARA was $128.5 million, down 46.3%.
• Statutory NPAT loss of $649.4 million, reflecting a non-cash impairment of US-based assets.
• Cash conversion reached 82.4%; net debt to EBITDAS (leverage) at 2.4x.
• Interim dividend suspended for FY26 to prioritise capital preservation.

What else do investors need to know?

Treasury Wine Estates is taking steps to respond to softer trends in the US and China by actively reducing customer inventory holdings and restricting shipments linked to parallel import activity. The company finalised an agreement with US distributor RNDC for the closure of its California operations in 2025, which includes an inventory repurchase and compensation arrangement.

The TWE Ascent transformation program remains a core focus, targeting $100 million in annual cost savings over 2-3 years. The company expects to deliver these benefits through changes to its brand portfolio, operating model, and cost optimisation, with more details to come at the June 2026 investor day.

What did Treasury Wine Estates management say?

Chief Executive Officer Sam Fischer said:

Today’s results come at a time when we are already making meaningful progress with the decisive actions required to return TWE to a path of sustainable, profitable growth. Our focus is firmly on the future to strengthen execution and ensure we build a stronger, more resilient business for the long term.

TWE Ascent is the key enabler of this reset. It is a disciplined, multi-year transformation program designed to sharpen our portfolio, simplify the organisation and optimise our cost base, and I am pleased with the progress we have made to date.

Encouragingly, we are seeing our key brands continue to perform in the marketplace and resonate strongly with consumers, reinforcing confidence in the strength of our portfolio and our ability to deliver improved performance as we execute the transformation of the business.

What’s next for Treasury Wine Estates?

Looking ahead, Treasury Wine Estates is prioritising efficient execution across markets, focusing on cash flow and accelerating the benefits of the TWE Ascent program. The company expects its second-half EBITS to exceed the first half, aided by improved momentum in California as distribution transitions are completed.

Management has suspended the interim dividend to preserve capital and further reduce leverage, with an eye towards resumption depending on the pace of financial performance improvement. Full-year leverage is expected to rise modestly due to lower earnings and reduced cash conversion, but the company remains confident in its strategy to build a more resilient future.

Treasury Wine Estates share price snapshot

Ove the past 12 months, Treasury Wine Estates shares have declined 52%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

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The post Treasury Wine Estates posts $649.4m loss, suspends dividend as transformation accelerates appeared first on The Motley Fool Australia.

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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 positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. 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.

Xero Ltd (ASX: XRO) shares have had a tumultuous run.

The cloud accounting software company plunged to a 3-year low of $72.26 in early trade on Friday, marking its weakest level since 2023. The stock later recovered slightly but still finished the session down 4.46% at $73.49, reflecting continued heavy selling pressure.

After once trading as high as $196.52 in June 2025, Xero’s decline has been staggering, to say the least.

But after such heavy losses, can Xero shares recover from here?

Let’s take a closer look.

Tech sector panic is driving the fall

Thankfully, Xero’s weakness is not happening in isolation.

The S&P/ASX All Technology Index (ASX: XTX) has plunged roughly 22% over the past month, as investors reassess the outlook for technology stocks. Across the globe, markets have been rattled by concerns about the artificial intelligence (AI) disruption.

Recent media reports show Wall Street falling as the tech rout intensified on AI concerns. Investors are reassessing which industries will benefit and which may be disrupted. Software stocks have been hit particularly hard.

In the US, the S&P 500 software index has fallen sharply as investors seek clearer returns on heavy AI spending. There are growing concerns that businesses may struggle to justify large investments if productivity gains fail to materialise quickly.

Back at home, investors are starting to question Xero’s long-term growth outlook. Given the stock was already trading on a premium valuation, that multiple has now compressed quickly.

What about Xero’s fundamentals?

Xero recently highlighted ongoing growth opportunities in AI and its expanding US presence following the Melio acquisition. Management continues to target long-term margin expansion and subscriber growth.

Melio is not expected to reach adjusted EBITDA breakeven on a run-rate basis until the second half of FY28.

More broadly, investors are rotating away from growth stocks until there’s greater clarity on how AI will affect company earnings and the economy.

What are brokers saying?

Despite the sell-off, several brokers still see significant upside.

Macquarie has retained an outperform rating and previously lifted its price target to around $234 per share. It believes Xero remains well positioned for long-term global growth.

Jefferies has taken a more cautious stance, trimming its target to roughly $101, reflecting near-term margin pressure and integration risks from Melio.

Overall, the average broker target still sits above $100, suggesting analysts believe the recent sell-off may have gone too far.

Can Xero bounce back?

History shows that high-quality software companies can recover strongly once sentiment improves. But that recovery usually requires two things. Stabilisation in the broader tech sector and strong evidence that earnings growth is accelerating.

If AI fears subside and Xero continues executing on subscriber growth, US expansion, and margin improvement, a rebound is more than likely.

The post Can Xero shares bounce back after crashing to a 3-year low? 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 Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.