Aurizon Holdings Ltd (ASX: AZJ) shares are pushing higher in early trade on Wednesday.

At the time of writing, the ASX 200 share is up 2.5% to $4.28.

What is lifting this ASX 200 stock?

This morning, the rail freight operator released a business update ahead of its presentation at the Macquarie Australia Conference.

Investors appear to be responding positively to Aurizon reaffirming its FY 2026 guidance despite some fuel cost timing pressures.

According to the release, Aurizon continues to expect group underlying EBITDA of $1.68 billion to $1.75 billion for FY 2026.

The company also reaffirmed its full year dividend guidance of 22 cents to 23 cents per share.

This appears to have reassured the market, particularly given ongoing volatility in fuel markets and recent weather-related disruptions.

Volume growth across key divisions

Aurizon also provided investors with a ten-month volume update to 30 April 2026.

Network volumes in the Central Queensland Coal Network reached 173.5 million tonnes, which is up 2.6% on the prior corresponding period.

Coal volumes increased 0.8% to 158.4 million tonnes. This is despite the impact of adverse weather on customer mine production in Central Queensland during the March quarter.

The strongest volume growth came from Bulk and containerised freight.

Bulk volumes rose 6.7% to 48.4 million tonnes, supported by higher grain volumes and the start of the BHP Group Ltd (ASX: BHP) Copper South Australia contract.

Containerised freight volumes increased 13.2% to 194,000 TEUs. This was driven by growth from new and existing customers.

Fuel cost impact manageable

Aurizon also addressed fuel supply and pricing pressures.

The ASX 200 share said its operations have continued without interruption, with its incident management team taking proactive steps in March to ensure ongoing diesel supply across its national network.

Aurizon noted that most of its fuel costs are recovered through customer contracts with monthly fuel adjustment mechanisms.

However, a small number of contracts, mainly in the Bulk business, use quarterly fuel adjustment mechanisms. Based on current pricing, this is expected to create a temporary negative EBITDA impact of approximately $10 million in FY 2026.

Importantly, Aurizon said this is a timing issue and the increased cost should be recovered in future quarterly adjustments if fuel prices reduce.

The ASX 200 share has kept its capital expenditure guidance unchanged. This includes non-growth capex expected to be between $580 million and $600 million and growth capex forecast at $100 million to $150 million.

The post Why are investors bidding this ASX 200 share higher today? appeared first on The Motley Fool Australia.

More reading

• Is this ASX 200 stock a buy, hold or sell after rising 15% year to date?

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 Macquarie Group. The Motley Fool Australia has positions in and has recommended 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.

Computershare Ltd (ASX: CPU) shares are having a solid start to the day and are pushing higher in morning trade on Wednesday.

At the time of writing, the ASX 200 stock is up over 2% to $31.98.

This follows the release of an update from the share registry company after the market close on Tuesday.

ASX 200 stock rises on update

Investors appear to be responding positively to Computershare reaffirming its FY 2026 earnings guidance.

According to the release, the company continues to expect management earnings per share (EPS) of around 144 US cents in FY 2026. This would represent growth of approximately 6% on the prior corresponding period.

This guidance was previously upgraded in February and has now been maintained following its latest trading update.

Margin income guidance upgraded

A key positive in the update was Computershare’s outlook for margin income.

The company revealed that client balances have continued to grow in the second half of FY 2026.

Average client balances for the year are now expected to be US$500 million higher than previously forecast, driven by Corporate Actions activity.

As a result, Computershare has upgraded its margin income guidance to around US$740 million for the year.

The average weighted yield for FY 2026 is still expected to be 2.37%, in line with the company’s February update.

Core businesses performing well

Computershare also provided updates across several of its divisions.

In Issuer Services, management advised that register maintenance continues to perform consistently, while Corporate Action volumes are broadly in line with expectations. The pipeline is also increasing.

Its Employee Share Plans business is seeing continued growth in recurring client-paid fee revenue, reflecting greater use of equity in employee remuneration.

Trading revenue in that division is also up in the second half compared to the prior corresponding period. This is being supported by more transactions from energy sector clients.

Corporate Trust growth

Management revealed that the Corporate Trust business is also performing well.

It reported that issuance volumes and fee revenues are higher in the second half compared with the prior corresponding period.

The company also noted that Ginnie Mae document custodian approval, secured in March, supports further growth in this business.

Despite today’s move higher, Computershare shares are still down approximately 18% over the past 12 months.

The post Guess which ASX 200 stock is charging higher on guidance update appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Computershare affirms FY26 earnings guidance and upgrades outlook
• 2 ASX ETFs that could be a perfect for a tech rally

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 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.

ASX 200 stock Aristocrat Leisure Ltd (ASX: ALL) has struggled thus far in 2026. 

The global gaming content creation company has fallen more than 16% since the start of the year. 

However it now appears that this ASX 200 company is a value play. 

Over the last couple of weeks it has drawn several positive outlooks from brokers and experts.

Yesterday, the team at Bell Potter were the latest to update their outlook. 

Here’s what the broker had to say. 

Market share in tact 

In the recent report from Bell Potter, the broker highlighted that Aristocrat Leisure games remained highly compelling to players in the North American market in March 2026. 

According to the broker, the company’s titles comprised 29% (31% Dec-25 qtr) of the top New Premium Leased & WAP (PLW) game rankings behind rival Light & Wonder Inc (ASX: LNW) at 47%. 

ALL has recently launched three new franchises into PLW market, some of which are Core market favourites have started off with strong performance in March 2026. In the top New Core game rankings, ALL has declined to 39.6% share (50.2% Dec-25), followed by LNW with 26.5% share (20% Dec-25), the second highest supplier in the rankings. 

Performance from ALL’s Phoenix Link continues to standout, with the title performing close to 2.4x floor average. Overall, these findings suggest positive near-term growth in ALL’s PLW and Core markets.

Positive industry conditions for this ASX 200 stock

Bell Potter also noted that overall, commentary from listed US casino operators remains in line with ALL’s February 2026 comments that “capital budgets appear supportive”. 

Operators are broadly positive about the US gambler and downplaying the impact of higher fuel costs on consumers. 

For the states (mature) that have reported, GGR grew 0.6% YoY in March 2026, a moderation in growth from prior periods but not alarming.

Price target reduced

Based on this guidance, Bell Potter has slightly reduced its earnings per share forecast. 

It has lowered EPS by -3%/-4%/-4% over FY26/27/28e. 

Additionally, it has reduced its share price target to $61.00 (previously $70.00). 

However, from yesterday’s closing price of $47.88, this indicates an upside potential of approximately 28%. 

The broker has also retained its buy recommendation on this ASX 200 stock. 

We expect ALL’s leading R&D investment will drive market share gains. Top 2 game performance observed in both the core sales and premium gaming ops markets leaves us confident that ALL can grow the install base >4.0k per year and grow global shipments. Further, with leverage standing at 0.2x, ALL has substantial M&A firepower to boost growth inorganically.

The post Down 16% year to date, Bell Potter thinks now is the time to buy low on this ASX 200 stock appeared first on The Motley Fool Australia.

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• Have beaten-down ASX gaming stocks finally hit a bottom?
• Buy, hold, sell: Aristocrat, TPG Telecom, and Westpac shares
• 3 amazing ASX 200 shares to buy with $5,000 in May
• This ASX gaming company could deliver 20%+ returns: RBC Capital Markets
• Why I’d invest $4,000 into these ASX 200 shares

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 Light & Wonder Inc. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This high-quality ASX share has been moving higher, climbing 10% over the past month to $175.71 at the time of writing. Shares in REA Group Ltd (ASX: REA) are also up around 28% from its 52-week low in late February.

Even so, the broader picture is less convincing. REA shares remain down about 5% year to date and roughly 29% over the past 12 months. To put it in perspective, the S&P/ASX 200 Index (ASX: XJO) rose 6.4% over the same period.

So, is this the start of a longer-term recovery or just a temporary bounce?

Dominant property market position

When it comes to dominant digital platforms, REA Group is hard to beat. The ASX share sits at the centre of Australia’s property market through realestate.com.au, giving it a powerful competitive position.

Real estate agents need visibility to attract buyers, and REA controls much of that traffic. This dynamic has enabled the company to steadily increase prices through premium listings and depth products, even when property transaction volumes fluctuate.

It’s a high-margin, scalable business model. Because the platform is digital, incremental revenue tends to flow through to profits at an attractive rate.

Solid tailwind ahead

That strength was evident in its recent half-year result. Core revenue rose 5% to $916 million, operating profit (EBITDA) increased 6% to $569 million, and net profit climbed 9% to $341 million.

Looking ahead, management of the ASX share expects buy yield growth of between 12% and 14% in FY26, which should provide a solid tailwind for earnings.

Beyond its domestic dominance, REA also has international growth opportunities. Its expansion into offshore markets adds another lever for long-term growth and reduces reliance on the Australian housing cycle alone.

Impact interest rates and inflation

However, risks remain.

The performance of the company and the ASX share is still closely tied to property market conditions. Higher interest rates, persistent inflation, or weaker housing demand could weigh on listing volumes and advertising spend. A softer housing market could also see fewer transactions, limiting near-term revenue growth.

At the same time, affordability pressures may influence how often Australians move or upgrade properties, which can impact activity levels across the platform.

What next for the ASX share?

Despite these concerns, broker sentiment remains broadly positive.

According to data from TradingView, 12 out of 16 analysts rate the ASX share as a buy or strong buy. The average 12-month price target sits at $211.89, implying potential upside of around 20% from current levels.

Citigroup has also reiterated its buy rating, with a price target of $199, suggesting a more modest but still meaningful upside of about 14%.

Foolish Takeaway

The bottom line is that REA Group remains a high-quality ASX business with strong competitive advantages and solid long-term growth drivers.

While the recent share price lift is encouraging, the key question is whether property market conditions will support sustained growth.

For now, the recovery of the ASX share appears to be gaining traction, but investors will be watching closely to see if the momentum can continue.

The post REA Group is on the rise. Is a comeback underway? appeared first on The Motley Fool Australia.

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• Emerald Resources gets the green light for Dingo Range Gold Project
• Atlas Arteria directors urge investors to reject IFM’s takeover offer
• DigiCo Infrastructure REIT slashes debt after Chicago asset sale

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 Perpetual Ltd (ASX: PPT) share price is in focus today after the company outlined its key financial and strategic highlights at the Macquarie Australia Conference. Perpetual reported $697.9 million in revenue for the first half of FY26, with $219.2 billion in Assets Under Management (AUM) as at 31 March 2026.

What did Perpetual report?

• Revenue of $697.9 million for 1H26 (up from $1,373.0 million FY25 full year)
• Assets Under Management (AUM) of $219.2 billion
• Market capitalisation of $2.1 billion as at 31 December 2025
• Dividend of 97.1 cents per share (cps) for 1H26, with a payout ratio of 60%
• Funds Under Administration of $1.3 trillion across key platforms
• Diluted EPS on UPAT: 97.1cps for 1H26

What else do investors need to know?

Perpetual has announced the sale of its Wealth Management division to Bain Capital Private Equity for an upfront cash payment of $500 million, with potential for a further $100 million based on business performance. The transaction aims to simplify Perpetual’s business, strengthen its balance sheet, and reduce net debt to EBITDA to approximately 0.2 times after completion.

Following the sale, Perpetual will focus on Asset Management and Corporate Trust. The business highlighted steady growth in UPBT (Underlying Profit Before Tax) in Corporate Trust, strong brand presence, and a robust distribution network. The company is also delivering on its Simplification Program, targeting cost savings of $70–$80 million per annum by the end of FY27.

What did Perpetual management say?

CEO and Managing Director Bernard Reilly said:

Post-sale, Perpetual will be a simpler, stronger and more focused company. Our clear strategy is to simplify the business, deliver operational excellence and invest for growth.

What’s next for Perpetual?

Looking ahead, Perpetual is investing in its multi-boutique Asset Management model with a strong global footprint and an expanded product offering, including ETFs. The company also aims to maintain its leadership in Corporate Trust services through service excellence, digital transformation, and new partnerships.

Key initiatives for the coming year include completing the Wealth Management sale, driving efficiency through cost reduction, and accelerating growth opportunities, especially in global asset management and digital solutions.

Perpetual share price snapshot

Over the past 12 months, Perpetual shares have risen 1%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Perpetual 1H26 earnings: strategy shift and Wealth Management sale appeared first on The Motley Fool Australia.

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• BWP Group launches $228 million entitlement offer
• REA Group is on the rise. Is a comeback underway?
• Emerald Resources gets the green light for Dingo Range Gold Project
• Atlas Arteria directors urge investors to reject IFM’s takeover offer
• DigiCo Infrastructure REIT slashes debt after Chicago asset sale

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 Emerald Resources (ASX: EMR) share price is in focus today as the company reported it has secured final works approval for the Dingo Range Gold Project and committed to major capital equipment purchases, marking significant steps toward expanding its gold operations.

What did Emerald Resources report?

• Received final works approval for the 100%-owned Dingo Range Gold Project in Western Australia
• Committed to purchase two 8,000kW Metso SAG Mills and a crushing circuit, valued at approximately A$30 million
• Dingo Range Project is now fully permitted and development-ready
• Camp facilities completed and ready to accommodate construction and operational staff
• Ongoing drilling programs to support resource updates, with work on a Maiden Ore Reserve advanced
• Strong balance sheet: A$337.8 million cash, A$39.2 million bullion, and A$22.3 million in listed investments (as at March 2026)

What else do investors need to know?

The Dingo Range Gold Project’s approval means Emerald now has the green light to start construction, with all regulatory hurdles cleared. The company’s bold purchase of key processing equipment signals its confidence in both the Dingo Range and Memot Gold Projects, targeting future growth in Australia and Cambodia.

Emerald continues to explore and develop its Australian and Cambodian gold projects, aiming to build on the strong reserve bases at Dingo Range and Memot. Long-term, management aims to position the business as a diversified gold producer, reducing risk across multiple jurisdictions.

What did Emerald Resources management say?

Managing Director Morgan Hart said:

Emerald is pleased that the Works Approval has been granted for Dingo Range and we are now fully permitted for development and operations which is a significant milestone for the Company.

The commitment to purchase long lead capital equipment is the second key construction and infrastructure milestone at Dingo Range following the completion of the camp.

The Board and Management of Emerald have worked closely with the team at Metso on previous development projects, including the 100% Okvau Gold Mine and are very pleased to continue the relationship on the development of the Dingo Range and Memot Gold Projects. Securing this long lead capital equipment on a very competitive delivery schedule assists with de-risking the development timeline for both projects and is an important step in the Company’s growth trajectory to achieve its strategic objective of becoming a multi-mine 300K-400Kozs gold producer across two continents.

What’s next for Emerald Resources?

With all approvals granted, Emerald can now push ahead with developing the Dingo Range Gold Project and progress its Memot Project in Cambodia. The company expects delivery of its major processing equipment in about 12–13 months, aligning with its plan to become a multi-mine gold producer.

Ongoing drilling and exploration will support updated resource estimates and future reserve growth, while Emerald maintains its focus on strong ESG compliance and regional community engagement.

Emerald Resources share price snapshot

Over the past 12 months, Emerald Resources shares have risen 32%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Emerald Resources gets the green light for Dingo Range Gold Project appeared first on The Motley Fool Australia.

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• BWP Group launches $228 million entitlement offer
• REA Group is on the rise. Is a comeback underway?
• Perpetual 1H26 earnings: strategy shift and Wealth Management sale
• Atlas Arteria directors urge investors to reject IFM’s takeover offer
• DigiCo Infrastructure REIT slashes debt after Chicago asset sale

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.

WiseTech Global Ltd (ASX: WTC) shares have rallied strongly from their lows.

So much so, the logistics solutions technology company’s shares are up 17% since this time last month.

But if you thought you were too late to invest, you might be wrong.

That’s because Bell Potter believes its shares could continue to rise strongly from where they currently trade.

What is the broker saying?

Bell Potter was pleased to see the company reaffirm its guidance on Tuesday. This means the company remains on track to achieve the broker’s estimates for the year. It said:

WiseTech released a presentation for a broker conference and the key take-out was reaffirmation of the FY26 EBITDA and EBITDA margin guidance – US$550-585m (vs BPe US$564m) and 40-41% (vs BPe 40.1%). The key new piece of news was the company also provided guidance for underlying EBITDA and EBITDA margin of US$598.5-637.5m (vs BPe US$612m) and 41-46% (vs BPe 43.5%).

This underlying guidance implies one-off costs b/w $48.5-$52.5m – comprising US$11-15m in M&A costs and US$37.5m in restructure costs – which was slightly more than the US$45- 50m flagged at the H1 result in February. Notably there was no mention of the redundancy costs related to the flagged 2,000 job reductions so we figure these will be disclosed in or around the FY26 result in August along with the spread of those costs between FY26 and FY27 (assuming it is spread across both years).

Big potential returns

In response to the guidance update, Bell Potter has reaffirmed its buy rating and $78.75 price target on WiseTech Global’s shares.

Based on its current share price of $45.75, this implies potential upside of 72% for investors over the next 12 months.

Bell Potter sees potential catalysts ahead, which could support a re-rating. This includes its guidance for FY 2027, which Bell Potter believes could be stronger than its current estimates. It concludes:

There is no change in our $78.75 target price which we only recently updated. Our PE ratio and EV/EBITDA valuations are generated using our FY27 forecasts and with no change in these forecasts there is no change in the valuations. Our target price remains a significant premium to the share price so we retain our BUY recommendation.

The next update and potential catalyst for the share price is the FY26 result in August where, assuming the guidance is met, key focus will be on the guidance for FY27. We note our FY27 revenue and EBITDA forecasts of US$1,567m and US$728m imply an EBITDA margin of 46.5% which in our view could be conservative given the underlying guidance for FY26 is b/w 41-46% and the exit margin is likely to be towards the top end of this range.

The post Why WiseTech shares could shoot 70% higher appeared first on The Motley Fool Australia.

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

The Atlas Arteria Group (ASX: ALX) share price is in focus today after the company’s independent directors recommended investors reject IFM’s hostile takeover offer, stating the bid is too low and highly conditional.

What did Atlas Arteria report?

• IFM’s hostile takeover offer is set at A$4.75 per stapled security (potentially A$5.10 if IFM’s interest exceeds 45% before close).
• Offer price is below Atlas Arteria’s previous closing price of A$4.79 (5 May 2026).
• The offer premium is less than 10% compared to the pre-offer closing price and around 3% above the 12-month average price.
• Atlas Arteria reaffirms distribution guidance of 40.0 cents per security for 2026.
• Each independent director intends to reject IFM’s offer for their own ALX securities.

What else do investors need to know?

The board considers IFM’s offer opportunistic, given recent market volatility and the share price trading well above the offer in the past year. Independent directors say the offer undervalues the company’s global toll road portfolio and future growth opportunities. The company also notes IFM’s current offer comes with over 50 separate sub-conditions, some of which are already incapable of being satisfied.

Atlas Arteria has issued a Right of First Offer in relation to its Chicago Skyway interest, a move unrelated to IFM’s bid but relevant to the bid’s conditions. The company continues to explore value-enhancing initiatives for securityholders, including asset recycling and potential strategic alternatives for its US assets.

What did Atlas Arteria management say?

Chair Debbie Goodin said:

This hostile, highly conditional takeover offer from IFM is opportunistic and materially undervalues Atlas Arteria. The Offer is designed to accelerate IFM’s creep to effective control of Atlas Arteria without paying a fair premium to securityholders. The Independent Directors of Atlas Arteria recommend that securityholders reject the Offer. The Boards and management remain focused on continuing to deliver on the strategy to optimise company value and create value for all securityholders.

What’s next for Atlas Arteria?

Atlas Arteria is preparing a detailed Target’s Statement for securityholders, which will include an independent expert’s report and set out the board’s formal recommendation to reject IFM’s offer. The statement will be provided at least 14 days before the offer closes.

The company says it will continue to update investors on material developments and remains focused on its strategy to optimise its asset portfolio and deliver distribution guidance.

Atlas Arteria share price snapshot

Over the past 12 months, Atlas Arteria’s shares have declined 7%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Atlas Arteria directors urge investors to reject IFM’s takeover offer 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.

ASX gaming stocks have struggled to find their footing in 2026.

Shares in Aristocrat Leisure Ltd (ASX: ALL) are down around 17% year to date, while Light & Wonder Inc (ASX: LNW) has fallen about 27% over the same period. By comparison, the S&P/ASX 200 Index (ASX: XJO) is essentially flat, slipping just 0.4%.

Despite the weakness, brokers remain broadly constructive on both names. The question for investors is whether sentiment has fallen too far and whether the gaming sector is quietly setting up for a rebound.

Aristocrat: Continued US growth

Aristocrat, a roughly $28 billion ASX gaming heavyweight, has long been considered one of the highest-quality operators in the sector. The company generates most of its earnings from gaming machines and digital content, with a strong presence in the lucrative US market.

While sentiment around gaming stocks has softened, the underlying business performance has been far more resilient. Demand for gaming machines and casino content in North America remains steady, which is crucial given that this region drives the bulk of Aristocrat’s profits.

Recent industry data has reinforced that stability. Analysts at Macquarie Group Ltd (ASX: MQG) have pointed to continued year-on-year growth in US casino gaming activity, a positive indicator for Aristocrat’s core land-based operations.

On top of that, the company’s digital division continues to expand, providing exposure to the fast-growing online gaming market. This diversification helps smooth earnings across cycles.

Capital management is another support. Management of the ASX gaming stock has remained disciplined, with ongoing share buybacks and efforts to strengthen the balance sheet, which should support earnings quality over time.

Broker sentiment remains positive. UBS Group has reiterated its buy rating on Aristocrat, even after trimming its price target slightly to $68.90. That still implies potential upside of close to 50% from current levels.

Light & Wonder: Multiple growth drivers

Light & Wonder presents a similar but more diversified investment case.

The company operates across land-based gaming, iGaming, and social gaming through its SciPlay division. This multi-channel structure allows it to benefit from both traditional casino demand and the fast-growing digital gaming industry.

That blend of physical and digital exposure gives Light & Wonder access to multiple growth drivers at once, which is a key reason analysts continue to monitor the stock closely. Macquarie has even named it its top pick in the gaming sector, citing its strong competitive position and “wide moat from disruption” in a highly competitive industry.

The upside case is also significant. Jarden has a buy rating on the ASX gaming stock with a price target of $190, compared with its current level of around $112.81. That implies potential upside of roughly 68%.

Foolish Takeaway

The key takeaway is that while sentiment across ASX gaming stocks has been weak, the fundamentals have held up better than the share prices suggest.

Whether this marks a true bottom remains uncertain, but with earnings resilience, digital growth, and strong broker support, both Aristocrat and Light & Wonder are starting to look more interesting than their share price charts alone would suggest.

The post Have beaten-down ASX gaming stocks finally hit a bottom? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Aristocrat, TPG Telecom, and Westpac shares
• 3 amazing ASX 200 shares to buy with $5,000 in May
• This ASX gaming company could deliver 20%+ returns: RBC Capital Markets
• Why I’d invest $4,000 into these ASX 200 shares
• 6 ASX 200 shares with strengthened buy ratings this week

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 positions in and has recommended Light & Wonder Inc and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation is one of the best ways to invest for passive income, in my opinion. For working people, it gives them a lower tax rate than their ‘normal’ earnings. For retirees, superannuation earnings could potentially be tax-free.

If someone has significant money in superannuation, they could unlock $10,000 of monthly passive income (or even more).

I’m sure most people reading this would love for their superannuation to pay them $120,000 per year of passive income.

A key question is how much is needed in superannuation for that level of cash flow.

How much is needed to generate $10,000 monthly passive income?

It’ll take a sizeable sum to make that much money, but the exact amount will depend on the size of the dividend yield. The bigger the dividend yield, the less that needs to be invested, though higher yields may not be safer and it could also mean less capital growth.

Nonetheless, there are plenty of appealing options for good dividend yields across the ASX share market, so I’d be very willing to invest in a business that has a dividend yield of 7% or more.

Let’s look at three different scenarios. One where the portfolio dividend yield is 4%, one where it’s 5.5% and one where it’s 7%.  

To make $120,000 of annual passive income from superannuation (or outside super) with a 4% dividend yield, it would require a portfolio value of $3 million.

If the portfolio has a 5.5% dividend yield, then an investor would need a portfolio value of $2.18 million.

Finally, with a dividend yield of 7%, investors would need a portfolio value of $1.71 million.

Which ASX shares I’d buy for dividend

I think there are a number of compelling options that offer different dividend yield levels.

For example, businesses like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES) and Lovisa Holdings Ltd (ASX: LOV) offer a lower but growing dividend yield.

Businesses with a mid-range yield includes Rural Funds Group (ASX: RFF), Centuria Industrial REIT (ASX: CIP), L1 Long Short Fund Ltd (ASX: LSF) and MFF Capital Investments Ltd (ASX: MFF).

The higher-yield options I’d consider include WCM Global Growth Ltd (ASX: WQG), Hearts and Minds Investments Ltd (ASX: HM1), Charter Hall Long WALE REIT (ASX: CLW), Future Generation Australia Ltd (ASX: FGX) and Future Generation Global Ltd (ASX: FGG).

The post How much is needed in superannuation to target $10,000 of monthly passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Future Generation Global, Hearts And Minds Investments, L1 Long Short Fund, Mff Capital Investments, Rural Funds Group, Washington H. Soul Pattinson and Company Limited, and Wcm Global Growth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Rural Funds Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Lovisa, Mff Capital Investments, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.