Treasury Wine Estates Ltd (ASX: TWE) shares are in the red on Tuesday after investors were handed another leadership update.

At the time of writing, the Treasury Wine share price is down 2.82% to $4.48.

The move adds to a rough period for shareholders. The Penfolds owner is now down around 15% in 2026 and 46% over the past year.

The latest pressure comes as the company prepares for a major change to how the business is run.

CFO exit brought forward

According to the release, Boxer’s retirement has been moved forward by a month.

His departure was announced in March and had been scheduled for 30 September. This was one day before Treasury Wine’s new regional operating model takes effect on 1 October.

He is now set to leave on 30 June, after six years with the company.

Deputy CFO Justin Pipito will reportedly become interim CFO and strategy officer from 1 June.

Treasury Wine did not give a reason for the earlier exit date.

A business in the middle of a reset

Treasury Wine is also working through a broader restructure after a difficult stretch in key markets.

The company announced in April that it would shift to a regional operating model across the Americas, Australia and New Zealand and Europe, Greater China, and emerging markets.

The restructure also means Penfolds will no longer sit as a stand-alone division.

It is a significant change for the business, given Penfolds has long been Treasury Wine’s flagship luxury wine brand.

Management said the new structure is designed to improve efficiency and accountability across each region.

The update landed well with the market at the time. Treasury Wine shares rose 16.54% after the company reaffirmed guidance and pointed to stronger depletions in China and the United States.

Depletions refer to shipments from distributors and wholesalers to customers such as retailers, bottle shops, and restaurants. They can give a cleaner read on underlying demand than shipments into warehouses.

Why the share price is still under pressure

Today’s share price fall shows the market still needs more convincing.

Treasury Wine is dealing with softer demand, pressure in the United States, and a difficult global wine market.

It is also trying to rebuild momentum in China after several disrupted years.

There have been some better signs. In April, Treasury Wine said Penfolds depletions rose 40% in China over the Chinese New Year period.

Overall US market depletions were also up 9.1% on the previous corresponding period.

But after a 45% fall in the share price over the past year, the market still wants stronger proof that the reset is working.

The post Treasury Wine shares slide as another leadership change hits sentiment appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• ASX 200 consumer staples shares outperformed again last week
• 3 ASX 200 shares I’d buy before the market wakes up
• Down 50%: Why this ASX 200 share could be a smart buy before confidence returns
• 3 top ASX dividend shares to buy with $3,000

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 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.

The interest rate on term deposits has risen this year, thanks to the higher RBA interest rate. But I still rate ASX dividend shares as better investments for people who want to generate passive income.

There are two factors that make me want to choose businesses over term deposits. They can offer a higher yield, and they can deliver growth. Both the payout and share price can grow over time.

I’m calling the below ASX dividend shares compelling ideas to buy today.

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust (REIT) that owns farmland across Australia in different states and climate conditions.

The REIT owns a few different types of farms, including almonds, cattle, vineyards, macadamias and cropping. I like the diversification here because it reduces the risk of being overly exposed to one type of farm and gives it more industry areas to look for opportunities.

Rural Funds has a solid distribution yield, currently paying 11.73 cents per unit annually. That translates into a forward distribution yield of 5.9%.

Higher interest rates are a headwind for Rural Funds in the short term, but the business has steadily growing rental income thanks to fixed annual increases for some farms and inflation-linked increases at others.

It looks like a bargain to me because of the discount between the unit (share) price on the ASX and the latest net asset value (NAV). The adjusted NAV was $3.10 as of 31 December 2025, so it’s currently trading at a discount of around 36% to that figure, which is a very attractive discount in my books.

WCM Global Growth Ltd (ASX: WQG)

The other ASX dividend share I want to highlight that’s more attractive than a term deposit is this listed investment company (LIC), which invests in a portfolio of quality global shares.

The idea is that the investment team look for businesses with expanding economic moats (or improving competitive advantages). Companies that become steadily stronger are more likely to deliver pleasing profit growth and shareholder returns, in my opinion.

Another feature that the WCM investment team looks for is a corporate culture that helps improve the economic moat. WCM has specific aspects it looks for, as well as questions for management, that help determine whether the corporate culture is positive.

The LIC’s portfolio has delivered a net return (after fees) of 15.4% since inception in June 2017, helping it fund both a growing dividend and capital growth of the share price.

It is increasing its quarterly dividend every quarter, which is pleasing consistency for shareholders.

The next four quarterly dividends to be officially declared are expected to amount to 9.59 cents per share, which translates into a grossed-up dividend yield of 7.3%, including franking credits.

This ASX dividend share is also trading at a small discount to its net tangible assets (NTA), so I think it’s a good time to invest.

The post Forget term deposits! I’d buy these ASX dividend shares instead appeared first on The Motley Fool Australia.

More reading

• Buy these ASX dividend shares with 6%+ yields
• These ASX dividend shares keep giving investors a pay rise
• How much is needed in superannuation to target a $7,500 monthly passive income?
• How to build a $52,000 annual passive income
• 3 excellent ASX dividend shares for income investors to buy in May

Motley Fool contributor Tristan Harrison has positions in Rural Funds Group and Wcm Global Growth. 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 positions in and has recommended Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The All Ordinaries Index (ASX: XAO) is down 0.6% today, but don’t blame this ASX All Ords silver share.

The outperforming stock in question is Silver Mines Ltd (ASX: SVL).

Silver Mines shares closed yesterday trading for 15.5 cents. In morning trade on Tuesday, shares are changing hands for 16.3 cents apiece, up 4.8%.

This sees the Silver Mines share price up an impressive 63.9% over the last 12 months, racing ahead of the 3.2% one-year gains posted by the All Ords.

Here’s what’s grabbing investor interest again today.

ASX All Ords silver share jumps on land purchase

Silver Mines shares are charging higher after the miner announced that its wholly owned subsidiary, Bowdens Silver, has inked a binding agreement to acquire a parcel of freehold land. The agreement also includes associated water entitlements.

The newly acquired land is strategically located next to Silver Mines’ flagship Bowdens Silver Project, located in New South Wales.

The ASX All Ords silver share noted that, on completion of the latest acquisition, it will own some 3,345 hectares of freehold land. Taken together with its existing leases and land access agreements, this covers the entire Bowdens Silver Project area along with “a substantial surrounding buffer area”.

Silver Mines will pay $12.5 million in cash for the new freehold land parcel, with $1.76 million already having been paid to vendors. The miner will dip into its existing cash reserves to fund the purchase. It expects full settlement of most lots on 24 July.

What did Silver Mines management say?

Commenting on the strategic land acquisition helping lift the ASX All Ords silver share today, Silver Mines managing director Jo Battershill said, “Securing this strategic landholding demonstrates Silver Mines’ confidence in the future development of the Bowdens Silver Project, one of the world’s largest undeveloped silver projects.”

Battershill added:

The acquisition materially strengthens our land holding position around the project area, supporting our long-term development strategy as we progress the redetermination of the Development Consent and Mining Lease approvals.

Importantly, the acquisition delivers a number of strategic benefits to the project, including enhanced water security, biodiversity enhancement opportunities, and flexibility for future infrastructure.

The property also supports ongoing grazing and cropping activities, reflecting our commitment to responsible land stewardship and productive agricultural use.

Looking ahead, Battershill concluded:

The Bowdens Definitive Feasibility Study remains on track for completion around mid-year and we look forward to updating investors with the results in the coming months.

The post Why is this ASX All Ords silver share surging in Tuesday’s sinking market? appeared first on The Motley Fool Australia.

More reading

• Why is everyone talking about BHP shares this week?
• Guess which ASX All Ords share is rocketing 20% on big news
• Treasury Wine shares slide as another leadership change hits sentiment
• Forget term deposits! I’d buy these ASX dividend shares instead
• Buy, hold, sell: Catapult Sports, Tower, Guzman y Gomez shares

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.

S&P/ASX 200 Index (ASX: XJO) shares are in the red on Tuesday as investors remain wary about whether a US-Iran deal will eventuate.

According to Trading Economics, the US and Iran are discussing a framework that would extend the ceasefire for two months.

Additionally, the US would lift its blockade of Iranian ports while Iran would reopen the Strait of Hormuz, a critical global oil and gas shipping channel.

While the world waits for further news, three experts give us their views on three ASX shares.

Let’s take a look.

Catapult Sports Ltd (ASX: CAT)

The Catapult Sports share price is $3.28, down 2.1% today and down 35% over six months.

Morgans has reiterated its buy rating on this ASX tech share and shaved its 12-month target from $5.55 to $5.40.

The broker said: 

CAT’s FY26 result confirmed strong organic momentum, with revenue US$141m (+19% c/c) and closing ACV US$134m (+28% c/c) at the top of guidance, while Management EBITDA of US$25m (17.6% margin, +67% pcp) beat MorgansF.

Operating leverage is now evident, with a 41% incremental margin (48% ex-acquisitions) in the period.

ACV per pro team crossed US$30k for the first time whilst SaaS metrics improved.

We trim FY27-FY29F Management EBITDA by 6-8% factoring in the result.

Tower Ltd (ASX: TWR)

The Tower share price is $1.58, up 1.9% today and down 6% over six months.

Mark Elzayed from Investor Pulse has a hold rating on this ASX financial share. 

On The Bull this week, Elzayed said: 

Tower is a New Zealand focused insurer benefiting from solid policy growth and improved underwriting conditions.

The company generated 15,000 new customers in the year to March 31, 2026, despite a subdued economic environment.

The company announced growth initiatives for the second half of 2026, including a partnership with Westpac Banking Corp (ASX: WBC) to offer general insurance products to its retail customers.

In our view, company performance and outlook supports a hold recommendation at this stage of the cycle.

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman Y Gomez share price is $20.05, up 0.9% today and down 12% over six months.

Last week, the Mexican restaurant chain upgraded its earnings guidance and announced the abandonment of its US expansion plans.

Guzman y Gomez now expects underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) of approximately $85 million, up 29% year over year, for FY26.

Citi has reiterated its sell rating on the ASX consumer discretionary share.

The broker increased its 12-month price target from $16.55 to $18.35.

The post Buy, hold, sell: Catapult Sports, Tower, Guzman y Gomez shares appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• What is Bell Potter’s view on GYG shares after its US exit?
• How much higher could Guzman Y Gomez shares go?
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Sports. The Motley Fool Australia has positions in and has recommended Catapult Sports. 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 in the red again in Tuesday morning trade, reversing some gains seen on Monday. But, here are four ASX 200 shares which I think could push the index significantly higher over the next 12 months.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix shares have tumbled 10% in May so far, but they’re still 56% higher than a multi-year low recorded in mid-February. At the time of writing on Tuesday morning, the ASX 200 biopharmaceutical stock is tumbling again, down 2.38% to $13.11 a piece.

The beaten down share price has faced several headwinds recently, including short-selling and sluggish investor sentiment. But the company is rapidly expanding into the radiopharmaceutical sector and recently announced a new FDA approval, a major collaboration, a revenue increase, and a bumper FY26 revenue guidance.

Brokers seem to think there is plenty more room for the stock to run too. They tip a 79% upside to $23.60 a piece, at the time of writing.

Zip Co Ltd (ASX: ZIP)

Zip shares have suffered a volatile start to 2026 so far. Its share price has swung anywhere between $1.45 and $3.56 a piece. At the time of writing, the shares are down another 2.22% to $2.20 each.

The tech shares have been under pressure since reaching a multi-year high in October last year. It was caught up in a tech sector-wide sell-off and investors took gains off the table after a strong rally. The ASX 200 tech shares continue to soften this month, likely due to slumping sentiment. Technology and growth shares have also come under renewed pressure again as investors reassess valuations and risk appetite.

But I think the stock is now oversold and trading far below fair value. Brokers tip a 74% upside to $3.83, at the time of writing.

Light & Wonder Inc (ASX: LNW)

Light & Wonder shares are down 0.39% to $115.79 in early morning trade on Tuesday. The tech-based gaming company’s shares surged to an all-time high in January. But the shares then crashed 44% to a three-year low of $102.66 in early May after the company posted its first quarter FY26 earnings results. The result was mixed, with a 2% increase in revenue and 5% increase in adjusted EBITDA. Meanwhile net income fell a huge 37%. Investors quickly sold up shares and while there has been a small rebound since, sentiment hasn’t yet returned.

Brokers are much more optimistic and expect a 73% upside to $198.50 over the next 12 months, at the time of writing.

Life360 Inc (ASX: 360)

Life360 shares are down another 0.74% to $18.86 at the time of writing on Tuesday morning. The latest share price is now 66% lower than an all-time high recorded in October last year.

The company has faced several headwinds, including the tech-sector-wide sell-off, a rotation away from AI-related stocks, and concerns that prices had become overvalued. But the ASX 200 company shows potential for a resurgence this year. It recently reported a 38% increase in revenue for the latest quarter, and upgraded its FY26 adjusted EBITDA and revenue guidance.

Brokers are very bullish about the outlook for Life360 shares over the next 12 months, with consensus of a strong upside ahead. They tip the shares to climb another 70% to $34.01.

The post 4 ASX 200 shares tipped to jump another 70-80% appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares tipped to grow 50% in the next 12 months
• $10,000 invested in Zip shares 12 months ago is now worth…
• 2 ASX growth shares that could be long-term winners
• These are the 10 most shorted ASX shares
• These ASX 200 shares have been smashed. I think patient investors should pay attention

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 Life360, Light & Wonder Inc, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Light & Wonder Inc and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Mineral Resources Ltd (ASX: MIN) shares are on form again on Tuesday and are pushing higher.

At the time of writing, the mining and mining services company’s shares are up 2% to a two-year high of $72.94.

Why are Mineral Resources shares hitting a new two-year high?

Investors have been bidding the company’s shares higher today after it made a big announcement relating to its lithium operations.

According to the release, the company and its joint venture partner, Jiangxi Ganfeng Lithium, have made a final investment decision (FID) to construct a flotation plant and develop underground mining at the Mt Marion lithium operation.

The release notes that the total capital investment is estimated to be $490 million on a 100% basis, invested across FY 2027 and FY 2028.

This comprises a flotation plant costing $240 million, underground pre-production development costs of $220 million, and non-processing infrastructure costs of $30 million.

Strong return on investment

The good news is that Mineral Resources expects a very quick return on investment.

It highlights that the payback period at the current spot spodumene price of approximately US$2,700 per tonne SC6 is less than one year.

The company believes the combination of a flotation plant with underground mining will support mine life by providing access to additional mineral resources below the existing open pit.

It also expects to improve plant recovery towards 70%, increase installed capacity from approximately 500,000 tonnes per year of SC6 to 600,000 tonnes per year, and remove the lower-grade SC3.5 product to deliver a single SC5 product.

Tendering for an underground mining contractor is in progress, with the central underground development expected to commence in the first quarter of FY27.

From FY 2028, Mt Marion will operate as a combined open pit and underground operation, with underground ore from open stoping supplementing up to 40% of processing feed.

The flotation circuit is an addition to the existing dense media separation plant, recovering fine spodumene currently reporting to tailings. It will be constructed and operated by the company’s Mining Services division.

Construction is targeted to commence in the first quarter of FY 2027, with commissioning and ramp-up expected in the second half of FY 2028. Minimal disruption to existing operations is expected during construction and commissioning.

Commenting on the plans, Mineral Resources’ managing director, Chris Ellison, said:

This high-return brownfield investment sets up Mt Marion for decades to come. Underground mining and flotation will work together to access deeper high-grade ore, lift recoveries and produce a single 5% product. I thank our partner Ganfeng for their collaboration on the design and commitment to these projects, which will ensure we unlock the full potential of Mt Marion.

Mineral Resources shares are now up over 200% since this time last year.

The post Mineral Resources shares hit two-year high on big lithium news appeared first on The Motley Fool Australia.

More reading

• Are these ASX shares a buy, hold or sell after hitting fresh 52-week highs?
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Ventia, Sigma, and Mineral Resources shares
• Why Technology One, Megaport and Mineral Resources shares are turning heads on Tuesday
• Up 167% in a year, here’s why this ASX 200 lithium stock is rising again

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.

Investors are offloading ASX Ltd (ASX: ASX) shares on Tuesday after the market operator outlined a heavier spending outlook.

At the time of writing, the ASX share price is down 8.35% to $53.90.

The sell-off comes despite a solid start to the year. ASX shares are still up around 5% in 2026, although they remain about 24% lower over the past 12 months.

Let’s take a closer look at the release.

Costs are heading higher

In today’s update, ASX provided financial guidance for FY 2027 and confirmed its FY 2026 outlook.

ASX said FY 2027 total expense growth is expected to be between 18% and 21%. Operating expenses, excluding depreciation and amortisation, are forecast to rise by between 13% and 16%.

The company said the increase is being driven mainly by technology modernisation, the Accelerate Program, remediation work, and spending linked to the ASIC inquiry and customer growth initiatives.

Capital expenditure is moving up as well.

ASX expects FY 2027 capital expenditure of between $130 million and $150 million. That’s up from its FY 2026 capex guidance of between $100 million and $120 million.

The company also expects FY 2028 capex to move higher again, with guidance of between $170 million and $190 million.

A large part of this spending is tied to technology upgrades, including work connected to CHESS Release 1, enterprise cloud, data and integration platforms, and other internal systems.

Why investors are selling

ASX is still a high-quality market infrastructure business, but today’s update shows how much money is going into keeping it that way.

The company said the spending reflects its role as a steward of critical market infrastructure. It also pointed to investment in resilience, operational efficiency, data management, AI, automation, and new product initiatives.

But with expenses and capex both moving higher, investors appear to be questioning how long this heavier spending period will last.

Dividends may also be part of the selling pressure.

ASX said its dividend payout range remains unchanged at 75% to 85% of underlying net profit after tax (NPAT). But it expects the payout to sit at the bottom end of that range over at least the next two dividends.

FY 2026 guidance unchanged

ASX did leave its FY 2026 guidance unchanged.

The company said unaudited operating revenue for the 10 months to 30 April 2026 was $1.03 billion, up 12.5% on the same period last year.

It also continues to expect FY 2026 total expense growth of 20% to 23%, including costs linked to the ASIC inquiry and CHESS Replacement Partnership Program.

ASX said it will release its FY 2026 results on 13 August 2026.

The post ASX shares sink 8% as investors baulk at spending surge appeared first on The Motley Fool Australia.

More reading

• ASX shares rise as investors welcome a major leadership change
• Here are the top 10 ASX 200 shares today
• ASX shares climb after CEO news. Here’s what investors are watching

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 ASX stock market is a wonderful place to find passive income investment opportunities that provide a good dividend yield and hopefully capital growth over the longer-term.

I’m going to talk about WCM Quality Global Growth Fund (ASX: WCMQ) and how many units we’d need to unlock $200 of monthly passive income.

WCM is managed by WCM Investment Management, which is based in Laguna Beach, California. The location gives the investment team a different perspective to the managers based around Wall Street in New York.

Let’s look at how effective it would be at delivering excellent passive income.

Distribution yield and units required

The ASX-listed exchange-traded fund (ETF) aims to provide investors with an annualised distribution yield of at least 5% per year.

That may not be the biggest dividend yield around, but I’d say that’s a great starting point and allows the investment to balance giving investors passive income and capital growth.

It pays the distribution quarterly. That’s not a payout every single month, so an investor would need to either divide the quarterly (or annual) amount into monthly amounts.

A monthly goal of $200 per month is an annual passive income target of $2,400. At a (minimum) 5% distribution yield, an investor would need 4,730 units of the ASX ETF, at the time of writing.

Great capital growth potential

Given how the fund links its distribution size to the net asset value (NAV) of the ASX ETF, it’s the ETF’s investment returns that will spur larger distributions.

It aims to invest in a portfolio of between 30 to 40 quality global stocks. The investment team have a fundamental belief that corporate culture is the most powerful force behind a company’s ability to grow its competitive advantage.

Since its inception in August 2018, the WCMQ ETF has returned an average of 14.7% per year (after management and performance fees). This has outperformed the MSCI All Country World Index by an average of 2.3% per year during that time.

Past performance is not a guarantee of future performance. But, with its long-term return performance, it was capable of delivering that pleasing 5% distribution yield and still delivering capital growth (and distribution growth) in the high single digit in percentage terms.

Given how the investment team look across the world for high-quality businesses to buy – with positions across the Americas, Europe and Asia Pacific – I think it’s a solid long-term contender as a passive income option.

The post I’d buy 4,730 shares of this ASX stock to aim for $200 a month of passive income appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $7,500 monthly passive income?
• I’d buy this ASX dividend stock in any market
• How much is needed in superannuation to target a $5,000 monthly passive income?
• Forget term deposits! I’d buy these ASX dividend shares instead
• How to boost your income with $50,000 of annual dividends

Motley Fool contributor Tristan Harrison has positions in Wcm Quality Global Growth Fund. 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 Fortescue Ltd (ASX: FMG) share price has recently been a strong performer in the S&P/ASX 200 Index (ASX: XJO). In-fact, it has delivered one of the strongest gains among the major ASX blue-chip shares.

As the above chart shows, in the last 12 months the Fortescue share price has gone up by approximately 40%. That compares to a rise of around 4% for the ASX 200. Both of those figures are at the time of writing.

A $10,000 investment a year ago would now be worth $14,000.

It’s rare for a blue-chip to rise as much as that. So, we’re going to take a look at what has driven the ASX mining share to deliver such a large return.

Big increase in profitability

The market usually values a business based on how much net profit it’s making and could generate for the foreseeable future.

Many businesses have fairly consistent business models that allow them to generally and steadily grow profit each year. I’m thinking of names like Wesfarmers Ltd (ASX: WES), Telstra Group Ltd (ASX: TLS) and Commonwealth Bank of Australia (ASX: CBA). 

But, Fortescue’s profit generation can change significantly because of shifts in the commodity price.

It has a certain level of production costs per tonne of iron ore, regardless of whether the iron ore price is US$80 per tonne or US$180 per tonne. Therefore, when the iron ore price rises, most of that additional revenue can turn into operating profit (EBITDA) and net profit (aside from paying more to the government).

So, a relatively small change in the commodity price can significantly boost its profitability, which we saw in the FY26 half-year result, which also boosts the Fortescue share price.

During HY26, the hematite (iron ore) realised price improved by 7% to US$90.87 per tonne and the volume of ore sold increased by 4% to 100.2mt. This led to a 10% rise in revenue to US$8.4 billion, a 23% rise in underlying EBITDA to US$4.5 billion, a 23% increase in attributable net profit to US$1.9 billion and a 32% rise in operating cash flow to US$3.2 billion.

According to Trading Economics, since 31 December 2025, the iron ore price per tonne has risen by another couple of dollars to US$109 per tonne.

Compared to 12 months ago, the iron ore price has gone up by approximately US$10 per tonne and I think that goes quite a long way to explain the gain of the Fortescue share price, along with the recovery of investor confidence following announced US tariffs on China in the first half of 2025.

Where to next for the Fortescue share price?

The next 12 months could largely depend on what happens with the iron ore price, though copper could play an increasingly important part if Fortescue continues expanding its copper project portfolio.

According to CMC Invest, of nine analyst ratings in the past three months, the average price target is $19.37. That implies a possible double-digit fall from where it is today, with in the next 12 months.

So, it seems there are better ASX share opportunities out there at the moment.

The post $10,000 invested in Fortescue shares 12 months ago is now worth… appeared first on The Motley Fool Australia.

More reading

• Goodman Group reports $87.1 billion portfolio value as data centre demand grows
• Greatland Resources secures Havieron approvals, eyes next steps
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• ASX 200 hits 2-week high as miners lead the charge

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

Flight Centre Travel Group Ltd (ASX: FLT) shares are sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) travel stock closed yesterday trading for $10.28. In early morning trade on Tuesday, shares are swapping hands for $10.14 apiece, down 1.4%.

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

This underperformance follows a trading update, released this morning at Flight Centre’s Investor Day presentation.

Here’s what investors are mulling over.

Flight Centre shares dip on ongoing Middle East headwinds

The first three quarters of FY 2026, covering the nine months to 31 March, saw Flight Centre achieve some solid growth metrics. That included a 7.6% year-on-year increase in total transaction value (TTV), which reached $19.5 billion.

Today Flight Centre shares look to be catching some headwinds after the company reiterated that its early fourth quarter performance (Q4 FY 2026) has been “heavily impacted by Middle East tensions”.

Management noted these impacts are continuing into May, primarily hitting its leisure business. The company estimates that the conflict already shaved off some $10 million in profits in April, driven by increased refunds.

And with the busier travel season kicking in, the company expects to see an even bigger negative impact in the second two months of Q4.

According to management:

May and June are typically stronger leisure trading months and ongoing volatility leading to cancellations, refunds and reduced forward bookings could be expected to have greater impact in those months

Then there’s the rising Aussie dollar.

Currently trading for 71.7 US cents, the Aussie dollar has appreciated by 10.6% over the last 12 months.

This could also pressure Flight Centre shares, with the company noting that the Australian dollar’s strength will impact its Q4 overseas profit translation compared to last year.

On a more positive note, the ASX 200 travel agency said its corporate business has not been significantly impacted by the outbreak of the Iran war. The company added that it is “monitoring possible flow on effects from higher airfare pricing and macro-economic factors if volatility continues”.

Management noted that any negative impacts to Flight Centre’s corporate business will more likely arise in early FY 2027.

Flight Centre said it is responding to the more difficult conditions by focusing on cost discipline, with its cost margin declining to 9.2%.

The company is also promoting short to mid-haul international and domestic travel itineraries to increase its market share. And management said Flight Centre is preparing for a rebound in demand as “conditions stabilise”.

With today’s intraday losses factored in, Flight Centre shares are down 32.3% in 2026, trailing the 0.9% year to date losses posted by the ASX 200.

The post Down 32% this year, why are Flight Centre shares sinking again today? appeared first on The Motley Fool Australia.

More reading

• 2 buy-rated ASX dividend shares to buy for 4% to 5% yields
• Brokers say these ASX 300 shares are too cheap to ignore
• Why James Hardie, Flight Centre and Webjet shares are making waves on Wednesday
• Down 36% in 2026, Flight Centre shares slip again on new fintech update
• 5 ASX shares with 50% to 60% upside ahead: Experts

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 recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.