The analyst team at Canaccord Genuity have had a look at some of the up-and-comers in the gold sector and has singled out two that they believe could more than double in value.

Let’s see what they like.

Gorilla Gold Mines Ltd (ASX: GG8)

This company just this week released results from step out drilling at its Mulwarrie project site, which the Canaccord team said were “highly encouraging”.

The company itself said the first holes from the new drilling “highlight significant resource growth potential”.

Results included 3.4m at 9 grams per tonne of gold from a depth of 376.9m and 0.7m at 24.8 grams per tonne of gold at a depth of 110.3m.

Gorilla Chief Executive Officer Charles Hughes said regarding the results:

The Mulwarrie Project remains significantly under-explored, and these exciting step-out drilling results demonstrate the scale of the opportunity ahead of us. Intersecting high-grade gold more than 700 metres beyond the existing resource boundary highlights the potential to materially expand the Mulwarrie Mineral Resource through continued drilling in 2026.

The company currently has a mineral resource estimate of 350,000 ounces of gold at a grade of 3.6 grams per tonne.

The Canaccord team said the new results “position Mulwarrie as a rapidly emerging, district-scale gold system with strong potential for multi-million-ounce growth”.

They added:

Prior to today, our thoughts were that over time, Mulwarrie could grow to over 1.5 million ounces. We still maintain this and are excited by both the step-out drilling and also the earlier stage geochemistry work announced today.

Canaccord has a price target of $1 per share on Gorilla shares compared with the current price of 35 cents.

Turaco Gold Ltd (ASX: TCG)

This company has also had recent news, upgrading the gold resource estimate at its Afema Project to 4.65 million ounces, up 15%, at a grade of 1.3 grams per tonne.

Canaccord said this represents a sustained growth rate of about 100,000 ounces per month.

They added:

Since the maiden resource about 18 months ago, Afema has grown by more than two million ounces, underscoring its emergence as a rapidly scaling West African gold system that sits among the largest and most advanced West African deposits on the ASX.

The Canaccord team noted that “several mineralised trends” did not make it into the new resource update, “providing clear upside ahead of further updates planned in 2026”.

Canaccord has a price target of $1.45 on Turaco shares compared with 61.5 cents currently.

The post Two ASX gold companies which could more than double in value, according to Canaccord Genuity appeared first on The Motley Fool Australia.

More reading

• 3 ASX mining shares tipped to double in a year

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.

Natural gas prices rose overnight, with the US benchmark up almost 6% to around US$3.23 per MMBtu.

This follows a volatile period for gas markets and shows how quickly sentiment can shift amid the return of geopolitical risks and supply concerns.

Middle East tensions drive price rebound

Gas prices moved higher as tensions increased across key energy-producing regions in the Middle East.

Recent reports point to strikes on important infrastructure linked to Iran and Qatar, including activity near Ras Laffan Industrial City. This site is important because it supports the world’s largest LNG export operations.

There have also been developments regarding Iran’s South Pars gas field, one of the world’s largest gas reserves. On top of that, shipping through the Strait of Hormuz has been disrupted, affecting vessel traffic.

The Middle East is a major supplier of LNG, so any disruption to production or shipping can tighten supply and push prices higher.

Storage data adds to the price move

Alongside geopolitical risks, recent US inventory data has also influenced the market.

The US Energy Information Administration reported a storage withdrawal of 38 billion cubic feet in the latest week. This was below expectations of around 42 billion cubic feet.

Even though the draw was smaller than expected, prices still moved higher as supply concerns remained in focus.

Storage levels are relatively comfortable, and US production continues to run near record levels.

Flow-on impact for ASX energy stocks

Rising natural gas prices can affect Australian energy companies, particularly those exposed to electricity generation and wholesale energy markets.

Origin Energy Ltd (ASX: ORG) shares are currently trading around $11.81, giving the company a market capitalisation of approximately $20.35 billion. Origin has direct exposure to gas through its generation portfolio and LNG-linked operations.

On the other hand, AGL Energy Ltd (ASX: AGL) shares are trading near $9.27, with a market capitalisation of about $6.24 billion. AGL remains one of Australia’s largest electricity generators and retailers, with gas playing a key role in its energy mix.

A market driven by risk and volatility

Despite the recent move, natural gas prices remain extremely volatile.

On a monthly basis, natural gas is still up around 8.5%, but it remains down roughly 18.5% over the past year. This highlights ongoing swings in supply, demand, and global risk.

Global energy markets are also adjusting to shifting trade flows. Disruptions to LNG supply, combined with demand from Asia and Europe, continue to influence pricing.

Investors should keep a close eye on global developments and gas price movements.

The post Natural gas jumps 6% overnight. Which ASX gas giants stand to benefit? 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 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.

With interest rates rising, income investors may be wondering whether ASX dividend shares can still compete.

While term deposits and savings accounts are offering improved returns, there are still a number of listed companies providing generous dividend yields along with the potential for capital growth.

Here are two ASX dividend shares that are currently rated as buys by brokers and offer forecast yields above 5%.

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that could be worth considering is Dexus Industria REIT.

This real estate investment trust focuses on industrial properties, including warehouses and logistics facilities located in key urban markets. These assets are closely tied to supply chains and ecommerce activity, which has supported strong demand in recent years.

The trust benefits from a diversified tenant base with high occupancy, providing relatively stable rental income. For example, last month, it reported an occupancy rate of 99.7% and a weighted average lease expiry of 5.3 years.

In addition, with around 87% of income subject to fixed rental increases, this can support distribution growth over time.

Speaking of which, the team at Bell Potter is bullish on the company and expects dividends per share of 16.6 cents in FY 2026 and then 16.8 cents in FY 2027. Based on its current share price of $2.40, this would mean dividend yields of 6.9% and 7%, respectively.

The broker has a buy rating and $3.00 price target on Dexus Industria shares.

Transurban Group (ASX: TCL)

Another ASX dividend share that could appeal to income investors is Transurban Group.

The company owns and operates major toll roads across Australia and North America, generating revenue from millions of daily vehicle trips.

What makes this business particularly attractive is the long-term nature of its assets. Many of its toll road concessions run for decades, providing strong visibility over future cash flows.

In addition, toll prices on many of its roads increase annually, often linked to inflation. Combined with traffic volumes continuing to grow from population growth and urbanisation, the company’s long-term outlook remains very positive.

With respect to income, the team at Citi is forecasting dividends of 69.5 cents per share in FY 2026 and then 74.5 cents per share in FY 2027. Based on its current share price of $13.90, this would mean dividend yields of 5% and 5.35%, respectively.

Citi currently has a buy rating and $16.10 price target on Transurban shares.

The post 2 ASX dividend shares with 5%+ yields and buy ratings appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. 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 Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban 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) has gained a respectable 8.0% over the past 12 months, with plenty of lifting help from this rocketing ASX All Ords rare earths stock.

The outperforming miner in question is Brazilian Rare Earths Ltd (ASX: BRE).

Brazilian Rare Earths shares are taking a tumble alongside most ASX miners today, with shares down a sharp 8.5% at $4.30 each.

Despite that retrace, shares in the ASX All Ords rare earths stock remain up an impressive 138.9% since this time last year.

Or enough to turn a $5,000 investment into $11,944.

The company has been benefiting from its own exploration and mining successes in Brazil, as well as the West’s push to secure reliable rare earths supplies outside of China, which remains the world’s dominant producer.

As you likely know, rare earths are critical in most modern technologies, including military defence equipment and machinery, smart phones, and wind turbines.

And despite the outsized one-year returns, the team at Argonaut expect more outperformance from Brazilian Rare Earths shares in the year ahead.

Here’s why.

ASX All Ords rare earths stock tipped for further outsized gains

Brazilian Rare Earths released its second quarter update on 29 January.

Among the highlights for the three months to 31 December, the ASX rare earths miner announced a JORC-Compliant Mineral Resource and Scoping Study for its 100%-owned Amargosa Bauxite-Gallium Project, located in Brazil.

The quarter also saw the miner enter into a long-term partnership with Carester, a rare earth processing company specialising in the design, commissioning and optimisation of rare earth separation facilities around the world.

Commenting on the quarterly update, Argonaut analyst George Ross said:

BRE reported Amargosa Bauxite Project scoping study outcomes for a 17-year, 5mtpa project, capable of average annual free-cashflow of US$84m at a US$71/t product price. The operation is expected to cost US$119m to first production and generates an NPV8 of US$630m. BRE intends to spin out the project into its own listed entity.

Following a recent A$120m capital raising, BRE retained A$162m in cash at the end of December. A strategic partnership with processor Carester inclusive of heavy rare earth element (REE) feedstock offtake will provide BRE with technical support for its planned downstream aspirations.

The broker has a speculative buy recommendation on the ASX All Ords rare earths stock and a $5.80 price target.

That represents a potential upside of just under 35% from current levels.

The post Up 139% in a year, why this buy rated ASX All Ords rare earths stock could keep racing higher appeared first on The Motley Fool Australia.

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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.

It’s been a tough session for the market. After a weak lead from Wall Street overnight, the ASX 200 is down around 1.55% at the time of writing on Thursday. That takes losses for March to roughly 7.5%, which is a meaningful pullback in such a short period.

Whenever markets fall like this, quality stocks tend to get dragged down with everything else.

That’s exactly what we’re seeing right now, with several well-known ASX 200 stocks hitting 52-week lows. The key question is: is this an opportunity for investors?

Here’s how I’m thinking about it.

CSL Ltd (ASX: CSL)

CSL has been under pressure for a while now, and this latest selloff has pushed it to fresh lows.

Sentiment has clearly turned cautious, but I don’t think the long-term story has changed in any meaningful way.

This is still one of Australia’s highest-quality healthcare companies, with global scale, strong margins, and a long track record of innovation.

Short-term earnings noise and investor concerns can move the share price around, but over time, businesses like CSL tend to reflect their underlying quality.

For me, this looks more like a temporary valuation reset than a structural problem.

Aristocrat Leisure Ltd (ASX: ALL)

Aristocrat has also been caught up in the broader tech sell-off, with concerns around artificial intelligence (AI) disruption weighing on sentiment.

That’s understandable, but I think it may be overstated.

The company has a strong position in gaming content, world-class IP, and a growing digital segment, which gives it multiple avenues for growth.

It has also shown an ability to adapt over time, whether that’s through new game development or expanding into adjacent markets.

With the share price now significantly below its highs, I think the risk-reward is starting to look more attractive.

Cochlear Ltd (ASX: COH)

Cochlear isn’t the kind of company that usually trades at 52-week lows.

It’s a global leader in implantable hearing solutions, with a strong brand and significant pricing power.

Like CSL, it has been dragged lower by broader market weakness rather than a clear deterioration in its long-term outlook.

Demand for its products is supported by ageing populations and increasing awareness of hearing health, which gives it a structural growth tailwind.

When high-quality healthcare names like this fall sharply, I tend to take notice.

Amcor plc (ASX: AMC)

Amcor is a very different type of business to the others, but it’s also worth a look at these levels.

Packaging may not be exciting, but it is essential.

Amcor operates globally, generates steady cash flow, and pays attractive dividends. That combination can be valuable during periods of market uncertainty.

Its shares have come under pressure alongside the broader market, but the underlying business remains resilient.

For income-focused investors, this kind of pullback can create an opportunity to lock in a higher yield.

Should you buy the dip?

Market selloffs can feel uncomfortable in the moment. But they’re also when some of the best long-term opportunities are created.

CSL, Aristocrat, Cochlear, and Amcor are established, high-quality ASX 200 stocks that are now trading at much lower prices than they were not long ago.

That doesn’t guarantee they’ll rebound immediately. Volatility could continue, especially if global markets remain under pressure.

But for long-term investors, I think this kind of weakness is worth leaning into rather than fearing.

Foolish takeaway

Sharp market declines often pull down both weak and strong companies at the same time.

Right now, I think that is creating opportunities in several ASX 200 stocks that don’t often trade at these kinds of levels.

CSL, Aristocrat, Cochlear, and Amcor all have challenges, but they also have strong long-term fundamentals.

For me, this looks less like a reason to panic and more like a chance to start building or adding to positions in quality businesses.

The post CSL and these ASX 200 stocks just hit 52-week lows: Should you buy the dip? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday
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Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Cochlear. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended CSL and Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Things have certainly taken a turn for the worse on the ASX boards this Thursday. After modest rises for the S&P/ASX 200 Index (ASX: XJO) over the past two trading days, investors might have been lulled into a sense of complacency. That went out the window this morning when the markets opened and the selling of ASX shares started.

At the time of writing, the ASX 200 is now down a nasty 1.6% at just above 8,500 points. This latest fall puts the Australian share market’s losses sine 2 March at a horrid 7.5%.

A fall of this magnitude over just a few weeks means that a lot of investor shave been selling their ASX shares. Those that haven’t have probably taken a significant haircut in the values of their investing portfolios. At least on paper.

The US-Iran War shows no signs of ending any time soon. Over the past 24 hours, there have been attacks on many energy facilities across the Middle East, which has driven the price of Brent crude oil back over US$110 a barrel. That’s almost double the US$60 that barrel was going for back in early January.

It wouldn’t be hard to conclude things might get more dicey before they get better. If that’s the case, should ASX investors think about selling their ASX shares today before things get even worse?

Is it time to start selling ASX shares?

I think investors who are debating this question need to reconsider why they are investing in the first place. We buy ASX shares to profit from a business’ earnings, and by doing so, grow our long-term wealth. Owning a company’s shares gives one the right to a portion of its earnings from today until, at least in theory, the end of time.

Yes, the global economy is reeling from a severe energy shock. It could have serious consequences. It already has. But history tells us time and time again that selling ASX shares during a crisis is almost always a poor decision. For one, the markets have seen it all before. We had severe energy shocks back in the 1970s. The markets recovered to push higher. We’ve had a litany of wars over the past few decades. We’ve had inflation, recessions and even a pandemic. Yet despite this, the ASX 200 was at a new all-time high less than three weeks ago.

None of can predict the future and know what will happen on the markets tomorrow, next week, next month or in 2027. Yet we can all look at the past and see what the best decisions were in hindsight. The choice that has, and has always had, the greatest chance of maximising your long-term wealth is to buy, and not sell, when prices are low.

The post Is it time to sell your ASX shares before things get worse? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 S&P/ASX 300 Metal & Mining Index (ASX: XMM) is down 4.4% on Thursday, while the S&P/ASX 300 Index (ASX: XKO) is down 1.6%.

ASX mining shares have been the worst hit by the war in Iran, with the Metal & Mining Index falling 17.4% vs. a 7.7% drop for the ASX 300.

Fears of rising fuel costs and constrained supply are a major headwind for mining operations, potentially threatening production.

Additionally, ASX mining shares have been on a tear for 12 months, and the war may be prompting some investors to take profits now.

A global fuel crisis would hit almost every market sector, so an ongoing conflict in Iran could drag the whole market lower over time.

Kylie Purcell, Senior Markets Analyst for online investment platform Stake, said:

If the Strait of Hormuz stays closed and oil prices march upwards, we could see a sharper, sustained fall in global and Australian shares.

Meantime, here are three ASX mining shares with buy, hold, and sell ratings today.

Meeka Metals Ltd (ASX: MEK)

The Meeka Metals share price is 16 cents on Thursday, down 4.7% today but up 15.7% over the past year.

This week, Morgans maintained its buy rating on the ASX gold mining share with a 12-month price target of 39 cents.

The broker said:

MEK announced an expansion to 800ktpa (equivalent ounce basis) via ore sorting, requiring modest capex of A$6m with commissioning scheduled for Q1FY27. Ore sorting effectively near doubles Andy Well underground head grade, lifting our annual production forecasts by an average of 7% from FY27 onwards.

We maintain our BUY rating and A$0.39ps price target, acknowledging near-term production softness may weigh on the 3Q result ahead of an anticipated step-change in output in 4Q.

The ASX gold mining share will join the ASX 300 Index at the next rebalance, effective next Monday.

Lynas Rare Earths (ASX: LYC)

The Lynas Rare Earths share price is $20.04, down 1.7% today but up 162% over the past year.

This week, Bell Potter upgraded its rating on this ASX rare earths mining share from sell to hold.

The broker also significantly increased its 12-month price target from $11.60 to $19 per share.

The rating change followed the miner’s announcement that it has extended its Japan Australia Rare Earths offtake agreement to 2038.

Bell Potter said this effectively guaranteed revenue of around $775 million at the current exchange rate.

Today, Lynas announced it had produced its first samarium oxide at the Malaysia site.

Lunnon Metals Ltd (ASX: LM8)

The Lunnon Metals share price is 34 cents, down 9.5% today but up 60% over the past 12 months.

On The Bull this week, Nathan Lodge from Securities Vault put a sell rating on this ASX nickel mining share.

Lodge explained:

For companies, such as Lunnon Metals, exploration success isn’t sufficient to drive value if the underlying commodity price environment remains weak.

The company’s strategy centres on exploring and advancing sulphide nickel deposits in a region historically known for high grade discoveries and established mining infrastructure.

However, global nickel prices have been under sustained pressure as supply from Indonesia has increased rapidly, creating a structural oversupply in the market.

Lunnon Metals gave a presentation at the Euroz Hartleys Conference yesterday.

The post Buy, hold, sell: 3 ASX mining shares appeared first on The Motley Fool Australia.

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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 recommended Lynas Rare Earths Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) shares have enjoyed a strong rebound since plumbing eight-month lows of $147.22 on 21 January.

In late morning trade today, shares in S&P/ASX 200 Index (ASX: XJO) bank stock are down 0.4%, trading for $176.47 apiece.

Despite today’s dip, that sees CBA shares up 19.9% since market close on 21 January.

For some context, the ASX 200 is down 3.2% over this same period.

But with the Reserve Bank of Australia (RBA) increasing interest rates for the second time in 2026 on Tuesday – lifting the official cash rate by 0.25% to 4.10% – that strong outperformance could be about to shift into reverse.

That’s the warning issued by Morgan Stanley this week, with the broker cautioning that CBA’s earnings could take a material hit.

Here’s why.

Are CBA shares eyeing the perfect storm?

The RBA is back on the tightening path in an effort to rein in resurgent inflation. Higher interest rates work to reduce demand. But if energy prices remain high amid the Iran war, higher rates also could put the brakes on Australia’s GDP growth.

Indeed, Morgan Stanley bank analyst Richard Wiles said fast rising interest rates could “fundamentally shift operating conditions” for CBA shares and the other big four ASX bank stocks (quoted by The Australian Financial Review).

“The uncertain environment raises the risk of both earnings downgrades and a de-rating, increasing the probability that banks underperform the ASX 200 in 2026,” Wiles said

Amid the prospect of two more RBA interest rate hikes this year, Morgan Stanley expects Australia’s GDP growth to slow to 1.6% in 2026, down from 2.6% last year.

This in turn, would likely impact CBA’s loan growth. In a worst-case scenario, Wiles said that CommBank could see its earnings downgraded by 8.9%.

Should that occur, Wiles said that CBA shares could plunge more than 42% to $101.50 each.

What about the other big four ASX 200 bank stocks?

It’s not just CBA shares that could be looking at a sharp fall.

Wiles estimates that in the above scenario, Westpac Banking Corp (ASX: WBC) earnings would be downgraded by 9.7%; ANZ Group Holdings Ltd (ASX: ANZ) earnings would be downgraded by 10.1%; and National Australia Bank Ltd (ASX: NAB) earnings would be downgraded by 14.3%.

That could see Westpac shares fall more than 35% from the current $41.27 to $26.50; NAB shares could tumble more 30% to $32.90; and ANZ shares could fall almost 20% to $29.80 each.

CBA shares and the other ASX 200 banks are at particular risk as they’re already trading at high price to earnings (P/E) ratios.

Wiles concluded (quoted by the AFR):

History tells you that when the RBA hikes, bank price-to-earnings multiples go down. It hasn’t happened yet, but that’s what’s happened historically.

Our own forecasts currently assume a favourable operating environment continues. That means the banks are vulnerable to de-rating risk and that an earnings downgrade risk could emerge if the economy slows down more than expected.

The post How higher interest rates could send CBA shares plunging 42% appeared first on The Motley Fool Australia.

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• Why the RBA could increase interest rates again in May

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.

The Australian share market has pulled back from recent highs, with investors navigating a mix of rising interest rates, geopolitical uncertainty, and shifting global growth expectations.

While this type of volatility is not unusual, some sectors have felt the pressure more than others. In particular, non-bank financials have had a challenging period, with several high-quality names seeing meaningful share price declines.

Two examples are Pinnacle Investment Management Group Ltd (ASX: PNI) and Netwealth Group Ltd (ASX: NWL). Over the past 12 months, their share prices have fallen more than 27% and 20%, respectively.

For long-term investors, periods like this often spark discussion around contrarian thinking. When sentiment turns negative, it can sometimes push share prices below what the underlying business performance might justify. That doesn’t automatically mean value is present — but it can create a reason to look more closely.

So, how are these two businesses actually performing beneath the surface?

Inflows climbing

Pinnacle operates a multi-affiliate funds management platform. Rather than managing all assets directly, it takes equity stakes in specialist investment boutiques (known as affiliates) and earns a share of their fees and profits.

This model allows Pinnacle to scale across asset classes and geographies while remaining relatively capital-light.

Recent results suggest the underlying business continues to grow, even as performance fees fluctuate. Funds under management (FUM) reached $202.5 billion, up 13%, supported by record net inflows of $17.2 billion for the half.

Importantly, core earnings appear resilient. Pinnacle reported strong growth in its share of affiliate profits (excluding performance fees), with underlying net profit (NPAT) also rising solidly versus the prior period.

The variability comes from performance fees, which declined compared to the previous corresponding period — highlighting the cyclical nature of earnings in funds management.

Strategically, the business continues to expand globally, with increasing exposure to international markets and private assets, alongside new investments such as its stake in Pacific Asset Management.

Improving profitability 

Netwealth is a platform provider offering technology, administration, and investment solutions to financial advisers and their clients. It generates revenue primarily from fees linked to funds under administration (FUA) and from transaction and ancillary services.

The structural tailwinds behind the business — including the shift towards platform-based investing and independent advice — remain firmly in place.

Recent results highlight strong operational momentum. Netwealth reported FUA of $125.6 billion, up 23.6% year on year, alongside total income growth of 24.7% to $193.8 million.

Profitability also improved, with operating earnings (EBITDA) rising 23.9% and net profit after tax increasing nearly 20%.

Revenue growth has been broad-based, with platform revenue climbing 25.3%, supported by growth across administration, transaction, and ancillary fees.

The company continues to benefit from strong inflows and adviser growth, with custodial inflows of $16.4 billion for the half and expanding market share in the platform sector.

Management remains focused on investing in technology and product capability, including AI-driven enhancements, to support long-term growth and adviser productivity.

Foolish takeaway

Despite notable share price declines over the past year, both Pinnacle and Netwealth appear to be delivering solid underlying business performance.

Pinnacle’s growth continues to be driven by inflows and its scalable affiliate model, while Netwealth is benefiting from structural industry shifts and strong platform growth.

As always, markets can sometimes weigh short-term uncertainty more heavily than longer-term fundamentals. If these companies can continue to grow revenue and earnings over time, a shift in sentiment could eventually see valuations move higher again.

Whether that plays out — and over what timeframe — remains something investors will be watching closely.

The post 2 beaten-down ASX financial stocks worth a closer look appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant 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 Netwealth Group and Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Netwealth Group and Pinnacle Investment Management Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Barrenjoey has had a look at a couple of the ASX-listed, Africa-focused gold miners and has identified two companies its analyst team believes are deeply undervalued at current prices.

Let’s have a look at who they like.

West African Resources Ltd (ASX: WAF)

The Barrenjoey team has published a research note on this company with the title “Cash harvest in 2026”, which gives some indication of how positive they are on the stock.

They note that after a “challenging” 2025, the company enters 2026 in a net cash position, “with its two key assets humming and on track to produce 475,000 ounces at an all in sustaining cost of US$1,991 per ounce on our estimates”.

The Barrenjoey team went on to say:

The shares have traded down 30% since January and are now imputing an almost unbelievable 43% free cash flow yield in 2026 with the potential to deliver a dividend yield exceeding 10%. Uncertainty around the government’s request to purchase a stake in Kiaka remains unresolved, but the shares are now pricing in a scenario materially worse than the recently reported additional 25%. We expect the business will deliver $1.1bn in free cash flow this year, and will be in a strong position to make material capital returns to shareholders.

Barrenjoey says their price target is based on a “worst case scenario” regarding what stake in the Kiaka mine the Burkina Faso Government opts to take.

Barrenjoey has a $4.80 price target for West African Resources shares, compared with $2.89 currently.

If achieved, that would represent a return of 66.1%. West African Resources is valued at $3.46 billion.

Perseus Mining Ltd (ASX: PRU)

This company announced just this week that it had sold its 70% stake in the Meyas Sand Project in Sudan to a Chinese company for US$260 million, which Barrenjoey said was about 50% more than Perseus paid for it.

Barrenjoey said the transaction was a net positive, as it had the asset on the books as worth $118 million, “given the ongoing civil war in Sudan and uncertainty around Perseus’s ability to develop it”.

The Barrenjoey analysts point out that Perseus shares are down 20% from their January peak, ”since which time management has announced the doubling of Reserves at Nyanzaga, realised value at Meyas Sand and positioned the company for improved capital returns in 2026”.

The Barrenjoey analysts added:

We view Perseus as the highest-quality ASX-listed African gold exposure, with its history of operational excellence and geographic diversification typically driving a healthy premium over its ASX listed African gold peers.

They said that the company should be in a position to “meaningfully” lift its full-year dividend following the Sudan sale.

Barrenjoey has increased its price target for Perseus from $6.50 to $6.80, compared with $4.80 currently.

The post 2 ASX gold miners to buy for solid share price gains, according to Barrenjoey 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.