The ALS Ltd (ASX: ALQ) share price is in focus today after the company reported record FY26 results, highlighted by 10.7% revenue growth to $3.32 billion and a 25.8% boost in underlying NPAT to $381.2 million.

What did ALS report?

• Revenue rose 10.7% year on year to $3.32 billion
• Underlying net profit after tax (NPAT) jumped 25.8% to $381.2 million
• Underlying EBIT increased 19.3% to $599.0 million; margin improved 129 bps to 18.0%
• Statutory NPAT was $318.7 million — up 24.4% on last year
• Free cash flow of $674.1 million, with EBITDA cash conversion at 92%
• Final dividend of 23.1 cents per share (partially franked), taking full year DPS to 42.5 cents

What else do investors need to know?

ALS delivered strong organic growth in its Commodities division, with revenue up 18.8%, mainly from increased mineral exploration activity. The Life Sciences division grew revenue by 6%, led by strong performance in its Food business, while Environmental saw softer conditions in the Americas due to both internal and market challenges, which are now being addressed.

The company’s balance sheet strengthened with financial leverage reduced to 1.5x, below its desired range, thanks to solid cash generation and a successful equity raising. ALS also invested heavily in four new hub laboratories across Minerals and Environmental, underpinning future growth. The company continues to deliver industry-leading safety outcomes.

What did ALS management say?

CEO and Managing Director Malcolm Deane, said:

ALS has delivered robust financial performance in FY26, reflecting the resilience of our diversified portfolio, disciplined operational execution and the commitment of our people in continuing to deliver high quality service and outcomes for our customers. Throughout the year, we remained focused on executing our refreshed strategy and advancing the priorities outlined in our value creation framework. This included disciplined capital allocation, targeted investment in growth opportunities and ongoing portfolio optimisation to strengthen returns and position the business for long-term sustainable growth, maximising shareholder returns.

What’s next for ALS?

ALS expects to continue mid to high single-digit organic revenue growth in FY27, with further margin expansion planned. Its new Sydney and Lima laboratories are set to be commissioned in H2 FY27, boosting capacity in key areas. The group also plans to deliver tangible benefits from its Lab of the Future initiative, investing in automation, digital infrastructure and AI.

Management is staying alert to global macro and supply chain risks, but a strong balance sheet positions ALS to pursue organic and inorganic growth. Minerals and Industrial Materials divisions are tipped for double-digit and high single-digit growth, respectively, while Life Sciences aims for improved mid-single-digit organic growth.

ALS share price snapshot

Over the past 12 months, ALS shares have risen 25%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post ALS reports record FY26 earnings and dividend uplift 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.

Having some exposure to the small side of the market can be a good thing for a balanced portfolio.

That’s because the returns from small-cap ASX shares can be superior to large caps. However, the trade-off here is that they come with higher risk.

With that in mind, let’s look at two small-caps that Morgans believes offer a compelling risk-reward right now. They are as follows:

Accent Group Ltd (ASX: AX1)

This footwear focused retailer could be a small-cap ASX share to buy now.

It was pleased with its investor day event, which outlined bold growth plans through to 2030.

In response, the broker has retained its buy rating and 75 cents price target on Accent’s shares. This implies potential upside of 32% for investors from current levels.

Commenting on Accent, the broker said:

AX1 hosted an Investor Day, outlining its 2030 strategic plan, targeting sales of $1.9bn, 9%+ EBIT margin and 950 stores. This will be driven by operating efficiencies (cost out and store optimisation), growth of sports related banners (Sports Direct, TAF) and growth in vertical owned brands. AX1 also outlined a pathway to profitable growth in FY27, underpinned by closure of loss making Glue/ OzSale, TAF reacquisitions, cost efficiencies and FX tailwind.

We have made no changes to our FY26 forecasts, but increase our EBIT by 2%/1% in FY27/28 incorporating further cost efficiencies. We retain our BUY recommendation and target price of $0.75.

BlinkLab Ltd (ASX: BB1)

Another small-cap ASX share that Morgans is positive on is BlinkLab.

It is a digital healthcare company focused on developing and commercialising a smartphone-based neuroscience diagnostic platform to aid the early diagnosis of Autism Spectrum Disorder (ASD).

Morgans has been impressed with its pilot study and sees a number of potential share price catalysts on the horizon.

As a result, it has put a speculative buy rating and $1.76 price target on its shares. This implies potential upside of over 150%. It commented:

BB1 has recently completed a $17.5m capital raising which comfortably funds its two clinical programs, ASD and Attention Deficit/Hyperactivity Disorder (ADHD), through to approval, which the company expects in FY27 and FY28, respectively. BB1’s pilot study showed impressive results. As a result, a pivotal study recruiting 528 participants is due to read out in late CY26, representing a key milestone.

A successful result would see regulatory clearance around 1QCY27. In parallel, the much larger ADHD opportunity is progressing. Offering potential share price catalyst through upcoming news flow, we initiate coverage of BB1 with a A$1.76 target price and SPECULATIVE BUY rating for investors with a higher risk profile.

The post Morgans names 2 small-cap ASX shares to buy appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Accent Group. 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 Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owning Wesfarmers Ltd (ASX: WES) shares has been a smart move over the long-term because of how it has steadily grown its profit and dividends for investors.

Past performance is not a guarantee of future performance, of course. Excitingly, analysts expect that the business could continue to please shareholders with steady progress over time.

Forecasts are not guaranteed to become the reported numbers, but I think they’re very interesting to look at. So, let’s look at the potential payouts over the next few financial years.

FY26

The 2026 financial year is nearly over and it has already paid its FY26 half-year dividend, but we don’t yet know what the annual dividend per share will be.

According to the forecast on CMC Invest, the business is expected to pay an annual dividend per share of $2.20 in FY26. That translates into a forward grossed-up dividend yield of 4.4%, including franking credits, at the time of writing for owners of Wesfarmers shares.

I think it’s quite likely that the business can pay something like this because the Middle East conflict and its flow-on effects may not have fully impacted the company.

FY27

Analysts are expecting the company to hike its payout in the next financial year, which is pleasing considering the impacts that could happen amid elevated inflation and higher interest rates.

Pleasingly, Kmart and Bunnings are seen as product price leaders and this could see an increase in market share and possibly higher revenue. Bunnings and Kmart achieve extremely high returns on capital (ROC).

The forecast on CMC Invest suggests the business could pay an annual dividend per share of $2.396 in FY27. At the time of writing, that translates into a grossed-up dividend yield of 4.8%, including franking credits, at the time of writing.

FY28

The final year in this series of projections suggests the business could deliver yet another dividend increase.

According to the projection on CMC Invest, the company is forecast to pay an annual dividend per share of $2.57. That translates into a possible grossed-up dividend yield of 5.1%, including franking credits, for owners of Wesfarmers shares.

If the business does that, the annual dividend per share could increase by around 17% between FY26 and FY28.

Of the major ASX blue-chip shares, Wesfarmers is one of the ones I’m most confident will be able to increase its dividend in each of the coming years because of how well suited its main retail businesses are to help customers in the current climate. Plus, its exposure to lithium mining with the rising lithium price is also beneficial.

Overall, the outlook seems positive for the company.

The post Here’s the dividend forecast out to 2028 for Wesfarmers shares appeared first on The Motley Fool Australia.

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

Westpac Banking Corp (ASX: WBC) shares have pulled back meaningfully from their highs.

So much so, they ended the week at $35.84, which is down around 17% from their 52-week high of $43.32.

Is this a buying opportunity for investors? Let’s see what Ord Minnett is saying about the big four bank.

What is the broker saying?

Ord MInnett notes that Westpac recently released its half-year results.

Unfortunately, the broker wasn’t overly impressed with the bank’s performance during the six months. It highlights that Westpac’s net interest margin weakened and its revenue missed expectations. And while it was pleased with its cost performance, it notes that this was largely due to seasonal factors. The broker explained:

Westpac Banking Corp said its core net interest margin narrowed 4bp half-on-half (HoH) to 1.78% in the first half of FY26, driven by intense competition for home loan and institutional customers that squeezed lending spreads and as the timing of interest rate rises offset the benefits from higher rates. That weak outcome came despite overall loan volumes, especially in the institutional division, growing strongly.

Cash earnings were pre-reported and the interim dividend was in line, but revenue missed consensus estimates, as a smaller contribution from markets and Treasury and reduced fee income weighed on non-interest income. Costs were a highlight, coming in 2% lower than market expectations, albeit largely due to seasonal factors, and Westpac has guided to increased costs in the second half as the bank lifts IT spending on the crucial UNITE project.

Earnings estimates downgraded

In response to the results, the broker has downgraded its earnings estimates for FY 2026 and FY 2027. This reflects net interest margin softness and higher expected costs. It said:

Post the result, we have cut our EPS estimates by 5.0% and 2.5% for FY26 and FY27, respectively, to incorporate narrower NIMs and higher costs as UNITE spending ramps up, while our FY28 forecast is bumped up 0.1%.

In light of this, Ord Minnett has retained its sell rating on Westpac shares with a $31.00 price target. Based on its current share price, this implies potential downside of 13.5% for investors over the next 12 months.

Commenting on its sell rating, the broker said:

We maintain our target price on Westpac and reiterate our Sell recommendation on valuation grounds, noting the bank faces challenges to convert its lending growth into meaningful revenue gains and has an increasing degree of execution risk the deeper it goes into the implementation phase of its UNITE program.

The post Down 17%: Are Westpac shares cheap? appeared first on The Motley Fool Australia.

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

Shares in Xero Ltd (ASX: XRO) finished last week with a bang.

The ASX tech share rocketed 8% on Friday to close at $79.67, clawing back some ground after a brutal sell-off earlier in the week.

Even with that strong rebound, Xero shares are still down roughly 30% year to date and about 54% over the past 12 months at the time of writing.

That is a shocking underperformance compared to the benchmark S&P/ASX 200 Index (ASX: XJO), which has gained around 4% over the same period.

So what on earth is happening with this once high-flying tech darling?

The market hit the panic button

Friday’s surge looks very much like a classic relief rally. On Thursday, investors absolutely smashed Xero shares after the company released its latest result.

The main issue? Margins. Investors became nervous about profitability as Xero continues pouring money into cracking the US market and integrating its acquisition of Melio.

In other words, the market saw rising costs, heard “lower margins”, and immediately headed for the exits.

Classic tech stock behaviour. But once the panic selling cooled down, investors seemed to remember something important: the actual business is still growing very quickly.

And underneath the scary headlines, there were some seriously strong numbers. Revenue surged 31% to NZ$2.75 billion for the year, showing demand for Xero’s accounting software platform remains extremely healthy.

Recurring revenue also kept flying higher, with annualised recurring revenue jumping 37%. For a software company, that recurring revenue stream is gold because it gives investors much better visibility over future earnings.

US growth story is still alive

Perhaps the biggest reason investors are warming back to Xero shares is the US growth story. For years, investors have viewed the massive US small-business market as Xero’s ultimate prize.

And right now, the company finally appears to be gaining real traction.

Organic growth in the US reportedly accelerated to 30%, suggesting Xero’s expansion strategy may finally be starting to pay off.

That is a big deal. If Xero can establish itself as a serious player in the US accounting software market, the long-term growth runway becomes enormous.

Management’s FY27 outlook also helped steady nerves. The company is guiding toward another year of roughly 34% revenue growth despite ongoing macroeconomic uncertainty.

That hardly sounds like a business hitting the brakes.

Artificial intelligence is also becoming a larger part of the investment story. Management highlighted growing adoption of AI-powered tools like its “Just Ask Xero” assistant, alongside partnerships with OpenAI and Anthropic.

The goal is simple: improve automation, increase productivity, and make the platform even stickier for customers.

So, what next?

Another likely driver behind Friday’s rebound was Xero’s newly announced NZ$550 million share buyback. Buybacks often signal management believes the market has become overly pessimistic about a company’s valuation.

And after a 54% share price wipeout, investors may finally be starting to wonder whether the sell-off simply went too far.

Broker sentiment certainly remains bullish.

According to TradingView data, 14 out of 15 brokers currently rate Xero shares as either a buy or strong buy.

The average price target sits at $130.53, implying roughly 64% upside from current levels.

Meanwhile, analysts at Macquarie Group Ltd (ASX: MQG) remain especially optimistic, retaining their buy rating and lifting their price target to $235.80 (from $223.60).

That implies potential upside of almost 200% if things go right from here.

The post What on earth’s going on with Xero shares? appeared first on The Motley Fool Australia.

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

I think it’s very interesting when one expert rates an ASX share is a buy. When numerous analysts think a stock is worth owning, that’s worth paying attention.

The two ASX shares we’re going to look at in this article are fast-growing businesses with great potential.

When companies are compounding at a strong rate, they can become significantly bigger over three to five years. Let’s look at how much the businesses could grow from here.

Life360 Inc (ASX: 360)

Life360 describes itself as a family connection and safety company, keeping people close to the ones they love.

It says it has a category-leading mobile app and hardware tracking devices empowering members to stay connected to the people, pets and things they care about most, with a range of services, including location sharing, safe driver reports and crash detection with emergency dispatch.

According to the CMC Invest collation of analyst ratings, the business has been rated as a buy by eight analysts within the last three months. There were no holds or sells.

A price target is where analysts think the share price will be in the next 12 months.

The average price target, according to CMC Invest, is $30.52. That suggests a possible rise of 66% over the next year.

The ASX share is delivering strong growth. In the three months to 31 March 2026, revenue soared 38% to $143.1 million, with advertising revenue growth of 329% to $19.7 million. The company’s operating cash flow increased by 42% year-over-year to $17.2 million.

Within that growth, global monthly active users (MAU) grew 17% to 97.8 million, while global paying circles increased 27% to 3 million. Average revenue per paying circle increased 7% to $143.03, helping its revenue grow at a strong pace.

Judo Capital Holdings Ltd (ASX: JDO)

This business aims to be Australia’s most trusted small and medium (SME) business bank.

According to the CMC Invest collation of analyst ratings, the business has been rated as a buy by nine analysts within the last three months. There were no holds or sells.

The average price target of those ratings is $2.28, which suggests a possible rise of 63% within the next 12 months.

It’s growing its gross loans and advances (GLA) at a pleasing rate of growth, with high levels of loan originations and lower attrition. At 31 March 2026, its GLA had grown to $13.8 billion, an increase of 18% year-over-year.

Its net interest margin (NIM) has been robust, with the FY26 third-quarter NIM being at around 3.15%, up from 3.03% in the first half of FY26.

Thankfully, a couple of weeks ago, the ASX share reported that its loan quality remained stable despite ongoing geopolitical uncertainty and increased market volatility.

The company says it continues to demonstrate operating leverage, which is helping profit before tax (PBT). PBT is benefiting from an investment in productivity, product enhancements and balance sheet optimisation.

According to the forecast on CMC Invest, the Judo Capital share price is valued at under FY27’s estimated earnings.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

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

If you are looking to boost your income portfolio with a new ASX 200 dividend stock, then it could be worth listening to Ord Minnett.

That’s because the broker has named one dividend stock that it believes could be in the buy zone right now.

Which ASX 200 dividend stock?

The stock that could be a buy according to Ord Minnett is Pinnacle Investment Management Group Ltd (ASX: PNI).

It is a financial services company that provides distribution services, business support, and entity services to affiliates, and develops and operates investment management businesses.

Ord Minnett wasn’t overly impressed with the ASX 200 dividend stock’s performance during the third quarter. It said:

Pinnacle Investment Management’s March-quarter FY26 update missed our forecasts, with portfolio underperformance the primary driver although this was largely expected by the market. Fund inflows were robust at $9.4 billion in the quarter, as momentum continued despite market wobbles, even if those wobbles had a negative impact of $8.6 billion, leaving growth in total funds under management (FUM) up just 0.4% in the quarter.

Of the $59.6 billion of FUM where performance fees can be earned, around 60% of these were at their high-water mark (HWM) threshold where fees can be charged, while another 22% of FUM is within 2% of their HWM.

But it wasn’t all bad news. Ord Minnett picked out a few positives. It adds:

Flows into the highly attractive core global equities funds, including the Life Cycle and Plato offerings, and alternative fixed-income products, including the Coolabah offerings, were described as “robust”. Pinnacle said there was “strong demand” for these products, including both fundamental core and systematic core portfolios, and also noted that AI was a “central theme” across all asset classes.

The fund manager has taken the opportunity to acquire a further 6.8% stake in Metrics for $100.5 million from a retiring co-founder of the business, a strong endorsement by Pinnacle management in the performance and growth outlook for the business. In addition, the Advantage Partners affiliate has raised a Japan Buyout fund, with an expected size of $2.5–3.0 billion, which closed in April.

Buy recommendation

According to the note, Ord Minnett has put a buy rating and $22.10 price target on the ASX 200 dividend stock.

Based on its current share price of $15.56, this implies potential upside of 42% for investors over the next 12 months.

In addition, the broker is forecasting fully franked dividends of 60 cents per share in FY 2026 and then 77 cents per share in FY 2027. This equates to dividend yields of 3.9% and 4.9%, respectively.

The post Why Ord Minnett rates this ASX 200 dividend stock as a buy appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended 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.

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) shares tumbled another 3.26% at the close of the ASX on Friday afternoon, dragging the ASX 200 healthcare stock to its lowest trading price since May 2024.

At the time of writing, the shares are $26.99 each.

The latest sell-off means the shares have now tumbled 22% from a 52-week peak recorded in February this year. They’re also 21% below trading levels seen this time last year.

Here’s what happened, and what to expect out of the ASX 200 healthcare stock next.

Why are the ASX 200 healthcare shares tumbling?

Overall, the ASX 200 healthcare index has come under pressure so far in 2026, and shares are tumbling across the board.

The ASX 200 healthcare index has tumbled 32% for the year-to-date and is 45% lower than 12 months ago. Several sector giants hit multi-year lows over the past couple of weeks.

The sector is now the worst performer of the 11 market sectors, driven by a weaker US dollar, concerns about more interest rate rises, rising inflation, cost-of-living pressures and slumping sentiment.

There are also ongoing concerns about tariffs and general global economic uncertainty which are affecting margins and export earnings of major players like Fisher & Paykel Healthcare which generate substantial revenue overseas.

The company is facing specific company headwinds too.

There are some concerns that Fisher & Paykel Healthcare shares are overvalued relative to their earnings, even after the latest pullback.

It’s also possible that the shares have dipped ahead of the company’s full-year results announcement later this month.

Despite tumbling sentiment and a weakening share price, as a business Fisher & Paykel Healthcare remains relatively sound. 

The respiratory designer and manufacturer raised its FY26 revenue and profit guidance in February. 

The company expects its full-year FY26 operating revenue will be around $2.30 billion (previously $2.17–$2.27 billion) and NPAT will be between $450 million and $470 million (previously $410 million–$460 million). Guidance assumes NZ:US exchange rate of 60 cents as at 31 January 2026.

Is this an opportunity for investors to buy in the dip, or is there more downside to come?

It looks like the latest dip could be a good opportunity for investors to buy into the ASX 200 healthcare stock for cheap.

TradingView data shows that eight out of 18 analysts have a buy or strong buy rating on Fisher & Paykel Healthcare’s shares. Another eight have a hold rating and two rate the stock as a sell or strong sell.

The average $33.81 target price implies a potential 25% upside over the next 12 months, at the time of writing. Others think the shares could storm 57% higher to $42.40 a piece. 

The post This ASX 200 healthcare stock has crashed to a multi-year low: Here’s why and what’s next appeared first on The Motley Fool Australia.

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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 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 dividend stock Beacon Lighting Group Ltd (ASX: BLX) has fallen by 56%. When a cyclical business falls that far, I think it could be a great buying opportunity.

This business is a leading lighting retailer in Australia, with a major retail store network, as well as having commercial customers, international sales and a property portfolio.

Let’s look at how rewarding the ASX dividend stock could be for cash dividend payments.

Dividend projections for the next few years

The company is certainly facing an interesting outlook considering the higher interest rates and elevated inflation. It has certainly fallen a lot – more than 50%. It could be a good idea to invest when the market is fearful about the situation.

The projection on Commsec suggests the business could pay an annual dividend per share of 7 cents in FY26. That translates into a potential grossed-up dividend yield of 6.1%, including franking credits. This would represent a year-over-year decline in the payout. I think that’s a great starting point for the yield to grow from there.

After FY26, the forecast on CMC Invest suggests the business could hike its payout in the two subsequent years.

The projection on CMC Invest suggests the business could pay an annual dividend per share of 8.1 cents per share in FY27, which would translate into a grossed-up dividend yield of 7%, including franking credits.

After that, the estimate on CMC Invest suggests the business could deliver an annual dividend per share of 9 cents per share in FY28. That would translate into a grossed-up dividend yield of 7.8%, including franking credits.

Compelling foundations for the ASX dividend stock’s growth

I believe the business has several strengths that can help it in the future.

For starters, the company is still rolling out new locations in its local market, which gives it the opportunity to grow sales and improve its scale benefits, which could help increase its gross profit margin.

The company could continue to increase its number of e-commerce and trade customer sales, which gives the company more growth avenues.

Finally, the company is increasing its presence internationally, which is a large addressable market if the company can get that right. In the FY26 half-year result, its international sales increased by 13.5%, with sales increasing in all regions.

According to the forecast on CMC Invest, the Beacon Lighting share price is valued at 13x FY26’s estimated earnings.

The post 1 ASX dividend stock down 56% I’d buy right now appeared first on The Motley Fool Australia.

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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 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.

At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Lotus Resources Ltd (ASX: LOT) is now the most shorted ASX share with short interest of 16%, which is up week on week. This uranium producer’s shares have come under pressure following a disastrous March quarter which saw weak production and a sizeable cash burn. Many in the market are now expecting another capital raising later this year.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 15.6%. Short sellers appear to have doubts over this pizza chain operator’s turnaround plan.
• Telix Pharmaceuticals Ltd (ASX: TLX) has seen its short interest ease to 15.3%. This radiopharmaceuticals company’s shares have come under significant pressure over the past 18 months amid US FDA approval challenges.
• Polynovo Ltd (ASX: PNV) has 14.4% of its shares held short, which is up week on week. This medical device company’s shares have a premium valuation that short sellers don’t appear to believe is justified.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.9%, which is down week on week. This quick service restaurant operator’s US operations have been struggling, casting doubts on its future in the key market.
• Boss Energy Ltd (ASX: BOE) has short interest of 13.3%, which is flat since last week. There are major concerns over this uranium miner’s production outlook beyond 2026.
• Treasury Wine Estates Ltd (ASX: TWE) has 12.9% of its shares held short, which is up week on week. Short sellers aren’t giving up on the wine giant despite it recently releasing an encouraging trading update.
• Zip Co Ltd (ASX: ZIP) has 12.2% of its shares held short. This is up slightly since last week. Short sellers continue to target the buy now pay later provider despite it delivering a strong update this month.
• DroneShield Ltd (ASX: DRO) has 11.1% of its shares held short, which is up since last week. Last week, the counter-drone technology company revealed that it was the subject of an ASIC investigation.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.9%, which is up week on week. Short sellers may believe that the Middle East conflict will weigh on the travel agent’s growth.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, DroneShield, PolyNovo, Telix Pharmaceuticals, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Domino’s Pizza Enterprises, Flight Centre Travel Group, PolyNovo, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.