Owning Woodside Energy Group Ltd (ASX: WDS) shares usually means getting good passive income in terms of the dividend yield.

The company’s dividend can bounce around because it’s heavily linked to the level of profit that the ASX energy share can generate. Energy prices play a very important role.

Woodside’s production costs typically don’t change much year to year per unit of production. That means that any additional revenue for that production largely adds to the net profit line (after paying more to the government), while a decline in that revenue largely cuts into net profit.

I think it’s good to keep the above in mind when it comes to future dividend payments for owners of Woodside shares.

FY25

The company’s financial year follows the calendar year, so its FY25 has only recently finished. The ASX energy share recently released the 2025 fourth quarter update, giving brokers like UBS the chance to provide analysis on the company.

After seeing its production numbers and 2026 guidance, UBS said:

Woodside Energy (WDS) reported DQ25 production +4% & sales rev +7% ahead of market expectations due to stronger oil production from both Mad Dog (US Gulf Coast) & Sangomar (Senegal).

While Sangomar has started to decline from 4Q25, a beneficial one-off adjustment to WDS’ share of production under the production sharing contract with the Senegalese Gov saw higher q/q production net to WDS.

New 2025 line item guidance, combined with stronger 4Q production sees us lift 2025E EPS +8% and bolstering the 2025E final div (we assume a payout of 80% of underlying NPAT.

…While the FY[25] result is now substantially de-risked, we remain cautious of a material forecast decline y/y into 2026 on NPAT & divs & FCF [free cash flow].

UBS is predicting that the business could decide to pay a final dividend per share of US 39 cents per share with the FY25 result, with the annual payout being US 92 cents per share.

FY26

We’re already a month into the 2026 financial year for Woodside and UBS commented on the company’s 2026 guidance. It said:

Despite strong 4Q oil production, new 2026 production guidance was 4% below consensus expectations at the midpoint. Production guidance by product points to weaker oil production in 2026 than the market expected (LNG production was in line). We believe the key driver of an implied 13% cut to cons 2026 oil production forecasts (to meet midpoint of guidance) is a faster decline rate at Sangomar followed by natural field decline in Aust. oil assets.

UBS is projecting that Woodside could pay an annual dividend per share of US 43 cents in FY26.

FY27

The dividend payout per Woodside share is expected by UBS to increase in the 2027 financial year.

The ASX energy share is predicted to pay an annual dividend per share of US 67 cents in FY27.

FY28

The 2028 financial year could see the company’s annual dividend almost recover back to FY25 levels.

UBS’ forecast suggests that the business could pay an annual dividend per share of US 83 cents in FY28.

FY29

The last year of this series of projections is the 2029 financial year, which is quite a while away in the world of energy.

UBS forecasts that the business could pay an annual dividend per share of US 77 cents in FY29.

The post Here’s the dividend forecast out to 2029 for Woodside shares appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs to target following the RBA interest rate hike
• 10 most traded ASX shares among 1 million Aussie investors last year
• Oil pulls back as markets look to the next catalyst. Here’s what to watch
• Buying ASX energy shares? Here’s how Santos and Woodside shares stacked up in January
• Here’s the earnings forecast out to 2028 for Woodside shares

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.

Experts are feeling very bullish about the prospects of certain ASX shares with numerous buy ratings.

I think it can be a very positive sign for potential positive returns when a business is rated as a buy by a number of analysts, rather just one or two.

Of course, it’s possible that they’re all wrong. But, I also have a positive view on the below ASX shares at the current valuations.

WiseTech Global Ltd (ASX: WTC)

According to CMC Markets, in the last three months there have been seven different analysts that have called WiseTech shares a buy. The global technology company provides software for the logistics sector.

The average price target for the WiseTech share price is $106.14, implying a possible rise of more than 80% within the next year. The most optimistic price target is $130, implying a theoretical rise of more than 120%, while the lowest price target of $74 still implies a possible rise of close to 30%.

While the market may be concerned about a possible impact by AI on the ASX share, UBS thinks that there’s an opportunity for names in the software as a service (SaaS) space to benefit from AI monetisation and deliver rising average revenue per user (ARPU).

UBS thinks that a new commercial model could drive price rises of around 5% going forwards, with customers benefiting from four new AI capabilities.

The broker thinks there could be further upside for WiseTech if “i) large freight forwarders in contract move earlier than expected to the commercial model; and ii) customers [are] willing and able to disburse/pass through their CargoWise software costs to the end customer”.

UBS thinks the WiseTech share price valuation is attractive as it’s trading cheaper than it has historically and it has AI defensiveness.

Lottery Corporation Ltd (ASX: TLC)

The national lottery operator has been rated as a buy by at least four brokers, according to CMC Markets.

The average price target on the business is $5.53, implying a potential mid-single-digit rise. The highest price target of $6.30 implies a theoretical rise of around 20% within the next year.

UBS is the broker that’s most optimistic about the ASX share. The broker wrote in a recent note:

We believe Lottery Corp has a compelling ‘growth formula’ that may be underestimated by [market] consensus forecasts. Once normalising for the jackpot cycle (now UBSe FY27E), we expect Lottery Corp to consistently deliver high single digit EPS growth supported by (1) GDP lottery top line (UBSe revenue +4.3% pa), (2) digital channel mix shift (UBSe VC +5.9% pa), (3) scalable cost base (UBSe EBITDA 6.6% pa), and (4) capital boosters such as leverage and buybacks (post Vic licence renewal). By FY31 we forecast EPS 6% higher than consensus, mostly due to digital mix/ VC margin.

A mixture of revenue growth, rising margins and share buybacks for investors could mean very positive things for owners of this ASX share.

UBS predicts earnings per share (EPS) could rise from a predicted 17 cents in FY26 to 26 cents in FY30, while maintaining a high dividend payout ratio.

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

More reading

• Why I think the market is wrong about WiseTech shares
• These were the 10 most traded Australian shares last week
• 2 unloved ASX 200 shares I’m tipping to beat the market
• Down 50% from recent highs: Is it time to buy these ASX stocks?
• Why buy and hold investing with ASX shares could make you rich

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

If you have $5,000 to invest this month, exchange traded funds (ETFs) could be worth considering.

They can make it easier to get diversified exposure to the share market without needing to pick individual winners.

By combining a small number of well-chosen ETFs, investors can gain access to global growth, high-quality businesses, and long-term structural themes, all in one simple portfolio. Here are three ASX ETFs that could be worth considering right now.

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

The first ASX ETF to consider is the iShares S&P 500 AUD ETF.

This popular fund tracks the S&P 500 Index, giving investors exposure to many of the largest and most well-known businesses in the world. Current holdings include Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Costco Wholesale (NASDAQ: COST).

What makes this fund particularly compelling is the way the index evolves over time. This means that investors are not relying on today’s winners staying dominant forever, but instead they are backing the ongoing strength of the US corporate sector as a whole.

For long-term investors, the S&P 500 has been a powerful core holding over multiple decades.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

Another ASX ETF to consider is the VanEck Morningstar Wide Moat ETF.

This fund invests in US-listed companies that are judged to have sustainable competitive advantages, or wide economic moats. These are businesses that can defend their market positions over long periods through brand strength, switching costs, or scale.

Holdings include Adobe (NASDAQ: ADBE), Salesforce (NYSE: CRM), Airbnb (NASDAQ: ABNB), and Otis Worldwide (NYSE: OTIS). Each benefits from entrenched positions in their respective industries.

Rather than focusing on size or momentum, the VanEck Morningstar Wide Moat ETF looks for businesses trading at attractive prices relative to their long-term value. This quality-plus-valuation approach could appeal to investors who want growth potential without relying purely on optimism.

Betashares Global Cybersecurity ETF (ASX: HACK)

A final ASX ETF to look at is the Betashares Global Cybersecurity ETF.

It provides exposure to companies that protect digital systems, networks, and data. Its holdings include CrowdStrike (NASDAQ: CRWD), Palo Alto Networks (NASDAQ: PANW), Fortinet (NASDAQ: FTNT), and Zscaler (NASDAQ: ZS).

As businesses continue moving operations online and cyber threats become more sophisticated, demand for these services is likely to remain strong over the long term. This bodes well for the growth outlook of the fund’s holdings.

The post Where to invest $5,000 in ASX ETFs this month appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF and iShares S&P 500 ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

During earnings season, it’s not uncommon to see large share price swings as investors react to results. Unfortunately for two ASX healthcare shares, recent announcements sent their share prices tumbling. 

Neuren Pharmaceuticals Ltd (ASX: NEU) and Clarity Pharmaceuticals Ltd (ASX: CU6) experienced share price declines yesterday of 10% and 4% respectively. 

Both ASX healthcare shares have had a tough past week. 

Does this create a buy low opportunity? Or is it going to be more of the same moving forward?

Let’s find out. 

Neuren Pharmaceuticals Ltd (ASX: NEU)

Neuren Pharmaceuticals is a biopharmaceutical company specialising in developing new therapies for neurodevelopmental disorders that emerge in early childhood and are characterised by impaired connections and signalling between brain cells.

Its share price crashed almost 10% yesterday after news was released that its partner, Acadia Pharmaceuticals Inc. (NASDAQ: ACAD), received a negative trend vote from Europe’s drug regulator for trofinetide, its treatment for Rett syndrome.

This dealt a potential blow to future revenue. 

While the drug is already approved in the US, Canada, and Israel, the uncertainty around European approval has investors selling, even though Acadia plans to appeal the decision.

For potential investors, the appeal process will certainly be worth monitoring, as it will directly impact future earnings. 

Its stock price is now down 15% in just the last 5 days of trading. 

Based on analyst ratings via TradingView, this could be a buy low opportunity for investors. 

Analysts ratings via TradingView have an average 12 month price target of $24.73 on this ASX healthcare stock. 

That indicates a massive upside of 69% from yesterday’s closing price of $14.63. 

However it doesn’t come without risk, pending the result of the company’s appeal. 

Clarity Pharmaceuticals Ltd (ASX: CU6)

This ASX healthcare stock has also been on the decline in the past week following the release of its quarterly report.

It is a clinical stage radiopharmaceutical company developing next-generation theranostic (therapy and imaging) products, based on its platform SAR Technology.

Clarity Pharmaceuticals shares fell 3.9% yesterday and are down more than 15% in the last week. 

After such a large fall in a short period of time, it could be a buy-low opportunity. 

This ASX healthcare stock closed trading yesterday at $2.96 per share. 

However the TradingView has an average analyst price target of $7.35. 

This indicates an upside of more than 148%. 

An important factor for future investors to monitor is the ongoing Phase II SECuRE clinical trial, which is testing a targeted treatment for advanced prostate cancer.

The post Are these 2 ASX healthcare shares a buying opportunity after yesterday’s crash? appeared first on The Motley Fool Australia.

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

Here at The Motley Fool, we are always looking to identify S&P/ASX 200 Index (ASX: XJO) stocks that could be undervalued.

Three that have been hotly covered in recent weeks are Pro Medicus Ltd (ASX: PME), REA Group Ltd (ASX: REA) and Nextdc Ltd (ASX: NXT). 

These ASX 200 stocks are either sitting close to 52-week lows, or far from yearly highs.

However for all three, it looks like there could be greener pastures ahead. 

Based on recent price targets from analysts, let’s look at just how profitable they could be as a value investment over the next 12 months. 

Pro Medicus Ltd (ASX: PME)

Pro Medicus provides medical imaging technology globally. 

It is the ASX 200’s fifth-largest company.

The company is recognised as a leading supplier of radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualisation solutions for medical practices and hospitals.

Yesterday, Pro Medicus shares closed at $177.56. 

This is a 37% drop over the last 12 months. 

However there is plenty of long-term potential for this ASX 200 stock. 

In its FY25 result, the company reported revenue growth of 31.9% to $213 million and net profit after tax (NPAT) growth of 39.2% to $115.2 million.

With strong fundamentals, low operating costs and a dominant market presence, I think it’s a matter of “when” not “if” this stock bounces back. 

A recent rating from Macquarie included an outperform rating and price target of $291.30. 

Should Pro Medicus shares hit this target in the next 12 months, a $10,000 investment would turn into approximately $16,409.

REA Group Ltd (ASX: REA)

REA Group shares have been heavily sold over the last year, likely due to AI concerns and competition worries.

But while investors have been exiting the stock, experts remain steadfast in their confidence. 

Yesterday, REA Group shares closed at $191.60 each. 

This is hovering close to yearly lows, with the ASX 200 stock down almost 23% in the last 12 months. 

The Motley Fool’s Tristan Harrison reported earlier this week that the team at UBS sees UBS an economic moat in customer experience, brand, uniqueness of product and complexity of the ecosystem. 

The broker also said the negative AI narrative could unwind over this year.

UBS has a price target of $255 on REA Group shares. 

If this ASX 200 stock were to hit that target in the next year, a $10,000 investment would grow to approximately $13,308. 

Nextdc Ltd (ASX: NXT)

This ASX 200 stock has also been hotly covered due to its perceived value and connection with the AI trend.

The company operates data centres in Australia, New Zealand and Southeast Asia. It focuses on co-location services to local and international organisations as well as interconnectivity between enterprises, global cloud, ICT providers, and telecommunication networks.

While it has fought back considerably from 52-week lows, estimates from brokers indicates the current price is still a value play. 

NextDC shares closed yesterday at $13.26 each. 

However, Ord Minnett has a buy recommendation and a $20.50 target price on this ASX 200 stock. 

If it hit that target in a year, a $10,000 investment would grow to be worth approximately $15,460. 

The post How much could a $10,000 investment in these ASX 200 stocks be worth if they hit 12 month targets? appeared first on The Motley Fool Australia.

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

Owning Macquarie Group Ltd (ASX: MQG) shares could be a strong pick for passive income over the longer-term as the business continues to invest for growth over the years.

The business has four different divisions – banking and financial services (BFS), asset management, investment banking and commodities and global markets (CGM). Impressively, it has global operations with around two-thirds of its income generated overseas.

But, in recent years, the business has worked on growing its presence in the Australian banking sector.

According to reporting by the Australian Financial Review, Macquarie’s mortgage book rose by 2.45% in the month of December 2025, the fastest growth rate since June 2022. It was also 3.3x the average of all banks. Those numbers were based on APRA data.

Those numbers bode well for the ASX financial share and its ability to pay good dividends in the years ahead. With expectations of rising payouts for investors, let’s take a look at the projections and how many Macquarie shares would be needed.

Passive income projection

According to the forecast on Commsec, the business is projected to increase its annual dividend by 9.2% year-over-year in FY26 to $7.10. At the time of writing, that translates into a dividend yield of 3.3%, excluding any franking credits.

If an investor wanted to receive $1,000 of annual passive income in 2026 with that forecast dividend, that would mean that’d need to own 141 Macquarie shares.

However, the business has already paid its FY26 half-year dividend, so it may be useful to look at the projection for FY27 too because it’s not too long until that financial year starts.

The forecast on Commsec suggests the business could grow its annual payout by 8.4% to $7.70. That would be a dividend yield of 3.6%, excluding any franking credits.

If an investor wanted to receive $1,000 of annual passive income based on the FY27 projection, someone would need 130 Macquarie shares.

Is this a good time to buy Macquarie shares?

Broker UBS thinks so, after recently changing its rating on the ASX financial share to a buy. UBS wrote:

Macquarie’s profitability over the past three years (10.2% ROTE, compared to its long-term avg of 16.4%) has underperformed mkt expectations. This weaker performance contributed to an 8.3% decline in its share price in 2025, which lagged behind both the broader mkt and its peers.

With the need for improvement, we believe MAM’s exit from public markets in the US and Europe, finalised in Dec ’25, is a +ve development. This transition shifts the business focus further toward private markets, particularly infra. However, with ongoing concerns around CGM’s performance and the timing of asset realisations, we think the mkt has not fully factored in the implications of this divestment on MAM’s fee structure, and performance fee potential. Upgrade to Buy.

UBS currently has a price target of $235 on the business. That implies a possible rise of around 10% (at the time of writing) within the next year.

The post How many Macquarie shares do I need to buy for $1,000 of annual passive income? appeared first on The Motley Fool Australia.

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• Qube Holdings updates investors on Macquarie Asset Management proposal
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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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

WiseTech Global Ltd (ASX: WTC) shares are down more than 50% over the past 12 months. On the surface, that kind of move suggests something is seriously broken. But when I look through the reasons behind the sell-off and compare them to what the business is actually doing today, I come to a very different conclusion.

In my view, the market has become too focused on short-term disruption and sentiment, and not focused enough on WiseTech’s long-term earnings power and strategic position in global logistics.

What actually drove the sell-off

The share price decline didn’t happen for just one reason. It was a combination of factors landing at the same time.

Growth in WiseTech’s core CargoWise business slowed after years of very strong expansion. That alone was enough to trigger concern, given the premium valuation the stock previously enjoyed. On top of that, there was management and board upheaval, governance noise, and highly publicised issues involving the founder, which damaged confidence even further.

At the same time, WiseTech was integrating a large acquisition and changing its business model, adding complexity just as investors were becoming less tolerant of execution risk across the tech sector more broadly. The result was a sharp reset in expectations, and the share price reflected that almost immediately.

All of that explains why the stock fell. It doesn’t automatically explain why it should stay down here.

The core business remains very strong

What I think gets lost in the discussion is just how entrenched WiseTech’s core platform really is.

CargoWise is not optional software. It is mission-critical infrastructure for freight forwarders and logistics providers operating across borders. Once embedded, it becomes deeply integrated into workflows, compliance processes, and customer operations. Switching away is expensive, risky, and highly disruptive.

Recent company updates continue to highlight strong customer retention, ongoing product development, and expanding functionality across the platform. WiseTech is still investing heavily in automation, compliance, and end-to-end logistics solutions, which only increases the value of CargoWise to existing customers over time.

That kind of stickiness is exactly what underpins long-term recurring revenue.

Execution is improving, not deteriorating

Another reason I think the market is wrong on WiseTech shares is that it is still pricing them as if execution risk is getting worse. Based on recent announcements and updates, I think the opposite is happening.

Management has been clear about refocusing on operational discipline, simplifying the commercial model, and improving delivery. Product launches are continuing, and the integration of prior acquisitions is progressing, albeit more quietly than during the growth-at-all-costs phase.

The valuation reset changes the risk-reward

WiseTech was never a cheap ASX share at its peak. It was priced for near-flawless execution and sustained high growth. That is no longer the case.

After a 50% plus decline, expectations are far lower and the risk-reward is more favourable. The valuation now reflects scepticism around growth, governance, and integration. For long-term investors, that matters. A lot of bad news is already priced in.

If WiseTech simply delivers steady growth, improves execution, and avoids further major disruptions, the upside from here could be meaningful. It doesn’t need to return to peak optimism for shareholders to do well.

Foolish takeaway

I don’t think WiseTech shares are risk-free. They aren’t. But I do think the market has gone too far in punishing the stock for issues that are increasingly behind it rather than ahead of it.

The core business remains dominant, customer stickiness is high, execution is stabilising, and expectations are far lower than they were a year ago. For me, that combination suggests the market is being overly pessimistic, and that WiseTech shares may represent a genuine long-term buying opportunity for patient investors willing to look beyond the recent noise.

The post Why I think the market is wrong about WiseTech shares appeared first on The Motley Fool Australia.

More reading

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• Down 50% from recent highs: Is it time to buy these ASX stocks?
• Why buy and hold investing with ASX shares could make you rich
• Why these brokers are very bullish on the WiseTech share price

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

Yesterday, the Reserve Bank of Australia (RBA) announced an interest rate hike. The official cash rate was lifted by 25 basis points to 3.85%.

This was largely in response to persistently high inflation. 

This RBA decision impacts many aspects of the Australian economy. 

When a decision like this is made, it’s prudent for investors to look at where opportunity may lie. 

It’s useful to think about what types of ETFs may benefit or be more resilient in that environment. 

Rate hikes can pressure some sectors (like high-growth tech or bonds) while supporting banks, commodities, and floating-rate assets.

Here are three ASX ETFs that may be poised to benefit from increased interest rates. 

BetaShares S&P/ASX 200 Financials Sector ETF (ASX: QFN)

The case for this ASX ETF is pretty straightforward. 

When the RBA raises the cash rate, financial companies – especially banks – often see improved profitability. 

That’s because banks can typically pass higher rates onto borrowers faster than they raise deposit costs, at least initially, which can widen net interest margins (NIM) and boost earnings. 

This fund has strong exposure to this sector. 

It includes a portfolio of the largest ASX-listed companies in the financial sector. 

This includes the ‘Big 4’ banks and insurance companies, while excluding Real Estate Investment Trusts.

In fact, more than 70% of the portfolio is comprised of Australia’s largest four banks. 

SPDR S&P/ASX 200 Resources Fund (ASX: OZR)

During rate rises, investors often rotate toward sectors tied to commodities (materials, energy, gold) which can outperform as inflationary pressures build and commodity prices strengthen.

This ASX ETF provides exposure to Australia’s resource sector (miners, energy). 

These stocks have historically reacted well when global demand and commodity prices are strong.

This fund aims to track the returns of the S&P/ASX 200 Resources Index.

At the time of writing, it is made up of 51 holdings, with its largest exposure being to:

• BHP Group Ltd (ASX: BHP) 35.16%
• Rio Tinto Ltd (ASX: RIO) 7.80%
• Woodside Energy Group Ltd (ASX: WDS) 6.64%

BetaShares Global Banks ETF – Currency Hedged (ASX: BNKS)

Australia isn’t the only country that operates with a central bank cash rate target. 

As central banks tighten policy, bank profitability in major economies like the US and Europe often strengthens, which directly supports the earnings of the banks held in BNKS.

For investors who anticipate global economies may also increase rates this year, this ASX ETF comprises the largest global banks (ex-Australia), hedged into Australian dollars.

This also provides international diversification, so an investor would not be relying solely on Australian rate decisions.

The post 3 ASX ETFs to target following the RBA interest rate hike appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
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Motley Fool contributor Aaron Bell has positions in BHP 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) returned to form and charged higher. The benchmark index rose 0.9% to 8,857.1 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 to fall

The Australian share market looks set to fall on Wednesday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 58 points or 0.65% lower this morning. In late trade in the United States, the Dow Jones is down 0.8%, the S&P 500 is down 1.35% and the Nasdaq is 2.15% lower.

Oil prices rise

ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Wednesday after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.9% to US$63.31 a barrel and the Brent crude oil price is up 1.7% to US$67.42 a barrel. This was driven by a sharp fall in oil inventories.

Rio Tinto shares on watch

Rio Tinto Ltd (ASX: RIO) shares will be on watch on Wednesday. This is because the deadline for the potential Glencore (LSE: GLEN) takeover is rapidly approaching. Rio Tinto has until tomorrow to make an offer, otherwise LSE rules state that it cannot make another play for Glencore for another six months.

Gold price rebounds

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session on Wednesday after the gold price rebounded overnight. According to CNBC, the gold futures price is up 6.65% to US$4,961.4 an ounce. Traders appear to believe the precious metal was oversold in recent sessions.

Pinnacle results

Pinnacle Investment Management Group Ltd (ASX: PNI) shares will be on watch on Wednesday after the investment company released its half-year results. The company reported an 11% decline in net profit after tax to $67.3 million. In light of this profit decline, Pinnacle was forced to cut its interim dividend by 12% to 29 cents per share. This weaker result reflects lower performance fees from its affiliates.

The post 5 things to watch on the ASX 200 on Wednesday 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.

Shares in Cleanaway Waste Management Ltd (ASX: CWY) have slipped to their lowest level in more than 2 years.

On Wednesday, the Cleanaway share price fell 2.03% to $2.41, after touching an intraday low of $2.38. That marks the lowest closing price for the stock since early November 2023 and extends its recent slide to around 7% over the past month.

The move comes despite Cleanaway operating in a traditionally defensive sector, where earnings are usually more resilient during periods of economic uncertainty.

What does Cleanaway actually do

Cleanaway is Australia’s largest waste management and environmental services provider. The company employs more than 10,000 people and operates across over 350 sites in Australia, New Zealand and the Middle East.

Its services include municipal waste collection, recycling, landfill operations, liquid waste treatment and industrial services. Because waste still needs to be collected regardless of economic conditions, Cleanaway is typically viewed as a defensive industrial stock.

Why the share price is under pressure

There has been no single negative announcement behind the latest drop. Instead, a combination of smaller factors appears to be weighing on investor sentiment.

Brokers have pointed to softer trading conditions early in FY26, which has tempered near term expectations. As a result, earnings are now expected to skew more heavily toward the second half of the year.

Cleanaway has also underperformed the broader S&P/ASX 200 Index (ASX: XJO) over the past year. That kind of underperformance often pushes investors toward stronger stocks and can reinforce selling pressure.

A look at the share price

The chart shows Cleanaway shares remain in a clear downtrend.

The stock is trading below its long-term moving averages and recently broke below support in the mid $2.40 range. The $2.38 level now becomes an important area to watch. If that level holds, it could signal that selling pressure is easing.

In addition, the relative strength index (RSI) is moving toward levels that often suggest a stock is becoming oversold.

The fundamentals still look steady

Despite the weak share price, Cleanaway’s underlying business remains relatively stable.

Analysts are forecasting modest revenue and earnings growth over the coming years, supported by population growth, infrastructure activity and increasing environmental regulation. The company continues to focus on operational efficiency and cost control.

The dividend yield sits around 3%, which is not huge but has been reasonably consistent. While is not a high growth stock, it does offer predictable cash flows compared with many other industrial businesses.

What brokers think

Broker sentiment remains broadly supportive. Several major brokers currently rate Cleanaway as a ‘buy’ or ‘outperform’, with price targets generally clustered between $3.10 and $3.30.

From current levels, that implies potential upside of roughly 30%, assuming earnings recover as expected.

Some analysts also highlight the strategic value of Cleanaway’s assets, noting that waste management infrastructure is difficult to replicate.

Foolish takeaway

The downtrend may not be over yet, but current prices may appeal to investors seeking exposure to a defensive industrial business with steady demand.

Some patience may be required, though the recent pullback could prove attractive for longer term investors.

The post This ASX 200 defensive stock just hit a multi-year low. Buy the dip or stay away? 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.