Are you on the lookout for some big returns in 2026? If you are, then it could be worth looking at the two ASX 200 shares in this article.

That’s because analysts believe they could rise 50% or more this year. Here’s what they are recommending to clients:

Life360 Inc (ASX: 360)

Bell Potter thinks this location technology company’s shares could be seriously undervalued at current levels.

The broker was impressed with the ASX 200 share’s recent quarterly update and believes there’s far more to come in 2026. It said:

Life360 provided a Q4 and 2025 update which was ahead of both the guidance and our forecasts: Year end MAU of 95.8m (vs BPe 93.5m) comprising 50.6m in the US (vs BPe 49.5m) and 45.3m international (vs BPe 44.0m); Year end paying circles of 2.83m (vs BPe 2.80m) comprising 2.00m in the US (vs BPe 1.97m) and 0.83m international (vs BPe 0.81m); 2025 revenue expected to be b/w US$486-489m (vs guidance US$474-485m and BPe US$480m); and 2025 adjusted EBITDA expected to be b/w US$87-92m (vs guidance US$84-88m and BPe US$86m).

The company also provided one outlook statement for 2026 which was MAU growth of 20% which implies absolute growth of c.19m users to around 115m at year end.

Bell Potter has a buy rating and $45.00 price target on its shares. Based on its current share price of $28.64, this suggests that upside of 55% is possible between now and this time next year.

Mesoblast Ltd (ASX: MSB)

The team at Bell Potter also thinks that big returns could be coming from this biotechnology company’s shares in 2026. Though, it warns that it would only be suitable for investors with a high tolerance for risk.

The broker believes that the ASX 200 share is in a very healthy position following its new debt funding and growing demand for its Ryoncil product. It explains:

We continue to expect large reductions in cash burn in the March and June quarters reflecting collections from current and future sales with operating expenses stabilising at the new higher level. Elsewhere, this note reviews key terms of the new debt funding package. The new loan package vastly simplifies the balance sheet and earnings transparency by virtue of the simple 8% charge, paid quarterly – interest only for five years.

Finally, the recent update on real world performance of Ryoncil in the treatment of paediatric SR aGvHD is reassuring. 21 of 25 patients (84%) treated since launch were alive at day 28. The challenge for the commercial team is to convince physicians that established modes of treatment are now obsolete. Ryoncil is here to stay.

Bell Potter has a buy rating and $4.45 price target on its shares. This implies potential upside of approximately 80% for investors over the next 12 months.

The post These ASX 200 shares could rise 50% to 80% appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Can this ASX 200 tech share power higher from here?
• Why these ASX growth shares could still be early in their story
• Why buy and hold investing with ASX shares could make you rich
• These were the worst-performing ASX 200 shares in January

Motley Fool contributor James Mickleboro has positions in Life360. 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.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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• These 3 ASX 200 shares have soared over 200% in a year!

Motley Fool contributor Sebastian Bowen has positions in Newmont. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield, Life360, and Light & Wonder Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The gold price reached a record intraday high of $US5,608.35 per ounce last Thursday.

Then came the steepest fall in more than a decade during overseas trading sessions on Saturday (Australian time).

The gold price hit an intraday low of  $US4,405  per ounce yesterday before rebounding in afternoon trading.

Top to bottom, the gold price tumbled 21% over three days.

Should ordinary investors be freaking out or taking this in their stride?

What just happened to the gold price?

Analysts at Trading Economics said Saturday’s gold price sell-off was triggered by the US President’s new Federal Reserve chair pick.

President Donald Trump nominated Kevin Warsh to replace current chair, Jerome Powell, when his term expires in May.

The analysts said Warsh was “viewed as more hawkish than other contenders, raising concerns about tighter monetary policy”.

Markets have been concerned over the Fed’s independence amid President Trump’s persistent public pressure on Powell to cut rates.

Those concerns eased after the more hawkish nominee was announced, prompting a boost for the US dollar.

While the nomination ended months of uncertainty, Warsh was a surprising choice given Trump’s preference for lower interest rates.

It was expectations of lower rates, alongside a weakening US dollar and high US debt, that fuelled the remarkable run-up in the gold price last month.

The gold price went from just over US$4,300 per ounce on 31 December to above US$5,600 per ounce last Thursday.

That’s a 30% gain in less than a month.

To put that into greater perspective, that’s just under half the gain we saw over the entirety of last year for the gold price.

Trading Economics analysts said:

That advance was fuelled by strong central bank demand and the so-called debasement trade, as investors rotated into physical assets from currencies and bonds amid concerns over surging government debt.

The debasement trade refers to investors moving out of paper assets, such as bonds and cash, into real assets, such as gold, silver, and other commodities, because they fear the US dollar will weaken further.

The US dollar’s weakness has been driven by concerns over US debt, lower US interest rates and expectations of more to come, and broader economic and geopolitical risks.

This has driven many central banks to diversify into gold, which is seen as the quintessential “safe-haven asset“.

Profit-taking and positioning drive 21% rout

While Warsh’s nomination was the spark, profit-taking was the fire that led to the gold price plummeting 21% in three days.

Trading Economics analysts said: “Profit-taking also emerged after a relentless rally that had pushed gold to record highs.”

In the Australian Financial Review, Aakash Doshi, global head of gold and metals strategy at State Street Investment Management, said the sell-off was also “probably … exacerbated by month-end rebalancing as both short dollar and long precious metals has been the consensus macro trade over the past two to three weeks”.

Commodity analysts at French bank Societe Generale SA said the sell-off also represented de-leveraging and positioning.

The analysts said (courtesy Kitco News):

Metal prices didn’t just correct on Friday — they deleveraged.

Gold fell 10%, exceeding the largest intraday drop since the 2008 global financial crisis and the biggest daily decline since the early 1980s. 

They added:

When positioning gets stretched, stops get hit, margin calls rise, and systematic funds cut risk.

Should you be worried?

AMP head of investment strategy Shane Oliver said the gold price was poised for a correction after such a big run-up.

Oliver said (courtesy abc.net.au):

Gold has been overbought and got ahead of itself.

These rises have been exponential.

It’s been vulnerable to a pullback.

Warwick Grigor, an analyst at mining investment specialists Far East Capital, said the fundamentals for gold had not changed.

What has changed in the big picture in a week? Nothing really.

With Trump in office the chaos will continue.

We have just seen over-zealous speculators get carried away and the enthusiasm has been reigned in, appropriately, for the time being.

Movements like this are sent to test our resolve and there will be selling by some, but there but has been no fundamental shift in the
thematic.

Silver also took a pounding, falling 26% in [30 January] trading. We need to take this in our stride.

Grigor pointed out that gold miners would still make plenty of money despite the 21% fall in the gold price.

He said implied profitability for gold producers was between US$3,000 and US$4,000 per ounce.

Gold price rebounding now

The gold price began rebounding yesterday and is up 3.45% on Tuesday to US$4,820 per ounce.

Trading Economics analysts said bargain hunting has emerged, and the gold price remains supported by central banks and the debasement trade.

Societe Generale SA is now tipping an increase in the gold price to US$6,000 by year’s end, up from their previous prediction of US$5,000.

In a new note, commodity analysts at the bank said (courtesy Kitco News):

… we remain bullish on gold as we believe the fundamental rationale for precious upside remains despite one area of uncertainty being removed – namely, lower Fed institutional chaos.

We always believe a correction can be very healthy.

JP Morgan has a year-end forecast of US$6,300 per ounce for the gold price, with potential to rise toward US$6,600 next year.

JP Morgan analysts said (courtesy wsj.com)

While the dust has yet to fully settle from last week, it has not derailed our structural bullish view on gold.

This long-term rally in gold has not and will not be linear, so for now we once again digest, reset and repeat.

The post Gold price rebounds after 21% dive: What’s going on? appeared first on The Motley Fool Australia.

More reading

• 3 ASX growth shares to buy before they rebound
• Oil pulls back as markets look to the next catalyst. Here’s what to watch
• Are Graincorp and PLS shares buys, holds, or sells?
• Will Telix shares drop below $10?
• Check out the Woolworths share price and dividend forecast for 2026 – it’s hard to believe!

JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended JPMorgan Chase. 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 may be trading within sight of a record high, but not all shares have climbed with it.

A good number of ASX growth shares have been sold off over the past 12 months as investors rotated into the large miners and gold and silver.

While this is disappointing for growth investors, it has arguably created an incredible buying opportunity for those that have capital to deploy.

Let’s take a look at three that analysts think could be worth considering before they rebound. They are as follows:

NextDC Ltd (ASX: NXT)

The first ASX growth share that could rebound is NextDC.

NextDC operates data centres that support cloud computing, enterprise IT, and increasingly AI-related workloads. Demand for data storage and processing continues to rise, even if short-term market sentiment fluctuates.

Its share price has been pressured by concerns over the AI boom and interest rates, but the long-term need for digital infrastructure has not gone away. As customers scale cloud and AI usage, high-quality data centre capacity remains critical.

The team at Macquarie thinks this could be a buying opportunity for investors. It recently put an outperform rating and $22.30 price target on its shares.

TechnologyOne Ltd (ASX: TNE)

Another ASX growth share that could be worth buying before a rebound is TechnologyOne.

TechnologyOne develops enterprise software for governments, universities, and large organisations. These customers tend to be sticky, long-term users, which gives the company a high level of revenue visibility.

While its shares have pulled back alongside the broader tech sector, its fundamentals remain very much intact. The ongoing shift to a software-as-a-service model continues to lift recurring revenue and cash generation, while international expansion provides an additional growth lever. In fact, management believes it can double in size every five years because of these drivers.

If market sentiment toward quality software businesses improves, TechnologyOne’s consistency and long track record could see investors re-rate the shares.

UBS is bullish on TechnologyOne and has a buy rating and $38.70 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

A final ASX growth share to consider before a rebound is Temple & Webster.

The online furniture retailer has been weighed down by softer consumer spending and a de-rating of tech valuations. However, the business continues to operate in a large addressable market where its market share remains relatively small.

Temple & Webster has been improving customer retention, private-label penetration, and operational efficiency. These factors position the company to benefit disproportionately if trading conditions normalise.

Bell Potter thinks there’s major upside ahead for investors. It has a buy rating and $19.50 price target on its shares.

The post 3 ASX growth shares to buy before they rebound appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Experts rate these 2 ASX growth shares as buys this month!
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• Where I’d invest in ASX shares if the RBA increases the interest rate
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Motley Fool contributor James Mickleboro has positions in Nextdc, Technology One, and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One and Temple & Webster Group. The Motley Fool Australia has recommended Technology One and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Oil prices are back under pressure after a sharp pullback from recent highs, putting the commodity firmly back in focus for investors.

After rallying strongly through late January, crude oil has slipped around 5%, with West Texas Intermediate (WTI) now trading near US$61.90 per barrel. Brent crude has also moved lower, sitting around US$65.95 per barrel.

The move marks a shift in momentum after oil briefly pushed toward multi-month highs. It has also reopened debate over whether prices are entering a new phase or just consolidating after a volatile start to the year.

Oil gives back recent gains

Oil began the year with firmer momentum as geopolitical tensions increased, and traders focused on potential supply risks.

Those conditions helped push prices higher through January. However, the recent drop has erased much of that short-term rally, bringing oil back toward levels seen earlier in the year.

At current prices, WTI remains well above its 2025 lows, but still comfortably below levels that would suggest a sustained breakout. That leaves oil trading in a range-bound pattern, with sentiment shifting quickly based on news headlines and macro signals.

Markets turn their attention to what comes next

With oil back near US$62 per barrel, the market’s focus has shifted away from short-term price moves and toward what could drive the next sustained trend.

Traders are watching geopolitical developments closely, particularly in the Middle East, where any change in tone can quickly affect oil pricing. At the same time, broader financial markets are playing a growing role, with currency movements and global risk sentiment influencing commodity prices.

Supply conditions also remain important. Major producers continue to keep output steady, and global inventories remain relatively comfortable. Without a clear supply shock, oil prices have struggled to push meaningfully higher for long.

What this means for ASX energy stocks

Attention is increasingly turning away from oil price moves and toward underlying company fundamentals.

With crude prices pulling back, attention is likely to shift toward cost control, cash flow, and balance sheet strength. Woodside Energy Group Ltd (ASX: WDS) may benefit from its diversified oil and LNG mix, while Santos Ltd (ASX: STO) could face closer scrutiny due to its upstream exposure.

At current oil levels, neither company is under significant pressure, but sustained weakness would likely weigh on earnings forecasts.

Foolish Takeaway

Oil’s move back towards US$62 highlights just how quickly momentum can change in commodity markets. With prices sitting in the middle of a broad trading range, the next move will likely depend on confidence, geopolitics, and shifts in global markets rather than supply alone.

For those following Woodside and Santos, oil prices remain an important factor to watch as the year progresses.

The post Oil pulls back as markets look to the next catalyst. Here’s what to watch appeared first on The Motley Fool Australia.

More reading

• Buying ASX energy shares? Here’s how Santos and Woodside shares stacked up in January
• 5 things to watch on the ASX 200 on Tuesday
• Here’s the earnings forecast out to 2028 for Woodside shares
• 5 things to watch on the ASX 200 on Monday
• 3 ASX 200 shares I would buy in February

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

The team at Morgans has been busy running the rule over a number of ASX 200 shares this week following the release of updates.

Let’s see whether the two listed below have been given buy, hold, or sell ratings this week. Here’s what the broker is saying about them:

Graincorp Ltd (ASX: GNC)

Morgans was disappointed with this grain exporter’s guidance update. It highlights that its earnings guidance was significantly weaker than expected due to margin pressures. Unfortunately, the broker feels that these pressures are likely to remain in FY 2027.

However, due to recent share price weakness and its strategic assets, the broker has retained its accumulate rating with a reduced price target of $6.76 (from $9.05). It said:

GNC provided guidance ahead of its AGM on 18 February. Despite a large east coast winter grain crop, GNC continues to disappoint with FY26 earnings guidance materially below consensus expectations. While its volume guidance is unchanged, margins have weakened given the grain trading environment has deteriorated further. Importantly, its balance sheet remains strong. We have made material revisions to our forecasts. The difficult margin environment is likely to also affect FY27 earnings.

With payments to the insurer no longer required in big crop years, GNC’s fixed cost leverage should return when crop production issues around the world ultimately eventuate and global grain stocks tighten. However, we have now taken a much more conservative view on GNC’s ‘through-the-cycle’ EBITDA moving forward. GNC’s strategic assets are worth materially more than its current share price implies. However, the stock is lacking near term share price catalysts and investors will need to be patient.

PLS Group Ltd (ASX: PLS)

This lithium giant delivered a stronger than expected second-quarter update, with spodumene sales and revenue coming in ahead of expectations.

But this isn’t quite enough for a buy rating. The broker has upgraded PLS shares to a hold rating with a $4.60 price target. It explains:

Strong 2Q26 with a material spodumene sales and revenue beat vs MorgansF and consensus expectations. Cash balance +12% qoq with total liquidity of ~A$1.6bn leaving significant flexibility to fund growth and consider shareholder returns. Management is assessing the potential restart of the 200ktpa Ngungaju plant and other growth options in P2000 and Colina. Upgrade to HOLD (previously TRIM) on recent share price weakness with an unchanged A$4.60ps target price.

The post Are Graincorp and PLS shares buys, holds, or sells? appeared first on The Motley Fool Australia.

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• Top broker weighs in after Graincorp shares plummet 14%
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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.

Telix Pharmaceuticals Ltd (ASX: TLX) shares have dropped another 2.81% in Tuesday afternoon trade. At the time of writing, the shares are changing hands at a two-year low of $10.18 a piece. 

For the year-to-date the shares are now down 10.26% and they’re a huge 64.42% below this time last year. 

Share has caused the selloff?

Telix posted its Q4 FY25 results in late-January, where it said it had achieved its FY25 guidance of US$804 million. Although, it did come in on the lower end of guidance. Investors clearly aren’t pleased with the latest upside, with the trend for selling off shares continuing to accelerate.

It’s just one of many headwinds that Telix has faced over the past few months, including regulatory filing issues with the US Food and Drug Administration.

And now, many are questioning if Telix shares will drop below the $10 barrier?

How far will Telix shares fall?

Telix shares were last trading below the $10-mark over two years ago, in very-early January 2024. 

While it’s surprising that the share price has continued falling, given that analysts are widely bullish on the outlook for 2026, it is possible that there could be more declines to come.

The healthcare stock has faced setbacks from US regulatory bodies over the past year, and these headwinds have continued to weigh heavily on investor confidence. 

Meanwhile, the sector overall has also been under pressure. In fact, the S&P/ASX 200 Health Care (ASX: XHJ) index notably underperformed the wider market through the final months of 2025, and into early-2026. At the time of writing the index is 24.86% lower over the year.

Could it push even lower? Possibly. 

Will it be a sustained decline? Probably not.

The issue is that headwinds facing the biotech stock haven’t yet been resolved. And if regulatory setbacks continue or investor sentiment worsens, we could see the share price drop lower still.

But it’s worth noting that Telix still has exceptional growth potential amid a rapidly-growing market, so I expect that any declines below $10 would be temporary.

What do the experts think?

Analysts widely expect that the beaten-down biotech stock will climb higher in 2026.

The team at RBC Capital recently upgraded Telix shares to an outperform rating and said it believes that the current valuation represents a “compelling risk/reward profile” for longer-term investors. The broker has a $17 target price on Telix shares, which implies a potential 67% upside over the next 12 months, at the time of writing. 

Analysts at UBS are even more bullish on the shares. The team has a buy rating on Telix shares and a $31 target price. That implies a massive 204.5% upside from the current trading price.

I think, with potential upsides like that, at the current share price, Telix shares are a steal. 

The post Will Telix shares drop below $10? appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares highly recommended to buy: Experts
• These are the 10 most shorted ASX shares
• These 2 ASX shares are set to soar in 2026 and beyond
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• Down 60%, is there a once-in-a-decade opportunity in this ASX 200 stock?

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

At $31.04 (at the time of writing), it’s hard to believe this is where the Woolworths Group Ltd (ASX: WOW) share price sits today.

It’s hard to believe because, at this price, Woolworths shares are 11.6% below where they were five years ago. Yep, this time in 2021, this ASX 200 blue chip stock was going for $34.90 a share. Back in the middle of 2021, Woolies stock was over $40. That means the company remains down by about 25% from that high.

All in all, it has not been a good time to have owned shares of the ‘Fresh Food People’ over the past five years.

Woolworths has arguably gone through one of the toughest five-year periods of its recent history. The company has been dragged down by a litany of unfortunate events. Some were inside Woolworths’ control, others outside.

For one, investor concerns about several aspects of Woolworths’ business have come to the fore in recent times, most notably the sluggish performance of the company’s Big W and New Zealand divisions.

For another, the company has continually seen its leading position in the Australian grocery market erode in recent years, mostly to the benefit of its arch-rival Coles Group Ltd (ASX: COL).

The somewhat botched transition from former CEO Bradford Banducci to current CEO Amanda Bardwell didn’t help matters. Nor did the company’s most recent earnings report.

Woolworths share price: You won’t believe these dividend predictions

Back in August, we covered Woolworths’ full-year report for FY2025. Although this report contained some bright spots, there were areas of concern, too. The company did report a 3.6% rise in year-over-year revenue to $69.1 billion. However, thanks in part to a rise in costs and a gross margin slip, earnings before interest and tax in FY 2025 dropped by 12.6% to $2.75 billion. On the bottom line, net profit after tax fell 17.1% to $1.39 billion.

This all led Woolies to cut its final dividend for 2025 by 21.1% to 45 cents per share (fully franked). Over the entire year, Woolworths paid out a total of 84 cents per share. That was a 19.2% reduction on the $104 shareholders bagged over 2024 (disregarding the 40-cent special dividend).

But what is perhaps harder to believe than Woolworths’ dismal share price performance in recent years is where analysts see the company’s dividend heading next.

Last month, my Fool colleague looked at some analyst projections for the Woolworths dividend. And it makes for some exciting reading. Consensus estimates for the company’s payouts going forward are reprtedly a fully franked dividend total of 99.5 cents per share over 2026. That’s obviously a rapid rebound from the dividend cut investors endured last year.

From there, analysts anticipate that Woolworths could pay out a total of $1.13 in dividends per share in 2027, followed by $1.35 in 2028. If accurate, those payouts would represent year-on-year dividend increases of 18.45%, 13.57% and 19.46%, respectively.

If Woolworths does indeed fund those payouts, it would give the stock forward dividend yields of 3.21%, 3.64% and 4.35% at current pricing. That’s opposed to the company’s present, trailing dividend yield of 2.7%.

However, we’ll have to wait and see if these analyst predictions are on the money.

The post Check out the Woolworths share price and dividend forecast for 2026 – it’s hard to believe! 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 positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Qantas Airways Ltd (ASX: QAN) shares are pushing higher on Tuesday afternoon.

At the time of writing, the airline operator’s shares are up almost 1% to $10.25.

Why are Qantas shares rising today?

Today’s gain could have been supported by the release of an update on the Jetstar Japan business.

This afternoon, Qantas and Japan Airlines revealed that they have signed a non-binding memorandum of understanding (MoU) to facilitate the Narita-based low-cost carrier’s (LCC) transition to a new Japanese-based ownership structure. This is expected to set the airline up for its next phase of growth, sustainable development, and success.

Subject to further negotiation and regulatory approvals, Qantas intends to divest its full shareholding in Jetstar Japan, with Development Bank of Japan (DBJ) planning to enter as a shareholder.

It notes that DBJ has extensive aviation market knowledge and a proven track record in the aviation industry.

Jetstar Japan will maintain its independent LCC operations while creating new synergies with its shareholders to address rising inbound demand, promote regional travel, and enhance customer value and service quality.

Following the divestment, Qantas will concentrate its resources on its core Australian operations, Qantas and Jetstar Airways, to further accelerate the largest fleet renewal program in the company’s history.

Once the deal completes, Jetstar Japan will refresh its brand from Jetstar to a new brand, with the aim of further establishing itself as a leading Japanese LCC under this new brand and identity.

Commenting on the news, Qantas’ CEO, Vanessa Hudson, said:

We’re incredibly proud of the pioneering role Jetstar Japan has played in the low-cost aviation sector in Japan and sincerely thank our Jetstar team members for their unwavering commitment to maintaining excellent safety, operational and service standards for millions of customers.

We’re confident the new ownership structure will deliver greater value to customers, benefitting from the Development Bank of Japan’s domestic and international aviation knowledge and industry expertise as well as their strong, long-standing relationships with national and regional tourism bodies. We thank Japan Airlines for their strong partnership and look forward to continuing to work together during the transition and in oneworld.

Japan Airlines’ president and CEO, Mitsuko Tottori, added:

We are delighted to announce this new beginning for Jetstar Japan alongside DBJ and Tokyo Century. We also extend our deepest gratitude to Qantas for their 14-year partnership in establishing and developing the LCC market in Japan. By moving to this new structure, we will respond flexibly to market changes and maximize synergies with the JAL Group to achieve sustainable growth for JJP as a key LCC at the expanding Narita Airport.

The post Qantas shares higher on Jetstar Japan sale 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.

When a stock falls more than 40% from its recent high, it usually scares investors away. But sometimes that fear creates opportunity rather than danger.

That’s how I’m starting to feel about Zip Co Ltd (ASX: ZIP) shares right now.

After dropping around 45% from their October high, Zip shares look deeply out of favour despite the business continuing to deliver strong operating momentum. Based on its latest update, I think the market may be focusing on the wrong things.

A sharp share price fall, but not a broken business

Zip’s share price weakness hasn’t been driven by a collapse in fundamentals. Instead, it has largely followed a broader sell-off across growth and fintech stocks, combined with some nervousness around tech valuations more generally.

What stands out to me is that this sell-off has occurred while Zip is producing some of the strongest operating results in its history.

In its most recent quarterly update, the company delivered record cash EBITDA of $62.8 million, up 98% year on year. Total transaction volume rose nearly 39%, while total income increased by more than 32%. Those aren’t the numbers of a business going backwards.

The US business is growing

The most important part of the Zip story continues to be the United States.

US transaction volume rose more than 47% year on year in US dollar terms in the first quarter, while revenue climbed over 51%. Active customers increased by more than 480,000 over the past 12 months, and customer engagement metrics like average spend and transactions per customer also moved higher.

What I like here is that this growth is not being bought at any cost. Unit economics remain solid, with cash net transaction margins holding up and bad debts staying within target ranges. In other words, Zip is growing quickly without losing discipline.

Management upgraded its expectation for US transaction volume growth to be above 40% for FY26, which suggests momentum continued into the second quarter.

This appears accurate, with one Australian broker suggesting that app download data points to a very strong finish to 2025.

Improving profitability and operating leverage

One of the biggest changes at Zip over the past year has been the shift in how the business is viewed.

This is no longer a company burning cash in pursuit of scale. Zip is now producing meaningful operating leverage, with operating margins lifting to 19.5% from 13.1% a year ago.

That improvement has been driven by better funding costs, disciplined expense control, and the benefits of scale flowing through the model. The company also finished the quarter with more than $450 million in cash and liquidity, giving it flexibility to fund growth and return capital.

In fact, Zip recently increased its on-market share buyback from $50 million to $100 million, which I see as a strong signal of confidence from management at current prices.

A large addressable market

Despite its growth to date, Zip still operates in enormous addressable markets.

Digital payments, embedded finance, and flexible credit options continue to gain traction, particularly in the US. Zip’s integration with platforms like Stripe, Google Pay, and Google Chrome autofill shows how management is positioning the product deeper into everyday commerce.

The company is also expanding its product set with initiatives like Pay-in-2 and broader embedded finance offerings, which could open up new use cases beyond discretionary retail spending.

From my perspective, Zip looks like a business that is still early in its global growth journey, even if the share price suggests otherwise.

Foolish Takeaway

Zip shares are well below their highs, sentiment is weak, and growth stocks remain out of favour. But when I look through its updates, I see a company delivering record earnings, accelerating US growth, improving margins, and strengthening its balance sheet.

That disconnect is exactly what makes the opportunity interesting. I’m not pretending this is risk-free. Growth stocks can stay unloved for longer than expected. But with Zip now profitable, scaling, and buying back shares, I think this pullback looks like a chance to get greedy while others remain cautious.

The post Is it time to get greedy with Zip Co shares? appeared first on The Motley Fool Australia.

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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 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.