There are a lot of ASX shares for investors to choose from, but not all are necessarily buys.

To narrow things down, let’s see what analysts are saying about three popular shares, courtesy of The Bull.

Here’s what you need to know about them:

Insurance Australia Group Ltd (ASX: IAG)

The team at Baker Young thinks that investors should be selling this insurance giant’s shares this week.

The broker highlights that IAG shares are trading above its estimate of fair value and feels investors should be taking profit. It explains:

The decision by competition regulator, the Australian Competition and Consumer Commission (ACCC), to block IAG’s proposed acquisition of RAC Insurance (RACI) from the Royal Automobile Club of Western Australia highlights the rising barriers to inorganic growth for IAG. Further, the ACCC decision reflects a desire to stimulate greater competition in the general insurance market. With IAG trading above our valuation, we would be inclined to take profits around current levels.

Mineral Resources Ltd (ASX: MIN)

Analysts at Morgans highlight that this mining and mining services company’s shares have risen very strongly since April. Unfortunately, the broker believes the run is now over and has rated Mineral Resources shares as a hold.

Commenting on the high-flying company, Morgans said:

MIN is a diversified resources company in Western Australia. It has extensive operations in lithium, iron ore, energy and mining services. Mineral Resources enters 2026 with improved stability after a volatile period, supported by progress at Onslow Iron. On January 29, 2026, the company upgraded lithium volume guidance and maintained cost guidance at both operations.

It reduced net debt to about $4.9 billion as at December 31, 2025. We remain confident management can successfully execute its strategy and expect strong earnings growth in the current commodity price environment. The shares have risen from $14.40 on April 9, 2025 to trade at $61.18 on January 29, 2026. At this point, we believe the stock is fully valued.

Westpac Banking Corp (ASX: WBC)

Morgans thinks that this banking giant’s earnings growth could be challenging in the near term. As a result, it feels that investors should sell Westpac shares this week.

The broker believes there are better opportunities for investors elsewhere in the market. It said:

Weaker consumer sentiment in an uncertain policy environment cloud the earnings outlook. Recent economic commentary highlights creeping pessimism among Australian consumers. Uncertainty around interest rate expectations creates a challenging setting for major banks to profitably grow credit. Westpac’s long term projections show acceptable returns.

However, in our view, near term momentum appears constrained by operational adjustments, margin pressure and a more cautious economic tone. Given limited earnings catalysts on the horizon, we see better opportunities elsewhere.

The post Buy, hold, sell: IAG, Mineral Resources, and Westpac shares appeared first on The Motley Fool Australia.

More reading

• What happened with the big four ASX 200 bank stocks like ANZ and CBA shares in January?
• Analysts name 3 ASX shares to sell
• Where I’d invest in ASX shares if the RBA increases the interest rate
• Here’s what Westpac says the RBA will do with interest rates next week
• Buy, hold, sell: Life360, Liontown, and Mineral Resources shares

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.

It’s no secret that investors are increasingly incorporating environmental, social, and governance (ESG) considerations into their decisions. 

Many Aussie investors now target financial success alongside positively impacting the world through their investment choices.

This can look different for many investors. 

For some, this can focus on targeting companies aiming for certain environmental targets. 

It can also mean eliminating companies engaged in certain practices like weapons or tobacco manufacturing, gambling, etc. 

This is called negative screening.

These broader investment styles are also known as socially responsible, sustainable, green, or impact investing. 

Essentially, it will look a little different for each investor as they balance financial and ESG goals. 

If you are looking to add an ESG-themed fund to your portfolio, here are three of the most popular for investors in 2026. 

Betashares Australian Sustainability Leaders ETF (ASX: FAIR)

According to Betashares, this fund aims to track the performance of an index (before fees and expenses) that includes Australian companies that have passed screens to exclude companies with direct or significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations.

The Fund’s methodology also preferences companies classified as ‘Sustainability Leaders’ based on their involvement in business activities aligned to the United Nations Sustainable Development Goals.

The fund does not invest in any of the big four banks, or large Australian mining companies.

It has a management fee per annum (p.a.) of 0.49%. 

iShares Core MSCI World All Cap ETF (ASX: IWLD)

This ASX ETF provides investors with an opportunity to invest in non-Australian companies. 

The Fund aims to provide investors with the performance of the MSCI World Ex Australia Custom ESG Leaders Index. 

The index is designed to measure the performance of global, developed-market large and mid-capitalisation companies with better sustainability credentials relative to their sector peers.

More info about the index can be found here.

However, for example, it negatively screens companies engaged in industries like: 

• Adult entertainment
• Alcohol
• Weapons
• Gambling
• Oil & gas drilling
• Tobacco and more.

At the time of writing, it is made up of more than 600 holdings, and comes with a management fee of 0.09% p.a. 

Betashares Climate Change Innovation ETF (ASX: ERTH)

This ASX ETF is worth listing because rather than using negative screening and eliminating negative companies, it actually targets companies actively engaged in climate solutions. 

That might sound similar on the surface, but they’re actually very different strategies. 

Negative screening only removes “bad” companies – it doesn’t actively pick “good” ones.

Suppose an ESG ETF excludes fossil fuels, tobacco, and weapons.

What’s left could still be a bunch of companies that are neutral or even minimally impactful – like banks, supermarkets, or software firms that aren’t actively solving environmental or social problems.

You might end up with a portfolio of companies that simply aren’t doing harm, but also aren’t contributing anything positive, like renewable energy, clean tech, or social-impact ventures.

However the ERTH ETF provides a portfolio of up to 100 leading global companies that derive at least 50% of their revenues from products and services that help to address climate change and other environmental problems through the reduction or avoidance of CO2 emissions. 

This covers clean energy providers, along with leading companies tackling green transport, waste management, sustainable product development, and improved energy efficiency and storage.

It comes with a management fee p.a. of 0.65%. 

The post 3 of the most popular ethical/ESG ASX ETFs in 2026 appeared first on The Motley Fool Australia.

More reading

• Own MNRS or ARMR ETFs? Here’s why it’s a big day for you
• Own IOZ or ISO ETFs? It’s dividend payday for you!
• Own ASX IOZ or other iShares ETFs? Dividends just announced!

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.

ASX lithium shares have snapped out of their funk. After languishing near multi-year lows, prices have surged in recent months as battery demand rebounds and supply tightens.

Benchmark spodumene prices are breaking levels not seen in years, and Australian lithium stocks are moving fast in response.

ASX lithium shares like Liontown Resources Ltd (ASX: LTR), IGO Ltd (ASX: IGO), and Core Lithium Ltd (ASX: CXO) have all ripped to fresh 52-week highs as the market begins to price in a new demand-driven cycle.

Investors are starting to believe the brutal 2023–24 bear market is finally in the rear-view mirror. But can the lithium rally be sustained?

Liontown Resources

This ASX lithium share is the comeback story. Written off during the downturn, the company has re-emerged as a poster child for the lithium rebound thanks to its Kathleen Valley project.

Shares have surged 173% over the past 12 months as higher spodumene prices combine with shipments under long-term offtake agreements. A strong cash position and strategic deals with battery makers add credibility to the rally.

That said, Liontown’s earnings remain highly sensitive to lithium prices, and cost inflation could bite if the cycle turns. If prices hold firm, the ASX stock could keep grinding higher. But this remains a momentum-fuelled story.

Brokers’ sentiment is divided. However, Bell Potter remains bullish on this lithium miner, assigning a buy rating and a $2.42 price target. That points to potential 34% upside over the next 12 months.

The broker says the company is well positioned to capitalise on rising lithium prices, pointing to the strength and quality of its Kathleen Valley project.

IGO

This ASX lithium stock offers a steadier way to play the theme. Unlike pure lithium miners, IGO leans on diversified exposure to nickel and copper, helping cushion commodity swings.

Recent results showed a sharp lift in EBITDA, highlighting the strength of its broader operations even as lithium processing challenges linger. Its stake in Greenbushes and downstream refining provides long-term leverage, but also operational complexity.

Investors chasing stability over explosive upside may prefer IGO, especially if base metals remain supportive.

Analysts are cautious and most rate the ASX lithium share neutral with a 12-month average price target of $8.32, identical to the share price at the time of writing.

Core Lithium

Core Lithium is the high-risk, high-reward option. After shelving production at the depths of the downturn, the ASX lithium share is now gearing up for a restart of the Finniss project. It’s backed by higher reserves and lower-cost plans.

The market has jumped on the turnaround narrative, sending shares sharply higher – 164% in the past 12 months. Execution risk remains significant, and funding is always a hurdle. If lithium prices stay elevated and the restart delivers, the upside could be dramatic.

In January, Canaccord Genuity reiterated its buy rating on the ASX lithium share and lifted its price target from 27 cents to 40 cents.

This suggests a potential upside of more than 65% over 12 months.

The post Are ASX lithium shares running out of steam? appeared first on The Motley Fool Australia.

More reading

• The growing case for critical minerals – Expert
• Liontown shares: After a year of outperformance, is it still a buy?
• Top brokers name 3 ASX shares to buy next week
• Buy, hold, sell: Life360, Liontown, and Mineral Resources shares
• Brokers name 3 ASX shares to buy today

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 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.

Global demand for critical minerals has increased in recent years due to electric vehicles (EVs), renewable energy, defence technology etc.

It’s hard to argue the relevance of this sector for investors. 

However, the challenge has been to time the market based on the changing landscape of supply, demand, and global geopolitics.

A new report from Betashares has outlined the importance of critical minerals in the age of AI and tariffs.

What are critical minerals?

According to the Australian Government, a critical mineral is a metallic or non-metallic element that has two characteristics:

• It is essential for the functioning of our modern technologies, economies, or national security
• There is a risk that its supply chains could be disrupted

Critical minerals are used in the manufacturing of advanced technologies like:

• Mobile phones
• Computers
• Fibre-optic cables
• Semi-conductors
• Banknotes
• Defence, aerospace, and medical applications

Many critical minerals are also used in low-emission technologies such as electric vehicles, wind turbines, solar panels, and rechargeable batteries. 

Common critical minerals include: 

• Lithium: batteries for electric vehicles and energy storage
• Rare earths elements (e.g. neodymium, praseodymium, dysprosium): EV motors, wind turbines, defence systems
• Nickel: high-energy-density batteries and stainless steel
• Cobalt: battery cathodes and aerospace alloys
• Graphite: battery anodes and industrial applications
• Copper: electrification, renewable energy, and grid infrastructure

Where do investors fit into this equation?

Investors may choose to target critical minerals because demand is structurally rising from emerging themes like electric vehicles, renewable energy, defence, and advanced manufacturing.

Demand gives these commodities strategic value, policy support, and the potential for outsized returns when supply tightens.

According to Betashares, the convergence of AI expansion and the green transition may produce a historic ‘supercycle’ in critical minerals, reshaping industries worldwide and testing supply chains already stressed by renewable energy and electric vehicle (EV) growth.

Vinnay Cchoda, Manager – Responsible Investments at Betashares, Ex Ellerston Capital and Venture Insights said: 

For investors, the structural demand story remains compelling. But the means of capturing that value has shifted. The path to monetising this megatrend now runs through policy, geopolitics, supply chain diversification and industrial strategy as much as through geology.

What’s perhaps even more prudent for investors is grasping the current Australian repositioning from a raw-materials exporter to a strategic partner.

By using public finance, policy support, and alliances – particularly with the US – Australia is positioning to build processing, refining, and downstream manufacturing capability in critical minerals. 

How to gain exposure

Like many thematic classes, investors have plenty of individual companies that will provide exposure to critical minerals. 

Some of the most recognisable ASX-listed companies include: 

• PLS Ltd (ASX: PLS) – lithium and battery minerals producer
• IGO Ltd (ASX: IGO) – diversified battery metals miner with lithium and nickel exposure
• Liontown Resources Ltd (ASX: LTR) — lithium exploration and development company

Another option is to invest in a basket of these companies using an ASX ETF.

Two options to consider for ASX ETFs featuring critical minerals companies are: 

• Betashares Energy Transition Metals ETF (ASX: XMET) – provides exposure to global producers of copper, lithium, nickel, cobalt, graphite, manganese, silver, and rare earths elements.
• Global X Green Metal Miners ETF (ASX: GMTL) – provides exposure to global companies that produce critical metals for clean energy infrastructure and technologies, including lithium, copper, nickel, and cobalt.

The post The growing case for critical minerals – Expert appeared first on The Motley Fool Australia.

More reading

• Are ASX lithium shares running out of steam?
• Liontown shares: After a year of outperformance, is it still a buy?
• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy next week
• Buy, hold, sell: Life360, Liontown, and Mineral Resources shares

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.

The Xero Ltd (ASX: XRO) share price is in focus today as the company showcases its progress in global AI and US payments, with over two million subscribers now using its AI features and key advances following the Melio integration.

What did Xero report?

• Over two million Xero subscribers now benefitting from AI features, with 300,000 using new GenAI tools.
• Melio’s US payments functionality successfully integrated, strengthening Xero’s presence stateside.
• Xero reiterates FY26 guidance: operating expenses expected at around 70.5% of revenue (including Melio).
• Melio expected to reach Adjusted-EBITDA breakeven in H2 FY28 (on a run-rate basis).
• More than four million customers now using Xero’s platform globally.

What else do investors need to know?

Xero is focusing squarely on driving the adoption and value of AI features in its products, aiming to make small business accounting smarter and easier. Its AI strategy rests on four main goals: helping customers get assistance quickly, saving them time, supporting smarter business decisions, and unlocking new growth.

In the US, the combination with Melio is already delivering benefits, with unified teams and improved payments integration enabling Xero to target higher revenue per customer and stronger unit economics. Xero has also started reporting more detailed US business metrics, covering payment volumes and customer profitability.

What did Xero management say?

CEO Sukhinder Singh Cassidy commented:

We are deeply focused on capturing the global AI and US accounting plus payments TAM. Xero is well positioned to shepherd SMBs into the AI era and take advantage of this technology. We are already a trusted system of record and are now orchestrating multiple agents to evolve into the key system of action and decision making for our customers. Combined with our deep domain knowledge, unique data platform and go-to-market strengths, we have a clear AI strategy that supports our long-term growth opportunity.

What’s next for Xero?

Looking ahead, Xero plans to accelerate its AI rollout, deepen product adoption, and begin monetising new AI-powered features during FY27. The company will also move to an Adjusted-EBITDA framework for forward guidance, aiming to give investors a clearer picture of ongoing profitability.

Xero’s FY28 goal is ambitious—more than doubling FY25 group revenue and delivering Rule of 40 outcomes at group level, supported by US growth and efficiencies from the Melio acquisition.

Xero share price snapshot

Over the past 12 months, Xero shares have declined 49%,  trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Xero highlights AI progress and Melio momentum in US market update appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Xero shares hit a multi-year low. Is now the time to buy?
• Why analysts say Hub24, New Hope, and Xero shares are buys
• Corporate Travel Management announces major leadership changes

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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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.

If you’re trying to beat the S&P/ASX 200 Index (ASX: XJO), it helps to be honest about the playing field.

Australia’s largest companies like Commonwealth Bank of Australia (ASX: CBA) and BHP (ASX: BHP) are heavily researched, widely owned, and constantly scrutinised by analysts and institutions. By the time an opportunity becomes obvious in the top 200, it is often already reflected in the share price.

That doesn’t mean outperformance is impossible. It just means investors looking for stronger returns may need to broaden their search. For many, that search leads to ASX small-caps.

Why small caps can offer more opportunity

The ASX small-cap universe is far larger and more diverse than the headline indices suggest. It includes emerging leaders, niche operators, turnaround stories, and businesses still flying under the radar.

This part of the market is also less efficiently priced. Many small companies are followed by few analysts, and institutional ownership is often limited. As a result, share prices can lag behind fundamentals — creating potential opportunities for patient investors.

Small-caps also tend to respond more dramatically to changes in earnings expectations, sentiment, or economic conditions. While that volatility can be unsettling, it is also what creates the possibility of outsized gains.

Rotation can leave quality businesses behind

Markets move in cycles. Capital rotates between sectors, styles, and company sizes as conditions evolve.

When investors crowd into popular themes, other areas of the market can be left behind. ASX small-caps often feel this effect more acutely, with entire segments sold down regardless of individual company performance.

At times, this can result in high-quality businesses trading at prices that reflect pessimism rather than reality. For investors willing to look past short-term noise, rotation can open the door to opportunities that are harder to find in larger, more stable stocks.

Depressed valuations can support future returns

After several years of lagging large caps, parts of the small-cap market have been trading on noticeably lower valuations.

That does not guarantee a rebound. Markets can stay out of favour longer than expected. Still, when expectations are already low, companies often need less “good news” to surprise on the upside.

If earnings stabilise or improve, valuations can recover alongside profits. Over time, that combination has the potential to support stronger returns than those available in more fully priced parts of the market.

Small companies can change faster

Large companies can grow, but their size often limits how quickly they can transform.

Small-caps, by contrast, can materially change their trajectory in a short period. That might involve reaching profitability, expanding into new markets, securing a major contract, or strengthening the balance sheet.

These inflection points tend to have a greater impact on smaller businesses, which is why returns across the small cap universe are far more dispersed. Some companies struggle. Others go on to deliver substantial gains as their prospects improve.

M&A activity can act as a tailwind

Another factor supporting interest in ASX small caps is mergers and acquisitions.

When organic growth is hard to find, larger companies often look to acquisitions to expand earnings. Smaller, well-run businesses can become attractive targets — particularly when valuations are reasonable and growth elsewhere is scarce. Just look at some of 2025’s small cap takeover winners like RPM Global (ASX: RUL).

Foolish takeaway

ASX small-caps are not without risk.

They can be more volatile, less liquid, and more sensitive to economic shocks than large caps. That is the price investors pay for the potential upside.

For many, the question isn’t whether small-caps are better than large-caps. It’s whether small-caps can play a role in a diversified portfolio — particularly for investors seeking opportunities beyond the most crowded parts of the market.

For investors willing to think long term and accept volatility, ASX small-caps could be where the next wave of returns comes from.

The post ASX small-caps could be where the next wave of returns comes from appeared first on The Motley Fool Australia.

More reading

• What happened with the big four ASX 200 bank stocks like ANZ and CBA shares in January?
• How Rio Tinto, Fortescue and BHP shares stacked up in January
• 3 ASX shares I’ll be watching like a hawke this earnings season
• Buy, hold, sell: BHP, CSL, and Endeavour shares
• Buy, hold, sell: BHP, DroneShield, and Santos shares

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

4DMedical Ltd (ASX: 4DX) shares have been among the best performers on the Australian share market over the past 12 months.

Since this time last year, this ASX tech stock has risen just over 500%.

To put that into context, a $2,500 investment a year ago would now be worth $15,000.

Is it too late to invest? Bell Potter doesn’t believe it is and is recommending the health imaging platform provider to clients with a high tolerance for risk.

What is the broker saying about this ASX tech stock?

Following a capital raising last month, Bell Potter believes 4DMedical is “recapitalised and set to conquer.” Commenting on the cash injection, the broker said:

The removal of any perceived over-hang on the stock related to its funding requirement has been a material driver of renewed investor interest in 4DX. The $150m cap raise in mid January 2026 has helped position the company for a sustained period of business development and revenue growth over the next two to five years.

4DX has never been better positioned to make major inroads into the US market by virtue of its re-capitalised balance sheet, 5 years of business development experience, the introduction of its ground-breaking CT:VQ exam along with an extensive list of new business opportunities arising from the recent RSNA conference – all with interest in acquiring CT:VQ. There are now 430 sites globally with access to the 4DX technology producing in excess of 300K scans annually.

Is it too late to invest?

Bell Potter believes there’s still potential for further big returns in 2026.

According to the note, the broker has reaffirmed its speculative buy rating with an improved price target of $4.50 (from $2.50).

Based on its current share price of $3.21, this implies potential upside of 40% for investors over the next 12 months.

Commenting on its bullish view of this ASX tech stock, the broker concludes:

4DX is now transitioning from an emerging technology provider to a full scale commercial enterprise. We expect this will manifest in revenue growth over the next two to five years as clinicians harness the full benefit of the product portfolio, particularly in areas which include surgery planning, monitoring of patient response to therapy and a host of other pulmonary conditions for which conventional imaging is sub-optimal. Our valuation is raised to $4.50 and we maintain our Buy (Speculative) rating. Catalysts include further client announcements for CT:VQ.

The post Why this incredible ASX tech stock could be ‘set to conquer’ appeared first on The Motley Fool Australia.

More reading

• Why 4DMedical, DroneShield, New Hope, and Zip shares are pushing higher today
• 4DMedical shares jump again today. Here’s what investors liked
• Why 4DMedical, Appen, Nine Entertainment, and ResMed shares are storming higher today
• Why 4DMedical and these ASX shares are up 200%+ in just a year
• 4DMedical shares crash 20% this week: Should investors cut their losses on the once-booming stock?

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.

ASX small-caps are often viewed as higher risk investments – and rightly so. 

These stocks often come with increased volatility as many of these companies are pre-profit, awaiting private or government funding, or still developing a product. 

These factors can increase the ups and downs of their stock price. 

However it’s also true that some small-cap companies will grow exponentially and become blue-chip stocks down the track. 

So if you are looking for ASX small-caps to add to your watch list this February, here are two with exciting upside thanks to flagship products.

Medical Developments International Ltd (ASX: MVP)

Medical Developments International is a specialist healthcare company with two key operating segments in analgesia and respiratory devices. 

The flagship product, Penthrox (‘Green Whistle’), is a self-administered, rapid acting non-opioid analgesic which has been used primarily in the pre-hospital care and emergency setting. 

It is currently used in Australia, Asia and Europe which is an important region for further growth (UK / Ireland, France, Nordic regions and rest of Europe). 

In respiratory devices the core product is the Space Chamber which optimises administration of inhalers in asthma and COPD.

Last week the company released its quarterly activities report. 

Highlights from the report included: 

• MVP reported positive operating cash flow (OCF) of $1.1m ($1.9m PcP) and $0.3m for 1H26 ($0.8m PcP)
• Cash receipts in 2Q26 were $10.5m, up 5% on the PcP
• Cash increased to $16.9, up $0.8m on 1Q26.

In a new report from Bell Potter, the broker said Penthrox continues to be the key driver for the company, with 1H26 volume growth of 26% in Australian hospitals, and 10% in the European market. 

The broker has a price target of $0.84 on this ASX small-cap. 

This indicates an upside of approximately 78%.

Adveritas Ltd (ASX: AV1) 

Adveritas is another exciting small-cap stock to watch this month. 

The company develops software solutions designed to assist with digital advertising. 

It also owns TrafficGuard, which focuses on fraud prevention and campaign optimisation.

Late last month, it released its quarterly update, which included annualised recurring revenue (ARR) ahead of expectations.

Analysis from Bell Potter pointed out that ARR grew $2.1m in Q2 which was similar to the $1.7m in Q1 and $2.6m in Q4 of FY25. 

This marks three consecutive quarters of approximately $2m growth.

This prompted a speculative buy rating from Bell Potter along with a price target of $0.22. 

From yesterday’s closing price of $0.12 per share, this indicates an upside of approximately 83%. 

The post 2 ASX small-caps with big upside to target in February appeared first on The Motley Fool Australia.

More reading

• This small cap ASX tech share could have 75% upside

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 positions in and has recommended Medical Developments International. 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.

Buying ASX shares when they’re trading at an undervalued price can lead to market-beating performance.

If we’re going to beat the market, we need to own shares in a different way to the market average. That doesn’t necessarily need to be through owning businesses that are trading cheaply, it can be done by buying high-quality companies for the long-term.

I’m going to talk about two ASX shares that I think are trading at very cheap price/earnings (P/E) ratios.

Adairs Ltd (ASX: ADH)

Adairs sells homewares and furniture through three different businesses – Adairs, Mocka and Focus on Furniture.

I wouldn’t say this business has the strongest economic moat on the ASX and it’s quite heavily exposed to changes in consumer sentiment. But, those cyclical changes in customer demand and investor confidence can prove to be buying opportunities.

At the time of writing, the ASX share is down by 37% since 19 September 2025, making it seem much cheaper.

While trading conditions may be tough, the business is now trading at a very low level. Analysts from UBS currently predict that the business could generate earnings per share (EPS) of 20 cents in FY26. That means it’s valued at just 9x FY26’s estimated earnings.

That looks particularly cheap with the fact that the business is projected to steadily increase its net profit every year to the end of FY30. By FY30, UBS forecasts its EPS could rise to 29 cents.

Centuria Industrial REIT (ASX: CIP)

This is a real estate investment trust (REIT) that owns a portfolio of industrial properties around Australia. Its real estate is located in metropolitan locations that are in-demand by tenants and the vacancy rate is very low. This is a strong support for the rental earnings of the business.

Industrial properties are benefiting from strong demand tailwinds including e-commerce, logistics, data centres, refrigerated space and more.

The fund manager of the ASX share, Grant Nichols, said at the end of October:

CIP continues to achieve strong outcomes across its portfolio relating to leasing, capital transactions and value add initiatives. The ability to deliver these results is credited to CIP’s portfolio being concentrated in Australia’s urban infill markets where tenant demand is strongest, vacancy is low and supply is constrained. These urban infill assets provides multiple future opportunities for alternative, higher-use developments such as data centres and residential schemes.

At the end of FY25, it reported net tangible assets (NTA) of $3.92 per unit, so it’s trading at a discount of more than 18%, which I think makes it very cheap.

In FY26, the business is expecting to generate funds from operations (FFO – rental profit) – between 18.2 cents to 18.5 cents per unit, funding a distribution per unit of 16.8 cents. That translates into a forward distribution yield of 5.25%.

The post 2 ASX shares that are absurdly cheap right now appeared first on The Motley Fool Australia.

More reading

• Where I’d invest in ASX shares if the RBA increases the interest rate
• 3 high-yield ASX dividend shares that smash term deposits
• Broker names 3 ASX real estate stocks to buy
• Here’s how you could turn the stock market into a $1,000 monthly passive income machine
• 3 of the best ASX dividend stocks to buy now

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

CSL Ltd (ASX: CSL) shares have been well and truly out of form over the past 12 months.

During this time, the biotechnology giant’s shares have lost over a third of their value.

While most brokers believe this has created a compelling buying opportunity for investors, not everyone agrees.

Let’s see why one leading broker thinks investors should be keeping their powder dry for the time being.

Hold rating

According to a note out of Bell Potter, its analysts have reaffirmed their hold rating and $195.00 price target on CSL’s shares.

Based on its current share price of $177.08, this implies potential upside of 10% for investors over the next 12 months.

It also expects a dividend yield in the region of 1.8%, which boosts the total potential return closer to 12%.

What is the broker saying?

Bell Potter is feeling cautious ahead of the release of the company’s half-year results this month.

It is expecting CSL to deliver a result below consensus estimates, with revenue and net profit expected to fall 2% and 5%, respectively, over the prior corresponding period (pcp). It said:

Key points for the upcoming result include: (1) we expect a 2% decline in revenue and 5% decline in NPATA compared to the pcp; and (2) we are ~2% below consensus at revenue and NPATA. Additionally, for the full-year FY26 result, we remain slightly below the NPATA guidance range of 4-7% (BPe 3.3%).

Overall, we remain cautious as the uncertainties surrounding CSL’s organic growth profile are likely to persist in the near-term. Several headwinds have been flagged as impacting the 1H result to varying degrees, including lower US vaccination rates for Seqirus, along with Part D reforms, UK Ig tender loss and reduced albumin demand in China for Behring.

Aren’t CSL shares cheap?

Bell Potter acknowledges that CSL shares are trading at significantly lower than normal earnings multiples. However, it feels this is justified given its challenging outlook. It concludes:

We continue to apply a 17x PE multiple, now to the average of FY26/27 earnings. There is no change to our $195 PT as a result of these changes, hence we maintain our Hold recommendation. At 17x PE, CSL trades at a significant discount to its historical average and below domestic peers, however we consider this to be justified considering the low organic growth outlook, earnings growth below peers, and blows to credibility following the Seqirus de-merger pivot and recent downgrades to long-term guidance.

The post Are CSL shares as a buy, hold, or sell ahead of its results? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Buy, hold, sell: BHP, CSL, and Endeavour shares
• Top brokers name 3 ASX shares to buy next week
• Why buy and hold investing with ASX shares could make you rich
• How to turn $250 a month into a $500,000 ASX share portfolio

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.