The Wesfarmers Ltd (ASX: WES) share price has been a solid compounder over the last several years and its performance in the past half-decade has been very satisfactory, in my view.

As we can see on the chart above, the business has seen plenty of volatility in the years following COVID-19.

Despite that, the company has registered a capital gain of 44% over the prior five years, at the time of writing.

The owner of Kmart and Bunnings has done well for shareholders and I believe that it has the potential to continue rising.

How many Wesfarmers shares you could buy with $10,000

Five years ago, if an investor decided to put $10,000 into the ASX retail share, they could buy 181 Wesfarmers shares.

But, thanks to the pleasing gain of the business, an investor can now only buy 125 shares, at the time of writing.

Clearly, it would have been better to buy a few years ago then today with $10,000. But, we can also see that the business is cheaper now than it was between August to October 2025.

Is this the right time to invest in the ASX retail share?

The business has certainly seen plenty of economic changes in the last five years, with the end of the COVID-era consumer spending, the jump in inflation and interest rates, a few rate cuts last year and now more inflation and rate rises.

Through all of that, the business has served customers well and given them great value products through Kmart and Bunnings. At the same time, their scale and efficient spending have allowed those businesses to achieve a high return on capital (ROC), which in turn has led Wesfarmers to achieve a return on equity (ROE) of more than 30%.

The company has managed to regularly find a compelling place to put money to earn a good return.

For example, with its Anko product business, it has opened a number of stores in the Philippines, which gives it a useful growth avenue considering how large the population is there. I’m also excited by Wesfarmers expansion into lithium mining with how much the lithium price has risen in the last year.

According to CMC Invest, there have been eight ratings on the Wesfarmers share price in the last three months, with only two of those being a buy, five being a hold and one being a sell.

However, the average price target is $76.81, implying not much of a gain from here in the year ahead.

Therefore, there could be better ideas out there.

The post 5 years ago, $10,000 bought 181 Wesfarmers shares. But how many would it buy now? appeared first on The Motley Fool Australia.

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• How much is needed in superannuation to target a $9,000 monthly passive income?
• Australia’s minimum wage just rose 4.75%. Here is what it means for ASX consumer stocks
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• My 3 best ASX 200 blue-chip shares to buy in June
• Wesfarmers shares: Buy, hold or sell?

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

Investing $500 a month into the share market may not feel like a life-changing amount.

But over long periods, regular investing can become surprisingly powerful.

For example, if an investor put $500 a month into the share market and achieved an average annual return of 10%, they could build a portfolio worth more than $1 million after 30 years.

That return is not guaranteed, but it is largely in line with historical averages, so could be possible.

With that in mind, here are three ASX exchange traded funds (ETFs) that could help investors build serious wealth over the long term.

Betashares Australian Quality ETF (ASX: AQLT)

The first ASX ETF for investors to look at is the Betashares Australian Quality ETF.

This fund gives investors exposure to a portfolio of high-quality Australian companies, selected using measures such as profitability, balance sheet strength, and earnings stability.

That makes it a different way to invest in the local market. Rather than simply leaning into the largest companies on the ASX, the fund applies a quality screen to find businesses with stronger financial characteristics.

Holdings include BHP Group Ltd (ASX: BHP), Telstra Group Ltd (ASX: TLS), and Wesfarmers Ltd (ASX: WES).

This mix gives investors exposure to resources, telecommunications, retail, financials, and other parts of the Australian economy, but with a focus on companies that meet the fund’s quality criteria.

For someone investing $500 a month, that discipline could be useful. It provides local market exposure while avoiding the need to decide which individual ASX blue chip deserves the next dollar. It was recently recommended by the team at Betashares.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

Another ASX ETF that could be worth considering for a $500 investment is the Betashares Global Cash Flow Kings ETF.

This fund is built around free cash flow. In simple terms, it looks for global companies that are good at generating surplus cash from their operations.

That is a powerful trait. Companies producing strong free cash flow can fund expansion, reduce debt, buy back shares, pay dividends, or keep investing when weaker competitors are under pressure.

Its holdings include NVIDIA (NASDAQ: NVDA), ASML Holding (NASDAQ: ASML), and Visa (NYSE: V).

What makes this fund interesting is that it is not just chasing growth for growth’s sake. It is looking for businesses with financial firepower. Over long periods, companies that consistently generate cash can have more options and more resilience.

It was also recently recommended by the team at Betashares.

VanEck MSCI International Quality ETF (ASX: QUAL)

A final ASX ETF for investors to consider buying is the VanEck MSCI International Quality ETF.

This fund gives investors exposure to global companies with quality characteristics, including strong returns on equity, stable earnings, and low financial leverage.

Its holdings include Broadcom (NASDAQ: AVGO), Microsoft (NASDAQ: MSFT), and Eli Lilly and Co (NYSE: LLY).

These are businesses operating in areas such as semiconductors, enterprise software, cloud computing, healthcare, and consumer technology. Many have strong competitive positions and the financial strength to keep investing through different market conditions.

Quality companies can be well placed to compound over time because they tend to have stronger margins, better balance sheets, and more durable earnings.

Used consistently, month after month, this type of ETF could help turn small regular investments into a much larger portfolio over the long run.

The team at VanEck has recommended this fund to clients.

The post 3 ASX ETFs that could turn $500 a month into serious wealth appeared first on The Motley Fool Australia.

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• MOAT vs QUAL: Which quality ASX ETF would I buy today?
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• Could this ASX ETF be the easiest way to invest in global quality?

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 ASML, Broadcom, Eli Lilly, Microsoft, Nvidia, Visa, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended ASML, BHP Group, Microsoft, Nvidia, Visa, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The difficult year continued yesterday for ASX financials stocks Bank of Queensland Ltd (ASX: BOQ) and MA Financial Group Ltd (ASX: MAF). 

Both companies hit fresh 52-week lows after falling roughly 1.5% each. 

Bank of Queensland shares are now down 22% over the past year. Meanwhile MA Financial Group is down more than 14%. 

These falls have far exceeded the minor fall from the S&P/ASX 200 Financials Index (ASX: XFJ) in the same period. 

While both have been impacted by sector headwinds, it appears they have now been oversold, creating an exciting buy low opportunity. 

Here is what brokers are saying about these ASX financials stocks moving forward. 

Can BOQ shake off poor results?

Bank of Queensland shares have suffered mightily since reporting disappointing half-year results last month. 

Investors were disappointed when the bank reported a 4% increase in revenue to $835 million, but a 20% drop in statutory net profit after tax to $136 million.

On the positive side, BOQ’s business mix continued to shift towards commercial lending, which grew by 16% over the half, while housing loan balances contracted.

There’s no doubt there are short term headwinds for ASX bank and financial stocks in the short term. 

Bank of Queensland remains heavily exposed to Australian housing lending. Competition for mortgages is intense, particularly from the major banks, forcing lenders to offer sharper pricing. 

This creates short term mortgage margin pressure, and Band of Queensland lacks the scale and low-cost deposit franchise of the Big Four banks. To attract and retain deposits, it often has to pay more competitive rates, which can squeeze profitability.

However the case for this ASX financials stock lies more in the value opportunity after being heavily sold off in the last year. 

It now sits at a yearly low of $6.11 per share. 

Morgans recently upgraded the stock to an accumulate rating largely on valuation grounds. 

Band of Queensland now sits 21% below the share price target from the broker of $7.39, making it an attractive buy-low option.

MA Financial Group has 50% upside

Meanwhile, it’s a similar story for MA Financial Group, which also appears to be undervalued. 

This ASX financials stock has continued to drop since its quarterly trading update in late April. 

But now sitting at yearly lows, brokers see plenty of rebound potential. 

It has recently attracted a buy rating by Ord Minnett, along with a target price of $9.20. 

This is almost 50% higher than the current share price, as the broker sees multiple growth drivers across its business lines. 

We see an attractive value proposition in MA Financial, with the stock trading on a one-year forward price-to-earnings (P/E) multiple of 14.7x, along with a forecast EPS compound annual growth rate (CAGR) of 23% over the FY25–28 horizon.

The post These 2 undervalued ASX financials stocks could be a once in a lifetime buy 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 recommended Ma Financial Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are not too many ASX-listed exchange-traded funds (ETFs) that offer both high passive income and strong capital growth potential for retirees. I believe WCM Quality Global Growth Fund (ASX: WCMQ) could tick all of the boxes – that’s why I’ve started building a position in the fund myself.

The fund manager WCM Investment Management, is in charge of making the investment picks for the ASX ETF – WCM is based in California, far away from the noise of Wall Street.

The WCMQ ETF has numerous positives, so let’s get into those to see why it’s so appealing for retirees.

Quality diversification

This fund aims to own between 20 to 40 positions from across the global share market.

Its current portfolio is nicely spread throughout the world, with a 56% allocation to the Americas, 23% to Europe, 17% to Asia Pacific and 4% to ‘other’. I like how significantly less of its portfolio is invested in US shares than many other ASX ETFs and managed funds.

The businesses that WCM invests in are not just random names picked from the global share market because they’re a particular size or from a certain industry.

This ASX ETF is looking for businesses that the WCM investment team see as having improving/expanding economic moats. In other words, their competitive advantages are strengthening and their ability to generate profit is getting even better over time. It’s a great sign for future shareholder returns.

On top of that, the ASX ETF’s investment team also want to see that the businesses have a corporate culture that supports improvements in the competitive advantages. I think it’s a winning formula.

Solid dividend yield for retirees

This fund aims to provide investors with an annualised distribution yield of a minimum of 5%. While that’s not the biggest dividend yield around, I think it’s a great middle ground – it provides a solid yield, while not being too high and unsustainable.

As the net asset value (NAV) of the ASX ETF increases, its distribution will increase, so I believe there will be pleasing long-term distribution growth, though it won’t necessarily see an increase every single period.

I should also note that the ASX ETF pays quarterly, so investors are getting a pleasing level of payment frequency.

Great returns drives capital growth

Past performance is not a guarantee of future returns, of course. But, the strategy that this fund follows has returned an average of 16.5% per year over the last 10 years (the ASX ETF itself is not 10 years old yet).

Since the ASX ETF’s inception, it has returned an average of 14.7% per year from August 2018 to April 2026. If it can continue to deliver good double-digit returns, then the fund can deliver both a good yield and the remainder of the return will translate into good capital growth for investors.

With its investment strategy and long-term track record, I’m optimistic it can perform well in most economic environments, making it a useful long-term pick for retirees.

The post Why this ASX ETF is a retiree’s dream appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Wcm Quality Global Growth Fund. 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.

SpaceX filed its S-1 registration document with the SEC on 20 May 2026 and is preparing to kick off its investor roadshow on 8 June.

Trading on the open market is anticipated to start in late June under the ticker SPCX.

The company is targeting a valuation of between US$1.7 trillion and US$2 trillion.

If it prices anywhere near that range, the deal would surpass Saudi Aramco’s 2019 listing as the largest IPO in history by a wide margin.

Goldman Sachs is leading the deal, and retail investors are earmarked for 30% of the float, three times the standard mega-cap norm.

For Australian investors, unfortunately, SpaceX will not be available on the ASX.

The question for ASX investors is how to participate in the excitement the SpaceX IPO is generating from within the Australian market.

Two options stand out.

The SpaceX S-1: what the numbers actually show

Before diving into the ASX plays, it is worth understanding what SpaceX has disclosed about its own finances.

SpaceX generated $18.7 billion in total revenue for full-year 2025, up 33% year-on-year, with Starlink contributing $11.4 billion, or 61% of total revenue.

On an adjusted EBITDA basis, the company reported $6.6 billion in profit for 2025, however SpaceX posted a GAAP net loss of $4.94 billion for full-year 2025. This was driven by stock-based compensation, depreciation on the Starlink constellation, and AI infrastructure capex.

In Q1 2026, that trend accelerated with a net loss of $4.28 billion in a single quarter alone. That is an important caveat for investors who will be tempted to buy SPCX on day one.

SpaceX is a remarkable and transformative business but is not yet a conventionally profitable one.

That makes the two ASX alternatives potentially more attractive on a risk-adjusted basis.

Betashares Space Industry ETF (ASX: RCKT)

The Betashares Space Industry ETF is the most accessible way for Australian investors to participate in the SpaceX IPO excitement without buying SpaceX directly.

RCKT units floated at $14 on 12 May 2026 and have gained approximately 12% since launch. The underlying Solactive Space Industry Index has returned 249% over the twelve months to 31 May 2026.

RCKT tracks the Solactive Space Industry Index, which holds 28 companies across the global space economy, with its two largest positions being Rocket Lab USA and AST SpaceMobile at 12.6% each.

Rocket Lab has risen significantly over twelve months and AST SpaceMobile has surged on confirmation of its first commercial satellite communications service with major US carriers.

Importantly for ASX investors, SpaceX would need to meet index inclusion criteria after listing before RCKT could hold it, a process that could take months.

However, as the roadshow generates headlines this week and next, RCKT is likely to keep attracting investor attention.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The second ASX option is less obvious but equally interesting.

Electro Optic Systems Holdings is primarily known as a defence stock. The stock having risen approximately 550% over the past twelve months on the back of a record contract pipeline in counter-drone and directed energy systems.

What fewer investors appreciate is that EOS also operates a dedicated Space Systems division. This division provides laser tracking and communications technology for satellite operators around the world.

At its AGM, EOS chair Garry Hounsell confirmed the company’s turnaround phase is now complete and that 60% to 80% of its $726 million order book is expected to convert to revenue in 2026 and 2027.

SpaceX’s Starlink constellation now has more than 10,300 satellites in orbit. Moreover, the company has filed applications to deploy up to 42,000 in total.

Every satellite launched creates demand for the precision tracking and communications infrastructure that EOS provides through its Space Systems division.

As the SpaceX IPO draws global attention to the space economy, EOS offers Australian investors a way to participate that is backed by contracted revenue rather than pre-IPO speculation.

The risks

Both RCKT and EOS carry meaningful risk.

RCKT’s top holdings are pre-profit companies whose valuations reflect enormous future potential.

If the SpaceX IPO disappoints or the broader technology sector rotates lower, RCKT units could give back a significant portion of recent gains quickly.

EOS carries its own risks: contracts are lumpy, defence spending can be reprioritised, and the space division remains a small part of overall revenue.

Neither is suitable for investors who cannot tolerate volatility.

Foolish takeaway

The SpaceX IPO is coming soon, and the excitement is already moving markets.

Australian investors cannot buy SPCX directly on the ASX, but RCKT and EOS each offer a distinct way to participate in the space economy boom that SpaceX is generating.

For investors who believe the commercial space economy has years of growth ahead, both deserve a place on the watchlist.

The post The SpaceX IPO is coming. Here’s how ASX investors can benefit from the excitement appeared first on The Motley Fool Australia.

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• These ASX stocks have hit the ground running in June – can they keep rising?
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• Why are Electro Optic Systems shares up more than 10% today?

Motley Fool contributor Mark Verhoeven 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 Electro Optic Systems. 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.

An uncertain economy can make dividend investing more difficult.

When households are under pressure, business confidence is mixed, and interest rates remain a key focus, income investors need to be selective, especially for a retirement portfolio.

With that in mind, here are three strong ASX dividend shares that could be top options for retirees right now.

APA Group (ASX: APA)

The first ASX dividend share to look at is APA Group.

APA sits behind a large part of Australia’s energy system. Its pipelines, storage assets, processing facilities, and power infrastructure help connect energy supply with demand across the country.

That gives the business a useful role in a period of economic uncertainty. Energy security remains important whether the economy is strong or weak. Households, businesses, manufacturers, and utilities all need reliable energy infrastructure to keep operating.

APA is also positioned in a part of the market where long-life assets matter. Pipelines and related infrastructure are not easy to replicate, and that can support more predictable cash flows than many cyclical sectors.

The market is forecasting a 5.7% dividend yield from APA shares in FY 2027.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that could be worth a look is HomeCo Daily Needs REIT.

This property trust is focused on retail and services assets that sit close to everyday spending. Its centres are built around categories such as supermarkets, pharmacies, medical services, childcare, large-format retail, and other regular-use tenants.

That matters when the economy is uncertain. Consumers may delay big-ticket purchases or cut back on discretionary spending, but many daily needs categories remain part of normal household life.

HomeCo Daily Needs REIT therefore offers a different type of property exposure from trusts that depend heavily on office demand or fashion-focused shopping centres.

Overall, the trust’s tenant mix and convenience-based assets could make its rental income more resilient than many parts of the property market.

HomeCo Daily Needs REIT is expected to provide income investors with a 7% dividend yield in FY 2027.

Telstra Group Ltd (ASX: TLS)

A third ASX dividend share to consider is Telstra.

Telstra’s strength is its position in essential connectivity. Its mobile network, fixed-line services, and enterprise products help support how Australians communicate, work, bank, shop, and access digital services.

That makes the telco giant less exposed to some of the pressures facing more discretionary sectors. Consumers may reduce spending elsewhere, but phone and data services have become hard to cut from household and business budgets.

Telstra has also become a simpler business in recent years, with management focused on mobile leadership, cost control, and improving returns from its core operations.

Competition remains a risk, but in an uncertain economy, a dominant telecommunications business with defensive earnings can still be highly valuable.

The market is expecting Telstra to pay a 21.5 cents per share fully franked dividend in FY 2027. This represents a forward dividend yield of approximately 4.1%.

The post 3 strong ASX dividend shares for retirees to buy appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group and Telstra Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX share market is a great place to find investments that can pay significant dividend yields to investors. It’s my preferred place for unlocking passive income.

Aside from the huge yield, it’s also possible to find investments that can deliver growing payouts. They are not just a term deposit with a larger yield. Hopefully, the ASX shares can deliver capital growth too.

Below are two of my favourite picks for a dividend yield that’s above 8%.

Hearts and Minds Investments Ltd (ASX: HM1)

This business is a listed investment company (LIC) that operates very differently from most other LICs.

Its portfolio is partly decided by a core group of permanent fund managers and the rest of the portfolio is made up of ‘best pick’ choices from investment professionals who pitch their idea at an annual investment conference.

All of the investment decisions are given for free by these investment professionals so that Hearts and Minds can donate 1.5% of its net assets for medical research.

The investment performance of the LIC’s portfolio is being used to pay a stable and growing payout. It intends to increase its dividend by 0.5 cents per share every six months for the foreseeable future.

That suggests the next 12 months of dividends could come to a grossed-up dividend yield of 10%, including franking credits, at the time of writing.

I also like that the business can provide investors with a pleasing level of diversification because of the types of shares it invests in from across the world.

Future Generation Global Ltd (ASX: FGG)

Future Generation Global is another LIC with a noble cause. It donates 1% of its net assets each year to youth mental health charities.

Its investments are the funds of various fund managers who work for free to enable the philanthropy. This ASX share gives investors significant diversification because it’s invested in thousands of underlying businesses – not many investments on the ASX can do that.

Future Generation Global has a number of positives, not just the donations but also the large dividend payments.

The ASX share has steadily grown its regular annual dividend per share each year since 2019. The annual 2025 dividend comes to 11 cents, including the 3 cent per share special dividend, which translates into a grossed-up dividend yield of 9.5%, including franking credits, at the time of writing.

The post 2 ASX shares with dividend yields above 8% appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Future Generation Global and Hearts And Minds Investments. 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.

A new report from Global X has explored the pros and cons of passive and active ASX ETFs. 

The decision between active and passive is an important one for investors. 

What’s the difference?

There are now hundreds of ASX ETFs for investors to choose from. 

ETF providers design these products in many different ways. 

One key distinction is whether the fund simply tracks an index or is actively managed to beat the returns of an index. 

Passive ETFs aim to track a market index. They follow a rules-based approach, holding securities in the same proportions as a benchmark such as a broad equity index like the largest 300 companies in Australia or a bond index.

An example would the Global X Australia 300 ETF (ASX: A300). 

It seeks to provide investors with a return that tracks the performance of the FTSE Australia 300 Index.

Meanwhile, active ETFs aim to beat the market and do not track an index. 

Portfolio managers make investment decisions, such as selecting securities, adjusting exposures, and responding to market conditions, in an effort to generate excess returns above the index.

Understanding fees 

According to Global X, fees are often the most visible but misunderstood difference between the two approaches.

Passive ETFs are typically much cheaper because they don’t require research teams or frequent trading. 

Average expense ratios sit around 0.36% per year for passive ETFs (i.e. $36 per year for a $10,000 investment) versus roughly 0.78% for active ETFs (i.e. $78 per year for a $10,000 investment).

The $42 per year gap in fees may seem small, but over time it compounds. Higher fees reduce net returns year after year, which is why cost is often described as one of the few variables investors can control.

Why passive has gained market dominance 

The report from Global X highlighted that passive investing has grown rapidly over the past two decades for the following reasons:

• Consistent returns – Passive ETFs are designed to deliver the return of the market. They also avoid the risk of underperformance tied to poor manager decisions and avoids key person risk if a particular fund manager decides to leave.
• Lower costs – With minimal trading and no need for stock-picking teams, passive ETFs pass cost savings directly to investors. Lower trading costs, reduced tax impacts, and lower overall fees all help ensure more of the returns remain in investors’ pockets.
• Transparency and simplicity – Investors can easily understand what they own, as passive ETF holdings are typically disclosed daily and tied directly to an index. Active ETFs typically don’t disclose their full holdings and sometimes only periodically reveal them with a three-month lag.
• Long-term evidence – After fees, many active managers struggle to consistently outperform benchmarks over long periods.

These factors have led to a market dominance in terms of funds under management for passive ASX ETFs. 

A blended approach 

According to Global X, there is a case to be made for a combination of both ASX ETFs. 

Active ETFs may justify their higher fees when investors seek access to niche opportunities, enhanced risk management, or exposure to less efficient markets. In these cases, skilled managers can potentially add value. 

They can also serve as a tactical complement to a broader passive investment portfolio.

Ultimately, the most effective portfolios are not built on ideology but on thoughtful allocation, where cost, conviction, and context all play a role.

The post Are passive or active ASX ETFs a better investment choice? 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.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) fought back from a poor start to end the day only a fraction lower. The benchmark index dropped slightly to 8,724.4 points.

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

ASX 200 to rise

The Australian share market looks set for a better day on Wednesday following a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 37 points or 0.4% higher. In the United States, the Dow Jones rose 0.45%, but the S&P 500 rose 0.15% and the Nasdaq edged slightly higher.

Oil prices rise

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.5% to US$93.54 a barrel and the Brent crude oil price is up 0.9% to US$95.87 a barrel. This has been driven by concerns over rising tensions between the US and Iran.

Buy 4D Medical shares

Bell Potter remains bullish on 4DMedical Ltd (ASX: 4DX) shares. This morning, the broker has retained its speculative buy rating on the medical technology company’s shares with an improved price target of $6.00 (from $4.85). It said: “The clinical data from the CLEAR study will provide the necessary evidence to further support broad adoption for diagnosis of PE [Pulmonary Embolism]. Outpatient reimbursement will continue under the existing category III CPTA codes paid at US$650/scan. TAM for this market is estimated at $2.5bn annually.”

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a decent session on Wednesday after the gold price rose overnight. According to CNBC, the gold futures price is up 0.3% to US$4,519.2 an ounce. Traders appear to believe the precious metal has been oversold.

Hold Graincorp shares

Bell Potter thinks Graincorp Ltd (ASX: GNC) shares are fully valued. This morning, the broker has retained its hold rating on the grain exporter’s shares with a reduced price target of $5.20 (from $5.90). It said: “In the June report we noted a seven year low in east coast winter crop acreage sown and a seven year low in southeastern (VIC/NSW/SA) canola production. Key months are now the August-September window, which are crucial for yield development in a potentially dryer backdrop.”

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

It’s been a fast start to the month of June for several ASX stocks.

Stocks hitting 52-week highs after big gains on Tuesday included: 

• Alcoa Corporation (ASX: AAI)
• Electro Optic Systems Holdings Ltd (ASX: EOS)
• Develop Global Ltd (ASX: DVP)
• SRG Global Ltd (ASX: SRG). 

Many holders of these companies will likely be considering profit taking after considerable gains, while those on the outside looking in might be curious if there is further value. 

Here is what experts are saying. 

Alcoa keeps steaming ahead

Alcoa is a global industry leader in bauxite, alumina and aluminium products.

It rose almost 2% yesterday to hit new yearly highs of over $110 per share. 

It has been spurred on this year by healthy earnings results and a solid dividend.

In the last 12 months its share price is now up over 168%. 

Based on analyst forecasts, it appears there are mixed views on how much further upside is in store. 

9 analysts out of 17 still rate the stock as a strong buy, however the average 12 month forecast sits at $107.88, right around current levels. 

Electro Optic Systems still generating buzz

Electro Optic Systems is an Australian company that develops and produces advanced electro-optic technologies. The company’s products are used in space information and intelligence services, optical, microwave and on-the-move satellite products, optical sensor units, and remote weapons systems for land, sea, and air.

It has benefited from global defence spending over the last couple of years, and now sits more than 500% above levels from a year ago. 

When stocks explode this much in a short period, brokers and analyst ratings can lag, as markets reassess true value. 

That seems to be the case here, as Electro Optic Systems still has plenty of tailwinds working in its favour.

At the same time, broker targets indicate it is fully valued. 

However the team at The Motley Fool has consistently covered key contract wins and exciting updates that indicate it could continue rising. 

Develop Global hits new highs 

Develop Global shares rose an impressive 3% yesterday to hit fresh 52-week highs of $6.47 per share. 

The mineral exploration and development company has now seen its share price rise 65% over the last year. 

Bell Potter recently placed a price target of $7.10 on this ASX mining stock, indicating it still has modest upside potential. 

The broker is optimistic after Develop Global won a new contract at the Finniss Lithium project with Core Lithium.

SRG Global soars 16% in single session

Yesterday, SRG Global shares rocketed 16% in a single day following an earnings guidance upgrade. 

According to an ASX release, the company has secured $1.85 billion of contracts with blue-chip clients across a diverse range of sectors.

The impressive rise now takes its 12 month gain to nearly 140%. 

It closed trading yesterday at $3.66 per share. 

Unfortunately for prospective investors, it now appears to be fully valued. 

Analysts forecasts via TradingView have an average one year price target of $3.35 on this ASX stock. 

The post These ASX stocks have hit the ground running in June – can they keep rising? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 3 top ASX shares at 52-week highs I’d still buy
• Why DroneShield, Pro Medicus, SRG Global, and Woodside shares are charging higher today
• Guess which ASX 200 share is jumping 17% on earnings guidance upgrade
• Why are Electro Optic Systems shares up more than 10% today?

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 Electro Optic Systems. The Motley Fool Australia has recommended Srg Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.