There are certain ASX-listed exchange-traded funds (ETFs) that I’m very optimistic about. I don’t know what’s going to happen with share markets, but certain characteristics could help deliver strong returns for investors.

The global share market is home to thousands of businesses, but not all of them will be great ones to own for the long term.

Wouldn’t it be good to just own a portfolio of the best ones? That’s what the two ASX ETFs I’m going to talk about have constructed – portfolios full of purely high-quality businesses that have a good chance to deliver pleasing returns.

VanEck MSCI International Quality ETF (ASX: QUAL)

Both of the ASX ETFs I’m going to talk about offer fairly similar investment strategies. I have been invested in the QUAL ETF for some time, but I’d happily own units in the other fund (or both).

The QUAL ETF aims to have 300 companies in its portfolio, which are diversified across a range of geographies, sectors, and economies. I like this for the diversification it provides for investors.

VanEck, the provider of this fund, says that investments focusing on companies with quality characteristics have historically delivered outperformance over the long term compared to the global share market benchmark.

The QUAL ETF looks for three fundamentals to decide if a business is high-quality.

First, there’s the requirement that they have a high return on equity (ROE). That means they earn a high level of profit for how much money is retained within the business. That demonstrates a high level of profitability and suggests how much the business could make on additional profits retained within the business.

Second, the businesses in the ASX ETF must have stable earnings. In my mind, if earnings aren’t going backwards, then it means profit is probably rising, which is a good tailwind for share price growth.

Third, the QUAL ETF’s holdings must have low financial leverage. That means the balance sheets are healthy and the ROE hasn’t been boosted artificially by utilising a lot of debt.

Unsurprisingly, this has led to its top holdings being names like Meta Platforms, Nvidia, Apple, Microsoft, Eli Lilly, Alphabet, Visa, and ASML.

The investment strategy is clearly working well, with the QUAL ETF delivering a total return per year of 14.8% over the last decade. Time will tell if it can produce further strong returns in the coming years.

Betashares Global Quality Leaders ETF (ASX: QLTY)

There are some differences between the QLTY ETF and the QUAL ETF, which could make the one I’m about to outline seem more appealing in its own way.

The QLTY ETF has only 150 companies in its portfolio, but their weightings are more evenly spread, which, in some ways, makes it more diversified than the QUAL ETF.

This portfolio is also spread across a number of countries, including the US, Japan, the Netherlands, Switzerland, France, Hong Kong, Spain, and the UK. Excitingly, the fund has a double-digit allocation to a number of sectors, including IT, industrials, healthcare, financials, and consumer discretionary.

There are four factors that decide what the QLTY ETF invests in – ROE, debt to capital, earnings stability, and cash flow generation ability. The first three elements are essentially the same as the QUAL ETF, so I won’t repeat what they mean. The fourth element – cash flow – means that we want to see earnings translate into cash hitting the bank account.

Since the QLTY ETF’s inception in November 2018, it has returned an average of 14.4% per year. I think its future returns are promising, so we’ll see how it performs in the coming years, but I’m optimistic.

The post 2 excellent ASX ETFs I rate as buys in February appeared first on The Motley Fool Australia.

More reading

• 10 most popular ASX ETFs on the market today
• 3 of the best ASX ETFs for Australian investors to buy now
• 2 incredible ASX shares to buy in February
• 3 VanEck ETFs on the ASX I rate as buys
• 3 ASX ETFs to buy and hold until 2036

Motley Fool contributor Tristan Harrison has positions in VanEck Msci International Quality ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Visa. The Motley Fool Australia has recommended ASML, Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

2025 was the year of multiple RBA interest rate reductions, with three rate cuts. However, some economists think the RBA could raise interest rates in 2026. If that happens, there are a few ASX shares I’d keep my eyes on.

I regularly talk about ASX shares that I’m bullish about, such as Xero Ltd (ASX: XRO) and TechnologyOne Ltd (ASX: TNE). I still think they (and other ASX growth shares) are opportunities.

But there are a few ASX shares that could become more attractive after an RBA rate cut.

RBA rate cut beneficiaries

There are some businesses that could see an earnings increase due to how they generate earnings or with the amount of cash that they have on their balance sheet.

For example, Computershare Ltd (ASX: CPU) holds a significant amount of client cash and generates interest income from that. Any rate rises would be a very helpful boost for earnings. There are other, smaller businesses that also hold significant cash balances (for their size). But, the actual investment must make sense too, not just the fact that it holds cash.

The broker UBS recently commented in a note that ASX bank shares could benefit from a rate rise if it means stronger lending margins (with an increase in the net interest margin (NIM) metric). UBS said:

Upside risk [potential boost] to EPS with cash interest rates forecast to increase 50bps in 2026, possibly contributing to a stronger-than-anticipated NIM performance and revenue growth for major banks, exceeding consensus expectations. Core earnings may also benefit from higher-than-expected loan growth, while banks are actively managing persistent cost pressures, which are ~+6.0% on an underlying basis.

With that note, UBS upgraded National Australia Bank Ltd (ASX: NAB), Macquarie Group Ltd (ASX: MQG), and Bank of Queensland Ltd (ASX: BOQ) to a buy. NAB is the only major ASX bank share that UBS rates as a buy, with the next major bank choice being Westpac Banking Corp (ASX: WBC) with a neutral rating.

Businesses with debt and ASX retail shares

I’m not expecting history to repeat itself exactly, but it wouldn’t be a surprise if certain rate-sensitive businesses suffer a share price decline because it could hurt profitability. I like to take advantage of declines in businesses like this, thanks to the lower valuation and the potential for a bounce back.

For example, real estate investment trusts (REITs) may suffer because of the increase in interest costs (and the headwind for real estate values). I’d be looking at names like Charter Hall Long WALE REIT (ASX: CLW), Centuria Industrial REIT (ASX: CIP), and Rural Funds Group (ASX: RFF).

I’ll also keep an eye on a number of ASX retail shares – if they decline due to consumer worries, they could be particularly good cyclical opportunities to buy for the long term. I’m thinking of names like Temple & Webster Group Ltd (ASX: TPW), Lovisa Holdings Ltd (ASX: LOV), Wesfarmers Ltd (ASX: WES), and Nick Scali Ltd (ASX: NCK).

Volatility can prove to be a positive for investors to take advantage of, so if there is market negativity, then I’ll be ready. But it’s possible there may not be any declines at all.

The post Where I’d invest in ASX shares if the RBA increases the interest rate appeared first on The Motley Fool Australia.

More reading

• In a hot market, the undervalued Australian shares to buy now
• Here’s what Westpac says the RBA will do with interest rates next week
• 2 ASX growth shares I’d buy today for growth and income
• How to turn $250 a month into a $500,000 ASX share portfolio
• 3 ASX 200 shares trading at 52-week lows: Are they a buy?

Motley Fool contributor Tristan Harrison has positions in Rural Funds Group, Technology One, and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Macquarie Group, Technology One, Temple & Webster Group, Wesfarmers, and Xero. The Motley Fool Australia has positions in and has recommended Macquarie Group, Rural Funds Group, and Xero. The Motley Fool Australia has recommended Lovisa, Nick Scali, Technology One, Temple & Webster Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) was on form in January and pushed higher. The benchmark index rose 1.8% over the month.

Not all ASX 200 shares climbed with the market. For example, the shares listed below all fell heavily during the month. Let’s find out why they were the worst performers on the ASX 200 in January:

Zip Co Ltd (ASX: ZIP)

The Zip share price was the worst performer on the index with a decline of 19%. This was despite there being no news out of the buy now pay later (BNPL) provider. Not even a bullish broker note out of Citi was able to stop the rot. Its analysts put a buy rating and $4.30 price target on its shares. The broker notes that app downloads hit record highs in the US during December, which bodes well for its transaction growth in the massive market. There was even positive news for the BNPL industry, with Donald Trump suggesting that he would put caps on credit card interest rates. This could lead to tighter lending from credit card providers, pushing people into BNPL services.

Life360 Inc. (ASX: 360)

The Life360 share price wasn’t far behind with a decline of 18% in January. This appears to have been driven by a broad tech selloff which dragged down the location technology company’s shares despite a very strong quarterly update which smashed expectations. For the same reasons, the shares of cloud accounting platform provider Xero Ltd (ASX: XRO) also dropped 18% during the month.

ARB Corporation Ltd (ASX: ARB)

The ARB share price was sold off and dropped 18% during the month. Investors were hitting the sell button after the 4×4 automotive parts company released a trading update. ARB revealed that unaudited sales revenue for the first half was $358 million, which was down 1% on the prior corresponding period. Things were worse for its earnings because of margin pressures. ARB expects to report underlying profit before tax of approximately $58 million for the half. This represents a 16.3% decline compared with the prior year.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price was out of form and dropped 16.5%. This health imaging technology company’s shares appear to have been caught up in the tech selloff. Not even a bullish broker note out of Macquarie could prevent this decline. Its analysts upgraded Pro Medicus’ shares to an outperform rating with a $291.30 price target.

The post These were the worst-performing ASX 200 shares in January appeared first on The Motley Fool Australia.

More reading

• These 2 ASX shares are set to soar in 2026 and beyond
• Zimplats quarterly earnings: production up, costs down, projects on track
• Deterra Royalties posts higher Q2 revenue as MAC iron ore shines
• These were the best-performing ASX 200 shares in January
• Here are the top 10 ASX 200 shares today

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Life360, Pro Medicus, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation, Life360, Macquarie Group, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360, Macquarie Group, and Xero. The Motley Fool Australia has recommended ARB Corporation and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a few ASX-listed exchange-traded funds (ETFs) that look like particularly good buys right now, in my view.

Changes in share prices (and currency exchange rates) can quickly make an investment look cheaper.

This week, we’ve seen a decline of around 10% in just one day for both ServiceNow and Microsoft. These businesses are still the same companies that they were at the start of the week, yet the market has decided their future prospects are now worth significantly less.

In the last few months, we’ve seen the share prices of a number of tech-related businesses decline. ASX ETFs that are exposed to this sector could be smart buys at the current level after recent falls, so let’s get into those ideas.

Global X Fang+ ETF (ASX: FANG)

This fund is one of the clearest ways to invest in the large US tech stocks. It owns 10 names in the portfolio and aims to ensure they are equal-weighted at around 10% each.

The 10 businesses it owns include Alphabet, Nvidia, Amazon, Meta Platforms, Broadcom, Microsoft, CrowdStrike, Apple, Netflix, and Palantir.

These are some of the world’s strongest businesses with leading positions in one, or more, product/service.

When I think of which businesses are going to directly or indirectly be involved in changes to how we live life, the above names would be some of the most likely players. This portfolio represents areas such as AI, cloud computing, cybersecurity, online video, chips, smartphones, social media, and so on.

At 28 January 2026, the ASX ETF could point to an average return per year of more than 20% over the prior five years. However, it’s also true to say that the FANG ETF unit price has declined by 17% since the end of October 2025. That’s a big decline.

It’s not common for some of the strongest global businesses to drop by more than 10%, so the buy-the-dip opportunity could be too good to miss.

I don’t know which stock(s) will end up winning the AI race, but I think the FANG ETF is a particularly attractive way to invest in this theme.

Betashares Nasdaq 100 ETF (ASX: NDQ)

If investors are looking for broader exposure to the US tech sector than just 10 names, then this could be the right way to do it. Instead of 10 positions, the NDQ ETF has 100 holdings.

These businesses are the 100 largest non-financial companies on the NASDAQ, including the biggest US tech companies I mentioned with the FANG ETF. Other holdings in the portfolio include Walmart, Costco, Intuitive Surgical, Shopify, Applovin, and many more.

I like the diversification that the NDQ ETF provides for investors because of the variety of sectors it’s invested in. In terms of returns, over the past five years, it has returned an average of 18%. This was a very powerful level of return, but came with more diversification.

Since the end of October 2025, the NDQ ETF unit price has dropped more than 7%, making it noticeably better value today. This could be a good time to invest while the underlying businesses continue to post rising earnings.

The post 2 ASX ETFs I’d buy amid the AI sell-off appeared first on The Motley Fool Australia.

More reading

• 10 most popular ASX ETFs on the market today
• How a beginner investor could build a $250,000 ASX share portfolio
• Where to invest $10,000 in ASX ETFs
• Why ASX ETFs are a good place to start for beginner investors
• How to make $24,000 in passive income a year

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 Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Costco Wholesale, CrowdStrike, Intuitive Surgical, Meta Platforms, Microsoft, Netflix, Nvidia, Palantir Technologies, ServiceNow, and Shopify. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, CrowdStrike, Meta Platforms, Microsoft, Netflix, Nvidia, ServiceNow, and Shopify. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It might come as a surprise for many ASX investors to learn that there is an exchange-traded fund (ETF) on the Australian stock market that has more than doubled in value over the past 12 months.

It’s obviously not an ASX index fund. The Vanguard Australian Shares Index ETF (ASX: VAS), has fared decently, of course. But its respectable 10.67% return over the 12 months to 31 December doesn’t quite cut the mustard in this instance.

No, the ASX ETF that has delivered that breathtaking 119% return is none other than the Global X Copper Miners ETF (ASX: WIRE).

Yes, this time last year, WIRE units were asking just $12.46 each. As of Friday’s close, those same units will set an investor back $26.29, up more than 111% in 12 months. Add in the dividend distributions that this ETF has paid out over this period, and we get to a 12-month performance figure of 118.77%.

As its name suggests, the Global X Copper Miners ETF is a fund that holds a basket of global stocks all involved in the extraction and processing of copper ore.

This is a truly global ETF. At present, 36.8% of WIRE’s portfolio is domiciled in Canada. The United States and Australia make up another 10.45% and 10.3% respectively, while Hong Kong, Japan, Poland and Sweden also contribute meaningfully.

Some of this ASX ETF’s top holdings include KGHM, Lundin Mining Corp, Boliden AB, and Sumimoto Metal Mining Co. Our own BHP Group Ltd (ASX: BHP) is also a holding.

Is it too late to buy this ASX ETF?

Copper is one of the most important industrial metals in the global economy, forming the backbone of almost every electronic product you can think of. Demand has been increasing in recent years, thanks to the heavy copper needs of future-facing technologies such as electric vehicles, solar panels and data centres.

Whilst it might be tempting to look at the copper price trajectory and conclude that this ASX ETF is a long-term winner, investors would take note that commodity prices are notoriously volatile, and the share prices of their miners even more so. This ETF has been around since 2022, and hasn’t really experienced a sharp share market correction or crash. As such, its 37.55% average return per annum since inception should be taken with a grain of salt.

Saying all of that, we can’t deny that this ETF has been an unbridled winner. It may be suitable for investors who are convinced that copper’s best days are ahead of us. But I would still class this ASX ETF as a high-risk, high-reward play.

The Global X Copper Miners ETF charges a management fee of 0.65% per annum.

The post Meet the ASX ETF up 119% in a year appeared first on The Motley Fool Australia.

More reading

• ASX copper shares surge as commodity hits record high
• 3 ASX ETFs off to a hot start in 2026
• This ASX ETF has returned 34% annually since inception
• 3 ASX ETFs that returned 31% to 93% in 2025
• Own DTEC or SEMI ETFs? Here’s why it’s a big day for you

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 recommended BHP Group. 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 has delivered an average return in the region of 10% per annum over the long term.

While this is a great return, Bell Potter thinks these ASX shares could rise materially more in 2026. Here’s what it is recommending to clients:

Telix Pharmaceuticals Ltd (ASX: TLX)

Bell Potter remains bullish on radiopharmaceuticals company Telix and believes it could be an ASX share to snap up in 2026. Especially given how it believes the US FDA will approve its Zircaix product this year. It commented:

We are confident regarding the approval in CY 2026 of Zircaix following resubmission of the Biological License Application (BLA). The FDA rejected the original BLA due to CMC (chemistry manufacturing & control) matters at Telix’s manufacturing partner. There were no matters related to safety or efficacy. We expect the market for Zircaix once approved will be in excess of US$500m.

The product has been included in guidelines for disease management in the US and Europe and continues to be available in the US under the expanded access program. Elsewhere, sales of Iluccix/ Gozellix in the PSMA franchise continue to grow and were recently boosted by the refresh on the pass through pricing.

The broker currently has a buy rating and $23.00 price target on its shares. Based on its current share price of $10.55, this implies potential upside greater than 100%.

Pro Medicus Ltd (ASX: PME)

Another ASX share that could soar in 2026 is health imaging technology company Pro Medicus.

The broker believes that the company is well-placed to benefit from a structural shift to the cloud in the radiology industry. Especially given its sustainable competitive advantage over peers. It said:

Pro Medicus is among the highest quality companies on the ASX. CY25 was yet another banner year with 10 major contract announcements, totalling minimum revenues of $445m. We expect EPS growth of 36% in FY26 followed by 30% in FY27. The company continues to announce new contract wins on a regular basis as the drivers of interest in its product offering remain firmly in place. The entire radiology industry is headed to cloud-based (off premises) archiving.

Put simply, the Visage 7 viewer, Workflow and Archive are the fastest and most advanced tools for the retrieval and viewing of large radiology files. The platform is immensely scalable and relatively easily installed, providing it with a sustainable competitive advantage over the likes of peers Intelerad, Sectra, Philips and GE Healthcare. The company is conservatively managed and well owned by large institutional investors while the two founders continue to have a controlling stake.

Bell Potter has a buy rating and $320.00 price target on its shares. Based on its current share price of $184.12, this suggests that upside of almost 75% is possible in 2026.

The post These 2 ASX shares are set to soar in 2026 and beyond appeared first on The Motley Fool Australia.

More reading

• 3 ASX stocks every Aussie investor should consider in 2026
• Is now a good time to buy the big dip in Pro Medicus shares?
• 2 top ASX 200 blue-chip shares worth a spot in your portfolio
• 3 ASX tech shares I would buy with $5,000
• Here’s my buy list if the stock market crashes in 2026

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

The WiseTech Global Ltd (ASX: WTC) share price has dropped around 50% in the last six months. Multiple experts think the business is undervalued and that it could produce great returns.

WiseTech provides software called CargoWise that the global trade and logistics industry relies on to carry out its operations. Its customers include over 17,000 logistics companies across 193 countries, including 47 of the top 50 global third-party logistics providers and 24 of the 25 largest global freight forwarders.

According to a CommSec collation of expert opinions on the ASX tech share, there are 13 buy ratings on the business.

UBS is one of the brokers that rates the company as a buy at the current WiseTech Global share price. Let’s look at why.

Strong outlook for returns

The broker recently pointed out in a note that some ASX tech shares have suffered from market concerns around broader displacement.

UBS is positive around software’s defensive moat against AI, continued strength in pricing power, and the sector’s ability to monetise agentic AI investments, “all of which could drive a meaningful re-rate through the course of the year”, in the expert’s view.

The broker believes valuations in the sector look attractive relative to the average over the last five years, including the WiseTech Global share price. It thinks WiseTech’s double-digit growth profile remains intact, with attractive total addressable market (TAM) potential.

UBS thinks software-as-a-service (SaaS) businesses like WiseTech could be beneficiaries rather than victims of AI, driving average revenue per user (ARPU). The broker’s research suggests that customers are willing to pay for AI.

The analysts suggest that WiseTech is moving a lot of customers onto its new commercial model, where customers will be able to access four new AI capabilities.

There is further upside, according to UBS, if large freight forwarders move earlier than expected to the commercial model and customers are willing to pass on CargoWise software costs to the end customer.

UBS expects WiseTech’s growth to be driven by price rises and product uptake. The broker expects the new commercial model to drive around 5% price rises going forward.

The broker thinks WiseTech’s CargoWise revenue could grow at a compound annual growth rate (CAGR) of around 25% between FY26 and FY29, thanks to the commercial model move, the launch of container transport optimisation (CTO) rollout, and general continued penetration of freight forward customers.

WiseTech Global share price target

A price target indicates where analysts expect the share price to be in 12 months from the time of the investment call.

UBS has a price target of $115 for WiseTech Global shares, implying a potential rise of approximately 90% from current levels.

That implies a great return if the broker is right about the company.

The post Why these brokers are very bullish on the WiseTech share price appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares trading at 52-week lows: Are they a buy?
• Eight stocks to buy in the bruised tech sector according to RBC
• How much could $1,000 in WiseTech shares be worth in 3 years?
• Down 40% to 50%! Why I think these ASX growth shares are strong buys
• This ASX 200 tech stock just hit a 2-year low. Is it worth a closer look?

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

With the S&P/ASX 200 Index (ASX: XJO) trading around 8,863.1 points, just shy of its record high, it’s easy to assume that most opportunities have already passed us by. When markets run hot like this, value can feel scarce and new ideas harder to come by.

But broad index levels often hide what’s really going on underneath the surface. Even in strong markets, individual Australian shares can fall out of favour for company-specific or sector-specific reasons, creating pockets of opportunity for investors willing to look past the headlines.

Right now, I think that’s the case with a handful of Australian shares that have all touched 52-week lows this week, despite operating businesses that still have meaningful long-term potential.

Aristocrat Leisure Ltd (ASX: ALL)

Aristocrat Leisure is a good example of how sentiment can swing faster than fundamentals.

The share price weakness reflects concerns about slowing growth in parts of its business, particularly in digital, alongside a more cautious outlook from the market. But stepping back, Aristocrat still holds a dominant position in regulated gaming markets, especially in North America, where its land-based gaming operations continue to generate strong cash flows.

What I find compelling is that this is not a structurally broken business. Management has acknowledged near-term softness, but the long-term drivers remain intact, including content leadership, recurring revenue from installed machines, and disciplined capital allocation. In a market near record highs, a high-quality global operator like this trading at a 52-week low stands out to me.

CAR Group Ltd (ASX: CAR)

CAR Group is an Australian share where the market appears to be extrapolating short-term concerns too far into the future.

CAR’s platforms dominate online automotive listings across multiple geographies, and its business model is highly scalable with strong margins. The recent share price weakness has been driven by concerns around AI disruption, tech valuations, and cyclical softness in vehicle markets.

However, CAR has navigated these cycles before. Its platforms remain mission-critical for dealers, and pricing power tends to reassert itself as conditions normalise. Importantly, the company continues to invest in data, digital tools, and international expansion, which supports long-term earnings growth.

Seeing a business of this quality hit a 52-week low while the broader market is near its peak is exactly the sort of disconnect I like to pay attention to.

Temple & Webster Group Ltd (ASX: TPW)

Online furniture seller Temple & Webster Group has arguably been hit hardest by sentiment.

The housing slowdown, cost-of-living pressures, and weaker discretionary spending have all weighed on the outlook for furniture retailers. That has pushed Temple & Webster’s shares to a 52-week low, despite the company continuing to grow revenue and gain market share online.

What makes this interesting to me is the longer-term shift toward online furniture retailing, which is still underpenetrated in Australia. Temple & Webster’s asset-light model, strong brand recognition, and growing customer base position it well for an eventual recovery in housing activity and consumer confidence.

This is clearly a higher-risk name than the others and its shares are still not conventionally cheap, but I believe it offers significant upside if conditions improve.

Foolish takeaway

When markets are strong, it often pays to look where others aren’t. Aristocrat Leisure, CAR Group, and Temple & Webster have all been pushed to 52-week lows at a time when the ASX 200 is hovering near record levels.

That doesn’t mean they are risk-free. But it does suggest that a lot of pessimism is already reflected in their share prices. For investors willing to think beyond the next quarter, I believe these undervalued Australian shares are worth a closer look, even in a hot market.

The post In a hot market, the undervalued Australian shares to buy now appeared first on The Motley Fool Australia.

More reading

• Aussie income stocks: A once-in-a-decade chance to get richer?
• 3 ASX 200 shares trading at 52-week lows: Are they a buy?
• Is AI a real threat to CAR Group and REA Group shares?
• 2 stocks that could turn $100,000 into $1 million by 2035
• Why these ASX 200 shares could be dirt cheap

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended CAR Group Ltd 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.

It doesn’t feel like a classic buying opportunity for income investors.

The ASX is hovering near record highs, headlines are generally positive, and on the surface it looks like most of the easy money has already been made. Historically, those conditions haven’t been great for finding value in ASX dividend-paying shares.

But dig a little deeper and a very different story emerges.

Across the market, a number of established Aussie income stocks are trading much closer to their lows than their highs. In many cases, this has less to do with permanent damage and more to do with temporary pressure on earnings and dividends. For patient investors, that combination can be powerful.

What’s happening?

Over the past couple of years, higher interest rates and cost-of-living pressures have had a major impact on the economy.

Some consumer-facing businesses have seen softer demand. In response, dividend expectations have been trimmed, growth has slowed, and share prices have been marked down accordingly.

This has pushed parts of the income universe into an uncomfortable spot.

Short-term pain

Income investing is not just about the next dividend check. It is about earning power over a full cycle.

Businesses like Accent Group Ltd (ASX: AX1) and Premier Investments Ltd (ASX: PMV) are good examples. Both operate in discretionary retail, which is one of the first areas to feel pressure when households tighten their belts. That pressure flows through to earnings and, ultimately, dividends.

But retail cycles are rarely permanent. When consumer confidence improves, these businesses can see earnings recover quickly. Importantly, dividends often rebound faster than share prices, because the income stream resets to reflect improved trading conditions.

For investors willing to look past the next year, buying during the trough of a cycle can significantly lift long-term income returns.

What else?

Some weakness can be cyclical.

Companies such as IPH Ltd (ASX: IPH) and CAR Group Limited (ASX: CAR) are facing cyclical headwinds in their respective markets.

Yet both businesses remain highly cash generative. Their current challenges appear cyclical rather than structural. When conditions normalise, their capacity to pay and grow dividends could improve meaningfully.

Foolish takeaway

This does not feel like an obvious income opportunity, but it could be.

When dividends are growing smoothly and sentiment is positive, income shares tend to be fully priced. When payouts are under pressure and confidence is low, valuations can become far more interesting.

For investors with patience, today’s environment could represent a rare chance to load up on quality Aussie income shares while expectations are subdued. If trading conditions improve over the next few years, the combination of recovering dividends and rising share prices could prove very rewarding.

The post Aussie income stocks: A once-in-a-decade chance to get richer? appeared first on The Motley Fool Australia.

More reading

• Is AI a real threat to CAR Group and REA Group shares?
• Got $5,000? 5 ASX income shares to buy and hold forever
• Why these ASX 200 shares could be dirt cheap
• 1 ASX dividend stock down 62% I’d buy right now
• $10,000 in these ASX dividend shares pays how much passive income?

Motley Fool contributor James Mickleboro has positions in Accent Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group, CAR Group Ltd, IPH Ltd , and Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Yesterday afternoon, Zimplats Holdings Ltd (ASX: ZIM) announced a strong quarterly report, highlighting a 22% jump in 6E metal in final product and a 6% reduction in cash operating costs per ounce compared to the prior quarter.

What did Zimplats report?

• Ore mined rose 5% quarter-on-quarter and 15% year-on-year to 2,124,000 tonnes.
• Ore milled increased by 3% from the previous quarter and 12% on the prior comparable period.
• 6E metal in final product jumped 22% quarter-on-quarter to 174,229 ounces, up 35% year-on-year.
• Operating cash cost per 6E ounce fell 6% from the previous quarter to US$1,009, but was 8% higher year-on-year.
• Total operating cash costs increased by 4% to US$170 million compared to the prior quarter.
• Two lost-time injuries were recorded during the quarter.

What else do investors need to know?

The improvement in mined and milled volumes was supported by better underground equipment reliability and higher open pit output. 6E head grade was steady compared to the last quarter, but fell 3% from a year ago due to changes in ore sources.

Major capital projects are progressing well, including the Mupani mine development, which is on track for full-scale production by FY2029, and the smelter expansion where cumulative spending has reached US$466 million. Zimplats also advanced its solar generation project, aiming for 80MW capacity by mid-2027.

What’s next for Zimplats?

Looking ahead, Zimplats plans to maintain its focus on safety improvements and operational efficiency. Continued investment in growth projects, like the Mupani mine and expanded renewable energy, positions the company well for long-term production growth and cost management.

Management has also highlighted strong progress on expanding its tailings storage and base metal refining capabilities, supporting future operational stability. Investors may want to watch for updated guidance and further project milestones in the coming quarters.

Zimplats share price snapshot

Over the past 12 months, Zimplats shares have risen 91%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Zimplats quarterly earnings: production up, costs down, projects on track appeared first on The Motley Fool Australia.

More reading

• Deterra Royalties posts higher Q2 revenue as MAC iron ore shines
• These were the best-performing ASX 200 shares in January
• Here are the top 10 ASX 200 shares today
• IperionX ramps up titanium production, secures US government support
• Nickel Industries cements leadership in ENC, welcomes Sphere as strategic partner

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.