On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week on a positive note. The benchmark index rose 0.4% to 8,692 points.

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

ASX 200 to rise

The Australian share market looks set to rise again on Tuesday following a strong night in Europe. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.25% higher. In the United States, Wall Street was closed for the Memorial Day holiday. But in Europe, the DAX rose 2%, the CAC climbed 1.75%, and the FTSE pushed 0.2% higher.

Oil prices sink

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch on Tuesday after a poor night for oil prices. According to Bloomberg, the WTI crude oil price is down 6.5% to US$90.30 a barrel and the Brent crude oil price is down 7% to US$96.30 a barrel. This was driven by optimism that the US and Iran could soon sign a peace deal and reopen the Strait of Hormuz.

Goodman results

All eyes will be on Goodman Group (ASX: GMG) shares on Tuesday when the industrial property giant releases its third-quarter results. The market is expecting Goodman to reaffirm its FY 2026 guidance for earnings per share growth of 9%. However, the team at Morgan Stanley sees scope for management to upgrade its guidance because of some key transactions that have occurred since its last update.

Gold price storms higher

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Tuesday after the gold price stormed higher overnight. According to CNBC, the gold futures price is up 1.1% to US$4,573.6 an ounce. The gold price rose in response to easing oil prices, which has reduced interest rate hike expectations.

Wesfarmers shares upgraded

Wesfarmers Ltd (ASX: WES) shares are good value according to analysts at Morgans. The broker has upgraded the Bunnings owner’s shares to an accumulate rating (from trim) with a slightly improved price target of $81.10 (from $80.50). It said: “WES’s share price has fallen 9% over the past 12 months and 7% over the past 6 months. The stock is now trading on a more reasonable 26.5x FY27F PE compared to a peak one-year forward multiple of ~37x in August 2025. […]  In our view, WES remains a high-quality business with a healthy balance sheet and a proven management team. Amid ongoing geopolitical uncertainty and cost-of-living pressures, its retail divisions (Bunnings, Kmart Group, Officeworks, Priceline) are well-placed to grow due to their strong value propositions. A sustained improvement in lithium prices should also support earnings over the medium term.”

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

More reading

• Buying Wesfarmers shares today? Here’s the dividend yield you’ll get
• Why this ASX gold miner is quietly outperforming its peers in 2026
• 2 ASX growth shares that could be long-term winners
• How to start investing in ASX shares in 2026
• Here are the top 10 ASX 200 shares today

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

There are always plenty of reasons for ASX shares to fall. Broad economic conditions, poor earnings or company-specific setbacks such as rising costs, margin pressure, regulatory issues, or weakening demand can all quickly weigh on investor sentiment.

However there is a pivotal point where ASX shares, despite these headwinds, become especially attractive to value investors.

This arbitrary number can be difficult for investors to pinpoint. 

However looking at expert estimates can help identify ASX shares that have been oversold, and now represent a buy low candidate. 

Here are three such options that may have reached that price after hitting fresh 52-week lows yesterday.

Seek Ltd (ASX: SEK)

Seek is a global leader in the online employment marketplace, serving Australia, Asia, Latin America, and beyond.

Its share price tumbled 5% yesterday to hit a new 52-week low of $12.08 per share. 

This was despite no price sensitive news from the company. 

Seek shares are now down 48% year to date. 

It seemed they had finally shaken AI replacement fears during April as its share price recovered somewhat. 

However the downslide has since continued during May. 

These ASX shares now appear too cheap to ignore. 

At the time of writing, 14 analysts offering a one year forecast have an average price target of $23.12 on Seek shares. 

This indicates an upside potential of 91% from current levels. 

Austal Ltd (ASX: ASB)

Austal is an Australian-based shipbuilder that specialises in the design, construction, and support of defence and commercial vessels globally.

Its products include naval vessels, defence surface warfare combatants, high-speed support vessels, patrol boats for law enforcement, offshore vessels, as well as passenger and vehicle ferries.

The company enjoyed a defence craze in 2025, as its share price rocketed over 100% during the last calendar year. 

However since the start of 2026, it has crashed 44%. 

This has come despite contract wins and a record order book of $17.7 billion in contracted work, up from $13.1 billion just eight months earlier. 

It now has a decade of work locked in the pipeline, yet has been heavily sold off. 

Broker targets are hovering around $6.94 for this ASX defence stock. 

This is 83% higher than its current share price, making it an enticing buy low option. 

Energy One Ltd (ASX: EOL)

Energy One engages in the development and provision of software solutions to the electricity and gas sector.

Its share price slumped 5% yesterday and it now sits 32% lower today than the start of 2026. 

These ASX shares also now appear oversold, as recent price targets have been placed on the company as high as $17.10. 

From yesterday’s closing price of $11.63, this indicates a 47% upside. 

The post Are these oversold ASX shares too cheap to ignore? 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 positions in and has recommended Energy One. 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.

Wesfarmers Ltd (ASX: WES) is one of the ASX’s bluest blue-chip shares, if we can use that rather tortured expression.

The industrial and retailing conglomerate has been around in Australia for longer than any Australian alive today. Wesfarmers is not exactly a household name. Despite this, most Australians would be intimately familiar with several of this company’s underlying businesses. These include Kmart, Target, OfficeWorks, Bunnings, Kleenheat Gas, King Gee, and Priceline, amongst many others.

Over its long history, Wesfarmers has built up a solid reputation as a prudent manager of capital and an effective steward of its investors’ wealth.

Despite this reputation, Wesfarmers shares have had a rough 12 months, though. After clocking a new all-time high of $95.18 a share in August last year, the company has been drifting lower ever since. Its current share price of $75.62 (at the time of writing) puts Wesfarmers down about 7.5% for 2026 to date, and down 8.5% over the past 12 months. It remains about 21% away from that August record high.

That’s not all bad news for investors, though. As any good dividend seeker knows, a lower share price can mean a higher upfront dividend yield. So today, let’s examine what kind of yield Wesfarmers shares currently have on the table.

Wesfarmers shares: What kind of dividend yield is on offer right now?

At the current Wesfarmers share price, this ASX 200 blue-chip stock is trading on a trailing dividend yield of 2.83%. That yield is based on the last two dividend payments Wesfarmers has made to shareholders. The first of these was the March interim dividend, worth $1.02 per share. The second was the final dividend from October, which came in at $1.11 per share.

Both dividends came with full franking credits attached, as is Wesfarmers’ habit. Both also represented healthy rises over their prior corresponding payouts, worth 95 cents and $1.07 per share, respectively.

Wesfarmers also paid out a special dividend alongside its final dividend last year. This was worth 40 cents per share and came fully franked as well.

However, all of this reflects what shareholders have already been paid, not what they will be paid if they buy Wesfarmers shares today. Of course, we can never know what dividends any company will pay until it declares them.

Fortunately, analysts are optimistic that the income from Wesfarmers shares is set to keep rising into the future.

Last week, my Fool colleague examined what analysts at CMC Invest are pencilling in when it comes to Wesfarmers’ dividends. These analysts are predicting an annual dividend total of $2.20 per share from Wesfarmers over FY 2026. If accurate, that would give the company a forward dividend yield of approximately 2.91% at the current price.

Let’s see if that prediction turns out to be on the money.

The post Buying Wesfarmers shares today? Here’s the dividend yield you’ll get appeared first on The Motley Fool Australia.

More reading

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• Thinking about dividend yields? Here’s how much the top 10 ASX 200 shares pay

Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. 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.

The S&P/ASX 200 Index (ASX: XJO) climbed marginally to start the week, sending several ASX shares to fresh 52-week highs. 

This included: 

• Mineral Resources Ltd (ASX: MIN) rose almost 3% to hit new highs of $71.53. 
• Korvest Ltd (ASX: KOV) climbed 1.5% to hit fresh highs of $17.07. 
• Sims Ltd (ASX: SGM) rose nearly 4% to finish at $24.12. 

When ASX shares rise significantly in a short period, holders obviously enjoy quick profits. 

However it can make it difficult for prospective investors to pull the trigger due to fears of buying at the peak. 

Here is what was driving the strong performance for these ASX shares and what experts are anticipating in the next 12 months. 

Mineral Resources hits new highs 

Mineral Resources is a leading mining services company with a portfolio of mining operations across multiple commodities, including iron ore and lithium.

Its share price is now up almost 200% in the last year. 

Much of this growth has come on the back of improved lithium sentiment. 

After a brutal downturn that crushed lithium prices across 2024 and 2025, the market has started to anticipate a recovery in battery material demand as electric vehicle sales continue growing globally.

Because Mineral Resources owns significant lithium exposure through the Wodgina and Mt Marion operations, investors are increasingly viewing the company as a leveraged play on any improvement in lithium prices.

Additionally, the company recently delivered a strong quarterly update, with volumes across iron ore, lithium, and mining services all exceeding the broker’s expectations.

However now sitting at just over $71 per share, it appears these ASX shares are fully valued. 

Ord Minnett recently placed a $67 price target on the stock, while Morgans recently placed fair value at $71. 

Korvest hits yearly highs

Korvest manufactures electrical and cable support systems, steel fabrication and provides associated metal treatment and galvanising services.

It is up an impressive 67% in the last 12 months. 

It has benefited during this span from optimism around Australia’s infrastructure, mining, and energy-transition spending cycle.

However, in a similar vein to Mineral Resources, experts see limited further upside. 

Analysts forecasts are hovering around $17.30, right around its current share price. 

Sims could be a buy

Sims is a global leader in metal and electronics recycling. The company provides a crucial circular economy service that reduces the need for new metals and electronics.

Its share price hit fresh yearly highs yesterday, and is now up 61% in the last year. 

As Mark Verhoeven reported last week, it could be poised to benefit from rising demand for recycled metals driven by EVs, renewable energy infrastructure, and data centre growth.

Recent results show strong earnings momentum, with higher profits and improving margins across its key recycling and lifecycle services businesses, particularly in North America. This suggests both cyclical recovery and better operational execution.

Looking ahead, growth is supported by continued demand for non-ferrous metals, expansion in US recycling operations, and strong tailwinds from IT asset disposal linked to AI-driven data centre expansion.

The post Are these ASX shares a buy, hold or sell after hitting fresh 52-week highs? appeared first on The Motley Fool Australia.

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• Up 167% in a year, here’s why this ASX 200 lithium stock is rising again

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 Korvest. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Not all gold miners are created equal. 

The gold price may be the headline driver of sector returns, but operational execution, cost discipline, and balance sheet strength ultimately separate the winners from the rest. 

Over the past twelve months, Evolution Mining Ltd (ASX: EVN) has demonstrated all three with impressive consistency.

The performance gap

Evolution Mining shares have risen approximately 40% over the past twelve months, comfortably outpacing the ASX 200’s gain over the same period. 

That outperformance is even more striking when viewed against the backdrop of a sector that has been far from uniformly positive. 

Northern Star Resources Ltd (ASX: NST) issued two production guidance downgrades in FY2026, sending its shares sharply lower.

Against that backdrop, Evolution’s consistent delivery has made it stand out as one of the most reliable large-cap gold miner on the ASX in 2026.

What is driving it

The March 2026 quarter update told the story clearly. 

Evolution delivered record group cash flow of $406 million and moved to a net cash position for the first time in the company’s history, ending the quarter with net cash of $69 million after repaying all borrowings. 

Gold production came in at 181,533 ounces for the quarter, on track to meet full-year guidance of 710,000 to 780,000 ounces at an all-in sustaining cost of A$1,640 to A$1,760 per ounce. 

At the current gold price of approximately A$4,900 per ounce, that AISC guidance implies margins of more than A$3,100 per ounce, which is among the strongest in Evolution’s history. 

The board also approved new capital investments at Cowal, Ernest Henry, and Northparkes during the quarter, reinvesting in organic growth from internally generated cash flow rather than relying on debt or equity dilution. 

In its ASX release, Evolution CEO Lawrie Conway said: 

Our record cash generation in the March quarter reflects the quality of our asset base and the team’s continued focus on operational excellence. Moving to a net cash position is a significant milestone and provides us with the financial strength to continue investing in our operations and delivering value for shareholders.

The resource base is growing

Beyond the near-term operational numbers, Evolution’s annual Mineral Resources and Ore Reserves Statement, released in May 2026, revealed that Group Mineral Resources have grown to 31 million ounces of gold and 4.2 million tonnes of copper.

Contained gold was up 3% year-on-year led by strong additions at Cowal and Northparkes. 

That growing resource base underpins Evolution’s ability to sustain and grow production well beyond the current mine plan, a quality that long-term investors should value highly.

Furthermore, Evolution’s copper by-product from Ernest Henry, which contributes meaningfully to the company’s AISC calculation, is benefiting from the same copper price surge that is driving excitement across the broader mining sector.

Foolish takeaway

Evolution Mining may not be the flashiest gold stock on the ASX. 

But is able to consistently demonstrate operational reliability, a growing resource base, record cash generation, and a net cash balance sheet.

This gives management the flexibility to keep investing in growth without diluting shareholders.

In a sector where execution risk is always present, that consistency is worth paying for.

The post Why this ASX gold miner is quietly outperforming its peers in 2026 appeared first on The Motley Fool Australia.

More reading

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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 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.

Zip Co Ltd (ASX: ZIP) shares climbed 2.3% higher to $2.25 a piece, at the time of writing. The latest uptick means the stock is now down 33% for the year-to-date.

The digital financial services company has suffered a volatile start to 2026 so far, with its share price swinging anywhere between $1.45 and $3.56 a piece.

After crashing over 40% from a multi-year high late last year, Zip shares continued to consistently tumble through the first through months of 2026.

By mid-March, the stock had lost another 56% of its value. 

The tech shares then staged a u-turn and quickly climbed 57% higher in April alone. While the market was optimistic the price climb would continue, the share price softened again through March.

What caused the sharp share price selloff over the past seven months?

Zip shares have lost 31% of their value between peaking at a multi-year high in October last year and the end of 2025.

The company was caught up in a tech sector-wide sell-off and this was likely exacerbated by investors taking gains off the table after a strong share price rally.

The shares also suffered pressure from short sellers in late-2025. 

In 2026, the headwinds continued. The company’s first-half FY26 results in February missed expectations and its value crashed quickly as investors fled from their shares. 

Investors were spooked by concerns about rising competition, slowing growth and margin compression.

More recently, a softer share price is likely down to slumping sentiment. Technology and growth shares have been under pressure again this month as investors reassess valuations and risk appetite. 

Meanwhile, concerns about higher interest rates, global uncertainty, and concerns around consumer spending have all weighed on the sector.

So, if I bought $10,000 of Zip shares 12 months ago, what are they worth now?

While the share price fell quickly through early-2026, a recent rebound means the shares are still 18% higher than 12 months ago, at the time of writing.

That means that $10,000 invested in Zip shares a year ago is worth $11,800.

What’s next for Zip shares?

It looks like analysts are unanimous that Zip shares are now oversold and undervalued. 

Brokers widely expect strong upside for the buy-now-pay-later (BNPL) provider over the next 12 months, too.

Market Index data shows that brokers have a strong buy consensus on the shares. They tip an average 70% upside to $3.83 over the next 12 months.

TradingView data shows a very similar sentiment. The data also shows a consensus buy rating and an average target price of $3.83 implies a 70% upside, at the time of writing. But others are even more bullish and are tipping the shares to soar another 140% to $5.40 each.

Why are Zip shares expected to fly higher?

Zip’s financial results have been robust over the past few quarters. Its latest third-quarter FY26 results announcement in mid-April showed that growth has started to accelerate.

Zip reported a 22.4% year-on-year increase in its total translation volume (TTV). The company also confirmed a 20.2% increase in total income, a higher operating margin of 19.4% and confirmed it has grown its active customer base by another 3.5%.

The fintech business also upgraded its FY26 group cash EBTDA guidance to at least $260 million, from previous guidance of around $248.6 million.

The company is aggressively expanding in the US too. Its US transaction volume is forecast to rise over 40% in FY26. Meanwhile group operating margins are expected to remain above 18%.

Zip is also pursuing a dual sharemarket listing on the Nasdaq in the US. This could also help to drive even opportunity for business expansion in the area.

The post $10,000 invested in Zip shares 12 months ago is now worth… appeared first on The Motley Fool Australia.

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

Xero Ltd (ASX: XRO) and WiseTech Global Ltd (ASX: WTC) have both been hit hard.

Xero shares are down around 60% from their high, while WiseTech Global Ltd shares are down almost 70% from their high.

Falls that large can make investors nervous, but they can also create opportunity when the underlying businesses remain strong.

I rate both of these ASX tech shares highly. In fact, I would be happy to own both in a long-term portfolio. But if I had to choose only one today, this becomes a much harder decision.

Why I like Xero shares

Xero is one of the best software businesses on the ASX in my view.

The company started with accounting software, but I think the bigger opportunity is becoming a broader financial operating system for small businesses.

Small business owners need help with invoicing, payroll, payments, tax, reporting, cash flow, and financial decision-making. Xero sits close to those daily workflows, which can make the platform very sticky once customers rely on it.

The US opportunity is a key reason I rate Xero highly. It will not be easy, given the competitive landscape, but even modest success in that market could add meaningfully to the company’s long-term growth runway.

The risk is valuation and execution. Xero still needs to keep growing, improving margins, and proving it can win outside its strongest markets.

But I think the share price fall has made a high-quality software business look very attractive.

Why I like WiseTech shares

WiseTech is also a world-class ASX technology share.

Its CargoWise platform is used in complex global logistics and freight forwarding workflows. This is not light, optional software. Global trade involves documentation, customs, compliance, routing, pricing, transport, and endless exceptions.

That complexity is why I like the business. When software becomes deeply embedded in a customer’s operations, it can be difficult to replace. WiseTech has built a strong position in a specialised industry where domain knowledge is very important.

I also think AI could be genuinely useful for WiseTech. Logistics still involves a lot of manual data entry, document checking, compliance work, and exception handling. If AI agents can reduce some of that workload, WiseTech’s platform could become even more valuable to customers.

The acquisition of e2open also gives WiseTech a broader opportunity across trade, supply, demand, and connected supply chain networks. That adds complexity, but it also expands the possible prize.

Which would I buy?

This is close, because I think both businesses have strong long-term potential.

But if I had to buy only one today, I would choose WiseTech.

The main reason is the combination of share price weakness and embedded industry position. A fall of almost 70% from its high is not something to ignore, and there are clearly risks around execution, integration, valuation, and investor confidence.

But I think WiseTech’s role in global trade software is extremely hard to replicate. The business operates in a complex market, serves mission-critical workflows, and has a practical AI opportunity that could help customers save time and reduce errors.

Xero remains a share I would happily buy as well. Its small business platform opportunity is excellent. But at today’s prices, WiseTech edges ahead for me because the risk/reward looks slightly more compelling.

Foolish takeaway

This is not a case of one good ASX tech share and one bad one.

I think Xero and WiseTech are both high-quality businesses with long growth runways. Both could be much larger in a decade if management executes well.

But if I had to make the difficult choice today, I would buy WiseTech first. The sell-off has been severe, the business remains deeply embedded in global logistics, and the AI opportunity looks directly tied to real customer pain points. 

For patient investors, I think that makes it the more compelling buy right now.

The post Xero shares vs WiseTech shares: Which ASX tech share would I buy today? appeared first on The Motley Fool Australia.

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

At a time when inflation is higher and there has been a shift in the taxation system, I think it could be a good idea to look at ASX dividend shares as a way to build a second income.

I’m building a second income myself, and I’m focusing on businesses I believe can provide pleasing and growing payouts.

Rising payouts are appealing because we don’t need to invest as much to achieve passive income growth.

The below two are among my favourites for investing in dividend-paying businesses.  

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

I’d call this business the king of dividend payments in Australia. It has increased its payout every year since 1998, which is the longest growth streak on the ASX.

It has been listed on the ASX for more than 120 years and it has paid a dividend in every one of those years, including through the wars, global pandemics, recessions and so on.

The investment conglomerate has a diversified investment portfolio across a wide range of sectors including telecommunications, energy, swimming schools, agriculture, water entitlements, industrial properties, and plenty more.

Soul Patts is a single company, but it has a variety of assets, so it’s not reliant on one area.

The business has grown its dividend at a compound annual growth rate (CAGR) of 11.9% over the last five years, which is an excellent pace of improvement.

On top of that, the company’s portfolio value has steadily increased over the years as its existing investments grow organically and it regularly makes new investments.

As the cash flow from its portfolio grows, it can fund larger dividend payments. In the FY26 half-year result, it reported cash flow growth of 15.4% to $334 million, funding a 9.1% increase of the interim dividend.

Its latest two half-year dividends come to a grossed-up dividend yield of 3.6%, including franking credits.

MFF Capital Investments Ltd (ASX: MFF)

The other ASX dividend share I really want to highlight as an option for a second income is MFF, which is best known as a listed investment company (LIC) that focuses on international shares.

MFF aims to invest in competitively advantaged businesses that have strong economic moats, great profit growth potential and are priced attractively. Its portfolio has performed and I think the US blue-chips it owns are very appealing options.

But, the LIC can provide good diversification with a single investment – we don’t need to monitor the entire share market.

MFF has committed to raising the passive income payments for shareholders, which I think makes it an appealing option for passive income.

The ASX dividend share expects to grow its FY26 annual dividend by 23.5% – that’s a great increase, in my opinion.

At the time of writing, it offers a grossed-up dividend yield of 6%, including franking credits. I think this is a great time to invest for the long-term and for a second income.

The post Don’t want to rely on your wage? Build a second income with these ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Mff Capital Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX industrials stock SGH Ltd (ASX: SGH) has been attracting broker attention recently after the company’s investor day last week. 

SGH is a leading Australian diversified operating and investment Group with market leading businesses and investments in Industrial Services, Energy and Media sectors. 

The company has seen its share price slip almost 12% year to date, however brokers are anticipating a recovery throughout the next 12 months. 

What did the company report at its investor day?

According to the release, FY26 EBIT growth is expected to be within the range of low to mid single-digit. 

The company also reported HY26 EBIT up 22% on 2H FY25.

Bell Potter noted that the company also plans to generate $100m in benefits from AI initiatives over FY26–27.

The company also aims to grow earnings steadily over time, maintain strong returns on investments, and eventually increase its market value to $30bn and join the ASX50.

Management remains positive on long-term demand from Australian infrastructure spending, mining growth, ageing mining equipment needing maintenance, and stronger gas and LNG markets. 

Other updates included a new property development joint venture for Boral, plans for better equipment utilisation at Coates, and continued focus on improving Boral’s profit margins.

Bell Potter slightly lowered its earnings forecasts for SGH because it now expects weaker revenue growth and margins across some divisions.

Updated targets from Bell Potter

Based on this guidance, the team at Bell Potter lowered its price target to $50.00 (previously $56.00). 

However, from yesterday’s closing price of $41.30, this indicates roughly 21% upside. 

We view SGH’s market valuation as undemanding. SGH has articulated a robust medium and long-term valuation creation framework at its FY26 Investor Day, underpinned by reasonable operational targets. Any forthcoming M&A activity would likely be well received by the market.

It’s worth noting that Bell Potter isn’t the only broker with a positive outlook for this ASX industrials stock. 

The team at Macquarie increased its price target on SGH shares to $50.40 following the investor day. 

Macquarie said while macroeconomic conditions remained complex, SGH’s execution remains strong, “and Boral likely continues to support the majority of near-term growth”.

Additionally, RBC Capital Markets also recently released a report on SGH, with a price target of $47.

These targets all indicate an upside hovering around 20% for this ASX industrials stock. 

The post This ASX industrials stock could be set to race 20% higher: Expert 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.

After getting hammered in the wake of the Federal Budget release, Commonwealth Bank of Australia (ASX: CBA) shares have staged a strong comeback.

If you own the big four S&P/ASX 200 Index (ASX: XJO) bank stock, you’ll likely remember the 10.4% share price crash suffered on 13 May.

That historic selling pressure followed CBA’s own March quarter (Q3 FY 2026) update, which coincided with numerous analyst forecasts of the potential negative impacts the Federal budget could have on CommBank’s loan book.

But since market close on 13 May, CBA shares have gained 7.11%, closing on Monday trading for $164.60 apiece.

For some context, the ASX 200 has gained 0.71% over this same period.

And looking ahead, Investor Pulse’s Mark Elzayed believes that Australia’s biggest bank could continue to outshine the wider market (courtesy of The Bull).

Here’s why.

Should you buy CBA shares today?

“CBA remains Australia’s dominant retail bank,” Elzayed noted.

Citing the first reason you might want to buy CBA shares today, he said, “The recent sharp sell-off has created a more attractive entry point for long term investors.”

Indeed, despite the sizeable rebound since the recent closing low on 13 May, CBA shares remain down 5% over the past 12 months. And shares in the ASX 200 bank stock are still down 14% since hitting their all-time closing highs of $191.40 apiece on 25 June.

But, as Elzayed, noted, profits are still rolling in.

“The bank generated unaudited cash net profit after tax of $2.7 billion in the third quarter of fiscal year 2026, up 4% on the prior corresponding period,” he said, citing the second reason he’s bullish on the big four bank.

As for the third reason the bank stock could outperform, Elzayed said, “Lending and deposits continued to grow despite a softer economic backdrop.”

At its recent Q3 results, CBA reported:

Home loan new funding remained strong with $45 billion funded in the quarter. For the 12 months to March 2026, home loan balances grew $41 billion at 1.0x system, while household deposits grew $38 billion at 1.1x system.

Which brings us to the fourth reason you may wish to buy CBA shares today, namely the bank’s solid risk profile and reliable passive income.

“CBA also maintains strong capital levels and recently paid a fully franked interim dividend of $2.35 a share for the first half of fiscal year 2026,” Elzayed said.

Summing up his bullish outlook on CommBank shares, he concluded, “The shares fell heavily following housing concerns flowing from the Federal Budget. We see scope for a recovery once sentiment stabilises.”

The post 4 reasons to buy CBA shares today appeared first on The Motley Fool Australia.

More reading

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• Experts recommend CBA and these ASX shares as buys
• Why I think CBA shares are a blue-chip buy in June
• How big will the CBA dividend be in 2027?
• Where I’d invest $5,000 in ASX shares this week

Motley Fool contributor Bernd Struben 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.