Tag: Stock pick

Cochlear Ltd (ASX: COH) shares edged 0.3% higher to $113.34 during Tuesday afternoon trade. That modest gain follows a 4% decline on Monday and caps off an extraordinary few months for investors.

The ASX healthcare stock has rebounded 17% over the past month, yet it remains down a staggering 57% year to date. With the share price swinging wildly, many investors are wondering what’s driving the volatility and where Cochlear goes from here.

Why have Cochlear shares been so volatile?

To understand the recent moves, it’s worth remembering just how painful April was for investors in Cochlear shares.

The biggest blow landed on 22 April when Cochlear released a trading update that shocked the market.

Investors rushed for the exits after the company reported weaker demand for its hearing implants across developed markets. Management also highlighted cancellations and delivery delays in the Middle East due to the ongoing regional conflict.

The result was one of the most dramatic share price reactions seen on the ASX this year. Cochlear shares plunged 40.7% in a single trading session.

The disappointing update forced management to slash its FY 2026 underlying net profit guidance to between $290 million and $330 million. That was a significant downgrade from its previous forecast range of $435 million to $460 million.

Since then, investors have been trying to determine whether the setback represents a temporary disruption or a more serious threat to the investment case.

Has the long-term story changed?

While earnings expectations have clearly deteriorated, Cochlear’s competitive position remains largely intact.

The company still controls roughly half of the global cochlear implant market, making it the clear industry leader. That market leadership has been built over more than four decades of investment in research, development, and innovation.

Its products are deeply embedded within healthcare systems around the world, creating significant barriers for competitors attempting to win market share.

Perhaps even more importantly, the long-term growth runway remains substantial.

The addressable market is estimated to exceed six million patients across developed markets alone, yet penetration remains only around 3%. That leaves significant room for future growth if awareness, diagnosis rates, and adoption continue to improve.

An ageing population, increasing awareness of hearing loss, and ongoing advances in implantable hearing technology should also support long-term demand and the price of Cochlear shares.

What do analysts think?

Analyst sentiment on Cochlear shares remains cautious but not outright bearish.

TradingView data shows most brokers currently rate Cochlear shares as a hold. The average price target sits at $129.12, implying approximately 13% upside from current levels.

Bell Potter is among the brokers maintaining a hold recommendation.

The long term opportunity for this hearing implants maker remains compelling, supported by a large addressable market, strong brand position and an attractive product pipeline. However, near term trading conditions have softened in response to weaker referral activity in the US, hospital capacity constraints in Europe and reimbursement changes in China. Until there’s clearer evidence that volumes are stabilising, a more balanced stance is appropriate. The long term growth story and product pipeline remain intact.

For now, many analysts appear willing to wait for clearer evidence that implant volumes are stabilising before becoming more constructive on the stock.

That means Cochlear’s long-term growth story remains intact, but investors may need to be patient as the company navigates a difficult operating environment.

The post What on earth’s going on with Cochlear shares? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Charter Hall, Northern Star, Cochlear shares
• 3 ASX healthcare shares to sell despite signs of sector rebound
• Healthcare shares led the ASX 200 last week. Is a sector comeback underway?
• Where I’d invest $2,000 in ASX 200 shares
• Here are the top 10 ASX 200 shares today

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

Liontown Ltd (ASX: LTR) shares are down around 2.5% and trading at $1.86 a piece in Tuesday afternoon trade.

Today’s decline means the ASX 200 lithium shares have now crashed 30% from a three-year high recorded in early May. 

Thankfully, after a strong start to the year, the shares are still 14% higher year to date and a huge 181% higher than 12 months ago.

For context, the S&P/ASX 200 Index (ASX: XJO) is up around 0.1% today and around 1% higher for the year to date.

What happened to Liontown shares?

ASX lithium mining shares like Liontown experienced a strong uptick in the first few months of 2026, driven by resurging lithium prices and soaring investor sentiment. 

Liontown rode the lithium rebound, and at the same time, investors have been pleased with the company’s production growth potential. It looks like investors leaned into Liontown shares this year on the pretence that it has a long-term ability to benefit from strong lithium pricing and expanding global EV demand.

The miner’s development pipeline and exposure to future supply chains have also attracted investor attention.

But while the commodity boom is a strong tailwind for the miner, there is also a drawback.

Liontown is practically a pure-play lithium miner, and its assets are overwhelmingly lithium-focused. This means it is sensitive to and heavily dependent on lithium price trajectories. 

If the price rally starts to reverse, the business is at risk.

And that’s exactly what has played out in Liontown’s share price.

Trading Economics data shows that lithium carbonate prices spiked to a multi-year high in mid-May. But now prices have dropped to around CNY157,000 (approx. AU$33,210) per tonne, the lowest level in ten weeks, following speculation that one of the world’s largest lithium mines could resume operations soon.

Trading Economics explained that Contemporary Amperex Technology‘s Jianxiawo mine in Jiangxi province was suspended last year due to permitting issues. But there has been a recent government notice about a preliminary land assessment. And this has fueled expectations that the site could restart in the second half of 2026. 

The concern is that a potential restart could weigh heavily on prices at a time when the market is still concerned about global lithium oversupply. This, combined with overall sector-wide weakness, can continue driving the lithium stock lower.

The question now is, what can we expect from Liontown shares next?

Are the shares a buy, sell, or hold now?

Analysts are divided about the outlook for the lithium miner over the next year. 

TradingView data shows that sentiment is split. Out of 12 analysts, five have a strong buy rating, four rate the miner as a hold, and three have a sell or strong sell stance.

The average $2.20 target price, however, implies a potential 17% upside at the time of writing. 

But the range between the minimum and maximum target prices is huge. Some tip the shares to crash another 50% to just 95 cents, while the more bullish of the bunch think there is potential for Liontown shares to climb another 60% to $3 each.

The post Liontown shares crash 18% in a month: What happened? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• 6 ASX shares upgraded by analysts this week
• Buy, hold, sell: Liontown, Wildcat Resources, PLS Group shares
• 10 ASX 200 shares given buy ratings this week
• Top brokers name 3 ASX shares to buy now

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

The S&P/ASX 200 Index (ASX: XJO) is a touch lower on Tuesday, despite another decent session for the big banks.

At the time of writing, the ASX 200 is down 0.07% to 8,809 points.

The index has moved around during the session. It climbed as high as 8,849.9 points earlier in the day before falling to a low of 8,798.4 points.

At the latest check, 139 of the top 200 shares are trading lower, while 51 are higher and 10 are unchanged.

Bank stocks provide some support

The main reason the ASX 200 isn’t down further is the support coming from the big banks.

Commonwealth Bank of Australia (ASX: CBA) shares are up 0.67% to $164.50, while Westpac Banking Corp (ASX: WBC) shares are 1.01% higher at $35.475.

National Australia Bank Ltd (ASX: NAB) shares are up 1.19% to $38.32, and ANZ Group Holdings Ltd(ASX: ANZ) shares are 1.28% higher at $35.70.

Macquarie Group Ltd (ASX: MQG) is also helping, with its shares up 0.81% to $249.92.

That strength is helping offset weakness elsewhere, especially with several large resource names trading lower.

CSL Ltd (ASX: CSL) is also lending a hand. Its shares are up 1.36% to $114.41.

Resources stocks hold back the ASX 200

The resources side of the market is under pressure today.

BHP Group Ltd (ASX: BHP) shares are down 0.18% to $60.23, while Woodside Energy Group Ltd (ASX: WDS) shares are 0.57% lower at $28.605.

Although gold and lithium stocks are seeing heavier selling.

Northern Star Resources Ltd (ASX: NST) shares are down 2.45% to $20.68, Evolution Mining Ltd (ASX: EVN) shares are 1.81% lower at $12.75, and Lynas Rare Earths Ltd (ASX: LYC) shares are down 2.44% to $18.165.

PLS Group Ltd (ASX: PLS) is also being sold off, with its shares down 2.80% to $5.37.

US tech jitters are still being watched

Local investors are keeping an eye on Wall Street after another choppy session for US tech stocks.

The Nasdaq Composite Index (NASDAQ: .IXIC) was pressured by weakness in large tech names, including Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) and Space Exploration Technologies Corp (NASDAQ: SPCX).

US futures are also lower during local trade, which has kept buyers cautious around growth stocks.

That is flowing through to some ASX tech shares. Pro Medicus Ltd (ASX: PME) shares are down 1.20% to $172.55, while REA Group Ltd (ASX: REA) shares are 1.78% lower at $133.35.

Where does the ASX 200 go from here?

The ASX 200 is still up 1.1% since the start of 2026 and around 4% over the past year.

Still, today’s session shows the market is leaning heavily on the banks.

If resources and tech keep slipping, the index may need more support from offshore markets to move higher.

The post Why is the ASX 200 stuck in the red today? appeared first on The Motley Fool Australia.

More reading

• Woodside shares sink again as oil price pressure outweighs new gas deal
• Lynas shares retreat on Malaysia expansion news
• Down 17%: What should I do with my Westpac shares now?
• 3 cheap ASX shares that could be hiding in plain sight
• Why A2 Milk, Calix, CSL, and Ioneer shares are charging higher today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, CSL, and Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd and Pro Medicus. The Motley Fool Australia has recommended Alphabet, BHP Group, CSL, Macquarie Group, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you’re looking for solid capital gains and trying to sort the wheat from the chaff on the ASX, it’s often useful to defer to the experts.

I’ve had a look through the research reports from the broking houses this week and have selected three companies tipped to deliver outsized gains over the next 12 months.

Let’s see who the brokers like.

Acrow Ltd (ASX: ACF)

Acrow is a construction systems company – think scaffolding, formwork, and the like.

The company recently announced a fully underwritten institutional equity raise to raise $70 million, along with a share purchase plan for another $10 million.

Ord Minnett, in a note to clients over the past week, said the company’s goal of paying down debt and restarting its M&A strategy with the $27 million acquisition of Ausgroup and the $25 million acquisition of Preston Superdeck was a positive.

They added:

We view this update positively for a number of reasons: 1) the debt levels of ACF have been an ongoing issue for the company, and the equity raise goes a long way in wrangling the Net Debt/EBITDA multiple to reasonable levels; 2) Ausgroup looks to be a nice bolt-on acquisition, bolstering ACF’s presence in North Queensland with industrial access proving to be a solid revenue stream for the group; and 3) Preston Superdeck fills a product gap in ACF’s product offering, adding loading platforms to the company’s ‘one stop-shop’ value proposition in the construction services space.

Ord Minnett has a price target of $1.30 on Acrow compared to 93.5 cents currently. If achieved, this would be a 39% return.

Credit Clear Ltd (ASX: CCR)

Morgans has tipped Credit Clear as a company to watch, saying the debt collection business has scope to grow, given its proprietary digital collections platform, which they say is a key differentiator.

The broker said regarding the company:

Since listing in 2020, the group has evolved from a pure-play collections technology business to an increasingly scalable end-to-end contingent collections platform which, in our view, is well positioned to deliver long-term compounding growth both organically and through acquisitive market consolidation.

Morgans said Credit Clear is in a unique position to consolidate the market, which is worth $1.5 billion across Australasia and the UK.

The broker has a price target of 30 cents for the company, compared to 21 cents currently, which would represent a 42.9% return if achieved.

IODM Ltd (ASX: IOD)

Shaw and Partners likes IODM, which is an accounts receivable automation software company.

The broker said a recent deal with TransferMate “materially expands IODM’s distribution opportunity across its primary growth region while further strengthening a strategic partnership that has expanded materially over the past 12 months”.

Shaw and Partners said the deal followed the expansion with TransferMate into the US earlier, “reinforcing our view that the relationship is becoming increasingly strategic for both parties”.

Shaw and Partners has a price target of 29 cents for IODM shares, up from 12 cents currently, which would represent a gain of 141.7% if achieved.

The post 3 ASX shares with 39% to 141% growth ahead of them: Experts appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: How does Morgans rate these ASX shares?
• Why Acrow, Ampol, Medallion Metals, and Northern Star shares are racing higher

Motley Fool contributor Cameron England 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.

Are you looking for some new additions to your portfolio? If you are, then it could pay to listen to what Morgans is saying about the ASX shares named below.

Here’s what you need to know about them:

Amcor PLC (ASX: AMC)

Morgans has been looking deeper at this packaging giant. While it is positive on the company, it does have concerns over its stretched balance sheet.

Nevertheless, it remains positive enough to put an accumulate rating and $65.40 price target on Amcor’s shares. This implies potential upside of 13% for investors. It commented:

Following its merger with Berry Global in April 2025, AMC identified a non-core portfolio of ~US$2.5bn in revenue. These lower-growth or lower-margin businesses where AMC lacks scale or leadership positions are expected to be divested over time via cash sales or joint ventures/partnerships. While there is a range of scenarios that can play out, using conservative assumptions, we estimate the combined non-core portfolio could be worth ~US$1.8bn. To date, AMC has reached agreements to sell six businesses for a combined value of ~US$500m. AMC plans to use proceeds from non-core asset sales to reduce leverage, which stood at 3.8x at the end of 3Q26.

While management expects leverage to end FY26 at 3.4-3.5x, the stretched balance sheet remains a key investor concern. Our analysis indicates a strong negative relationship (correlation coefficient -0.76) between AMC’s leverage and its 1-year forward PE multiple. We therefore expect a reduction in leverage to support an improvement in AMC’s PE multiple over time. We make no changes to our earnings forecasts and maintain our A$65.40 target price. However, with a 12-month forecast TSR of 18%, we move our rating to ACCUMULATE (from BUY).

Credit Clear Ltd (ASX: CCR)

Another ASX share that Morgans has been running the rule over is debt collection company Credit Clear.

In response to its move into the UK market, the broker has initiated coverage on Credit Clear with a speculative buy rating and 30 cents price target. This suggests that upside of 36% is possible from current levels. It said:

Credit Clear (CCR) is a leading Australian debt collections business, which focuses on contingent collections. CCR has to date made solid progress in establishing a commanding foothold within ANZ. We see the group’s recently formed beachhead in the larger UK market as a material consolidation prospect to drive further scale. We initiate coverage on CCR with a Speculative Buy rating and $0.30 price target.

IDP Education Ltd (ASX: IEL)

Finally, Morgans was pleased with this language testing and student placement company’s better-than-expected trading update. It highlights that cost reductions are better than it was forecasting and management’s decision to undertake a share buyback signals confidence in its outlook.

As a result, the broker has retained its buy rating with an improved price target of $3.45. This implies potential upside of 50% for investors over the next 12 months. It commented:

IDP delivered a positive update, including better-than-expected net cost out in FY26 (A$30m vs A$25m), potential further cost reductions in FY27 and strong capital management discipline (deleverage to ~1x in FY26-27; ~A$50m buy-back). We are encouraged by management’s confidence in the progress of the multi-year business transformation, highlighted by the stated ~A$50m buy-back and ongoing operational performance (yield strength; working capital discipline) in a subdued volume backdrop. The update incrementally reinforces our recent upgrade.

Our volume expectations remain conservative, with no meaningful SP recovery assumed until FY29 (-10% FY27; -3% FY28; +3% FY29). We remain willing to look through a cyclically depressed valuation for a leaner market leader, underpinned by structural demand, ongoing tech/product development and China testing optionality. BUY rec.

The post Buy, hold, sell: How does Morgans rate these ASX shares? appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares with 39% to 141% growth ahead of them: Experts
• 3 companies to own for a dividend yield above 5%
• 2 ASX shares tipped to grow 50% or more in the next 12 months
• Leading brokers name 3 ASX shares to buy today
• 8 ASX shares with 30% to 220% upside ahead: Experts

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

Woodside Energy Group Ltd (ASX: WDS) shares are slipping again on Tuesday as weaker oil prices weigh on the energy sector.

At the time of writing, the Woodside share price is down 1.01% to $28.48.

That adds to a softer recent run for the ASX energy stock. Woodside shares are now down around 11% over the past month, although they remain about 20% higher since the start of 2026.

That strong start to the year came on the back of higher oil prices, which lifted sentiment across parts of the energy sector.

However, oil prices have pulled back today, and that appears to be weighing more heavily on Woodside shares than the company’s latest announcement.

Here’s what the company told investors.

Woodside signs a new gas deal

According to the release, Woodside said it has signed a sale and purchase agreement with Alcoa Corporation (ASX: AAI).

Under the agreement, Woodside will supply 31.1 petajoules of domestic gas from its Western Australian operations to Alcoa’s alumina refineries in the state.

The gas will be supplied between 2027 and 2030.

Woodside said the agreement continues a longstanding supply relationship with Alcoa and supports local industries in Western Australia.

Alcoa’s refineries produce alumina, which is the feedstock used to make aluminium. Aluminium is used across the construction, manufacturing, and energy sectors.

Woodside Executive Vice President, Marketing & Chief Commercial Officer, Mark Abbotsford, welcomed the agreement and said the company is continuing to bring gas to the Western Australian market.

The company also said the agreement supports local jobs and contributes to the state’s energy security later this decade.

Why the deal is worth watching

While this isn’t the kind of announcement that is likely to rapture investors into a cheer, it still gives the market something to note.

The agreement adds to Woodside’s domestic gas position in Western Australia and locks in another customer for supply later this decade.

It also follows the Western Australian government’s approval in December 2025 to extend the operation of the Pluto-Karratha Gas Plant Interconnector.

Woodside has been supplying domestic gas to Western Australia for more than 40 years.

In 2025, its share of Western Australian natural gas production was 90.3 petajoules. That represented about 21% of the state’s domestic gas supply.

Oil prices remain the bigger driver

The gas deal is a positive update, but it isn’t the main driver of Woodside’s shares today.

Brent crude is trading below US$78 a barrel after easing again on Tuesday, while crude oil is sitting near US$74 a barrel.

According to Trading Economics, oil steadied as traders weighed signs of progress in US-Iran talks following pressure yesterday.

Washington also granted Iran a 60-day licence to sell oil, raising hopes of a faster recovery in global supply.

Furthermore, traffic through the Strait of Hormuz has picked up, with producers including Kuwait and the UAE finding alternative routes to export energy.

That has taken some heat out of oil prices after they helped support Woodside shares earlier in the year.

The post Woodside shares sink again as oil price pressure outweighs new gas deal appeared first on The Motley Fool Australia.

More reading

• Why is the ASX 200 stuck in the red today?
• The US-Iran peace deal just wavered. Here is what this means for these ASX shares
• Up 23% this year, should I buy Woodside shares today?
• Buy, hold, sell: Life360, Woodside, CSL shares
• 5 things to watch on the ASX 200 on Monday

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

The Vanguard Diversified High Growth Index ETF (ASX: VDHG) could be one of the simplest long-term investing options on the ASX.

It is designed for investors who want a diversified portfolio in a single trade, with exposure to growth assets across Australia and overseas markets.

For those with a long time horizon, this fund could be a strong buy and hold investment.

Here are three reasons why.

Built-in diversification

The first reason to like the VDHG ETF is diversification.

Many investors start by trying to choose individual shares, sectors, or countries. That can work well, but it also requires time, research, and confidence.

The VDHG ETF takes a different approach.

It gives investors exposure to a broad mix of assets through one ASX-listed fund. This includes Australian shares, international shares, and defensive assets such as fixed interest.

That means investors are not relying on one company, one sector, or one market to drive returns.

This can be especially useful for people who want to build wealth steadily without constantly reshaping their portfolio.

The fund can still fall when markets are weak, because it has a strong growth focus. However, its broad spread of investments can help reduce the risk of being too exposed to a single part of the market.

A growth focus for long-term investors

The second reason is its high-growth profile.

The Vanguard Diversified High Growth Index ETF is built for investors with a long investment horizon. Its portfolio is heavily tilted toward growth assets, particularly shares.

That is important because shares have historically been one of the best ways to build wealth over long periods.

Australian shares can provide exposure to banks, miners, healthcare companies, retailers, infrastructure businesses, and industrial groups. International shares add access to global technology leaders, consumer brands, healthcare giants, and other major companies listed overseas.

This gives the VDHG ETF a strong mix of local and global growth potential.

The defensive assets in the portfolio can also play a useful role. They may help smooth returns during difficult periods and provide some balance when share markets are volatile.

This blend makes the fund suitable for investors who want long-term growth but still value a level of diversification across asset classes.

It keeps investing simple

The third reason is simplicity.

One of the biggest challenges that investors face is overcomplication. It is easy to own too many funds, chase too many themes, or constantly adjust a portfolio based on the latest market headlines.

This ASX ETF helps remove some of that noise. The fund gives investors a ready-made diversified portfolio, managed by Vanguard, with asset allocation and rebalancing handled inside the ETF.

This can make it easier to stay invested and add to existing positions.

Overall, for investors who want an easy way to build wealth over many years, the VDHG ETF could be one of the most useful buy and hold investment options on the ASX.

The post 3 reasons why the VDHG ETF could be a top buy and hold investment appeared first on The Motley Fool Australia.

More reading

• Where to invest $5,000 in Vanguard ETFs in June

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.

Lynas Rare Earths Ltd (ASX: LYC) shares were under pressure on Tuesday, falling 3% to $18.03 in afternoon trade after the company issued an environmental update regarding a proposed expansion of its operations in Malaysia.

The decline comes despite a remarkable year for shareholders. Lynas shares have surged approximately 95% over the past 12 months, dramatically outperforming the S&P/ASX 200 Index (ASX: XJO), which has gained around 3.7% over the same period.

So, what’s behind today’s pullback?

Critical rare earths player outside China

Lynas is the largest producer of separated rare earth materials outside China, giving it a strategically important position in global supply chains.

The company mines rare earth ore at its Mt Weld operation in Western Australia, then processes and refines it into products used in electric vehicles, wind turbines, defence technologies, electronics, and other advanced manufacturing applications.

As governments and manufacturers increasingly seek non-Chinese sources of critical minerals, Lynas shares have become a key beneficiary of that trend.

That theme has helped drive the company’s strong share price performance over the past year.

Investor enthusiasm accelerated further after China introduced export controls on a range of critical minerals and rare earth products, underscoring the importance of alternative suppliers. At the same time, rising geopolitical tensions have strengthened the investment case for Western rare earth supply chains.

What happened today?

Tuesday’s decline followed an update from Lynas regarding recent media reports covering an environmental impact assessment (EIA) linked to a proposed expansion of its Malaysian operations.

The company sought to clarify the situation after reports raised questions about the assessment process.

According to Lynas:

Lynas’ EIA report has undergone a technical review in accordance with the Malaysian regulatory assessment process. The Malaysian Department of Environment has requested that Lynas submit an updated EIA following that technical review process. Lynas will submit an updated EIA as requested.

In other words, Malaysian regulators have asked the company to provide an updated environmental assessment following a technical review of its original submission.

Importantly, Lynas indicated that the request forms part of the normal regulatory process and confirmed the $18 billion ASX share will provide the updated documentation.

Nevertheless, investors often react cautiously whenever regulatory approvals or environmental reviews become part of the story, particularly for companies undertaking major expansion projects.

What’s next for Lynas shares?

The key issue for investors will be whether the EIA review process creates any meaningful delays to Lynas’ expansion plans in Malaysia.

At this stage, the company has not suggested that the request represents a significant obstacle. Instead, it appears to be continuing through the standard assessment framework.

Longer term, the investment case for Lynas shares remains tied to global demand for rare earth materials and the strategic push to diversify supply chains away from China.

While today’s update has weighed on sentiment, the company’s strong share price performance over the past year suggests investors remain focused on the bigger picture.

The next catalyst for Lynas shares will likely come from progress on its expansion projects, rare earth pricing trends, and continued growth in demand for critical minerals.

The post Lynas shares retreat on Malaysia expansion news appeared first on The Motley Fool Australia.

More reading

• Why is the ASX 200 stuck in the red today?

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. 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.

Westpac Banking Corp (ASX: WBC) shares have climbed into the green in Tuesday lunchtime trade.

At the time of writing, the ASX banking giant’s share price is up around 0.5% and changing hands at $35.36 a piece.

The increase is good news for investors after the ASX bank stock hit a 10-month low of $34.50 nearly two weeks ago.

But there is still a long way to go before Westpac shares recover losses shed over the past couple of months. Even after today’s uptick, the shares are still down around 9% for the year to date and are 17% lower than an all-time high recorded in early April.

For context, the S&P/ASX 200 Index (ASX: XJO) is down around 0.1% at the time of writing, but is around 1% higher for the year to date.

What has happened to Westpac shares recently?

Westpac posted a solid first-half result in early May. Westpac’s statutory net profit was 3% higher year on year but 5% lower compared to the second half of FY25. Its total lending and deposit growth also climbed 7% year on year.

There was a brief share price uptick after the result was announced, but then investor sentiment reversed, and the sell-off resumed. 

Confidence about the outlook for Westpac remains low, and broad bank-sector weakness has also helped pull its share price lower. 

The bank’s shares came under even more selling pressure last month after a court ruling weighed on sentiment. The ruling related to ongoing compliance risk at the bank. 

The good news is that the Reserve Bank’s latest interest rate hold decision has alleviated some pressure for Westpac this month. Westpac is the most mortgage-exposed of the big four bank shares, with approximately 69% of its loan book in residential mortgages. 

But, it looks like the reprieve is only temporary. The bank’s own economists do expect the cash rate to begin rising again in late 2026.

The question now is, if you own Westpac shares, what should you do with them?

Should you sell up ahead before the share price falls again? Hold tight and wait it out? Or buy more in the dip?

Here’s what the experts think.

Are Westpac shares a buy, sell, or hold?

It’s clear that, even after the latest declines, the market still considers Westpac shares as overpriced and above fair value.

Market Index data shows that the majority of brokers have a strong sell rating on the banking giant’s shares. The $32.96 average target price implies a potential 7% downside at the time of writing.

TradingView data also shows that the majority (nine out of 16) have a sell or strong sell rating on the shares. The average $33.48 target price implies a potential 6% downside at the time of writing. However, some expect Westpac’s shares to fall up to 17% to $29.41 over the next 12 months.

Christopher Watt from Bell Potter Securities is one broker with a sell rating on this ASX bank share. 

He said that while the business is improving on the metrics that matter, the operating backdrop is weakening. He added that mortgage applications are down, and proposed tax and negative gearing changes have soured sentiment. With the stock trading near the top of its range, Watt sees more downside than upside ahead for Westpac shares.

My view of Westpac shares

I think that continued competition in the mortgage market, the uncertain outlook for cash rate movements, and dwindling analysts’ confidence point to more downside ahead.

I’m not sure I’d sell up just yet, but I certainly wouldn’t be adding more Westpac shares to my portfolio without some visibility of a potential turnaround ahead.

The post Down 17%: What should I do with my Westpac shares now? 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.

Some big name ASX shares have been under significant pressure over the past 12 months.

While this is disappointing for shareholders, it could have created a buying opportunity for others.

Let’s now look at three cheap ASX shares that could be hiding in plain sight:

CSL Ltd (ASX: CSL)

CSL is one of the most interesting cheap ASX blue-chip ideas on the market.

The biotech giant has had a difficult period, with investors losing confidence in its earnings outlook and growth profile.

That has left the share price trading at levels that would have seemed hard to imagine a few years ago.

But I think CSL remains interesting because its business has been built on foundations that competitors cannot quickly copy.

Its plasma operations require collection centres, specialist manufacturing, strict regulatory approvals, and deep relationships with healthcare systems. Those foundations take years to develop and give the company a level of scale that remains difficult to replicate.

If execution improves and confidence returns, the selloff could eventually look like an attractive entry point into a business with genuine global scale.

Treasury Wine Estates Ltd (ASX: TWE)

Another cheap ASX share that could be worth watching is Treasury Wine Estates.

The wine company has been through a rough period as investors have questioned demand, margins, inventory levels, and its growth outlook.

That pressure has weighed heavily on sentiment. However, Treasury Wine still owns a portfolio of wine brands with value in key markets. Its investment case is tied to brand strength, distribution, pricing power, and the ability to capture demand for premium wine over time.

This is a business where confidence can change meaningfully if trading conditions stabilise.

There are risks, especially around consumer demand and execution. But when investors turn against a branded consumer company, the share price can sometimes fall further than the long-term fundamentals justify.

If Treasury Wine can show that its premium portfolio still has earnings power, the current weakness could prove to be a compelling opportunity.

WiseTech Global Ltd (ASX: WTC)

A third cheap ASX share to consider is WiseTech.

The logistics software company has fallen heavily from its highs, leaving it trading at a fraction of the valuation the market was once willing to pay. In fact, its shares hit a multi-year low of $29.48 on Tuesday.

A good portion of this decline comes from concerns over allegations relating to its founder Richard White.

But if you look beyond the leadership uncertainty, WiseTech is a high-quality business with a strong offering.

Its CargoWise platform helps freight forwarders and logistics operators manage the complexity of global trade.

That includes customs, documentation, compliance, shipment management, invoicing, and cross-border workflows.

The business solves a difficult problem in a large global industry. Logistics is complex, fragmented, and full of manual processes, which gives software a meaningful role to play.

If WiseTech can rebuild confidence and move on from its founder concerns, its share price could have significant recovery potential.

The post 3 cheap ASX shares that could be hiding in plain sight appeared first on The Motley Fool Australia.

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• Why A2 Milk, Calix, CSL, and Ioneer shares are charging higher today
• Down 53%, is it time to throw in the towel on CSL shares?
• WiseTech shares rebound 5%, responds to media reports: Is it time for investors to buy back in?
• Should I buy CSL and ResMed shares right now?
• WiseTech shares just crashed. Can investors look past the company’s governance issues?

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