Tag: Stock pick

The S&P/ASX 200 Index (ASX: XJO) is back on form and charging higher on Thursday. In afternoon trade, the benchmark index is up 1.1% to 8,539.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down a further 4% to $1.90. This morning, the counter drone technology company responded to an ASX Aware Letter. The company was asked to explain recent share sales and the accidental release of announcement. With respect to the latter, DroneShield revealed that it is working on implementing new ERP and CRM platforms, due to go live in early 2026, to strengthen operational controls and reporting quality.

GQG Partners Inc (ASX: GQG)

The GQG Partners share price is down over 4% to $1.55. Investors have been selling this fund manager’s shares despite there being no news out of it today. However, it is worth noting that GQG Partners has been avoiding certain areas of the market due to concerns over an AI bubble. So, with Nvidia (NASDAQ: NVDA) delivering a stronger than expected update this morning, the market may believe that GQG Partners’ underperformance will continue in the near term.

Origin Energy Ltd (ASX: ORG)

The Origin Energy share price is down almost 3% to $11.47. This may have been driven by improving investor sentiment, which has led to investors flooding back into higher risk areas of the market like the tech sector. Given that Origin Energy is seen as a safe haven option by many investors, they could be rotating out of it during today’s session.

Worley Ltd (ASX: WOR)

The Worley share price is down 4% to $13.11. This follows the release of the engineering services company’s annual general meeting update this morning. While management has reaffirmed its guidance for FY 2026, it warned that it would be weighted more than normal to the second half of the year. Its CEO, Chris Ashton, said: “For this financial year, we expect earnings to be weighted more heavily to the second half. We typically experience seasonality in our revenue and earnings profile, but in FY2026 this weighting to the second half for earnings is expected to be more pronounced than in prior years. This reflects the impact of non-material project cancellations, but primarily the significant work that we’re doing to re-position capability in areas of higher demand, transform the way we work and to reset our cost base.”

The post Why DroneShield, GQG Partners, Origin Energy, and Worley shares are falling today appeared first on The Motley Fool Australia.

More reading

• DroneShield directors’ share sales and contract error: What investors need to know
• Worley holds AGM after growing revenue and maintaining its dividend in FY25
• 5 things to watch on the ASX 200 on Thursday
• Nvidia and Microsoft land a multibillion-dollar Anthropic partnership. Which stock benefits most?
• Here are the top 10 ASX 200 shares today

At present, National Australia Bank Ltd (ASX: NAB) stock is looking attractive from a dividend standpoint.

This ASX 200 bank stock has long been famous for paying out fat, fully franked dividends. And given NAB is the big four bank offering the largest fully franked dividend yield at 4.2% today, it’s understandable that this stock might be drawing the eyeballs of many income investors right now.

However, there’s an ASX dividend giant that I would easily choose over NAB if I were seeking high-quality passive income today.

That dividend giant is MFF Capital Investments Ltd (ASX: MFF).

MFF Capital is a listed investment company (LIC), meaning that it, unlike most ASX shares, it invests in a portfolio of underlying assets itself, which it manages on behalf of its shareholders.

In MFF’s case, this portfolio is mostly made up of US stocks. MFF has always been run using the Warren Buffett template of buying high-quality companies that possess wide economic moats and holding onto them.

Its portfolio manager is Chris Mackay, who was one of the co-founders of Magellan. Mackay has long been a famous Buffett disciple, which is evident from this LIC’s investing strategy.

Unlike Buffett, though, Mackay is not afraid to invest in tech shares, with many of MFF’s largest holdings hailing from the tech sector. This is evident from the MFF portfolio’s composition. As it stands today (well, as of 31 October), this divided stock’s largest holdings were Mastercard, Alphabet, Bank of America, Visa, American Express, Amazon, and Meta Platforms.

Most of these positions have been staple MFF holdings for many years.

Better than NAB stock: What makes MFF a dividend giant?

But let’s talk dividends.

MFF’s portfolio success has allowed it to build up a formidable track record of paying dividends to its shareholders. To illustrate, it was as recently as 2017 that shareholders were getting an annual total of 2 cents per share from MFF in passive income.

But since 2017, this LIC has increased its payouts every single year. Its annual dividends hit a total of 13 cents per share in 2024, rising to 17 cents per share in 2025. The company has already guided that its first dividend of 2026 will be worth 10 cents per share, so this streak looks likely to continue.

MFF’s dividends have also always come with full franking credits attached too, making this a very lucrative income stock indeed, particularly for long-term investors.

So, although MFF capital is trading on a dividend yield of 3.62% today, well below NAB’s, its dividend track record makes it a giant in my view, and a much better buy for income than NAB stock today.

The post An ASX dividend giant I’d buy over NAB stock right now appeared first on The Motley Fool Australia.

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American Express is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, American Express, Mastercard, Meta Platforms, Mff Capital Investments, National Australia Bank, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Mastercard, Meta Platforms, and Visa. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Meta Platforms, Mff Capital Investments, and Visa. 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) has returned to form on Thursday and is charging higher. At the time of writing, the benchmark index is up 0.9% to 8,525.6 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are storming higher:

Meeka Metals Ltd (ASX: MEK)

The Meeka Metals share price is up 7% to 23 cents. This follows the release of drilling results from the gold miner’s Andy Well Underground Mine. Commenting on the drilling, Meeka’s managing director Tim Davidson said: “The high gold grades in this drilling are typical of the Andy Well mineralisation and are likely to extend the mining footprint by 450m to the south, a significant increase to the current mine plan. The high-grade gold remains open down plunge and we see strong potential to further expand the Resource and production plan in this area.”

Nufarm Ltd (ASX: NUF)

The Nufarm share price is up 9% to $2.59. This appears to have been driven by the release of a number of bullish broker notes this morning. One of those came from Morgans. In response to its full year results, the broker has upgraded Nufarm’s shares to a buy rating with a $3.20 price target. It said: “While NUF’s FY25 result was weak, it was slightly above guidance. A solid Crop Protection result was overshadowed by a poor Seed Technologies performance. Gearing was far too high at 2.7x, however it was better than feared Outlook comments were upbeat. In FY26, material earnings growth and a reduction in leverage ratios is expected. We have upgraded our forecasts.”

SKS Technologies Group Ltd (ASX: SKS)

The SKS Technologies share price is up 5% to $3.49. This follows the release of an update at the technology solutions provider’s annual general meeting. Management revealed that it is forecasting revenue of around $320 million and a profit before tax of $28.8 million. This is being underpinned by “strong demand across all market sectors, with significant and accelerating growth forecasts in the data centre sector.”

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price is up 6% to $31.06. Investors have been flooding back into the beaten down tech sector today after Nvidia (NASDAQ: NVDA) released a stronger than expected quarterly update. This has eased concerns that there could be an AI bubble that is about to burst. At the time of writing, the S&P/ASX All Technology Index is up by a sizeable 3.3%.

The post Why Meeka, Nufarm, SKS, and TechnologyOne shares are storming higher appeared first on The Motley Fool Australia.

More reading

• Bell Potter says this ASX 200 share can rise 50%
• 5 things to watch on the ASX 200 on Thursday
• 1 of my favourite ASX shares just fell 17% in a day – and I’m buying more
• 3 of the best Australian stocks to buy after the market selloff
• Should you buy TechnologyOne shares after they crashed 17%?

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

S&P/ASX 200 Index (ASX: XJO) giants like BHP Group Ltd (ASX: BHP) and Westpac Banking Corp (ASX: WBC) have given investors decent returns over the past year. But there are some much smaller and lesser-known ASX shares which are earning investors a huge amount more money.

Dividend gains and passive income are one thing, but enormous returns are just as great for investors looking for a way to make cash. Here are two overlooked shares which have rocketed this year.

Dateline Resources Ltd (ASX: DTR)

Dateline Resources is an Australian-based gold and rare earth mining and exploration company focused in the United States. Its main projects include the Colosseum Gold-REE Project in California and the Gold Links Mine in Colorado. The company also has an interest in the Argos Strontium Project. The project focuses on strontium minerals used in magnets and pyrotechnics. 

The ASX miner’s shares are trading 7.14% higher on Thursday morning at 29 cents per share. Dateline Resources has seen some incredible share price growth recently. The stock is trading an explosive 9,733.33% higher than this time last year. That means just $500 invested 12 months ago is now worth $49,166.65!

It looks like the small-cap miner could have some good growth prospects too. It’s important to note that the company has not defined a rare earths resource at Colosseum yet which is economically viable to mine. But it is currently conducting an evaluation of its gold system at the same site. This will determine if developing a gold mine is worthwhile or not. If it is, Dateline Resources could be set for even more growth. 

Servcorp Limited (ASX: SRV)

Servcorp provides flexible workspace solutions like serviced offices, virtual offices, and coworking spaces in major cities around the world. Founded in Sydney, the company is able to offer businesses access to a professional and prestigious address, across 150 locations. It can also give IT and administrative support to help clients operate more flexibly and cost-effectively. 

The ASX small-cap company’s shares are trading 0.57% lower at the time of writing, at $7.02 a piece. Over the past month, the shares have slumped 4.62%, but over the year, they’re still 43.27% higher.

Servcorp’s shares have stormed higher at the same surprising rate as Dateline Resources, with its investors enjoying some robust gains over the past 12 months as the under-the-radar business continues strengthening.

The company recently posted record profits, rising free cash flow, and maintains a cash and investment balance north of $140 million. Shareholders have also been rewarded dividends of 28 cents per share in FY25, up 12% from the prior year and management has indicated that in FY26, payouts won’t fall below 30 cents.

The post 2 little-known ASX shares making investors an outrageous amount of money appeared first on The Motley Fool Australia.

More reading

• Why are ASX gold shares and ETFs soaring today?
• The ASX small-cap compounding faster than the market’s biggest names

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

The All Ordinaries Index (ASX: XAO) is in the green today, with ASX uranium stocks, including Paladin Energy Ltd (ASX: PDN) shares, doing a lot of the heavy lifting.

In morning trade on Thursday, the All Ords is up a welcome 1%.

Here’s how these leading ASX uranium stocks are tracking at this same time:

• Boss Energy Ltd (ASX: BOE) shares are up 4% at $1.70
• Deep Yellow Limited (ASX: DYL) shares are up 8.1% at $1.73
• Paladin Energy shares are up 4.5% at $8.36
• Lotus Resources Limited (ASX: LOT) shares are up 4.6% at 17.3 cents
• Bannerman Energy Ltd (ASX: BMN) shares are up 5.7% at $3.18

Here’s what’s spurring ASX investor interest today.

ASX uranium stocks catching US tailwinds

The Aussie uranium miners are catching tailwinds on two fronts today. And both are blowing out of the United States.

First, the US Department of Energy announced that it will loan US$1 billion (AU$1.5 billion) to Constellation Energy to help fund the restart of the Three Mile Island nuclear power plant. That site was home to the worst nuclear accident in the US in 1979 when one of the units suffered a partial meltdown.

In welcome news for ASX uranium stocks like Paladin Energy, however, US President Donald Trump is an adamant supporter of nuclear energy and encourages its use to help power the rapid growth of AI data centres.

Microsoft Corp (NASDAQ: MSFT) has contracted the Three Mile Island nuclear facility to power its own data centre expansions. The plant is scheduled to recommence operations in 2027.

Commenting on what he labelled the “American nuclear renaissance“, US Energy Secretary Chris Wright said (quoted by Newsweek):

Constellation’s restart of a nuclear power plant in Pennsylvania will provide affordable, reliable, and secure energy to Americans across the Mid-Atlantic region. It will also help ensure America has the energy it needs to grow its domestic manufacturing base and win the AI race.

What other US nuclear news is fuelling investor optimism?

ASX uranium stocks, including Boss Energy, Paladin Energy, and Deep Yellow, are also getting a boost from news that the US intends to buy up to 10 new large-scale nuclear reactors.

In an interesting twist, Bloomberg reports the reactors may be paid for with part of Japan’s US$550 billion pledge to fund US projects.

Energy Department chief of staff Carl Coe noted, “The role of having the government involved in private markets is sacrosanct — you just don’t do it. But this is a national emergency.”

The post Why are ASX uranium stocks like Paladin Energy going gangbusters on Thursday? appeared first on The Motley Fool Australia.

More reading

• The smartest AI stock to buy with $1,000 right now
• Nvidia and Microsoft land a multibillion-dollar Anthropic partnership. Which stock benefits most?
• US stocks will underperform over next decade: Goldman Sachs
• These are the 10 most shorted ASX shares
• 3 US dividend stocks that can boost an ASX retirement portfolio

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 positions in and has recommended Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Microsoft. 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 to put $10,000 to work and want exposure to some of the most powerful megatrends shaping the global economy, a handful of ASX ETFs are offering exactly that.

These funds allow you to tap into high-growth sectors like technology, AI, digital assets, and advanced robotics, all without needing to pick individual winners.

And with markets recently wobbling on interest rate uncertainty and sentiment swinging sharply between optimism and caution, this could be an ideal moment to target long-term opportunities at more attractive prices.

Here are three explosive growth ETFs that could supercharge a portfolio over the next decade.

BetaShares Australian Technology ETF (ASX: ATEC)

If you want exposure to Australia’s leading technology shares, the BetaShares Australian Technology ETF remains one of the strongest options on the ASX.

This ASX ETF includes some of the country’s most scalable and globally competitive tech names, such as WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO), TechnologyOne Ltd (ASX: TNE), NextDC Ltd (ASX: NXT), and REA Group Ltd (ASX: REA).

These companies are deeply embedded in long-term trends like logistics automation, cloud computing, enterprise SaaS, and digital infrastructure. WiseTech dominates global freight software, Xero leads small-business accounting, TechnologyOne continues to expand its SaaS+ footprint, NextDC is powering AI and cloud growth through data centres, and REA Group remains Australia’s dominant property platform.

Australian tech has been volatile in recent months, but the fundamentals of these businesses remain exceptionally strong. This fund was recently named as one to consider buying by Betashares.

BetaShares Crypto Innovators ETF (ASX: CRYP)

For investors comfortable with volatility, the BetaShares Crypto Innovators ETF provides exposure to the companies leading the global cryptocurrency and blockchain ecosystem.

It includes major global players such as Coinbase Global (NASDAQ: COIN), MicroStrategy (NASDAQ: MSTR), Marathon Digital Holdings (NASDAQ: MARA), and Riot Platforms (NASDAQ: RIOT).

These companies tend to move sharply with shifts in crypto sentiment, and the ETF has fallen significantly from its highs as risk appetite cooled. But the long-term adoption of blockchain technology, decentralised finance, and digital storage solutions continues to grow worldwide.

For investors with patience and a tolerance for volatility, this fund could provide powerful leverage to future crypto cycles.

BetaShares Global Robotics & Artificial Intelligence ETF (ASX: RBTZ)

The long-term megatrend of artificial intelligence, automation, and robotics remains one of the most compelling themes in global investing, and the BetaShares Global Robotics & Artificial Intelligence ETF is a straightforward way to access it.

This ASX ETF holds world-leading stocks such as Nvidia (NASDAQ: NVDA), ABB Ltd (SWX: ABBN), Fanuc Corporation (TYO: 6954), Intuitive Surgical (NASDAQ: ISRG), and Keyence Corporation.

These are innovators driving everything from industrial automation to AI processing to robotic-assisted surgery. These industries are scaling rapidly as businesses modernise their operations and adopt intelligent systems.

It was also recently named as one to consider buying by Betashares.

The post 3 explosive growth ETFs to buy with $10,000 right now appeared first on The Motley Fool Australia.

More reading

• 3 fantastic ASX ETFs to buy after the market selloff
• 3 fantastic ASX ETFs to buy and hold until 2030
• 3 explosive ASX ETFs for investors chasing growth
• 5 top ASX ETFs to buy and hold for 5 years+
• Where to invest $5,000 in ASX ETFs in November

Motley Fool contributor James Mickleboro has positions in Nextdc, REA Group, Technology One, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Abb, Intuitive Surgical, Nvidia, Technology One, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Coinbase Global and Fanuc. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Nvidia and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Qube Holdings Ltd (ASX: QUB) share price is in focus today as the company holds its annual general meeting (AGM). In FY25, the company reported record underlying revenue of $4.46 billion, up 27.3% year-on-year, and lifted its fully franked full-year dividend by 7.1% to 9.8 cents per share.

What did Qube Holdings report in FY25?

• Underlying revenue of $4,461.4 million, up 27.3% from FY24
• Underlying EBITDA of $616.2 million, up 15.4% year-on-year
• Underlying EBITA of $377.2 million, up 18.5% over FY24
• Underlying NPATA of $288.0 million, 6.2% higher than FY24
• Underlying EPSA grew 6.0% to 16.25 cents
• Full-year fully franked dividend of 9.8 cents per share, up 7.1% on FY24

What else do investors need to know?

Qube’s diversified business model continued to deliver earnings growth across multiple sectors, despite headwinds like severe weather and industrial action. Recent acquisitions including Webb Dock West, Coleman, and enhancements to Qube’s NSW agrigrain network have strengthened its position in key markets.

The company also completed divestments generating $248 million in proceeds, notably from the sale of a freehold property at Minto. Safety is an ongoing focus—while the Total Recordable Injury Frequency Rate showed improvement, there remains work to do following a tragic workplace fatality at the Narromine Agri facility.

What’s next for Qube Holdings?

Qube expects to maintain its growth momentum in FY26, with management confirming financial performance in the first quarter was in line with expectations. The business continues to pursue both organic and inorganic opportunities across its markets and foresees solid underlying NPATA and EPSA growth.

Ongoing investment in technology, infrastructure, and decarbonisation efforts, along with new contracts secured, are expected to support Qube’s strategy into the new financial year.

Qube Holdings share price snapshot

Over the past 12 months, Qube Holdings has increased 6%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 1% over the same period.

View Original Announcement

The post Qube Holdings holds AGM after hitting record earnings in FY25 appeared first on The Motley Fool Australia.

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• Dalrymple Bay Infrastructure shares: terminal update and capacity outlook
• DroneShield directors’ share sales and contract error: What investors need to know
• Sonic Healthcare holds AGM after posting strong FY25 growth and reaffirming FY26 outlook
• Worley holds AGM after growing revenue and maintaining its dividend in FY25
• TPG Telecom launches $438m reinvestment plan after $3bn capital return

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.

James Hardie Industries plc (ASX: JHX) shares are having a strong session on Thursday.

At the time of writing, the ASX 100 stock is up 6% to $28.55.

But if you thought the gains were over, think again!

That’s because the team at Macquarie believes this could be the start of even greater gains for this building materials company’s shares.

What is the broker saying?

Macquarie notes that James Hardie released its second quarter update earlier this week and delivered a profit result ahead of expectations. It said:

While EBITDA was preguided and JHX printed at the upper end of the range (US$326-331m) at ~US$330m, NPAT beat the Visible Alpha (VA) consensus expectations by ~7%. D&A and tax outcomes were guided lower at the recent update, which does not seem to be fully reflected in consensus and could add some EPS momentum support.

The good news doesn’t stop there. Macquarie points out that the ASX 100 stock has upgraded its earnings guidance for FY 2026. Importantly, the guidance upgrade is larger than its earnings beat for the second quarter. It adds:

The FY26 outlook upgrade (to EBITDA of US$1.2-1.25bn) well exceeded the 2Q FY26 outperformance of the August guidance, helped by a relatively rapid channel destock, and, we believe, equilibrium in the new construction market is close too. Market conditions remain weighed by uncertainty, but we believe JHX’s August downgrade has encapsulated this risk well, seemingly.

Should you buy this ASX 100 stock?

According to the note, Macquarie thinks that now could be a great time to buy James Hardie shares.

In response to its update, the broker has retained its outperform rating and lifted its price target to $41.70. Based on its current share price, this implies potential upside of 46% for investors between now and this time next year.

Commenting on its outperform recommendation, the team at Macquarie said:

Outperform. Market conditions are tough, but stabilising – inventory concerns are fading. Focus now turns to rates and housing policy. An evolving AZEK integration story, a bottoming of markets, and valuation are in support of our thesis. Governance changes also seen as additive.

Valuation: We increase our 50/50 DCF/SOTP-based TP to $41.70 (from $40.60), reflecting earnings changes and a reduction of NAM multiples by 1x as EPS expectations recover. Our TP implies an EV/EBIT of 16.8x (versus a ten-year average of 16x). Catalysts: US Treasury rate developments, housing policy adjustments.

The post Why this ASX 100 stock could rocket 46% appeared first on The Motley Fool Australia.

More reading

• Down 20% in a month, this ASX 200 stock is a buy according to Morgans
• James Hardie shares tipped to soar another 53%: Here’s why
• Here are the top 10 ASX 200 shares today
• Why James Hardie, Meteoric Resources, Pilbara Minerals, and SKS shares are rising today
• Why are James Hardie shares jumping 9% today?

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

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

There’s no denying just how much artificial intelligence (AI) has taken over the tech and business world over the past couple of years. With this has come huge investor interest in any company dealing with the technology in any capacity. Some AI stocks are flourishing strictly based on the current AI hype, while others are thorough businesses that will only be boosted by the technology.

As an investor, you should look to invest in a company that falls into the latter category, which is why one of the smartest AI stocks to buy right now is Microsoft (NASDAQ: MSFT). 

Why Microsoft?

Microsoft has one of, if not the most diversified businesses in the big tech world. Where it really stands to gain from AI developments is in its enterprise software businesses. Between Office 365 (Excel, Word, Teams, PowerPoint, etc.), Windows, and Azure, thousands of companies rely on Microsoft to run their daily operations.

By boosting these offerings with AI, Microsoft strengthens its competitive advantage and tightens its grip on the enterprise market. The enterprise software business helps with Microsoft’s stability because it’s a segment that doesn’t tend to take a huge hit when the broader economy isn’t at its best. It’s much easier for consumers to cut off subscriptions than it is for companies to do so without jeopardizing their day-to-day operations.

When you invest $1,000 in Microsoft, you know you’re investing in a thorough business that will benefit from AI, but isn’t overly dependent on AI hype for its core business performance.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post The smartest AI stock to buy with $1,000 right now appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Why are ASX uranium stocks like Paladin Energy going gangbusters on Thursday?
• Nvidia and Microsoft land a multibillion-dollar Anthropic partnership. Which stock benefits most?
• US stocks will underperform over next decade: Goldman Sachs
• 3 US dividend stocks that can boost an ASX retirement portfolio
• 5 top ASX ETFs to buy and hold for 5 years+

Stefon Walters has positions in Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Microsoft. 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) and Fortescue Ltd (ASX: FMG) are two of the largest resource stocks on the S&P/ASX 200 Index (ASX: XJO). Their shares move for very different reasons, their risks differ, and the outlook for one is much stronger than the other.

When it comes to these two powerhouses, I’d buy one but sell the other.

I’d buy Woodside shares

Woodside shares closed 0.11% lower on Wednesday afternoon, at $26.27 a piece. Over the past month, the Australian petroleum exploration and production company’s shares are 18.01% higher, and over the year, they’re up 7.71%. The company’s share price pushed higher on the back of a steep uptick in the crude oil price in late October. 

Unfortunately, the latest increase hasn’t done much to recover the crude oil price losses over the year. It is still 13.35% lower than 12 months ago and well below the peaks seen in 2022. 

Thankfully, Woodside shares have remained relatively stable, and the company has been able to maintain strong dividends throughout the year.

While the dwindling oil prices have dampened Woodside’s performance potential, it looks like the company could be set for some tailwinds going forward.

Fairmont Equities’ Michael Gable recently said that the share price chart of Woodside indicates the stock has bottomed, amid seeing signs of it starting to move higher again. Although the broker currently has a hold rating on the shares.

Other brokers are more bullish on the stock. TradingView data shows 7 out of 15 analysts have a buy or strong buy rating on the shares. The remaining 8 have a hold rating. The maximum target price is $33.57, which represents a potential 27.8% upside for investors over the next 12 months.

I’d sell Fortescue shares

Fortescue shares closed 2.16% higher on Wednesday afternoon, at $20.36 each. Over the past month, the shares have climbed 0.99% higher, and they’re now up 14.7% compared to this time last year. 

The iron ore mining giant’s shares have been boosted by the recent resilience of the iron ore price. Iron ore has recovered from an annual low in July. Over the past month, it has fallen 1.18%, but it is still 2.27% higher than a year ago, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity.

Fortescue also posted its September quarter results on 23 October. The miner reported record total iron ore shipments over the three months of 49.7 million tonnes, up 4% year on year.

But I’m concerned that, given Fortescue isn’t a diversified miner like some of the other mining majors, any further pull-back in iron ore prices over the next 12 months could have a huge impact on Fortescue’s financials.

Analysts seem to have the same sentiment, too. Macquarie has assigned an underperform rating to Fortescue shares and a target price of $18.50. That represents a potential 9.1% downside for investors at the time of writing.

The post Woodside vs Fortescue shares: One I’d buy and one I’d sell 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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.