Tag: Stock pick

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down slightly to 9,081.3 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

PWR Holdings Ltd (ASX: PWH)

The PWR share price is up 12% to $9.85. This follows the release of the advanced cooling technology company’s half-year results. PWR reported a 27.8% increase in revenue to $80.4 million and a 38.6% lift in net profit after tax to $5.7 million. Management advised that this was driven by higher volumes across the Motorsports and Aerospace and Defence (A&D) market sectors. PWR’s acting CEO, Matthew Bryson, said: “This result reflects strong revenue performance across Motorsports and Aerospace & Defence, together with the early operating leverage from our new, purpose-built Stapylton facility. The move to a significantly larger and more advanced manufacturing platform is a structural step-change for the business, positioning PWR to capture further growth in these key market sectors while strengthening our position in technically complex, niche advanced cooling markets.”

QBE Insurance Group Ltd (ASX: QBE)

The QBE share price is up 8% to $21.71. This morning, QBE released its full-year results and reported gross written premium growth of 7% to US$23.96 billion and a 21% jump in net profit after tax to US$2.158 billion. QBE’s CEO, Andrew Horton, said: “QBE delivered strong performance in 2025, exceeding our financial plan for the year. Profitability remains attractive across the majority of lines and the year ahead appears constructive for further growth, and a continuation of solid returns.”

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix share price is up 9% to $9.94. Investors have been buying the radiopharmaceuticals company’s shares following the release of its full-year results. Telix posted a 56% increase in revenue to US$803.8 million, which was in line with its upgraded guidance. And while Telix’s adjusted EBITDA was down 41% to US$39.5 million, this is reflective of increased operating expenditure driven by strategic acquisitions, investment in commercial infrastructure, and research and development. Looking ahead, the company is guiding to revenue of US$950 million to US$970 million.

Zip Co Ltd (ASX: ZIP)

The Zip share price is up 2% to $1.89. This has been driven by news that the buy now pay later provider is launching a $50 million on-market share buyback. Zip’s CEO and managing director, Cynthia Scott, said: “Today’s announcement reflects Zip’s disciplined and balanced approach to capital management. The Buy-Back program is consistent with our capital management framework and objective to maximise shareholder value. It demonstrates confidence in the strength of our balance sheet, and long-term strategy. We remain focused on investing in growth and driving sustainable profitability, while also returning surplus capital to shareholders where appropriate.”

The post Why PWR, QBE, Telix, and Zip shares are storming higher today appeared first on The Motley Fool Australia.

More reading

• QBE shares race 7% higher on strong full-year result
• Why are Zip shares rebounding 5% today?
• QBE Insurance posts 2025 profit and dividend increase in FY25
• Recap: Winners and losers from earnings season week 3
• Buy, hold, or sell? Goodman Group, Wesfarmers, Zip shares

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

QBE Insurance Group Ltd (ASX: QBE) shares jumped 7.3% higher to $21.52 during Friday lunch hour trade.

The share price surge comes after the insurance company reported a 21% profit increase for the full year 2025.

Solid jump in profit and premiums

QBE is Australia’s second-largest international insurer. It offers a broad suite of products across personal, commercial, corporate and institutional markets, spanning underwriting and reinsurance.

The ASX financial company delivered a strong FY 2025 performance. It managed to lift statutory net profit after tax about 21% to US$2.16 billion from US$1.78 billion a year earlier, comfortably ahead of market expectations.

Gross written premiums climbed roughly 7% to nearly US$24 billion, reflecting solid rate momentum and broader portfolio growth. The combined operating ratio improved to 91.9%, indicating healthier underwriting margins and a better balance between premiums and claims costs.

Lower catastrophe claims

The combined operating ratio improvement reflects successful portfolio optimisation and lower catastrophe claims, with the net cost from catastrophes at just 4.1% of net insurance revenue, well below the group’s allowance

QBE Group CEO, Andrew Horton said:

Driven by our purpose to enable a more resilient future, 2025 has been a year of meaningful progress for QBE. Underpinned by disciplined execution of our strategic priorities, our efforts to rebalance the portfolio and stabilise performance have delivered tangible improvements, and the business has built strong momentum.

Investment income remained resilient, supporting overall profitability alongside underwriting gains. QBE lifted its full-year dividend by about 25% to $1.09 per share, with a roughly 50% payout ratio, underscoring strong capital generation.

What next for QBE Insurance?

Looking ahead, management reaffirmed guidance for mid-single-digit premium growth and a combined operating ratio of around 92.5% for FY 2026. It’s signalling confidence in continued disciplined execution.

The insurer is doubling down on underwriting discipline and portfolio optimisation, having largely exited its North American non-core book.

Mr Horton commented:

Our Portfolio Optimisation efforts have delivered meaningful change over the last few years. The exit of our North America non-core portfolio progressed well and broadly concluded this year, leaving us with a more focused business with substantially less property catastrophe exposure.

 It also plans to step up investment in digital, cloud and AI to lift efficiency and sharpen underwriting performance.

QBE shares snapshot

In the past year QBE shares have had many ups and downs, with the share price moving roughly between $18 and $24. Since the start of the year the ASX financial stock has found its way up again, gaining 9%.

Over the past 12 months QBE shares increased value with almost 6%. However, they’re still trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

The post QBE shares race 7% higher on strong full-year result appeared first on The Motley Fool Australia.

More reading

• Why PWR, QBE, Telix, and Zip shares are storming higher today
• QBE Insurance posts 2025 profit and dividend increase in FY25
• Are Suncorp or QBE shares a better buy after yesterday’s sell-off?
• ASX 200 financials flew but tech and mining shares faltered last week
• What the stronger Australian dollar means for your shares

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 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.

Amid ongoing strength in the Aussie labour market, should ASX investors brace for further interest rate hikes from the Reserve Bank of Australia?

According to Commonwealth Bank of Australia (ASX: CBA) senior economist Ashwin Clarke, that wouldn’t be a bad idea.

Yesterday, the Australian Bureau of Statistics (ABS) released the latest jobs data. With the number of workers increasing by 17,800 in January, unemployment stayed steady at 4.1%.

However, CBA noted that the trend unemployment rate, which takes out month‑to‑month “noise” to show the underlying direction, declined to 4.1% in January from 4.2% in December.

Following on strong jobs data in December, CBA said the January figures point “to a labour market that remains slightly tighter than the Reserve Bank of Australia (RBA) would prefer”.

As you’re likely aware, earlier this month the RBA lifted interest rates for the first time since November 2023, boosting the official cash rate to the current 3.85%.

“The board has been closely monitoring the economy and judges that some of the increase in inflation reflects greater capacity pressures,” the RBA said at the time.

And the RBA is keeping a close eye on those unemployment figures. “Various indicators suggest that labour market conditions remain a little tight,” the board said in making its 3 February decision to boost interest rates.

A tighter labour market puts upwards pressure on wages and adds fuel to the inflation fire.

What CBA now expects from interest rates

“While the monthly gains in employment look modest, the underlying trend shows the labour market remains a little too tight to bring inflation back to the RBA’s target midpoint,” Clarke said.

The RBA has a mandate to keep inflation with the range of 2% to 3%.

CBA noted that trend employment increased by 24,700 in January, and the trend underemployment rate held steady at 5.9%, close to its lowest level in three decades.

The bank added, “The continued strength in hiring suggests monetary policy may still need to do more work to contain inflation.”

As for what ASX investors should expect from RBA interest rates, Clarke said:

The December print highlighted the risk that the labour market was strengthening at the end of 2025, and [Thursday’s] data confirms that this was the case with a gradual strengthening continuing in early 2026. This strengthening likely reflects the lagged effects of momentum building in the real economy over 2025.

Importantly, this data was before interest rates were increased by 25bps in February, but this will likely be cold comfort for the RBA.

CBA expects the RBA will likely keep rates on hold at its next meeting in March.

As for the May meeting, Clarke said, “The release reinforces our expectation that rates will be increased by the RBA in May and that the risks sit for further rate increases from there.”

Stay tuned!

The post With trend unemployment falling, here’s the latest RBA interest rate forecast from CBA appeared first on The Motley Fool Australia.

More reading

• Recap: Winners and losers from earnings season week 3
• Are ASX bank stocks back in favour after earnings season?
• Why are CBA shares falling today?
• 5 things to watch on the ASX 200 on Wednesday
• 3 high-quality blue-chip ASX shares I would buy right now

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.

The Woodside Energy Group Ltd (ASX: WDS) share price reached an 18-month high of $27.34 in early trading on Friday.

That’s the highest share price for the market’s largest oil and gas company since September 2024.

By comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.1% as the market takes a breather following yesterday’s record high.

Woodside and other ASX oil shares are rising today on fears that US military action in Iran may be imminent.

This could impact the global oil supply because Iran could disrupt oil export shipments along the critical Strait of Hormuz.

More than 20% of global oil and gas exports, mostly from Iran, Iraq, Qatar, and the United Arab Emirates (UAE), pass through the strait.

The strait runs between Iran in the north and Oman and the UAE in the south.

It is the only sea channel linking the Persian Gulf with the Gulf of Oman and the Arabian Sea.

What’s the latest on US-Iran nuclear talks?

US President Donald Trump has set a deadline for Iran to reach a nuclear agreement.

Analysts at Trading Economics said:

Trump signaled that negotiations would likely have no more than 10 to 15 days to advance.

At the same time, the US has deployed its largest military buildup in the Middle East since the 2003 Iraq invasion, raising the prospect of a broader and more sustained operation than last June’s overnight strike on Iran’s nuclear facilities.

The move has heightened the risk of supply disruptions, with investors concerned that a US-Iran conflict could prompt Iran to restrict traffic through the Strait of Hormuz, a critical corridor for crude exports from the region.

Reports indicate US intervention would likely be limited to a one-week campaign.

Israel’s government is hoping for regime change in Iran. 

Oil price rises to a 6-month high

Fears of disruption to the global oil supply sent Brent crude oil futures to a 6-month high above US$71.60 per barrel today.

Brent crude is now on track for a weekly gain of more than 5%.

WTI crude oil futures are trading above US$66.45 per barrel, which is also a 6-month high.

WTI crude is also heading for a weekly gain of more than 5%.

The analysts said the largest drawdown in US crude inventory since early September is adding to today’s bullish market momentum.

Government data shows US crude inventory fell by 9 million barrels last week.

Right now, the Woodside share price is up 0.11% to $27.13 per share.

Meantime, earnings season continues, with Woodside scheduled to release its full-year FY25 results next Tuesday.

The post Why did the Woodside share price just hit an 18-month high? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Monday
• 3 ASX ETFs for investors chasing yield and growth
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Bronwyn Allen 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.

S&P/ASX All Ordinaries Index (ASX: XAO) shares are 0.24% lower at 9,294 points at the time of writing on Friday.

ASX All Ords shares have risen 1.7% over the week as more companies revealed strong earnings results and dividends.

Next week, a large group of ASX shares go ex-dividend. We provide a sample of these stocks below.

To pick up a dividend payment, you must own the share before the ex-dividend date.

ASX shares about to go ex-dividend

Here are 16 ASX shares going ex-dividend next week.

ASX share	Ex-dividend date	Dividend amount	Payment date
Ansell Ltd (ASX: ANN)	23 February	37.5 cents per share	13 March
Suncorp Group Ltd (ASX: SUN)	23 February	17 cents per share	31 March
Hansen Technologies Ltd (ASX: HSN)	23 February	5 cents per share	27 March
Vicinity Centres Ltd (ASX: VCX)	23 February	6.2 cents per share	12 March
Magellan Financial Group Ltd (ASX: MFG)	23 February	39.5 cents per share	10 March
Santos Ltd (ASX: STO)	23 February	14.6 cents per share	25 March
Amcor Plc (ASX: AMC)	24 February	93 cents per share	17 March
AGL Energy Ltd (ASX: AGL)	24 February	24 cents per share	26 March
Challenger Ltd (ASX: CGF)	24 February	15.5 cents per share	24 March
Deterra Royalties Ltd (ASX: DRR)	24 February	12.4 cents per share	24 March
The Lottery Corporation Ltd (ASX: TLC)	25 February	8 cents per share	26 March
Beach Energy Ltd (ASX: BPT)	26 February	1 cent per share	31 March
Pro Medicus Ltd (ASX: PME)	26 February	32 cents per share	20 March
JB Hi-Fi Ltd (ASX: JBH)	26 February	$2.10 per share	13 March
Orora Ltd (ASX: ORA)	27 February	5 cents per share	2 April
AMP Ltd (ASX: AMP)	27 February	2 cents per share	2 April

Which companies are reporting next week?

According to the calendar, we will hear from Adairs Ltd (ASX: ADH), Ampol Ltd (ASX: ALD), and Nib Holdings Ltd (ASX: NHF) on Monday.

On Tuesday, ARB Corporation Ltd (ASX: ARB), Woodside Energy Group Ltd (ASX: WDS), and Monadelphous Group Ltd (ASX: MND) are up.

On Wednesday, we’ll get reports from Bapcor Ltd (ASX: BAP), Domino’s Pizza Enterprises Ltd (ASX: DMP), and Fortescue Ltd (ASX: FMG).

Light & Wonder Inc (ASX: LNW), Wisetech Global Ltd (ASX: WTC), and Woolworths Group Ltd (ASX: WOW) will also report on Wednesday.

On Thursday, Karoon Energy Ltd (ASX: KAR), Monash IVF Group Ltd (ASX: MVF), and Qantas Airways Ltd (ASX: QAN) will release their earnings.

Ramsay Health Care Ltd (ASX: RHC), Super Retail Group Ltd (ASX: SUL), and Worley Ltd (ASX: WOR) will also be in the spotlight.

On Friday, we’ll see reports from Coles Group Ltd (ASX: COL), Star Entertainment Group Ltd (ASX: SGR), and TPG Telecom Ltd (ASX: TPG).

The post 16 ASX shares going ex-dividend next week appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: NAB, Santos, and Suncorp shares
• Buy, hold, sell: Bravura, ASX, Lottery Corporation shares
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Down 12% in 2026, are Suncorp shares undervalued?

Motley Fool contributor Bronwyn Allen has positions in Domino’s Pizza Enterprises and Magellan Financial Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation, Adairs, Domino’s Pizza Enterprises, Light & Wonder Inc, Super Retail Group, The Lottery Corporation, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Adairs, Amcor Plc, NIB Holdings, Super Retail Group, WiseTech Global, and Woolworths Group. The Motley Fool Australia has recommended ARB Corporation, Ansell, Challenger, Domino’s Pizza Enterprises, Light & Wonder Inc, Orora, Pro Medicus, and The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A number of big names released updates this week and Morgans has been busy running the rule over them.

In response, let’s see whether the broker now rates these ASX 200 shares as buys, holds, or sells.

National Australia Bank Ltd (ASX: NAB)

Morgans was pleased with this big four bank’s performance during the first quarter and has upgraded its forecasts to reflect this and its positive outlook.

However, due to its current valuation, the broker has reaffirmed its sell rating with a $37.27 price target. It said:

Like its peers that reported in February, NAB’s 1Q26 trading update showed it is benefitting from a supportive interest rate, credit growth, and asset quality environment. We make upgrades to our forecasts to reflect performance and outlook. 12 month target price set at $37.27/sh. With more aggressive assumptions than previously we estimate a higher fundamental value for NAB. However, the share price is still trading far ahead of this revised estimate. SELL retained, with potential TSR of -17% (including 3.6% cash yield).

Santos Ltd (ASX: STO)

Another big name that Morgans has been looking at is energy giant Santos. Morgans thought the company delivered a solid result given the difficult trading conditions.

However, with its shares trading at fair value, the broker has retained its hold rating and $6.80 price target. It explains:

A solid CY25 earnings result from STO under difficult conditions, with lower commodity prices partly offset by solid cost controls and operating performances. Surprisingly large final dividend versus our estimate, with full year dividend payout equivalent to 86% of earnings and funded majority through debt. FCF was back in positive territory at US$208m, with a FCF breakeven of US$58.90/bbl. Strategic review on non-core assets could see some changes to the portfolio (Cooper, WA, Narrabri all being reviewed). We maintain a HOLD rating and A$6.80 target price.

Suncorp Group Ltd (ASX: SUN)

This insurance giant posted a sharp decline in profits during the first half due to unfavourable weather conditions. And while Suncorp also downgraded its guidance for FY 2026 slightly, Morgans remains positive.

It has retained its accumulate rating with a $17.01 price target. It said:

SUN’s 1H26 NPAT (A$263m) was well down on the pcp ($1.1bn) due to bad weather, but it was only -2% below consensus ($268m). Overall, we saw this as a reasonable result, albeit similar to key peer IAG, SUN did deliver a mild downgrade to FY26 top-line growth guidance. We make relatively nominal changes to our SUN FY26F/FY27F EPS of -2%/+1% on a review of our earnings assumptions. Our PT is reduced to A$17.01 (previously A$19.28). With >10% upside to our valuation, we maintain our Accumulate rating on SUN.

The post Buy, hold, sell: NAB, Santos, and Suncorp shares appeared first on The Motley Fool Australia.

More reading

• 16 ASX shares going ex-dividend next week
• Recap: Winners and losers from earnings season week 3
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Down 12% in 2026, are Suncorp shares undervalued?

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.

The S&P/ASX 200 Index (ASX: XJO) is down 0.3% today, despite the best lifting efforts of two ASX 200 gold stocks.

Ramelius Resources Ltd (ASX: RMS) shares are up 0.2% in late morning trade at $4.52 each. That sees the Ramelius Resources share price up 71.9% over 12 months, smashing the 9% one-year gains posted by the ASX 200.

Perseus Mining Ltd (ASX: PRU) shares are enjoying an even stronger run today. Perseus Mining shares are changing hands for $5.91 apiece, up 4.4%. Perseus Mining shares have gained 104.1% in 12 months.

Here’s what’s happening with the ASX 200 gold stocks today.

Ramelius Resources shares in the green on earnings boost

Ramelius shares are outperforming today following the release of the miner’s half-year results for the six months to 31 December (H1 FY 2026).

The ASX 200 gold stock reported record first-half underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $347.7 million, up 13% year on year.

Operating cash flow of $311.6 million was down 3% from H1 FY 2025.

And on the bottom line, the miner’s underlying net profit after tax (NPAT) slipped 6% year on year to $160 million.

On the passive income front, management declared a fully-franked interim dividend of 3 cents per share, in line with last year’s interim payout.

As at 31 December, Ramelius held cash and bullion of $694.3 million, down 14% since the end of June.

Commenting on the results, Ramelius managing director Mark Zeptner said:

It is pleasing to be able to report such strong financial results in what remains a transitional period for Ramelius following the combination with Spartan last year. Operationally, performance was in line with our expectations highlighted in the 5-Year Growth Pathway released in October 2025…

The company’s current growth projects, including the development of the Never Never underground at Dalgaranga and the Mt Magnet processing plant upgrades, are progressing well with first ore from Never Never delivered to Mt Magnet this week and engineering / early site works underway for the plant upgrade.

Which brings us to…

ASX 200 gold stock lifts on doubled dividend

Perseus Mining also reported its half-year results this morning.

Revenue for the six months came in at US$608.5 million, up 5% year on year.

But the ASX 200 gold stock saw earnings and profits slip from H1 FY 2025.

EBITDA of US$315.5 million was down 10.5%, while profit after tax of $185.5 million declined by 7.8%.

Perseus reported operating cash flow of US$193.4 million for the half year, and held net cash and bullion of US$755 million as at 31 December.

Management declared an unfranked interim dividend of 5 Aussie cents per share. That’s up 100% from last year’s interim payout.

Looking at what could impact the ASX 200 gold stock ahead, the Aussie gold miner reaffirmed its full-year FY 2026 market guidance of 400,000 to 440,000 ounces of gold production at an all-in sustaining cost (AISC) of US$1,600 to US$1,760 per ounce.

“As we have flagged, the first half of 2026 reflected a period where our mine sites transitioned into new mining areas along with significant advancement of our capital growth projects,” Perseus CEO Craig Jones said.

Jones added:

With a strong balance sheet, high-margin operations, and a clear growth path, we believe we are well-positioned to continue delivering long-term value for our shareholders.

The post 2 ASX 200 gold stocks outperforming on big news on Friday appeared first on The Motley Fool Australia.

More reading

• Ramelius Resources delivers first Never Never ore, cuts major gold hedges
• These 3 ASX gold stocks jumped 100% in a year. Is there more upside ahead?
• 5 things to watch on the ASX 200 on Tuesday
• 3 ASX mining shares to buy: brokers
• 5 things to watch on the ASX 200 on Tuesday

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.

When I talk about shares trading at a discount, I’m not always referring to low price-to-earnings (PE) ratios.

Sometimes the discount is relative to long-term growth potential. Sometimes it reflects temporary uncertainty. And sometimes it’s simply the result of sentiment getting ahead of fundamentals.

Right now, I believe three quality ASX 200 names fit that description: Xero Ltd (ASX: XRO), Treasury Wine Estates Ltd (ASX: TWE), and Catapult Sports Ltd (ASX: CAT).

Xero shares

Xero isn’t conventionally cheap. It still trades on a premium multiple compared to the broader market. But I think the market may be underestimating its long-term growth engine.

The accounting software company has been caught up in global tech weakness and concerns around AI disruption. There are also ongoing debates around its US expansion and the integration of major acquisitions.

But when I look at the core business, I see strong subscriber growth, improving margins, and increasing operating leverage as scale builds.

Xero’s ecosystem is deeply embedded in small and medium-sized businesses and accounting firms. Switching costs are meaningful. Integrations with payroll, payments, and other tools reinforce stickiness.

In my view, this is not a fragile growth story. It’s a global platform still expanding into a large addressable market. If execution remains solid, I think today’s valuation could look conservative over a five- to ten-year horizon.

That’s why I see it as trading at a discount to its long-term potential, even if the headline multiple doesn’t scream cheap.

Treasury Wine Estates shares

Treasury Wine Estates is a more obvious discount candidate.

The share price has been hit hard over the past year, reflecting softer demand, inventory challenges, and uncertainty in key markets. Investor confidence has clearly taken a knock.

But I believe the market may be pricing in too much pessimism.

This ASX 200 share owns a portfolio of premium wine brands with strong global recognition. While earnings can be cyclical and sensitive to consumer demand, brand strength and distribution scale provide long-term value.

In my view, this looks less like a permanently impaired business and more like a cyclical downturn that has been heavily punished. If its new management team executes on its strategy and demand normalises, the re-rating potential could be meaningful.

Catapult Sports shares

Catapult is another stock that isn’t cheap on traditional valuation metrics. But I think it may be undervalued relative to what it could become.

The company provides performance analytics and wearable technology to professional and collegiate sports teams globally. Its platform spans coaching, scouting, athlete monitoring, and analytics.

What I find compelling is the scalability of the model. Recurring software revenue is growing, margins are expanding, and the company has been pushing toward the coveted Rule of 40 profile, where growth plus profitability exceed 40%.

Catapult operates in a niche with limited direct competition at scale. As more teams adopt data-driven decision-making, the addressable market remains significant.

If revenue continues compounding at strong double-digit rates and margins expand as expected, today’s valuation may understate the earnings power of the business three to five years from now.

Foolish takeaway

Discounts don’t always show up in a simple multiple. Sometimes they appear when sentiment is weak. Sometimes when growth is misunderstood. And sometimes when the market focuses on short-term noise instead of long-term opportunity.

I believe Xero, Treasury Wine Estates, and Catapult Sports each fit that description right now. None are without risk. But for investors willing to think beyond the next quarter, I think these quality ASX 200 shares are trading below what they could ultimately be worth.

The post Why I think these quality ASX 200 shares are trading at a discount appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: BHP, SEEK, and Treasury Wine shares
• Here are the top 10 ASX 200 shares today
• These 2 ASX 200 stocks crashed yesterday – should investors swoop in?
• 3 ASX ETFs to target if you anticipate a tech turnaround 
• 3 ASX growth shares that could rebound hard in 2026

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 Catapult Sports, Treasury Wine Estates, and Xero. The Motley Fool Australia has positions in and has recommended Catapult Sports, Treasury Wine Estates, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Paladin Energy Ltd (ASX: PDN) are in a trading halt on Friday after the uranium producer requested a pause just before market open.

The company’s shares last traded at $13.23 on Thursday’s close. Even amid recent volatility in the uranium sector, Paladin shares are up almost 40% year to date.

According to the ASX notice, trading will remain halted pending the release of an announcement. The update relates to an approval in relation to the Patterson Lake South (PLS) Project in Canada.

Unless released earlier, trading is expected to resume by Tuesday, 24 February.

Here’s what we know.

Halt linked to Canadian project approval

Paladin has not provided additional details on the nature of the approval. However, the reference to the PLS project in Saskatchewan suggests the announcement could relate to a regulatory or development milestone.

The PLS asset is seen as a potential long-term growth project for the company. Any material approval could influence development timelines, funding requirements, or future production expectations.

The halt will remain in place until the announcement is released or normal trading resumes next week.

Recent results showed strong momentum

Earlier this month, Paladin released its December 2025 half-year results to the market.

For the 6 months ended 31 December 2025, the company reported:

• U3O8 sold: 1.96 million pounds

• Average realised price: US$70.5 per pound of uranium

• Sales revenue: US$138.3 million

• Gross profit: US$26.0 million

• Loss after tax: US$6.6 million

The result shows production at the Langer Heinrich Mine in Namibia is continuing to increase after its restart. Although the company is still reporting a net loss, higher revenue and gross profit suggest sales volumes are improving, helped by firm uranium prices.

Paladin finished the period with US$121 million in cash and total liquidity of US$278 million. This position was strengthened by a recent equity raising and share purchase plan.

What investors will be watching

The Patterson Lake South project is viewed as a key growth asset for Paladin over the long term.

Uranium prices remain well above levels seen in recent years. At the same time, governments are backing nuclear energy as part of their decarbonisation plans, so any project approval could lift Paladin’s future production outlook.

Investors will want details on exactly what has been approved and how it affects development timing, funding needs, and expected output.

Foolish Takeaway

Paladin shares have rallied strongly in 2026, supported by improving uranium fundamentals and better operational performance.

With trading suspended, attention now turns to what the PLS decision means for Paladin’s next stage of development.

The post Paladin share price on ice pending major announcement appeared first on The Motley Fool Australia.

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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.

Shares in Inghams Group Ltd (ASX: ING) have tumbled 13% on Friday (at the time of writing) after the poultry producer reported sharply lower interim earnings and downgraded its full-year guidance.

While management flagged a stronger second half, investors appeared focused on the scale of the first-half earnings decline and elevated leverage.

What did Inghams report?

Inghams delivered revenue of $1.61 billion for the 26 weeks to 27 December 2025, broadly flat year on year.

However, profitability deteriorated significantly. EBITDA fell 33.8% to $139.2 million, while net profit after tax (NPAT) slumped 64.9% to $18.1 million.

On an underlying pre-AASB 16 basis, EBITDA was $80.6 million, down 35% on the prior corresponding period. Underlying NPAT pre AASB 16 fell 60.4% to $21.3 million.

Core poultry volumes declined 0.7% year on year, although net selling prices increased 1.4%, partly offsetting the volume weakness.

The board declared a fully-franked interim dividend of 4 cents per share, down from 11 cents in the prior period.

What else do investors need to know?

The earnings decline was driven primarily by higher operating costs in Australia.

Key cost headwinds included excess inventory management ($19 million), incremental supply chain and logistics costs ($6.7 million), lower farming performance ($3.8 million), and transition inefficiencies at Ingleburn ($1.8 million).

Total costs rose 5% versus the prior period, reflecting both these operational pressures and broader inflation across labour, ingredients, utilities, and packaging.

Encouragingly, inventory levels declined by $24.3 million during the half, supporting a return to normalised production settings into the third quarter.

Cash conversion improved to 113.1%, driven by working capital improvements, but net debt increased to $466.1 million. Leverage rose to 2.4x underlying EBITDA pre AASB 16, above the company’s target range of 1 to 2 times.

What did management say?

CEO Ed Alexander described the first-half result as “disappointing,” citing higher operational costs and inefficiencies associated with supply chain changes and customer onboarding.

He said inventory levels had returned to desired levels and that measures were in place to restore unit cost performance through the second half, including supply chain stabilisation and improved planning.

What’s next for Inghams?

Inghams reduced its FY26 underlying EBITDA pre AASB 16 guidance to $180 to $200 million, down from $215 to $230 million previously.

Management expects earnings to be weighted to the second half, with improved production settings, stabilised supply chains, and stronger wholesale pricing supporting a rebound into FY27.

Share price snapshot

After today’s result, Ingham shares are now down 16% so far in 2026 and down 35% over the last 12 months.

The post Inghams shares plunge 13% as earnings slump and FY26 guidance cut appeared first on The Motley Fool Australia.

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Motley Fool contributor Kevin Gandiya has no positions 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.