Tag: Stock pick

On Thursday, the S&P/ASX 200 Index (ASX: XJO) was back on form and raced higher. The benchmark index rose 1.25% to 8,552.7 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set to give back yesterday’s gains on Friday following a poor night in the United States. According to the latest SPI futures, the ASX 200 is expected to open 134 points or 1.55% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.45%, the S&P 500 is 1% lower, and the Nasdaq is tumbling 1.5%.

Oil prices fall

It could be a poor finish to the week for ASX 200 energy shares such as Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 0.5% to US$59.14 a barrel and the Brent crude oil price is down 0.4% to US$63.27 a barrel. Ukraine-Russia peace talks appear to be behind this.

Annual general meetings

The annual general meetings continue on Friday with another group of ASX 200 shares holdings their events for 2025. This includes fashion jewellery retailer Lovisa Holdings Ltd (ASX: LOV), logistics solutions technology company WiseTech Global Ltd (ASX: WTC), and gold miner Regis Resources Ltd (ASX: RRL). It is possible that trading updates could be released before they hold their respective events.

Gold price falls

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued finish to the week after the gold price fell overnight. According to CNBC, the gold futures price is down 0.35% to US$4,069 an ounce. The was driven by strong US economic data, which has reduced the likelihood of a rate cut next month.

Hold QBE shares

QBE Insurance Group Ltd (ASX: QBE) shares are fairly valued according to analysts at Bell Potter. This morning, the broker has retained its hold rating and $21.20 price target on this insurance giant’s shares. It said: “We have not changed our assumptions and any change to our forecasts is driven by changing fx rates (we use spot rates as a forecast). We will review our forecasts post the Q3 update, noting the upside with the shares below $20/sh. For now, we maintain our target price at $21.20/sh and keep our HOLD recommendation.”

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

More reading

• 3 ASX shares I’d buy with $20,000 today
• Here are the top 10 ASX 200 shares today
• What I’d buy if I had to invest $20,000 in ASX 200 shares before the weekend
• Wisetech share price a ‘highly attractive opportunity’ after sell-off: fundie
• Charter Hall upgrades FY26 earnings guidance amid strong property momentum

Motley Fool contributor James Mickleboro has positions in Lovisa and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Lovisa. 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) closed 1.24% higher on Thursday afternoon. It was a welcome reprieve for investors after this week’s sell-off. Over the past month the index is now down 5.96% and for the year it is 2.76% higher.

While the index rebounded yesterday, there are still some ASX 200 stocks I’m going to steer clear of next week.

Droneshield Limited (ASX: DRO)

It’s been a big week for the AI-drone operator. Yesterday, its shares closed 4.06% lower at $1.89 a piece. The latest decline marks a nearly 60% decline over the past month wiping a big chunk of the company’s impressive annual gains. Thankfully the shares are still trading nearly 160% higher than this time last year.

I still believe that the sharp sell-off of Droneshield shares is more about investor sentiment than a risk of overpricing or issues with the core business. The company also has robust growth plans ahead. But this week’s flurry of company announcements, I’m staying clear until the dust has settled.

In a short statement to the ASX on Wednesday morning, the company said Matt McCrann, who joined the company in 2019 and who had been the US CEO since 2022, “has resigned from the business, effective immediately”. There was no explanation for his departure.

The company also responded to an ASX Aware Letter this week. Droneshield was asked to explain recent share sales and the accidental release, and retraction, of a $7.6 million contract mistakenly announced as new.  

Helia Group Ltd (ASX: HLI)

The Helia share price closed 0.17% lower on Thursday afternoon, to $5.86. Over the past month the shares have climbed 5.59% and over the year they’re now an impressive 34.10% higher. 

But, in a note to investors yesterday, analysts at Macquarie said they think the stock is about to start nosediving. The broker confirmed its underperform rating on Helia shares and reduced its target price to $3.95 per share. At the time of writing, this implies around 32% downside for investors over the next 12 months. 

“While conditions are supportive near-term, at current valuations (~1.6x P/NTA), investors are both overpaying for the potential of capital returns, and have priced in favourable conditions indefinitely. Maintain Underperform,” the broker said.

New Hope Corporation Ltd (ASX: NHC)

New Hope finished 0.5% lower yesterday to close at $4.02. The shares have climbed 3.61% over the past month but it’s not enough to make up for the 15.19% slump over the year. 

The latest decline follows the Australian thermal coal miner’s quarterly production and earnings update earlier this week. New Hope achieved a 7.1% increase in saleable coal production and a 15.5% rise in underlying EBITDA, with coal sales and prices also improving. But the results were lower than market expectations. Analysts weren’t pleased that the ASX 200 miner missed FY26 guidance. 

Analysts overall seem divided about the stock. Ratings are split between buys, holds and strong sells and the average target price is $3.87, which represents nearly 4% downside for investors, according to Tradingview data at the time of writing.

The post 3 ASX 200 shares I’m avoiding next week appeared first on The Motley Fool Australia.

More reading

• Why DroneShield, GQG Partners, Origin Energy, and Worley shares are falling today
• DroneShield directors’ share sales and contract error: What investors need to know
• Guess which ASX 200 stock is tipped to plummet 32%?
• Why Ausgold, DroneShield, EML, and TPG shares are falling today
• DroneShield loses its US chief executive, sending its shares plunging

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 DroneShield. 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 300 Index (ASX: XKO) closed up a heady 1.26% on Thursday, with one ASX 300 stock racing ahead of those gains.

The fast-rising stock in question is agricultural chemical and seed technology company Nufarm Ltd (ASX: NUF).

Nufarm shares closed up 8.02% yesterday, trading for $2.56 apiece. This marked the second day of stellar gains for the ASX 300 stock, with Nufarm shares closing up 10.8% on Wednesday.

That big boost followed on Wednesday morning’s release of Nufarm’s full-year FY 2025 results. And it now sees Nufarm shares up 24.88% since 7 November’s closing bell.

Despite those strong gains, the Nufarm share price remains down 27.68% year to date.

But looking to the year ahead, the analysts at Macquarie Group Ltd (ASX: MQG) expect further gains from the agricultural company.

Here’s why.

Macquarie lifts price target for ASX 300 stock

In FY 2025, Nufarm reported underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $302.5 million. While that was down 3% from FY 2024, investors were clearly pleased with the result following on a weak first-half (H1 FY 2025) report.

Nufarm’s Crop Protection segment performed strongly, with underlying EBITDA up 18% year on year. Earnings from the company’s Seed Technologies business, however, plunged 78%. That was driven by losses in Omega-3, impacted by a decline in fish oil prices.

Looking ahead, the ASX 300 stock expects to post earnings growth in FY 2026.

And the team at Macquarie believe that’s achievable.

The broker noted:

Positive FY26 outlook for strong EBITDA growth (we forecast 25% EBITDA growth to $377m). This includes ongoing solid growth in Crop Protection driven by + mix and stronger vols. Agchem prices showing some improvement off a low base and same for fish oil prices.

Nufarm’s management also said they expect earnings growth to see the company’s leverage come down to 2.0 gearing level by end of FY 2026.

Commenting on the Nufarm’s debt outlook, Macquarie said:

NUF sees path back to 2.0x gearing range in FY26 (2.7x in FY25) as passed peak capex (<$200m in FY26 or -c$50m vs pcp), less Omega 3 cash drag (not producing new crop in FY26 and selling out of existing inventory) and cost saves targeting $50m benefits. 1H26 net debt to increase seasonally back to 1H25 levels but with lower gearing (we fct 3.9x 1H26e vs 4.5x pcp) and then it’s all about delivery in key 2H26 period.

With this in mind, Macquarie maintained its neutral rating on the ASX 300 stock. But the broker did raise its 12-month price target to $2.77, up from the prior $2.55 a share.

That’s more than 8% above Thursday’s closing price.

The post Up 26% in 2 weeks, here’s Macquarie’s upgraded price target for this resurgent ASX 300 stock appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday
• Why Nufarm, Nuix, Silver Mines, and Webjet shares are roaring higher today

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 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.

Fortescue Ltd (ASX: FMG) shares were once a sizeable part of my portfolio, but I recently sold my last holdings in the ASX mining share.

This year has been rough for the ASX mining share, as the chart below shows. But, I’m pleased I was able to sell at a good price and move on to businesses I’m more optimistic about.

I originally bought Fortescue shares (at a low price) when there were significant concerns about the iron ore sector due to slowing demand from China, which buys a large majority of the iron ore exported from Australia.

When demand drops (or supply increases), it can lead to a decline in the iron ore price. That situation can create a good time to buy.

But a key driver of my original investment was also based on the company’s green energy goals.

Why I decided to sell out of Fortescue shares

A few years ago, the company outlined its plans to become a major producer of green hydrogen and green ammonia, positioning itself to diversify its earnings and tap into what seemed to be a promising area for long-term growth. It even signed a few customers for green hydrogen.

However, things have changed a lot since the early 2020s.

While the US may have been a key driver of a possible green energy future under President Biden, there has been a clear shift in the last year (or longer) in some areas of the world.

Rising inflation seemed to mean climate action became less important for households, politicians, and businesses. President Trump’s win also changed the energy focus of the world’s biggest economy.

Fortescue’s priority now seems to be decarbonising its own operations. That’s probably a prudent move, but the step down in ambitions about green energy production reduced my interest in the business’ long-term prospects.

The other reason I decided to sell Fortescue shares was that the iron ore supply and demand relationship no longer looks as appealing as it once did.

China’s economy is not firing, and with US tariffs on the country, I’m not sure how strongly it’s going to perform in the foreseeable future. Plus, major iron ore miners are trying to increase production, adding to the supply side of the equation. The new Simandou project in Africa, in particular, could be a headwind for the iron ore price, unless Chinese demand surprises positively.

Taking all of the above into account, I thought the higher Fortescue share price would be a good time to offload shares.

If the iron ore price and Fortescue share price were to sink in the short term, I may see it as an opportunistic turnaround idea, but it’s not at the top of my watchlist.

Valuation

Based on the forecasts from Commsec, the Fortescue share price is valued at 14 times FY26’s estimated earnings, with a possible grossed-up dividend yield of 6.5%, including franking credits, at the time of writing.

The post I was a huge fan of Fortescue shares, then this happened… appeared first on The Motley Fool Australia.

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

Blackwattle portfolio managers, Tim Riordan and Michael Teran, reckon Pilbara Minerals Ltd (ASX: PLS) is the lithium star of the ASX.

In their latest bulletin, Riordan and Teran said the market’s largest pure-play lithium share has “material upside” ahead.

Let’s hear more from them.

ASX lithium shares on a roll lately

ASX lithium shares have been outperforming due to rising commodity prices.

Several ASX lithium shares have set new 52-week highs, including Pilbara Minerals, which soared to $4.26 per share this week.

Riordan and Teran said Pilbara Minerals was among the best performers within their Mid-Cap Quality Fund last month.

The Pilbara Minerals share price ripped 31% in October alone.

The managers said:

PLS rallied 31% in October, as PLS delivered an exceptional quarterly production and lithium prices rallied ~18% in October, as the supply / demand dynamic becomes more balanced.

PLS is the 100% owner-operator of relatively low-cost, long-life spodumene mines. PLS also has a strong net cash balance sheet, which provides flexibility and a competitive advantage to indebted peers.

Lithium commodity prices have lifted significantly over the past month.

The Spodumene Concentrate Index (CIF China) Price rose 2.85% overnight to US$1,117 per tonne — up by more than 30% in a month.

While lithium prices have been in a multi-year bear market, prices appear to have bottomed out in recent months; supply is now
constrained by uneconomical prices but at the same time demand continues to grow healthily.

Lithium prices will continue to be volatile but if demand remains strong, we expect further recovery in lithium prices over 2026.

We continue to see material upside for PLS as an ‘improving quality’ business and view PLS as the highest quality, lithium miner on the ASX.

The managers said the company’s September quarter production report was outstanding.

What did Pilbara Minerals report?

Pilbara Minerals reported a 2% increase in spodumene production and a 20% increase in realised pricing.

This led to a 30% spike in revenue to $251 million.

The lithium miner also reduced its unit operating cost by 13%, enhancing cash margins.

Riordan and Teran said:

PLS is finally seeing the benefits from the P1000 expansion, and cements PLS’s position as the best-in-class lithium spodumene operator.

PLS is extremely well placed to benefit from any further recovery in lithium prices, with strong operations and significant production growth optionality, allowing for continued shareholder value creation through the cycle.

ASX lithium shares are benefiting from rising lithium prices, driven by strong demand for the metal to power batteries and support new infrastructure, as well as new government support for the electric vehicle industry in China.

Pilbara Minerals share price snapshot

The Pilbara Minerals share price is up 91.32% in the year to date compared to a 4.82% lift for the S&P/ASX 200 Index (ASX: XJO).

The ASX lithium share closed trading at $4.19 on Thursday, up 5.28%.

The post Which ASX lithium share is the ‘highest quality lithium miner on the ASX’? appeared first on The Motley Fool Australia.

More reading

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• Brokers say Mesoblast, NAB, and Pilbara Minerals shares are sells
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• ASX lithium shares outperform as ASX 200 tumbles to four-month low

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.

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

Three years ago, OpenAI’s ChatGPT hadn’t even launched. Today, it is the leading software service in the multibillion-dollar generative artificial intelligence (AI) industry.

Nvidia (NASDAQ: NVDA) also plays a massive role in that arena. But with its shares up by more than 1,000% over the last three years, investors have to wonder how much growth potential is left for the chipmaker. Could it still be a compelling long-term buy?

Nvidia’s stock is surprisingly reasonable

With a market cap of $4.63 trillion, Nvidia is the largest company in the world. And investors could be forgiven for assuming it’s trading at sky-high multiples that are detached from its fundamentals.

But that isn’t the case. With a forward price-to-earnings (P/E) multiple of just 28, Nvidia stock has a surprisingly reasonable valuation compared to the Nasdaq-100‘s average of 26, particularly when considering its explosive top- and bottom-line growth rates.

In the second quarter, its revenue soared 56% year over year to $46.7 billion, driven by strong sales in its data center segment, where the company designs and sells the cutting-edge AI chips most commonly used to train and power large language models (LLMs). Despite selling physical products, it boasts a software-esque gross margin of 72.2%, which shows that its chips continue to be well differentiated from the competition because of factors like CUDA, the proprietary software platform that helps developers program its chips for specific tasks.

Investors can compare this to the way Apple synergizes its iOS with its iPhones to make them work better together, and tries to create a walled garden of services and apps that makes it harder for users to leave the ecosystem for alternative hardware, even if rival devices have comparable raw technical stats.

Nvidia’s economic moat gives it immense pricing power, which flows straight to its bottom line. Second-quarter earnings per share jumped 61% year over year to $1.08, and analysts expect more growth in the future.

What could go wrong? 

Nvidia’s CUDA platform and its cutting-edge chip design have combined to secure it a dominant position in the market for generative AI hardware. And its customers continue to spend eye-popping sums on its wares. According to The New York Times, big tech’s data center buildout is actually accelerating, with Alphabet, Microsoft, and Amazon spending a combined $112 billion on capital expenditures over the last three months alone. Much of that cash went to Nvidia’s high-priced AI chips for data centers.

On the surface, it looks like everything is great. Nvidia has a strong economic moat, its customers remain willing to buy its products, and its valuation remains incredibly low compared to its earnings growth. What could go wrong?

The short answer is the technology itself. Right now, generative AI doesn’t seem to be commercially viable on a large scale because of challenges with LLM accuracy and the immense costs needed to run and train the algorithms. (Nvidia’s high prices play a role in inflating costs throughout the industry.)

The losses are getting hard to ignore. For example, ChatGPT creator OpenAI expects to lose $9 billion this year on $13 billion in revenue, a burn rate of around 70% of sales. Losses are expected to increase as it scales up its operations.

It is normal for growth companies (and by extension, industries) to generate losses when they are in their early expansion phases, but the AI buildout seems to be based on some core assumptions that may not materialize. There is actually no guarantee that today’s generative AI systems will evolve into more useful forms like artificial general intelligence (AGI), which is a currently theoretical technology that would be able to solve problems and learn without human input.

Many analysts are already arguing that LLMs’ development may be reaching a point of diminishing returns. And if the technology doesn’t become dramatically more useful, Nvidia’s customers may begin to rethink the vast amount of resources they are committing to their infrastructure budgets.

What do the next three years have in store?

With its relatively low valuation and strong customer demand, Nvidia stock looks unlikely to crash anytime soon. But it’s also hard to get excited about it as an investment now, considering the extreme hype and lack of profitability on the consumer side of the AI industry.

In light of all that, Nvidia stock looks to me like a hold for now. And investors who already own shares should consider taking some profits.

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

The post Where will Nvidia stock be in 3 years? 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

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• 5 things to watch on the ASX 200 on Thursday
• Nvidia and Microsoft land a multibillion-dollar Anthropic partnership. Which stock benefits most?
• US stocks will underperform over next decade: Goldman Sachs
• Is Palantir’s deal with Nvidia a game changer?

Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Microsoft, and Nvidia. 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 Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One of the biggest advantages Australian investors have today is the ability to build a globally diversified portfolio using just a few exchange traded funds (ETFs).

Instead of researching dozens of individual stocks or trying to predict which region will outperform next, you can buy broad, low-cost funds that give you instant exposure to thousands of businesses around the world.

If you’re aiming to grow long-term wealth beyond the ASX, the three simple ETFs listed below, each offering a different type of global exposure, could form the backbone of a high-quality portfolio.

Vanguard All-World ex-US Shares ETF (ASX: VEU)

To build genuine global diversification, it makes sense to start with an ETF that captures markets outside the United States, and the Vanguard All-World ex-US Shares ETF is one of the most comprehensive funds available. It holds thousands of stocks across Europe, Asia, Canada, Latin America, and emerging markets, giving investors exposure to a broad range of economies and industries.

This ASX ETF’s top holdings include Alibaba (NYSE: BABA), Toyota Motor Corporation (TYO: 7203), HSBC (NYSE: HSBC), Tencent Holdings (SEHK: 700), and Astra Zeneca (LSE: AZN). These companies offer exposure to global consumer goods, industrials, finance, Asian technology, and healthcare.

By including this fund, investors gain access to regions that often move independently of US and Australian markets, helping smooth long-term returns.

iShares S&P 500 ETF (ASX: IVV)

For exposure to the world’s most powerful companies, the iShares S&P 500 ETF is one of the strongest options on the ASX. It tracks the S&P 500 index, giving investors a slice of America’s top businesses.

The portfolio includes giants such as Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), Alphabet (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Johnson & Johnson (NYSE: JNJ), and Walmart (NYSE: WMT). These companies lead the world in cloud computing, artificial intelligence, e-commerce, pharmaceuticals, and consumer staples.

By owning this ASX ETF, investors gain exposure to growth engines that simply don’t exist on the ASX at the same scale.

BetaShares Global Quality Leaders ETF (ASX: QLTY)

Finally, for investors who want to tilt their global portfolio toward quality, the BetaShares Global Quality Leaders ETF is worth a look.

It adds exposure to 150 elite stocks with strong balance sheets, high returns on capital, and durable competitive advantages.

Its holdings include Visa (NYSE: V), ResMed (ASX: RMD), LAM Research (NASDAQ: LRCX), Costco Wholesale (NASDAQ: COST), and Adobe (NASDAQ: ADBE). These companies have long track records of consistent earnings, strong pricing power, and leadership positions in their respective markets.

This fund was tipped by analysts at Betashares as one to consider buying.

The post The best ASX ETFs to buy for global investing in 2026 appeared first on The Motley Fool Australia.

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HSBC Holdings is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Alphabet, Amazon, Costco Wholesale, Lam Research, Microsoft, Nvidia, ResMed, Tencent, Visa, Walmart, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group, AstraZeneca Plc, HSBC Holdings, and Johnson & Johnson and has recommended the following options: long January 2026 $395 calls on Microsoft, long January 2028 $330 calls on Adobe, short January 2026 $405 calls on Microsoft, and short January 2028 $340 calls on Adobe. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Adobe, Alphabet, Amazon, Lam Research, Microsoft, Nvidia, Visa, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Macquarie says this ASX 200 stock can rise 150%
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, HMC Capital, Netwealth Group, and Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Netwealth Group and Pinnacle Investment Management Group. The Motley Fool Australia has recommended HMC Capital and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I suddenly had $20,000 that needed to be invested before the weekend, I wouldn’t overthink it. In markets like this, the smartest approach is to focus on high-quality ASX shares with strong competitive advantages, recurring revenue, and long runways ahead of them.

Three names that immediately spring to mind are listed below. Here’s why they could be top picks for these funds:

Life360 Inc. (ASX: 360)

If I wanted exposure to a global technology business with explosive growth potential, Life360 would be close to the top of the list. The company already has more than 90 million monthly active users worldwide and continues to grow rapidly as families adopt its location-sharing, safety, and emergency features.

What makes Life360 compelling is its subscription-based model, which has turned the business into a recurring revenue machine. Average revenue per paying subscriber keeps rising, churn is falling, and its bundled product strategy is strengthening customer loyalty.

Life360’s scale also gives it a significant data advantage, which is something competitors can’t easily replicate. As the company pushes deeper into premium features, new markets, and integrations with connected devices, it is not hard to imagine much larger revenue potential over time.

Bell Potter has a buy rating and $52.50 price target on its shares.

REA Group Ltd (ASX: REA)

If I had to deploy part of my $20,000 into a blue-chip compounder, REA Group would be an easy choice. As the leading digital property platform in Australia, it benefits from extraordinary pricing power, strong network effects, and a dominant competitive position.

Even during slower patches of the housing cycle, REA is able to deliver impressive revenue and earnings growth thanks to depth products, improved listings quality, and premium advertising options. And when the real estate market strengthens, as it is expected to when interest rates fall, REA’s earnings tend to accelerate.

Beyond Australia, REA also holds strategic overseas investments, including in India, where digitisation of the property market is still in early innings. Overall, for a mix of stability, growth, and structural tailwinds, REA could be one of the strongest long-term holdings on the ASX.

Morgan Stanley has an overweight rating and $290.00 price target on its shares.

WiseTech Global Ltd (ASX: WTC)

To round out the portfolio, I would add logistics software provider WiseTech Global. Its flagship product, CargoWise, is used by the world’s largest freight forwarders and logistics companies to manage global supply chains.

The beauty of WiseTech’s business is its powerful combination of mission-critical software, long customer contracts, and exceptionally high switching costs. Once a logistics provider adopts CargoWise, replacing it is both expensive and operationally risky, which gives WiseTech enormous pricing leverage and predictability.

And while it has been having issues this year with management conduct and product delays, its long-term outlook remains as positive as ever.

Morgans remains very bullish. It has a buy rating and $127.60 price target on its shares.

The post What I’d buy if I had to invest $20,000 in ASX 200 shares before the weekend appeared first on The Motley Fool Australia.

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• These ASX 200 blue chip shares could rise 25% to 40%
• Analysts name 3 ASX 200 titans to buy today
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Motley Fool contributor James Mickleboro has positions in Life360, REA Group, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and WiseTech Global. The Motley Fool Australia has positions in and has recommended Life360 and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The WiseTech Global Ltd (ASX: WTC) share price is $64.78, up 3% while the S&P/ASX 200 Index (ASX: XJO) is up 1.16%.

Wisetech shares hit a 52-week low of $61.49 this week.

Last month, the market’s biggest ASX tech share lost almost a quarter of its market cap.

This followed news of an investigation by the Australian Federal Police and the Australian Securities and Investments Commission.

The AFP and ASIC are looking into share trades by founder Richard White during a blackout window.

Blackwattle portfolio managers, Tim Riordan and Michael Teran, said:

While this is a distraction, we believe the refreshed board (3 new independent directors) and new management team (new CEO and CFO) is a step in the right direction towards improving governance and reducing key person risk.

In their latest bulletin, Riordan and Teran described the sell-off as “overdone”.

They noted that the Wisetech share price had lost more than 40% since the company released its FY25 results in August.

Looking ahead, though, the analysts think the outlook for the business is bright, commenting:

We remain confident that the FY27 and beyond outlook remains robust, and the selloff in the share price is a highly attractive opportunity, with WTC trading below 20x EV/EBITDA for FY27, well below its historical multiple of ~45x EV/EBITDA.

Riordan and Teran have confidence in the company’s products and its potential for growth.

They said Wisetech’s CargoWise software product suite allowed logistics services providers to maximise their productivity.

WTC has contracted 11 of the Top 25 Global Freight Forwarders to their products, providing these freight forwarders with a competitive advantage through productivity gains. WTC is a global leader in logistics services software.

We view WTC as an ‘Enduring Quality’ business, one of the highest quality companies on the ASX, continuing their multi-decade customer and product growth journey.

This significant long-term, compounding growth profile and highly attractive Risk/Reward makes the current share price selloff a significant investment opportunity.

Riordan and Teran are not alone in their backing of the ASX tech share.

Jed Richards from Shaw and Partners said Wisetech had been “oversold”, with today’s share price “presenting a strong entry point”.

On The Bull this week, Richards said he had a buy rating on Wisetech shares, commenting:

While management issues and investigations involving the Australian Federal Police and the Australian Securities and Investments Commission have contributed to a plunging share price, the company’s world class logistics software and proven global growth trajectory remain intact.

Long term fundamentals and market leadership support a compelling buying opportunity for patient investors.

The post Wisetech share price a ‘highly attractive opportunity’ after sell-off: fundie appeared first on The Motley Fool Australia.

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