Tag: Stock pick

PLS Group Ltd (ASX: PLS) shares have been on fire over the past 12 months.

During this time, the lithium miner’s shares have risen over 100%.

Does this mean it is too late to invest? Let’s see what analysts at Bell Potter are saying about the lithium giant.

What is the broker saying?

Bell Potter was a touch disappointed with the company’s performance during the first half. It highlights that PLS’ underlying EBITDA was a touch short of expectations and its statutory profit was a big miss. The broker said:

PLS reported 1H FY26 underlying EBITDA of $253m (BP est. $260m). Statutory NPAT of $33m (BP est. $93m) deviated from our estimate with non-recurring costs associated with the mid-stream demonstration plant and P-PLS lithium hydroxide joint venture. In 1H FY26, operating cash flow was $180m; capex -$123m; and a cash injection into the P-PLS joint venture of -$38m. Period end cash was $924m; net cash (including leases) $234m (30 June 2025 net cash $518m); and available liquidity $1.6b. No dividend was declared, as expected, to preserve balance sheet strength.

The major talking point was the announcement of the restart of the Ngungaju operation. Its ramp-up is expected to commence in the coming months and will be supported by the Canmax offtake agreement. Bell Potter said:

PLS’ Board has approved the ~200ktpa Ngungaju plant restart, with ramp-up to commence from July 2026. The decision follows last week’s execution of a two-year, 150ktpa offtake contract with Canmax, featuring a US$1,000/t floor price with no upside price limit. Restart costs will largely be expensed, with FY26 operating costs now expected towards the upper end of guidance (A$560-600/t).

PLS also provided an update on timing of organic growth projects, with P2000 (Pilgangoora) and Colina (Brazil) Feasibility Studies targeted for December 2026 and December 2027, respectively. Subject to prevailing market conditions, we believe P2000 is likely to receive FID prior to Colina, being a fully permitted brownfield expansion with a well-understood orebody.

Should you buy PLS shares?

According to the note, Bell Potter thinks that PLS shares are fairly valued at current levels.

As a result, the broker has reaffirmed its hold rating and $4.60 price target on them. This is approximately 5% higher than its current share price of $4.38.

Commenting on its hold recommendation, Bell Potter said:

We maintain our Hold recommendation. PLS’ earnings and cash flow will strengthen with the restart of the 200ktpa Ngungaju processing plant into an improved lithium price environment. P2000 and Colina development studies are being progressed, providing substantial organic growth optionality in markets with strong underlying EV and BESS-led long term demand fundamentals.

The post Should you buy PLS shares after its results? appeared first on The Motley Fool Australia.

More reading

• PLS Group posts H1 FY26 profit and 241% EBITDA surge
• Forget PLS, Bell Potter says this ASX lithium stock could rise 150%+
• Top brokers name 3 ASX shares to buy next week
• Here are the top 10 ASX 200 shares today
• Is it too late to buy surging ASX 200 lithium shares like PLS and Liontown?

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.

As we approach the end of February’s earnings season, there are still plenty of ASX 200 shares to report. 

Three companies that investors will be keeping an eye on next week are: 

• WiseTech Global Ltd (ASX: WTC) 
• Fortescue Ltd (ASX: FMG) 
• Woolworths Group Ltd (ASX: WOW) 

These ASX 200 companies all report HY26 earnings results on Wednesday, February 25. 

There has already been significant volatility this earnings season as investors respond both positively and negatively to results.

Ahead of next week’s reports, here’s what experts are saying about these ASX 200 stocks. 

WiseTech Global Ltd (ASX: WTC) 

Investors will be paying close attention to WiseTech’s results next Wednesday. 

This ASX 200 company has been heavily covered this year amidst the heavy tech sell-off.

Like many other technology shares, WiseTech has come under significant pressure. 

A key factor has been rising investor anxiety around artificial intelligence (AI). 

Instead of serving as a straightforward growth catalyst, rapid AI advancements are increasingly seen as a potential threat to traditional software business models. 

As a result, this ASX 200 stock has fallen 28.5% since the start of the year and almost 60% in the last 12 months. 

However due to this sell-off, many experts are now tipping WiseTech shares as a buy-low opportunity. 

Recent share price targets range from $65 to $109.15. 

This indicates an upside between 32% and 123%. 

A further sell-off next Wednesday after earnings results could push this ASX 200 stock into a strong value territory. 

Fortescue Ltd (ASX: FMG) 

This exploration company is the fourth largest iron ore producer in the world. 

However unlike many other mining and materials companies that have enjoyed tailwinds to start the year, this ASX 200 stock has fallen 8.27%. 

For context, the S&P/ASX 200 Materials (ASX: XMJ) index is up almost 12% year to date. 

This ASX 200 stock closed yesterday trading at $20.31. 

Any further updates on the company’s expansion away from just iron ore and into copper could be a green flag for long term investors. 

Copper has been the centre of attention recently due to its core use in electrification and renewable energy infrastructure. 

Short-term, this ASX 200 stock is being listed as a hold by many experts, with price targets hovering around $20.

Woolworths Group Ltd (ASX: WOW) 

This ASX 200 stock has risen 22% from its 52-week low reached last October, and now sits around $32 per share. 

Investors have scooped up Woolworths shares recently thanks to positive sentiment around the supermarket giant amid interest rate rises.

Experts seem to largely view the supermarket giant as trading close to fair value after gaining ground this year. 

Holders of the ASX 200 stock will be hoping for better news next week, compared to the FY25 earning result that sent the stock tumbling 15% last year.

The post Are these 3 popular ASX 200 stocks a buy, hold or sell ahead of earnings results next week? appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares with business models built for uncertain times
• 3 ASX ETFs to target if you anticipate a tech turnaround 
• 3 ASX growth shares that could rebound hard in 2026
• Why are ASX 200 tech shares down 43% in six months?
• 3 ASX shares smashed in the sell-off to buy this week

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

Telstra Group Ltd (ASX: TLS) shares were on form on Thursday.

In response to the telco giant’s half-year results, its shares climbed to a multi-year high before ending the day at $5.14.

Is it too late to invest? Let’s see what Bell Potter is saying about Australia’s largest telco.

What is the broker saying?

Bell Potter was pleased with Telstra’s performance during the first half and highlights a number of positives. It said:

The 1HFY26 result contained a few positive surprises: 1. Underlying EBITDAaL grew 6% to $4,185m which was close to in line with our forecast of $4,175m but more significantly above VA consensus of $4,100m; 2. Cash EBIT – the new focus metric for cash flow – grew 14% to $2,478m and was 3% above our forecast of $2,397m; 3. The interim dividend grew 11% to 10.5c and was above our forecast of 10.0c though the franking was only 90%; and 4. The buyback increased from $1.0bn to $1.25bn.

In response to the result, Bell Potter has made only modest (positive) revisions to its estimates for Telstra’s earnings. This has resulted in an upgrade to its dividend estimates, but with lower franking. It adds:

There is little if any change in our underlying EBITDAaL forecasts and we continue to forecast $8.41bn in FY26 which is at the top of the narrowed guidance range. We have, however, modestly upgraded our cash EBITDA forecasts by c.1% in each of FY26, FY27 and FY28 and now forecast $4.71bn in FY26 which is towards the top end of the unchanged guidance range. We have also increased our DPS forecasts by 1.0c in each period though we have reduced the franking.

It now expects dividends per share of 21 cents in FY 2026, 22 cents in FY 2027, and then 23 cents in FY 2028.

Should you buy Telstra shares?

According to the note, the broker has retained its hold rating on Telstra’s shares with an improved price target of $5.10 (from $4.75). This is largely in line with where its shares are trading today.

Commenting on its recommendation, the broker said:

We have rolled forward our PE ratio valuation and now apply a 23x multiple to our FY27 EPS forecast. We have also rolled forward our SOTP valuation and apply the same multiples of 8x, 5x, 9x and 15x to each of our FY27 EBITDA forecasts for the Mobile, Fixed, Infrastructure and Amplitel businesses.

There are no changes in the key assumptions we apply in either the DCF or DDM valuations and we continue to apply an 8.9% WACC in both. The net result is a 7% increase in our TP to $5.10 which is a modest discount to the share price so we maintain our HOLD recommendation.

The post What is Bell Potter saying about Telstra shares following its strong result? appeared first on The Motley Fool Australia.

More reading

• Recap: Winners and losers from earnings season week 3
• Telstra shares just hit a 9-year high. Here’s why
• ASX 200 lifts to record high amid strong earnings and new jobs data
• Why Hub24, Sonic, Telstra, and Universal Store shares are racing higher today
• Everything you need to know about the latest Telstra dividend

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

As earnings season continues, brokers are reviewing company reports and re-rating ASX shares as a buy, hold, or sell.

Here are three new recommendations.

Bravura Solutions Ltd (ASX: BVS)

The Bravura Solutions share price closed at $1.95 on Thursday, down 4.4%.

Last week, the wealth management software provider reported underlying revenue of $140 million, up 9.8% year-over-year, for 1H FY26.

About $81.3 million was recurring revenue.

Underlying cash earnings before interest, taxes, depreciation, and amortisation (EBITDA) was $34.2 million, up $14.2 million on 1H FY25.

Underlying net profit after tax (NPAT) was $25.9 million, up $14.6 million on 1H FY25.

Bravura ended the half with $64.5 million in cash and no debt.

Shaw and Partners reiterated its buy rating on the ASX tech share after reviewing the report.

The broker said revenue and EBITDA were comfortably ahead of expectations, commenting:

BVS is now a leaner, more efficient and more focused organisation.

While u/lying recurring growth is a highlight, churn is still a headwind and shouldn’t be ignored entirely.

However, Services is driving recent upgrades and BVS has good visibility into FY27.

Its cost base has now stabilized, which suggests future upgrades will be driven by revenue outperformance.

Shaw and Partners has a 12-month price target of $2.50 on Bravura Solutions shares.

Lottery Corporation Ltd (ASX: TLC)

Lottery Corporation shares closed at $5.58 yesterday, up 1.1%.

On Wednesday, the lottery services provider reported a 2% lift in revenue to $1.82 billion for 1H FY26.

EBITDA slipped 0.7% to $367 million and NPAT fell 1.4% to $173.3 million.

Operating expenses increased 2.9% to $146 million. Net debt was $2.24 billion, with leverage at 3x EBITDA.

After surveying the numbers, Morgans retained its hold rating on this ASX retail share, commenting:

TLC delivered a resilient 1H26 result despite the leanest jackpot environment since demerger, with jackpot game outcomes (~50% of turnover) well below statistical norms.

Record Keno performance and strength in base games (incl. Saturday Lotto retention +103%) helped cushion the impact, while digital mix growth was muted by the absence of large jackpots.

New CEO Wayne Pickup’s maiden result leaned into ‘evolution not revolution’, with messaging focused on portfolio optimisation and disciplined cost/capital allocation going forward.

TLC trades on forward EV/EBITDA and PER of ~16x and ~27x respectively, with the mid-year Investor Day the next key catalyst.

Morgans lifted its price target on Lottery Corporation shares from $5.40 to $5.70.

ASX Ltd (ASX: ASX)

The ASX Ltd share price closed at $54.92 on Thursday, up 0.2% amid the ASX 200 setting a new record high.

ASX is the predominant stock market operator in Australia.

Last week, ASX reported an 11.2% increase in revenue to $602.8 million for 1H FY26.

Statutory NPAT was $263.6 million, up 8.3%. However, total expenses rose 20% to $264.3 million.

On The Bull this week, Andrew Wielandt from DP Wealth Advisory put a sell rating on this ASX financial share.

He commented:

The business faces several challenges, including regulatory scrutiny after technology issues and heightened competition from Cboe Australia.

The rise of private equity and debt also generates competition for the ASX.

On February 12, 2026, the ASX announced a statutory net profit after tax of $263.6 million for the first half of 2026, an increase of 8.3 per cent on the prior corresponding period.

However, total expenses of $264.4 million were up 20 per cent, partly as a result of costs associated with the inquiry by the Australian Securities and Investments Commission, which cited ASX operational and governance issues in its interim report. 

The post Buy, hold, sell: Bravura, ASX, Lottery Corporation shares appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Here’s everything you need to know about the new Lottery Corp dividend
• Why Lottery Corp, NAB, Netwealth, and TechnologyOne shares are charging higher today
• The Lottery Corporation posts steady earnings and dividend for 1H26
• 5 things to watch on the ASX 200 on Wednesday

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 Bravura Solutions and The Lottery Corporation. The Motley Fool Australia has recommended The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The DigiCo Infrastructure REIT Stapled Securities (ASX: DGT) share price is in focus today after the company released its first-half FY26 result, featuring 12% revenue growth and fully contracted capacity at the flagship SYD1 data centre.

What did DigiCo Infrastructure REIT report?

• Underlying revenue up 12% to $108 million compared to the prior half
• Underlying EBITDA rose 15% to $57 million
• 1H FY26 distribution of 6.0 cents per security, in line with guidance
• Gearing steady at 35.8%, at the low end of the 35–45% target range
• Contracted IT capacity jumped 95% in Australia to 85MW
• $658 million in available liquidity to fund near-term growth

What else do investors need to know?

The SYD1 facility has reached full contract capacity and is set for a significant 88MW expansion, now fast-tracked due to stronger-than-expected demand. The first stage of this project, a 20MW addition, is targeting completion in Q2 of calendar year 2026.

DigiCo is also delivering cost savings via an organisational redesign, aiming to cut operating expenses by roughly $5 million per year. The company’s board and management reaffirm their focus on strategic moves to close the share price discount to net asset value (NAV), including exploring capital partnerships and recycling US assets into higher-return projects.

What did DigiCo Infrastructure REIT management say?

Chief Executive Officer Michael Juniper said:

DGT enters the second half of FY26 with strong momentum and a clear path to unlocking long term value. In the past six months, we have demonstrated the strength of our underlying platform, secured substantial new capacity, executed meaningful steps to simplify our operating model and materially accelerated our capacity expansion at SYD1.

Every action we’re taking is about closing the gap between DGT’s NAV and security price to ensure our market valuation reflects the underlying value of our assets and growing earnings base. We are focused on delivering sustainable, high quality growth for our investors.

What’s next for DigiCo Infrastructure REIT?

DigiCo has reaffirmed guidance for FY26, expecting underlying EBITDA at the top end of its $120–$125 million outlook, undeterred by currency headwinds. July 2026 run-rate EBITDA is forecast to remain at $180 million, and capex for growth is anticipated between $160 million and $180 million to drive the ambitious SYD1 expansion.

The board remains focused on balancing sustainable gearing while securing capital partners for further growth. Shareholders can expect a full-year distribution of 12.0 cents per security, maintaining a payout policy of 90–100% of funds from operations.

DigiCo Infrastructure REIT share price snapshot

Over the past 12 months, DigiCo hares have declined 52%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post DigiCo Infrastructure REIT posts 1H FY26 earnings and accelerates SYD1 expansion appeared first on The Motley Fool Australia.

More reading

• QBE Insurance posts 2025 profit and dividend increase in FY25
• 5 things to watch on the ASX 200 on Friday
• Rio Tinto FY25: Higher revenue, stable dividend as growth projects ramp up
• Here are the top 10 ASX 200 shares today
• HUB24 shares jump 12% higher. Are the shares still a buy for 2026?

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.

The QBE Insurance Group Ltd (ASX: QBE) share price is in focus today after the insurer reported a 21% lift in statutory net profit after tax to US$2,157 million and full year dividends up 25% to 109 cents per share.

What did QBE Insurance Group report?

• Gross written premium rose 7% to US$23,959 million (8% excluding exited portfolios)
• Statutory net profit after tax up 21% to US$2,157 million (FY24: US$1,779 million)
• Combined operating ratio improved to 91.9% versus 93.1% a year ago
• Investment income steady at US$1,633 million, a return of 4.9%
• Full year dividend increased 25% to 109 Australian cents per share (payout ratio: 50%)
• Adjusted return on equity up to 19.8% (FY24: 18.2%)

What else do investors need to know?

QBE saw its funds under management jump 17% to US$35.8 billion, driven by premium growth and robust investment returns. Debt to total capital increased to 24.1% as the group completed tier 2 capital raisings to replace previously issued notes.

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. The APRA Prescribed Capital Amount (PCA) multiple edged higher to 1.87x, above the group target range.

What did QBE Insurance Group management say?

Group 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.

What’s next for QBE Insurance Group?

Looking ahead, QBE expects continued gross written premium growth in the mid-single digits (on a constant currency basis) for FY26, with an anticipated combined operating ratio of around 92.5%.

The company remains focused on underwriting discipline and portfolio optimisation, having largely exited its North American non-core portfolio. Strategic priorities include further investment in digital, cloud, and AI capabilities to drive efficiency and robust underwriting.

QBE Insurance Group share price snapshot

Over the past 12 months, QBE Insurance Group shares have remained flat, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post QBE Insurance posts 2025 profit and dividend increase in FY25 appeared first on The Motley Fool Australia.

More reading

• DigiCo Infrastructure REIT posts 1H FY26 earnings and accelerates SYD1 expansion
• 5 things to watch on the ASX 200 on Friday
• Rio Tinto FY25: Higher revenue, stable dividend as growth projects ramp up
• Here are the top 10 ASX 200 shares today
• HUB24 shares jump 12% higher. Are the shares still a buy for 2026?

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.

If you have $5,000 to invest and a penchant for ASX dividend shares, then read on.

That’s because listed below are three shares that Bell Potter thinks could be top buys for income investors. Here’s what you need to know:

Cedar Woods Properties Limited (ASX: CWP)

Bell Potter thinks Cedar Woods could be an ASX dividend share to buy. It is one of Australia’s leading property developers with a diverse portfolio. This includes subdivisions in emerging residential communities, high-density apartments, and townhouses in inner-city neighbourhoods.

The broker believes the company is well-positioned to benefit from Australia’s chronic housing shortage. It expects this to underpin dividends per share of 35 cents in FY 2026 and then 39 cents in FY 2027. Based on its current share price of $8.15, this equates to 4.3% and 4.8% dividend yields, respectively.

Bell Potter has a buy rating and $10.00 price target on its shares.

Elders Ltd (ASX: ELD)

Bell Potter is also feeling bullish on Elders and sees it as an ASX dividend share to buy.

It is an agribusiness company that provides rural and livestock services, agricultural inputs, and real estate services to Australia’s farming sector.

Bell Potter has been pleased with the performance of its base business and believes it has multiple growth drivers. In addition, the broker feels that the market is undervaluing the company’s Delta Agribusiness acquisition.

With respect to income, the broker is forecasting fully franked dividends of 43 cents per share in FY 2026 and then 45 cents per share in FY 2027. Based on its current share price of $7.22, this would mean dividend yields of 6% and 6.2%, respectively.

Bell Potter has a buy rating and $9.45 price target on its shares.

Rural Funds Group (ASX: RFF)

A final ASX dividend share to consider for a $5,000 investment is Rural Funds.

It is a property company that owns agricultural assets such as cattle properties, vineyards, and cropping land. Rural Funds leases these properties to high-quality tenants on long-term agreements with periodic rental increases built in.

Bell Potter is expecting the company to reward its shareholders with 11.7 cents per share dividends in FY 2026 and FY 2027. Based on its current share price of $2.07, this would mean attractive 5.7% dividend yields in both years.

The broker currently has a buy rating and $2.45 price target on its shares.

The post 3 top ASX dividend shares to buy with $5,000 appeared first on The Motley Fool Australia.

More reading

• Looking for income? Check out these buy-rated ASX dividend stocks
• 3 defensive ASX dividend shares that analysts are tipping as top buys
• Bell Potter names more of the best ASX shares to buy in February
• 2 ASX REIT stocks I want to buy for a lifetime of passive income!
• Brokers name 3 ASX dividend shares for income investors to buy

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

February earnings season is past the halfway mark. 

After a busy week of results, here are some of the key headlines you might have missed. 

Winners: Banks continue to beat 

Last week it was ANZ Group Holdings Ltd (ASX: ANZ), Westpac Banking Corp (ASX: WBC) and Commonwealth Bank of Australia (ASX: CBA) that pleasantly surprised many pundits. 

This week, it was National Australia Bank Ltd (ASX: NAB) that climbed after results beat expectations. 

On Wednesday, the bank delivered a strong start to FY26.

Its cash earnings climbed 15% and underlying profit up 12% compared to the prior equivalent period.

Following the result, NAB shares rose 6% to a record high of just over $48. 

Westpac, NAB and ANZ now all sit close to all-time highs. 

Experts believe that NAB shares can continue to rise, with optimistic ratings coming from UBS following the results. 

As for bank shares as a whole, valuations look full and expectations are mixed among brokers. 

Telstra hits record high

Another clear earnings season winner was Telstra Group Ltd (ASX: TLS). 

Shares lifted to a 9 year high on the back of HY 26 earnings season results. 

Some positives from the result included:

• Mobile services revenue rose 5.6% for the half, supported by higher ARPU and customer growth
• Group cash EBIT grew by 14% compared to the prior corresponding period
• Underlying operating expenses were reduced by $179 million, down 2.4%
• Interim dividend lifted to 10.5 cents per share (90.5% franked, was 9.5 cps fully franked 1H25). 

Its share price is now up 24% over the last 12 months. 

Wesfarmers tumble 

On the negative side of news, blue-chip stock Wesfarmers Ltd (ASX: WES) fell on earnings results on Thursday. 

The company behind Australian staples like Bunnings and Kmart posted 2026 HY results that included: 

• Revenue of $24,212 million, up 3.1% on the prior period
• Net profit after tax (NPAT) increased 9.3% to $1,603 million
• Earnings before interest and tax (EBIT) climbed 8.4% to $2,493 million
• Fully-franked interim dividend of $1.02 per share, up 7.4%.

However it seems investors were not impressed as the share price tumbled 5.6% on Thursday. 

ZIP tanks 34%

One of the biggest single day crashes this earnings season came from Zip Co Ltd (ASX: ZIP). 

Investors were exiting this stock in waves on Thursday after the company’s 1H FY26 result missed expectations. 

While the company posted a record performance, the market appears uneasy about several key metrics. 

Revenue margin slipped slightly to 7.9%, net bad debts rose to 1.73% of total transaction value (TTV), and second-half cash EBITDA is forecast to be broadly in line with the first half. 

This outlook indicates profit growth may stabilise from here instead of accelerating further.

ZIP shares are now down 44% year to date. 

The post Recap: Winners and losers from earnings season week 3 appeared first on The Motley Fool Australia.

More reading

• What is Bell Potter saying about Telstra shares following its strong result?
• Buy, hold, or sell? Goodman Group, Wesfarmers, Zip shares
• 3 beaten down ASX shares I’d load up on at these prices
• Is the Zip share price crash a buying opportunity or a warning sign?
• Telstra shares just hit a 9-year high. Here’s why

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

Step One Clothing Ltd (ASX: STP) shares are in focus today after the company’s earnings results led to a big sell-off this week.

On Wednesday, the company released its H1 FY26 result, which led to a 12% share price fall.

Investors then continued to exit the company on Thursday. 

As a result, Step One shares are down 17% this week.

What did the company report?

Step One Clothing is a direct-to-consumer online retailer for men’s undergarments.

Included in Wednesday’s half year earnings was: 

• Revenue of $36.3 million for the six months to 31 December 2025, down 24.5% compared to the prior corresponding period
• EBITDA loss of $10 million, compared to a $11.2 million profit a year earlier
• Statutory NPAT loss after tax of $8.5 million, versus a $8.2 million profit in 1H25
• Gross margin declined to 43%, down from 78% in the prior period. 

Speaking on the results, Step One Founder and CEO, Greg Taylor, said: 

Sales in late 2025 were below our expectations, primarily due to slower-than-expected clearance of legacy inventory despite promotional activity. As a result, we have taken a $10.9 million provision against this stock, which is now fully provided for, with no material additional provisions anticipated.

What now for Step One shares?

Following this week’s fall, there could be an opportunity to buy low on Step One shares. 

Two brokers have provided updated guidance following the earnings results. 

In a note out of Morgans, the broker said the 1H26 earnings were broadly in line with guidance provided in December, although fell materially short of prior expectations. 

Morgans said FY26 will be a reset year for the business, with management focusing on rebuilding brand equity for longer term profitable growth. 

STP have reset pricing, scaling back promotional activity, increased brand marketing spend to drive new customer acquisition and continue to launch new products in adjacent categories. We have made modest changes to earnings, our price target is $0.29 (was $0.30) and we maintain our HOLD recommendation.

From yesterday’s closing price of $0.265, this indicates an upside of 9.4%. 

Bell Potter weighs in

The team at Bell Potter also provided updated guidance on Step One shares following the result. 

The broker reiterated its hold recommendation, and also revised its price target to $0.29. 

Given the recent inventory provision, we remain cautious on inventory management due to the increased investment into new products, particularly with a push into new segments with broader competitive pressures.

We still view STP’s product as market leading in terms of quality, however we believe a mix of maturation in the core market/customer mixed with a higher cost of living to provide future strain on the business.

The post What are brokers saying about Step One shares after 17% crash appeared first on The Motley Fool Australia.

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

If you’ve got $30,000 ready to deploy, spreading it across a few carefully chosen exchange traded funds (ETFs) can provide exposure to multiple long-term themes without overcomplicating things.

But which funds could be good picks for this money?

Here are three ASX ETFs that could be worth considering this February.

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ASX ETF to look at is the BetaShares Global Cybersecurity ETF.

It provides exposure to global cybersecurity leaders such as CrowdStrike (NASDAQ: CRWD), Palo Alto Networks (NASDAQ: PANW), and Zscaler (NASDAQ: ZS). These companies help governments and enterprises defend against increasingly sophisticated cyber threats.

With respect to CrowdStrike, its cloud-native Falcon platform uses artificial intelligence to detect and respond to threats in real time. As businesses shift more workloads to the cloud, endpoint protection becomes mission-critical. CrowdStrike’s subscription-based model also provides recurring revenue and strong operating leverage as it scales.

With cyber threats rising globally and security budgets remaining a priority even in slower economic periods, the BetaShares Global Cybersecurity ETF taps into a structural growth theme that shows little sign of slowing.

Vanguard MSCI International Shares ETF (ASX: VGS)

While thematic exposure is exciting, broad diversification remains powerful.

The Vanguard MSCI International Shares ETF gives investors access to over 1,000 stocks across developed markets. This includes Microsoft (NASDAQ: MSFT), Novo Nordisk (NYSE: NVO), and Visa (NYSE: V).

Rather than targeting a single industry, this fund captures global economic growth across healthcare, financials, technology, and consumer sectors. For example, Novo Nordisk is a global pharmaceutical leader in diabetes and obesity treatments. These are areas experiencing long-term demand growth due to ageing populations and lifestyle trends.

By holding the Vanguard MSCI International Shares ETF, investors effectively gain exposure to global earnings growth without needing to predict which country or sector will lead next.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Finally, the Betashares Nasdaq 100 ETF focuses on the Nasdaq 100, which is home to some of the most innovative companies in the world.

Its holdings include Nvidia (NASDAQ: NVDA), Alphabet (NASDAQ: GOOGL), and Adobe (NASDAQ: ADBE). These businesses sit at the centre of artificial intelligence, digital advertising, cloud computing, and creative software.

Nvidia (NASDAQ: NVDA) stands out in particular. The company designs the high-performance chips that power AI training and inference across data centres worldwide. From hyperscale cloud providers to enterprise AI deployments, Nvidia’s GPUs have become critical hardware in the global AI buildout.

Overall, the Betashares Nasdaq 100 ETF remains a compelling way to gain concentrated exposure to US innovation and technology-driven growth.

The post 3 ASX ETFs to buy with $30,000 in February appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Alphabet, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, CrowdStrike, Microsoft, Nvidia, Visa, and Zscaler. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Novo Nordisk and Palo Alto Networks and has recommended the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Adobe, Alphabet, CrowdStrike, Microsoft, Nvidia, Vanguard Msci Index International Shares ETF, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.