Tag: Stock pick

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and charged higher. The benchmark index rose 1.1% to 8,692.6 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 to rise

The Australian share market looks set to rise again on Wednesday despite a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 33 points or 0.4% higher. In late trade in the United States, the Dow Jones is down 0.05%, the S&P 500 is down 0.25%, and the Nasdaq is 0.1% lower.

Oil prices sink again

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor session on Wednesday after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 8.6% to US$86.63 a barrel and the Brent crude oil price is down 8.4% to US$90.65 a barrel. Optimism over a resumption of supply from the Strait of Hormuz put pressure on prices.

ASX 200 shares going ex-div

Another group of ASX 200 shares are going ex-dividend today and could trade lower. This includes supply chain solutions company Brambles Ltd (ASX: BXB), appliance manufacturer Breville Group Ltd (ASX: BRG), waste management company Cleanaway Waste Management Ltd (ASX: CWY), and mining technology company Imdex Ltd (ASX: IMD). Breville is paying eligible shareholders a 19 cents per share fully franked interim dividend later this month on 27 March.

Gold price jumps

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session on Wednesday after the gold price jumped overnight. According to CNBC, the gold futures price is up 1.9% to US$5,201.7 an ounce. Easing inflation worries and US dollar weakness were drivers of this gain.

Buy Eagers Automotive shares

Eagers Automotive Ltd (ASX: APE) shares are good value according to analysts at Bell Potter. This morning, the broker has upgraded the automotive retailer’s shares to a buy rating with a $28.50 price target. It said: “Our updated TP of $28.50 is >15% premium to the share price so we upgrade our recommendation from Hold to Buy. Yes, we acknowledge Eagers is consumer facing but we see resilience in the both the new and used vehicle market in Australia as well as Canada.”

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

More reading

• Here are the top 10 ASX 200 shares today
• Australia’s next great ASX mining boom: Are we already in it?
• Why are ASX 200 energy shares getting smashed on Tuesday?
• Santos share price is tumbling from an 18-month high: Buy, hold or sell?
• Why is the ASX 200 on a rollercoaster this week?

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

ASX gold stocks have been share market winners across the last 12 months. 

A combination of record commodity prices and geopolitical uncertainty has led investors to push further and further into the safe-haven asset. 

However a new report from Bell Potter released yesterday has provided a less optimistic view on ASX gold stock Pantoro Gold Ltd (ASX: PNR). 

Pantoro is a gold producer and exploration company based in Western Australia. The company’s flagship operation is the 100%-owned Norseman Gold Project in the state’s Eastern Goldfields region.

Fresh off a 22% crash 

Pantoro Gold shares crashed 22% yesterday following its half-year results announcement. 

The Motley Fool’s Bernd Struben reported yesterday that back in January, management said they expected full-year gold production to be at the lower end of the previously provided production guidance of 100,000 to 110,000 ounces of gold.

However, operations at Norseman were affected by a significant rain event associated with Ex-Tropical Cyclone Mitchell in February 2026. 

The event resulted in temporary flooding of multiple underground areas, and interrupted open pit and haulage operations for several days, delaying production scheduled for February until March

As a result, Pantoro has cut its full-year gold production guidance to the range of 86,000 ounces to 92,000 ounces.

Seemingly, investors were not impressed, as the ASX gold stock ended yesterday down 22.5%. 

It remains up approximately 53% over the last 12 months. 

What did Bell Potter have to say?

Following Tuesday’s close, Bell Potter released updated guidance on the ASX gold stock. 

The broker said the 1HFY26 result was in-line/slightly ahead of its forecasts but a miss vs consensus.

The broker has maintained a hold recommendation on Pantoro Gold shares, but cut its price target to $4.20 (previously $6.05). 

The latest guidance is a 15% cut (midpoint basis) to prior FY26 guidance of 100- 110koz. 

We have updated our forecasts for a weak March quarter (21koz) and an improved June quarter (24koz) for FY26 production of 87koz. Given the contractor transition in the June quarter, we still see potential downside to this forecast.

The guidance downgrade also brings into question the medium-term production target of ~200kozpa (FY27-FY28). We had previously made more conservative assumptions (120-130kozpa) but we now bring these back to ~110kozpa.

Bell Potter said the company still offers unhedged gold production exposure and potential production growth, but it expects the market to apply a greater risk discount to this outlook. 

The post Why it might be time to exit this ASX gold stock appeared first on The Motley Fool Australia.

More reading

• Why Coles, Pantoro Gold, Seek, and Woodside shares are falling today
• Guess which high-flying ASX 200 gold stock is crashing 22% today on weather woes

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 ASX shares are well-known for providing fat, fully franked dividends, the opposite is true of US stocks. You’d be hard pressed to find any Australian investor who prioritises buying shares in the American markets solely for passive dividend income.

Instead, the ‘States have long been the hunting ground for the world’s best growth stocks. That’s not surprising when we consider the calibre of long-time winners like NVIDIA, Tesla, Mastercard, Amazon, Alphabet, Netflix, and Microsoft, amongst many others.

It’s true that dividends from US stocks don’t come with franking credits attached. But that doesn’t mean that Australian investors can’t obtain a decent income from stocks across the Pacific.

Indeed, the US markets are home to some of the world’s most impressive dividend growth streaks. Companies like Coca-Cola, Altria, Johnson & Johnson, Pepsico and Colgate-Palmolive have delivered an annual dividend increase every single year for at least 50 years. That’s not something that many ASX share can claim.

Sure, if one buys a US-based index fund, they can expect a lot less in dividend income upfront compared to buying an ASX index fund. To illustrate, the iShares Core S&P/ASX 200 ETF (ASX: IOZ) is currently trading with a trailing dividend distribution yield of 3.42%. In contrast, the iShares S&P 500 ETF (ASX: IVV), which tracks the most popular gauge of the American markets, will only get you a trailing yield of 1.1% at current pricing.

Can US stocks deliver decent passive income?

Let’s assume for a moment that these two index funds pay out the same dividend distributions over the coming 12 months as the past 12. If that’s the case, an investor would need to invest just over $700,000 in the ASX index fund of they wished to receive roughly $2,000 a month in passive dividend income. But for the S&P 500 ETF, the amount required for that same level of passive income would stand at just under $2.2 million.

However, there are easier ways to get a higher yield from US stocks. Probably the easiest is by buying higher-yielding passive income stocks. Not all of the highest calibre companies on the US markets are growth beasts. Let’s start with some of the dividend stars we listed above. right now, Coca Cola shares are trading with a dividend yield of 2.72%. Pepsico offers 3.51%, while Altria has a whopping 6.32% on the table.

No dividend is safe, no matter how long its streak of annual increases. But it does give us a guide that a company knows how to make consistent profits through all kinds of economic cycles.

A combination of these kinds of shares can easily help an ASX passive income investor get at least as much of a yield form the US markets as is available on the ASX, and perhaps even more.

The post How much do you need to invest in US stocks to earn a $2,000 monthly passive income? appeared first on The Motley Fool Australia.

More reading

• Should I buy ASX shares or look to conserve cash right now?
• What I’d buy if the ASX share market crashes
• This would be my $1 million ASX retirement portfolio
• Can Vanguard’s new S&P 500 fund topple the IVV ETF?
• 3 world-class ASX ETFs to buy and hold

Motley Fool contributor Sebastian Bowen has positions in Alphabet, Altria Group, Amazon, Coca-Cola, Mastercard, Microsoft, Netflix, and PepsiCo. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Colgate-Palmolive, Mastercard, Microsoft, Netflix, Nvidia, Tesla, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Microsoft, Netflix, Nvidia, 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.

Xero Ltd (ASX: XRO) shares have taken investors on a volatile ride over the past year. After reaching strong highs previously, the ASX tech stock has slumped sharply to $83.73 at the time of writing, a loss of 49.7% over 12 months.

The tumble is reflecting broader weakness across technology stocks and concerns about growth momentum.

With the Xero shares now trading well below prior highs, investors may be wondering: is this a buying opportunity or a warning sign?

Strengths still underpin the business

Despite the share price volatility, Xero remains one of the most successful software companies listed on the S&P/ASX 200 Index (ASX: XJO).

The company provides cloud-based accounting software to small and medium businesses, accountants, and bookkeepers. Its subscription model generates recurring revenue and strong cash flow, a key advantage in the software-as-a-service (SaaS) sector.

Xero’s growth has been driven by expanding customer numbers and rising revenue per user. The platform now serves over 4.1 million subscribers globally, highlighting the scale of its ecosystem.

The $14 billion Xero share also continues to benefit from the global shift toward digital accounting and business automation. Beyond accounting, the platform connects with a wide range of financial services, payment systems, and business applications.

This could support long-term growth as more small businesses move their financial operations online.

Latest results show solid growth

Importantly, the business itself has continued to grow even as the share price has struggled.

In its most recent half-year results for the six months to 30 September 2025, Xero reported revenue of NZ$1.19 billion, up about 20% year on year. Free cash flow also improved, reaching NZ$321 million as margins expanded. Profitability has also been strengthening, supported by subscriber growth and higher pricing.

Management of Xero shares has been focused on improving operating leverage and balancing growth with profitability. The company has also been investing heavily in its international expansion, particularly in North America.

Concerns US expansion

However, the company is not without risks.

One key concern is its US expansion strategy, including the US$2.5 billion acquisition of payments platform Melio. While the takeover could significantly expand Xero’s presence in the US, the price tag and integration risks have unsettled some investors.

Slowing subscriber growth in some regions and rising competition in the fintech and accounting software space have also raised questions about how quickly Xero can sustain its previous growth trajectory.

What next for Xero shares?

Despite the sharp share price fall, broker sentiment remains broadly positive.

According to TradingView data, Xero shares currently carry a strong buy rating, with several brokers maintaining bullish outlooks on its long-term potential. Price targets range from $81.55 to $233.20 per share. This suggests a 2.6% downside to an explosive 178% upside.

UBS currently has a buy rating and $174.00 price target on Xero’s shares. This points to a potential gain of roughly 110% at the time of writing.

The post Down 50%, is it time to jump into Xero shares? appeared first on The Motley Fool Australia.

More reading

• 4 reasons to buy the redound in Xero shares today
• After the ASX 200’s latest slide, I spy bargain shares!
• 3 ASX tech stocks that brokers rate as buys
• Should I buy ASX shares or look to conserve cash right now?
• 10 ASX 200 shares to buy after the market selloff

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

ASX healthcare stock Clarity Pharmaceuticals Ltd (ASX: CU6) enjoyed a strong rise of 6.7% yesterday. 

Investors reacted positively after the company released a clinical trial update.

Yesterday’s rise was good news for the ASX healthcare stock, after experiencing volatility in 2026. 

Company overview and trial update

Clarity Pharmaceuticals specialises in the development of Targeted Copper Theranostics (TCT) for the imaging and treatment of selected cancers. 

In particular the company works on identification of certain cancer biomarkers. They develop technology to target those biomarkers with either small molecules or monoclonal antibodies.

Yesterday, the company announced that its registrational Phase III AMPLIFY clinical trial has exceeded its original enrolment target.

The study is evaluating the diagnostic performance of the company’s 64Cu-SAR-bisPSMA PET imaging agent in detecting recurrent prostate cancer in men with rising prostate-specific antigen (PSA) levels after initial treatment.

Due to strong demand from clinical trial sites in the United States and Australia, more participants consented than planned. Enrolment has now closed while final screening and participant numbers are confirmed.

The trial will assess imaging at two timepoints – on the day of administration and about 24 hours later. 

Results are expected to support a future application to the US Food and Drug Administration (FDA) for approval of the imaging agent.

What did Bell Potter have to say?

In a report from the broker yesterday, Bell Potter said the task ahead is to match the results from the imaging with the standard of truth in order to determine the rate of true positives (TP).

Essentially, the AMPLIFY study has completed enrolment of 220 men with suspected biochemical recurrence of prostate cancer after prostate removal.

All imaging used 64Cu-SAR-bisPSMA and is now finished and awaiting comparison with biopsy and conventional imaging. This will determine the true positive detection rate.

If the agent exceeds the required sensitivity threshold – something current PSMA imaging agents have not achieved – it could uniquely include positive predictive value on its label. This would potentially change treatment guidelines and prove a strong competitive advantage in early-stage recurrence detection.

The inclusion of the positive predictive value on the label would be unique to 64Cu-SAR-bisPSMA and most likely warrant a change to treatment guidelines, particularly for early stage BCR. This would be a clear, sustainable competitive advantage for both utilisation and pricing.

There should be no doubt that 64Cu-SAR-bisPSMA has far better sensitivity for the detection of early stage BCR in mCRPC. The longer isotope half-life, dual PSMA targeting moiety and superior chemistry are underlying drivers for this breakthrough science. 

As a result, the broker has retained its speculative buy recommendation and price target of $6.40. 

Based on yesterday’s closing price of $3.51, this indicates an upside of 82.3% for the ASX healthcare stock.

The post Bell Potter is tipping this exciting ASX healthcare stock to rise 80% appeared first on The Motley Fool Australia.

More reading

• Why is this ASX 200 share charging 7% higher today?
• Why this speculative ASX stock could rocket 68%
• Why Clarity Pharmaceuticals, EOS, Nuix, and Reece shares are racing higher today
• Why is this ASX 300 stock jumping 14% on Monday?
• Why this ASX 300 stock could be a buy after ‘a breakthrough moment’

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.

Building passive income from ASX shares doesn’t usually happen overnight. But with time, consistency, and compounding, it is possible to turn a relatively modest starting amount into a portfolio that produces meaningful income for decades.

The basic idea is simple: start with an initial investment, continue adding to it if possible, allow the portfolio to grow over time, and eventually use the dividends as income.

Let’s look at how I would aim to do it with a starting investment of $20,000.

Step one: Focus on long-term growth first

The first goal I would have would be to grow the portfolio as much as possible before thinking about the income.

Historically, the share market has delivered average returns of around 9% per year over the long term. Of course, returns vary from year to year, but using that figure provides a useful illustration.

If a $20,000 investment grew at an average rate of 9% annually and no additional money was added, it could grow to roughly $112,000 after 20 years and around $265,000 after 30 years.

That growth happens because the returns themselves begin generating additional returns. Over long periods, compounding becomes the most powerful force in investing.

Step two: Keep adding to the portfolio

While compounding is powerful on its own, the process becomes far more effective if you continue adding money along the way.

Even small contributions can dramatically change the outcome.

For example, if an investor started with $20,000 and added just $300 per month into ASX shares while earning an average return of 9% per year, the portfolio could grow to around $305,000 after 20 years and $780,000 after 30 years.

Those extra contributions accelerate the compounding process and help build the portfolio much faster.

Step three: Let dividends fund your income

Once the portfolio has grown to a meaningful size, the dividends can begin to do the heavy lifting.

Many ASX shares pay attractive dividends, and it’s not uncommon for diversified portfolios to generate dividend yields of around 4% over time.

Using that figure as a guide, a $500,000 portfolio could generate about $20,000 per year in passive income. A $750,000 portfolio could produce roughly $30,000 annually, while a $1 million portfolio could deliver about $40,000 a year.

At that point, investors have the option of reinvesting those dividends to continue growing the portfolio, or using them as passive income.

What shares could help build this portfolio?

In the early years, the focus would likely be on companies capable of strong long-term growth.

Businesses such as ResMed Inc. (ASX: RMD), Hub24 Ltd (ASX: HUB), and WiseTech Global Ltd (ASX: WTC) have delivered strong earnings growth over time and operate in industries with large global opportunities.

As the portfolio grows, adding income-oriented companies like Telstra Group Ltd (ASX: TLS) or infrastructure businesses such as Transurban Group (ASX: TCL) and APA Group (ASX: APA) could help increase the dividend stream.

The combination of growth and income can gradually transform a portfolio from wealth-building into income-generating.

Foolish takeaway

I think that turning $20,000 into lifelong passive income with ASX shares is less about finding the perfect stock and more about staying invested long enough for compounding to work.

Start with a solid foundation, keep adding to the portfolio where possible, and allow time to do the heavy lifting. Over the long term, a growing portfolio and a steady stream of dividends can become a powerful source of passive income.

The post How to turn $20,000 into lifelong passive income with ASX shares appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares to buy for magnificent long-term growth
• 3 ASX tech stocks that brokers rate as buys
• What’s a great ASX tech stock to buy right now?
• Should I buy ASX shares or look to conserve cash right now?
• 3 ASX shares I would buy to protect against a recession

Motley Fool contributor Grace Alvino has positions in Hub24 and Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24, ResMed, Transurban Group, and WiseTech Global. The Motley Fool Australia has positions in and has recommended ResMed, Telstra Group, Transurban Group, and WiseTech Global. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Xero Ltd (ASX: XRO) shares have had a tough run of it since notching new all-time closing highs last June.

Though signs are emerging that a sustained turnaround could be brewing for the embattled stock.

Shares in the S&P/ASX 200 Index (ASX: XJO) business and accounting software provider closed up 0.36% on Tuesday, trading for $83.72 apiece.

Despite the welcome lift, the share price is still down a painful 49.87% since this time last year.

As for that potential early turnaround, Xero shares notched a multi-year closing low of $71.84 on 24 February. That low point came amid a broader tech stock sell-off driven by concerns that artificial intelligence, or AI, could be poised to knock the stuffing out of software as a service (SaaS) providers.

But since that low, posted just two weeks ago, Xero shares have surged 16.6%.

And according to Red Leaf Securities’ John Athanasiou, the ASX 200 tech stock is well-placed to keep outperforming over the medium to longer term (courtesy of The Bull).

Here’s why.

Should you buy Xero shares today?

“This accounting software provider has been sold off, but fundamentals remain strong,” Athanasiou said.

Citing the first reason he’s bullish on Xero shares, he said, “Its capital light, subscription-based model provides recurring revenue, pricing power and operating leverage.”

As for the second reason the tech stock could outperform, he noted:

Subscriber growth in Australia, New Zealand and the UK is resilient amid expanding margins through improving cost discipline. The US market remains under-penetrated, offering options over the long term.

And Athanasiou doesn’t believe that AI is likely to take a bite out of Xero’s bottom line. Quite the contrary.

“Artificial intelligence is likely to enhance Xero’s product suite, improving workflow automation and stickiness rather than disrupting revenue,” he said.

As for the fourth reason you might want to buy Xero shares today, Athanasiou concluded:

Recently trading below prior multiples, the risk/reward is attractive for long term investors. This is a profitable, global software platform with scale, and current weakness presents an accumulation opportunity for those looking beyond short-term sentiment.

What’s the latest from the ASX 200 tech share?

The last price-sensitive news out from Xero was the 3 February market update, highlighting its growth potential.

The company noted that more than 4 million customers worldwide are now using its platform. And some two million Xero subscribers were said to be benefitting from AI features, with 300,000 of those subscribers using new GenAI tools.

Xero CEO Sukhinder Singh Cassidy said:

We are deeply focused on capturing the global AI and US accounting plus payments TAM [total addressable market]. Xero is well positioned to shepherd SMBs [small and medium sized businesses] into the AI era and take advantage of this technology.

Xero shares closed up 2.6% on the day the update was released.

The post 4 reasons to buy the redound in Xero shares today appeared first on The Motley Fool Australia.

More reading

• After the ASX 200’s latest slide, I spy bargain shares!
• 3 ASX tech stocks that brokers rate as buys
• Should I buy ASX shares or look to conserve cash right now?
• 10 ASX 200 shares to buy after the market selloff
• Buy, hold, sell: Whitehaven Coal, Goodman, and Xero shares

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 Xero. The Motley Fool Australia has positions in and has recommended Xero. 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) enjoyed a decisive relief rally this Tuesday, delivering some welcome respite for investors after yesterday’s horror-show start to the week.

By the time trading wrapped up today, the ASX 200 had gained a healthy 1.09% after initially rallying even harder this morning (up 2% at one point). This session’s rise leaves the index at 8,692.6 points.

This happy Tuesday for the Australian markets follows an optimistic start to the American trading week in the early hours of this morning (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) returned from the weekend with a spring in its step, rising 0.5%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was even more enthusiastic, gaining a rosy 1.38%.

But let’s return to the local markets now and take stock of how the different ASX sectors were lifted, or not, by today’s market tide.

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

More reading

• After the ASX 200’s latest slide, I spy bargain shares!
• Australia’s next great ASX mining boom: Are we already in it?
• 3 ASX shares to buy for magnificent long-term growth
• 3 ASX tech stocks that brokers rate as buys
• Why are Life360 shares soaring 10% higher today?

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 DroneShield, Life360, and Telix Pharmaceuticals and is short shares of DroneShield. 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 Life360. The Motley Fool Australia has recommended Pro Medicus and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Australian bank stocks are climbing higher today amid a broad market rally on the S&P/ASX 200 Index (ASX: XJO).

At the time of writing, 11 out of 12 Australian banks listed on the ASX are trading in the green. 

ASX banks have historically outperformed many global bank peers thanks to Australia’s highly concentrated, stable, and well-regulated bank sector. Many global banks operate in fragmented or volatile markets, whereas in Australia, local banks are subject to strict risk management.

Australian bank stocks are also less exposed to global financial and credit crises, unlike some US or European banks. And they pay high and reliable dividends to their investors. 

When it comes to bank stocks, which I think could outperform the rest in FY26 and FY27, here are my top three picks.

ANZ Group Holdings Ltd (ASX: ANZ) 

ANZ is going full steam ahead with its strategy to strengthen and simplify its business and significantly reduce operational costs this year. 

The first phase of the Australian bank’s ANZ 2030 strategic restructuring will see the company accelerate the integration of Suncorp Bank, roll out its ANZ plus platform to replace old technology, and plan to reduce costs and go back to basics by cutting around 8% of its workforce by late 2026.

The bank’s strategy to simplify and strengthen its business could improve net interest margins and return on equity, which could help ANZ outpace growth of its global peers over the next 12 months.

Westpac Banking Corp (ASX: WBC) 

Westpac has gained traction in the first quarter of FY26 as its cost-reduction drive is starting to deliver results. 

Its solid first-quarter update showed steady earnings growth, improved credit quality, and a strong capital position.

The bank is targeting another $500 million in productivity gains in FY26. It also has plans to roll out new technology this year, including AI training for all staff and expanding its business banking solutions.

If Australia’s economy remains resilient, Westpac’s consistent earnings and investor support could drive profitability higher in FY26 and FY27.

National Australia Bank Ltd (ASX: NAB) 

NAB is another Australian bank stock that has strong profit growth and efficient operations. The bank has historically demonstrated careful cost management, ensuring that its revenue translates into profit.

Like its local peers, NAB reported strong first-quarter results for FY26, which showed strong cash profit year on year. And going forward, it plans to continue growing its business and home lending portfolios while keeping operating expense growth below FY25’s rate. The bank is targeting more than $450 million in productivity savings for the full year. 

NAB’s strong earnings growth and profitability savings plans could help it outperform global peers, especially if interest rates begin to rise again. 

The post 3 Australian bank stocks that could outperform global peers again in 2026 and 2027 appeared first on The Motley Fool Australia.

More reading

• Forget NAB shares, this ASX fintech stock could double in value
• 2 ASX stocks to buy and 1 to sell
• The easiest way to earn $1,000 a month in ASX dividends
• Passive income: How much would I need to invest in ASX shares to earn $1,000 every month?
• How much have investors made in big four bank shares over the past year?

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

ASX mining shares are leading the market recovery today, with money flowing out of the energy sector and into materials.

The ASX materials sector, which is dominated by the mega miners, is 2.3% higher, while the energy sector is down 3.5%.

The S&P/ASX 200 Index (ASX: XJO) is in recovery mode today, up 1%, after a surge in oil prices created a $90 billion rout yesterday.

While the war in Iran is dominating headlines, longer-term trends in our investment markets continue to play out.

One of them is a new commodities ‘super cycle’ that seems to be taking strong hold of our share market.

So, let’s dig into the question posed in our headline today.

Is Australia now in a new mining boom?

Australia’s last mining boom, from the early 2000s through to 2013, was primarily driven by China’s rapid industrialisation.

This period saw a big increase in iron ore and coal prices, major investment in mining infrastructure, and a substantial lift in exports.

It appears we’ve now entered a new mining boom, but this one is not going to centre on iron ore, nor demand from just China.

This boom will centre on critical materials with industrial applications tied to electrification, power generation, and energy security.

Demand will come from many nations, underpinned by structural changes in the global economy that will take decades to play out.

Paul Wong and Jacob White from Sprott Asset Management name copper, uranium, lithium, rare earths, and silver as the commodities to watch.

In an article, Wong and White said:

[This is] a new kind of commodity supercycle.

The emerging bull market is not repeating past cycles, and is being driven by deglobalization, fiscal dominance and the global push for energy, infrastructure and strategic, domestic supply chains.

AMP Ltd (ASX: AMP) Head of Investment Strategy and Chief Economist, Shane Oliver, also says we are embarking on “a new super cycle in commodities”.

In a recent article, Dr Oliver said:

… the commodity price slump from their 2008-2011 highs looks to be over with commodities embarking on a new super cycle bull market driven by constrained supply after low levels of investment and electrification and rising defence spending driving increased demand for metals.

This will benefit Australia’s resource stocks.

Iron ore is likely to feature less this time around partly reflecting slowing urbanisation in China and its property slump.

Commodity prices and ASX mining shares

The price of gold, silver, copper, lithium, and many critical minerals skyrocketed last year amid rising demand and low supply.

This pushed up the prices and returns of scores of ASX mining shares, with materials the top sector of 2025, returning a staggering 36%.

Gold is part of this mining boom, but for different reasons. Gold is benefiting from central bank buying and safe-haven investor demand.

Wong and White added:

After years of shrinking representation in global portfolios, commodities and resource equities have broken out above multi-year trading ranges, an action that, in our view, marks the developing stages of the new commodity bull market.

Impact on ASX mining shares

The new mining boom is already playing out in the Australian share market.

The BHP Group Ltd (ASX: BHP) share price is up 31% over 12 months and 12.2% in the YTD.

BHP shares recently soared to $59.39 apiece, their highest level in 140 years, and the miner is once again the market’s largest company.

Many other ASX mining shares have also hit new records.

These include Rio Tinto Ltd (ASX: RIO) shares at $170.71 per share and Northern Star Resources Ltd (ASX: NST) at $31.96 per share.

Take a look at the 12-month change in these ASX mining shares below.

ASX mining share	Metals and minerals	12-month share price change
BHP Group Ltd (ASX: BHP)	Iron ore, copper, met coal	31%
Fortescue Ltd (ASX: FMG)	Iron ore, copper	21%
Rio Tinto Ltd (ASX: RIO)	Iron ore, copper, lithium	30%
Northern Star Resources Ltd (ASX: NST)	Gold	51%
Evolution Mining Ltd (ASX: EVN)	Gold	124%
South32 Ltd (ASX: S32)	Aluminium, alumina, copper, silver	20%
Lynas Rare Earths Ltd (ASX: LYC)	Rare earths	151%
Newmont Corporation CDI (ASX: NEM)	Gold	135%
PLS Group Ltd (ASX: PLS)	Lithium	156%
Mineral Resources Ltd (ASX: MIN)	Iron ore, lithium	164%
Sandfire Resources Ltd (ASX: SFR)	Copper	49%
IGO Ltd (ASX: IGO)	Lithium and nickel	99%
Liontown Ltd (ASX: LTR)	Lithium	152%

Foolish Takeaway

Wong and White emphasise that this mining boom will not be broad-based, and targeted exposure is important.

They said:

Broad commodity exposure may lack focus on the critical materials currently leading this cycle.

Investors are increasingly focusing on companies tied directly to critical materials and structural demand trends.

As an example, Wong and White point out that copper miners are outperforming diversified miners.

We can see this by comparing the performance of Global X Copper Miners AUD ETF (ASX: WIRE), up 84% over 12 months, to diversified ETF BetaShares Australian Resources Sector ETF (ASX: QRE), up 42%, and VanEck Australian Resources ETF (ASX: MVR), up 48%.

Wong and White conclude:

We see considerable room for continued outperformance from select commodities and the associated equities. 

The post Australia’s next great ASX mining boom: Are we already in it? appeared first on The Motley Fool Australia.

More reading

• Own BHP stock? Here’s why the miner is down 13% in a week
• Fortescue shares lifting off today amid big copper news
• 3 ASX ETFs set to benefit from the AI revolution
• Should investors buy the dip on these ASX 200 shares?
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Bronwyn Allen has positions in BHP Group and Global X Copper Miners ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.