Tag: Stock pick

Oil prices have pulled back after an explosive rally driven by the escalating conflict in the Middle East.

Just days ago, crude surged to its highest level in years as markets feared supply disruptions across one of the world’s key energy regions.

Now prices are easing, and the Betashares Crude Oil Index Currency Hedged Complex ETF (ASX: OOO) is falling heavily in response.

At the time of writing, the OOO share price is $7.95, down 21.83%.

Let’s take a closer look at what just happened.

Oil prices cool after huge surge

Oil prices have been extremely volatile in recent days amid geopolitical tensions that have rattled energy markets.

According to Trading Economics, West Texas Intermediate (WTI) crude is currently trading around US$89.15 per barrel, down 1.93% today.

That marks a significant reversal after prices surged earlier this week.

On Monday, oil prices briefly jumped close to US$120 per barrel, the highest point since the energy shock following Russia’s invasion of Ukraine in 2022.

The rally was driven by escalating tensions between the United States, Israel, and Iran, which raised fears that global oil supply could be severely disrupted.

In particular, traders have been watching the Strait of Hormuz, a narrow shipping channel that carries a huge portion of the world’s crude supply.

Around 20 million barrels of oil per day move through the waterway, making it one of the most important energy chokepoints on the planet.

Changing expectations hit oil prices

The recent decline appears to be linked to changing expectations about how the conflict may unfold.

Reports suggest the United States believes its military operations against Iran may be nearing completion. There have also been signs that diplomatic discussions could begin in the coming days.

At the same time, global policymakers have signalled they may act if oil prices remain high.

Finance ministers from the Group of Seven (G7) countries have reportedly discussed the possibility of releasing oil from strategic reserves if necessary to stabilise markets.

This could help stabilise markets and ease concerns about shortages.

After oil surged more than 30% in a short period, some investors also appear to be taking profits.

Why the Betashares Crude Oil ETF is sliding

The Betashares Crude Oil ETF gives investors exposure to movements in global crude oil prices through futures contracts.

Because of this structure, the ETF typically moves closely in line with changes in the oil price.

When oil surged earlier this week, the fund rallied strongly as investors rushed to gain exposure to the commodity.

However, today’s drop in crude prices has triggered a strong reversal.

With oil falling back toward US$90 per barrel, the ETF has come under heavy selling pressure.

The 21.83% decline in the fund highlights how quickly sentiment can change in energy markets.

What investors may be watching next

Despite the latest fall, oil prices remain significantly higher than they were just weeks ago.

WTI crude has still climbed more than 30% since late February, highlighting the enormous impact geopolitical tensions can have on energy markets.

The next move will likely depend on developments in the Middle East and whether shipping routes remain open.

If supply disruptions emerge, oil prices could jump once more.

The post Oil tumbles after nearing US$120. Here’s why prices are pulling back appeared first on The Motley Fool Australia.

More reading

• Oil rockets past US$100 as Iran war escalates. This ASX oil ETF is surging

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

When the economic outlook is uncertain for the ASX share market and the economy as a whole, it’s understandable to want to invest in businesses with defensive earnings and inflation protection.

If a business’ earnings are relatively stable and predictable, then the share price may be more resilient during times like this. In fact, if inflation does pick up, then the following companies could see their revenue (and earnings) growth accelerate.

I like the three ASX shares below for their defensive earnings.

Coles Group Ltd (ASX: COL)

Food (and liquor) retail seems like a very defensive sector, in my view. Food is an essential product, and Coles has significant scale advantages compared to nearly every other business it’s competing against in Australia. I expect customer demand will hold up in the coming months.

Coles has come under pressure for how the last inflationary period played out. But I think the company will have learned lessons and will handle inflation a little differently, while largely protecting its margins.

The company’s sales and earnings continue to rise, helping fund larger dividend payments.

With its impressive product range of own-brand items and the new advanced warehouses, the company will continue unlocking a higher profit margin.

I expect Coles’ earnings will be higher in two years, which is the minimum that I think investors should focus on.

Telstra Group Ltd (ASX: TLS)

Telstra provides subscribers with a market-leading mobile network with the widest coverage and the most valuable spectrum assets.

The ASX telco share‘s offering of allowing Australians to connect to the internet with their devices seems to be essential these days. Aussies use the internet for a lot of things, like entertainment, communication, learning, work, shopping, banking, connecting with government services, and plenty more.

Over the last few years, Telstra has seen its mobile subscriber numbers and average revenue per user (ARPU) steadily climb, with the ASX telco share implementing inflation-linked price increases.

If inflation were to pick up, I’d expect Telstra to implement more price rises. The operating leverage can come through as it spreads its costs across more users. I’m also excited to see the ongoing progress of wireless broadband for customers, meaning it’s capturing the margin that currently goes to the NBN.

Additionally, the business hiked its dividend by more than I was expecting, which I think bodes well for future shareholder payouts in upcoming results.

APA Group (ASX: APA)

Energy is one of the most important aspects of the Australian economy – households and businesses alike need energy throughout the year.

APA’s gas pipeline network accounts for half of the country’s gas consumption. Its gas capacity is expected to grow in the coming years as the business invests in adding pipelines to increase the ability to take gas from sources of supply to where it’s needed.

I think the ASX share will continue seeing cash flow growth as it expands its portfolio across a number of areas, including renewable energy, gas-powered energy generation, and electricity transmission.

As a bonus, the business has hiked its annual distribution every year for the past two decades. At the time of writing, APA offers a FY26 distribution yield of 6.3%.

The business offers inflation protection because a large majority of its revenue is linked to inflation. While higher interest rates may be detrimental to APA’s asset value, the increase in revenue is a useful boost for long-term earnings.

The post 3 ASX shares I would buy to protect against a recession 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 positions in and has recommended Apa Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Analysts have been busy running the rule over several ASX shares this week.

Let’s see what they are saying about these shares, courtesy of The Bull. Here’s what you need to know:

Guzman Y Gomez Ltd (ASX: GYG)

The team at Red Leaf Securities is bearish on this Mexican quick service restaurant operator and has named it as a sell this week.

It feels that the company’s shares are expensive, especially given how much value the market is placing on its ambitious global expansion. It explains:

GYG is a Mexican themed restaurant chain. We retain a sell rating despite Australian brand strength. Expansion in the United States is in its early stages and carries execution risk. Challenges include increasing labour costs, operating costs and competition.

Revenue and profit growth were overshadowed by share price weakness after the company released its first half result in fiscal year 2026 on February 20. In our view, investors are paying a premium for ambitious long term store targets. In a higher cost-of-capital environment, the valuation leaves little margin for error.

Suncorp Group Ltd (ASX: SUN)

Another ASX share that Red Leaf Securities has been looking at is insurance giant Suncorp.

It has concerns that the company’s margins have peaked and believes it could be vulnerable to competitive pricing pressure. As a result, it has named Suncorp shares as a sell. It explains:

Suncorp provides insurance products and services. While premium rate increases have helped, we believe margin expansion is peaking. Earnings are exposed to claims inflation, natural catastrophe volatility and regulatory scrutiny. Half year results to December 31, 2025 highlighted these risks. Profit after tax of $263 million was down from $1.1 billion in the prior corresponding period.

Cash earnings were hit by higher natural hazard costs and the interim dividend was reduced. Much of the recent improvement reflects cyclical conditions rather than structural change. In our view, the valuation is vulnerable given competitive pricing pressure and rising affordability concerns.

Worley Ltd (ASX: WOR)

Over at EnviroInvest, its analysts think that Worley shares are a buy.

They like the engineering services company due to its exposure to sustainability and energy transition work. EnviroInvest said:

Worley provides engineering and project services across energy, chemicals and resources. Aggregated revenue of $6.3 billion in the first half of fiscal year 2026 was up 5.4 per cent on the prior corresponding period. Underlying earnings before interest, tax and amortisation of $377 million was up 0.3 per cent. More than half of new awards were linked to sustainability and energy transition work. Legacy hydrocarbons exposure remains, but capital is increasingly directed to low carbon infrastructure.

The post Buy, hold, sell: Guzman Y Gomez, Worley, and Suncorp shares appeared first on The Motley Fool Australia.

More reading

• Why I just invested in these 2 exciting ASX shares
• Buy, hold, sell: Guzman Y Gomez, Lovisa, and Newmont shares
• 32 ASX shares about to go ex-dividend
• Here are the top 10 ASX 200 shares today
• These ASX 200 stocks are trading close to 52 week lows: Is it time to buy low?

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

The Helia Group Ltd (ASX: HLI) share price fell off a cliff shortly after the market opened on Tuesday.

Helia shares dropped 19.1% to $4.70 in early trading, a dramatic decline on yesterday’s closing value of $5.81.

What’s going on with this ASX 200 financial share today?

Helia share price dives as broader market recovers

The S&P/ASX 200 Index (ASX: XJO) is rebounding on Tuesday after an approximate $90 billion wipeout yesterday.

The ASX 200 fell 3.2% after a 25% surge in the Brent oil price to nearly $120 per barrel as the war in Iran continued.

The market is recovering today after US President Donald Trump said it may all be over shortly, and the oil price retreated to US$89.

But today’s rising tide is not lifting all boats — least of all the Helia share price, which is the biggest faller of the ASX 200 this morning.

But there’s a simple reason for the decline.

What’s driving this share price crash?

It’s ex-dividend day.

It’s typical for a company’s share price to fall on ex-dividend day because the stock is no longer trading with the next payment attached.

That means it’s fundamentally less valuable.

Earnings season ended on 28 February, and Helia is among 32 ASX shares with ex-dividend dates this week.

Helia will pay a final fully franked dividend of 16 cents per share plus a partially franked special dividend of 67 cents per share for FY25.

Pay day is 26 March.

The Helia share price closed at $5.81 yesterday.

Based on that price, the next dividend represents a whopping 14% dividend yield before the impact of franking is added on top.

So it’s not surprising to see the Helia share price dive today. That juicy dividend payout is no longer attached to Helia stock.

Re-cap on FY25 results

Last month, the mortgage insurer reported statutory net profit after tax (NPAT) of $244.9 million for FY25, up 5.8% on FY24.

On an underlying basis, net profit rose 12% to $247 million. Underlying diluted earnings per share (EPS) lifted 18% to 89.9 cents.

Underlying return on equity improved to 23.5%.

Helia ended FY25 with a prescribed capital amount coverage ratio of 2.03x, which is higher than the required regulatory minimums.

The strong balance sheet, a reduction in costs, and growth in premiums enabled the board to declare a big dividend this time around.

The company said:

Dividends in respect of the FY25 financial year total $343 million and are comprised of a 100% payout of FY25 Statutory NPAT and a reduction of approximately $100 million in the Company’s capital base.

Helia targets a stable fully franked ordinary dividend and continues to explore options to return excess capital in an efficient and effective manner to shareholders.

The post Why did the Helia share price just crash 19%? appeared first on The Motley Fool Australia.

More reading

• 32 ASX shares about to go ex-dividend
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• Helia shares rocket 15% on full-year results. Here’s why
• 3 ASX shares tipped to fall more than 30% in 2026
• Here are the top 10 ASX 200 shares today

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

S&P/ASX 200 Index (ASX: XJO) gold stock Pantoro Gold Ltd (ASX: PNR) is having a day to forget.

Pantoro shares closed yesterday trading for $4.89 each. In early morning trade on Tuesday, shares crashed to $3.83, down 21.7%. After some likely bargain hunting, in later morning trade shares are changing hands for $4.04 apiece, down 17.4%.

For some context, the ASX 200 is up 1.6% at this same time.

Despite today’s big sell-off, Pantoro shares remain up 64% since this time last year. And investors who bought the ASX 200 gold stock in early March two years ago will still be sitting on gains of 366%.

Now, here’s what’s got investors reaching for their sell buttons on Tuesday.

Pantoro Gold more than doubles half-year earnings

After market close on Monday, Pantoro Gold released its half-year results (H1 FY 2026).

The ASX 200 gold stock is focused on its Norseman Gold Project, located in Western Australia.

And it’s not the past half-year results that are putting the stock under pressure today.

Over the six-month period, Pantoro reported gold production of 41,623 ounces.

Revenue came in at $238.6 million, up 55.5% from H1 FY 2025. And earnings before interest, taxes, depreciation and amortisation (EBITDA) of $135.5 million increased by 112.4%.

Net cash from operating activities also increased sharply, up 128.7% to $128.3 million.

And on the bottom line, Pantoro reported a gross profit of $85.1 million, up 467% year on year.

Turning to the balance sheet, the ASX 200 gold stock held a cash and gold balance of $216.5 million at the end of the half year, up from $119.3 million at the end of H1 FY 2025.

Pantoro Gold is debt-free and remains completely unhedged.

The half year also saw Pantoro continue exploration and extensional drilling as part of its strategy to develop multiple underground mines and drive production growth in FY 2027 and FY 2028. H1 FY 2026 saw Pantoro drill 91,962 metres and spend $63.4 million on exploration and major capital growth projects.

Which brings us back to…

ASX 200 gold stock hammered on guidance reduction

The reason Pantoro Gold shares look to be under heavy selling pressure today is management’s reduced full-year production guidance.

When the ASX 200 gold stock released its December quarterly update on 22 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.

After market close yesterday, management noted:

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…

The planned transition to a new underground mining contractor at the OK Underground Mine during the final quarter of the year is expected to cause some short-term interruptions…

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

The post Guess which high-flying ASX 200 gold stock is crashing 22% today on weather woes appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I would buy to protect against a recession
• Buy, hold, sell: Guzman Y Gomez, Worley, and Suncorp shares
• Why did the Helia share price just crash 19%?
• This ASX gold stock is trading higher after greenlighting expansion plans
• Why is this ASX 200 share charging 7% 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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Westgold Resources Ltd (ASX: WGX) are trading higher after the company pulled the trigger on a $145 million expansion of its Higginsville processing hub in Western Australia.

The company said in a statement to the ASX that the decision followed a definitive feasibility study on the plan, and it marked a major step towards the company’s strategy to enhance cash flow by increasing production and reducing operating costs.

Production up and costs down

The Higginsville expansion project will increase Westgold’s Southern Goldfields gold production by about 60,000 ounces per year, and reduce processing costs by 24% to $34 per tonne of ore.

Westgold said the expansion had a pre-tax payback period of 21 months at a gold price of $4905, or just 12 months if the current spot gold price was used.

The expansion includes a new primary crusher, a new mill, a pebble crusher, and additional leaching tanks to take processing capacity to 2.6 million tonnes of ore per year, up 62.5%.

The new infrastructure would also support future expansion to 4 million tonnes of ore per year, the company said.

Westgold Managing Director Wayne Branwell said the expansion made sense.

The Higginsville Expansion Plan (HXP) is the next step to drive down unit costs and increase group free cash flow from the Southern Goldfields. By expanding the Higginsville mill capacity to a nominal 2.6Mtpa we are creating a more productive, lower-cost processing hub to match the growing outputs from our Beta Hunt mine. This will see us deliver higher group gold production at a lower cost, in line with our 3-Year Outlook.

Mr Bramwell said the definitive feasibility study showed the expansion plan was robust, but importantly, it was designed with the future in mind.

Strategically, the HXP has been designed with future growth in mind. While nameplate capacity of the enhanced flowsheet stands at 2.6Mtpa, many of the upgrades within the flowsheet such as the ore conveying systems, jaw crusher and SAG mill apron feeder are designed to support further expansion to 4Mtpa. This ensures milling capacity is not an impediment to future mine expansions at prospects such as the Fletcher and Mason Zones at Beta Hunt. With the study complete and final investment decision approved, our focus now shifts to securing long-lead items, progressing EPC tendering and maintaining operational continuity throughout the build. The timing of the HXP aligns strategically with the anticipated growth in mining rates from the Southern Goldfields, ensuring that expanded processing capacity is ready to accommodate increased ore delivery from Beta Hunt.

The current expansion plans are expected to boost production from mid-2028.

Westgold Resources shares were 4.2% higher in early trade at $6.50. The company was valued at $5.91 billion at the close of trade on Monday.   

The post This ASX gold stock is trading higher after greenlighting expansion plans appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Cameron England 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.

Clarity Pharmaceuticals Ltd (ASX: CU6) shares are having a strong session on Tuesday.

At the time of writing, the ASX 200 share is up 7% to $3.52 after the company released a clinical trial update.

What did the ASX 200 share announce?

This morning, Clarity revealed that its registrational Phase III AMPLIFY clinical trial has now exceeded its target number of participants.

The AMPLIFY trial is investigating the diagnostic performance of the company’s 64Cu-SAR-bisPSMA PET imaging agent in detecting recurrence of prostate cancer in men whose prostate-specific antigen (PSA) levels are rising following initial treatment.

According to the release, the trial has now consented more participants than originally planned following strong demand from clinical trial sites across the United States and Australia. As a result, consenting of new patients has stopped while the ASX 200 share finalises screening and confirms the final enrolment numbers.

AMPLIFY began in May 2025 and originally aimed to enrol approximately 220 participants. The study is being conducted across multiple clinical sites and will assess imaging at two different timepoints, on the same day and roughly 24 hours after administration.

The results from this pivotal study are expected to support a future application to the US Food and Drug Administration (FDA) seeking approval of 64Cu-SAR-bisPSMA as a new diagnostic imaging agent for prostate cancer recurrence.

Why this milestone matters

Clinical trials like AMPLIFY are an important step in the regulatory pathway for new medical products. By successfully recruiting the required number of participants, the ASX 200 share has moved a step closer to potentially commercialising its imaging agent in the United States.

The AMPLIFY results will also complement earlier studies, including the Phase I/II COBRA and Phase II Co-PSMA trials, which demonstrated strong imaging capabilities compared with existing standard-of-care PSMA PET scans.

The company’s executive chair, Dr Alan Taylor commented:

We are about to enter the realm of a select few Australian companies who have developed a drug at the benchtop of Australian science and completed an international Phase III clinical trial with that drug, taking us one step closer to commercialisation. Our team is excited to have reached this initial recruitment milestone in the AMPLIFY trial in just 9 months since we imaged our first participant in the study. This is no small feat, given we achieved this phenomenal pace of recruitment despite three SOC products already in the market, commercialised by four different companies.

True to our commitment to the highest standards of clinical research, we recruited participants at numerous different sites across the US and Australia to ensure the trial reflected the broad patient population, real-world clinical settings and various PET cameras in which this product is intended to be used. This strategy required careful planning to allow for all participating sites to contribute to the recruitment, based on allocation of participant numbers to be enrolled per site, resulting in what we believe will be a robust and well-balanced dataset and supporting the integrity and quality of the AMPLIFY study.

The post Why is this ASX 200 share charging 7% higher today? appeared first on The Motley Fool Australia.

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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.

These 2 S&P/ASX 200 Index (ASX: XJO) shares explored new depths on Monday.

Treasury Wine Estates Ltd (ASX: TWE) and Lendlease Group Ltd (ASX: LLC) fell 4.2% and 3.1% respectively, sliding to fresh 52-week lows. Treasury Wine has lost 58% of its value over the past 12 months, while Lendlease has dropped 38% over the same period.

Now the big question is: Can these two ASX 200 shares stage a recovery?

Treasury Wine Estates: US and China headwinds

The ASX 200 share has been under pressure as weaker US demand for luxury wine weighs on sales. Elevated inventories and shifting consumer habits, including moderation trends and softer discretionary spending, have also created headwinds.

The company has additionally been navigating the after-effects of China’s earlier tariffs on Australian wine. Although those tariffs have been removed, rebuilding brand momentum and distribution in China will take time.

Despite this, the ASX 200 wine share still owns globally recognised brands such as Penfolds. Management has also been pushing deeper into the luxury and premium segments, which typically deliver stronger margins.

If demand improves and the Chinese market continues reopening, the strategy could support a recovery in earnings over time.

Analysts remain divided on the ASX 200 share, with most of them sitting on the fence. The average 12-month price target is $5.41, implying a 31% upside from the current share price of $4.13.

Lendlease: Structural global property challenges

Meanwhile, Lendlease has been grappling with structural challenges across global property markets. Higher interest rates have pressured real estate valuations and made development projects more expensive to fund.

At the same time, the ASX 200 share has been undertaking a sweeping strategic reset, selling assets and simplifying its operations to reduce risk and strengthen its balance sheet.

Even so, Lendlease retains significant expertise in large-scale urban development, with projects spanning Australia, Europe, and the US. The company is also focusing on recycling capital and concentrating on markets where it believes it has the strongest competitive advantage.

If property markets stabilise and the restructuring delivers the intended efficiencies, the ASX 200 share could emerge leaner and better positioned for growth.

Despite the share price slump, analysts still see upside for the property stock if the restructuring delivers improved returns.

Broker forecasts currently place the average 12-month price target at around $5.30, implying potential upside of about 44% from recent levels if property markets stabilise.

Foolish Takeaway

Broker sentiment toward the two ASX 200 shares is mixed. Some analysts see value emerging after their steep share price declines, while others remain cautious until there is clearer evidence that earnings and market conditions are improving.

For investors with a long-term mindset, both Treasury Wine Estates and Lendlease could yet prove to be turnaround stories, but patience may be required before confidence fully returns.

The post Can these 2 ASX 200 shares bounce back after hitting fresh lows? appeared first on The Motley Fool Australia.

More reading

• Why I think these cheap ASX shares could be strong buys
• 3 ASX shares down 30% (or more) to buy right now
• 3 shares dumped from the ASX 200 index (and 3 new additions)
• 3 ASX 200 shares trading well below brokers’ targets
• Which billionaire has upped his stake in Treasury Wine Estates?

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 Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. 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 are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) iron ore giant closed yesterday trading for $19.05. In early morning trade on Tuesday, shares are changing hands for $19.32 apiece, up 1.4%.

For some context, the ASX 200 is up 1.3% at this same time.

The Aussie mining giant should be enjoying some modest tailwinds today from the overnight uptick in global iron ore prices. Iron ore gained 1.2% to be trading at US$102.80 per tonne.

Before market open, investors also learned that Fortescue is succeeding in growing its copper footprint. The miner reported that it has now completed the acquisition of all the shares it did not yet already own in Canadian-listed Alta Copper Corp (TSX: ATCU).

The right copper assets could help boost Fortescue shares longer term, with demand for the red metal widely forecast to remain strong over the decade ahead amid the ongoing global push towards electrification.

Copper is currently trading for US$12,862 per tonne, up 35% over 12 months.

Now, here’s what’s happening with Fortescue and Alta Copper.

Fortescue shares increasing copper exposure

Fortescue first announced its intention to acquire the remaining 64% of Alta Copper on 15 December.

This morning, Fortescue confirmed that its wholly owned subsidiary, Nascent Exploration, has completed that acquisition.

Alta Copper shareholders received C$1.40 per share (AU$1.45) in cash, implying a total equity value of approximately C$139 million.

Offering a potential longer-term boost to Fortescue shares, the ASX 200 miner is now the 100% owner of the Canariaco Copper Project. Located in Peru, Canariaco covers 91 square kilometres of what management labelled “highly prospective tenure” with several deposits.

Fortescue said it is well placed to advance the project, with the Aussie miner having been active in Latin America since 2018. The company also pointed to its well-established technical, permitting, and community engagement expertise.

What did management say?

Commenting on the acquisition that looks to be offering a lift to Fortescue shares, Growth and Energy CEO Gus Pichot said, “Copper is a core pillar of Fortescue’s growth and diversification strategy and the acquisition of Alta Copper builds on our existing critical minerals exploration activity.”

Pichot added:

In particular, the Canariaco Copper Project strengthens Fortescue’s copper portfolio and provides exposure to a significant undeveloped resource within an emerging porphyry corridor in Northern Peru.

Our immediate focus will be on technical reviews, community engagement and advancing the studies required to inform future development decisions.

With today’s intraday moves factored in, Fortescue shares are up 22.1% over 12 months, not including dividends.

The post Fortescue shares lifting off today amid big copper news appeared first on The Motley Fool Australia.

More reading

• 1 beaten-down ASX share to consider buying today, and 5 I’m shunning for now
• Here’s the earnings forecast out to 2030 for Fortescue shares
• 2 ASX 200 shares that turned a $5,000 investment into $10 million
• Did you catch what happened with the Fortescue share price in February?
• Here’s the dividend forecast out to 2030 for Fortescue 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 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.

I always like to look across the ASX share market for opportunities when there is a sell-off like we’ve seen in recent times.

In the technology space, AI worries have sent some valuations by down more than 50%, which could be very enticing for brave, bargain-hunting investors. Share prices are starting to recover in the tech space.

It’s not common for most of the share market to go down simultaneously, which is when indiscriminate selling occurs. Valuations become cheaper and too low to ignore. That’s when clear opportunities can arise.

I put some of my investing money into the following ASX share names.

Guzman Y Gomez Ltd (ASX: GYG)

Guzman Y Gomez is one of the rapidly growing quick service restaurant (QSR) operators in Australia. It already has more than 200 locations in Australia, as well as a few locations in Singapore, Japan and the US.

The Guzman Y Gomez share price has fallen significantly over the past six months, yet it’s generating more network sales than ever.

Its FY26 half-year result did not excite the market. Total network sales increased by 18%, operating profit (EBITDA) grew 29.6% and net profit after tax (NPAT) increased by 44.9%.

While the ASX share’s overall profitability is increasing, the business is investing in expansion in the US, which is currently seeing operating losses. It’s aiming to grow the sales at its US locations, which will then make them profitable and demonstrate ‘proof of concept’.

I’m not sure what its short-term growth numbers will be like, but I like how it continues to grow its Australian and global restaurant networks. Over the long-term, it’s aiming for 1,000 Guzman Y Gomez locations in Australia, which gives the business significant growth potential over the next two decades.

As a bonus, it’s paying dividends to shareholders. So, as the company’s earnings increase, its dividend payouts can increase as well.

According to the projection on Commsec, the business could generate earnings per share (EPS) of 33.7 cents in FY27 and 46.6 cents in FY28. That means the Guzman Y Gomez share price is trading at 57x FY27’s estimated earnings and 41x FY28’s estimated earnings, at the time of writing.  

L1 Long Short Fund Ltd (ASX: LSF)

The other ASX share investment I made last week was this listed investment company (LIC). It invests in a mixture of ASX shares and international shares on behalf of shareholders.

One of the reasons I like it is because it utilises both long-term investing and short-selling to generate investment returns, allowing it to create positive portfolio profits in all market conditions.

At a time of elevated volatility, there’s an opportunity to pick up bargains in the local and global market. I like how the L1 team invest, particularly with the focus on businesses with lower price/earnings (P/E) ratios.

In its latest monthly update, it said it’s seeing opportunities in areas like infrastructure, golds, US cyclicals, uranium and ‘quality value’.

L1 said:

…we are finding more compelling opportunities in ‘Value’ stocks. We believe low P/E stocks will strongly outperform high P/E stocks (in general) over the coming 1-2 years, which the portfolio is well positioned to benefit from.

As a bonus, the ASX share is steadily increasing its dividend. I’m currently predicting the grossed-up dividend yield for FY26 could be 4.75%, including franking credits, at the time of writing.

The post Why I just invested in these 2 exciting ASX shares appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Guzman Y Gomez, Lovisa, and Newmont shares
• 32 ASX shares about to go ex-dividend
• Here are the top 10 ASX 200 shares today
• These ASX 200 stocks are trading close to 52 week lows: Is it time to buy low?
• These are the 10 most shorted ASX shares

Motley Fool contributor Tristan Harrison has positions in Guzman Y Gomez and L1 Long Short Fund. 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.