Tag: Stock pick

The Reliance Worldwide Corporation Ltd (ASX: RWC) share price is in focus today after reporting half-year revenue of US$645.4 million, down 4.6%, and a net profit after tax of US$43.7 million, a decrease of 34.9% from the prior corresponding period.

What did Reliance Worldwide report?

• Revenue from ordinary activities: US$645.4 million, down 4.6% on the prior period
• Reported net profit after tax (NPAT): US$43.7 million, down 34.9%
• Reported EBITDA: US$111.1 million, down 22.2%
• Interim unfranked dividend: US2.0 cents per share (paid as 2.8206 Australian cents per share)
• On-market share buy-back of approximately US$15.3 million announced
• Basic earnings per share: 5.7 US cents, down 33.7%

What else do investors need to know?

The half-year results were impacted by increased US tariffs and weaker demand in the US and UK. The company noted that net sales in the Americas dropped by 7.2%, while the Asia Pacific region saw a mild 0.7% decline. EMEA (Europe, Middle East and Africa) sales rose slightly by 2.4%.

Despite a challenging environment, RWC achieved cost savings of US$4.4 million through better sourcing, manufacturing efficiencies, and distribution improvements. The interim total shareholder distribution of US4.0 cents per share, split evenly between a cash dividend and a buy-back, is above the company’s usual payout ratio due to lower NPAT this period.

What’s next for Reliance Worldwide?

Management has reaffirmed its commitment to distributing 40–60% of annual NPAT via both dividends and buy-backs, highlighting confidence in the company’s long-term strategy. The board continues to see value in returning capital to shareholders, particularly through buy-backs in the current share price environment.

The business is focusing on cost controls, and improving operational and manufacturing efficiency. The company remains alert to global economic pressures, and is ready to adjust as trading conditions shift across its major regions.

Reliance Worldwide share price snapshot

Over the past 12 months, Reliance Worldwide shares have declined 28%, trailing the S&P/ASX 200 Index (ASX: XJO) which haas risen 5% over the same period.

View Original Announcement

The post Reliance Worldwide half-year earnings: profit falls, dividend steady appeared first on The Motley Fool Australia.

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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.

Morgans has been very busy running the rule over a number of ASX shares this month.

Three that the broker has been looking at are in this article. Let’s see whether it rates them as buys, holds, or sells. Here’s what you need to know:

Cochlear Ltd (ASX: COH)

Morgans was a touch disappointed with this hearing solutions company’s half-year results. It notes that the Nucleus Nexa system was to blame, with contracting taking longer than anticipated.

In response to its results, the broker has retained its hold rating with a trimmed price target of $214.93. It said:

The 1H26 result was softer than expected, with revenue, margins and profit negatively impacted mainly on longer than anticipated contracting for the newly launched Nucleus Nexa system (Nexa). Soft Cochlear Implants (CI) growth mis-matched sales, reflecting unfavourable emerging market mix and delayed developed market momentum, while Services was flat and Acoustics surprised to downside on increased competitive pressures.

While Nexa adoption accelerated late in the half and management maintained FY26 guidance, but now is targeting the lower end of the range, it increases reliance on a strong 2H recovery which appears optimistic, especially in light of flat GM and FX headwinds. We adjust our FY26-28 estimates and lower our target price to A$214.93. We maintain a cautious stance, but move to HOLD on share weakness.

Deep Yellow Ltd (ASX: DYL)

Another ASX share that Morgans has been looking at is uranium developer Deep Yellow.

The broker has made some changes to its financial model to reflect first production timing, its cash balance, and its uranium price assumptions. This has resulted in the broker retaining its speculative buy rating with an improved price target of $2.56. It said:

We update our outlook and forecasts for DYL to reflect a series of changes at the corporate, project and macro level since our last update. Key revisions include adjustments to first production timing at Tumas, cash position and an uplift to our bull-case uranium price assumption. We maintain our SPECULATIVE BUY rating and increase our price target to A$2.56ps (from A$1.92ps).

Webjet Group Ltd (ASX: WJL)

A third ASX share Morgans has been looking at is online travel agent Webjet. It notes that takeover talks have ended and Webjet has downgraded its earnings guidance.

The broker appears to believe that this may not be the last downgrade and has concerns over cyclical and structural threats. As a result, it has put a hold rating and 61 cents price target on its shares. It said:

WJL announced that potential takeover discussions with both Helloworld (HLO) and BGH Capital have ceased. WJL has downgraded its FY26 EBITDA guidance by another 7-9%. Earnings uncertainty remains high given cyclical and structural threats and at a time when WJL is investing in its business for longer term success. Given WJL is no longer in play, focus returns to the fundamentals of the business which look challenged in the near term. We retain a Hold rating with a new price target of A$0.61.

The post What is Morgans saying about Cochlear, Deep Yellow, and Webjet shares? appeared first on The Motley Fool Australia.

More reading

• Where to next for Webjet shares after a 26% crash?
• Leading brokers name 3 ASX shares to buy today
• Where to from here for Cochlear shares?
• Utilities outperform as ASX 200 ascends to a 3-month high
• Why Austal, Cochlear, Nick Scali, and WiseTech shares are tumbling today

Motley Fool contributor James Mickleboro has positions in Cochlear. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Markets don’t move in straight lines. Some weeks it is interest rates spooking investors. Other weeks it is AI disruption, geopolitics, or earnings season surprises. But while headlines change constantly, the characteristics that drive long-term wealth creation rarely do.

If I were putting fresh money to work today, these are three ASX shares I’d feel comfortable buying and holding through the volatility.

Goodman Group (ASX: GMG)

The first ASX share I would buy is Goodman Group. It sits at the heart of logistics, ecommerce, and data infrastructure, developing and owning industrial properties in key infill locations across major global cities.

While property can be cyclical, Goodman’s strategy focuses on high-demand sites that are difficult to replicate. That scarcity supports long-term value creation.

Importantly, the group has been expanding its exposure to data centres, an area benefiting from structural growth in cloud computing and artificial intelligence. That gives Goodman a foot in both physical logistics and digital infrastructure, which bodes well for its earnings growth in the coming years.

ResMed Inc. (ASX: RMD)

Another ASX share I would buy is ResMed. ResMed operates in sleep apnoea and respiratory care, which are two areas supported by long-term demographic trends. Ageing populations, rising obesity rates, and greater awareness of sleep disorders are driving demand and look set to continue doing so for a long time to come.

In fact, the company estimates that it has a total addressable market in excess of 1 billion people. This gives it a significant growth runway over the next decade and beyond.

In addition, ResMed has evolved beyond hardware. Its growing software ecosystem connects patients, healthcare providers, and insurers, creating recurring revenue and deeper customer relationships.

TechnologyOne Ltd (ASX: TNE)

A final ASX share I’d consider is TechnologyOne. It provides software to governments, universities, and large enterprises. The good thing about these customers is that they rarely switch providers lightly, which has historically created strong retention and recurring revenue.

In addition, the company’s shift to a full SaaS model has improved visibility and margins, while its expansion into the UK has opened up a meaningful new growth avenue. So much so that management believes TechnologyOne is positioned to double in size every five years.

If it delivers on this, then its shares could deliver strong returns for investors over the next decade, especially after significant share price weakness recently.

The post 3 ASX shares I’d buy and hold through market volatility appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 3 ways to play the ASX tech share sell-off
• 2 ASX tech stocks smashed to multi-year lows
• 3 blue-chip ASX 200 shares I would buy and hold
• The $10,000 Test: Which ASX shares would I still own after 10 years?

Motley Fool contributor James Mickleboro has positions in Goodman Group, ResMed, and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, ResMed, and Technology One. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Goodman Group and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The last few months have hit the tech share space hard because of AI worries. Amid all the volatility, there’s one particular ASX share I think that’s very well suited to succeed during a period like this.

Don’t get me wrong, I do think a number of the ASX tech shares that have been sold off could be an attractive buy. I’m intending to invest in two this week.

But, there is one ASX share that looks like it could be a clear buy to traverse this difficult period, in my view. It’s investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). There are a few reasons why I think it’s a great investment.

Not significantly exposed to the tech sector

The tech selling has been widespread and indiscriminate, plenty of which may have been overdone.

Soul Patts has not suffered a huge decline. In-fact, at the time of writing, the Soul Patts share price is slightly up in 2026 to date.

The investment house owns a large portfolio of assets across a range of sectors including resources, telecommunications, industrial property, building products, swimming schools, agriculture, water entitlements and a lot more. Tech isn’t a significant part of the portfolio.

The diversification is a strong part of the strategy, meaning the business is protected against the risk of being too exposed to any particular industry in its portfolio.

Can invest in opportunities

Soul Patts’ investment portfolio isn’t a fixed list of assets of businesses. It can sell something if it wants to.

More importantly, the ASX share can decide to invest in opportunitiesif the investment team like the look of a possible pick.

Soul Patts has shown skill and bravery at investing during rough times and taking advantage of lower prices.

I don’t know what Soul Patts is planning to invest in this year, but I reckon any investments will boost diversification and increase the earnings power of the business over time.

Over the last five and ten years it has significantly boosted its diversification and the ability to earn cash flow during all economic environments.

Great long-term return

I think the Soul Patts set up is quite similar to Berkshire Hathaway, though it hasn’t performed as well as Warren Buffett’s incredible long-term investment track record. 

But, the Soul Patts portfolio has performed solidly for investors, delivering a double-digit return.

According to CMC Invest, Soul Patts has delivered an average total shareholder return (capital growth plus dividends) of 12.2% over the past decade, outperforming the S&P/ASX 200 Index (ASX: XJO).

Past performance is not a guarantee of future returns of course, but I think the track record is promising and shows the type of compounding results that can be produced by the ASX share.

The post The 1 ASX share I’d buy to navigate the tech wreck appeared first on The Motley Fool Australia.

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• 3 ways to play the ASX tech share sell-off
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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building wealth on the ASX does not have to mean constantly rotating between themes or chasing the next hot stock.

For long-term investors, a small group of well-chosen exchange traded funds (ETFs) can be enough.

Together, they can provide global diversification and structural growth, all without needing to pick individual stocks.

With that in mind, here are three ASX ETFs to consider buying and holding for years.

Vanguard MSCI International Shares ETF (ASX: VGS)

The first ASX ETF to consider is the popular Vanguard MSCI International Shares ETF.

This fund gives investors access to a broad basket of shares from developed markets outside Australia. It includes companies from the United States, Europe, Japan, and other advanced economies.

Instead of betting on a single country or sector, this ASX ETF spreads risk across over a thousand businesses. That means exposure to global leaders in healthcare, technology, banking, industrials, and consumer goods.

VanEck MSCI International Value ETF (ASX: VLUE)

A second ETF that could suit a buy-and-hold strategy is the VanEck MSCI International Value ETF.

This fund takes a value approach to global markets, focusing on shares that screen attractively on metrics such as price-to-book and earnings multiples. That usually leads to exposure to established businesses in sectors like financials, industrials, and energy.

While it is worth noting that value investing can fall out of favour during strong growth cycles, it has historically delivered competitive long-term returns when market leadership rotates. This appears to be what is happening at present, with growth names being indiscriminately sold off.

Overall, holding the VanEck MSCI International Value ETF alongside broader market ETFs could add balance, particularly during periods when expensive growth stocks correct. It was recently recommended by analysts at VanEck.

Betashares Global Cybersecurity ETF (ASX: HACK)

The final ETF to consider for the long term is the Betashares Global Cybersecurity ETF.

As governments and businesses digitise operations and move to the cloud, the need to protect data and infrastructure continues to grow. This fund provides exposure to the companies operating at the front line of that challenge.

Rather than betting on a single cybersecurity stock, this ASX ETF spreads exposure across multiple global players. They appear well-positioned to benefit from this structural shift, especially as regulatory requirements are likely to keep demand elevated.

Overall, as a thematic allocation within a diversified portfolio, the Betashares Global Cybersecurity ETF offers access to a structural growth industry that is likely to grow materially over the next decade.

The post 3 excellent ASX ETFs to buy and hold for 10 years appeared first on The Motley Fool Australia.

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• Why these ASX ETFs could be best buys
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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 positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are plenty of ASX shares out there for investors to choose from.

To narrow things down, let’s see what analysts are saying about three popular shares, courtesy of The Bull. Here’s what they are recommending:

Orica Ltd (ASX: ORI)

The team at Bell Potter is bullish on this commercial explosives company and has named it as a buy this week.

The broker has been impressed with its transformation and highlights its cyclical leverage and structural growth as reasons to invest. It explains:

Orica is a mining and infrastructure solutions provider. Orica’s transformation is gaining traction, with diversified growth across blasting solutions, speciality mining chemicals and digital solutions. Earnings before interest and tax (EBIT) of $992 million in fiscal year 2025 were up 23 per cent on the prior corresponding period. The significant rise was underpinned by strong demand for sodium cyanide, increased digital product uptake and solid execution across manufacturing assets. Management has upgraded its medium term EBIT target, and an additional $100 million buy-back program is underway. Orica offers a compelling blend of cyclical leverage and structural growth.

Origin Energy Ltd (ASX: ORG)

Over at DP Wealth Advisory, its team has named this energy giant as a hold this week.

While it sees positives, such as its investment in Octopus Energy, it isn’t enough for a more bullish recommendation. DP Wealth Advisory said:

This energy provider delivers services to more than 4 million Australian customers. It’s also a significant exporter of LNG through its stake in APLNG (Australia Pacific LNG). A positive for Origin is its 22.7 per cent interest in Octopus Energy in the UK and, in particular, the Kraken Technologies platform. A spin-off of Kraken into a stand-alone entity should add value to ORG.

Pro Medicus Ltd (ASX: PME)

Analysts at Fairmont Equities aren’t buyers of this health imaging technology company’s shares despite their heavy decline. The equities firm has named Pro Medicus shares as a sell this week.

Fairmont Equities appears concerned that the decline could continue if sentiment doesn’t improve in the near term. It said:

This medical technology business is one we have successfully traded on several occasions during the past few years. However, since mid-2025, we have stayed away from expensive technology companies, such as PME, due to negative market sentiment. On February 12, 2026, the company announced revenue from ordinary activities of $124.8 million in the first half of 2026, an increase of 28.4 per cent. Underlying net profit of $67.3 million was up 29.7 per cent.

However the share price was severely punished following the result. Perhaps, the result fell short of market expectations. The shares have fallen from $330.48 on July 17, 2025 to trade at  $132.86 on February 12, 2026. The shares may fall further if sentiment doesn’t improve.

The post Buy, hold, sell: Orica, Origin Energy, and Pro Medicus shares appeared first on The Motley Fool Australia.

More reading

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• 2 ASX shares I’d buy after seeing their results this week!
• Should you just forget ASX tech stocks after the AI selloff?
• Recap: Winners and losers from earnings season week 2

Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small gain. The benchmark index rose 0.2% to 8,937.1 points.

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

ASX 200 to rise again

The Australian share market looks set to rise again on Tuesday following a mixed start to the week in Europe. According to the latest SPI futures, the ASX 200 is poised to open the day 15 points or 0.15% higher. Wall Street was closed for the President’s Day holiday but in Europe, the DAX was down 0.45%, the FTSE rose 0.25%, and the CAC edged 0.05% higher.

Oil prices rise

It could be a good session for ASX 200 energy shares such as Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 1.4% to US$63.73 a barrel and the Brent crude oil price is up 1.3% to US$68.62 a barrel. Traders were buying oil in response to demand optimism.

New Hope shares downgraded

The team at Bell Potter thinks that New Hope Corporation Ltd (ASX: NHC) shares are overvalued. This morning, the broker has downgraded the coal miner’s shares to a sell rating with a slightly improved price target of $4.10. It said: “We move to a sell recommendation following recent share price strength and a subdued thermal coal price outlook. NHC’s low-cost operations will continue to underpin margins through the coal price cycle, funding capital expenditure commitments and supporting shareholder returns.”

Gold price eases

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a subdued session on Tuesday after the gold price eased overnight. According to CNBC, the gold futures price is down 0.65% to US$5,013.1 an ounce. Traders may have been taking profit after a solid run from the precious metal.

BHP results

BHP Group Ltd (ASX: BHP) shares will be on watch on Tuesday when the mining giant releases its eagerly anticipated half-year results. According to a note out of Morgans, its analysts expect the Big Australian to report revenue of US$51.26 billion, EBITDA of US$25.98 billion, and an underlying net profit of US$5.07 billion. It said: “BHP is well funded for its current projects at WAIO, Escondida and Jansen, with the upside in metal prices amassing free cash flow. As a result, we estimate a USD 60 cent interim dividend, representing a higher-than-usual first half payout ratio.”

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

More reading

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

The owners of Commonwealth Bank of Australia (ASX: CBA) shares will want to know how their bank is projected to grow in the next few years. This could be key to influencing whether the ASX bank share rises from here or not.

Businesses are usually valued based on how much profit they make and how much their earnings is projected to grow from here. Over time, I’d expect the share price to follow the earnings higher, assuming profit generation does improve.

Over the last few years, CBA has shown an ability to regularly grow earnings while other ASX bank shares have struggled.

Let’s take a look at what’s expected from Australia’s largest bank.

FY26

The ASX bank share reported its FY26 half-year result last week and there were a number of positives.

In the six months to 31 December 2025, Commonwealth Bank reported that its cash net profit after tax (NPAT) rose by 6% year-over-year to $5.44 billion, while statutory net profit increased 5% year over year to $5.4 billion.

The ASX bank share decided to increase the half-year dividend payout by 4% year-over-year to $2.35 per share.

Competition meant the underlying net interest margin (NIM) was flat, but improved credit quality led to a reduced loan impairment expense, with home loan arrears decreasing.

The broker UBS noted that the profit was stronger than the market (and its own analysts) were expecting thanks to loan growth, though underlying costs grew 5.3% half over half.

UBS also liked CBA’s business bank performance, the growth of transactional deposits (especially in retail banking) and strong mortgage growth. This is expected to “support cash NPAT growth in a stable asset quality and credit environment despite a fluid competitive backdrop”.

Despite increasing the earnings per share (EPS) estimates by the low single digits for the next few years, UBS still thinks the CBA share price valuation is “challenging”.

For the 2026 financial year, UBS expects CBA to deliver net profit of $10.9 billion.

FY27

UBS decided to increase its cash EPS estimates for FY26, FY27 and FY28 by 1.7%, 2.7% and 3% respectively based on increased loan growth expectations and slightly higher NIM expectations in FY27 and FY28 (boosting forecast net interest income).

However, those upgrades are not as high as they might have been without expectations of increased costs from tech inflation and investments, too.

With that in mind, UBS increased its projection for the ASX bank share to make $11.1 billion of net profit in FY27.

FY28

UBS forecast noted that earnings per CBA share is projected to rise at a compound annual growth rate (CAGR) of 4% over the next three years. Earnings progression is positive, though investors may be hoping for faster growth than that. UBS analysts are certainly hoping for a faster growth rate.

The broker predicts that CBA’s net profit could increase to $11.5 billion in FY28.

FY29

Earnings are forecast to continue their fairly slow-but-steady improvement going into the end of the decade, though the profit growth isn’t expected to be any faster.

For FY29, UBS projects a potential net profit of $12 billion.

FY30

The final year of this series could see the business deliver its strongest profit compared to every other year in the 2020s. But, the profit progress is not expected to accelerate. Slow-and-steady may well be a positive outcome for shareholders.

In the 2030 financial year, CBA is forecast by UBS to generate $12.4 billion of net profit. That would be a rise of 14.2% between FY26 to FY30.

That’s not enough for UBS, which has a sell rating on the CBA share price and a price target of $130, implying a sizeable decline over the next 12 months.

The post Here’s the earnings forecast out to 2030 for CBA shares appeared first on The Motley Fool Australia.

More reading

• Here’s why I’m still not selling my CBA shares anytime soon
• How to make a $50,000 passive income from ASX shares
• The ANZ share price is a sell – UBS
• Utilities outperform as ASX 200 ascends to a 3-month high
• The CBA share price is a sell – UBS

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

Most investors say they would buy the dip. But when markets actually fall 20%, it rarely feels like an opportunity. It feels uncomfortable. Headlines get louder. Fear spreads. And quality businesses can be sold down alongside weaker ones.

But it is during these turbulent times that some of the best investments are made.

So, if that kind of correction happened tomorrow, these are three ASX shares I’d be watching very closely.

CSL Ltd (ASX: CSL)

The first ASX share I’d look to buy on a big pullback is CSL.

Healthcare demand doesn’t disappear in a recession. Plasma therapies, vaccines, and specialty medicines are not discretionary purchases. That defensive revenue base gives CSL a level of resilience that many others don’t have.

CSL also reinvests heavily in research and development, continually expanding its product pipeline. Over decades, that commitment to innovation has helped it grow well beyond its origins.

I have been very disappointed with the company’s performance and the unexpected leadership change. The latter comes at an awkward time and could impact its turnaround strategy. However, I have confidence that CSL will deliver on its targets and then move on to sustained profit growth. As a result, I think buying at current prices could be very rewarding for patient investors. 

REA Group Ltd (ASX: REA)

Another ASX share I’d target is REA Group.

Property markets move in cycles, but the shift to digital advertising is permanent. REA owns Australia’s dominant online real estate platform, and that position gives it strong pricing power.

Even during slower housing periods, agents still need to advertise listings. Over the long term, population growth and housing turnover support demand for its services.

If market weakness pushed REA shares down significantly, I would see it as an opportunity to buy a platform business with network effects at a more attractive valuation.

NextDC Ltd (ASX: NXT)

A final ASX share I’d buy in a correction is NextDC.

Data centre demand is driven by structural growth in cloud computing, digital storage, and artificial intelligence workloads. Those trends are unlikely to reverse because of a short-term market slump.

NextDC’s facilities are critical infrastructure for enterprises and global cloud providers. While its share price can be volatile, I think the long-term demand profile remains compelling.

Overall, I believe buying infrastructure-backed growth during moments of panic could prove rewarding once sentiment stabilises.

Foolish takeaway

Market crashes are uncomfortable, but they also reset valuations. If the ASX fell sharply, I would focus on businesses with competitive advantages and long growth runways. 

CSL, REA Group, and NextDC tick these boxes, each operating in sectors supported by structural drivers rather than short-term hype. For me, this makes them worthy buy-the-dip candidates.

The post 3 ASX shares I’d buy if the market dropped 20% tomorrow appeared first on The Motley Fool Australia.

More reading

• This ASX 200 tech stock is defying the AI sell off. Is it a buy?
• Buy, hold, sell: CSL, Lynas, and Wesfarmers shares
• 3 tailwinds that could send REA Group shares higher again
• 3 ASX ETFs to protect your portfolio from the tech sell-off
• Utilities outperform as ASX 200 ascends to a 3-month high

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

If you are looking for exposure to lithium, then it could be worth skipping PLS Ltd (ASX: PLS) shares and looking at the ASX lithium stock in this article.

That’s because if Bell Potter is on the money with its recommendation, this stock could more than double in value between now and this time next year.

Which ASX lithium stock?

The stock that has caught the eye of Bell Potter this week is Ioneer Ltd (ASX: INR).

It is the 100% owner of the fully permitted Rhyolite Ridge lithium-boron project in Nevada, United States.

Bell Potter notes that the project is designed to produce +24kt per annum lithium carbonate equivalent (LCE) and +135kt per annum boric acid over the first 25 years.

However, it may not stop there. The broker highlights that ore reserves could support an 82-year project life at this initial production rate.

Furthermore, in the ASX lithium stock’s most recent economic update, it outlines low all-in sustaining costs of US$4,628 per tonne of LCE, benefiting from boric acid co-production.

The company has binding lithium offtake contracts with Ford, Toyota, Panasonic, and EcoPro.

What is Bell Potter saying?

Bell Potter highlights that the ASX lithium stock recently raised funds. It believes the company now has sufficient cash to see it through 2026. Importantly, this includes the completion of its Rhyolite Ridge strategic partnering process to a final investment decision. The broker said:

INR recently completed a $72m equity placement at $0.18/sh, taking its pro forma December 2025 cash position to around $90m. The placement ensures that INR is fully funded through 2026, including the completion of its Rhyolite Ridge strategic partnering process to a Final Investment Decision. It will fund long lead items and early works and support development permitting and general corporate working capital.

Importantly, the funding strengthens INR’s negotiating position with potential partners, which we expect will likely include a consortium of strategic offtake counterparties and private equity groups. INR also is in a strong position to retain a majority equity stake in Rhyolite Ridge on completion of the partnering process.

Big potential returns

In response to the fund raising, the broker has retained its speculative buy rating on the ASX lithium stock with a trimmed price target of 39 cents.

Based on its current share price of 14 cents, this implies potential upside of almost 180% for investors over the next 12 months.

Commenting on the stock, the broker said:

The Rhyolite Ridge sell-down should materially de-risk INR’s project development equity funding requirements. Lithium markets have recently strengthened; we expect supply chain restocking will coincide with growth in underlying demand, and support lithium chemicals prices over the medium to long term. Rhyolite Ridge is large-scale and low cost, and has expansion potential beyond its Stage 1 development. Our INR valuation is now $0.39/sh (previously $0.46/sh), factoring in the balance of improved project economic assumptions offset by dilution from the recent capital raise.

However, it warns that “INR is an asset development company with forecast cash flows only; our Speculative risk rating recognises this higher level of investment risk and share price volatility.” As a result, Ioneer would only be suitable for investors with a high tolerance for risk.

The post Forget PLS, Bell Potter says this ASX lithium stock could rise 150%+ 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.