Tag: Stock pick

ASX mining shares closed higher on Thursday, with the S&P/ASX 300 Metal & Mining Index (ASX: XMM) lifting 2.56%.

The index has risen 27% over the year to date compared to a 4.5% bump for the S&P/ASX 300 Index (ASX: XKO).

ASX mining share valuations are being supported by rising commodity prices for many metals and minerals amid the gold price boom and green energy transition.

Check out what’s happened this year to these commodity prices.

Star commodities of 2025

By comparison, the iron ore price has risen 1%, but remains relatively healthy at about US$104 per tonne.

Expert recommends ‘diversified options’

The broad-based rise in commodity values suggests the best type of ASX mining shares to be invested in right now are diversified ones.

On The Bull this week, Jed Richards from Shaw and Partners discussed his sell rating on Rio Tinto Ltd (ASX: RIO) shares.

Rio Tinto is certainly a diversified miner, producing iron ore, copper, aluminium (produced from alumina, which is refined from bauxite), diamonds, industrial minerals such as borates, titanium dioxide, and salt; the critical mineral, scandium; ferrous metallics, and lithium.

However, Rio Tinto remains an ASX 200 iron ore giant.

The company’s revenue remains heavily weighted to iron ore. The core steel ingredient made up just under 43% of Rio Tinto’s segmental revenue and 54% of its earnings before interest, taxes, depreciation, and amortisation (EBITDA) for 1H FY25.

Richards prefers more diversified miners in the current climate, commenting:

This global miner is heavily exposed to iron ore, and the stock is currently trading near elevated levels, in our view.

With limited diversification compared to peers, we prefer BHP Group Ltd (ASX: BHP) for broader resource exposure and stronger long term positioning.

With this in mind, Richards has a sell rating on Rio Tinto shares, suggesting investors cash in on the miner’s 23% gain since 30 June.

Locking in gains and reallocating to more diversified options makes sense in the current environment.

The shares have risen from a closing price of $107.13 on June 30 to trade at $131.70 on November 13.

Latest ratings on diversified ASX mining shares

There are four ASX 200 large-cap diversified mining shares on the ASX.

Here are some of the latest ratings on them.

BHP Group Ltd (ASX: BHP)

The consensus rating among 20 brokers covering BHP shares on the CommSec trading platform is a hold.

Macquarie has a neutral rating on BHP shares with a 12-month target price of $44.

In a recent note, the broker said:

We recently switched preference to RIO (RIO AU/RIO LN; Neutral) from BHP on a better catalyst backdrop into CY26 and the RIO Capital Markets Day (CMD).

Rio Tinto Ltd (ASX: RIO)

The consensus rating among 15 analysts covering Rio Tinto shares on CommSec is a moderate buy.

Macquarie has a neutral rating on Rio Tinto shares with a 12-month target price of $124. 

South32 Ltd (ASX: S32)

The consensus rating among 16 brokers covering South32 shares on CommSec is a moderate buy.

Macquarie has an underperform rating on South32 shares with a target price of $3.20.

On The Bull last week, Dylan Evans from Catapult Wealth revealed a buy rating on South32 shares.

Evans said:

The company’s earnings are volatile, but the commodity mix provides diversification across price cycles. S32’s long life mine assets are high quality and low on the cost curve. Overall, we’re attracted to the company’s commodity mix during the energy transition and electrification.

Mineral Resources Ltd (ASX: MIN)

The consensus rating among 15 analysts covering Mineral Resources shares on CommSec is a hold.

Macquarie has an underperform rating on Mineral Resources shares but raised its price target to $47 earlier this month.

In its latest note, the broker said:

We raise our target price 24% to A$47.00 to reflect Mt Marion and Wodgina equity sell-down and improved near-term earnings outlook.

The post Invested in ASX mining shares? Expert recommends diversity over iron ore concentration appeared first on The Motley Fool Australia.

More reading

• Buy BHP and this blue chip ASX dividend share
• Why Macquarie expects this fast-rising ASX 200 dividend stock to keep outperforming in 2026
• Top Australian stocks to buy right now with $5,000
• 3 of the best Australian stocks to buy after the market selloff
• Why are Steadfast shares sinking 5% today?

Motley Fool contributor Bronwyn Allen has positions in BHP Group and South32. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool 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.

With the market swinging between optimism and uncertainty, income investors are again turning to dependable blue chip ASX dividend shares for stability. And while many defensive names have already been bid up this year, several high-quality dividend payers are still trading at levels that brokers consider attractive.

If you are building or topping up an income portfolio, analysts have highlighted two standout blue chips that are offering solid dividend yields and resilient earnings.

Here’s what they are recommending to clients this month:

BHP Group Ltd (ASX: BHP)

The first blue chip ASX dividend share that could be a buy is BHP.

Australia’s largest miner remains one of the most reliable dividend machines on the ASX. BHP continues to generate vast amounts of free cash flow from its tier-one iron ore, copper, and metallurgical coal operations, which are among the lowest-cost assets anywhere in the world.

Even though commodity markets can be volatile, BHP’s disciplined balance sheet, diversified portfolio, and cost efficiency give it the ability to sustain shareholder returns across the cycle. The company has proven repeatedly over the past decade that it can continue paying attractive fully franked dividends even when prices pull back.

Morgan Stanley is bullish on the Big Australian and has an overweight rating and $48.00 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends of approximately $1.90 per share in FY 2026 and $1.70 per share in FY 2027. Based on its current share price of $41.72, this equates to dividend yields of 4.6% and 4.1%, respectively.

Coles Group Ltd (ASX: COL)

Supermarket operator Coles remains a firm favourite among blue chip investors, and for good reason. Its focus on essential, repeat-purchase categories means consistent revenue, predictable earnings, and dependable dividends, even when economic conditions soften.

Coles continues to invest in automation, supply chain improvements, and private label expansion to boost margins and support long-term profitability. In a market where stability is becoming increasingly valuable, its defensive qualities certainly do stand out.

Morgan Stanley is also feeling bullish on this one. It recently put an overweight rating and $26.60 price target on its shares.

With respect to income, the broker is expecting fully franked dividends of 83 cents per share in FY 2026 and then 90 cents per share in FY 2027. Based on its current share price of $22.33, this represents dividend yields of 3.7% and 4%, respectively.

The post Buy BHP and this blue chip ASX dividend share appeared first on The Motley Fool Australia.

More reading

• Invested in ASX mining shares? Expert recommends diversity over iron ore concentration
• Coles shares storm 22% higher this year: Are they still a buy?
• I’d buy this ASX dividend stock in any market
• 1 magnificent ASX dividend stock down 15% to buy and hold for decades
• BHP is a great company, but I think this ASX 200 stock is a better investment

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.

If you have $20,000 to invest in ASX shares today, but don’t know where to look, here are my three top picks.

Wisetech Global (ASX: WTC)

Wisetech shares closed 2.12% higher on Thursday afternoon, at $64.21 each. Over the past month the shares have dropped 22.62% and over the year they’re down a painful 53.63%. 

The company provides logistics software that aims to improve the world’s supply chains. Wisetech has a good growth pipeline, and I think this year’s price plunge is the result of an overdone investor sell-off.  

Analysts think the company’s share price will rebound too. Earlier this week, DP Wealth Advisory said it thinks the beaten-down tech stock as a buy. The broker said that long-term fundamentals and market leadership support a great buying opportunity for investors.

Bell Potter, Morgans, and Shaw and Partners’ Jed Richards also all have a buy rating on the stock.

TradingView data shows that analysts forecast a maximum price target as high as $177.97. At the time of writing that implies the ASX 200 tech share has a potential upside of 177.18% over the next 12 months.

Pro Medicus (ASX: PME)

Meanwhile, the Pro Medicus share price closed 1.07% higher at $253.04 a piece on Thursday afternoon. The shares have dropped 11.79% over the past month but are still 17.9% higher than this time last year.

Pro Medicus specialises in advanced medical imaging software through its Visage platform. It enables radiologists to review scans with high speed and efficiency. The company has a growing recurring revenue, great margins and a ultra-light capital business model too, which means it’s poised for strong growth. 

Analysts are very positive on the stock too with Pro Medicus shares making a few list of top-buys or ASX growth share picks. The team at Citi recently upgraded Pro Medicus to a buy rating with a $350.00 price target. Morgans has also upgraded Pro Medicus’ shares to an accumulate rating with a slightly more bearish $290.00 price target. These price targets imply a potential 14.6% to 38.3% upside for investors over the next 12 months.

DigiCo Infrastructure REIT Stapled Securities (ASX: DGT)

For investors looking for exposure to Australia’s hot property market without the risk, a real estate investment trust (REIT) with strong growth prospects is a sensible buy.

DigiCo’s share price closed 3.33% higher on Thursday afternoon, at $2.48 a piece. That’s a 12.06% drop over the month, and over the year, the shares are 50.4% lower thanks for a huge sell off in March.

On the surface the annual decline might look concerning, but I think it makes for a great buying opportunity. The company recently held a strong annual general meeting (AGM) and said it has surpassed guidance for FY25.

Macquarie thinks the low price presents a good buying opportunity, too. The broker has an outperform rating on the shares and a $4.16 target price. At the time of writing, that implies a potential 67.74% upside over the next 12 months.

The post 3 ASX shares I’d buy with $20,000 today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• What I’d buy if I had to invest $20,000 in ASX 200 shares before the weekend
• Wisetech share price a ‘highly attractive opportunity’ after sell-off: fundie
• 3 outstanding ASX growth shares analysts are backing right now
• Analysts name 3 ASX 200 titans to buy today

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. 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 WiseTech Global. 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 Thursday, the S&P/ASX 200 Index (ASX: XJO) was back on form and raced higher. The benchmark index rose 1.25% to 8,552.7 points.

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

ASX 200 expected to sink

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

Oil prices fall

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

Annual general meetings

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

Gold price falls

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

Hold QBE shares

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

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

More reading

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

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

The S&P/ASX 200 Index (ASX: XJO) closed 1.24% higher on Thursday afternoon. It was a welcome reprieve for investors after this week’s sell-off. Over the past month the index is now down 5.96% and for the year it is 2.76% higher.

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

Droneshield Limited (ASX: DRO)

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

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

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

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

Helia Group Ltd (ASX: HLI)

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

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

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

New Hope Corporation Ltd (ASX: NHC)

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

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

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

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

More reading

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

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

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

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

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

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

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

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

Here’s why.

Macquarie lifts price target for ASX 300 stock

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

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

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

And the team at Macquarie believe that’s achievable.

The broker noted:

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

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

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

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

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

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

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

More reading

• Morgans just upgraded these ASX 200 shares
• Why Meeka, Nufarm, SKS, and TechnologyOne shares are storming higher
• Bell Potter says this ASX 200 share can rise 50%
• 5 things to watch on the ASX 200 on Thursday
• Why Nufarm, Nuix, Silver Mines, and Webjet shares are roaring higher today

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

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

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

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

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

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

Why I decided to sell out of Fortescue shares

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

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

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

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

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

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

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

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

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

Valuation

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

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

More reading

• Woodside vs Fortescue shares: One I’d buy and one I’d sell
• Here’s the dividend forecast out to 2030 for Fortescue shares
• ASX 200 mining shares rip as lithium makes a comeback
• ASX mining shares: Do Rio Tinto or Fortescue shares offer a bigger dividend yield today?
• Macquarie names price target on BHP shares and 4 other ASX 200 miners

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

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

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

Let’s hear more from them.

ASX lithium shares on a roll lately

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

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

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

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

The managers said:

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

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

Lithium commodity prices have lifted significantly over the past month.

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

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

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

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

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

What did Pilbara Minerals report?

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

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

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

Riordan and Teran said:

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

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

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

Pilbara Minerals share price snapshot

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

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

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

More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Brokers say Mesoblast, NAB, and Pilbara Minerals shares are sells
• Why James Hardie, Meteoric Resources, Pilbara Minerals, and SKS shares are rising today
• ASX lithium shares outperform as ASX 200 tumbles to four-month low

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

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

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

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

Nvidia’s stock is surprisingly reasonable

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

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

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

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

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

What could go wrong? 

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

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

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

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

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

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

What do the next three years have in store?

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

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

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

The post Where will Nvidia stock be in 3 years? appeared first on The Motley Fool Australia.

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

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

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Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

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

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

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

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

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

iShares S&P 500 ETF (ASX: IVV)

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

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

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

BetaShares Global Quality Leaders ETF (ASX: QLTY)

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

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

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

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

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

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• How to make yearly passive income of $70,000 from ASX shares
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HSBC Holdings is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Alphabet, Amazon, Costco Wholesale, Lam Research, Microsoft, Nvidia, ResMed, Tencent, Visa, Walmart, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group, AstraZeneca Plc, HSBC Holdings, and Johnson & Johnson and has recommended the following options: long January 2026 $395 calls on Microsoft, long January 2028 $330 calls on Adobe, short January 2026 $405 calls on Microsoft, and short January 2028 $340 calls on Adobe. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Adobe, Alphabet, Amazon, Lam Research, Microsoft, Nvidia, Visa, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.