Tag: Stock pick

The S&P/ASX 200 Index (ASX: XJO) has stagnated over the past month, falling over 3%. 

However, some pockets are gaining strong momentum. 

There are several themes and sectors capturing strong tailwinds in the back half of 2026. 

Here are some ASX ETFs ignoring the broader market downturn and charging ahead. 

Cybersecurity ASX ETFs

One theme that is outperforming right now is cybersecurity. 

The strong rise in cybersecurity-related stocks over the past six months reflects a broader shift in how investors view the impact of AI on the sector.

Initially, there were concerns that AI would make cybersecurity less valuable by automating vulnerability detection and reducing the need for traditional security solutions. 

However, the market has increasingly recognised that AI is also making cyberattacks more sophisticated, scalable and difficult to defend against, creating greater demand for cybersecurity products and services. 

The rapid adoption of AI, cloud computing and digital infrastructure is expanding the potential attack surface for businesses, while growing cyber threats are encouraging companies and governments to increase security spending. 

This has strengthened expectations for long-term revenue and earnings growth across the cybersecurity industry, particularly among leading providers, and has driven a significant re-rating of the sector. 

Two beneficiaries of this trend are BetaShares Global Cybersecurity ETF (ASX: HACK) and Global X Cybersecurity ETF (ASX: BUGG). 

These funds have risen by 37% and 47% in the last 6 months and could be set up for long-term success if these tailwinds continue. 

Global healthcare and biotech ASX ETFs

The healthcare and biotechnology sector has benefited from a combination of strong innovation, improving investor sentiment and the potential for significant new markets. 

Advances in areas such as obesity treatments, oncology, gene therapy and precision medicine are creating opportunities for companies to develop new therapies with very large commercial markets, while the rapid adoption of AI in drug discovery and clinical development is raising expectations that medicines can be developed more efficiently.

These tailwinds have benefited ASX ETFs BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG) and Global X S&P Biotech ETF (ASX: CURE). 

Both have enjoyed significant momentum in recent months, and could be top buys heading into the back part of 2026. 

Gaming and Esports 

After a rough first 6 months of the year, another ASX ETF harnessing strong momentum is Betashares Video Games And Esports ETF (ASX: GAME). 

It has risen 13% since late July thanks to renewed investor confidence in the long-term growth of interactive entertainment.

The industry continues to benefit from the shift towards digital distribution, recurring revenue through subscriptions and in-game purchases, and the growing global audience for gaming, while major new game releases can create significant bursts of revenue and engagement.

At the same time, the sector is increasingly benefiting from advances in AI, which have the potential to reduce development costs, improve game creation and enable more personalised and dynamic gaming experiences.

The post These ASX ETFs are generating big momentum in the second half of 2026 appeared first on The Motley Fool Australia.

More reading

• Why these ASX ETFs could be strong long-term picks
• 3 Betashares ETFs I want to buy
• How much passive income can I earn off a $630,000 superannuation balance
• 3 ASX ETFs to buy for simple investing
• Here are 3 top Betashares ETFs I’d buy now

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF. 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.

Finding ASX growth shares trading at half their broker targets is unusual, but right now there are several doing just that.

Earnings season has ended and analysts have refreshed their price targets across hundreds of companies.

The three below have all fallen heavily over the past year.

All three are still growing earnings, which is what makes the gap interesting.

Why these ASX growth shares were sold off

The cause is the same in each case.

Interest rate expectations have moved sharply, with all four major banks now forecasting another rise this year.

Higher rates hit companies valued on distant earnings hardest, and they hit companies funding growth with debt harder still.

None of these three fell because of a downgrade.

Each of them reported growth in FY26.

1. NEXTDC Ltd (ASX: NXT)

NEXTDC closed Tuesday at $12.52 after falling 14% in a month.

UBS has a buy rating with a $23.45 target, implying 88% upside.

The FY26 result was a record.

Net revenue rose 16% to $405.0 million and underlying EBITDA rose 15% to $248.8 million, both above guidance.

Contracted utilisation surged 202% to 740.1 megawatts and statutory net profit turned positive at $82.1 million.

FY27 guidance points to net revenue of $615 million to $640 million, growth above 50%.

The catch is the capital expenditure required to deliver it, guided at $5.25 billion to $5.75 billion.

2. Nine Entertainment Co Holdings Ltd (ASX: NEC)

Nine Entertainment is the cheapest and most contrarian of the three.

Shares closed at 86 cents, down 48.19% over twelve months and barely above a 52-week low of 83.5 cents.

Morgan Stanley has a buy rating with a $1.40 target, implying 63% upside.

FY26 revenue rose 3% to $2.19 billion on a continuing business basis and group EBITDA jumped 17% to $379 million.

Net profit after tax increased 7% to $142.4 million and earnings per share before amortisation rose 11% to 9.3 cents.

The QMS Outdoor acquisition contributed $55 million of EBITDA in its first three months.

Similarly, digital subscription revenue grew 12%, and Nine has signed content licensing deals for AI applications including one with Microsoft.

Chief executive Matt Stanton explained the reshaping of the portfolio.

Over the past 12 months, we have made material changes to our business portfolio, focusing on growth and digital assets whilst reducing our exposure to structurally challenged and smaller assets. These transactions add to our operational scale and create a higher growth and more resilient Nine, better positioned to create long term sustainable value for our shareholders.

The final dividend of 3.0 cents is unfranked, and management expects that to continue.

3. Zip Co Ltd (ASX: ZIP)

Zip has the most bullish coverage on the ASX.

All twelve analysts covering the company rate it a buy or strong buy, with an average target of $4.56 against a $2.31 share price.

That implies roughly 95% upside, with the most optimistic target at $6.03.

FY26 cash EBTDA rose 57.9% to $268.9 million and revenue climbed 24.7% to $1,336.1 million.

Net profit after tax increased 45.7% to $116.4 million and the operating margin expanded from 15.8% to 20.0%.

Management has guided FY27 cash EBTDA to $340 million, up around 26%.

The United States now produces about two-thirds of revenue, and that is where the growth is coming from.

Foolish takeaway

Broker targets are opinions, not forecasts, and a 90% implied upside usually means high uncertainty rather than free money.

What these three ASX growth shares share is a market that has repriced their respective multiples.

I would rather buy a company growing revenue at 16% to 25% after a 50% fall than chase one already compounding.

The post 3 ASX growth shares experts think could double appeared first on The Motley Fool Australia.

More reading

• NextDC shares have fallen 14% in a month. Is the AI data centre boom over?
• Can Zip shares recover? Here’s what the experts have to say
• 6 ASX shares tipped by brokers to rise 34% to 87%
• Experts tip battered Zip shares to deliver over 90% returns
• These are the 10 most shorted ASX shares

Motley Fool contributor Mark Verhoeven 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 Microsoft. The Motley Fool Australia has recommended Microsoft and Nine Entertainment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

September could be a good time to put some fresh money to work on the S&P/ASX 200 index (ASX: XJO).

But where should you invest? 

I would be looking for high-quality businesses with strong market positions and plenty of room to grow over the long term.

With that in mind, here are three ASX 200 shares I think could be top buys this month.

Goodman Group (ASX: GMG)

Goodman could be one of the best ASX 200 shares to buy in September.

The integrated property company has built a global platform around industrial real estate, with warehouses, logistics facilities, and large-scale development sites across major markets.

That alone is a strong business. But arguably the most exciting part of the story is what Goodman is doing with data centres.

Artificial intelligence (AI) and cloud computing are driving huge demand for computing infrastructure, and data centres need land, power, planning approvals, and access to major population centres.

These are all areas where Goodman has an advantage. The company already has deep customer relationships, a strong development pipeline, and experience working with large industrial sites.

I think that gives Goodman a good chance of becoming an even more important infrastructure player over the next decade.

ResMed Inc (ASX: RMD)

ResMed is another ASX 200 share I would consider buying this month.

It is a global medical device leader with a focus on treating sleep apnoea and other respiratory conditions through masks, software, and connected healthcare products.

The long-term opportunity remains extremely large. Millions of people around the world suffer from sleep-related breathing problems, and many have not yet been diagnosed or treated.

In fact, the company estimates that there are over 1 billion people suffering from sleep apnoea, potentially giving ResMed a multi-decade growth runway.

Xero Ltd (ASX: XRO)

A third ASX 200 share to buy in September could be cloud accounting software company Xero.

It has built a platform that helps small businesses and accountants manage invoicing, payroll, reporting, bank feeds, payments, and other financial tasks.

And while AI may change how accounting work is done, Xero is not a narrow tool that can be easily replaced by one feature. Instead, AI could help automate more of the work already taking place across its platform.

Xero also has a large opportunity in markets such as the United States, where its market share remains low.

Its shares can be volatile, but I think the company has a very strong long-term growth outlook.

The post Top 3 ASX 200 shares to buy in September appeared first on The Motley Fool Australia.

More reading

• NextDC shares have fallen 14% in a month. Is the AI data centre boom over?
• Forget CSL shares. 3 ASX healthcare stocks with bigger upside
• Xero and Megaport: 2 ASX tech shares the market can’t agree on
• Which ASX shares win when the Aussie dollar is strong?
• Home values decline for a 5th straight month – what does it mean for ASX real estate shares?

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

NextDC Ltd (ASX: NXT) shares have fallen 14% over the past month, a strange result for a company that just tripled its contracted capacity.

The stock closed Tuesday at $12.52, down 23.28% over twelve months.

Goodman Group (ASX: GMG) has done no better, falling 19.03% over the same period.

Why NextDC shares have fallen while demand has not

Westpac moved its cash rate forecast to a November rise this week. One reason cited was the scale of investment in data centres and the renewable electricity they need.

That is an unusual situation.

The boom is now considered inflationary enough to justify tighter policy, yet the two ASX shares most exposed to it have been sold down hard.

That is because building data centres consumes enormous amounts of money before it produces any, and higher rates raise the cost of that money.

What NEXTDC actually reported

The FY26 result was the biggest in the company’s history.

Total revenue rose 16% to $496.5 million and net revenue rose 16% to $405.0 million, above guidance.

Underlying EBITDA lifted 15% to $248.8 million, also above guidance.

Statutory net profit swung to a positive $82.1 million from a $60.5 million loss.

The forward-looking numbers are the striking part.

Contracted utilisation surged 202% to 740.1 megawatts.

The forward order book stands at 565.1 megawatts, more than three times current billing utilisation.

Capital expenditure hit a record $3,397 million and pro forma liquidity rose 58% to $8.7 billion.

Chief executive Craig Scroggie set out what happens next.

FY26 was the largest contracting year in NEXTDC’s history. Contracted utilisation tripled to 740.1MW on a pro forma basis, and we exceeded guidance on both net revenue and Underlying EBITDA. Our Forward Order Book of 565MW is now more than 3.2 times our billing utilisation, and our focus is on delivering that capacity and converting it into revenue and cash inflow.

FY27 guidance calls for net revenue of $615 million to $640 million and underlying EBITDA of $385 million to $410 million.

That is growth above 50%.

But it also requires capital expenditure of $5.25 billion to $5.75 billion, which is the number that unsettles people.

Goodman is telling the same story

Goodman Group reported FY26 operating profit up 15.7% to $2.67 billion and operating earnings per security up 10.1% to 129.9 cents.

Work in progress reached $19.7 billion, and data centres now make up 78% of it.

Gearing is at just 6.5% with $6.4 billion of liquidity.

Group chief executive Greg Goodman described a market still short of supply.

Demand is structural across both logistics and data centres. Automation and robotics continue to drive logistics requirements while scarcity of power and land remains the key constraint on AI and cloud growth supporting data centre demand. Hyperscaler capex expectations continue to rise, with many customers facing undersupply into 2027 and 2028.

Goodman is targeting 9% operating earnings per security growth in FY27.

What I’d do with NextDC shares now

UBS has a buy rating on NextDC with a $23.45 target, implying 88% upside.

That is enormous upside, but it depends entirely on the company converting contracted megawatts into billed revenue on schedule.

The bear case is straightforward.

NextDC pays no dividend, trades on a price-to-earnings ratio above 100, and needs to spend more than $5 billion next year.

Goodman is the lower-risk way to own the same theme, with real earnings, a distribution and almost no debt.

Foolish takeaway

The AI data centre boom is not over, and the contracted numbers make that difficult to argue.

What has changed is the price investors will pay for growth funded by borrowed money.

I would own Goodman for the theme and NextDC only with a long investment horizon.

The post NextDC shares have fallen 14% in a month. Is the AI data centre boom over? appeared first on The Motley Fool Australia.

More reading

• 3 ASX growth shares experts think could double
• Top 3 ASX 200 shares to buy in September
• 6 ASX shares tipped by brokers to rise 34% to 87%
• Home values decline for a 5th straight month – what does it mean for ASX real estate shares?
• 4 high conviction ASX stock picks from Canaccord Genuity

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

Reporting season is all but over, which means the brokers have had plenty of time to mull over the results and reassess which companies they think are undervalued at current prices.

I’ve selected three major companies that brokers have put a buy rating on over the past week or so.

Let’s see who they like.

Qantas Ltd (ASX: QAN)

The team at Morgan Stanley liked what they saw from the Qantas result and believes the national carrier can continue to perform.

They have called the pick one of their “highest conviction Australian industrials ideas”, with a bullish price target to go along with it.

Why do they like the stock? In their own words:

The FY26 result reinforced our view that QAN can offset near term fuel pressure through pricing and capacity actions, while International earnings potential remains underappreciated. We see improving earnings quality, resilient demand and a clearer path to higher International margins.

Morgan Stanely said the airline was trading below the valuation level of its international peers by about 20%, despite its high returns.

The broker noted that there was some risk that jet fuel prices would remain elevated and fares would fail to offset the increase.

Morgan Stanely has a price target of $12.80 on Qantas shares.

Brambles Ltd (ASX: BXB)

UBS has had a look at information such as Nielsen data on fast-moving consumer goods sales to get a handle on the sort of demand Brambles might be enjoying.

The data is mixed, with US food and beverage sales down less than 1% from June to August, while European volumes were up 5% year on year in July.

In terms of the impact on Brambles’ CHEP business, volumes were up 1% in the second half of FY26, “with -2% like-for-like volume more than offset by net new business wins”.

UBS said Brambles is currently trading at a discount to the ASX industrials, not including health and financials.

The broker’s price target on Brambles is $24.50.

Pexa Group Ltd (ASX: PXA)

Property sales compliance platform Pexa is likely to be affected by the decline in property transactions resulting from the Federal Government’s changes to capital gains tax and negative gearing rules.

Macquarie’s recent research report on Pexa indicates that settlement activity in New South Wales and Queensland did indeed fall sharply in August compared with the same month a year ago.

The broker has not changed its price target on Pexa, however, meaning recent share price weakness theoretically means more upside for investors.

Macquarie’s price target on Pexa is $13.90. Pexa is currently valued at $1.33 billion.

The post 3 ASX 200 shares tipped to return 27% to 87% appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Morgan Stanley tips Qantas shares to climb 38%
• 6 ASX shares tipped by brokers to rise 34% to 87%
• Here’s the dividend forecast out to 2029 for Qantas shares
• Top brokers name 3 ASX shares to buy next week

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 positions in and has recommended Macquarie Group. The Motley Fool Australia 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.

The Westpac-Melbourne Institute Index of Consumer Sentiment fell 5.2% in September to 84.4.

Any reading below 100 means pessimists outnumber optimists.

However, some ASX shares actually do better when households run out of confidence.

Why consumer sentiment is important for ASX shares

Assessments of family finances dropped 9.2%, and among homeowners the fall reached 13%.

Nearly two-thirds of consumers now expect mortgage rates to rise within twelve months.

The report stated the following of the cause:

The fall takes sentiment back towards the deeply pessimistic levels seen earlier in the year. Both fuel prices and interest rates again look to be driving the move.

Consumer discretionary shares were the worst sector on the ASX on Tuesday, falling 1.88%.

Trouble right? Well, the businesses that sell things households cannot easily cancel are in a different position entirely.

Woolworths sells everyday fundamentals

Woolworths Group Ltd (ASX: WOW) is the most obvious beneficiary on the market.

People trade down within a supermarket, but they do not stop buying groceries.

FY26 showed this phenomenon in action.

Group sales rose 3.6% to $71.54 billion and earnings before interest and tax before significant items climbed 12.7% to $3.11 billion.

Net profit before significant items jumped 15.4% to $1.60 billion.

The Australian Food business lifted sales 4.6% and EBIT 8.5%, while BIG W returned to profit after a loss.

Group eCommerce sales grew 15.9% to $10.6 billion and the final fully franked dividend rose 15.6% to 52 cents.

Chief executive Amanda Bardwell was clear about the challenges facing the company:

Looking ahead, while we expect the challenging economic environment to continue with household budgets remaining under pressure, our strategy to deliver low prices and the best range and convenience gives us confidence we can be first choice for customers while delivering for our team and shareholders in the year ahead.

Telstra sells the second last thing to be cut

Telstra Group Ltd (ASX: TLS) is on the same side of the coin.

That is because nobody cancels their mobile plan because the Reserve Bank raised rates.

FY26 revenue actually fell 0.8% to $22.94 billion, which sounds unimpressive until you look further down.

Underlying net profit after tax rose 4.9% to $2.5 billion and cash earnings per share climbed 14% to 25.5 cents.

Underlying EBITDA after leases increased 4% to $8.3 billion, and management guided FY27 to between $8.5 billion and $8.8 billion.

Mobile income grew 3% to $11.4 billion.

The dividend is the attraction here.

Telstra lifted its full-year payout 10.5% to 21 cents and announced a buyback of up to $1 billion.

At $4.79 that is a yield of about 4.4%, or roughly 6% once franking credits are counted.

Foolish takeaway

Defensive ASX shares are not exciting, and they are not supposed to be.

But what they do is keep earning while the discretionary end of the market repriced 1.88% lower in a single session.

I find Telstra the better value of the two today, purely because Woolworths has already been rerated.

The mistake would be buying either one expecting them to rise when sentiment recovers.

The post Consumer sentiment is low. These ASX shares stand to benefit appeared first on The Motley Fool Australia.

More reading

• Buy, hold sell: Telstra, Origin Energy & Westpac shares
• How much do I need to retire on $80,000 a year at 50?
• Is the Telstra share price a buy for its 6.25% dividend yield?
• What happens if the ASX share market crashes just after I retire?
• How much passive income could a $500,000 superannuation balance generate?

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

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a disappointing session and dropped deep into the red. The benchmark index fell 1% to 8,920.8 points.

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

ASX 200 to rise

The Australian share market looks set for a better session on Wednesday despite a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.2% higher. In the United States, the Dow Jones fell 1.2%, the S&P 500 dropped 0.6%, and the Nasdaq was 0.3% lower.

Oil prices jump

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Wednesday after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 3% to US$94.25 a barrel and the Brent crude oil price is up 2.4% to US$99.36 a barrel. This follows reports of an Iranian attack on US Navy ships.

Accumulate Paladin Energy shares

Morgans has been looking at Paladin Energy Ltd (ASX: PDN) and particularly the Patterson Lake South resource. In response, it has maintained its accumulate rating with a trimmed price target of $13.30. It said: “We expect the resource and mine life to increase materially in time. Simply simple – PLS is one of the highest-grade undeveloped uranium projects globally, but its development plan is surprisingly conventional, with a TBM decline, proven mining methods, a standard Athabasca processing flowsheet and uncomplicated tailings storage reducing technical risk. We maintain an ACCUMULATE rating with a reduced price target A$13.30ps (previously A$14.10ps) with the removal of our 10% price premium.”

Gold price falls

ASX 200 gold shares including Westgold Resources Ltd (ASX: WGX) and Northern Star Resources Ltd (ASX: NST) could have a poor session on Wednesday after the gold price pulled back meaningfully. According to CNBC, the gold futures price is down 1.7% to US$4,400 an ounce. Traders were selling gold ahead of the release of US inflation data.

ASX 200 shares going ex-dividend

A number of ASX 200 shares are going ex-dividend today and could trade lower. This includes Brambles Ltd (ASX: BXB), CSL Ltd (ASX: CSL), Evolution Mining Ltd (ASX: EVN), IGO Ltd (ASX: IGO), and Northern Star. CSL will be paying shareholders 227.7 cents per share early next month on 2 October.

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

More reading

• Buy, hold, sell: BHP, CSL, CBA shares
• Could this exciting growth stock be set to triple? Morgans thinks it can
• $10,000 invested in CSL shares in June is now worth…
• Forget CSL shares. 3 ASX healthcare stocks with bigger upside
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro 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.

Zip shares have halved over the past year, but the analyst community has not budged an inch.

Every broker covering the company still rates it a buy.

What’s more, the average price target implies the shares roughly doubling from here.

Why brokers are so bullish on Zip shares

Zip Co Ltd (ASX: ZIP) closed Tuesday at $2.31, down 2.94% on the day.

Shares have fallen 49.12% over twelve months and 25.84% year to date. The 52-week range runs from $1.37 to $4.93.

All twelve analysts covering the company hold a buy or strong buy rating.

The average target of $4.56 implies around 95% upside, and the most bullish sits at $6.03.

UBS has reiterated a buy rating with a $4.70 target, pointing to the defensive qualities of the buy now, pay later model in weaker economic conditions.

The FY26 result behind the call

The numbers are part of the reason the brokers have not capitulated.

Zip delivered record cash EBTDA of $268.9 million in FY26, up 57.9%.

Total revenue rose 24.7% to $1,336.1 million and total transaction value climbed 27.2% to $16.7 billion.

Net profit after tax increased 45.7% to $116.4 million.

The margin story is arguably more important than the growth.

Operating margin expanded from 15.8% to 20.0% in a single year.

The company also completed $150 million of buybacks and announced a further $50 million for FY27, with available cash and liquidity of $246.5 million.

Group chief executive Cynthia Scott put the result in context:

Consistent execution has built the platform to deliver our next phase of growth and innovation. In FY26, we exceeded our targets with record cash earnings of $268.9m, up 57.9%, underpinned by material cash earnings growth in both markets. We maintained strong unit economics, expanded operating leverage and reinforced the value of our differentiated business model.

The United States is the whole story

Importantly for Zip, the American business now generates roughly two-thirds of group revenue.

Transaction volume and revenue both grew more than 42% there in local currency terms.

Active United States customers rose 9.3% to 4.65 million.

The Australian and New Zealand business is going the other way, with customer numbers down 8% to 1.88 million.

Management is winding down the New Zealand operation entirely to concentrate on Australia.

Guidance for FY27 calls for group cash EBTDA of $340 million, up around 26%.

The operating margin target is 20% to 22% and United States transaction volume is expected to grow more than 30%.

Zip is also weighing a share consolidation and a possible dual listing on the Nasdaq.

What has gone wrong for Zip shares

The share price fall has very little to do with the accounts.

Three things have worked against it at once.

The first is a broad sell-off in technology and high-multiple names.

The second is competition, with the buy now, pay later market crowded and margins under permanent scrutiny.

The third, and perhaps most important, is interest rates.

Zip lends money to consumers, which makes it geared to household health in both directions.

Consumer sentiment fell 5.2% in September to 84.4, with nearly two-thirds of consumers expecting mortgage rates to rise within a year.

All four major banks now forecast another rate rise before the end of 2026.

Foolish takeaway

The bull case for Zip shares is not overly complicated.

Earnings are growing fast, margins are expanding and the United States business is scaling.

The bear case is that none of that has been tested through a true consumer downturn. Only time will tell for Zip shares.

The post Can Zip shares recover? Here’s what the experts have to say appeared first on The Motley Fool Australia.

More reading

• Experts tip battered Zip shares to deliver over 90% returns
• These are the 10 most shorted ASX shares
• ASX 200 bank shares led a financial sector rebound last week
• ASX shares investors are getting younger and trading more often: CBA report
• Why Zip shares took investors on a wild ride in August

Motley Fool contributor Mark Verhoeven 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.

Exchange-traded funds (ETFs) are one of my favourite ways to add exposure to areas of the market that can be difficult to capture with individual ASX shares.

If I were putting fresh money to work this September, these three Betashares ETFs would be high on my list.

Betashares S&P 500 Equal Weight ETF (ASX: QUS)

The QUS ETF gives investors exposure to 500 leading US companies with an important difference from a traditional S&P 500 fund.

Each company receives an equal weighting when the index is rebalanced quarterly. That means the portfolio is less dependent on a small group of enormous technology companies driving returns.

I like that approach at the moment. The US share market offers exposure to an enormous range of world-class businesses across healthcare, industrials, financial services, consumer goods, technology, and plenty of other industries.

Giving those companies a more equal influence means investors can participate if US market growth becomes more evenly spread.

It also gives me a different way to invest in the United States without once again making the largest technology names the centre of the portfolio.

Betashares India Quality ETF (ASX: IIND)

India is another market I would be interested in owning for the long term.

The Betashares India Quality ETF provides easy exposure to 30 Indian stocks selected using measures including profitability, leverage, and earnings stability.

I like the quality screen here. India offers a substantial long-term growth opportunity, but investing in an emerging market can bring additional risks. Focusing on financially stronger businesses gives me a more selective way to participate.

The country’s large population and developing economy create opportunities across areas such as banking, consumer spending, technology, manufacturing, and infrastructure.

I would expect plenty of volatility along the way, but I think India could become an increasingly important part of global share markets over the coming decades.

Betashares Australian Quality ETF (ASX: AQLT)

Closer to home, the AQLT ETF provides another way to approach Australian shares.

The fund targets high-quality ASX companies using return on equity, leverage, and earnings stability. Its index is designed to hold around 40 businesses rather than simply allocating the most money to the largest companies on the market.

I like that because the Australian share market can become heavily influenced by its biggest companies and sectors.

A quality-focused strategy can lead to a different portfolio, with Betashares noting that the fund has historically had greater exposure to areas such as consumer discretionary and less exposure to materials than the broader Australian market.

For a long-term holding, I think prioritising strong profitability, manageable debt, and steadier earnings is a sensible approach.

Foolish takeaway

I would happily consider all three ETFs this September.

What I like most is that they give me ways to invest beyond the most obvious market exposures. I can broaden my US holdings, participate in India’s long-term development, and take a more selective approach to Australian shares.

For investors prepared to hold through the inevitable ups and downs, I think each could have a place in a long-term portfolio.

The post Why I’d buy these Betashares ETFs in September appeared first on The Motley Fool Australia.

More reading

• 3 strong ASX ETFs I’d buy to try and beat the market
• 3 super ASX ETFs for beginner investors
• 3 Betashares ETFs I’d buy and hold for 10 years

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

As investors look to gain portfolio exposure to the AI buildout, there are several ASX ETFs on the market to consider. 

While past performance doesn’t guarantee future gains, it can be helpful to look at projections when comparing options. 

Three of the most notable AI ASX ETFs include: 

• Global X Semiconductor ETF (ASX: SEMI)
• Global X Ai Infrastructure ETF (ASX: AINF)
• Global X Artificial Intelligence ETF (ASX: GXAI). 

How are these funds different?

While all of these funds offer AI exposure, they are built in different ways. 

Firstly, Global X Semiconductor fund focuses on the semiconductor industry.

These are the chips and hardware that power AI systems, including companies involved in chip design, manufacturing and equipment. 

Secondly, the Global X AI Infrastructure ETF takes a broader “picks-and-shovels” approach to AI, investing in companies that provide the infrastructure needed to develop and run AI. This includes data centres, networking, power and semiconductors. 

Finally, the Global X Artificial Intelligence ETF is the most directly focused on AI applications and technology, investing in companies developing or benefiting from AI software, automation, machine learning and related technologies. 

In simple terms, SEMI is primarily about the chips, AINF is about the infrastructure that enables AI, and GXAI is about the broader AI ecosystem and its applications.

Which fund has performed the best?

The SEMI fund was first listed back in 2021, with GXAI listing in 2024 and AINF most recently in April 2025. 

Since April 2025 when all funds were available: 

• AINF is up 67%
• GXAI is up 43%
• SEMI is up 140%. 

Looking at the last 12 months: 

• SEMI is up 98%
• AINF is up 34%
• GXAI is up 22%

How much could $10,000 be worth in 12 months’ time?

Taking these results over the last year and projecting the same returns for the next 12 months, a $10,000 investment could be extremely profitable. 

Using the 12-month returns you provided and assuming, purely as a mathematical projection, that each fund repeats the same return over the next year:

• SEMI: A 98% return would turn $10,000 into $19,800 – a $9,800 gain.
• AINF: A 34% return would turn $10,000 into $13,400 – $3,400 gain.
• GXAI: A 22% return would turn $10,000 into $12,200 – a $2,200 gain.

So, if those past 12-month returns were repeated exactly, SEMI would produce the largest projected result at $19,800, followed by AINF at $13,400 and GXAI at $12,200. 

However, these are hypothetical projections rather than forecasts, and past performance does not reliably indicate future returns. 

The post How much could $10,000 invested in these AI focussed ETFs be worth in a year? appeared first on The Motley Fool Australia.

More reading

• 3 fantastic ASX ETFs for Aussie investors in September
• Want to invest in AI shares? Here’s how to do it on the ASX
• Why these ASX ETFs are on my watchlist
• 3 super ASX ETFs for beginner investors
• Down 21% in six weeks, what’s happened to SEMI ETF?

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