Tag: Stock pick

The Genesis Energy Ltd (ASX: GNE) share price is in focus as the company reported an 11.6% rise in electricity netback to $189/MWh for Q4 FY26 and completed the final stages of its single brand transition, despite warmer temperatures delivering outcomes at the lower end of expectations.

What did Genesis Energy report?

• Electricity netback: $189/MWh, up 11.6% on prior corresponding period (pcp)
• Total customers: 490,227, down 5.8% on pcp, with the final stage of transition to a single brand
• Total electricity sales: 1,543 GWh, down 153 GWh on pcp, reflecting milder temperatures and brand migration
• Hydro generation: 703 GWh, down 1 GWh on pcp, with increasing storage levels
• Thermal generation: 527 GWh, down 567 GWh on pcp, with Huntly Unit 5 in temporary hibernation until December 2026
• FY26 EBITDAF expected at the lower end of guidance range

What else do investors need to know?

Genesis continued to progress on strategic priorities, notably commissioning Stage 1 of the Huntly Battery Energy Storage System, with Stage 2 moving into detailed design. The company remains on track with its $145 million digital investment rollout, including billing and CRM system upgrades set for phased migration starting in Q2 FY27.

The customer base declined, mainly due to migration to a single brand and simplified product offering, which accelerated during the quarter. Genesis expects around $5 million in one-off operating expenses in FY26 due to this brand transition, with a further $6 million anticipated in FY27 before marketing expenditure returns to normal levels from FY28.

Despite milder weather affecting demand, hydro storage ended the quarter at strong levels, positioning Genesis well for the start of FY27. Coal stockpiles remain robust at over one million tonnes, and gas supply security has been bolstered with new contracts.

What’s next for Genesis Energy?

Genesis will continue its transformation strategy, focusing on growing renewable generation and digital innovation. The company is targeting delivery of its Huntly BESS projects and grid-scale solar developments over coming years, with Tihori Solar Farm scheduled for Q1 FY28 commissioning and Leeston aiming for final investment decision in Q1 FY27.

Efforts to streamline to a single brand are designed to align supply and demand, enhance margins, and unlock value through better utilisation of flexible generation assets. Investors can expect focus to remain on margin quality, digital capability, and further expanding renewable capacity to support medium-term growth.

Genesis Energy share price snapshot

Over the past 12 months, Genesis Energy shares have risen 1%, matching the S&P/ASX 200 Index (ASX: XJO), which has risen 1% over the same period.

View Original Announcement

The post Genesis Energy Q4: Margin lifts as single brand shift nears finish 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.

There are some ASX dividend stocks I’d rather own for income than rely on the Age Pension.

The Age Pension is wonderful and generous, and it’s steadily growing over time. But there are ASX passive income ideas that are growing their payouts faster and offer a compelling dividend yield.

L1 Long Short Fund Ltd (ASX: LSF) is a listed investment company (LIC) that’s offering investors numerous benefits. Let’s dig into those positives.

Dividend yield and payout growth

We’ll start with the passive income, seeing as that’s the focus of this article.

The LIC recently started paying investors a quarterly dividend, which is very pleasingly regular.

I expect the business to pay dividends that total 15.8 cents per share over the next 12 months, which equates to a future grossed-up dividend yield of 5.1%, including franking credits.

The business started paying an annual dividend in FY21 and has increased its dividend every year since then. Since switching to quarterly payouts, it has grown its quarterly dividend every quarter.

The dividend is increasing at a pleasing pace, I expect the combined last two quarterly dividends of FY26 will be 15% higher than the FY25 second half dividend. That’s a very pleasing rate of annual growth, in my view – far stronger than today’s elevated inflation.

Diversification

Another benefit to owning the L1 Long Short Fund is that the LIC owns a diversified portfolio which usually gives investors exposure to a number of sectors such as materials, industrials, communication services, financials and utilities.

Currently, some of the ASX dividend stock’s key areas of focus include gold, copper, construction materials, infrastructure and select financials.

L1 does a great job at investing in unloved shares and sectors that look undervalued but can still deliver good returns.

Its portfolio is tilted towards quality value stocks, with its average long position trading on a price/earnings (P/E) ratio of 10, with double-digit earnings per share (EPS) growth and modest debt levels.

Capital growth

Another benefit of ASX shares is that they can deliver long-term capital growth as they increase their underlying value.

L1 Long Short Fund has delivered strong investment returns, allowing it to hike its payouts and deliver share price growth as its portfolio increases in value.

The portfolio returned an average of 16.9% per year over the five years to 30 June 2026, driving a 70% rise in the L1 Long Short Fund’s share price over the period.

Of course, past performance is not a guarantee of future returns.

How many shares it takes to equal the Age Pension

The maximum level of income that an Australian can get from the Age Pension equates to around $1,200 per fortnight or around $31,200 annually.

Based on that, excluding franking credits, an investor would need 197,469 L1 Long Short Fund shares. But, with a growing dividend and rising share price, it makes me think the ASX dividend stock would be an excellent long-term investment.

It wouldn’t be the only investment I have in a dividend portfolio, but I’m happy it’s one of the largest positions in my own portfolio.

The post 197,469 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) shares have already enjoyed a strong run, which can make buying today feel less attractive.

But even at the current price, I think the mining giant still has plenty going for it.

Here are three reasons I would buy BHP shares today.

The valuation still looks good

BHP shares are trading around $59.76.

According to CommSec consensus estimates, the company is expected to generate earnings per share of $3.51 in FY26 and $3.63 in FY27.

That puts the shares on a price-to-earnings ratio of approximately 17 times FY26 earnings and 16.5 times FY27 earnings.

BHP is no longer the bargain it was when commodity sentiment was weaker and the shares were trading much lower. At current levels, I still think investors are paying a fair price for a business with high-quality assets and a positive long-term outlook.

The dividend adds another reason to consider the shares.

CommSec forecasts dividends per share of $2.18 in FY26 and $1.95 in FY27. Based on the current price, that represents forward dividend yields of around 3.6% and 3.3%.

Those dividends will move with commodity prices and earnings, so I would not treat them as guaranteed. Even so, they could provide a solid income contribution while investors wait for BHP’s growth investments to deliver.

The outlook is increasingly tied to copper

BHP’s earnings mix is changing.

Copper contributed more than half of the company’s underlying earnings during the first half of FY26, showing how important the commodity has already become to the group.

I think that exposure could become even more valuable over the next decade.

Copper is needed for electricity networks, renewable energy, data centres, transport, manufacturing, and the continued digitalisation of the global economy. Developing new mines can take many years, which gives established producers with large, low-cost operations a strong starting position.

BHP produced around 2 million tonnes of copper for the second consecutive year in FY26 and continues to progress growth options across Escondida, Spence, South Australia, and other regions.

Iron ore should remain a major source of cash flow, supported by BHP’s large Western Australian operations. That cash can help fund future copper developments and the company’s move into potash.

The Jansen project in Canada is expected to begin potash production in 2027. Costs and project execution will require close attention, although the commodity could eventually give BHP exposure to rising food demand and agricultural productivity.

BHP can improve portfolio diversification

I think owning some resources exposure can strengthen a long-term ASX portfolio.

Mining shares respond to commodity prices, global industrial activity, currency movements, and infrastructure investment. Those forces can produce returns that look very different from banks, supermarkets, healthcare companies, or technology shares.

That does not mean BHP will perform well during every market downturn. Commodity cycles can be brutal, and earnings can change quickly when prices fall.

However, a measured resources allocation can give a portfolio another source of growth and income.

If I were choosing one ASX mining share for that role, BHP would be my first choice. Its scale, asset quality, balance sheet, and growing copper exposure make it a stronger all-round option than relying on a smaller producer tied to one project or commodity.

Foolish takeaway

At $59.76, BHP shares are no longer priced like an overlooked bargain, although I still think the valuation provides room for attractive long-term returns.

The company’s earnings base is gradually shifting towards copper, while iron ore continues generating cash and potash could open another substantial source of growth.

For investors wanting resources exposure as part of a diversified portfolio, I think BHP shares are worth buying today and holding through the commodity cycle.

The post 3 key reasons to buy BHP shares today appeared first on The Motley Fool Australia.

More reading

• How many BHP shares do I need to buy for $10,000 of passive income?
• BHP shares have tripled in the past 10 years. Could history repeat itself over the next decade?
• Is the BHP share price a buy for its 5% dividend yield?
• BHP shares soared 62% in FY26. Can they keep climbing?
• Why I think BHP is the best ASX mining share

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

Megaport Ltd (ASX: MP1) and WiseTech Global Ltd (ASX: WTC) sit behind parts of the global economy that are becoming increasingly complex.

Both companies have substantial room to grow if they can keep turning that complexity into demand for their technology.

But are their shares top buys today?

Megaport shares

Megaport helps businesses connect their data, cloud services, and digital infrastructure through a software-controlled global network.

That role could become increasingly valuable as companies spread their technology across multiple cloud providers, data centres, countries, and computing environments.

Setting up traditional network connections can be slow and inflexible. Megaport allows customers to establish and adjust connections through its platform, giving them greater control over where data moves and how quickly capacity can change.

The company had more than 4,000 customers and was enabled in over 1,100 data centres at the end of the first half of FY26. Annual recurring revenue had also grown to more than $338 million.

I think that existing network creates a strong platform for further expansion. Every new location, cloud partner, and customer can give other businesses another reason to use Megaport.

Artificial intelligence (AI) could open another stage of growth. AI workloads may need to move between data centres, cloud platforms, storage systems, and specialised computing capacity. Megaport is expanding beyond connectivity into areas such as compute and storage, which could allow it to capture more spending from customers building modern digital infrastructure.

That expansion will require careful execution. The company is reinvesting for growth and integrating acquisitions, so investors will need to watch costs, margins, and whether new products gain traction.

Even with those uncertainties, I think Megaport has a bright future. Its global reach and recurring revenue make the shares a buy for me.

WiseTech shares

WiseTech provides software that helps logistics companies manage the movement of goods around the world.

CargoWise brings customs, freight forwarding, warehousing, transport, compliance, and other logistics processes into a single platform. It is used by 46 of the world’s 50 largest third-party logistics providers and 23 of the 25 largest global freight forwarders.

That level of adoption tells me the software has become much more than a convenient tool for many customers. It can sit at the centre of daily operations across countries, teams, and supply chains.

Replacing a system with that reach could be expensive and disruptive, which can support long customer relationships and recurring revenue.

The e2open acquisition could widen the opportunity considerably. It brings technology and connections covering a broader part of the supply chain, giving WiseTech the chance to link logistics execution with manufacturers, suppliers, distributors, and other participants in global trade.

Artificial intelligence could also improve the investment case. Logistics still involves a huge amount of paperwork, manual data entry, compliance work, and decision-making. Automating more of those tasks could help customers reduce costs while increasing the value they receive from WiseTech’s platforms.

Integration, leadership, and governance still need close attention. In addition, the company is attempting an ambitious transformation, and I would keep my position measured while management proves it can deliver.

However, I think the long-term potential remains substantial. WiseTech has built a deep position in global logistics software, and the shares are a buy for me.

Foolish takeaway

I think Megaport and WiseTech are both top buys for investors willing to accept the volatility that can come with ambitious technology companies.

The strongest part of each investment case is the chance to become more deeply embedded as customers deal with growing digital and operational complexity.

That should give both companies several ways to increase revenue over the next decade, provided management continues executing well.

I would buy the shares with a long holding period and give their growth strategies enough time to develop.

The post Are Megaport and WiseTech shares top buys? appeared first on The Motley Fool Australia.

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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 positions in and has recommended Megaport and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Commonwealth Bank of Australia (ASX: CBA) share price has been a solid performer for shareholders over the long term and short term, as the chart below shows.

CBA is a highly-followed business in Australia as it’s the largest bank and one of the largest companies in Australia. It plays an important part in the S&P/ASX 200 Index (ASX: XJO) too.

Let’s take a look at how CBA has performed in the past six months. Of course, past performance is not a reliable indicator of future performance.

Good CBA share price performance

In the last six months, the Commonwealth Bank of Australia share price has risen by 14%. In the same time period, the ASX 200 dropped 0.3%, so CBA has outperformed significantly.

Of course, a return is decided by the ending price and the starting point. It started the six-month period at around $150, which was a relative low point of the past 12 months. While it’s up 14% in the last six months, it’s actually slightly down in the past year.

That means a $10,000 investment from six months ago is now worth $11,

What drove the ASX bank share?

In the short term, the CBA share price is affected by daily news events, such as developments in the Middle East. Changes in interest rates can also affect the share price, depending on investors’ views of its potential profitability.

But, in the longer-term it’s the ASX bank share’s profitability that will drive performance. The latest update from the bank was for the three months to 31 March 2026.

In that update, CBA reported cash net profit of around $2.7 billion, up 4% year over year. It also represented 1% growth compared to the quarterly average from the first half of FY26. For the period, CBA said operating income was flat, with benefits from lending and deposit volume growth.

Year over year, CBA’s business lending grew 12.5%, household deposits grew 9.1% and home lending increased 7.1%.

Excluding restructuring and notable items, the operating expenses grew by 1%, primarily due to higher cloud computing volumes, software licensing and investment in AI capabilities.

One of the key negatives for the business was the loan impairment expense of $316 million, with higher collective provisions, reflecting heightened geopolitical and macroeconomic uncertainty.  But it said the underlying portfolio credit remained solid.

Is the CBA share price a buy today?

Analysts certainly don’t seem to think this is a good time to invest. According to CMC Invest, there have been seven ratings on the business in the last three months, with all of those being a sell.

Sadly, the average price target is $120.51, suggesting a possible decline of around 30% from where it is today.

There could be plenty of better opportunities out there.

The post $10,000 invested in CBA shares 6 months ago is now worth… appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

Siteminder Ltd (ASX: SDR) shares have gone through a tough run, falling more than 50% since October 2025, as the chart below shows. I think the ASX share is now heavily undervalued for its long-term future and is one of Australia’s top shares.  

Siteminder provides software to help hotels around the world run their operations, analyse demand and room rates, and advertise their rooms.

It’s understandable investors are uncertain about what could happen next with the possibility of AI competition. At this price, I think the business’ ongoing rapid growth will help spur strong shareholder returns.

Strong revenue growth

One of the biggest drivers in deciding the returns of a business is how much revenue growth they can produce.

Revenue growth is the start of a financial flowchart that ends with the net profit.

In the FY26 half-year result, Siteminder reported total revenue growth of 25.5% to $131.1 million.

Subscription revenue grew 17.7% to $78.1 million thanks to property growth and average revenue per user (ARPU) expansion. It added 2,900 properties during the FY26 first-half, taking its total properties to 53,000 – it continues to target larger hotel properties.

On the transaction revenue growth side of things – which includes its new initiative smart platform contributions – the company saw revenue reach $53 million, up 39.1%.

It’s good to see there are various elements helping the business grow, which I think is a key sign for it being one of Australia’s top shares.

Big ambitions

One of the main factors that ultimately decides how big the returns can be is how large the company can become compared to what it is today. How much can the company grow its revenue? What is its total addressable market? What growth rate can it maintain?

Siteminder thinks it could grow its ARPU by five times if its existing customer base fully adopts its smart platform. The ASX share believes that AI can increase “pricing dynamism and distribution complexity”. Siteminder thinks it can capture a greater share of the market over time.

As its smart platform scales, management believe it positions Siteminder to accelerate towards its annual 30% revenue growth in the medium-term. I think any business growing revenue at that speed is worthwhile considering.

Rising profit margins

One of the most appealing things about a software business is how much operating leverage they have. In other words, they can deliver rising profit margins as they grow larger, allowing their net profit to soar. That’s a great sign of it being one of Australia’s top shares.

Time will tell how high the company’s profit margins can go, but the signs looked positive in the FY26 first half. The adjusted group gross profit margin improved 98 basis points to 67.8%, while the adjusted operating profit (EBITDA) more than doubled to $12.3 million and the adjusted net loss more than halved to $3.9 million.

Pleasingly, the adjusted free cash flow was positive, reaching $2.7 million compared to a $0.6 million loss in the first half of FY25.

In the coming years, I expect Siteminder’s net profit and cash flow to soar, which should hopefully justify a higher Siteminder share price.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

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

CSL Ltd (ASX: CSL) shares closed in the red again on Wednesday afternoon. The shares ended the day down around 3% at $117.94 a piece.

The shares started rebounding in late-June and early-July but after peaking at $125.53 last week, the selloff resumed. 

The latest slide means the ASX biotech shares are now down around 31% over the year-to-date, and 55% lower than trading levels this time last year.

Why are investors selling off their CSL shares again?

There hasn’t been any price sensitive news out of CSL recently, but there has been a clear shift in sentiment towards a more cautious outlook.

It’s likely that the latest share price softening is the result of investors taking their gains off the table after the latest rally.

It looks like many investors are now looking forward to the company’s FY26 results announcement due next month. And are eager to see if there is any sign that management has improved operations since its latest disappointing update.

In May, CSL announced FY26 revenue guidance of around US$15.2 billion and NPAT of around US$3.1 billion. Both of these figures came in below market expectations.

The company also flagged expectations of another US$5 billion of non-cash impairments across FY26 and FY27.

My view on CSL‘s future

I think there is a lot of potential for CSL going forward. The business operates in a high-growth biotech market and its blood plasma division dominates the market for rare blood disorders and immunoglobulin products. 

Global demand for plasma therapies is expanding quickly, too. There is recurring demand for pharmaceutical therapies and limited competition, which means CSL can easily carve out a significant portion of the market.

I think that once CSL is able to turn around its financials, investor confidence will quickly follow. As for the immediate outlook, the share price increase over the remainder of 2026 will hinge on the company’s FY26 results, and whether the final figures meet or exceed expectations.

Do brokers still rate the biotech shares as a buy?

A few months ago, brokers were incredibly optimistic about the outlook for CSL shares, with the majority forecasting significant upside.

But now there has been a turnaround in expectations

Market Index data shows that the majority of brokers have now downgraded their rating on CSL to a hold. But the $131.15 average target price implies a potential 11% upside at the time of writing.

TradingView data also shows some analyst sentiment shifts. Out of 18 analysts, 10 now have a hold stance on the biotech company’s shares, and another eight have a hold or strong hold rating.

The average target price is a little higher at $138.88, which implies a potential 18% upside at the time of writing. 

The more bullish of the bunch think CSL shares could climb 68% to $197.85 over the next 12 months. Whereas more bearish brokers think there is potential for the shares to fall another 12% to $103.58 a piece, at the time of writing.

The post Down 55% in a year: Do brokers still rate CSL shares as a buy? appeared first on The Motley Fool Australia.

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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 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.

Passive income is one of the most rewarding things about investing. Getting money paid into my bank account year after year sounds great to me.

There are a wide range of investments available on the ASX such as ASX blue-chip shares. But, the biggest businesses aren’t necessarily the best names to buy with how large they already are and the limited earnings growth prospects.

Banking is becoming increasingly competitive, while resource prices are unpredictable at the best of times. In my view, the two passive income ideas below are better options than names like Commonwealth Bank of Australia (ASX: CBA), and could be used to generate $200 per month (or more)

APA Group (ASX: APA)

If I’m investing for passive income, I’d want to choose names I’m confident will continue paying dividends, even in difficult times.

APA is one of the largest energy businesses in Australia. With its key asset being national gas pipelines that span the country for tens of thousands of kilometres. It transports approximately half of the nation’s gas usage, so APA is an essential business for Australia.

It also owns a number of other important assets including gas processing, gas storage, gas power stations, electricity transmission, solar farms and wind sales.

The business regularly expands its asset portfolio.

For example, last week it announced that the Australian Energy Regulator (AER) had approved APA’s $213 million expansion of the South West Pipeline in Victoria to help meet projected peak day gas shortfalls from 2029, which will allow for more Victorian gas from the Otway Basin and Lochard’s Iona underground gas storage facility.

The business has a $3 billion organic growth pipeline, which gives it significant optionality to increase earnings and cash flow in the coming years. Plus, most of its revenue is climbing because it’s linked to inflation.

Why is it such a good passive income idea? It has increased its distribution every year for the past 20 years, which is an incredibly consistent and reliable record.

I expect the business could pay a distribution of at least 59 cents per security in 2027, which translates into a distribution yield of 5.75%.

WCM Quality Global Growth Fund (ASX: WCMQ)

The other ASX share I want to highlight is this exchange-traded fund (ETF) which focuses on investing in a portfolio of between 20 to 40 high-quality global stocks.

The fund’s goal is to outperform the global share market, which (as of June 2026) it has done over the past three months, three years, five years and since the ETF’s start in August 2018.

It looks for stocks with improving economic moats and corporate cultures that strengthen their competitive advantages. In my view, it’s a very effective investment strategy, and it’s likely to continue delivering strong returns over time, with very little reliance on the ‘Magnificent Seven’ for those returns.

In terms of the passive income, it targets a minimum annualised cash yield of at least 5% per annum. Net returns that are stronger than 5% can help up push up the value of the fund and support larger payouts in the future.

$200 of monthly passive income

The average dividend yield of these two stocks is 5.4%. Therefore, to generate $2,400 of annual passive income ($200 per month), it would take $44,444 spread across these two ideas.

But, these aren’t the only ASX shares I’d choose for passive income because I’d want to have a diversified portfolio.

The post 2 passive income ideas I’d use to generate $200 a month in 2027 appeared first on The Motley Fool Australia.

More reading

• How much do I need in superannuation to receive $5000 per month in passive income?
• How I would turn $200,000 into an ASX retirement income portfolio
• How to build an ASX dividend portfolio that keeps paying you for decades
• How to make $50,000 of passive income from ASX shares like CBA
• How I would build an ASX portfolio with just 3 investments

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

Paladin Energy Ltd (ASX: PDN) shares were on form on Wednesday.

The uranium producer’s shares rose almost 7% to finish the day at $9.13.

The good news is that Bell Potter believes there is a lot more to come from this ASX share.

What is the broker saying?

Bell Potter was pleased with the mining company’s performance during the fourth quarter, noting that it outperformed expectations. It said: 

PDN reported quarterly U3O8 production of 1.3Mlb (BPe 1.1Mlb; FY26 4.8Mlb), sales of 1.4Mlb (BPe 1.2Mlb; FY26 4.4Mlb) and closing U3O8 inventory of 1.7Mlb on completion of mining and processing ramp-up. PDN realised an average price of US$71/lb (up 3% QoQ; FY26 US$70/lb). Production costs were US$52/lb (FY26 US$43/lb), up 28% QoQ reflecting the transition to full mining activities and depletion of stockpiled MG3 ore.

PDN outperformed FY26 guidance across all metrics. At 30 June 2026, PDN had cash and investments of US$265m (31 March 2026 US$220m), net cash (excluding leases) of US$113m and available liquidity of US$335m.

Looking ahead, FY 2027 is set to be another solid year for the company, with production expected to grow to between 5.1Mlb and 5.6Mlb.

However, it will be weighted to the second half of the year. Bell Potter commented:

PDN’s FY27 guidance points to U3O8 production of 5.1-5.6Mlb and sales of 4.8- 5.3Mlb, weighted to 2H with ore feed grades to lift as mining progresses through J Pit and with maintenance shutdowns scheduled for 1H. Unit cost guidance is consistent with FY26 at US$44-48/lb and should trend lower throughout the year as production ramps. Capex (excluding capitalised stripping and building of low-grade stockpiles) of US$25-29m will target tailings storage construction, process optimisation studies and infill drilling.

Paladin Energy shares tipped to rocket

According to the note, in response to the update, Bell Potter has retained its buy rating on the company’s shares with a trimmed price target of $14.80 (from $15.30).

Based on its current share price of $9.13, this implies potential upside of 62% for investors over the next 12 months.

Commenting on its recommendation, Bell Potter said:

We retain our Buy recommendation. We have a positive medium- to long-term outlook for the uranium market, supported by barriers to new supply and demand growth linked to electrification, energy security and AI-related power requirements. PDN has around ~53% exposure to spot prices out to 2030. Production at LHM continues to improve with higher-grade mined ore feeding the processing plant and continued process optimisation.

The post Why Paladin Energy shares could rise 60% appeared first on The Motley Fool Australia.

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• Paladin Energy sets FY2027 Langer Heinrich uranium guidance
• 5 things to watch on the ASX 200 on Wednesday

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.

It has been a bit of a topsy-turvy month for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares. Although the index is technically sitting pretty flat, having gone backwards by 0.04% since this time in June, we’ve seen it go from the low 8,700s to as high as 8,850 points. That’s a range worth more than 1.5%.

Of course, there have been several events on the global stage that easily explain this volatility. Most of all, the resumption of hostilities in the Middle East has exacerbated fears of a new energy crisis.

In this climate, it can be difficult to find the confidence to invest in new ASX shares. However, I still think there are buys out there. So here are two ASX shares that I’d buy this July.

2 ASX shares to buy this July

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

First up, we have Washington H. Soul Pattinson, or Soul Patts for short. This company is a rather unique stock on the ASX. It functions more as an investment holding company than your traditional ASX share. Buying its shares represents buying an ownership stake in Soul Patts’ vast underlying investment portfolio. This portfolio is well diversified. It contains several large stakes in other ASX shares, a broad-based portfolio of large-cap ASX shares, property assets, private credit, venture capital and more.

Soul Patts has a track record that spans decades. This, in my view, displays its investing acumen in a very favourable light indeed. To illustrate, as of 31 January, Soul Patts investors have enjoyed an average return of 12.9% per annum (share price growth plus dividends). That’s well above what the ASX 200 has delivered over the same span.

Speaking of dividends, Soul Patts also has one of the best dividend track records on the ASX, having delivered an annual dividend rise every year since 1998. That’s 28 years and counting. All in all, this is an ASX stock I’d buy any day.

iShares Global Consumer Staples ETF (ASX: IXI)

Our next ASX share is not really an ASX share at all, but an exchange-traded fund (ETF). The iShares Global Consumer Staples ETF houses a portfolio of underlying shares that are drawn from all over the world. These shares are all leaders in the consumer staples sector.

Consumer staples are goods that we tend to need to buy. They include food, drinks, household essentials, as well as alcohol and tobacco products. Because of the nature of these products, consumer staples companies tend to be highly resilient investments, capable of surviving and even thriving during economic shocks or downturns. After all, we all need to eat, drink and stock our households, regardless of the economic weather.

You’ll probably recognise many of the investments that can be found in IXI’s portfolio. They currently include Coca-Cola, Unilever, Costco, Colgate-Palmolive, and Philip Morris International. Our own Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) are also present.

If you’re nervous about the current geopolitical climate, this might be an investment worth considering today.

The post 2 ASX shares I’d buy this July appeared first on The Motley Fool Australia.

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• How much is needed in superannuation to target a $100,000 annual passive income?
• How much do I need in my superannuation to earn an annual $60,000 passive income?
• Here are the top 10 ASX 200 shares today
• 3 ASX dividend shares that look better after CGT reforms

Motley Fool contributor Sebastian Bowen has positions in Coca-Cola, Costco Wholesale, Philip Morris International, Unilever, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Colgate-Palmolive, Costco Wholesale, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Philip Morris International and Unilever. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.