Tag: Stock pick

The team at Morgans was busy running the rule over the results of a number of popular ASX stocks last week.

Let’s see how three big names fared after the broker reviewed their updates. Are they buys, holds, or sells?

ANZ Group Holdings Ltd (ASX: ANZ)

Morgans concedes that ANZ’s first-quarter update implies that it is trading ahead of expectations during the first half of FY 2026.

However, it notes that this was driven by cost reductions. So, with management retaining its cost guidance for the full year, it isn’t getting overly excited by the update.

In fact, due to valuation reasons, the broker has downgraded ANZ shares to a sell rating with a slightly improved price target of $32.65. It said:

On face of it, the 1Q26 trading update suggested ANZ was tracking ahead of 1H26 growth expectations.  However, the beat was driven mostly by the speed of cost-out and will unlikely affect consensus expectations as ANZ retained its FY26 cost guidance of c.$11.5bn. We make minor adjustments to FY26-28F EPS, reflecting 1Q26 Markets revenue strength, impairment charges lower than expected (but off an already low base), and higher shares on issue (DRP uptake was higher than assumed). 12-month target price $32.65 (+8 cps).

We estimate ANZ is trading on 1.8x P:TBV, 16x PER, and 4.1% cash yield (partly franked), all stretched against historical trading ranges. Given the recent share price strength, we downgrade our rating from TRIM to SELL with a potential TSR of -15%.

Breville Group Ltd (ASX: BRG)

Morgans was pleased with this appliance manufacturer’s half-year results and particularly its operational execution in a difficult environment. In light of this, the broker has retained its buy rating with an improved price target of $40.65. It explains:

1H26 was better-than-feared, with double-digit sales growth (+10%) largely offset by tariff costs (~130bp GM impact) to deliver a flat NPAT outcome (+1% on pcp). Crucially, FY26 EBIT growth guidance provides much-needed earnings visibility, alleviating some concerns for an extended transition year and improving our confidence for a resumption of sustainable EPS growth from FY27+.

We continue to be impressed by BRG’s strong operational execution, green shoots in Food Prep, and powerful medium-term tailwinds (geographic expansion, espresso tailwinds, NPD, Best Buy developments). Buy maintained.

South32 Ltd (ASX: S32)

Lastly, diversified mining giant South32 delivered a first-half profit result and dividend that was ahead of the market’s expectations.

But due to a recent share price surge, the broker has been forced to downgrade South32’s shares to an accumulate rating (from buy) with an unchanged price target of $5.00. It explains:

Bumper 1H26 EBITDA comfortably ahead of consensus and close to our estimate, riding consistent production and higher base and precious metals. 15% interim dividend beat and upsized capital management of an extra US$100m. Not all positive, Hermosa budget increase flagged for H2 a ST risk to monitor. Guidance unchanged, besides Brazil Aluminium output and capex timing tweaks.

We lower our rating to ACCUMULATE (from BUY) with an unchanged A$5.00 TP, recommending patience when adding following the recent share price surge.

The post Buy, hold, sell: ANZ Bank, Breville, South32 shares appeared first on The Motley Fool Australia.

More reading

• Here’s an ASX 200 share that I think could beat Westpac in 2026
• Recap: Winners and losers from earnings season week 2
• Brokers re-rate CBA and ANZ shares after banks stun the market
• Brokers name 3 ASX shares to buy today
• What’s going on with ASX bank stocks this week?

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’s been an interesting time for ASX mid-cap stocks of late. We’re seeing some mid-caps outperform the broader market and with business spending predicted to continue picking up in 2026, many are poised for growth.

And it makes sense that this market is getting more attention. Mid-caps often have more resilience than their smaller counterparts and potentially more runway for growth than their larger ones.

Here are three that are worth adding to your watchlist.

Megaport Ltd (ASX:MP1)

Megaport may not be the most exciting name in AI tech right now, but it is a pivotal one. This Network-as-a-Service provider facilitates connectivity between data centres, cloud services and corporate networks with an on-demand model that allows business to access the bandwidth needed at any given point.

Its share price has been a little volatile of late, down over 10% in the last month, potentially due to some investor caution about its relatively high price-to-sales ratio and broader weakness in the tech sector.

However, Megaport delivered solid results in FY25 and has some strong, tailwinds, with the surge in AI usage driving demand for fast, low-latency interconnection.

In FY25, it reported 20% growth in Annual Recurring Revenue (ARR), 16% growth in total revenue ($227.1 million) and an 18% lift in large customers. And it is moving forward with a compute-as-a-service arm through the acquisition of Latitude.Sh, a play that will expand its global reach and capability.  

Although recent indicators are positive, right now, this might be a buy for investors with a slightly higher risk tolerance than me. But I do think there is potential value here. I’m adding it to my watchlist with a sneaking suspicion that it might be one I later regret not jumping on.

HUB24 Ltd (ASX: HUB)

While this stock has gained more attention recently, for me, it deserves still more of the spotlight. At current prices, I believe it’s conservatively valued and poised for growth.

HUB24 is an Australian investment and superannuation platform, delivering technology solutions to the financial advice sector. It offers a range of cloud-based and platform products to accountants, wealth advisers and financial planners, from compliance to reporting.

It’s been recognised as the overall market leader in platform functionality in successive Investment Trends annual benchmarking reports. And it is an industry favourite with rapidly growing funds under management, reporting record quarterly net inflows of $5.6 billion in Q2 FY26. 

The quality of its platform is fast creating a competitive moat for this local tech success story, particularly as the financial advice industry faces ever more complex regulation.  

In FY25, it posted revenue of $406.6 million, representing 24% year-on-year growth. In addition, it’s underlying EBITDA margin grew to 39.9%, indicating solid operating leverage.

Its share price is sitting at $76.57, down from a 12-month high of $122.03, making now an attractive entry point for investors. 

Objective Corporation Ltd (ASX: OCL)

Objective is another player in the tech space that is perhaps not garnering as much attention as it deserves. It delivers mission-critical technologies to government and enterprise, everything from planning tech for local councils to disclosure management software for HUB24.

It has seen some share price decline over the last year, down circa 15%, driven by the broader pullback across the tech sector. Investors may also be cautious about its reliance on heavily regulated industries in the current climate.

That said, I think Objective is primed for growth.

In FY25, it reported:

• A 15.1% jump in ARR to $120 million
• Net profit after tax growth of 13% to $35.4 million
• Total dividends of 22 cents per share

It has a solid defensive moat, too, being embedded in large-scale government and defence clients. And it has demonstrated a commitment to constant innovation with a healthy investment in research and development in FY25.

Objective is attractively priced right now. And, in my opinion, it’s one to consider for long-term investors who are prepared for the prospect of some shorter-term volatility.    

The post ASX tech mid-cap stocks to watch this earnings season appeared first on The Motley Fool Australia.

More reading

• 13 ASX 200 shares hit multi-year lows as the market takes a breather
• A once-in-a-decade chance to buy ASX 200 tech stocks like WiseTech, Megaport and NextDC?
• 3 of the best Australian stocks to buy and hold until 2036
• My 10 best ASX shares to buy in February
• Where I would invest $10,000 in ASX 200 shares in February

Motley Fool contributor Melissa Maddison 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 Hub24, Megaport, and Objective. The Motley Fool Australia has positions in and has recommended Objective. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Reporting season is in full swing, and I’m seeing a lot of opportunities as share prices shift across the ASX share market.

When businesses are growing quickly, but they’re undervalued, there’s room for very good returns, in my eyes.

I think the two ASX shares below can outperform the S&P/ASX 200 Index (ASX: XJO) over the next few years.

Pro Medicus Ltd (ASX: PME)

The medical imaging software business has suffered a massive sell-off despite the ongoing financial success of the business. In the last month, it’s down more than 40% and the past six months show a decline of around 60%, as the chart below shows.

That’s an incredible decline for a business that has been one of the most impressive ASX share performers over the long term.

The FY26 half-year result was very solid. Revenue rose 28.4% to $124.8 million, and underlying profit before tax grew 29.7% to $90.7 million.

Incredibly, the underlying operating profit (EBIT) margin continues to improve – it rose to 73%, up from 72%. I don’t know how high it can rise, but the company’s bottom line looks like it has a very promising outlook.

It continues winning new, large contracts in the US, and this is helping drive the company’s financials higher. Also, it’s selling more modules to existing clients and winning cardiology contracts.

I don’t think AI will hurt Pro Medicus as much as some investors expect. It could help Pro Medicus in some ways if it leads to better/faster software development, or better features.

The company said its pipeline remains “very strong”. According to the forecast on CMC Invest, it’s currently valued at just 80x FY26’s estimated earnings, which is significantly smaller than it was before.

Centuria Industrial REIT (ASX: CIP)

The other ASX share I want to highlight is this real estate investment trust (REIT), which focuses on owning industrial properties across Australia in urban areas where demand is strong and supply is limited.

The industrial REIT reported that in the six months to 31 December 2025, it delivered 5.1% like-for-like net operating income growth. Rental income is being driven by increasing demand from population growth, e-commerce adoption, refrigerated space requirements (for food and medicine), and data centres.

With the result, the fund manager of the REIT, Grant Nichols, said:

CIP maintains significant earnings upside due to its strong, anticipated medium-term income growth resulting from material under-renting across the portfolio, expected improved portfolio occupancy, prudent completed capital management and the expected market rental growth stemming from Australia’s favourable industrial market conditions. Improving tenant demand and constrained supply is expected to drive the national vacancy to less than 2.0% by 2030, providing a pathway to continued strong market rental growth.

It reported its net tangible assets (NTA) per unit grew slightly to $3.95 during the six-month period, suggesting it’s trading at a discount of 19% at the time of writing.

The post 2 ASX shares I’d buy after seeing their results this week! appeared first on The Motley Fool Australia.

More reading

• Should you just forget ASX tech stocks after the AI selloff?
• Recap: Winners and losers from earnings season week 2
• Bell Potter names 3 sold-off ASX 200 shares to buy today
• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy today

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

Recent market volatility means that there are a number of ASX 200 shares that are trading at a deep discount to what analysts believe they are worth.

Two such examples are named below. Here’s what analysts are recommending this month:

Catapult Sports Ltd (ASX: CAT)

Bell Potter thinks that this wearables and sports analytics company’s shares could have major upside for investors over the next 12 months.

Last week, the broker retained its buy rating on the ASX 200 share with a reduced price target of $5.50. Based on the current Catapult Sports share price of $3.32, this suggests potential upside of 65% is possible between now and this time next year.

Bell Potter concedes that there is a chance that Catapult won’t be an ASX 200 share for much longer. However, it continues to believe that it is one of only a handful of quality ASX tech stocks in the mid cap space. The broker explains:

Catapult has a March year end so will not report its next result till May and we do not expect much if any news flow between now and then. There is some potential for Catapult to be removed from the S&P/ASX 200 Index at the next rebalance in March – given the recent price fall and despite the equity raising in November – after only being included in September last year.

This potential removal has perhaps also contributed to the fall in the share price. In its favour, however, Catapult is still one of the few good quality tech stocks in the mid cap space – even if it gets removed from the 200 but stays in the 300 – and so any rebound in the sector will likely see Catapult move in tandem.

James Hardie Industries plc (ASX: JHX)

The team at Morgans thinks that this building materials company’s shares are undervalued at current levels.

The broker recently put a buy rating and $45.75 price target on the ASX 200 share. Based on its current share price of $36.54, this implies potential upside of 25% for investors over the next 12 months.

Morgans was pleased with the company’s third-quarter update and believes the tide could be turning in the key US market. It explains:

JHX delivered a clean Q3 beat with sequential margin improvement, disciplined execution on AZEK integration, and early evidence that volumes in core Siding & Trim (S&T) are stabilising at low levels. While NPAT remains temporarily weighed by amortisation and higher interest, the underlying margin trajectory and synergy capture both point to improving earnings quality into FY27.

With US housing likely near the trough, we see medium-term upside as organic growth returns, synergies compound, and leverage falls toward <2.0x by 3Q28. We retain our BUY rating and lift our valuation to A$45.75/sh.

The post These ASX 200 shares could rise 25% to 65% appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 stocks smashing the benchmark this week
• Buy, hold, sell: James Hardie, CSL, and CBA shares
• Why did this broker just downgrade its price target on this exciting technology stock?
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• Here are the top 10 ASX 200 shares today

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

Light & Wonder Inc (ASX: LNW) is one of the top three largest ASX consumer discretionary stocks by market capitalisation.

Blue-chip companies are large, well-established businesses that already make steady profits, so they usually grow slowly rather than rapidly. 

Because they are already large and stable, there’s less room for dramatic expansion, which means their stock prices typically don’t have huge upside potential.

At the time of writing, ASX consumer discretionary stock Light & Wonder has a market capitalisation of over $12 billion. 

That puts it as one of the 100 largest companies in Australia. 

Despite its size and solid track record, a new report from Bell Potter indicates it also could come with the rare combination of stability and big share price upside. 

Here’s what the broker had to say. 

Expectations for 4Q25 for Light & Wonder

Light & Wonder is a global gaming and entertainment company that creates and supplies gaming machines, game content, and digital gaming platforms.

It provides electronic gaming machines to casinos and clubs, along with digital and casual/social games through its SciPlay division.

Light & Wonder is set to report fourth quarter and full year 2025 results on Tuesday, 24 February. 

Bell Potter said expectations for the 4Q25 result are relatively low. 

Consensus is expecting CY25 EBITDA ($1,435m) to come in at the low end of the company’s guidance range. ($1,430-1,470m). 

We see minimal risk of downside surprise at the result, however, the lumpiness and lack of visibility in the Gaming sales segment could create earnings volatility.

NASDAQ De-listing good news for ASX

In this week’s report, the broker also highlighted the change in guidance due to Light & Wonder de-listing from the NASDAQ exchange.

In November 2025, the company de-listed from the NASDAQ exchange and is now solely exposed to trade flows of the ASX.

The company said in an announcement last year: 

Our decision to transition to a sole primary listing on the ASX reflects our strategic focus on aligning our capital markets presence with our long-term growth plans and shareholder base.

Updated price target 

Based on this guidance, Bell Potter upgraded its outlook on this ASX consumer discretionary stock. 

The broker now has a price target of $230.00 along with a buy recommendation. 

Last week, Light & Wonder shares were hovering around $152.00 per share, which is more than 50% below Bell Potter’s updated price target. 

We rate LNW a Buy due to a compelling GARP profile relative to the ASX 100. 

We expect a continuation in the re-rate observed since the ASX sole listing in November 2025, as long as the company executes on market share gains in its respective markets. We believe LNW’s heightened investment in R&D will drive continued growth, particularly in the Premium leased market.

The post Guess which ASX consumer discretionary stock Bell Potter thinks is set to rise 50% appeared first on The Motley Fool Australia.

More reading

• Bell Potter names 3 sold-off ASX 200 shares to buy today
• Are Light & Wonder shares a buy after tumbling 7% yesterday?
• Here are the top 10 ASX 200 shares today
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• Is it still game on for Light & Wonder shares?

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 Light & Wonder Inc. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When ASX tech stocks fall 30%, 40%, or even 50% in a relatively short space of time, it’s natural to question the entire sector. Headlines turn negative, volatility spikes, and suddenly long-term growth stories are treated like broken business models.

I don’t think that’s the right conclusion.

In my view, selloffs often create the best long-term opportunities in quality technology stocks. The key is separating speculative hype from businesses that are still executing and expanding their addressable markets.

Here are three ASX tech stocks I’m not giving up on.

Life360 Inc. (ASX: 360)

Life360 is not just another app. It is building a global safety platform with tens of millions of monthly active users.

The company continues to grow both users and paying circles, and it has been steadily improving revenue and profitability metrics. Importantly, management has guided to continued strong monthly active user (MAU) growth in 2026, which tells me demand for its core product remains intact.

What I like most is the recurring subscription model. As more families join the platform and upgrade to paid tiers, revenue visibility improves. Yes, the share price has been volatile, but the underlying metrics still point in the right direction.

For me, that’s not a reason to walk away. It’s a reason to lean in selectively.

Pro Medicus Ltd (ASX: PME)

Pro Medicus provides imaging software to hospitals and healthcare systems, particularly in North America.

The company has continued to win large, long-duration contracts and expand its total addressable market. It also operates with exceptional margins and remains debt-free, which is rare in high-growth tech.

The recent selloff has been more about valuation compression and AI-related fears than operational deterioration. In my view, Pro Medicus’ cloud-native platform and strong customer relationships give it a durable competitive position.

When a high-quality, globally competitive ASX tech stock gets sold down heavily, I pay close attention.

WiseTech Global Ltd (ASX: WTC)

WiseTech has faced a perfect storm over the past year, including slower growth in parts of its core business, board and management upheaval, and broader tech weakness.

But the core product, CargoWise, remains deeply embedded in global logistics networks. Replacing it is not simple or cheap. That stickiness is a competitive advantage.

The ASX tech stock is also rolling out new products, refining its commercial model, and integrating acquisitions. If execution improves and growth re-accelerates, sentiment can shift quickly.

To me, this looks like a business navigating a difficult period, not one that has lost its moat.

Prefer diversification? Consider the ATEC ETF

I completely understand that picking individual ASX tech stocks during a volatile period is not for everyone.

That’s where the BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC) can make sense. It provides exposure to a basket of leading Australian technology names, including WiseTech, Pro Medicus, and Life360.

Instead of trying to time one specific stock, you gain diversified exposure to the broader sector. If you believe Australian tech can recover and grow over the long term but want to manage single-stock risk, this is a reasonable alternative in my opinion.

Foolish takeaway

Tech selloffs can feel uncomfortable. But in my experience, writing off an entire sector after a downturn is rarely the best strategy.

I’m not walking away from ASX tech stocks. I’m focusing on businesses with real products, recurring revenue, and large global opportunities. Whether through individual names like Life360, Pro Medicus, and WiseTech, or via a diversified option like the ATEC ETF, I still see long-term potential in the sector.

The post Should you just forget ASX tech stocks after the AI selloff? appeared first on The Motley Fool Australia.

More reading

• Recap: Winners and losers from earnings season week 2
• Bell Potter names 3 sold-off ASX 200 shares to buy today
• Brokers name 3 ASX shares to buy today
• Why WiseTech shares are plunging 11% today
• Why Austal, Cochlear, Nick Scali, and WiseTech shares are tumbling today

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 Life360 and 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 Life360 and 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.

If you are looking for big returns and a decent dividend yield, then look no further than the ASX shares in this article.

That’s because these shares are being tipped to increase over 50% from current levels by analysts. Here’s what you need to know:

CAR Group Limited (ASX: CAR)

Analysts at Bell Potter see significant value in this auto listings company’s shares. In response to its half-year results, the broker has put a buy rating and $39.80 price target on its shares. Based on its current share price of $25.07, this implies potential upside of 59% for investors over the next 12 months.

As for income, the broker expects partially franked dividend yields of 3.3% in FY 2026 and then 3.6% in FY 2027. It said:

CAR’s global network of auto and non-auto classifieds platforms has scaled the ability to generate cash flows supporting growth investment and shareholder returns simultaneously. CAR is proactively implementing AI solutions across its platforms and geographies on top of a technical eco-system integrated into Dealer management workflows, network effect and unique data sets. Retain Buy.

Jumbo Interactive Ltd (ASX: JIN)

Morgans thinks that this online lottery ticket seller could be an ASX dividend share to buy. Following the release of its preliminary results, the broker put a buy rating and $14.90 price target on its shares. Based on its current share price of $9.51, this suggests upside of 57% is possible for investors between now and this time next year.

It also expects fully franked dividend yields of 3% in FY 2026 and then 3.9% in FY 2027.

Commenting on the company, the broker said:

We have updated our estimates following JIN’s preliminary release of headline numbers ahead of the 1H26 result. Group revenue increased 29% yoy to $85.3m, modestly below our expectations due to weaker Lottery Retailing TTV. Underlying group EBITDA of $37.5m rose 22% on the pcp and was in line with our forecasts. Overall, our topline and earnings assumptions remain broadly unchanged. Our FY26-27F NPAT and EPS forecasts increase by 4% and 2% respectively, driven primarily by lower amortisation of acquired intangibles.

At its AGM, JIN revised its dividend payout ratio to 30-50% of statutory Group NPAT to support balance sheet deleveraging following recent acquisitions. The interim dividend will be determined at the 1H26 result (MorgansF: 28cps). We view the 5% share price decline today as an opportunity to build a position in a company capable of delivering >15% EPS CAGR over the next three years. JIN is trading on an undemanding forward EV/EBITDA multiple of ~6x.

The post 2 ASX dividend shares tipped to grow 50% (or more) in 2026 appeared first on The Motley Fool Australia.

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

The ASX stock Charter Hall Long WALE REIT (ASX: CLW) is a leading candidate for regular passive income thanks to its quarterly distribution frequency.

It’s a real estate investment trust (REIT) that owns a diversified portfolio of different defensive tenant industries including government tenants (such as Geoscience Australia), pubs, grocery and distribution, data centres, telecommunication exchanges, service stations, food manufacturing, Bunnings properties and more.

The portfolio is spread across Australia’s states and territories, as well as a small portion in New Zealand.

The ASX stock reported its result for the six months to 31 December 2025. The numbers are one of the main reasons why I think the business is a buy.

Good passive income

Charter Hall Long WALE REIT reported that its operating earnings per security (EPS) grew 2% to 12.75 cents. With its 100% distribution payout ratio, the distribution per unit was also hiked by 2% to 12.75 cents.

The business has provided guidance that it’s going to grow its distribution per unit by 2% to 25.5 cents in FY26, paid quarterly. That translates into a distribution yield of 6.8%, which is a very strong level of income, in my view.

At that level, to make $2,000 of annual passive income, we’d need to own 7,844 units of the ASX stock.

Why I think it’s a good time to invest

It’s good to see rental and earnings growth by the business. It reported 3% growth in like-for-like net property income (NPI), which is a solid rate of progress and helps offset inflation.

The business looks undervalued considering it reported its net tangible assets (NTA) rose by 2% since 30 June 2025 to $4.68. That means, at the time of writing, it’s trading at a 20% discount, which I think is an attractive discount.

The portfolio is in a good position, with a portfolio occupancy rate of 99.9% and a weighted average lease expiry (WALE) of around nine years. This means investors have a very high level of rental income security over the next few years.

The post I’d buy 7,844 shares of this ASX stock to aim for $2,000 annual passive income appeared first on The Motley Fool Australia.

More reading

• 2 high yield ASX shares I’d buy after their results
• Is this the right time to invest in ASX defensive shares?
• Where I’d invest in ASX shares if the RBA increases the interest rate
• 3 top ASX dividend share buys for passive income in February
• Here’s how you could turn the stock market into a $1,000 monthly passive income machine

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.

Westpac Banking Corp (ASX: WBC) shares have had a solid start to the year.

The banking giant is up around 4% year to date and hit a record high last week. That kind of momentum tends to attract attention, but it can also raise questions about how much upside is left.

With bank earnings growth expected to remain modest and valuations stretched relative to history, I think investors looking for outperformance in 2026 may want to look elsewhere on the ASX 200.

One name that stands out to me is Breville Group Ltd (ASX: BRG).

A record half in a challenging backdrop

Breville delivered a record first-half result for FY 2026, with revenue climbing 10.1% to $1.1 billion. That marks a doubling of revenue over the past six years, which is no small achievement for a consumer products company.

Importantly, this growth came despite a difficult tariff backdrop in the US. Gross margins dipped to 35.4% due to US tariffs, but the company successfully mitigated much of the impact through manufacturing diversification, pricing actions, and distribution mix optimisation.

By December, 80% of US gross profit was generated from products manufactured outside of China. That shows management is not standing still in the face of geopolitical risk.

Coffee continues to power growth

One of the most attractive parts of the Breville story is coffee.

According to the result, coffee delivered strong double-digit revenue growth, supported by premium new product launches such as the Oracle Dual Boiler and Encore Esp Pro. In the Americas, coffee growth was again in double digits, with very strong demand for flagship machines like the Barista Express.

Coffee is not just a category for Breville. It is a global lifestyle trend. Premium at-home coffee has proven resilient, and Breville has positioned itself at the higher end of the market, where brand and performance matter more than price alone.

That premium positioning is important. It allows Breville to protect margins and maintain pricing power, even when broader consumer spending softens.

Geographic expansion and AI transformation

Beyond coffee, Breville’s growth story is increasingly global.

Direct markets such as China, Korea, Mexico, and the Middle East collectively grew over 50% in the half. While these markets are still relatively small, they represent meaningful long-term optionality.

Management is also leaning into an enterprise-wide AI transformation, embedding artificial intelligence across operations rather than treating it as a one-off pilot. That kind of structural investment could improve efficiency and sharpen decision-making over time.

Why this ASX 200 share could beat Westpac

Westpac is a solid business, but its earnings growth profile is likely to be incremental rather than explosive. With the share price at record highs and trading on a premium, expectations are elevated.

Breville, by contrast, is delivering double-digit revenue growth, expanding globally, investing in innovation, and riding a powerful coffee tailwind. It also remains conservatively leveraged, with net debt improving during the half.

For investors seeking growth rather than yield, I believe Breville has a chance of outperforming Westpac shares in 2026.

The post Here’s an ASX 200 share that I think could beat Westpac in 2026 appeared first on The Motley Fool Australia.

More reading

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

Income investors don’t have to pick individual shares to tap into Australia’s generous dividend culture.

A handful of ASX ETFs now bundle the market’s biggest dividend payers into a single trade. They offer instant diversification and regular income.

Three ASX ETFs stand out for investors chasing yield without abandoning long-term growth potential.

Let’s take a closer look.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Vanguard Australian Shares High Yield ETF has become a go-to option for dividend hunters. The ASX ETF targets Australian companies with above-average forecast yields, which naturally tilts it toward banks, miners and energy giants.

Heavyweights like Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), BHP Group Ltd (ASX: BHP) and Woodside Energy Group Ltd (ASX: WDS) tend to sit near the top of the portfolio.

That concentration explains why distributions can look very attractive in strong commodity or banking cycles. The yield is typically well above the broader S&P/ASX 200 Index (ASX: XJO) and often boosted by franking credits. At the current share price of $82.65, the yield is 9%.

Growth isn’t the main attraction, but over time capital returns have tracked the performance of Australia’s largest blue chips. This makes it a classic income-first ETF with some upside attached. In the past 12 months, VHY ETF has grown by 8% at the time of writing.

Global X S&P/ASX 200 High Dividend ETF (ASX: ZYAU)

This smaller ASX ETF takes a slightly different approach. Instead of reaching deep into the market for yield, it stays closer to the ASX 200 and selects companies with strong dividend characteristics.

Banks still dominate, but infrastructure stocks, telcos and established industrials also feature prominently. That tends to smooth volatility compared with more aggressive high-yield strategies. Just 1.3% of the fund is invested in companies in the US and Europe.

The dividend yield is usually lower than the pure high-yield ETFs – 5.6% at current price levels – but investors get broader exposure to the market and a better balance between income and growth. For those who want dividends without drifting too far from the benchmark, this ETF sits in the middle ground.

iShares S&P/ASX Dividend Opportunities ESG Screened ETF (ASX: IHD)

The iShares S&P/ASX Dividend Opportunities ESG Screened ETF adds a sustainability filter to the income equation. This $364 million ASX ETF focuses on a smaller group of higher-yielding Australian companies while excluding businesses that don’t meet ESG criteria.

The result is a portfolio that still leans toward banks and established dividend payers, but with different sector weights to traditional high-yield funds. The dividend yield is generally more modest, offering 4.9% at the time of writing. Yet distributions are still competitive, and long-term returns aim to combine steady income with moderate capital growth.

This option appeals to investors who want attractive dividends without chasing the highest-yield. This ASX ETF was the best performing of the three ASX ETFs over the past 12 months, gaining 15% in value.

Foolish Takeaway

Together, these 3 ASX ETFs show there’s more than one way to invest for income on the ASX.

Whether the priority is maximum yield, balance, or a blend of dividends and sustainability, dividend ASX ETFs can play a useful role in building passive income over time.

The post 3 ASX ETFs for investors chasing yield and growth appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. 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 and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.